Interpersonal Business

Vol. LXXV

Dear Manager,

With this issue I’d like to look at this topic and the necessary “equalizing balances” in terms of quality vs. quantity. I can’t think of two more equal, yet by nature more conflicting, aspects of business in today’s marketplace. With the advances of the world economy in full bloom, quality vs. quantity is clearly the dynamic that will determine our future, and the future for generations to come, if the U.S. is to retain its competitive edge.

A number of years ago my daughter left college after her junior year to move to the Silicon Valley and join the “dot.com rush.” While my feelings were mixed, I genuinely supported her decision. Katie is one who will always land on her feet, and I felt this would give her some of those life experiences we all need. Jeez, to be 20, making $60K a year, and with the title of Project Manager to boot … doesn’t get much better than that!

It was an amazing year, twelve-hour days, six or seven-day weeks of intensely focused time with members of what became “a new family.” Exhaustion, poor eating habits I’m sure, with only infrequent visits to the gym to ease some of the stress. I think we’d all agree: a bit too much quantity, too little quality. Just before her one year anniversary, it became obvious that yes, the price had become too high. Katie gave notice. She yearned for her former life and the more simple pleasures found in college. She’s moved back to Seattle to finish up her degree. She truly appreciates so much more what she’d nearly lost: the quality of life she had forsaken. As you may have predicted, weeks later her former company locked its doors.

Ah yes, how the “pendulum do swing” from one extreme to the other, both individually and organizationally, in these times of high drama for American Business. This evolution in the marketplace has certainly affected the gift, stationery, and home furnishing markets. The smoke and mirrors of the collectable industry is in the tank with the influence of the Internet and its “clean air and pricing policies.” The greeting card industry is just now admitting the impact of the virtual greeting card, and for every new and independent retailer opening in this category there are three that will close. Only those who innovate and adapt will survive.

Clearly this is a reflection of our society’s infatuation with the Sam’s Clubs, Targets and Costco’s of the world, making it very, very, very clear that “this is where America shops!” Quantity would seem to rule this contest, though in reality the independent retailer’s lack of innovation has resulted in no current growth. Those who are growing do so at the expense and market share of another. Similarly, in the absence of innovation, manufacturers have no choice but to follow their customers.

The president of a sales agency recently asked me how best to protect his interests in these difficult times. He felt the need to shore up his agency with additional new manufacturers, but realized he’d do so at the expense of available time and capacity for his current manufacturers. When you’re running scared in business, most any path of least resistance can seem incredibly appealing.

Capacity is a very real and ongoing concern for both manufacturers and sales agencies in this and other industries. Productivity has been enhanced, but in this industry many are still writing orders by hand (a slow and mundane process of decades past), instead of using hand held, automated order writing systems. I know of one agency that experienced a forty percent growth in sales once these devices were implemented.

The increase was neither the result of a better-trained sales force, nor of a hot or explosive marketplace. It was simply a reflection of increased capacity. My first response to this agency president would be to run, don’t walk, to the implementation of this form of automation for his agency. While it won’t solve the underlying problem, you can be assured that if or when the gas runs out of the engine, at least you’ll be holding the fuel pump!

My second piece of advice would be that quality over quantity has survived the test of time in American Business. Certainly the dumping of quantity from overseas and domestic markets has taken its toll, but in the end, quality always rules. Think of it in these terms; would you prefer to be known for your quality, or your ability to produce quantity? It would seem to be fairly clear. Even if the pendulum is currently swinging against you, it will swing back. With time, quality always comes back into favor.

In conversations with my sales associates, I would always suggest that while I could find them three additional manufacturers to represent, I couldn’t find them the additional four days each month to support the manufacturers’ rightful needs and expectations. While it was common for many sales agencies to represent thirty or more manufacturers, our agency represented fifteen.

It was clearly important to our agency that we play a significant and visible role with our manufacturers. I wanted to be more than just “another rep agency” in these primary relationships. In good times, I wanted our agency to be acknowledged as a potential leader; in difficult times I wanted our agency to be in a position to receive the benefit of the doubt. Strong and mutually beneficial relationships, ones founded on quality, are becoming less common. I wanted to stand out among the masses, making it that much more difficult to form a negative conclusion relating to our organization.

I also found this policy to be revealing as it related to our internal sales trends. Invariably, even with our limited number of manufacturers, the bottom three consistently represented less than three percent of our total sales! Can you imagine how these ratios would translate to an agency with thirty or more manufacturers? What potential for quality exists for the manufacturers at the bottom of that heap?

One of the greatest challenges for agency presidents, their staff, and sales people, is the sheer amount of administration, follow up and maintenance required to stay on top of so many manufacturers. This was a daunting task for our office and each of its staff members. Forget quality for a moment. How much more capacity, let alone stamina, can I provide a dozen clients compared to thirty? Clearly, this single commitment established a sense of quality, clear lines of communication, and years of security for our organization, in the good times and in the bad.

We as managers must remain vigilant in these highly productive times to not overextend our staff’s capacity. We must maintain the standards of quality consistent with our prior success. In times when quantity vs. quality is in debate, this may be your greatest opportunity to throw all of your resources behind your own position of strength in the marketplace. You will not just be noticed; you will stand head and shoulders above your competitor.

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2011. 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. LXII

Dear Manager,

Have you ever known of anyone who could even come close to always being right? Are you kidding? No way on God’s green earth! I believe we all realize these axioms are based on a generalized philosophy of one’s approach to doing business. Problems only arise when we accept these values in literal form rather than general form. You guessed it! There’s a group of individuals who currently expect us to accept this adage in “very literal terms.” Yes, it is a majority of our current and future customers.

I have no problem accepting these ideals in their intended context and frame of reference. Nordstrom, as well as many others, have outperformed their peers for years by bringing a much greater sense of focus and priority to meeting the needs of their customers.

In the legal system, there is a standard litmus test that all contracts must pass to be considered valid. The standard that has withstood centuries of litigation is: for a contract to be valid, benefit to both parties must be established. A contract that only benefits one party will never hold up in a court of law. If you look at it from a purely legal perspective, just how right are all of these customers?

The customer is, in fact, always right, with the following exceptions: in the case of being misinformed or being misguided. Misinformed or misguided? Impossible your might say!?!

THE MISINFORMED

These are the customers with whom we hold the greatest opportunity to evoke positive changes. It is certainly not their fault that they are, or choose to be, so poorly informed. Look upon it as your civic duty and a public service to show them the light. Let’s look at the buyer’s perspective.

In most cases, from their perspective, the defining element in any sale or contract seems most often to be focused on price. Price is a very tangible and precise medium in the negotiation process. Your customers will hound you about price at the beginning, middle, and end of many of your presentations. Within reason, we must certainly be competitive in this arena. I also believe that for the highly skilled professional, pricing issues are very rarely the defining element. This is where we must become the teacher, to assist the misinformed.

If price were the only issue, half of America’s economy will not, could not, would not, exist. In the absence of price considerations, quality, service, performance, confidence and personal relationships guide the vast majority of all business relationships. All too often, we allow our customers to emphasize and overstate pricing issues, as compared to true value issues associated with the balance of “the contract.”

If a product costs $1, what is its actual cost if, in fact, it is never received? In this scenario, would free provide additional value? Creating “added value” seems to be the buzzword of the new century. I’m not sure that anything has been added, such as octane to gasoline, but I do suggest that we need to be able to define and establish true value to our customers. Yes, our customers need to be better informed. We are in a position to do so, and the only ones willing to do it.

If price is a much more precise and tangible factor, how do we better define these secondary features and benefits, bringing similar clarity and definition? Ahhhh, this is where selling becomes pure. This is also what will define and protect salespeople in the new economy.

By nature of the buying and selling relationship, we must do a better job of bringing significant definition to the role we play, its value, and its priority.

If I had to define a single factor, one that translates to more sales in American business, it would be – without question – relationships. Fortunately, loyalty based solely on performance and established mutual benefit will rule in the buying and selling of commerce in the United States. Relationships suggest an understanding of the mutual value relating to service, confidence, performance, and in many cases, quality as well.

The problem comes in our ability to quantify this value. I believe many of us side step this most important of opportunities. Few of us wish to self promote, particularly to individuals with whom we enjoy a strong working relationship. It may become easier to allow them to focus on price, and hope that these “other considerations” will assist in a fortuitous outcome and conclusion. Come on. Are you truly willing to bank your fortunes on the potentially misinformed? If so, it may be time to get out of sales.

It is now time to bring definition and specifics to your value as a resource, and the ultimate sale and contract. What are your consistent service, confident hand, and past performance worth? A heck of a lot more than price! Incorporate these equations into each and every one of your sales presentations. With practice, this can be done effectively, not in a self-serving way, but in an informational way for those who may be misinformed.

THE MISGUIDED

In literal form, one would also have to conclude that all business is good business. What happens when the Nordstrom customer purchases a gown the day of a prom, only to return it the next day (only slightly used) due to “its obvious and clearly apparent poor fit?” Even for the standards of excellence that Nordstrom has established, this has got to be a challenge. Yes, there is such a thing as bad business.

Once again, our customers often rely too heavily on their regal throne of righteousness, never to acknowledge that a one-sided contract has been established. Conversely, we as sales people are often so hungry for the sale that we are willing to attach a dollar bill from our own wallet with every delivery. Unfortunately, I believe there are not enough of us who will stand up and define a relationship, and its understood contract, invalid. We have all created valid relationships that have lost their foundation of mutual benefit over time. These relationships are often derailed by the misguided. It is our responsibility to illuminate their path, or terminate the relationship, turning off the lights as we shut the door.

We must first define who the misguided parties are. More often than not they are hiding behind significant volume streams, years of commitment, and prior profitability. Others never fulfilled their commitments to us, or overstated their ability to provide value. Still others were simply a poor business decision on our part from the outset.

In the above instances, a conversation and conclusion relating to mutual profitability can only create benefit. Either they become valuable, or the losses have been eliminated. First, define your objective. If the objective is to proceed, then create a success formula that you feel you can both live with. At all costs, protect future potential with this client. If necessary, suggest alternative resources for your products. In your presentation, be sure to explain that you would certainly never expect them to continue an unprofitable relationship. They certainly must share this perspective!?!

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2010. 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. XXXVIII

Dear Manager,

Management styles can take on many faces. What is the most effective approach for you? Certainly this can only be determined by each of us as individuals. Effective management has a foundation of strong values and consistency. We all build a platform, a basis from where to proceed. Having worked with many managers, there are some obvious qualities and axioms we can all sink our teeth into. As a manager, our single greatest hazard is to be considered irrelevant.

GIVE ME HONESTY, RESPECT AND DISCIPLINE

With these three qualities in their purest form, it doesn’t really matter what approach we take. Always a two-way street, these single qualities in consistent form will ensure success to all players, and in all areas of endeavor.

In a meeting with a new manufacturer once, I enjoyed the opportunity to see a truly nice guy win. This absolute gentleman was not only at great ease with himself, but with his objective for the day. With simplicity and significant class, he proceeded to endear himself to everyone in the room. By the end of the day, there wasn’t a single person in the room who didn’t wish he was their brother.

In his very personal way, he had captured the imagination, enthusiasm, and motivation of our group in a way I had rarely seen from an “outsider” in the past. His genuine style and clear expectations set the stage, and everyone finished the day with a feeling of benefit and a sense of high anticipation. This guy was a pro! He provided them with respect, honesty and the motivation to create the discipline. I have certainly seen the contrast, as have many of you!

BIRDS OF A FEATHER

Individuals with a false sense of power and ego will look to surround themselves with a similar breed. While this may be an effective and fulfilling approach for some, I have found it to be rarely effective for a mature organization. In many instances, the individuals being managed will clearly have greater knowledge and a much higher level of experience and presence than the individual being asked to manage them. Confidence may be at conflict for managers who find themselves in this scenario. By contrast, what greater opportunity for a manager than to work with individuals who are more experienced and knowledgeable than themselves?!

I have also seen management relationships fail due to the lack of professional space. Individuals who fail to understand this critical balance are headed down a road of disappointment. We are not here to be everyone’s best friend. Professional space will promote the respect that is essential to any working relationship. Familiarity breeds misunderstanding and an opportunity to take unfair advantage. In the long term, it can create a perceived sense of favor available only to a select few.

SO, LET’S GET THIS SHOW ON THE ROAD

We’ve all seen new managers who simply try too hard. Rather than listening and responding with their influence, these individuals find themselves selling their positions from the outset. All new relationships require time to develop, allowing all parties to grow into a level of comfort.

It’s only human nature for a small amount of suspicion to exist in the beginning. Understand this reality by allowing the relationship to develop and evolve on its own terms. Encourage the relationship to come to you. Allowing relationships to grow slowly will provide greater respect, understanding and confidence in one’s individual needs. Begin by looking at this development in terms of steps:

THE FIRST STEP begins with a relatively low profile. Nothing can be learned through your own voice. Asking questions and listening should represent 80% of your initial involvement. If you are looking to get up to speed, a sincere willingness to understand will be your greatest ally, and perceived with a high degree of respect by those seeking to assist in your transition. Respect and power are always earned over time and by example, they can never be effectively dictated.

Observation will be your second greatest tool. Ask to observe and participate in meetings or sales presentations. Once again, there should be no need to prove or justify your relevance at this time. This can be very difficult, and you must bite your tongue on occasion. You will see obvious opportunities that need to be addressed, but now is not the time – file them for future reference.

Proceed with the belief that there will be another, more appropriate opportunity. You will be surprised at how many of your concerns will simply evaporate for lack of future relevance. The ability to observe demands that we hold our initial comments to ourselves. The perception of being critical will only close you out.

In the absence of imminent collapse, show confidence in the status quo and stay completely out of the day-to-day decisions for the organization. How can you possibly establish policy in the very early stages? A lack of a global understanding of the organization puts you at a very decided disadvantage. I have seen individuals make this fatal mistake; they have consistently fallen flat on their face. Seem so obvious, and yet they will consistently fail again, now for the second time!

THE SECOND STEP begins with a healthy dose of encouragement. With your many observations in hand, you are now in a position to align yourself with those individuals in whom you have the greatest confidence. Build a support team to assist in finding a greater depth of knowledge and direction for the organization. Ask more probing questions. Now is your opportunity to ask if your earlier thoughts had been tried. Ask for assistance in your efforts to come up to speed. When asked, individuals will line up to support you.

Begin to provide suggestions from your own frame of reference. Explain real-life scenarios of similar circumstances from your past. This approach suggests a greater understanding of others’ dynamics, and is much less threatening. Similar to my previous example, always stay within your own style and personality.

Trying to be someone you are not will be apparent to those you are trying to manage. Remember, validation comes from within, not from those around you. This is the greatest risk in trying to be a personality type that lacks authenticity. It should be obvious, yet the most difficult things to learn are often the least complicated.

THE THIRD AND FINAL STEP is the reality that the honeymoon is over. After a period of weeks, those around you will feel the level of comfort and confidence you could have only wished for in the beginning. You will be looked to for direction; it’s time to prove yourself. With the knowledge, observations and experience you have secured, it’s time to move forward.

You are now in a position to take a very pro-active role in the direction of those around you. Never fail to ask direct questions prior to coming to a conclusion. Continue to seek the counsel and draw upon the experiences of those who have proven their value. A know-it-all only shows lack of respect for those around them.

Remember, a polished and refreshing style always commands attention. As suggested earlier in this article, good guys can, and do, finish first. There are individuals for whom we all enjoy rising to the occasion, fully supportive of their efforts. These are invariably the individuals who rise to the occasion in meeting and understanding our needs as well.

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2009. 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. XXXII

Dear Managers,

I have consistently promoted the value of management having first-hand experience in the realities of those they manage. Few of us simply woke up one morning to management; we all took those first difficult steps. While the transition is difficult for many of us, we can at least fall back on the values that provided us with confidence in our previous endeavors. In my case, the need to expand sales efforts was obvious, regardless of my personal abilities to do so. In many instances, business can thrust very good sales people into a management role, whether they are prepared for management or not. Having field experience does not automatically guarantee success in management!

Eventually, I realized that I could provide a great asset to my organization by drawing on my past and remembering how to think like a sales representative. The closer I could stay to that thought process and set of values, the stronger my organization would become.

PRACTICAL EXPERIENCE

I have known and worked with several outstanding sales managers who had little or no actual field sales experience. I have known many more, unfortunately, who failed due to their profound inability to relate. I guess it comes down to ones priority in getting on the inside track. Too many managers are distracted by their own course and fail to negotiate the turns. These individuals expect to play the game on their turf and under their rules. Many will fail, never realizing their potential. Those who find a measure of success, yet begin to believe their own press, will never address their shortcomings. From my experience, and without question, this single dynamic consistently robs many managers and their companies of success.

Unfortunately, some managers with field experience choose to forget their lessons and become what they perceive the role of a manager should be. In conversations, it may seem as if these individuals have now arrived at a higher level. With title in hand, a case of amnesia relating to their earlier times sets in. This attitude reflects the very worst in management.

As suggested, I have known managers with no field experience who have, through their own initiative, developed an amazing sense of awareness relating to sales. Fundamentally, these individuals simply want to understand and develop their success on a level playing field with those who can insure their success and whom they consider their peers. These individuals gain high marks for their obvious willingness to learn, experience, and share their desire to develop this understanding.

THINKING LIKE A MANAGER

Having emphasized the value to management in thinking like a rep, I equally believe that the current business climate now require a sales associate to think like a manager! The dynamics of a field sales person are those of independent, individually focused responsibilities. True, their vision is directed towards success. However, given the daily focus on their individual realities, it becomes tunnel vision directed at only one aspect of success: theirs.

In recent years, I have made it a priority in my hiring process to find sales people who also think like a manager. These are the individuals who have stepped out of the singular and often self sustaining perspective of the sales representative, and realized their greatest asset to themselves and their organizations is to assume a management role relating to their sales region.

Those “managing sales” understand and accept a personal responsibility for meeting the growth potential for their sales region. They are the first to know, and are proactive in their willingness to adjust to, the current and future needs of their sales region. They understand their position of strength comes prior to their manager’s inevitable involvement.

There can be huge rewards for individuals who accept this greater ownership. These individuals relate more closely with their managing counterparts. They speak the same language and have a greater understanding of each others needs; conversations reflect on mutual interests relating to “good business decisions,” for their customers as well as their manufacturer. These individuals find a high degree of support from their “fellow managers” relating to their needs and, in more instances than their peers, enjoy the luxury of the benefit of the doubt.

A NEW BEGINNING

The old school suggested a “hands on” approach to management. If this is still the case in your organization, you are living in the past. Let’s be honest, most of the rules and parameters of past sales policies were established to meet the needs, yet minimize the risk, of the lowest common denominator. Do these out-dated sales policies still exist? Who are they currently intended to protect you from? Where’s the flex to make the deal?!

In the past ten years I have seen a remarkable improvement in the standards being established by the sales professional. With a much greater involvement of women in the professional field, the standards set by the highest common denominator of this combined work force far exceeds the pool of talent available just a few years ago. I genuinely believe we need to ask more, and these individuals want more to be asked of them. We can do so by first expecting them to manage their territories and then by giving them the opportunity to do so.

GIVE ME YOUR TOP FIVE

Allow me to describe your top five sales associates:

• Totally self motivated; you never give there sense of determination a second thought

• Creative and almost startling in their approach to a sales challenge

• Always thinking in terms of second and third generation relating to their long term objectives, while maintaining high visibility

• As professionals, they are always looking for, and intrigued by, finding a more productive way

• They enjoy a much stronger relationship with the decision makers in the field and with their manufacturer(s)

• Finally, these individuals challenge you as a manager, by a multiple of five, as compared to your other associates

Are these not the qualities of a great manager, in addition to those of a great sales person? Should we not be asking more of those who have not yet seen the value in thinking like a manager? Are we going to maintain standards that meet the needs of the bottom five at the risk of inhibiting our best?

RISING TO THE TOP

The first step is to develop an awareness of the obvious disadvantage many sales associates are willing to accept. Why is it that so few get all the advantages? A manager of sales first challenges all the policies, then seizes every opportunity to work the system. From the outset, these individuals understand how to finesse a policy to their advantage within the rules (as best as possible). They have a consistent dialogue and ask all the right questions.

Managers reward creativity and respond to ingenuity, especially in an individual who thinks and plans like they do! While these individuals challenge management at a much higher level, they can’t help but be admired and respected for their efforts. In most instances, these individuals get exactly what they want. Those who never ask simply never enjoy the advantage. Who currently gets the advantage? Less than 20% of the whole! It must be time to spread the wealth.

Who are the most successful managers? Those who can relate with and think like a sales person.

Who are the most successful sales people? Those who can relate with and think like a manager.

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2009. 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