Pete's view

Getting Cut

2009-07-27T12:36:00.000-07:00

I remember the first time I ever got cut or eliminated from something. It was my sophomore year in high school and I was cut from the football team. Now, I wasn’t a world class athlete or even a top talent in my local area but I had been playing pee-wee and junior football for years and always had been a starter and contributor to my teams. I believed then and still do today that I was better than three to four others who made the team, but in the end I learned a few things.
One, life isn’t fair. The experience was my first awakening to that simple truism. I’d been in a trusting and naïve state until then. In spite of all of my hard work, team orientation and my talent (whatever that might have been) I didn’t make the team. In a nutshell, the coach really just didn’t care for me. Why…I don’t know although I have my suspicions. If you’re in an environment where you are looked at differently or looked down on or looked over, you will have a much harder time making a go of it than being in an environment where you are valued. This is true in business and life. Your associations with others who think positively of you and who see potential in you will go a long way toward your success.
I became aware of this as I went through high school, college and into the professional world. Much of where we end up is that nice combination of what you know and who you know. And the ‘who’ counts a lot. The people who know you well and like you can be huge influencers in your life because they will do what they can to help you be pulled along on the path to success. I came to see my task as being discerning about who I would choose to get to know and be pulled along with in order to further my career and life. I was careful about the choices and would avoid people who could be negative.
Second, I learned to persevere and not give up. I learned about using my anger in a positive way by channeling my energies to compete and win. After I got cut I went home and told my parents about it. I was in a feeling sorry for myself state. Fortunately, my dad wouldn’t buy it and he got on my case. “So, what are you going to do about it? Give up? Is that what you want? If you really think that you should be on that team you should go back and show them.” I did. I went back to the coach and told him that I wanted to work out with the team even though I was cut. He allowed me to hang on the sidelines and help the starting quarterback by running pass routes for him while he warmed up. After three days he put me on the team. I learned that ultimately it was my choice, not his, to hang in there and work hard to get my chance.
From then on whenever I had a setback I resolved to not give up. When someone told me that I could not be successful at something I didn’t give up. In sales, you are always challenged and you are always in a competitive situation. While it’s true that you can’t sell everyone, for a variety of reasons, it’s also true that you must have a competitive fire and will to win. You must not give up. There are opportunities for second chances and through these you can play and win. Whether to hang in there is your choice.
So, two things to think about- both of which I think are applicable for businesses and individuals in this economy, one where holding on or looking for work are the situation: (1) Be focused on who you are connected to and make the most of those connections to help your business or career. Choose who can help you or your business (2) Don’t ever give up. Keep fighting because you don’t know when you’ll be noticed or needed. If you don’t push forward you can’t play.
© 2009 All Rights Reserved Peter E. McDowell
PERFORMA Business Development
Different View/ Better Results
pete@performabusdev.com
Web @ http://www.performabusdev.com
Blog @ http://petemcd.wordpress.com/
Connect with Pete on biznik, Contribution Networking Party, Eastside Entrepreneurs, Facebook, Konnects, Linked In, Plaxo and Twitter.

Profit- a dirty word?

2009-07-21T17:15:00.000-07:00

OK, a bit of a rant today. With all of the noise coming out of Washington these days, you’d think that profit is evil. If you own a business or are very into the business that you work in it’s a no brainer that profit is not evil. It’s a requirement, an outcome of business best practices. With no profit sooner or later you are not in business. Possibly later, because your cash flow can pull you along for a time, but eventually the cash well runs dry.
I get tired of the assault on the business community over profitability. The questions of how much profit is ‘fair’ or how much is ‘too much’ galls me. Competition usually has a way of managing back profit to reasonable (meaning, specific industry benchmarks or norms) and sustainable levels within time. Unfortunately, there have been a few bad apples at the Fortune 1000 levels that have soured the perceptions of running a profitable business and distributing the rewards of such to owners and employees. Rewards come in many ways, from hourly wages, salaries, benefits, stock options, bonuses, commissions; just to name a few.
Another thing I get tired of, from the Washington beltway crowd, the vast majority of whom have never run a business or been in private enterprise their entire career, is the politically convenient attack on certain industries as having ‘windfall profits’. These people have no clue what business best practices are, the kind that actually allow you to make a profit. No one has adequately defined windfall profits. Just what is one? How much in real dollars or as a percentage of sales is a windfall profit? No one can ever give you an answer for a very simple reason- they don’t have one. They’d rather be an attack dog because the sound bite opportunity is too good to pass up.
Let’s take the standard or favorite whipping boy, the oil industry, and specifically Exxon. In the past few years, every major business magazine and business newspaper has published an article on this industry and this company. If you actually take the time to examine the profit performance as measured in percentage of revenue, their net profit percentage, they (the industry and company) are smack dab in the middle of the industrial pack, and for ROI also. They also spend more dollars per revenue on CAPEX and R&D than most industries or specific businesses. Why are they attacked? Simply, because they are BIG and the numbers reported are BIG. These are huge companies with thousands of employees, huge revenues and huge profits. Funny isn’t it, how in 2008 no one said anything when their profits were down due to the huge drop in oil prices and the corresponding gasoline consumption by consumers who elected to drive fewer miles? My message would be this- don’t buy into politicians pontifications. Do your homework when it comes to understanding the numbers of business and specific industries.
By the way, when it comes to windfall profits (if you can define it), guess who has some of the best return on their investment into an industry? Our politicians. Both parties. Many come into Washington with moderate net worth and years later with a net worth in the multi-millions, all while voting themselves nice pay increases and ever broadening benefits packages every year. And, with the only real risk being one of not getting re-elected. Wish I could be in their shoes…controlling my own pay and benefits. Oh, did you see the report in the last week or two about these people in Congress having a special investment fund that allowed them to have a net return of 25% for 2008, a year when most everyone on the planet went backwards, with many seeing their entire nest eggs wiped out? How do we get into their fund?
Starting, owning and eventually running a business is a very risky venture. People should be rewarded from profits for the risk taken. Business people should have every opportunity to produce an outrageous profit as long as they are law abiding, treat their employees and customers properly and provide products and services that solve real problems or provide real benefits. The problem isn’t profits. The problem is always humans and sometimes you get humans who behave in ways that are not acceptable in society. The vast majority of business people I know and have interacted with for years are good, hardworking people who are trying to get ahead. They are people who have stepped up and taken the risk to develop a company that can provide employment and benefits for many.
© 2009 Peter E. McDowellPERFORMA Business Development
Different View/ Better Resultspete@performabusdev.com
Web @ http://www.performabusdev.com
Blog @ http://petemcd.wordpress.com/
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Not good to great

2009-07-14T10:01:00.002-07:00

How do you fire a million dollar account? Should you? Sometimes, the answer is yes.
I once had the experience of selling to a very fast growing technology company, way back in the day when hardware was still manufactured in Silicon Valley! This company was the type of fast rising star that had annual growth rates in the 300% to 500% range, shooting from nothing to $500mil in just a few years. And no, it wasn’t Sun Microsystems, which back in its day grew at similar rates. (In fact, I also handled Sun Microsystems at the very same time.) The company noted here was on the top of all fast growth companies lists and was noted in numerous business magazines and newspapers.
As you can imagine, managing sales and relationships in a company like this was both challenging and exhausting. When a company grows at this incredible pace everyone in the growth company is operating at an intense level and the demands put on vendors are just as intense. These fast growth companies come to rely on their vendors to help keep the supply chain moving. Their MRP systems are usually behind the growth curve for two reasons- things happen too fast for people to keep up with analysis of needs and people make mistakes in the input of data.
The business had good margins and volume for our company. We jumped through hoops every day to make things happen and make certain that at quarter end, when numbers would be reported, their shipments would not be impacted by our inability to supply product. We never let them down and in fact, we lifted them up in many ways and saved their bacon.
Now, this would seem like a pretty good thing, but it wasn’t because we were not appreciated for our excellent work. In spite of our amazing performance of high quality and 99% on time delivery, we were verbally abused every day by the people in purchasing and shipping, and by the Director of Operations. The D.O. also managed the accounting group. We had trouble getting paid…not only on time or with extensions, but getting paid at all. Our customer service people would be in tears, our manufacturing people would be swearing and our accounting group would be upset. One day, I was abused and it was ‘the straw that broke the camel’s back’. The D.O. screamed at me, with full helpings of profanity as his main course, in their accounting department when I brought in duplicate documentation to verify shipments made…months before. That was it for me.
Although I did not have an ownership position in the company I worked for, I approached the owners and suggested we should fire the account. Guess what- they agreed! The hassle factor of dealing with such an abusive customer was damaging other customer relationships and hurting our employee morale. We were not employing our resources or assets as efficiently as we could to grow our business because of this customer.
So, we fired the customer and never looked back. It was a gusty decision at the time and it shocked the D.O. He couldn’t believe it. Our company had a hiccup for a few months but we regained our growth rate and took off. It was a lesson learned. As a side note, this company eventually went down as a result of poor management and shady accounting practices, so in the end their ‘M.O.’ didn’t work.
Let’s be real- in today’s extremely tough economy it is very hard to suck it up and walk away from any business. Most businesses (there are exceptions) are happy just to have customers. They feel that they cannot afford to be fussy and they can’t lose any business. However, even now you may be doing business with customers who greatly impact your business in a negative way. Be aware of this and examine your customer roster. Don’t put up with a customer who abuses your business and your people, and sidetracks you from moving forward in tough times. You are better off doing business elsewhere with people who you like and trust. You are better off when you can focus your energies on things that make a real difference in the survival and ultimate growth of your company.
© 2009 All Rights Reserved Peter E. McDowell
PERFORMA Business Development
Different View/ Better Results
pete@performabusdev.com
Web @ http://www.performabusdev.com
Blog @ http://petemcd.wordpress.com/
Connect with Pete on biznik, Contribution Networking Party, Eastside Entrepreneurs, Facebook, Konnects, Linked In, Plaxo and Twitter.

Not good to great

2009-07-14T10:01:00.000-07:00

No frills

2009-07-08T13:49:00.000-07:00

I like to read the Wall Street Journal, to get a different slant in the news than what is reported daily in the local Seattle media. The WSJ always has interesting articles that you won’t find elsewhere. On Monday, one article caught my attention because it has relevance to every business, I think. This is a great example of business strategic planning in the midst of challenging times.
C.F. Martin, the maker of Martin Guitars, is using a Depression Era strategy to keep production flowing and avoid layoffs. By the way, the guitars are a $472mil industry, much larger than I thought. Their strategy? Simplify the product and sell it at a much lower price. Take out the frills and extras. Take out manufacturing costs of labor and material to provide a very decent product that meets today’s consumer’s low price needs. Their top end guitars sell for as much as $100,000 and much of their line is in the $2,000 to $3,000 range. These newer, low cost guitars are well under $1,000. Martin’s strategy is to keep their lines flowing and maintain a strong presence in the market.
We’re seeing similar strategies played out in other industries as well. The restaurant business, especially those in the higher end price range, is delivering high quality meals with lower pricing or providing incentives to customers to come in and spend. Witness the countless Happy Hour offerings under $5 on items that used to command $8 or more. Or, the three course dinners for around $30. The mentality is to drive volume and cash flow, and continue to have a strong, recognizable brand. You don’t want to risk losing customers or top-of-mind-awareness. It’s important to survive, be seen and to be in a position to grow strongly once again when the market turns.
What can this type of business strategic planning mean for your business? Where can your production or service expertise deliver real value at lower cost and still provide workable and acceptable margins in order to contribute cash to the business and retain valuable and experienced employees? It’s something to consider whether you provide a physical product or tangible service. It takes combined best thinking of your entire team to reap the benefits.

© 2009 All Rights Reserved Peter E. McDowell

PERFORMA Business Development
Different View/ Better Results

pete@performabusdev.com
http://www.performabusdev.com/
Connect with Pete on biznik, Contribution Networking Party, Eastside Entrepreneurs, Facebook, Konnects, Linked In, Plaxo and Twitter.

M5

2009-07-07T14:41:00.000-07:00

Meddling Micro Managers Make Mayhem.
Too true, eh? And yet, how often do we witness and experience this in businesses large and small? I’ve experienced this way too much and it astounds me that people don’t get the concept of losing control to get more enjoyment and better results in a business. These types of managers or owners typically think they are the only ones with intelligence. They think they are the only ones who truly care about the success of the business and its profitability and prosperity. So, they continually make all of the decisions about the business, be they tactical or strategic. They rely on self to have important conversations about how the business is doing- why it’s getting the results it gets and how things must change. There is little to no desire to seek out opinions and ideas elsewhere. There are no meetings with key staff to dive into issues and ask tough, honest questions. There is no discipline in getting a collaborative strategy developed and employed. They dive into the smallest details and watch everyone and every project like a hawk. After all, the owner is the main player, has the answers and must not let you get away with thinking.
Ask yourself this- why are so many small businesses, and even large ones too, going out of business in this tough environment? Is it really all just about the economy and the market they serve? Let’s be clear, I’m sure those are definitely big factors. But, they are far from the only reasons. Typically, owners of businesses don’t seek counsel, advice and ideas from the broad slate of stakeholders or advisors until it is way too late. In the past year, a consulting associate and I have had a number of desperate inquiries from businesses about our services. We definitely could help them. There’s a problem though- they are out of money. It’s too late. And it’s not unusual for us to hear, “Gosh, I wish I contacted you much earlier. You could have really helped me.” You see, they believe they can solve their problems by themselves.
How do you lose control to get more? Actually, you’re give up control by delegating tasks with clear personal responsibility, accountability, and goals and by encouraging and fostering the flow of ideas, opinions and expertise from your staff and others (such as mentors, your board, important stakeholders). It takes swallowing your pride and admitting that you don’t have to know it all. It takes developing a real trust in your people. It takes a commitment to developing your people. It takes leadership in visioning and then communicating a course and objective.
It’s done by some and it works tremendously well. It’s just that too many people don’t practice these things. Sad and unfortunate.
© 2009 Peter E. McDowell
PERFORMA Business Development
Different View/ Better Results
pete@performabusdev.com
Web @ http://www.performabusdev.com
Blog @ http://petemcd.wordpress.com/
Connect with Pete on biznik, Contribution Networking Party, Eastside Entrepreneurs, Facebook, Konnects, Linked In, Plaxo and Twitter.

Clarity and Specificity

2009-06-24T11:20:00.000-07:00

Perhaps you have the same challenge as me. I’m always challenged on how I can be clearer and more specific in my words, both written and verbal. It’s critical because everything that I communicate has to be well understood. It must be so crisp and to the point that instantly, people ‘get it’. Frankly, I have a lot of improving to do in this regard. I’m going to be reworking and simplifying my simple web site once again, because I think the messaging can be much better.

I got thinking about this today because I had had received an email from a business friend that, for me, wasn’t as clear and specific as it should be. The person was asking for my feedback on the wording of a communication. Now, it may be that I didn’t process it well. But that’s the point. I didn’t get it. Kudos go to my friend for taking the time to reach out to me (and others) and ask for feedback.

This may be something for you to think about also. Is your marketing message clear and specific? Is your sales conversation clear and specific? Are work order instructions in your company clear and specific? Are job descriptions and expectations clear and specific? They should be. If they’re not you may be wasting valuable resources- money and time.

© 2009 Peter E. McDowell
PERFORMA Business Development
Different View/ Better Results
pete@performabusdev.com
Web @ http://www.performabusdev.com
Blog @ http://petemcd.wordpress.com/
Connect with Pete on biznik, Contribution Networking Party, Eastside Entrepreneurs, Facebook, Konnects, Linked In, Plaxo and Twitter.

Cutbacks Here To Stay

2009-06-24T11:18:00.000-07:00

A small but interesting article caught my attention today in the Wall Street Journal. A recent survey by Watson Wyatt Worldwide indicates that many of the cuts in jobs, pay and benefits that have taken place over the past year or more will be permanent. Companies are not going back to the way they were. Jobs will not be replaced. Pay levels will be very slow to rebound. Employees will continue to pay for more of their own benefits and companies will pitch in much less to the overall benefits menu.
So, what does this mean for you if you’re in a small business and your target market is tilted toward a mid-market or large business? My thoughts-

If you provide benefits consulting and-or programs, your expertise is going to be needed because many of these companies are not aware of the options they can exercise in order to both cut costs and keep the remaining work force engaged, productive and happy. Although nervous about the stability of the economy and just thankful to still be gainfully employed, they also see benefits cuts as just one more example of being devalued;
If you provide human resources consulting, your expertise is needed for the same reasons- companies will need to be shown how they can keep their employees valued and in the game. Right now they’re not feeling that- they’re scared and thankful to have a job. You can deliver innovative ideas and concepts to the C-level management team that will help them to get the most out of their human assets and meet financial targets and other metrics;
If you have expertise in areas of marketing, sales, IT, accounting you have opportunities to show creativity and value by being a contract employee to solve a specific challenge or need.

Most companies are shedding people in areas that do not directly drive revenue and profit. Companies are morphing more and more into concept and idea farms to develop products and services with long term potential. That’s why manufacturing is outsourced by technology companies. That’s why accounting and IT services are outsourced. And, increasingly, sales are being outsourced.
Think about your business. Where can it play a role in providing needed services to a larger company, one that is not going back to doing things the same way; one that is not adding costs back into its mix as the economy slowly gets better.
© 2009 Peter E. McDowell
PERFORMA Business Development
Different View/ Better Results
We work with owners and senior managers in small businesses under $50mil to get much better results through developing an aligned strategic plan that focuses heavily on marketing and sales. As a (based in) Seattle Consulting firm we deliver business best practices and business strategic planning.
pete@performabusdev.com
Web @ http://www.performabusdev.com
Blog @ http://petemcd.wordpress.com/
Connect with Pete on biznik, Contribution Networking Party, Eastside Entrepreneurs, Facebook, Konnects, Linked In, Plaxo and Twitter.

What You Think, Part 2

2009-06-19T08:45:00.000-07:00

Picking up where I left off, we know the following: (1) what we and customers think about is what is fresh in the mind right now, (2) macro marketing over long periods of time affect what is in each person’s brain and how they think about things, (3) what is in the mind is literally made up on the spot. This is important for the profession of sales.

As a sales person, you should know that things that are made up, right now, may be true or they may not be. They might be making something up that is off the topic (maybe their mind is wandering or they have a personal issue clouding things), off the wall (maybe they are confused or not focused), or is pure nonsense and you should pay attention to that one.

Let’s take a look at the nonsense part, because this is something that occurs frequently.

Buyer: “We’re looking for you to reduce your prices to us by 10% a quarter over the next three years.”
Yeah, right. Let’s think about this scenario. Your product has a cost of $1.00 and you sell it for $1.35. Reducing the price by 10% twelve times brings it in at $0.38. What nonsense. Even if you squeeze your vendors a bunch, and you decrease your margins, you won’t get close to this. Call him on it. He just made it up. By the way, this actually happened to me.

You: “Mr. Buyer, I totally understand your concern about and need for cost reduction for your organization. But frankly, this demand doesn’t make sense to me. Let’s take a moment to go through the numbers and I’ll show you where I am coming from. That will give us both a better understanding of things and would be worthwhile, wouldn’t it?”

And then take a page from your business best practice book- go on to point out the real math for the example. Use this opportunity to ask more questions about how you and your company can help them to achieve their goals. And remember, both of you will be making it up as you go along.

This is where verifying what you hear comes in. The practice of listening and reflecting back isn’t a little game to mimic someone. It’s a technique that makes the words more real. When you reflect back to someone exactly what they just said, what they were just thinking, it becomes more real- for them and for you. Write down what they say and review it with them, word for word.

“Mr. Schmedlap, what I think I heard you say, is the most important two things for you to move forward with us are…… Did I get that right?”

Mr. Schmedlap will either say “Yes”, “No”, or, “Well, that is what I said but what I really meant was…” It could be the key to how you develop your proposal because your proposal should match what they said was critically important.

To sum up, the way you think and the way your customers (or, buyers) think are point-in-time thoughts. They are made up on the spot. Be aware of this. Adjust your conversation around this awareness and question into what customers actually say. Get deep and detailed with your questions. Confirm what they say and make it real for them. Use their words exactly and weave these into your proposal or into building your relationship. Make thinking about what you think or they think a business best practice.

© 2009 Peter E. McDowell
PERFORMA Business Development
Different View/ Better Results
Business Best Practices, Business Strategic Planning
pete@performabusdev.com
Web @ http://www.performabusdev.com
Blog @ http://petemcd.wordpress.com/
Connect with Pete on biznik, Contribution Networking Party, Eastside Entrepreneurs, Facebook, Konnects, Linked In, Plaxo and Twitter.

What You Think, Part 1

2009-06-17T16:06:00.000-07:00

What are you thinking about and why is your awareness of this important? Learning how to think about thinking is a business best practice.

I heard this saying twenty years ago: What we think about is what we think about. We literally are in a constant thinking/thought production mode. I’m in one at this very moment and so are you. So, what is on my mind is what is on my mind right now. It never stops, it’s continual. And, we have the ability to change what we think about and to help others change what they are thinking about.

This is important in the context of being with people, especially if you’re in sales. As a backdrop to this article about thinking, consider the following two paragraphs.

If you are a sales person calling on a buyer or a purchase influencer, you know that the way they approach the interaction is from a combination of their personal and professional experiences. They interact with you and others based on what they think, feel, believe and remember- it’s their total background. There may be expectations passed on to them from others in the organization about specific wants and needs that are in play- those things that will make their situation better. And, their approach to the conversation they’ll have with you includes the macro marketing that has been done to them over the years. This macro marketing is the way they perceive the sales profession, your industry and your company. Remember, marketing at its base is about creating a perception to drive buyers to consider strongly the need to purchase goods and services from you.

As an aside, here’s an example of macro marketing, and really, I’m not trying to pick on an industry but this is one that most people relate to- car sales people (author’s note: I’ve sold in this industry for a very ethical and well run business, with outstanding sales people on the staff, so I know firsthand what this industry faces). Most people dread going into a car dealership because they’ve had such a lousy experience in the past. They’re treated poorly, they always feel they are getting the raw end of the deal, they believe the sales person and the back room managers are manipulating numbers, and in the end they walk out feeling worn out and not trusting the business. It’s sad, but because too many dealerships have exhibited poor behaviors over the past 75-plus years there is this market perception in people’s heads throughout the U.S.A. about buying a car. The industry marketing has conditioned people for an uncomfortable experience. People deeply believe they will not have a great experience in a car dealership. Unfortunately, it affects the dealers who actually treat customers the right way.

Now, back to the background of thinking, buyers are already coming to meet you with this thought collection, this background of information, or this macro marketing in their heads. The interesting thing is, that even with this baggage already being pulled along by them, you can continually change your thinking about what they are thinking and saying when dealing with people. You have the ability to make things up in your questions and responses. And, you also can know that what they say is only a reflection of what they are thinking right now. They just made it up- just this instance.

So far, you’ve learned or relearned the following points: (1) what we and customers think about is what is fresh in the mind right now, (2) macro marketing over long periods of time affect what is in each person’s brain and how they think about things, (3) what is in the mind is literally made up on the spot.

I’ll continue this conversation in my next piece, to be published soon…so stay tuned!

© 2009 Peter E. McDowell
PERFORMA Business Development
Different View/ Better Results
Business Best Practices, Business Strategic Planning
pete@performabusdev.com
Web @ http://www.performabusdev.com
Blog @ http://petemcd.wordpress.com/
Connect with Pete on biznik, Contribution Networking Party, Eastside Entrepreneurs, Facebook, Konnects, Linked In, Plaxo and Twitter.

End of life

2009-06-16T10:59:00.000-07:00

Whether it’s a company, a human or a pet animal, it’s always difficult to see the end of a life. Now, there are exceptions: Idi Amin, Josef Stalin, the Pet Rock, the Edsel, etc. Some things are not missed. But, the end of life brings with it a chest full of memories and experiences, some good, some not so good, some just incredibly awesome and joyful. Where we work, who we interact with and how we spend our time is the substance of our lives. You work at, you connect with and you attend to these things.
Take our dog, Sparky. He’s 15 ½ and nearing the day. He’s deaf, can’t see well, can hardly walk or stand, and is losing his ability to control bodily functions…yeah, you know what I mean. There is one thing he hasn’t lost- his ability to smell and hang in the kitchen ready to pounce on whatever food product drops on the floor. Ahh, dogs, what garbage guts. And yet, he’s still hanging in there and we’re not ready to take him to the vet for his trip to doggieland (my bet is that once they get there they all get their share of mini sirloin burgers and get to chase UPS trucks all day).Why aren’t we ready to check him out quite yet? In spite of how much of an annoyance he’s gotten to be, he’s still our dog. He still brings a smile to our face and memories of when he was a puppy and our kids were in the innocent age. He brings to mind images and remembrances of good times. Those of you with pets can relate, I’m sure.
If you’ve ever been in an organization that held great value and importance to you, it’s no different. Ask the many hard working, honest people who enjoyed what they did and poured their hearts and minds into Enron, Arthur Anderson and GM, to name a few. And the same is true for deep friendships and soul mates.When something isn’t there anymore there is a void. You fill it with memories. End of life. Not so easy to deal with.
© 2009 Peter E. McDowell
PERFORMA Business Development
Different View, Better Results
Business Best Practices, Business Strategic Planning
pete@performabusdev.com
Web @ http://www.performabusdev.com
Blog @ http://petemcd.wordpress.com/
Connect with Pete on biznik, Contribution Networking Party, Eastside Entrepreneurs, Facebook, Konnects, Linked In, Plaxo and Twitter.

There's a reason

2009-05-16T17:19:00.001-07:00

There’s a reason why Apple is stealing market share from the personal computer market. There’s a reason for everything, except for divine miracles- those are best left to being unexplained. In business, for sure, things happen for a reason and there are consequences. A consequence is neither good nor bad- it just is. (con⋅se⋅quence –noun (1) the effect, result, or outcome of something occurring earlier: The accident was the consequence of reckless driving, (2) an act or instance of following something as an effect, result, or outcome).

True story #1: eight months ago my daughter bought a Mac Book. She brought it home, unpacked it, turned on the power- voila! Everything worked perfectly and instantly. I gave her the WEP Key to connect to our wireless router and she was off and running. As simple as turning on a TV.

Let me tell you about a consequence of using Microsoft Vista- true story #2 and fresh in my mind. Yesterday, my wife and I went to a local tech store and purchased a new Sony Vaio laptop. Like they say in the latest Microsoft ads, we got a pretty good deal. Now, the reason why we bought a PC is pretty simple: lower cost than a Mac, about 50% lower. Truthfully, and not to rub salt in my wife’s wounds, I had strongly suggested for months that we overspend and get the Mac. We should have. Here’s what happened-

My wife unpacks the computer, and follows to a ‘T’ the set up instructions, including Connecting To The Internet, which uses, of course, Microsoft Internet Explorer. We have high speed DSL from Comcast and the wireless router. She’s in the room with the router and my home office is in another room twenty feet away. So far, so good.

But, when I go into my office just a bit later to use my laptop, I can’t connect. Why? Because Microsoft IE has renamed and reconfigured our network connection into a LAN with encryption keys. The network now runs through my wife’s laptop, and I don’t get a signal directly from the router. I have to go through her laptop with a new network name and path. This is what the path diagram is showing me. Fortunately, my wife meticulously wrote down everything she could, including the Security Key. So, I try to connect using that- no luck. I run numerous troubleshooting exercises, numerous Security Key entries, etc., etc., etc., all to no avail. I cannot get on the internet now. Thirty minutes earlier it was no problem. Only now, with Microsoft IE taking control of everything I am locked out. We try reconnecting and renaming on my wife’s new machine- no luck. It is set in stone.

OK, now, let’s see if Sony can help…nope, their phone number is only for warranty issues. There are no help numbers. And, absolutely no manuals for anything included with the computer.

OK, let’s try Microsoft help…umm, nope. Their instructions just take us back through the exact same fix suggestions that we’ve already tried. Hey, want to actually pay for Microsoft to fix the problem? We don’t. We didn’t cause it. But they want us to.

I am constantly astounded by the crap that comes out of this company. It' s clear that the Apple ads, those poking fun at the challenges and shortcomings of a PC, are right on. After twenty plus years, a consumer should not have to be a techie to get a new computer set up. With Apple, you don;t. It should be a relatively pain free experience or process. Nothing with Microsoft is pain free. It's a hassle injection.

So, now I'm a bit stumped. What exactly is the reason behind the bad consequence we experienced with our new laptop? There must be one or more reasons...only a techie knows for sure. And to that end, we're going to have to shell out $50 more tomorrow to get the problem fixed. That way, I won't have to get up at 6:00am again to visit a local coffee shop to get some work done and use their internet connection.

© 2009 Peter E. McDowell
PERFORMA Business Development
Different View/ Better Results
pete@performabusdev.com
Web @ http://www.performabusdev.com
Blog @ http://petemcd.wordpress.com/
Connect with Pete on Linked In, Facebook, Twitter, biznik, Plaxo, Contribution Networking Party and Eastside Entrepreneurs

Spring is finally here- business best practices can be too!

2009-04-28T10:31:00.000-07:00

April 2009 author’s note: I originally wrote this piece in April 2007! I’m updating and revising it because it was relevant then and it’s even more relevant now. I saw the economic recession coming two years ago and advised my readers, owners of businesses, to give serious thought to developing a robust marketing and sales plan. Sadly, many did not- they continued to do things the same old way, ignoring business best practices. They’re in trouble now. So, my revised article-

It's All About The Tide

Those of us that have been around a while know that while 'a rising tide floats all boats', you can expect an ebb tide or, receding tide, to follow. That’s what has happened over the last year. By the way, my corollary to the saying, 'a rising tide floats all boats', is that in a good economy, even inept businesses can make money in spite of themselves. Now, be honest- has that been true for you?

Food For Thought

Really, how is your business doing? Are you performing at a high level or hanging on? At Performa, Our business is all about helping small businesses to perform much better and thus, grow. Even in this recession, I'm seeing many companies that are doing extremely well. Are you doing the things you need to in this downturn of our economy? Following are some basic questions for your consideration:

Do you have a marketing plan?
Have you studied your market?
Have you figured out how to grow market share in a stagnant economy?
Do you know the various business factors that affect your customers and in turn affect the health of your business?
Have you developed a rock solid prospecting plan and sales process?
What is in your sales pipeline?
Do you have measurement systems in place to know where your sales are and what they will be over the coming quarter?
Do you know what pieces of business are most profitable?
Have you taken the time to examine your various product or service offerings to fully understand your gross margins?
Do you really know what your gross margins are?
Do you know about every opportunity and the sales cycle for each, and do you track your closing ratio?
Are your sales conversations super effective and disciplined so that more deals are closed more quickly?
Do you have an annual business plan in place? Does it include a strategy for employing business best practices?
Is your organization operating as a bunch of individuals or are you really a top notch, engaged TEAM?
Do you have a constant flow of new ideas that will improve your business operations internally and provide value to the market?

Relevant today

These are as relevant today as they were two years ago when I originally wrote them. Now is not the time to retrench. Now is the time to employ business best practices to take your business to another level. If you can dive in deep and tackle at least half of the above questions and really push through to execution, you will not only survive the current environment, you’ll thrive.

©April 2009

Using Experts

2009-04-01T07:07:00.000-07:00

As a consultant or advisor, I often wonder why small business owners and managers, those with revenues less than $50mil, don’t reach out more for more help in learning what I call business best practices. I have a theory, which I’ll share later on.

It’s not a surprise that to be a business owner you have to have certain qualities. Here are a few:leadership, independence, drive or dominance, control and influence. Every owner has most of these qualities to some degree, with some much more prominent than others.Independence is the one characteristic residing within every business owner. Many people start a business in order to not ‘work for the man’ anymore. They want their independence and have the need to be in control- to be master of one’s own ship is a strong thought and feeling. And, the need to have all the answers is common trait- to be seen as the smartest and most knowledgeable person in the room. After all, you are the owner and boss and you should demonstrate your superiority. In fact, it should be available for all to tap into.

Running a business is not easy. The pressure to succeed is high, even for very intelligent, savvy, competent and experienced owners and managers. The need to be all over today’s results, to be focused on the immediate takes over. They really are working in the business and not working on the business. In my experience, 90% of businesses under $50mil do not do formal business planning or even do formal monthly financial reviews. They do not have an aligned and integrated roadmap for where they are going. They manage on a daily basis for daily results. Astounding.

Therefore, it becomes difficult to ask for help even though most businesses could be doing much better and need to employ business best practices.

My theory on why owners and managers don’t seek out counsel and expertise is related to the independence and working daily in the grind of business: many owners I speak to have ignored or forgotten one of the prime reasons they went into starting a business in the first place (in addition to independence). It’s called building personal wealth.

Building wealth is done in a variety of ways and I’ll mention just two. One way is to focus on the more immediate term, say a business fiscal or calendar year, wherein one can earn a bunch of money, live a good lifestyle and put the balance in what I’d call normal investment vehicles such as property and securities (and we’ve seen what has happened here recently). Too many owners get trapped in the yearly performance and reward trap. Another way to build wealth is by understanding that building a business long term requires consistent growth in sales revenue, gross margin and net profit. Continually grow your business in these areas and when it comes time for a liquidity event of your choosing (business sale or transition/succession) you’ll have a much more valuable asset.

Now, many consultants (advisors, mentors, etc.) like me will try to develop the need for a consultant-client relationship by bringing to the surface the current pain or future pain that the prospect has and getting affirmation from the prospective client that ‘something needs to be done’ to alleviate or minimize the pain. The pain is so great that the work must begin. The problem is most business owners don’t take action to work with someone who can help them with business best practices because they either think they can manage the pain themselves and then get rid of it, or they really don’t have future pain…because they don’t have an End-In-Mind for their business. More often than not, it’s not a matter of available cash for services. As noted above, they’re not focused on long term wealth building in the business and therefore have no pain associated with the future. It is just something they don’t think about.

So, tying all of this together and getting back to my main issue, I think the real reason consultants have challenges in gaining clients who could use their experience and expertise is that most business owners don’t really have a deep understanding of or thoughts about the long term pains they might face and the long term gains they can have if they focus on building wealth. Until we find an owner who has a clear long term goal, it’s pretty difficult to help by providing business best practices.

email @ pete@performabusdev.com

Web @ http://www.performabusdev.com

Connect with Pete on Linked In, Facebook, Twitter, biznik, Plaxo, Contribution Networking Party and Eastside Entrepreneurs

Great Event To Attend

2009-03-20T09:15:00.000-07:00

OK, this is shameless promotion, but it’s not for me (which, frankly, I should be doing more of).

The National Speakers Association Northwest chapter, in conjunction with the Business Forum Committee of the Columbia Tower Club, is presenting:
Get Your Audience To Stop, Look and Listen- How to use stories, space, surprise, interaction and image to persuade your audiences

Time is running out to register for this all day event at the Columbia Tower Club (701 Fifth Avenue, 75th Floor, Seattle) next THU 03/26/2009 from 8:00am-4:30pm.

IT’S ONLY $99
Learn more and Click here to register!

That's a huge bargain, especially in today's economy. You will not find a more relevant or practical event to attend.

In this full day Presentation Skills Workshop, you'll learn to SHAPE your message and SHARPEN your delivery. Whether you're speaking to clients, employees, stakeholders or the media, you need to speak with authenticity, confidence and passion. Gain the ultimate advantage, communicating effectively for a competitive edge.

Six top Presentation Skills Experts from the National Speakers Association will teach specific techniques to craft your message and polish your speaking skills so that you truly deliver every time. Work smarter, not just harder! Invest in this one day to make the difference in your professional development! Be the speaker you always wanted to hear!

Prime your audience to receive and retain your information

Use space and gestures strategically
Connect your professional image and brand
Find the best ways to tell your story
Connect with every audience so people want to hear more from you
Use the power of the media to deliver your message

Emcees: Tracey Conway of KING 5 TV and Comedy Central's Almost Live and Scott Burns of Oldies 97.3, 95 KJR and KUBE 93.
Who's speaking: Jolene Jang, Candace BelAir, Brian Walter, Sunny Kobe Cook, Max Dixon, and Vanna Novak.

This incredible, full day event is only $99.

Learn more and Click here to register!

© 2009 Peter E. McDowell
PERFORMA Business Development
Different View/ Different Results
pete@performabusdev.com
Web @ http://www.performabusdev.com
Blog @ http://petemcd.wordpress.com/
Connect with Pete on Linked In, Facebook, Twitter, biznik, Plaxo, Contribution Networking Party and Eastside Entrepreneurs

Rejuvenation

2009-03-16T15:42:00.000-07:00

I just finished a week of vacation and it was well worth it- my first real vacation in a year. My wife and I went to Palm Springs and the weather could not have been better. Not only was it a chance to get away from the long and dreary northwest winter, which is still in full force as I write this, but it was a chance to recharge, which I did. To be honest, I had planned on doing quite a bit of business work while ‘on vacation’, thinking that the time away from the normal, every-day grind would actually be beneficial for me and allow me to get work done on projects I never seem to get to. I only got to a few things and spent the vast majority of time relaxing and spending time with my wife and my son.

The important thing for me was the validation that really letting go and enjoying the opportunity to do nothing is what we all need from time to time. Even in today’s stressful economic environment (or perhaps, especially so) it is critical to one’s mental and physical well being to discharge all of the junk in one’s life and recharge by doing things that are fun and non-stressful. I truly lived in the moment and thoroughly enjoyed the opportunity. You don’t need a full week- getting away for two to three days can be refreshing as well.

I also had a few observations, as I usually do, about the travel and hospitality business. This time, my observations weren’t on problems with airlines or hotels or restaurants, but rather how much the current economic time has impacted those industries. I expected that there would be a noticeable drop in activity but it was actually worse than I expected. I have never been through airports, gotten a rental car, driven on busy southern California freeways, used hotel resort facilities or eaten at restaurants with such ease. There was an obvious lack of travel dollars being pumped into the region compared to other years- a big drop off in my book. My hope is that many of the smaller businesses that rely on the greater travel industry will survive, because there are s many hard working people and small business owners that deserve to. I was extra generous in my tipping as I know how important that is for so many.

PERFORMA Business Development

Different View/ Different Results

pete@performabusdev.com
Web @ http://www.performabusdev.com
Find and connect with Pete on Linked In, Facebook, Twitter, biznik and Plaxo

Three Trends To Think About

2009-03-10T09:31:00.000-07:00

What do I see, as ‘the man on the street’, for trends in the midst of all of this economic challenge? I read a variety of magazines, papers, columns, white papers, e-newsletters and the like. Based on these and my own experiences, I’ll name just a few.

People are holding on to their wallets and looking for value and the value is based on lower price levels.
Businesses and people are getting back to basics.
People are looking to do business with those they can trust.

Price Driven Value

Value as defined in the dictionary is (a) the relative worth, merit, or importance of something; (b) the estimated or assigned worth; (c) the worth of something in terms of the amount of other things for which it can be exchanged or in terms of some medium of exchange.
In the U.S.A., we’re seeing a flight to value. People are looking to spend less, a lot less, for goods and services. People are saving more now and shopping less. I live in a relatively affluent area. At the mall the other night, I could have rolled a beach ball down the center and not hit anyone. But, those who do shop are looking for value. We always have, but now the value is defined differently and it’s at a much lower price level. Price is a much bigger priority now, pretty much across the board.

Luxury goods are struggling and not because the rich cannot afford them (they can), but because people who are not rich have stopped splurging on ‘a once in a while’ major luxury purchase. A good example would be the middle to upper middle class consumer, such as moi, who occasionally splurges on a beautiful piece of jewelry at Tiffany to celebrate a major personal event. They’re now shopping at a lower level store to spend less or not shopping at all- choosing to delay the purchase until times are better. Nordstrom, where my daughter works, is expanding with its Nordstrom Rack stores to capture the new demands for value.

The same mentality is showing up in capital improvements for business. There is not free cash or discretionary cash flowing to your business anymore. Customers are demanding much lower prices to receive the same value. Businesses have to make do with the resources they have and if they spend on new equipment or infrastructure they will be much more thrifty in their approach.

It’s a new value equation, one that squeezes even more out of your business. So, the challenge for every business (your business) is to articulate the value of what they do (aka The Value Proposition) so well that they can glean the extra gross profit percentage they need and deserve.

Business Basics

Every business is being forced to return to basics. There is no room for fluff anymore, whether in marketing initiatives, personnel, or product and service offerings. Banks, so front and center in the news for the past nine months, are trending back to such basic services such as checking and savings accounts and away from risky ventures and complicated investment instruments (partly by choice, partly by government strings and regulations). They are focusing more on traditional banking services.

Retailers are being more selective about their offerings, choosing to take fewer chances on possible winners and going more with proven traditional winners. Manufacturers are getting out of products, businesses and customers that have added some, but marginal, profits. In some cases, they added almost nothing- true loss leader products or services designed to drive customers to more profitable products and services. No more. They are focused on the tried and true core competencies that are more predictable and immediately profitable. Pork and chance are gone from businesses…unfortunately though, not from Washington.

So, with your business, what are you focused on to get back to basics? Do you have clarity around your core competencies and how those drive sales and profitability? Are you stretched too thin across the competitive landscape and do you need to rein in the peripheral stuff that really distracts from your prime purpose? Perhaps these are questions that you need to address.

Trusting Relationships

People are looking to do business with those they cannot only trust relatively quickly, but more and more with those in whom they can build longer term trusting relationships. What do I mean by ‘those they cannot only trust relatively quickly’? Simply, that numerous transactions have occurred over the past few years in a hot economy with people and organizations that seemed trustworthy. You needed X, they supplied it. There wasn’t much depth to the business relationship and it sometimes was based on a loose or peripheral referral. Often it was both necessary and expedient to solve a problem.

Businesses spend 100% (or more) of their cash. They spend every dime on a variety of products and services. Even putting cash from profits into investments is an expenditure into an account that is expected to provide a return. Now, businesses cannot afford to put their eggs into any baskets that may not be tightly woven. They must put their eggs in containers they know will protect their investment and provide a return. They must put their money into places and with people or relationships they can trust to a high degree and for the long term. There is high risk in doing business with those who do not fit a long term trust model.

So, you’re faced with evaluating the truly important supplier, customer and professional services relationships that will enable your business to prosper in today’s world. Do you know who these people and companies are? Have you evaluated your various stakeholders to determine who is best equipped to handle your eggs over time?

Price Driven Value, Business Basics and Trusting Relationships. Three Trends that I see as important to consider right now.

© 2009 Peter E. McDowell
PERFORMA Business Development
Different View/ Different Results
pete@performabusdev.com
Web @ http://www.performabusdev.com
Find and connect with Pete on Linked In, Facebook, Twitter and Plaxo

Info Overload

2009-02-20T10:11:00.000-08:00

I find that it’s a challenge these days to stay on top of everything and I’m actually a contributor to the problem for others. The volume of emails, e-newsletters, blog feeds and the like is overwhelming at times. Let’s just call this e-info. Maybe it should be i-info… whatever.

I’m an information junkie and I love to learn so I have a tendency to want to dive into everything that comes my way. This isn’t necessarily good. It’s a distraction from getting more important things done. Then, add e-info forwarded to me from people in my network, all with good intent, to what I get from things I’ve subscribed to or given permission for and it’s WAY TOO MUCH! The ones that really annoy me though are the e-newsletters that show up in my inbox from someone I met once, barely know and never gave permission to send me anything. They never asked and that’s a no-no.

So lately, I’ve been pulling the plug on useless communiqués and unsubscribing to a number of things. I’m trying to focus more on ones that address my personal and professional interest areas, like social media and online marketing. If you’re like me, you may want to do the same- delete/ cancel/ unsubscribe to the distractions of the things that keep you from doing your real work. You only have so many minutes each day to pour into your business.

PERFORMA Business Development

Different View/ Different Results

pete@performabusdev.com

Web @ http://www.performabusdev.com

Find and connect with Pete on Linked In, Facebook, Twitter and Plaxo

Turn Crisis Into Opportunity

2009-02-10T20:29:00.001-08:00

OK, I just read an article, an interview actually, from the February 2^nd issue of Fortune magazine. The interview is with Jim Collins, author of Built To Last and Good To Great, among other publishings.

Here’s the link: http://money.cnn.com/2009/01/15/news/companies/Jim_Collins_Crisis.fortune/index.htm

The article is one I can identify with because I keep advising CEO’s and others that ultimately it’s how you articulate, live and breathe your organization’s DNA that makes a difference. DNA can be expressed in a well thought out Mission Statement (and, Values and Vision). It’s what drives your organization forward and is exhibited in the strategies you develop and the way you behave to execute them. My belief is that most companies large and small want to been seen as a good place to work.

Great companies are super consistent in their beliefs and intentions and they hang on them whether times are good or bad. They don’t waiver when times really get tough. Their core values carry them through a crisis. They highly value the abilities, skills, talents and contributions of their people to navigate through challenges and to take them to the next level. They are so in tune with their DNA that they exude a confidence in times when other companies are nervous and unsure. This confidence propels them to even greater performance.

If you haven’t read Jim’s books, you should. For sure, you should read this interview.

PERFORMA Business Development

Different View/ Different Results

pete@performabusdev.com

Web @ http://www.performabusdev.com

Blog @ http://petemcd.wordpress.com/

Find and connect with Pete on Linked In, Facebook, Twitter and Plaxo

Responding to pressure

2009-02-02T15:07:00.000-08:00

Yesterday was the annual Super Bowl blow out party day. Oh yeah, there was a football game also- a darned good one at that. One of the things that impressed me in the game was the ability of players and coaches on both teams to step up and deliver under pressure with so much on the line.

If you watched the game, you saw this on a number of occasions. Here are just a few:

When the Cardinals were about ready to score at the end of the first half and the Pittsburgh defender stepped in at the goal line, intercepted a pass and returned it 100 yards for a touchdown. This could have been a game changer and caused the Cardinals to buckle- they didn’t as they came back in the second half;
When the Cardinals were down with under three minutes remaining in the game, they had to score a touchdown to take the lead and they did in dramatic fashion with a long play;
Following that the Steelers had to score at least a field goal to tie the game and send it into overtime- they scored a touchdown with seconds left.

Why did these teams perform so well and how does it relate to your business? I have a few thoughts.

One, they practice, practice, practice. They know their plays, they practice situation drills, they practice specific techniques, and they practice options when things go awry. What would happen if they took the field and just improvised and ‘winged it’ on every play. It would be chaos. Now, some improvising is done on each play, but the players know they need to perform the way they practiced. An example would be a play where a receiver makes a cut on his route and just as he turns the ball is there. The quarterback threw it to a specific spot seconds before, to arrive right on time. Without practice, that level of preciseness and execution couldn’t happen.

So, in your business, do you or your sales people continually practice your sales conversation skills? Do you practice role plays? Do you practice how to greet people genuinely in order to build trust quickly? Do you practice how to deliver your elevator pitch so that others get what you do, understand your value proposition and actually see the value? Do you practice specific situations or scenarios before you go into a major account strategy? Do you have contingency options in case the conversation takes another tack? I could go on and on. The point is to make practicing your craft a regular part of your sales development efforts.

Two, each player knows his role and how it fits into the overall scheme to make things work better. When the pressure is high, the importance of specific roles is high. Everyone has an assignment. They have to know where they need to be, how they need to act or behave, and how they relate to others. When you’re being challenged as the incumbent in an account or trying to acquire a new major account the pressure is high also. You need to make sure that you have the right resources available to win.

If you need to bring in your customer service director to address service issues, do so. If you’re not the owner of a business but you need your owner there to make a critical decision, bring that person in. If you need your Controller or CFO to participate to help in financial aspects of a contract bring him or her in. Don’t play the lone ranger and try to get the score yourself. Use other role players, experts in your business, to help. If you’re in sales, know what your role is. Your role is to be seen by your customers and prospects, and your own people, as someone who has their act together and has done the homework necessary to establish or continue the business relationship- to drive business commerce. You are the one who has to get the right role players gathered and make sure everyone knows their role.

Three, they are super focused. Sure, they are focused on the big goal of winning the game but they are always focused on one play at a time- the current play. They know that what they do next influences what happens in the long run. They focus on first things first. So, they put all of their concentration into doing a great job on the job at hand. It’s also similar in golf. You can’t be thinking about your putt if you are on the tee. Focus on what is in front of you.

When you bring a level of high focus to your work, when you really zero in on the task(s) at hand, you will not only do better work, but you will actually do it with less pressure. If you’re thinking about the pressure and all the related problems then you aren’t thinking about what you need to do right now. Think about what needs to be done, do it well, and the rest will take care of itself.

So, to deal with pressure, practice regularly and seriously, know your role and other’s roles, and focus hard on the most important tasks to get the job done.

PERFORMA Business Development

Different View/ Different Results

pete@performabusdev.com

Web @ http://www.performabusdev.com

Find and connect with Pete on Linked In, Facebook, Twitter and Plaxo

The little things

2009-01-27T14:43:00.000-08:00

Most people have heard that little things make a difference but they never really stop to think about them, as they relate to their business or even their personal life. Do they really make a difference and if so, how?

Using the sport of baseball, here is a simple example. So, do you think that just getting on extra hit every week makes a difference in baseball?

My numbers may be wrong, but here is some information to think about, to make a point. In general an average hitter in baseball will probably make in the range of $1mil to $5mil each year, so let’s settle at $3mil as the number. That’s lot of money, right? A superstar hitter will make between $5mil and $20mil each year, so let’s settle at $12.5mil. That’s 4X what the average hitter gets.

In major league baseball a batter is considered a superstar if he has a batting average of .300 or more every year. An average hitter will be around .250, a difference of .050. There are roughly 500 at bats (AB) for day to day players over 25 weeks in a season. One hit more per week equals 25 more hits.

Let’s do the math:

500 AB with 125 hits = .250 batting average
500 AB with 150 hits = .300 batting average

Let’s stretch it a bit to 1.4 extra hits per week:

500 AB with 160 hits = .320 batting average…wow that’s 70 points above the ‘average Joe’

The slight difference of one extra hit per week or more means a difference in earnings of 4X, or roughly $9.5mil more each year! On a typical four year contract that’s $38mil. The difference between being a superstar and an average player is really not that much when looked at on a weekly basis.

The same is true for you and your business. Now, how can you apply this to your business? Well, in baseball it’s getting the extra hit and for many players that means extra work in the batting cage and willingness to experiment and change technique. It’s also a commitment to better results and it’s a mental focus on getting results.

In your business, examine what the real drivers of revenue and profit are. Sometimes these are obvious, sometimes they are not what you think they are. In sales, it could be the mix of business, the activities and focus of your outside and inside sales team, the contacts made, the number of opportunities for quoting on business, the quality and effectiveness of your sales conversations, the close ratio, etc. In your planning set realistic stretch goals and be super diligent in measuring and monitoring performance. Be all over the activities that lead to results, knowing that incremental and steady growth in performance will lead to much better numbers.

Small things do add up over time. Your job as a salesperson or manager is to figure out just what those little things are and be very intentional on getting better at them to grow revenue and profits. If you’re in production or logistics, it’s not any different. There are numerous small things that you do everyday that can be improved upon and will add up to increased productivity and reduced operational costs.

Sweat the small things, the details, because they really do matter.

PERFORMA Business Development

Different View/ Different Results

pete@performabusdev.com

Web @ http://www.performabusdev.com

Blog @ http://petemcd.wordpress.com/

Find and connect with Pete on Linked In, Facebook, Twitter and Plaxo

Headlines of Interest

2009-01-12T20:26:00.000-08:00

Here is a one week snapshot of some recent headlines from local and national media:

01/8/2009 P-I STAFF AND NEWS SERVICES

Retailers report dismal December sales

01/8/2009 THE ASSOCIATED PRESS

Wash. jobless claims set record in December

12/28/2008 PUGET SOUND BUSINESS JOURNAL

SBA Loans Slump- Credit Options Shrink for Small Business

Tough Budget Forces Hard Choices at UW

01/08/2009 PUGET SOUND BUSINESS JOURNAL

Seattle hits Top 10 list for troubled real estate assets

Alki Condo-nundrum, Biggest backlog of sales in county

Seattle joins ranks of ‘double digit decline’ in home prices

Microsoft Landing? Many Concerns Loom in turbulent 2009

Slump hurts hotels

And finally…

State hopers additional liquor sales help balance budget

Amazon: holiday season ‘best ever’

Seattle ties for U.S.’s most literate city

Now, there’s an interesting mix of gloom and optimism.

Those of you who know me well know that I have been pretty darn pessimistic about the state of the economy for quite some time. I have been on record as saying that based on my study of a wide variety of experts, that I believe we’ll be in tough times for a few years…out until 2012 or so. I’m also on record as saying that I hope I am 100% wrong and that we’ll be going through a more normal recession cycle with a faster recovery.

The above headlines are just a sampling of what we’ve all seen for the past six months. Economic conditions are very difficult yet I find the bottom three headlines of interest.

One, and this is a bit humorous, Washington state is opening ten new state liquor stores to bring in additional revenue. This is the first time in my memory that any government has encouraged people to drink away their concerns and solve a budget issue at the same time. State officials don’t expect the recession to affect drinking habits- they expect sales to grow! Got a budget issue? Drink more booze! Visit your state liquor store and accomplish two things- reduce the state deficit and find temporary happiness…

Next, Amazon is proving that the new way of doing business over the internet (new in that this is a new marketing and sales channel evolving in the last ten years) is a great way to capture market share and grow. Their model and execution is the envy of any other company trying to sell large volumes of many products on the net. It’s instructive in that it reconfirms the power and promise of the ‘net. This power is available for both consumer and industrial product and service companies. If you’re not leveraging this channel then you are missing the boat. Confession: I’m nowhere near where I should be in leveraging the ‘net to drive more revenue and profit to my business, but I can assure you that it is part of my strategy for 2009. I have been lax here and if you have also, then rethink what you are doing with your marketing. I’ll be revamping my website in the next few months and will keep you posted when it is done. Admittedly, it’s a bit stale and sincerely, thanks to those of you who have been honest and pointed that out! It’s just one thing out of many that I need to be doing to get better positioned on the ‘net.

Third, there’s hope in Seattle and its environs. It’s a city in a region where there is a lot of intellectual capital- people with intelligence, creativity and entrepreneurial spirit. It’s a region where the power of innovative ideas will make a real difference in maintaining economic stability and driving future growth.

One other headline I saw recently had to do with Southwest Airlines, the best run airline company in history. Southwest is looking at the current market conditions and positioning themselves to grab market share in a down economy. They see failing competitors pulling out of cities that would be well served with their model and they are planning on moving into those cities. They are looking to grow. They are not retrenching.

Amazon and Southwest, two very different companies, are moving aggressively forward and we should be doing the same. But, don’t be reckless and don’t be lazy. The 2009 New Year is just beginning. If you haven’t already, develop a well thought out strategy for how you are going to grow and prosper in tough times. If you need help and would like a complimentary one hour consultation and assessment of your business, please contact me.

PERFORMA Business Development

Different View/ Different Results

pete@performabusdev.com

Web @ http://www.performabusdev.com

Blog @ http://petemcd.wordpress.com/

Find and connect with Pete on Linked In, Facebook, Twitter and Plaxo

Looking from the other side

2009-01-06T15:58:00.001-08:00

A short missive today…
One of the hardest things for me to do is to look at a topic or conversation from another viewpoint, from the other side. Especially when dealing with a lot of people at one time…that’s multiple sides. If you’re like me, putting yourself in someone else’s shoes is not easy. Being empathetic is not easy. Yet, that is what it takes to be successful in sales, and probably in life.
This isn’t new- it’s always been that way. It has just manifested itself in different ways in different eras and different cultures. I maintain that getting truly connected to someone by earnestly and deeply seeking to understand their position and reasoning for a desired outcome is one major component for success. If you can’t do this to some degree your chances for success are diminished. Oh sure, you may be successful from a monetary standpoint because you can run all over people (point two below). But as most reasonable people know, success is way more than money and power. I won’t get into all the definitions of what success means, here.
There are a number of reasons why getting in someone else’s shoes is hard for people, but at least two are clear to me.
One, some people are too centered in their own thoughts. It may not be that they intentionally are ignoring the world around them or don’t care about others. They’re not trying to be distant or uninterested. They just have no clue that they are always operating inside their own head with no regard for or interest in the environment in which they are in- and that environment includes people. When they encounter others they are thinking only about what is in their mind. It’s not normal for them to naturally be interested in the other person and to really understand or seek out the other person’s viewpoint. Their emotional intelligence is turned off. They pick up on few or don’t pick up on any nuances of the people that they interact with. Verbal and visual clues just go right by…
Two, some people choose to dominate- they have no interest in learning about the other person’s view. They want their voice to be the one that is heard- loud and clear. They purposely block out everything to make way for espousing their own agenda. For them, it’s all about getting their way and accomplishing their objectives. So, the heck with what other people think or how they feel. ) Again, these types may make a lot of money but their legacy is ultimately badly tarnished and they have few true friends, the kind who will stand by them and tell it like it is when they finally need advice. That’s because they rarely, if ever, seek advice and operate with reciprocity.
To be honest, I’m not always interested in other people’s views. Some people bore the heck out of me. Most of the time I need to get my self-awareness turned on to where I get clear that I am blocking others out and that I need to focus hard to get into their shoes. I find it easiest when I meet with someone who is intellectually stimulating- then I zone in on them.
What’s it like for you?

Not a year-end look back

2008-12-24T15:22:00.000-08:00

Nope, I’m looking forward. 2009 will be a great year because there will be plenty of opportunities. How do I know? Because, I’m choosing to make it a great year. There are so many people out there whining about how tough it is that they’ve convinced themselves that they cannot grow and cannot win. They are retrenching so far back, that in effect they are not even playing the game. I’m going to play.

One thing I know is that after years of selling and in delivering sales training winners win all the time. It doesn’t matter what the environment is. Winners make their own luck. Winners have the right attitude. Both innately and by choice they are optimistic and looking for better ways to get things done in order to win. The power of positive thinking not only works for you as an individual, but it spreads to others as well. People take action when they are around positive people.

There was a recent study done that validated the effect of positive thinking. One interesting point was that positive thinking can affect others directly outside your sphere of influence. To me, that seems to match up with the old saying, “what goes around comes around”. At some point, your positive attitude (and other things such as kindnesses, courtesies, demonstrations of extra effort, the granting of grace, etc.) will come back to you in a very good way, perhaps in a time and place outside of your original actions. It may not be monetary, but it will be beneficial.

What have you got to lose by thinking and acting positively? Nothing. And, it’s easy because you have a brain and can make the choice. Stephen Covey calls it “making up your own weather.”

Merry Christmas and HAPPY New Year- make it a mentally sunny year!

Niceness

2008-12-17T07:59:00.001-08:00

OK, there is no real intention here to tie to the holiday season as to who’s been naughty (nastiness- last blog) or nice, but…how refreshing is it when you encounter someone nice in your day to day routine. Today my wife (who is my ‘bestest’ friend) went shopping for her Christmas present- slippers. We’re at the age where surprises are still nice but it’s perfectly fine to give a major hint to your spousal unit as to what you’d really like or need.
So, off to the mall we went: Nordstrom, Macy’s, Aerosoles, JCPenney, Tully’s Coffee, back to Nordstrom, and finally New Balance. I’m a guy and not a super shopper but I still had fun. Hey, anytime I’m rewarded with a double tall non-fat latte I’m going to be just fine.
So, what was my experience with the retail world in a hectic season? Surprisingly, good, with one exception: JCPenney. We searched for ten minutes through rack after rack of merchandise, in a cluttered and jumbled department, never finding what we wanted. JCP may have had it, but no one ever bothered to come over to ask if we needed help. This chain or particular store must be understaffed because absolutely no one was available to assist us. It’s not that I got the impression that we were invisible, it’s just that no one was around, except for the cashier, who had a ten deep line at her register. Weird.
At all of the other stores the sales clerks were very helpful and friendly. One salesperson allowed my wife to try on a number of items and while none of them fit or felt just right for her, the salesperson was very helpful, friendly and full of good cheer. We finally found the right product at Nordstrom, and true to their reputation for outstanding customer service, we had a young man who hunted and hunted for the right size and color. He must have pulled out five different boxes. He didn’t find it, but he did find the product within Nordstrom’s system and get it ordered to deliver to our door.
And when ordering and getting our lattes we had the same, cheerful experience, as was going in and out of the mall a nice experience. We actually had teenagers open and hold open the doors for us. Obviously this was courteous, but it was refreshing in that I don’t experience this very often any more. Young people today (and unfortunately quite a few older people) seem to have lost their manners. So, this was unexpected.
The short 90 minute excursion into shopping mania turned out to be quite pleasant and we experienced a high ‘Niceness Quotient’. Now, it’s your turn.

Nastiness

2008-12-11T10:59:00.000-08:00

Have you ever had a run in with someone who is just plain nasty? I’m sure that you have at one point or another, especially if you’re in the retail trade. I have two careers going, one in consulting, which is my main focus and passion, and one in high value retail which is fun and challenging and provides additional income.

The other day a colleague of mine, a very low key professional had one of these ‘nasties’ approach him. Here’s the exchange:

Colleague: Hi, I’m Jim. And you are?
Nasty Customer: How much is that item?
Colleague: I’m not sure, I’d be happy to help you and find out.
Nasty Customer: Also, how much is that item over there? (a totally different item)
Colleague: Again, I’m not sure but we can head over there and find out.
Nasty Customer: OK, how about that one over there? (again, a totally different item from the other two)
Colleague: Well, those are all different items. Perhaps I can help you if I can understand what it is you’re trying to accomplish. What or how will you be using these?
Nasty Customer: Let’s get one thing straight. You don’t ask me any friggen questions. You provide the answers when I ask and when I want them. Got it?
Colleague: Well, I was only trying to help.
Nasty Customer: That’s enough. You’re a pain in the ass. I want another sales person to deal with.

Whoa! I couldn’t believe it. My jaw dropped upon hearing this. How would you handle this? I’ll tell you what I think- after all this is my blog and that’s what I do.

Number one, politeness, professionalism and courtesy run both ways. The very first sales course I ever took taught me a lot including the following:

The customer is always right, always.
Not every customer is the right one for you or your company.
You’re not obligated to deal with jerks.
Jerks usually treat everyone the same way- it’s not you.

People who are jerks in the sales process will be major on-going jerks over the long run, giving you the most hassle and nit picking every aspect of the supplier/seller-customer relationship. People who are reasonable, courteous and respectful during the sales process will be better clients over the long run. Notice that I didn’t say that reasonable, courteous and respectful people are wimps or pushovers- they can still be tough negotiators. But at least they are civil to deal with. So, forget about dealing with nasty jerks.

Life is too short. Be polite, excuse yourself out of the relationship, move on, and deal with people who appreciate your products, services and professionalism. Especially during the holidays!

Why do people buy what they buy?

2008-12-02T11:42:00.000-08:00

It’s the holiday season and that’s a natural question. It’s one that can be asked in personal or professional selling and purchasing. My experience is that two factors stand out more than anything else: (1) the emotional connection to the product or service and (2) the emotional connection between buyer and seller. I learned long ago and still believe it fully to this day- all sales (and hence, purchases) are emotional.

In regard to the product or service, people ultimately buy because something will ease their pain, anxieties, concerns, problems, etc. Or, they buy because the purchase will give them a feeling of happiness, joy, contentment, etc. Usually, avoidance of pain is a bigger driver of taking action than pursuing joy.
I’m not a psychologist, but my understanding is that feelings (which we make up) drive emotions which lead to action. If you’re emotionally oriented strongly enough toward something you will take action. Again, pain, or avoidance of pain, is a big driver for taking action, such as buying something.

So, question number one is “Does your product or service address the emotional needs of the person you are trying to sell to? Does it eliminate pain or drive satisfaction and happiness?”

The relationship aspect is also overlooked. People will buy from people they like, trust and respect. That’s not new news but it is amazing to me how many sellers do so little to build a relationship that deeply connects with others in an emotional way. People should feel good about buying from you. They should feel taken care of. I heard something new the other day, from someone who is coaching me: make the other person feel as though they were a very good friend and you are sitting with them in your living room having a warm and personal chat. This is a good image to carry even if you are the one selling in another person’s place of business. It’s all about mindset. Be intentional about building a close relationship.

So, question number two is, “What are you doing, consciously, to build an emotional connection with the people you sell to?”
pete@performabusdev.com

Discovering Your Value

2008-11-12T14:19:00.000-08:00

I’m a mentor and consultant to business owners. So, I use my experience and knowledge to coach and give advice to help the owners move their businesses forward. Part of my business is sales training. In the training I have a number of core beliefs that I impart. Two of these are that every sale is an emotional sale and every product or service is tangible. Even things that we think are intangible can be positioned as tangible. Related to this, every product or service must be seen as having value for the person buying it. In business, that value must have a direct impact on the bottom line. The primary benefits of the product or service either reduce operating costs, grow revenue (sales and other), or improve gross selling margins (sales minus cost of goods sold). There are numerous secondary benefits as well.
Like the people I work with, I also have a few people who mentor/coach me. In my role as a coachee, I’ve been working on defining my own value. What is it that I do, that others can understand easily and get a grasp on? What is it that I really deliver? I’ve discovered that it’s not as easy one thinks to really define this when I myself sometimes think of my services as intangible. It takes work to arrive at a crisp, succinct value proposition.
One coach gave me good advice: ask your clients what value you deliver. Duh…now why didn’t I think of that most basic thing to do? It’s like the cobbler whose children have the worst shoes. They get fixed last because the cobbler is too busy working on other people’s shoes. My business is no different, and yours may be in the same position. So, take time to examine whether this true for you as well.
So, I did what my coach suggested and I got a variety of responses. There were some words and phrases that were similar or aligned but the variety was more than I expected. My wife explained it to me this way- people I work with all get something different from me, based on their own needs. That made sense. It’s often not possible to put everything into one shiny little bucket. A Value Proposition may not really be reflective of one specific thing. Your VP may need to reflect a number of ideas.
For me, I’ve come up with the following value statement: I build business value and I give people more confidence with less pain. That was after sorting out about thirty different words and phrases, and then sifting it all down through many rewrites.
Next, I had to think about what it is that I deliver that is tangible. And what I came up with, again, based on the feedback, was this: I deliver expertise by working (mentoring) with business owners and teams to develop strategy from a different perspective, one that looks beyond their current thought borders. And, I provide an objective business assessment and high level sales systems.
We’re getting near the end of the year. We’re in the beginning of a recession. We face tough times ahead for the next two to three years. You should be planning for 2009. Doesn’t it make sense for you to revisit your Value Proposition? Doesn’t it make sense to check in with your satisfied customers to get their view on your value? I think the answer is obvious.

Topology of knowledge

2008-10-30T12:17:00.001-07:00

I just checked a website and saw a quote stuck in the home page that to me, had no relation to what the website was about, or at least I couldn’t make the connection. It seems everyone these days is using the saying, “You don’t know what you don’t know.” I call this DKDK. I became aware of this term during sales training many years ago and it struck a chord with me as it relates to the psychology of sales. Frankly, I think a lot of people throw this term around without even giving it much thought. “Hey, Charlie, you don’t know what you don’t know. Know what I mean?” Ummm, not really….
I’ll try to put DKDK into context for sales and review the other three quadrants as I know them. By the way, if any of my readers have input for this, let me know. After all, this is about sharing and increasing our collective knowledge!

First, let’s take a look at knowledge- the dictionary definition, culled from Wikipedia:

Knowledge is defined (Oxford English Dictionary) variously as

· expertise, and skills acquired by a person through experience or education;

· the theoretical or practical understanding of a subject,

· what is known in a particular field or in total;

· known facts and information or

· awareness or familiarity gained by experience of a fact or situation.

Philosophical debates in general start with Plato's formulation of knowledge as "justified true belief". There is however no single agreed definition of knowledge presently, nor any prospect of one, and there remain numerous competing theories.

Knowledge acquisition involves complex cognitive processes: perception, learning, communication, association and reasoning. The term knowledge is also used to mean the confident understanding of a subject with the ability to use it for a specific purpose if appropriate.

So, here’s the topology of knowledge, as I’m familiar with it. You:

· KNOW WHAT YOU KNOW(KK): knowledge that you know you have (explicit knowledge- clearly defined, specific). Think of this as your education and experience- formal schooling, books, seminars, training, real life experiences that taught you something or imprinted something significant in your brain. For instance, I know a specific sales process that works, because I’ve studied it and have applied it. I also know how to wash a car. I know how to cook scrambled eggs. I know that I know these things.

· KNOW WHAT YOU DON’T KNOW(KDK): knowledge that you know you don’t have (known gaps). OK, here’s a few good examples for me, and you know you have some too! I know that I don’t know anything about the study of quantum mechanics in physics. I know that I don’t know how to design a 70 story skyscraper that will have at the very least, structural integrity. I also don’t know anything about how to structure complicated financial derivatives…maybe that’s a really good thing in light of the current sub-prime mess!

· DON’T KNOW WHAT YOU KNOW(DKK): knowledge that you don’t know you have (tacit knowledge- implied by or inferred from actions or statements). This is akin to intuition. Sometimes we have a sense or idea about something even though we haven’t studied it. There is knowledge waiting in your head to pop out at a certain time. For example, and this falls along the lines of emotional intelligence, have you ever met someone that you instantly didn’t care for? You just knew the person didn’t match up with your standards. And, over time, you were proven right. That’s because you sensed something based on external factors, your senses, your experiences, etc. Or perhaps, as another example, you’re in a conversation with someone in a totally new subject area. Someone makes a statement and you respond. Your prior experiences and knowledge residing in your brain give you the ability to impart valid opinions and thoughts that can apply and add value to the conversation. You can draw on what’s in your head and make very reasonable and thoughtful comments…”Hey, that’s interesting. I had a situation once in a very different area but some of what I learned could apply here. Think about it this way…”

· DON’T KNOW WHAT YOU DON’T KNOW(DKDK): knowledge that you don’t know that you don’t have (unknown gaps). For sure, I’m unique as a human and so is everyone. Each one of us has had our brains developed over the years and our individual knowledge is just that. Mine is mine. What I think, feel, believe and remember (TFBR) is just me. What you TFBR is just you. And so on for everyone. Do I have a clue as to what a goat herder in Nepal TFBRs? No. I definitely DKDK about that world. I’ve never given it any thought. I’m not even aware of the knowledge that is sitting there. I’m not aware of the knowledge that exists in specific disciplines or cultures. I don’t think about it because I only can relate to what I TFBR.

There’s another way to think about the body of knowledge as related to each of us. Think of a pie-chart circle. Divide it into three sections, with two sections equal in size and the third section bigger…much bigger. The first two sections represent WHAT YOU KNOW and WHAT YOU DON’T KNOW, and together account for about 10% of the pie. The other 90%, the large part, is DON’T KNOW WHAT YOU DON’T KNOW. It’s huge because each of really doesn’t have a clue as to what the collective knowledge of the world is and has been over centuries. We simply cannot fathom it. We can’t even think about it because we’re not aware of it.

So, what might this have to do with sales (or other interactions)? Since everyone is unique and since you don’t have a clue about the total body of knowledge, it makes it absolutely imperative that you practice, what Stephen Covey refers to as Seek First To Understand, Then To Be Understood. Meaning of course, that you need to ask a lot of questions, talk less and show genuine interest in the person you’re with to get to the heart of who they are, what they think and how they see the world. There are roughly five and a half billion people on the planet and each sees the world in their own way. Particularly in sales, it’s not about you. It’s not about all of your cool products and services. People really don’t care what you think. They care about what they care about and they think what they think about (and, they’re not thinking about you). It’s your job to figure out what that is and to see if your offerings fit their needs. You DKDK. The only way you can know is to ask. Ask and ye shall receive.

True Lies Five Myths explained

2008-10-27T20:59:00.000-07:00

Jeanette Nyden, Tracy Corley and I have determined that there are Five Myths that all small companies face when going after business with a large company.

Here they are:

1. The sales process is the same for large accounts as it is for small accounts.

2. I'm an approved supplier, the work will start rolling in.

3. We have an agreement; that means the enterprise and our company see eye-to-eye.

4. The contract is firm and non-negotiable. I’d better be pleased I got it and comply.

5. I’m dealing with a big, solid company. The money will be steady and so will we!

So, let’s take a look at them one by one-

Myth #1 The sales process is the same for large accounts as it is for small accounts.
Pete's thoughts-
Not true. When dealing with larger accounts it is a more complex sale. It is definitely not transactional or simple. There are more people to deal with, more issues to uncover and usually a longer time frame to work through the process. One key to success is in building multiple relationships and alliances within the organization. There are many more decision makers involved. Another key is to do a whole lot more homework to uncover the major, global issues that the corporation is dealing with and to understand the financial goals and strategic imperatives that business owners and CEO's have in place.

Building Relationships Tip: make for yourself a list of at least fifteen people you need to or should know in a large enterprise. Then, make an org chart or map of the organization with notes about how each functional area ties in with, works with or functions. Put a ¶ next to the most important players- the top three decision makers and influencers.
Jeanette's thoughts-
Actually, this couldn't be further from the truth. The entire sales process, from getting your foot in the door, talking to the right people, negotiating different aspects of the deal and finally documenting the deal are all different. Large companies are much more fragmented, process oriented and diversified than are small companies. That is true across the board from retailing to manufacturing.

Myth #2 I'm an approved supplier, the work will start rolling in.
Pete's thoughts-
Again, this is a myth. There is a huge difference between getting approved and actually getting a Purchase Order. Often, the approval process for a large company can take months. And then once you are approved, it can take many months more to get your first order. Why? Well, often you are dealing with two sets of players in the organization. Approvers aren't necessarily the purchasers. And, you have to build credibility (read, relationships) with numerous people in the purchasing arena. They are the ones 'writing the check' so to speak. They have to believe you are worthy of risk.
Jeanette's thoughts-
This again is not necessarily true. There are approved suppliers and sole source suppliers. These distinctions are huge. Some companies ask vendors to apply to become an approved supplier as part of a vetting process. In no way does this mean that they have a project ready for you, or that after the one project they have in mind for you, you will automatically get more projects. Furthermore, companies use the approved supplier process to negotiate terrific pricing structures and impose their terms and conditions upon you, the smaller company. It is worth your while to keep your eye on the terms and conditions of being an approved or preferred provider when going through any approval process.

Myth #3 We have an agreement; that means the enterprise and our company see eye-to-eye.
Pete's thoughts-
In my career, dealing with companies such as Sun Microsystems, Intel, Apple Computer and other large companies, I found that occasionally there were real misunderstandings about the supplier-customer relationship. Just because there was a signed proposal by the customer, a signed contract by the supplier and other letters and emails of ‘understandings’, there was no guarantee that problems could arise from time to time. Sometimes there were verbal agreements or understandings that became the standard or default or expected way of providing additional services. When those weren’t met then there were problems. Whenever you do something outside of the official scope or language of a quote or contact, be sure to cover your bases with a letter or email stating it is a one-time thing or favor, you’re doing it because you’re such a good supplier.
Jeanette's thoughts-
To get technical on you for a moment, what does the word “agreement” mean to you? Is it a blanket purchase order? Is it an email? Is it a formal contract or Master Services Agreement? Reaching an agreement is one step in the process, following the agreement is yet another. I’ve seen clients misstep because they assume that the language of the agreement (in whatever form) that they have with the large company means the same thing to the large company as it does to the small company. Not so. I’ve seen large companies blame smaller vendors for things that were clearly the large company’s fault. Just because there was an agreement in place does not mean that when push comes to shove, you and they will still see eye-to-eye.

Myth #4 The contract is firm and non-negotiable. I’d better be pleased I got it and comply.
Pete's thoughts-
Well, I was always pleased to get it. But, as a Sales Rep, Sales Manager or CEO, I always took the time to read any contract line by line to ensure that the terms and conditions would not be unfavorable to our company so as to cause financial harm. When clauses or words didn’t seem quite right, I took the time to point these out to the purchasing buyer or group and, to ask for a change in language or to strike something altogether. Although I didn’t get everything I wanted every time, I was successful more often than not. And, my asking for changes did not damage the relationship. In fact, many times your customers really do want you to be successful with them and will make changes to ensure that your comfort in the supplier role helps their success. If you’re a really good supplier, why would the customer want to jerk you around too much? Step up and negotiate when it makes sense.
Jeanette's thoughts-
Nonsense. OK. Many of you have heard my rant before. All forms of agreements and relationships are negotiable. In fact, one person will tell you that something is non-negotiable with so-and-so company, but someone else will tell you that they negotiated that provision out of the agreement. I learned a valuable lesson about negotiable provisions just last month. I told a client that I thought the large company’s indemnification provision within a Master Services Agreement was non-negotiable. She told me that no one in her industry has indemnification clauses in this particular type of agreement, and, . . . she was right. She put me straight. Agreements and relationships are all negotiable. It is a matter of knowing what is worth negotiating and what you should just leave alone.

Myth #5 I’m dealing with a big, solid company. The money will be steady and so will we!
Pete's thoughts-
Even before the current economic crisis and the associated major company failures, I can tell you first hand, that there has always been risk in dealing with big companies. As a supplier, you have to be all over the key indicators of your relationship- among others, things like product changeover into new product introductions, inventory turnover, accounts receivable (AR) days outstanding and turnover in personnel. Each one of these areas can impact your ability to collect the cash you’re due and the future relationship. I always paid really close attention to both inventory turns on warehoused product and AR. It’s not just the finished inventory you may be holding for the customer, it’s also the raw materials you have planned to bring in specifically for them. As for AR, often, big companies use their suppliers as a bank and abuse the already generous payment terms they’ve been given. Your business is not a bank- stay on top of the $ and watch the movement of cash. You should have a nice steady payment from the customer within a five day range over a number of months and an attitude of “Pay me first before you pay the other guys.” The squeaky wheel does get oiled.

It’s sad, but too many small companies have been burned by the biggies and been left with inventory that will never be paid for or unpaid invoices. Be on guard.
Jeanette's thoughts-
Lehman Brothers. WaMu. IndyMac Bank. Linens-n-Things. Enough said. Nothing is a sure thing. Cash today is better than the promise of more cash tomorrow.

So, now you’ve gotten a bit of a feel for the five myths, over the past few newsletters. You might recall from a recent newsletter that we had to cancel our November 6^th Full Day Conference. We will be developing the content of the True Lies into a downloadable CD, available for sale on our websites in late 2008 or early 2009. So, look for this in the next few months.

Stand up and get slugged

2008-10-25T16:26:00.000-07:00

One fall evening, right about now in late October, I was in 10th grade and I was out for a walk with one of my buddies. It was a typical teenage deal- ‘let’s get out of the house and roam around because we’re bored’. We weren’t trouble makers. We were just getting out and seeing if we could find anything fun to do or people to hang with. Now, this was an era in which we walked everywhere.

On one street, we came across a couple of young punks who were mouthing off and giving an elderly couple a hard time by swearing at them and throwing things at their porch. I knew one of the kids, and he really wasn’t a bad kid- heck, he’d bought my paper route from me a few years earlier. He was just caught up with the wrong guy that evening.

So, in my infinite wisdom, I stepped in and said that they should knock it off, go on their way and leave the older people alone. Evidently, that wasn’t what the tough punk wanted to hear. Immediately he challenged me to a fight. And when I didn’t take the bait I just stood there. “I’m not going to fight. You can punch me if you want to, but I’m not going to fight”. So, he punched me- a nice looping right hand cold cock to my jaw. It hurt, big time. The punch almost broke my jaw. But I just stood there, with my jaw smarting, staring at him. He challenged me again and I didn’t respond. I didn’t move and I just repeated, “I’m not going fight.” He started swearing at me, called me a few names (chicken, coward, etc.), used some bad language and eventually threw up his hands and walked away.

Frankly, I didn’t fight for two reasons: (1) I knew a fight wouldn’t solve anything (2) to be honest, I sensed that he would clean my clock (turns out, he was one of the toughest wrestlers on our H.S. championship team). Do I feel bad about not taking him on? Not at all. I think I did the right thing in stepping in and getting his attention away from the elderly couple. My being there distracted him from the older people who were relieved of dealing with this punk.

So, what’s my lesson, what did I learn way back when? There is a time to fight and a time not to. In my opinion, the time to fight is when your survival is at stake. Mine wasn’t, just my pride. I think business owners face the same challenge today. The economy is souring, we’re on the edge of a recession (if we’re not already in one) and the forecast is downright scary. What do you do? Fight or get slapped around a bit?

I think this is the time to fight- your survival is at stake. You must be proactive. You must decide to have courage and be the aggressor in your industry. Businesses (people) who get too cautious and too timid lose their edge. You don’t just get down in a bunker and wait it out. You advance. It’s a time to look for new ways of doing things. Seek out others to help you. Put more effort into your marketing and sales strategies and the development of your sales team. Take the time to really cement relationships with key customers and suppliers- they’re in the same boat you are. They can use your support, ideas and help. Put extra effort into building your relationships with your employees. Building trust will pay off with more engagement. More engagement means more collaboration, ideas and unity in fighting through the tough times.

Put your gloves on. It’s time to fight.

Marketing vs. Sales: Are You In Silos?

2008-10-16T14:28:00.000-07:00

Most companies have an ongoing battle between the sales and marketing departments.
Sales reps think the marketing people are out of touch, provide the wrong support materials and don’t have a clue how ‘tough it is' out there. And worse yet, they spend a lot of money and show little return.
Marketing thinks the sales reps are lazy, don’t follow through on all the great sales leads they’re given and when they finally get an appointment they can’t close the deal. And, they think the sales reps are a bunch of overpaid whiners.
Whoa, what is going on here? We have a serious case of two departments operating in silos. The blame of which, of course, lies at the feet of the CEO.
For all the business books, articles and seminars where managers go to ‘get ‘it, it is astounding how many Owners, Presidents, CEO’s, VP’s and other managers don’t. They manage organizations into dysfunction. There is no coordinated and aligned strategy for the company and especially for the critical areas of new customer acquisition, customer retention and customer satisfaction. Among the managers, there is no agreement on how to reach goals. Sometimes, goals get established for the two departments that are in conflict or are unrealistic. Or, worse yet, there are none!
For real progress and real results, the marketing and sales departments need to get on the same page- the page of togetherness, the page of 'Team'. It's one that details specific corporate expectations and common, shared goals. They need to understand the big picture.They need to speak the same language and understand each other roles. Marketing and Sales should have a number of metrics that point toward the same results. Regular and open communication needs to be the practice for key managers.
If you're not doing some or all of this, then right now is a great time to start. Marketing and Sales are the lifeblood of your company. Being effective and working together can only improve your chances of surviving, or better yet, thriving, in today's economy.

King Corn Marketing

2008-10-08T09:01:00.000-07:00

I have a good friend who grew up in the cornfields of Nebraska. Now, when you grow up in the expanses of Nebraska, versus a metropolitan area like Seattle (or San Francisco, New York, Chicago, L.A.), you have other things to do for fun. Most of these things are harmless and simple- what is not to admire about harmless simplicity? Here in the metro regions we get to see too many youth tagging, dealing in or using drugs, stealing/shoplifting, etc. Not that all kids do, but certainly the chances for this happening are quite higher and much more prevalent than in small town America.

My friend tells me of a game they played when he was young. I don’t have the exact game name, but let’s call it King Corn. The game goes something like this (really, I’m not making this up): you and your friends agree on a simple prize for the person who can go into the cornfield and within five minutes find the biggest ear of corn. You only get to pick one ear of corn. It’s an honor system- you can’t be picking ten to fifteen as you go along hoping to come out of the field and toss away the losers. You get to pick just one. After five minutes, someone whistles and everyone comes back out of the field and you see what you’ve got. Sounds easy in some respects, but as with all things there is knowledge and experience, and maybe a little luck, that usually makes someone a winner.

The older payers usually win- that’s the experience. Why? Because, the younger players stay on the outer edges of the cornfield. So what? Well, the outer edges don’t typically get as much water or fertilizer. The best corn, the biggest ears are deep in the middle of the field. The older players know this and venture in deep. They go hard and fast to get there, pick a larger ear and get back out. They know that’s where the best corn is- that’s knowledge.

A few things struck me about this story that relate to marketing and sales-

Shoot for the biggest ear of corn- why should you settle for a small ear? The effort to go after a bigger prospect is roughly the same as with a small one and the rewards are much bigger. In your marketplace, go for as many big ears as possible. Like the old saying, “Go big or go home.”
Know your market- know what makes up the best potential and don’t hang around the edges of a large, wide and diverse market hoping to find the best client. Get more focused and dive deep into the best section of the market. Go right to the heart of the market that fits your business the best and these clients will produce the best return on your investment.
Learn and apply- over time, the younger players in King Corn watch others to see how the game is played. They learn the right techniques, strategies and tactics and then apply them to win later. You can do the same in your business. You’ll rarely get it right the first time, but if you observe the best and then learn from their knowledge and experience you can put yourself in a position to win. Make it a habit to continually learn in your field.
Move fast and make a choice- the world moves quickly and decisions are made much faster today. You can’t dilly-dally around. At some point you have to pick an ear of corn and live with it. When you find an ideal prospect, focus hard on that prospect. Make a decision to do everything you can to make that prospect a customer. Put your maximum effort into acquiring the business.

Think big, pick the right market, know your market characteristics, learn from the best, move fast and make a choice. Do these things, among other actions, and your business will be better off in the long run.