PURE COOKE

Looking for examples of good leadership in a business world filled with poor ones?  Take another look at Jamie Dimon, JP Morgan Chase.  This is not my first blog extolling his leadership style.  As I look at the financial sector and study banks that are in ruins, I am reminded that somehow JP Morgan Chase avoided most of the worst of the mess.  Further, Chase has come to the rescue twice to bailout companies that were sinking fast–Bear Stearns and Washington Mutual.  And, look at what has happened to Citibank in the years since Dimon’s departure.  Bottom line, Jamie Dimon is a tough love, direct leader who gets things done.

What still resonates from listening to Jamie Dimon last March as he talked about the economy and JP Morgan Chase, was his passion that decisions and strategies are ‘not measured by share price.’  His commitment is that “everyday we have to find a way to be a better company.  Do that and the share price will take care of itself.”  In the old economy, the economy that is in the midst of crumbling before us, share price drove everything.  In the new economy, sustainable business is about building a better company everyday, and in every way.  The days of shortsighted, price per share obsessive behaviors are over.  The fact that Chase survived the recent financial meltdown, is a testament that stock price beholden leadership just does not work.   Jamie Dimon may be a bit controversial, outspoken, and aggressive; but, he has demonstrated a passion for doing things the right way for the good of the entire organization–sustainable for the long haul.

The prompt for this commentary was triggered by an article in this weekend’s Wall Street Journal discussing winners and losers in this past business year.  Jamie Dimon was listed as winner.  I couldn’t agree more.

For many 2008 was and is a year that we would like to forget.  While I have noticed that this year’s holiday season was, in many ways, more subdued, I am certain there is much anxious celebration with regard to 2009.  There is nothing magical about turning the page on the calendar from one month to another.  Yet, there is this sense that putting a new calendar on the wall represent a fresh,clean starting point.  This is the time where many establish their goals for the year, vow to make changes, commit to better health habits, etc.  The traditional new year resolution has become a habit for many to make and a challenge for most to keep.

As we look ahead to 2009, we are coming out of one of the more tumultuous economic periods on memory.  The good news is that there are a lot of things to look forward to.  The bumpy, scary and uncertain economy is not yet behind us.  But, I do believe, that 2009 is the year where we will begin to see the end of it.  Change is already underway.  The transition to new leadership in Washington, DC in January is symbolic of the changes that are underway.  Calendar year 2008 represented a very painful course correction for the global economy.  Over the past 20 years, businesses fell into careless and short-sighted habits.  Their recklessness has been flushed out and the adjustments to these activities will be seen in 2009.  There still exists the ripple effect associated with this storm.  However, I am confident that the current of change is already taking place.

I look forward to 2009.  Successful businesses are going to be smarter.  They are going to be more nimble.  They are going to be leaner.  They are also going to be more attentive.  If you are simply looking to make it through 2009, I am concerned for you.  Survival is not a tactic.  To be successful in 2009, your business is going to have get in shape, make some big changes, have a clear direction, and know where it is going.  Most importantly, you have to know what makes your business truly great and you have to focus all your efforts on leveraging that value into 2009.  Along the way, break the bad habits, stop doing things the same way you have done them, and embrace the changes that will make your business strong.  Changes have already started to take shape.  You need to make certain that you are implementing change in your businesses processes, too.   Remember, economic changes are merely survival tactics.   Your most impactful and successful moves will be the ones that are cultural, leadership, and strategically oriented.

Is 2009 the beginning of the end for your business?  Or, is 2009 the beginning of the end of a very bad economic cycle?  What 2009 becomes, is entirely up to you.  I wish all of you a Happy and Prosperous New Year!

Whenever Congress gets busy, we should be nervous. Every time this organization, traditionally mired in self-serving, partisan rhetoric, decides they need to take action, all of America should take pause. Right now, we do not need a bunch of leaders who are self-serving, reactive, and shortsighted bureaucrats.  Read the full article…

I recently had the opportunity to engage in another client discussion about the notion of “low cost” or “low price” buying behaviors as being a growth obstacle.  This is one of the biggest misconceptions as it relates to successfully growing a business.  It is not about low price.  It is about a failure to define value. If you think your growth efforts are being thwarted by low cost buyers, it is because you have not succeeded in connecting with the real buying behaviors and needs of your prospects.  Nothing more, nothing less.

For those who think that low cost is an obstacle, here is the process issue that you are missing.  You meet with the client.  You have a high level discussion about what they want and need.  Your next step is to begin “telling” them everything they need to “know” and “do” to accomplish what they “need.”  You impress them with your knowledge, expertise, and capabilities as it relates to their needs to the point that they ask for a proposal or a quote.  Looks like they are interested in buying from you, right?  Not quite.  Unfortunately, you did not talk to them in depth enough about their drivers, their decision making process, or their “budget.”   Instead, you started talking about their vision and their big picture goals and how you can help them get there.  Next, you crank out a proposal.  Then, reality hits and they decide they cannot afford what they are dreaming about, need more time, need to get someone else involved, etc.  Eventually they tell you they cannot afford what you are offering.  “Low cost?” Not really.

This process is very analogous to buying a car: I want a 4-door sedan that goes 150 mph and 0-60 in 4 seconds.  My auto expert has just what I need.  Unfortunately, it costs $65,000.  I can only afford a $35,000 car.  They never asked my budget and I didn’t know or really realize how much my “car” was going to cost.  Once reality hits, I decide that I cannot afford the car I thought I needed.  In the meantime, another auto expert has an extensive discussion with me about budget, criteria, process and priorities.  And, he proposes a $35,000 car that does not do 150 mph or go 0-60 in 4 seconds.  But, it is quite fast and very sporty.  It is not exactly what I originally “dreamed” about; but, it does reflect a great fit with all my defined criteria, including budget.  Was my purchase about “low cost.”  To the auto expert that did not get the deal, yes.  In reality, no.  It was about a total fit with all my needs.

This is a traditional issue that exists in all industries—we are too quick to jump to the solution once we think we know what someone wants or needs.  It leads to a huge misconception about “low cost.”  When we do not ascertain value, prioritize needs, determine or discover the budget, define their buying criteria, and understand their decision making process, there will be a disconnect.  That disconnect is later justified by the business development person as the result of “low price” behaviors by the prospect.  When it actually is the result of insufficient listening, learning, and engagement on the business development person’s part at the beginning of the discussion.  Most of this frustration can be avoided if we simply stopped treating proposals as though they are part of the sales process.  They aren’t.  If you had to completely negotiate a final business agreement with a prospect before providing a proposal, your conversation would be entirely different.  In that process, you would discover that cost is a very real criteria.  But, it will not be the sole reason why I would, or would not, do business with you.  It would be simply one of the many determinators as to how they do business with you.   To eliminate the misplaced perceptions around “low cost”, spend more time in the discovery and consultative activities and avoid the “get to the quote” mentality.  You will find that by engaging in this process effectively, your customers will have a budget, though sometimes a limited one, for your product offering.

The 12 Details For Growth — Building a Revenue Generating Machine

Making your list? Checking it twice? Trying to figure out of ’09 is going to be naughty or nice?

In the spirit of the Holidays, here are the 12 Details for Growth that will help you build a better, stronger revenue generating machine.

1. Develop a strong management team: A great manager is a coach, a teacher, a “mom”, facilitator and trainer all in one. Success starts with great managers who are totally engaged, physically and mentally, in the overall growth process.

2. Clearly define your business’ value proposition: Not knowing what makes your business great, limits its ability to be great. Know what your value proposition is and teach your team to understand and embrace that value.

3. Establish a solutions based culture: Clearly establish the mindset that you are looking to find ways to solve customer challenges, not in finding people to blame.

4. Create an empowering environment: Empower everyone in the organization to make responsive decisions that support your customers.

5. Define the rules of engagement: Clearly define the respective accountabilities for every position on the team with the underlying understanding that the entire team is there to delight the customer.

6. Foster a nurturing organization: Highly successful organizations are team oriented. And, great teams support each other. Encouraging everyone to coach and support each other.

7. Provide everyone a playbook: Train your entire team to the product offering and value proposition so everyone knows and speaks the same language.

8. Deploy an organization wide incentive model: Everyone on your team must know that they will be generously rewarded for playing their part in the success of the team. Reward them well for their success.

9. Emphasize the team, but acknowledge individual achievement: Talking up the success of individuals and teams helps emphasize the importance of doing things right and demonstrates the positive outcomes of those behaviors.

10. Mandate a team centric code of conduct: Never allow or engage in criticisms of anyone, either in public or behind their back. If tough love coaching is needed, then do it face-to-face and in private.

11. Know what your customer wants and needs and why: Have a laser focus on what your customer requirements are and how your product offering addresses those requirements.

12. Measure everything in terms of results: Only results are results. Never mistake activity for results. Productive activity is simply the progressive road to results. Ultimately, the only thing that matters is results.

Happy Holidays!! Have a great 2009!

As the Executive Leadership of the Big 3 Automakers, otherwise known as Ford, GM and Chrysler, prance into Washington, DC to a carefully choreographed marketing tune, the sound becomes eerily familiar as if one has heard this song before.  With much thanks to the power of the Internet, it becomes all too apparent that Ford, for one, has sung this song a few times before.  The words and the tune are definitely the same, only the audience is different. Under such clever titles as "The Ford Revitalization Plan 2002" and "Ford's 2006 Way Forward" and finally, the now infamous hit of 2008, "I am sorry I flew in on my jet, how do you like my greenmobile?", it is obvious that when it comes to rhetoric, The Big 3 has it mastered.  When it comes to real action, real change, and real results, they have flunked the class.

Reading the today's prepared statements for Congress, Ford CEO Alan Mulally clearly is bringing nothing new to the strategic planning process.  In fact, it looks as though he simply borrowed text from former CEO Bill Ford in his last two Ford initiatives.  Here are the latest versions of Ford's initiatives.  You tell me--what's new?

1. "Matching production to meet demand" (2008) vs. "realign capacity with market conditions" (2002) or, "align its capacity with expected demand" (2006).  After 6 years, you still have not figured out what that means?

2. "Deliver world class products for every market" (2008) vs. "developing products that please customers and benefit society" (2002) or, "differentiate by design and safety innovation and technology like hybrids" (2006).  What are you waiting for?  Get busy.

3. "Exceeding our customers' expectations" vs. "executing the fundamentals of our business to build great products" (2002) or, "customer focused and innovative" (2006).  Well, if you don't have a plan, at least there are really cool marketing phrases.

4. "Our automobile business to be profitable by 2011" (2008) vs. "It will be difficult, and in some cases, painful to turn things around.  Butthings will turn around." (2002) or, "restore profitability...in North America no later than 2008." (2006)  Oops.  Looks like you missed this one, again.  And, you want me to 'loan' you money?

There are a lot more.  But, after a while it becomes nauseating.  The consistency of the message speaks volumes and the inability to really generate change is indicting.  Ford, and the others in the Big 3 club, are awesome with clever catch phrases, really slick press releases, glitchy photo shots in cool cars, etc.  But, when it comes to really knowing how to innovate, change, and turnaround a stodgy, risk adverse, entitlement based culture--they cannot get the job done.  Send them home with nothing other than the admonishment of all of the other businesses who are really working hard at innovation, change, and survival without their hands out.

Let's get right to the point: Sales is a very generic term with a very bad reputation.

Everyone needs sales. Today, every business is obsessed with sales. And, business owners are pushing their people to go get more sales. That is just what we need today--more pushy salespeople!  Think about it.  Isn't that what people hate, detest, and despise about salespeople?  Why are businesses feeding the monster that they dislike the most?

Very simple.  Most businesses really do not understand what effective sales really is.  They send their people off to sales school to be trained to be better sales professionals.  After all, a good training program is all anyone needs to learn how to sell, right?  Sales results are measured by revenue--isn't that really the only yardstick?  The prevailing logic is that a great sales person is measured solely by the number of deals closed and the size of the sales dollars generated. Then, the best sales people get promoted to manager.  That manager becomes the big 'boss' of the sales team and directs them to perform just like the manager did when they were in the field.  More deals and more dollars.  Keep feeding the ugly beast.  If only Herb Tarlek were here to see his dream come true.  The result, an endless and very ugly cycle of desperate, aggressive, pushy and annoying salespeople.

You want to know what sales is?  Sales is the ability to deliver a product or a service to a business or individual that solves a problem or fulfills a need.  Look at this definition closely, very closely.  There is nothing in here that describes a pushy, buy something from me now, mindset.  Want more sales? Start focusing on learning about, understanding, comprehending, and solving your potential clients' business issues.   Business people today are NOT looking to meet more salespeople.  They do not have time for them.  They ARE looking to find resources that are committed to helping them solve their business challenges.  Stop sending salespeople to sales school for the typical sales training methodology focused on closing deals.  Find a professional that understands how to build relationships, engage in a consultative learning conversation that solves problems, and has the ability to coach and teach the sales team to stop "selling" and start "solving."

PetSmart's success model--The right people in the right culture with emphasis on the customer.  In yesterday's blog I discussed how PetSmart Chairman and CEO, Phil Francis, viewed the impact his employees had on the PetSmart business.  Motivated and talented people are critical to a sustainable business model.  Today, I want to focus on how Mr. Francis emphasized the role that culture plays in retaining their employees and their culture.

In his talk last week at the Phoenix's Enterprise Network monthly breakfast, Mr. Francis proudly opened with a story of how an employee of two weeks working at a store in the middle of Kansas was able to talk about PetSmarts corporate commitment--D.O.G.  He was pleased to experience the energy, knowledge, and commitment that this new employee had in relation to the foundational company strategy.  That this employee was able to embrace it and understand it reflects the emphasis placed on the strategy and vision throughout the organization.

But, there is more to this message.  That the customer is truly the center of this core strategy demonstrates a corporate culture that truly values the customer.  The three components of D.O.G are: Delight the customer, Operational Excellence, and Grow Services.  So, while employees new and experienced know, understand, and live their company commitment, it is even better that this vision reflects a corporate culture that nurtures customer centric and service oriented behaviors.  That PetSmart is succeeding in growing their business is no surprise.  After all, they are doing all the right things through their people, their culture, and their customer focused strategies.  As business owners, we can all learn a lesson from PetSmart.

Looking for a great executive leadership role model? Check out Petsmart.  Spend some time listening to Phil Francis, PetSmart Chairman and CEO and you will get a great understanding of how he values his most important assets--people, customers, and their pets.  Last week at the Phoenix's Enterprise Network monthly breakfast, Mr. Francis discussed his views on attracting and retaining the best employees in today's competitive market.  The next two blogs are going to focus on a couple of his valued key points.

When it comes to employees and customers, there are three things that an employer, owner or manager must recognize as critical to everything:

1. Provide your people a better quality of life.   Your team knows their work environment affects their health and well-being.  People do not leave an employer because they want more money they stay with their current employer when they have agreat work environment, enjoy what they are doing and, like where they are doing it.  If you want to keep your best employees, give them an environment that gives them that quality of life experience.

2. Develop your people. All your employees are motivated to be successful.  They are looking for that opportunity to succeed.  As a company, you need to continually strive to develop your people to the point where they can take leadership roles in the company.  People are looking for opportunities to individual success and they will go the companies that are committed to that.

3. It is your people that bring in the customers. Using the example of the local haircut person, Phil reminded everyone that he follows his barber to wherever he goes.  Why? He gets the service he is most comfortable with.  In the competition for services, businesses need to recognize that your people are what attracts and keeps your clients coming back.  If you are constantly churning service personnel, you are at a competitive disadvantage.  Recognize the value that your employees bring as service providers to your clients and leverage that relationship.

To save time, reduce costs, eliminate expense, or through simple ignorance the emphasis on motivating, training, and developing employees have been become an undervalued component in business today.  It is no coincidence that PetSmart continues to gain market share in a highly competitive market.  They value their employees and it shows in the results.  This is something to think about as you develop your budget for next year.

This past week there has been a lot of news and commentary about the automotive bailout.  With the exception of the Midwest and an aggressive Democratic caucus, there is minimal interest in bailing out the automotive industry.  Why? They simply do not deserve it.  More importantly, our economy really does not need it. This is a simple case of “management and boards of companies that have shown arrogance since the 1950s that they never needed to change in a fundamental way.”  The auto industry has had 35 years to figure out how to compete against the foreign competition—build fuel efficient vehicles, develop high quality vehicles, manage their payrolls, and re-engineer and retool their operations.  What did they really do? Nothing or, at the very least, not nearly enough.  What makes the automotive industry the exception to the typical business and competitive rules regarding innovation and change in a highly competitive environment?  Their inability to adapt or change cannot and should not justify a free pass when every other US business is expected to figure it out.

Even with their hands out, automotive leadership are dictating their terms and demonstrating their unwillingness to accept accountability for this situation.  This smacks of arrogance.  GM Chairman, Rick Wagoner does not understand "what purpose would be served" by stepping down. UAW Head, Ron Gettlefinger says “the union won’t make anymore concessions.” It is time these parties recognize their responsibility for this situation and agree that massive change is required.  It needs to hurt a lot to receive this bailout.  If taxpayer dollars are involved, everyone should feel the sting.  Besides, if significant change is not associated with this bailout, what have we really learned or accomplished?

Many are arguing that as many as 3 million people may lose their jobs if GM, Ford, and Chrysler fail.  Not true.  The only people who really would suffer in the advent of a collapse are the people who have always stood in the way of real change in Detroit in the first place—Executive Management and Unions.  There are plenty of automotive manufacturers and suppliers with existing US operations ready to expand to pick up the slack if GM, Ford, and Chrysler stop making cars.

Detroit, it is time to accept accountability for your actions.  You want bailout money? It has to be on someone else’s  terms, not yours.  The most directionally appropriate involve, “freezing salaries of auto executives, ensuring taxpayer money isn't used to pay dividends to shareholders, and 'very possibly' a requirement that new management be brought in.”  Anything less, would just not be right.  Wake up Detroit—it is time for a real change!!

In today’s tough times, it is hard to generate an aggressive position with regard to the auto industry.  The entire global market is feeling the pain of a significant economic slowdown.  And, the devastating impact on those employed by the manufacturers and suppliers should a company like GM or Chrysler actually shut down is significant.  That said, it is very, very difficult to understand why we should be forced to bailout a business segment that is in trouble as a direct result of years and years of very poor management and bad business decisions.

The problems now facing the US based auto suppliers should not come as a big surprise.  The fact that they are in financial trouble was quite predictable and very avoidable.  The ignorance and helplessness that they are demonstrating now, as if they did not see these problems coming, is laughable.  As a lifetime Detroiter, proudly a non-automotive employee, I can tell you gross mismanagement, lack of vision, minimal risk taking, arrogance, greed, and entitlement are all core values associated with the automotive industry. This is a generational trait that goes far beyond the scope of what has happened in the past few years. Toyota, Honda, BMW and Mercedes are all experiencing sales pain solely as a result of the current economic contraction.  According to GM, Ford and Chrysler, they are in trouble because their legacy costs are high, they cannot get great ‘green’ vehicles in their pipeline in time to meet established requirements, and they do not have the money to retool their plants. While on the surface these seem to be legitimate issues, the real truth is that they have bloated payrolls, have never invested in the future, and have focused all their resources on high profit trucks and SUV’s which are now not selling.  How was this unforeseeable?  What was their long-range plan if and when it did happen?

As the auto industry is the foundation of our manufacturing sector, keeping these businesses in business is a must.  I am hoping that while we must step up and help, we do not simply write a blank check.  Ford, GM, and Chrysler must demonstrate that they recognize their accountability for this mess and make the requisite drastic changes.  After all, they have had 35 years since the Oil Embargo of 1973 to change their industry and build safe, exciting, and fuel efficient vehicles.  I am not in favor of giving them another 35 years of the same old ways with my tax bill.  It is time the auto industry got in touch with the rest of the real business world and incorporated fiscal responsibility, true innovation, and long-range vision into their business model.  Shortsighted, risk adverse and entitled behaviors got them here.  Without a significant culture change, nothing will be different.  Get busy Detroit—it is time for real change!

Editor’s Note: After I wrote this blog on Monday 11/10, I found this fantastic article by Paul Ingrassia in the Wall Street Journal.  Please read this.  I am not alone.

In case you missed it last week, there was a very influential group of people who participated in last week's election--Gen Y.  A recent blog "Generation Y: Your Voice Has Been Heard" underscored the influence and the impact of the Millenials.  The next generation of leaders, workers, and business leaders are found in Gen Y.  They expect to be heard, respected, and treated differently.  More importantly, they have a unique understanding of the power of technology and social media.  Businesses leaders need to recognize their influence and their potential.  The Obama Campaign attracted, recruited, and put to work this generation of voters and that was a key component in his victory.  As business leaders, it is important to learn how to embrace and enroll this generation into the workforce--it will make a huge difference if you do.

What a very, very exciting, interesting and historic day yesterday.  While this is generally a sales or business blog, I cannot help but take a moment to comment with my brief perspectives on yesterday's events:

--Barack Obama's win captured an enthusiasm and energy I have never witnessed in an election before.  It was long overdue, it was needed, and it was very moving.

--It has been a long, long time since the youth of America got excited about and involved with our political future.  I am thrilled.  We need the younger generation to become leaders today.  The earlier they are engaged and motivated, the more we will develop positive and influential leaders for the future.

--John McCain took direct ownership for failing to win the contest.  This was a powerful statement.  McCain demonstrated why he is a great citizen and patriot in his concession speech.  His holding himself accountable for the results illustrated why he has been an influential and sometime 'maverick' Senator.

--Watching Barack and Michelle Obama walk off the stage at the very end of his speech was quite moving.  Here were two partners relishing the moment, realizing what they had accomplished, and demonstrating for a brief flash their recognition of the enormity of the accomplishment and of the upcoming challenge.  This was the absolute highlight of the day's activities.

This change has been a long time coming.  Whether you are happy with the outcome or in alignment with Obama's views, it does not matter.  The people have clearly spoken.  I am excited and motivated to get some positive, non-partisan political activity going in Washington.  It is way past due.  This is not a time for conservative or liberal posturing.  This is a time for decisive, collaborative decisions in a lot of important areas.  I think we now have a chance to do that.

After yesterday's events, I am committed to embracing the leadership of our elected President and am eagerly looking forward to supporting his direction.  I have always encouraged people to embrace change and to look for different ways to accomplish great things.  I am hoping and trusting that this is another time where it is all good! Time will tell.

Who could have anticipated at the beginning of 2008 that we would be in the midst of an epic economic meltdown? Not many.  I was thinking back to an event I went to in early March 2008 which featured Jamie Dimon, the CEO of JP MorganChase.  At that event, he talked about how the mortgage crisis was more or less behind us and we should start to see improvements in the economy by the3rd or 4th Quarter of 2008.  Even as recently as eight months ago, Jamie Dimon was expecting positive economic trends at this point in the year. No one has a crystal ball!

My words of encouragement here: Focus on What You Can Control!

There are only two things you can control in this world--your attitude and your effort.  Now is the time to remember this mantra.  There will be many things that will happen in the next six to nine months that will be well beyond your control.  And, if the current economy is a predicator of those events, some will not be positive.  Our response to those events and challenges is in our control and our response is what must drive us.

When I find myself frustrated with my business and start to feel things are not swinging in my direction here are the two things that I immediately focus on:

1. Not owning the negative.  Chicken Little was well-known as a poster child for the 'sky is falling' syndrome.  I have seen complete organizations freeze in their tracks and stop working because there was a rumor of a merger or layoffs.  When you start to focus on the negative, the negative is what you become.  The negative becomes a self-fulfilling prophecy.  Yes, negative things will come at you.  The challenge is to recognize its potential to stop you cold and force yourself to turn away from it.  The best response is to celebrate your successes as you continue to move your business in a sustainable direction--even in the face of adversity.

2. Celebrate the small victories. Finding things to celebrate focuses your time and energy on positives and makes you take your mind off the negative.  Consistently celebrating successes gives you no time to engage in negative energy.  Small victories are things like good meetings, great feedback from your client, a contact or accomplishing a challenging task. We accomplish many little, yet important things everyday.  Congratulate yourself on the great things you are accomplishing and spend zero time or energy on those things that will slow you down.  When you energize yourself through your successes you will have little time to focus on bad things.  Tell yourself, "I am just too busy being successful here to worry about failure."  When you feel good about winning, you will keep on finding ways to win.

I fondly remember a scene toward the end of the movie Parenthood where Steve Martin is lamenting his wild and turbulent life.  In walks his Grandma and she begins talking about the joy and fear and elation of riding the roller coaster at the fair.  And, how that experience is much more satisfying and fulfilling than riding the safe and dull merry-go-round.  This is a great metaphor for the entrepreneurial experience.  We are definitely in the midst of the wildest and craziest roller coaster ride imaginable.  We have already decided to take the ride--we might as well embrace, enjoy and celebrate it.  Have fun, enjoy and celebrate your journey!

Anyone who reads my blogs or participates in my seminars or coaching programs know that I am passionate about the importance of effective communication skills in the sales process.  A recent series of questions that I posted on LinkedIn.com reveals that, as a profession, we are still not learning to do this effectively.  A simple question, "What is a bad sales behavior or trait you see too much of and would like eliminated or corrected?" revealed a wide range of responses. Most of the responses focused on the fact that sales people are simply not utilizing effective communication skills to build the connection, listen to the client, or recognize and understand that there is no real business opportunity.  Here are some excerpts from those who submitted responses:

• Sales is about listening, not steamrolling someone with all the reasons you think they should buy.
• They are talking at their audience, not engaging them in a dialog. If they understood the real power of using different types of questions to solicit participation from their prospects, they would not waste valuable time, create better relationships with their customers and close more business.
• Sales people who talk more than listen, and then keep talking.
• Reps should try shutting up and listening a bit more, we have one mouth and two ears for a reason! They should know this and remember it.
• The Show Up and Throw Up technique. Sales people that just fire product/service pitch after service/product pitch at their prospect in hopes that something sticks. Or, The 'I have the perfect solution for you! by the way, what's your problem?' technique.

We all get the idea.  If you want to join in on this conversation, please feel free to answer the open question on LinkedIn.com.  The bottom line is that people do not have time for sales people who are more interested in selling their stuff than they are about learning about and solving the real problems of their clients.  Until we, as sales people, start doing a better job of this, we are going to keep getting branded as pushy, aggressive, talkers that no one has time for.  One of the submissions to this post provides a great close: "Selling at its heart IS communication. When a salesperson is listening actively and is truly interested in what is being said, the sales resistance from the client is often diminished and the customer feels understood--creating the environment for a sale to take place. No listening = No sale." --Paul Comi, Jr. Right on Paul, enough said.

On yesterday's broadcast of The John Adam Show, host John Adam invited his father, Adam, to inject fresh perspective into today's business environment.  Adam, a very successful local business owner provided a very simple, concise message that needs to be shared.  For those entrepreneurs who are looking for some great advice and perspective listen to this.

I just stumbled on a great blog by Scott R. Sheaffer, Sales Vitamins entitled "Five Realities of RFP's."  This article reasonates with one of my previous blogs ("Another Unproductive Sales Activity-Chasing RFP's").  To Scott Sheaffer's credit, this is one of the best summaries of the RFP Myth I have come across.  While I am going to paraphrase his points, I encourage you to read this post in its entirety.

The Realities of RFPs (Request for Proposal):

1. We cannot win without a relationship.

2. Companies have a pre-defined short list.  If you have not been involved in writing specs for the bid, you are not on that list.

3. Toss unexpected RFP's in the recycle bin.

4. Soliciting companies rarely select a winner on price only. They know what features they want and who has them. Don't waste your time fixating on price.

5. Myth: Most RFPs have some comment claiming that no, or at most limited, contact is allowed between the soliciting company and bidder. Reality: If you’re on their short list of winners there won’t be any limitations as to how often you can have contact.

Find Out if You’re on the Short List:

1. Submit a preliminary abridged draft proposal with the soliciting company.

2. Request a 30-minute appointment with them to review the draft proposal.

3. Emphasize the importance of this meeting as it relates to thoroughness, accuracy and the investment of resources in the proposal process.

Summary If they won’t agree to this meeting, then there is a very good chance you are on their designated loser list.

Kudos to Scott for this blog, this is right on target!

The following is an excerpt from the book, Cooked Up Sales. (This book is available for purchase at Amazon.com.)

First, the fundamentals

Sales is about relating, learning, and solving. If a salesperson is telling or advocating or pushing, they cannot listen, learn or connect. It doesn’t matter if you’re a great orator. It is not how great your product is. It is not your company or its capabilities that closes the deal. Rather, it is how well you have personally developed an understanding of what the customer is trying to accomplish and how they envision you addressing their needs. In order to effectively accomplish this, a sales professional must be able to focus on the client, the needs, the discovery, and the relationship. In the end, the key is to demonstrate a value based link to your product offering and their very specific needs. Do not push yourself—because it is not about you--but rather pull from them. If you are starting to get tired of hearing yourself talk, it’s already too late—you have probably jeopardized the sale.

Author's Note: Cooked Up Sales was written to bring the basics back to selling.  This book is short, concise, and focuses on the fundamental key to excellent selling results--relationships that add value.  Today, people do not have the time to fool around with pushy sales people or aggressive business tactics.  They are looking for business relationships that help them solve a problem or fulfill a need.  This book is written around that basic theme.  And, it teaches how to maintain a strong, effective business relationship throughout the selling process while simultaneously producing effective sales results.

Watching the endless Presidential Campaign advertisements on television, listening to those negative sound bytes on the radio, and watching these so called leaders debate each other, one thing is quite obvious---they do not have any sales people helping them with their campaigns.  The reason I know this--they spend way too much time talking about the "other guy".

Great sales people do not need to spend time talking about the other guy.  That is called "Selling Down."  If you are selling down, that means you do not have much to sell about yourself.  If you cannot say something nice about your competition, then do not say anything at all.  In reality, you should find something nice to say about your competition--it builds your credibility, demonstrates that you have the confidence in your abilities, and enhances your character in that you do not go out of your way to knock people down. Selling down is a weak sales strategy.

Great sales people know how to "Sell Up."  If you are selling something that you believe in, something that is credible, something that truly has value--the only thing you need to accomplish is to help the buyer recognize how it will add value, solve a problem or, fulfill a need.  That requires no time for the competition, it only leaves time to make certain you, as a salesperson, are communicating at the right level with your audience.

My message to the Obama and McCain campaign brain trust--people hate sell down messages. Stop it! If you are fed up with all the negative Presidential Campaign rhetoric--blame the candidates.  More correctly, blame their advisors who have no sense of how to sell their story.

A question posed on a recent blog about discounting prices in an economic downturn, rekindled a previous discussion Sales Cooke conducted on The John Adam Show.  In the podcast from that show, Sales Cooke talks about the real impact of a pricing strategy that resulted in a discounting of prices to gain more business.

Adjusting your price downward is a very risky and dangerous proposition.  The perceived value of your product offering is based on the price you establish for it.  Adjusting it downward implies that you have now devalued your own offering.  When you devalue your product offering, you are sending a message to the market that you were overcharging in the first place; or, you realize now that your price is not justifiable.

On the flip side, you are now challenged with raising your prices later to recover your price reduction.  That requires the ability to defend a price increase.  Justifying the price increase means demonstrating value.  If you already "discounted" your price earlier, a perceived devaluation, how can you now explain your price increase today?  What has changed in your value proposition?

The best course of action is to focus on selling your value, engage in a better sales process, and stay the course on pricing.  Yes, times are tough.  And, the market is more competitive and cost conscious.  This is the time to focus on adding and selling your value and making certain that your product delivers the benefits that you believe they do.   Avoid the roller coaster behaviors of selling to price.  Sell your value and sell well.  Only good will follow.

I hear too many people exclaim that they just do not have enough time to do the things they planned to do.  The reality is, they do not plan properly, they try to do too much, or they do not plan at all.  Good time management habits come when you value your time and realistically plan how you are going to use it

The time to organize your tomorrow is at the end of today.

Before you closeout your workday, take thirty minutes to plan tomorrow and also take a little look ahead to the future.  Utilizing these thirty minutes helps you organize your follow-up activities, captures the tasks accumulated in the day, puts them in their place, and prepares you for tomorrow.  The time to organize your day is not as you are driving to the office or to your first appointment.  The time to organize your day is the night before.  Always give yourself thirty minutes to get organized at the end of the day. You will be glad you did.

I had a great conversation with a trusted colleague this morning.  We talked about the transitions owners make when they are first starting out and what happens when their business begins to grow and generate sustainable revenues.  While it is not always wise to generalize, the one thing we noted was that owners have a tendency to become internally focused on the operational side of the business as it gets to a certain size and scale.  As a young start-up, most owners are in front of clients, are the "feet on the street," and are making new connections.  Then, the business becomes successful and they work in the safety of the "nest."  At some point, most owners start to lose some of the key connections with their newer clients, are less involved with the sales process, and spend much more time managing the daily operations of the business.  This is a very risky proposition.

A critical component in any sustainable business is the customer relationship.   It is the customer that generates the revenues in your business.  Every time they place an order, request service, buy a part, or sign an agreement they are bringing revenue into your business.  If you are an owner, the most important connection you can have to sustain your business is with your clients.  Your relationship with your clients enables you to connect, to say "thanks," to obtain feedback, to solve problems, and to help your sales team get more business.  While it is very important to know what is going on in the "nest," remember your clients are paying the bills.  Make sure they know how much you appreciate their business.

The other aspect of this activity is that the strength of your relationship with your client minimizes the threat an exiting sales professional puts on your business.  It is important that your salespeople have great client relationships.  You want your clients to trust in your salespeople to provide the greatest of account management and service.  However, the harsh reality is that salespeople do leave.  When they do, the strength of the ownership relationship and the business relationship with that client will define the impact of that departure.  The best time to protect your client base is when you have a stable sales situation.  Build and nurture that relationship often and your revenue stream is much safer and steadier.