Monday, November 30, 2009

Middle Management... the Hour Glass Affect

Many executives complain about the difficulty in getting their corporate messages through to customers. It is likely that they would find their customers saying the same thing about getting their needs through to the executives of the company. There have been many attempts, techniques, structures and so on... but the communication of needs and solutions remains the beguiling issue of business. This feedback loop can be the source of success... or failure.

I like to think that this conundrum as the key marketing issue in our business cultures... be the company in America, Europe, South America or Asia. It seems to me that the solution lies between the company and the customer... in fact, I prospect the solution is in the ranks of middle management. I suspect that middle management is a big two-way filter... absorbing information coming from the company and the customer, interpreting it, and then passing it on... rarely in its original form.

In this case, middle management is defined as any position in the chain between the customer and the executive. However, the focus is on the manager who directly manages employees that interface with customers. I would like to use an analogy to the human body... the Middle Manager being the heart; communications being the blood; and employees that work with customers are the nerves (eg: service technicians, sales people, direct marketers, product developers) . So, if you want to check the pulse of a company, check the middle managers. Make certain they are communicating efficiently.

When I am working in the field with Middle Managers (as an executive, used to spend a large amount of time observing them interfacing with employees that interface with customers) I try to stay in the background in order to observe the way they listen and coach their employees. Typically, executives want to get involved in the discussions... even lead them. Normally however, we don't have adequate time in the field, and if one wants to know what is happening, an executive needs to spend time observing.

When Middle Managers ask me what their job is, I normally answer in two ways... first their job description functions... direct, control, measure, respond, develop and so on. But then I focus them on the critical aspect of communications. Getting the message to the customer through field operations, and from the customer to the executive through the same operations. Since executives need both sides of the communications in some form, it remains the Middle Manager's most critical function to ensure that the messages in both directions arrive in their purist form.

I tried many analogies over the years to explain this strategy. In the end, I arrived at the mighty HOUR GLASS. Below is a partial example of what I am talking about... I need some graphics help to put all of the necessary headings and notes on the drawing...

Mission, Strategy, Executive
..Aqua ..
Customer, Sales and Service

The hour glass affect has the middle manager in the narrow area. The sand in the hour glass is information... going to and from the corporation and the customers. In many companies, the sand (information) is not flowing, or at best, flows slowly. This lack of flow is a problem in many departments that deal with customers... if it is not systemic, it could be a problem with the manager's performance... either way, it needs to be addressed.

Some companies are organized in a manner that does not encourage strong two-way communications. When this is recognized, it is usually a simple adjustment to structure, training or motivation.

The more serious problem is that many Middle Managers, no matter what part of the company they are in, don't have a primary function as a communicator... that's not what they are paid to do! But if information is what needs to flow, clearly they are in the position to achieve success. They need only open the narrowing of the Hour Glass ... this will let the flow occur more quickly, and unfiltered. They need stand in the narrow part of the glass and (figuratively speaking) put their arms out and consciously push... to widen the window.

There are strategies for Middle Managers to use to get better at this critical function... communications. First, they need to understand all of the functions for which they are responsible. They need to prioritize the functions with agreement of their supervisor. This way, when communication need to be improved, they will know which other functions are lower on the list, and need to be delegated or dropped.

Second, they need to organize their listening tools... the ones at hand for corporate communications... and those for customer communications. Adequate time and concentration needs to be planned for both. Phone, email, snail mail, video-link, and face-to-face are examples of how we consciously communicate. Each Middle Manager will have strengths and situations where one or the other will be best for their situations. There are also educational opportunities to improve these skills.

Next, they also need to ensure that they are hearing what is being messaged. They need a mechanism for storing and then passing on, unbiased, unfiltered, data based information. Listening skills are trainable, as is the ability to organize information for effective communication.

It is critical that the supervisors of middle managers also ensure that they have set appropriate communication goals. They too, need to observe the performance of the subordinates, and evaluate the performance through 'in-the-field' observation of managers working with their subordinates. When the flow of information is stifled, it is critical to manage the situation appropriately... based on targeting, job prioritizing and so on.

By emphasizing effective communications in both directions, it is possible to achieve dramatic improvements in performance of the various departments needing feedback loops to achieve success.



Friday, November 27, 2009

Remembering From Og Mandino

Over the years, I have been coming back to read The Greatest Salesman in the World Og Mandino. I have just started reading the scrolls again... it has been my best habit since I first read them in 1986. In 1991 I actually did the scrolls, as they were recommended by their fictional writer, reading them thrice daily, out loud in the evening; thirty days for each of ten, and lived them as best I could.

1990 and early '91had been my most difficult period up to then, for many reasons. I had left a job I loved because I didn't think I was being treated well. But I made a mistake with my choice of new work... and soon I left it. I had my first health scare... and it gave me a chance, no, an excuse to back away honorably from what I was doing. I got into some consulting that was very unsatisfying... and it was then that I remembered this little book with the weird name... The Greatest Salesman in the World. I bought it again, sat in my apartment near Denver where I was spending my weeks consulting, and started reading. Forty-five minutes later, I made up my mind that I would study the scrolls.

There is a good little story at the beginning that seems a little far fetched, even a little religious. At first it is hard to take the story seriously. But then as the scrolls un-ravel, they begin to make sense. I will go over them here on this blog, and what they meant to me... but in no way can I do justice to the real thing.

The most striking line in the first half of the book comes after the writer describes that "failure is man's inability to reach his goals in life, whatever they may be"... he goes on to say "my actions are ruled by appetite, passion, prejudice, greed, love, fear, environment, habit, and the worst of these tyrants is habit". I started to think about my own life, and began to check off most of these... and by that stage of my life, honestly, I was feeling like a failure.

He went on to say "therefore, if I must be a slave to habit, let me be a slave to good habits".

Now there is an interesting contrast... I had learned from Danny Cox, an accelerationist from Tustin, California that I had heard speak several times, that the only way to overcome a bad habit is to replace it with a good one... Danny was circa 1988 and the book was staged in the BC years... maybe there is something to this, I thought.

So, I started to work on me... especially my bad habits. Looking back, I did get to some of them... but I fear that I have fallen back into a few, and grew some that need to be dealt with... more on that later.

Monday, November 23, 2009

Networking... is there a Networking Queen

I recently attended a presentation by the Networking Queen... at least that's what she calls herself... Donna Messer. The event, that invited her to speak, was a networking function for people who have a couple of commonalities... they are mostly on LinkedIn.com; and they must have come into contact with Wayne Percy at Derhak Ireland Executive Search. Wayne and colleagues from Sharp Electronics, DDB Advertising, Molson, Maritz Research and ACH Foods sponsor a foundation called Jake's House. Together, they sponsor these networking functions... about 50 people paid $10 to attend this on... the $ went to Jake's House.

Anyway, the event came off well, there was a lot of energy among the participants. Although I didn't go to network, I left having met an investment counselor who works with TD Bank, who knew a lot about foundations (a rarity); a PhD candidate from Cleveland's Case Western University... she is working with neurons and considering a career in the biotech industry; an Aussie who has worked practically all over the world and does business restructuring; an executive search consultant who has a strategic purpose in promoting networking and the Jake's House Foundation; and a professional networker, come self-promoter, come teacher/presenter/coach. In short, without trying, I met five people who could help me in some way, and perhaps me... them.

The others at the meeting were having various levels of conversations... clearly they were collecting business cards... that seems to be the badge of success at networking events. But even the Networking Queen clearly communicated on that measure... if you can't add value, through the information you give and receive with the owner of the cards, the card is not a badge of honor... my words.

Actually, the speaker was doing many really cool things to demonstrate that she is very capable of the lingo that is necessary to gain information... open probe, narrow probe, closed probe, if/will statement, move on... she is a likable person, and had I stayed for her whole presentation, I likely would have learned more from her... unfortunately, I walked out!

About 10 minutes into her discussions with the audience, she started on a subject near and dear to my heart... negotiation and sales. Having run sales teams for thirty-five years, in every continent of the globe, I am confident of my knowledge in the areas of negotiation and sales. With absolutely no data, the speaker claimed that Americans were better negotiators than Canadians... no exceptions apparent!

This was such poppycock, and supported by no apparent data, I decided to quickly retrace the first ten minutes of her presentation in my memory bank... again, no data, anywhere. I decided that if she would make such a point of the Canadian/USA negotiation issue, supported with no data, and making a claim that I believe to be patently untrue... the rest was BS as well... so I walked out.

On the way out, I mentioned to Wayne Percy that Americans, Canadians, Europeans, Asians, Indians are all capable of being great negotiators and sales people... if they are trained! It has nothing to do with nationality... it has to do with training, and practice. If the Networking Queen wants to put out data on her techniques, and what results occur with the general population when they are using her techniques, I will gladly come back and listen to her... but for the moment, I believe her positions are Poppy Cock.


Wednesday, September 9, 2009

Investment Capital for Canadian Projects

In this post, and the next, I am documenting sources of capital... from angel through secondary and on... for folks that are interested in developing a company or product through stages. I personally would like to keep this resource available for projects that I am mulling. Hope it is helpful to folks on the blog... this and the North American Medical Captial resource guide that is on the next posting...

Canadian Capital Providers Guide

    Canadian Capital Providers Guide
    About This Guide
    Our Canadian Capital Providers Guide is a useful guide assisting Canadian companies or companies seeking to raise capital from Canadian investment institutions including – Venture Capital, Private Equity, Debt Financiers, PIPE Financiers, Angel Investors and others.
    Highlights of this report
    Over 400 Canadian Investment Institutions – Venture Capital, Private Equity, Corporate Advisory Firms
    Diversified Investment and Assistance – Start-Ups, Expansion Capital, PIPE, Infrastructure Financing
    Diversified Sectors – IT, Mining, Biotechnology, Cleantech
    International Investment Firms – Including investment firms outside Canada that also invest in Canadian businesses
    Contact Details of over 1,000 key people in these firms
    Available in PDF and also available in Excel format
    Top 5 Reasons why buyers have purchased this report
    1. Canadian technology / e-commerce companies seeking seed and expansion capital
    2. Canadian biotechnology / medical devices companies seeking investment capital for their R&D projects
    3. Canadian cleantech / renewable energy companies seeking to raise capital from venture capital firms
    4. Corporate advisors looking for investment sources from Canada
    5. Professionals looking for opportunities in the finance / venture capital industries in Canada
    Payment Methods
    Buy Now- Click on Buy now and complete your purchase with PayPal (Visa and Mastercard), you can then download the report immediately after the purchase.
    By Credit Card, No Registration Required - Click on the PayPal item and you can make payment without registration. We will e-mail you the report within 48 hours.
    Refund Policy:US$20.00 Administration Fee applies.
    Report Format: PDF Download + Excel Format. Report is available both in PDF and Excel format.
    Report Download Problems:Please send us an e-mail amy@researchwhitepaper.com if you are unable to download the report or if you have not received any e-mail from us after 48 hours.
    Buyers who have purchased this report have also purchased the following reports:
    Global CleanTech and Environmental Capital Providers Guide
    Global Mining and Resources Capital Providers Guide
    Global Biotechnology Capital Providers Guide

I have run into countless folks who had great ideas for products in the medical device market over the past twenty years. I have had a few sources of captial, but really not a "go-to-resource" that I could recommend. I came across this report on Linkedin recently... it would cost around $70.00 USD, but if an idea is really good, it is likly a great resource. Hope it is helpful...


http://researchwhitepaper.com/biotechnology-healthcare-capital-providers-guide-north-america-p-66.html

Biotechnology Healthcare Capital Providers Guide - North America

Biotechnology & Healthcare Capital Providers Guide – North America

About This Guide
This Capital Providers Guide provides over 400 investments firms and over 1,000 key contacts of institutions investing in Biotechnology, Life Science, E-Health, Medical Devices, Healthcare related industries. The companies include in this report are based in Canada, US and Brazil. Available both in PDF and Excel Format.

Highlights of this report

More than 400 investment institutions in Canada and US with over 1,000 contacts with names, titles, contact details
Investment firms investing in start-ups, acquisitions, mid-stage opportunities
Diversified segments – R&D, healthcare, biotechnology, health supplement, medical devices
Format: PDF and Excel are both available

Top 5 Reasons why buyers have purchased this Report

1. Start-Up companies looking for investment capital for their innovations or products
2. Companies looking for investment capital to commence commercialization
3. Medical devices, E-Health companies, Technology in the healthcare sectors looking for investments
4. Companies looking for capital for acquisitions and expansion capital.
5. Pharmaceutical companies, life-science companies looking for capital to expand their R&D phase.

Payment Methods

Buy Now- Click on buy now, and complete process using PayPal (Visa and Mastercard), you can download the report after the purchase.

Pay by Credit Card: You can also purchase this report using Credit Card through PayPal, no registration is required. This is a fast way to complete the purchase; we will e-mail you the report within 24 to 48 hours of the payment confirmation. Please click on the PayPal logo and take you to the payment page.

Refund Policy: US$20.00 Administration Fee applies
Report Format: PDF Download Automatically after the payment or by E-mail if using Pay By PayPal – No Registration Required option.
Report Download Problems: Please send us an e-mail if you are unable to download the report – we will always follow up by sending you the report in PDF and Excel. If you do not receive a report within 24 hours, please contact us immediately.

Buyers who have purchased this report have also purchased the following reports:

Global Mining and Resources Capital Providers Guide
Global CleanTech and Environmental Capital Providers Guide
Export Guide – Health Food in Asia and Middle East
Asia Pacific Biotechnology Capital Providers Guide


Monday, September 7, 2009

Expectations... of a selling team


Expectations...

I sometimes wonder about the dichotomy of expectations betwixt a hiring manager and a new sales person... the one hoping the right decision is being made... and the other, hoping the right decision is being made... but for different reasons, perhaps.

And I also wonder about how the evolution of the relationship will track... and whether looking in on it periodically, we can look back from that initial point-in-time... to the expectations that were at the initial hiring moment... and the ones that were established for both the sales manager and the sales person, going forward.

Within days of a hiring, it seems to me that everything that was in the past for both the sales manager, and especially the sales person is, exactly that... in the past! There is a new situation, and time needs to be taken at the outset to understand a) what is expected from the quality of the person being hired and from the quality of the manager and of the company doing the hiring; and b) what short, mid-term and long-term goals are expected to be achieved by the sales person; and c) what skills and support the manager and company will bring to the relationship.

It seems to me that too often these things are left to chance... too little time is spent in the process of hiring, and being hired. It occasionally dooms the future, and often limits the potential. Too little time is spent, as well, ensuring that the background of the new sales person is thoroughly understood so that the groundwork needed for excellence in selling with the new company is solid. This will then form the basis of the stages of training and goals.

The groundwork, or baseline knowledge and skills is a critical component. Often in the routine of the screening and interviews, the focus is on accomplishments, fit and so on. But once the hiring decision is made, it is time to get real... the sales person needs to open up and the sales manager thoroughly sort through the individual strengths and weaknesses of the new person. Here, the manager needs to be an expert at helping the new employee feel comfortable in showing where help is needed. Then the manager needs to establish the near, mid and long-term training and goals. Also, it is an opportunity for the manager to find strengths in the new person that can be quickly brought to the team s/he is managing.

I don't understand why more time is not invested at this hiring stage when no relationship walls have been built. It is a chance to establish working conditions and expectations that are real... and can lead to success.

Opening that window to look in on sales people and managers is not reserved only for the hiring moment. At any time there is an opportunity to take a look at where the two employees are in their progress toward goals. The second level manager should be encouraging the first level manager and all of the direct sales reports to keep the communications open. Have a list of the critical performance factors that, at a minimum, are necessary for success... there should also be a list of factors that if maximized, will allow unrivalled success for both the manager and the sales people who are reporting.

Too often in my experience, managers are not managing the performance factors of the sales people. They are caught up in the end results... taking care of the numbers. It is more effective to take care of the performance 'factors', and the numbers will take care of themselves.

Friday, January 30, 2009

Selling Processes and Golf Have a Lot in Common

There is a sense that selling, and sales management are more of an art than a science. This is the probable reason that most universities don't have thorough programs intended to train graduate students (or undergraduate for that matter) on the sales management process. It is also the likely reason that sales people who are promoted to sales management have not had any significant training. It is also a suspected reason that there are few if any text books on sales management... and those that exist on selling skills have little if any factual data backing them up.

But in fact there is a science to selling and sales management and when done properly, a selling team can launch and sustain products and services to the extent that they are maximized relative to their market potential. How often are market potentials achieved? When everything does come together and a great launch is achieved, how many companies know what they did right, who did it, and how do they repeat it?

Marketing and Sales can be a productive team when there is a thorough plan communicated to the sales management team. When the sales management team puts together an implementation plan for the sales team members, with a clear selling process; with appropriate monitoring tools; with continuous evaluation of performance; with process adjustments when necessary; and when there is a feed-back loop to marketing... and so on; things become a science.

I like to use sports analogies to explain some of the dynamics of selling. When done correctly by marketing and sales management, a plan can be beautifully put into place. It is a little like a golf swing... in part like this:

1st you have the set-up of the golfer ... the 60 degree angle of the back, the windowpane position of the head, the proper bend of the knees, the drop of the hands to the comfortable holding of the club and

2nd then you have the take back of the club, inside the 30 degree triangle from the ball, to the right shoulder, and to the left shoulder

3rd at the mid-point of the back-swing the club should still be inside the triangle

Well, it goes on and on... and we think of golf as a sport. But if you want to win in golf, it is probably more likely that you should look at it as a science. In the end, when all the individual swing parts are working properly and they are put together in series... you will get a 300 yard drive. Like when Tiger Woods does it right... the knees moving forward, allowing the hips to clear, allowing the thorax to unwind, adding velocity and power to the shoulders which move forward adding torque to the arms, wrists, hands, club...

This is what selling is about... when marketing sets things up right, when the managers ensure the process is well practiced, repeated routinely by the sales professionals... the torque build up is the same... and the WHACK is audible... how many sales teams can say that they put it together like Tiger Woods who hits over a million balls a season to perfect this swing... do any of us work that hard at the 'PROCESS of SELLING'?

Check and compare your selling to Tiger's swing at http://www.metacafe.com/watch/361150/the_perfect_golf_swing/ Just click on this address into your browser and comment back here when you compare...

Sunday, January 25, 2009

WHAT WOULD YOU DO...

The Quarter finished three days ago. As the VP & National Sales Manager of your company, you have just sent out an email congratulating your team of five District Sales Managers and the sales reps, for achieving its forecast and booking budget. It feels great to make it again, fifth quarter in a row.

The President and GM of the company has just left your office... his parting words were, "miss plan next quarter and you're fired!".

Your emotions are all crisscrossed... the revenue was on plan, and you had actually done a little better than your booking forecast. You have been with the company for a year and a half, you have never seen this anger from the President. He missed his profit target, is that your problem if you made your key targets. What would you do?


Believe it or not, this often happens in business. Usually it is a result of poorly communicated management targets, from the top down. But is that situation one that absolves the sales manager from the responsibility of making his company successful? Of course not! In effect, it is a little late when the boss threatens to fire you, to start doing things that should have been done, in the first place.

It is a critical function of the Sales Manager, at each level of a company... VP, District and territory sales rep to make his/her boss look good by helping the boss achieve the corporate goals. Not knowing the corporate goals, in effect, your boss' goals, is not a reasonable answer to the question " what should you do" ... no matter what, no matter where, no matter when, no matter who you are working for ... if you are a Sales Manager.

The situation above is demonstrative of sales management of the financial results of a sales team. Usually, even when things are going well, it is 'too little/too late', to wait for financial results to tell you things are broke.

So, starting today, what should you do? The first answer is to start managing the sales process, instead of the financial results. What does this mean? According to Peter Michie, at Performax Technologies, managing process consists initially, of identifying the activities of a sales manager or sales representative that lead directly to success. Once these activities are identified, managing the process means to ensure that the activities are communicated to and understood by the team members. Further, it means that the activities will be measured,
monitored, and evaluated routinely by the efficient sales manager.

S/he should establish process standards relative to the sales management or selling model that is chosen after the field assessment. When the standards are not met, the sales manager should take action to rectify the situation... prior to them negatively impacting financial results.

If financial results come in below expectations, and the parameters are being actively measured, it will be clear what " caused" a shortfall... eg: not enough leads were qualified in month one of the quarter; two sales people were not trained on a new product that sold well in all the other territories. Action to rectify the short fall, if not already underway, can be taken without analyzing financial (read " non-process" results.

So what can you do to avoid the shortfall, or at least be ahead of the curve on resolving it?

1) Clearly understand the expectation of the boss, and the targets of the company
2) Understand the expectations of the finance department relative to financial parameters that might be in your control
3)Closely 'observe' the most successful sales managers, understand what they are focusing on and what they measure
4) Closely 'observe' the top 20% of the sales reps to understand what they focus on and do to be successful
5) Establish standards for a series of processes that contribute to the success of the managers and sales people, and that will allow you to measure regularly who is doing the things that will contribute to their success
6) Communicate clearly what will be measured and why
7) Manage the process; train where necessary; analyze process performance; adjust/correct the processes and individuals who are missing standards
8) Inform individuals of process failures immediately, in writing; expect performance improvement in appropriate time
9) Identify additional or alternative processes as necessary, to assure the proper processes that contribute to success, keep up with the changing needs of the business
10) Ensure the underlying data is accessable, but utilize it only when necessary due to problems with results... either process or financial

The processes that are being reported routinely can be looked at as a DASHBOARD in a car... it doesn't make the car work, it just ensures the driver understands the operating conditions.

These management obligations, if not in place now, should be. It is part of the Sales Manager's and Sales Representative's kit.