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Posts Tagged ‘sales coaching’

Does Your Hiring Process Resemble a Trip to Lost Wages?

by Charlie Hauck

And I don’t have to tell you why people call that place Lost Wages, do I? I am headed there to present to a group of business owners soon, so the idea of what really goes on in most hiring processes struck as cruel irony. Phrases like Resume Roulette and Credential Craps started coming to mind as I thought about my program. Just because a candidate’s resume looks like he or she is an ace doesn’t guarantee the face card will follow for a winning hand of Black Jack. It is scary to think how often people have said “hit me” only to bust on what looked like a sure winner.

How much does it cost?

When you consider the bottom line impact of a hiring mistake, Lost Wages could not be a more appropriate reference. Some people calculate the cost of a bad hire to be 1.5 times the annual salary of the employee. And depending on the industry, or the level of the position, that figure could be very conservative. Despite hard times, we still hear of companies where turnover is as high as 15% in some areas. That math is staggering when you consider there are enough tools available to minimize hiring mistakes. Why so many business leaders/owners still consider assessments or testing to be an unnecessary expense shocks me.

It’s not real money is it?

The costs of bad hiring practices may not show up on a balance sheet as a line item, and perhaps everyone has just accepted them as just the cost of doing business, but when the impact of not making the right choice is so high, how can companies afford to not do things differently? Upgrading your IT system happens because you found something that is more efficient and can help your profitability. Doesn’t it make sense to upgrade the expectation of what kind of human assets you add to your organization?

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Your Business Development Results Are Only History

02/04/2010 Leave a comment

That’s right. Looking at your results is just a history record of what you have done in the past. It’s a lagging indicator (or rear view mirror) of the sum total of your efforts over the past few weeks and months. Maybe it was prospecting, networking or listening to your past and current clients that got you there. That being the case, is there any way that you can find a forward looking or leading indicator of your future results?

Your Sales Pipeline isn’t the whole answer

You’d be partially right if you thought that your Pipeline is part of the answer. Depending on your qualifying and closing averages, it can give you a good clue as to what to expect in the future. So sure, you can do the same you’ve been doing, and work at it harder, more frequently and with more intensity. Nobody would discourage that behavior, but it takes a lot of time and effort to get the desired incremental returns on that kind of grinding.

The Intangibles

So perhaps a better leading indicator of future results is not always the quantity of effort, but rather the quality of the effort. Can it be that your own personal and professional development could really have the biggest impact on your future results? No doubt that the old adage about working “Smarter” comes into play here. But how do you define it? Is it increasing product knowledge, sales skills or other expertise in your field, or is it more about intangibles like passion, self awareness, emotional control, understanding, insights and perception? Only a consistent program of self development is the way to find the answers that are right for you. How hard would it be to get off the roller coaster a little bit every week to focus on self development as your leading indicator of success?

Many thanks to Daniel Grissom for inspiring the concept about the Leading Indicator.

What does the North Star have to do with Business?

01/27/2010 Leave a comment

I know where the North Star is with 100% certainty. It’s like death and taxes. Unless someone moved it, or everything written about astronomy over the last few hundred years is just a big hoax, it’s usually pretty easy to find if you know where to look. Sometimes when the conversation comes up with others, and I show them where it is, I’ll get a reaction like this … “No, that’s not it. It’s not the brightest. That’s not North”, or some other reason for them to dispute the reality. Although they obviously don’t know where it is, they are almost certain of where it isn’t.

What’s the point Smarty Pants?

So when we recommend to managers that are selecting sales people to use an assessment before making a hiring decision, we sometimes get a similar reaction like this …  “No, they don’t work. I don’t want to spend the money. I’ve done it before. I can trust my gut. But we know him or her.” … and all the other reasons.

OK, I’m alright with skepticism up to the point where it doesn’t fly in the face of the truth or the proof. The stats for our assessments are this: When you follow the recommendation to Hire, there is a 94% chance of success. When you ignore the recommendation Not to Hire, your chances of success go down to 25%. Those stats are based on hundreds of thousands of real life data points and have been back tested to confirm the validity. No doubt that 94% isn’t as sure as 100%, but it’s pretty darned good when it comes to understanding the future potential and production of a very important and expensive asset.

Is it really that simple?

No it is not that simple, so don’t believe it when you hear it. Nothing is that simple anymore. Using an assessment is just a part of a process. First, it has to be the right assessment. Too many products out there are marketed to have the same effectiveness, but the truth is that they do not have the same predictive validity. Secondly, potentially good sales folks can easily be de-railed by a weak on-boarding plan, mis-alignment of sales management, insufficient coaching, poor fit with the work environment or many other parts of the process. Being blind to these others factors is probably the reason that those who have used an assessment in the past no longer believe in their usefulness.

Next time you get ready to put on a new sales rep, can you please ask yourself how certain you are of the parts of your process?

Ice Cream for Breakfast?

01/20/2010 4 comments

The feeling of being denied the freedom to make your own decision is one of the worst feelings in the world. I don’t know too many people beyond the age of two that would argue with that statement. If I decide to go out and ride my bike, eat lunch at 1:30, have ice cream for breakfast or stay up until 3:00 AM, well, that is my choice thank you. So why should I change my mind if that is really what I want to do?

I’ll just sit here while you try to convince me

So when did it become fashionable to deny a prospect the choice to hear a pitch, stay with a current vendor or take advantage of special pricing from a competitor?  Is it that everyone we approach must be stupid or making a mistake if they don’t buy from us? Or is it just possible that we aren’t right for everyone? The tried and true process of spouting features and benefits is a tad “seller-centric”. .. meaning that those “can’t miss” benefits should work for everyone because that’s what the sales person is telling you. Just because you offer a car with fold down seats does that mean I should be thrilled even though I have no need for that particular feature that is so desired by someone else?


Just trust me, please

Someone once told me that feature and benefit selling amounted to “positive performance before trust” when used to fuel the sales process. I didn’t quite grasp that idea until I found myself as the prospect a few times. You could almost feel the salesperson telling me to just go ahead and trust him. And the funny thing was that the more he told me about this feature and that benefit that made no difference to me, the harder it was to believe I should grant him any trust at all.

So in an effort to find a more nurturing way to sell I began using a permission based sales approach that embraced the fact that either party could say NO, that allowed both salesperson and prospect to feel in control, and that used question marks instead of exclamation points or periods to drive the process forward. Wouldn’t we all like to work in an environment that felt that comfortable?

Defending Your Life

01/12/2010 5 comments

Everyone knows about fear. Because the word itself has some negative connotations, some prefer to call it anxiety, apprehension, discomfort, dread or trepidation in order to make the emotions more manageable. What started out as instinctual or subconscious “fight or flight” syndrome in early creatures, this is an emotion that is so vast in its cause and effects, that it is impossible to know where it starts and ends.

The topic has no shortage of discussion when it comes to personal and professional behavior. So many ideas about how to deal with it, deny it, understand it, embrace it or fight it are commonplace, but often provide little relief. We all know what the various forms feel like, but does that help anyone understand how it really affects our performance in any of the many roles we all have to fill every day and week?

Different Angles for Business

One of the most popular approaches in the business world are the concepts presented in the book “Who Moved My Cheese” when Haw asked himself “What would you do if you weren’t afraid?”. Only when Haw began to understand the implications of the answer was he able to mobilize himself and realize his potential for action.

If the book is good, is the movie better?

Perhaps a different approach gives another perspective. In the movie “Defending Your Life”, Albert Brooks has recently died in a head-on crash, and has been sent to an afterlife (Judgment City) where he must demonstrate how he has overcome his fears  in a court that will decide if he is now worthy of advancement in the Universe or not. In this clip, his Defense Attorney explains the Big Picture about fear.

Watch the clip and then ask yourself:

What should I start doing different right now?

Passion for selling … a blessing or a curse?

10/27/2009 2 comments

Curse #1

What leaves a bad impression more than encountering a salesperson that is just going through the motions? The smell of the of lack of interest and commitment seems to linger after these folks have dropped off their literature, business card and limp hand shake. The sad part is realizing that you lost interest almost immediately in what they saying and found yourself feeling sorry for these miscast pretenders. You may want to tell them that if they could just show a little emotion they might actually sell something someday.

Curse #2

On the other hand, there are the salespeople that love selling so much it scares prospects away. They love the company, the product, the marketplace (and probably you too) by the end of a call. When they leave, you can find yourself shaking your hand to make sure the gooeyness of the hand shake is gone. The passion these people have overwhelms your interest in what they offer, and you can’t help but wonder what all that emotion may be hiding. If something sounds too good to be true, well you know the rest.

The Blessing

Somewhere in between are sales pros that love to sell, but still remember that the customer is more important than their emotions. You can sense a balance that looks and sounds like confidence in what they are doing, a confidence to succeed with or without you as a customer. There is a genuine interest in helping you find solutions, but not in making a commission if the sale isn’t in your best interest. In short, these people act and carry themselves as winners. Aren’t things more comfortable when you get to interact with these kinds of people as opposed to the ones that can’t even muster the strength to quit a job they hate, or the ones that can’t quit selling so hard you want to run away?