Sales managers set the example

April 9, 2013 By

Why is it that the general counsel of a company is always a lawyer and the head of engineering is always an engineer, yet the top sales manager isn’t always a sales person? Sales is the engine that drives a company. No sales = no company.

Photo Source: Success.com

Photo Source: Success.com

I recently discussed this quandary with my friend Tom Hopkins, who is a sales management rock star. More than four million people have attended Tom’s lively sales seminars. He leads 30 seminars each year throughout the United States and many foreign countries. More than 35,000 corporations and millions of professional salespeople use his sales training materials daily. He’s also the author of 17 books, including the sales classic, “How to Master the Art of Selling.”

Tom hit hard on these areas of improvement for sales managers:

Preplan sales meetings. Too many sales managers just show up and go through the motions. Tom led the country’s top Coldwell Banker real estate office, and he constantly had an agenda to pass out so sales reps knew exactly what would be covered. He always had some exciting new things because “You have to really sell salespeople on selling each and every meeting.”

Catch people doing something right and praise them. At every sales meeting Tom recognized people who were doing something right. He would try to praise 25 percent of the attendees at every meeting.

Serve as a role model. “Sales managers need to be a shining example of what they want their salespeople to be like,” Tom said. “They need to be truly respected as human beings – the way they live, their honesty, integrity and work ethic. Sales managers need to work harder on themselves than they do on the job of management to become the type of person that their salespeople want to become.”

Emphasize time management. Tom said: “Sales managers need to work harder on time planning and organization than most people do. We all have 86,400 seconds in a day. No one has any more or any less. The most successful sales managers are eloquent time planners.”

Strive to motivate and train people. Tom told me that the biggest mistake sales managers make is to not get their sales people productive fast enough. He stressed the need for up-to-date training and having a top-notch library in the office.

For example, Tom said when he was in management, he would give a favorite sales book to each new hire with a two-week assignment to highlight the best ideas on each page. On the last page he wrote that he would treat the person to a nice lunch. Then after two weeks, he would call them into his office and ask if they finished the book. If they said, “Oh, yeah. I finished it all,” and they didn’t mention the lunch, then Tom knew his new hire had a character flaw.

I also use books for training, asking reps to share their insights with the rest of the staff. And when we send our sales people to conventions, their assignment is to come back and teach everyone about the concepts at our next sales meeting.

Fire unproductive sales reps. “A good sales manager can’t be afraid to change their people if they can’t change their people,” Tom said. “If you can’t change a person after a 90-day period to where they get their attitude back and are productive, then you have to make a change. Too many sales managers just don’t want to rock the boat.”

I always say, it’s not the people you fire who make your life miserable; it’s the people you don’t fire who make your life miserable.

Tom added: “If you are not periodically bringing in good, highly enthusiastic new people as needed, your office will plateau as to productivity, which is not what any company wants.”

Be proactive. Tom told me that following a recession, too many companies wait until things are much better before they really get active and go out and take advantage of the market. The top companies start gearing up their sales activities before the cycle turns, so they’re ahead of the competition.
Tom said: “When the economy is coming back, the story sales people should be telling their customers is that all indicators by major economists are showing that your market is not only picking up, but it’s getting hot. And we want your company to be ahead of your competition.”

Mackay’s Moral: A great sales manager sells his staff on the importance of managing their sales skills.

 

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The art of the apology

April 1, 2013 By

apologyHave you heard the story of the colossal customer-service bungle over the “bedbug letter”?

A guest in a hotel finds himself attacked by bedbugs during his stay. He writes an angry letter to the president of the hotel company. Within days, the president sends the guest a heartfelt apology, which reads, in part: “I can assure you that such an event has never occurred before in our hotel. I promise you it will never happen again.”

Sounds good, except for one small detail: Included with the apology is the guest’s original letter. Scrawled across the top is the message: “Send this idiot the bedbug letter.”

So it begs the question, who is sorry now?

There are several lessons to be learned from this tale:

• Remedial customer service may start with an apology.

• Never, ever mess up an apology.

• The apology is almost always the start, not the end, of finishing things.

• If you think being sorry solves a problem, you will really be sorry.

• Finally, the cost of the fix is nearly always greater than doing things right the first time.

Start with the premise that everyone makes mistakes. It’s human nature. What happens next is what demonstrates the true level of regret. The hotel president likely lost that customer forever. Unfortunately, it doesn’t stop there. That customer tells anyone who will listen about his experiences — both with the bugs and the insulting letter. Reputations are ruined in an instant.

Businesses long have understood that bad customer experiences will be reported to family and friends nine times more than good experiences. Misery loves company, I guess.

Even the most sincere apology has limited effect. But if it helps a little, it’s worth the effort. So don’t blow what could be your only opportunity.

We see an apology from some thoughtless public figure every week: “If I offended anyone, I apologize.” “My words were taken out of context.” “I didn’t realize that my actions would cause such a stir.” All pretty pathetic attempts at sounding sorry, in my opinion.

Train your brain to think before you speak, act or tweet. Self-restraint is not old-fashioned. Remember that your private conversations or anonymous postings may be anything but private and anonymous.

The apology is just the beginning. It is critical to get it right. So take steps to be sure you don’t disappoint a second time. The shallow “if I offended anyone” indicates that you are only sorry because you were forced into the apology. I’m curious, does anyone take those kinds of apologies seriously?

In business situations, apologies are generally related to poor service or defective products or missed deadlines. Those apologies must go beyond words.

First, admit your mistake. Don’t gloss over the error or the effect it had on your customer. Get to the point and own the situation. You will not win the blame game.

Next, offer a solution that will demonstrate your sincere desire to make things right. Even if the customer had some responsibility, the cost of fixing one mistake is much lower than trying to repair a reputation.

Third, express your intention to make sure the same mistake never happens again. Offer the customer an opportunity to make suggestions, and be prepared to deal with critical feedback.

Finally, learn from the experience and use the lesson to train your staff.

Mackay’s Moral: Saying you’re sorry and showing you’re sorry are not the same thing.

 

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We can learn a lot from the Easter Bunny

March 28, 2013 By

easter bunnyWhat’s not to love about a cheerful fellow who arrives with chocolate heralding the arrival of spring after a long cold winter?  Whether or not you celebrate Easter, there is some fundamental wisdom that everyone can learn from the Easter Bunny.

Much like the leadership lessons from Santa Claus that I wrote about a few years ago, these iconic characters espouse many of the values and virtues so many of us share.  And although they are associated with religious holidays, their messages cross multiple faiths.

A friend sent a list of lessons we might take away from the floppy-eared critter.  I’m not sure where they originated, and my research only attributes them to “anonymous.”  I’ve plucked a few from the long list she sent, added a few of my own, and expanded on all the ideas.

Don’t put all your eggs in one basket.  Only an extreme risk-taker bets the farm.  Develop your talents and skill set so that you are able to adapt.  Companies value employees who are flexible and versatile.  Even specialists need a broad view to understand how their abilities can best contribute to the organization.

Everyone needs a friend who is all ears.  The Easter Bunny knows that we can’t go it alone.  We all need a sounding board, preferably one or more who will listen to our worries, concerns and crazy schemes and give good unfiltered feedback.  And even if they don’t offer any advice at all, sometimes hearing your thoughts out loud helps you sort them out better.

There’s no such thing as too much candy.  Don’t take that too literally.  I interpret it to mean you can never have too much joy and happiness in your life.  I recommend celebrating everything from a great round of golf to a lucrative business deal.  Looking on the bright side doesn’t have a dark side.  A positive attitude is better for you than sugar – and not as fattening and better for your health!

All work and no play can make you a basket case.  Take time to smell the roses – or the lilies, as the season dictates.  Balance between work and play improves both.  Your job performance will suffer if you never step away and breathe some fresh air.  I’ve gotten some of my best ideas when I’m out for a run, and even figured out some of the mysteries of the universe along the way. 

The grass is always greener in someone else’s basket.  Don’t be too eager to give up because you think you are at a disadvantage.  For example, when I first started in business, I thought that when I became successful, I could finally coast along much like the hare in Aesop’s fable “The Hare and the Tortoise.”  I soon discovered that the road to success is not a finite journey – but a trip I still look forward to continuing every day.  Along the way I learned that the grass is as green as I make it.

To show your true colors, you have to come out of the shell.  Have a hidden talent?  To borrow a phrase, don’t hide your light under an Easter basket.  From the help-desk techie who organizes a company softball team to the factory worker who devises a money-saving process, speak up if you have an idea that could make your company work better.

Variety is the spice of life.  Some folks like coconut eggs, others prefer Peeps.  Check out the candy aisle at the store and try to pick a favorite – that’s what makes Easter baskets interesting.  Try something new every now and then just to keep things fresh.

Do the bunny hop.  The Easter Bunny knows the importance of exercise, especially aerobic activity.  Get moving and you won’t have to worry about having some jelly beans every now and then.

You don’t have to be big and scary to be effective.  Is anyone afraid of the Easter Bunny?  He/she is a lovable creature that is universally welcomed.  Sometimes a soft approach is most appropriate.

The best things in life are still sweet and gooey.  Success is sweet.  Life is sweet. Helping others is sweet.  Cherish the opportunities you have to enrich your life.  And you don’t need the Easter Bunny to help you appreciate that.

 

Mackay’s Moral:  Let positive thoughts multiply like rabbits.

 

 

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Create a service culture

March 21, 2013 By

When I went into business many years ago, I told people I owned an envelope company.  I had business cards printed that identified me as an “envelope salesman.”  I described myself as an entrepreneur.

All of those facts are still true, but incomplete.  What I and our company really do is provide customer service.

Well sure, Harvey, you say.  But isn’t that just a part of the whole operation?

Absolutely, positively, irrefutably, NO.  I am in the service business, regardless of the product I make and sell.  If my service is lacking, my business will be sent packing.

To validate my thinking, I recently visited with John Tschohl, president of the Service Quality Institute.  John has spent 33 years focused on customer service.  He has written hundreds of articles, as well as seven books on the topic.  You’ve probably heard him interviewed on television or radio.  He has been called the “guru of customer service” by USA Today, Time and Entrepreneur magazines.

Even the most successful companies are in constant competition for business.  What sets them apart often boils down to one factor:  outstanding customer service.  John offered up some stellar advice for creating a service culture, no matter what business you’re in.

First, you’ve got to understand you’re in the service business.  “Most companies think they are in manufacturing and retail; airlines don’t know they are in the service business,” he said.  “Southwest Airlines is successful because they understand they’re a customer service company – they just happen to be an airline.”

Second, you have to look at all the policies, procedures and systems that you’ve got in place “that make life miserable for customers.  You could have the nicest people in the world, but you could have stupid hours, stupid rules, stupid procedures, that just burn the customer.”   When you make it that difficult for customers to patronize you, they find someone else who is more accommodating.

Third, you have to have empowerment.  “Every single person has to be able to make fast and power decisions on the spot, and it better be in favor of the customer,” John said.

Fourth, you have to be more careful about whom you hire.  “The service leaders hire one person out of 50 interviewed, sometimes one out of 100, but they’re very, very, very careful,” he said.   “Look for the cream, the A players, instead of bringing on B and C players.”

customer service cultureFifth, educate and train the entire staff on the art of customer service with something new and fresh every four to six months.  “Let’s say you want to create the service culture.  No matter if you have a hundred or a thousand or a hundred thousand employees, you better have something new and fresh, so it’s constantly in front of them,” John said.  “So when they wake up every day, and they go to work, they say, ‘Fantastic, I’m taking care of customers!’”

Finally, measure the results financially so that you know the impact it’s making on revenue, sales, profit and market share.

Everything you do, according to John, should be built around the concept of creating an incredible customer experience.  He cites Amazon as one of his favorite role models.  “At Amazon, they’ve got technology, speed, price.  They’ve got everything.  If I’m on their website and I want them to call me, they’re going to call me back in one second.  That’s speed.  When you place an order, you can do it 24 hours a day, seven days a week.  And 60 seconds later, you get a confirmation.”

I realize Amazon is in a class by itself, and most businesses aren’t ever going to achieve the growth or profits of that gargantuan company.  But John’s advice can be translated to companies of any size.  A one-person shop can provide great service because they often have personal contact with their customers.  Bigger companies have more resources available, which should enhance the service experience.

Perhaps the simplest way of creating a service culture is a variation of the golden rule:  Treat your customers as you wish to be treated.

Make your customers excited that you’re in business.  Make them grateful that they have the opportunity to buy your services or products.  Make them feel like they are your most important client.  Make your service so outstanding that they wouldn’t think of doing business with anyone else.

And then find a way to make your service even better!

 

Mackay’s Moral:  Customer service is not a department, it’s everyone’s job.

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Ben Affleck’s Academy Award business lessons

March 14, 2013 By

Watching the Academy Awards is like the Super Bowl for me.  I never miss them.  And that’s not just because I have a son who is a film director in Hollywood.  I just love to go to the movies.

From a business standpoint, the three most important lessons that were presented at this year’s Oscars

Ben Affleck

Photo Credit: Us Magazine

were delivered by one individual — Ben Affleck.  Make that four, because he also talked about how you have to continue to work at having a strong marriage.  Fortunately that’s how I feel about my marriage too, so I can second his opinion.

Affleck offered life lessons, to be sure, but every business can benefit from them as well.

This also goes for business partnerships.  They take work to keep them thriving.  You can’t just go through the motions and assume that everything will be okay. 

The next great business lesson that Ben Affleck touched on was the importance of mentoring and developing a network.  You might recall he said, “I never thought I would be back here, but I am because of so many wonderful people who extended themselves to me, who had nothing to benefit from it.”

Affleck was referring to winning his first Academy Award in 1997 for Best Original Screenplay for “Good Will Hunting,” which he shared with Matt Damon.  Over the years he has reached out to a lot of people in Hollywood to help him learn the movie business and advance his career.  Members of the Academy were able and willing to help him, even though he wasn’t necessarily in a position to reciprocate.

I call that reciprocity without keeping score.  Simply stated, it means what can I do for you without expecting anything in return?  No quid pro quo.  If you live your life this way, two magical things will happen:

  1. Over time, people will find ways to do remarkable and unexpected things for you that make your life easier.
  2. When you’re knocked down for some reason, you are likely to find the most astonishing human network of support you could ever imagine.

Affleck’s next business lesson was that, “You have to work harder than you think you possibly can.”  Success comes before work only in the dictionary.  Hard work is not a bad thing.  Sure, natural talent can make a big difference, but you still have to work hard at your craft.

Show me a .300 hitter in Major League Baseball, and I’ll show you someone who bangs the ball until their hands bleed trying to keep their swing honed.  Ask any surgeon about how much sleep they got for the eight to 10 years it took them to get through medical school, internship and residency.  Both these gigs take more than magic hands.  They take lots of hard, hard work.

The next Affleck lesson was, “You can’t hold grudges.”  Carrying grudges can be a heavy load.  Just the thought of past pain pulls your energy down.  Forgiveness is how you free yourself.  You release your anger.  You move forward.  And you lighten up.

You will never get ahead of anyone as long as you are trying to get even with them.  Even if you do get even with someone, you have put yourself on their level.

Affleck closed his Academy Award acceptance speech with his final business lesson – and possibly the most important – when he said, “It doesn’t matter how you get knocked down in life because that’s going to happen.  All that matters is that you gotta get up.”

Trying times are no time to quit trying.  The line between failure and success is so fine that we scarcely know when we pass it; so fine that we are often on the line and do not know it.  How many people have thrown up their hands at a time when a little more effort, a little more patience would have achieved success?

In business, prospects may seem darkest when really they are about to turn.  A little more perseverance, a little more effort, and what seemed a hopeless failure may turn into a glorious success – like Ben Affleck’s Oscar winning Best Picture “Argo.”   It is perhaps more than a coincidence that the storyline for “Argo” also echoed many of these lessons.  If you haven’t seen this film, treat yourself to this deserving winner.

 

Mackay’s Moral:  Failure is not falling down but staying down.

 

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