Portland’s Whuffie Trail Blazers

If you’re checking this article to see what I’m implying about Portland’s NBA team, the Trail Blazers, you’re going to be disappointed. This isn’t about basketball; it’s about a remarkable quality I’ve discovered in the Portland (PDX) business culture. It falls under a category trend setters in New Media Marketing are calling Whuffie. With the “remarkable quality” I mentioned, PDX has become quite a trend setter, itself, with Whuffie – i.e., Whuffie Trail Blazers.

Before going on, for those of you who’ve never heard of Whuffie (I heard it for the first time, myself, just over two weeks ago, through my friend, Janet Lee Johnson), let me tell you what it is, if I haven’t lost you already. In short, Whuffie is sort of the net worth a person or group builds up in Social Capital. The word “Whuffie” actually comes from a Sci-Fi book entitled “Down and Out in the Magic Kingdom”, by Cory Doctorow. Credit for the application of the word “Whuffie” to Social Capital seems to go to Tara Hunt, the Author of a book entitled “The Whuffie Factor”. For a more in depth understanding of Whuffie, check out Tara’s blog post entitled “You can’t eat Whuffie (but it’s getting harder to eat without it)”.

With all that said, my purpose with this article isn’t to educate you about Whuffie. It’s to give PDX kudos for its “Whuffie Factor” and to encourage Sales people and Sales organizations to be mindful of building their net worth in this regard.

First, let me tell you a bit about my discovery of PDX’s “Whuffie Factor”. When we relocated to PDX, from Southern California, four years ago, I discovered several traits of the PDX business community and its culture, that were different than I had anticipated. One of these aspects was the PDX employment base. It wasn’t as strong as I had expected and of course, as the once bustling streets of downtown PDX have taken on more of a look of a ghost town, that’s become an even more significant factor.

However, the most significant difference I found in the PDX marketplace, versus what I had expected, was the importance of a good network of local business contacts. I started coming into PDX on business in the mid 1980s and I thought I had an understanding of the business community when we decided to move here. I discovered that I was wrong and that having a good network of local business contacts was critical. At first, I was a bit anxious about recognizing my lack in this regard. In addition to surprises in the business community, I was also taken aback by realities I found in PDX in general that didn’t match up well with several of my most important personal beliefs. Especially since I’m pretty transparent about my beliefs, I was concerned that the business community might spurn me and keep me from building the needed network of business connections. I’m thankful to say that I was wrong about that too. It’s not uncommon to hear the PDX marketplace described as being provincial. That’s true to some degree but mostly it’s true with the positive characteristics of “provincial”. If you’re willing to be a member of the PDX business community who looks out for its other members and the health of the business community in general, PDX will not only welcome you as a member, it will help you to become one. In general, that is the “Whuffie Factor” I discovered in PDX.

The specifics Tara Hunt uses to define Whuffie include:

• Do well by doing good.
• Think Customer-centrically.
• Help others go further.
• Spread love.
• Value something bigger.

That sounds significantly different from the clichéd business/Sales model of WIIFM (What’s In It For Me), doesn’t it? At first, I thought that Whuffie might be WIIFM’s selfless, diametric opposite. But, though it is somewhat opposite, it isn’t selfless. In fact I think it’s fair to say that Whuffie turns out to be an extension of WIIFM, with Whuffie as a vehicle for securing WIIFM. But, if I’m right, it at least gets you out of the mode of exclusively considering WIIFM by first getting you involved in WIIFO (What’s In It For Others). Regardless of what you call it and I’m fine with calling it Whuffie, I’m thankful for it. It’s the common ground PDX made available for me to connect and become a part.

So, hats off to PDX for nurturing this remarkable quality. I’ve been a part of two other major business communities and I’ve had the opportunity to observe countless business communities throughout the northern hemisphere. In this regard, PDX stands head and shoulders above any other marketplace I’ve known. I’m pleased, then, to be a part of it and to proudly say, “I am one of Portland’s Whuffie Trail Blazers.”

With that in mind, I want to close by encouraging you to be mindful of Whuffie for yourself, as a Sales person and for your Sales organization. Tara Hunt says that with Whuffie, “The more you give away, the more you get.” I can’t think of a better attitude for you to take in engaging with your business community.

“FIREPROOF” Business Partners

Last year, in my personal blog (A Few Days With Figgins), I posted an article about a movie called “FIREPROOF”. As I said in that article, “Just from the movie’s logo, the word ‘FIREPROOF’ with the ‘OO’ represented by interlocking wedding rings, you quickly get a sense of what the movie is about.” Since my Wife, Ruth and I head up our church’s Married Couples Fellowship, we welcome seeing a movie that encourages married couples to tend to their marriage. Of course, techniques that are healthy for marriages are often wise additions to other sorts of relationships. As the U.S. economy has been going through its current “trial by fire”, I’ve been reminded of the importance of having “FIREPROOF” business relationships.

Most Sales people become adept at communicating WIIFM (What’s In It For Me) messages to their Prospects. Typically these are FABs (Features, Advantages and Benefits) … things like “A 3.2 GHz processor”, “50% faster than your current PC” and “You’ll be able to do the same amount of work in half the time”. But, how many Sales people fully address what to expect when there are problems? Of course, after-Sales service, warranties, etc. are commonly detailed. How often, though, do you hear a Sales person say something like, “You know, we have a great (company, product, service, etc.) but we’re not perfect and there will be problems. An important consideration for you is, when problems come up, have you chosen a business-partner you can count on? I want you to know, when problems occur, you can count on me to be there, shoulder-to-shoulder with you.” Especially in the current “trial by fire” economy, its important to set your offering apart in as many meaningful ways as possible and setting yourself apart in this way may make the difference in whether you get business or it goes to your competitor.

This is, also, an important consideration in hiring. As a Sales Manager, there are numerous qualities to consider, in selecting the right Sales people for your team. However, no matter how good your selection is, the person you select won’t be joining a perfect (company, Sales team, Sales Manager, etc.). What can you expect from them when problems arise? Although the commitment to an employer/employee relationship isn’t the same as the Husband/Wife commitment to marriage, its important to know if you’re hiring someone who will stick with you “through thick and through thin”. Likewise, when you, as a Sales person, are considering a new employer, you should give this aspect some thought.

The movie “FIREPROOF” uses the metaphor of a company of Fire Fighters and their motto, “Never Leave Your Partner Behind”, to exemplify a necessary attitude for a successful marriage. With that said, I think its fair to say, there’s no such thing as a “FIREPROOF” marriage. There will be fires and some burning will take place. However, if Husband and Wife are fully committed to “Never Leave (Their) Partner Behind”, the marriage won’t “go down in flames”. Especially in the current “trial by fire” economic times, it seems important to strive for this sense of “FIREPROOF” in business relationships too.

What are your thoughts on this? Do you agree? What are your favorite stories, along these lines, that you’d like to share?! Please let us know so it can be shared with others.

The “Perfect Time” For Sales Training

Recently, I read an article on SalesBlogcast.com entitled “Making Time for Business Improvement and Staff Development“. The key points of this are:

• It seems that there’s never a “good time” for a company to invest its resources in business improvement and staff development.
• When business is good, companies feel secure and they don’t want to divert resources from processing as much business as possible.
• When business is down; there are RIFs, along with cuts in travel and training budgets – i.e., the resources companies don’t want to divert when business is good are now reduced.
• In order for a business to remain viable, investing in business improvement is a must, whether or not it seems like a “good time” for it.

This was reminiscent of an article I posted last year entitled “Growing Sales In A Down Economy“. Similar to the SalesBlogcast.com article, I point out that, though it can seem almost instinctive to restrict investment when the economy is down, some resources (e.g., time) are actually more available than they are during an economic boom. So, investing what you can now is wise. In doing so, you’ll be better prepared to maximize the benefits of the economy turning up again.

Recently, I took on the Director of Sales role for a leading developer of e-Learning based business solutions, headquartered in Portland, OR. So, in that capacity, you might expect my position to be that any time is a “good time” for a company to invest in education aimed at business improvement. You’d be right. In addition to my admitted bias, I’m getting a much closer look at the issues illuminated by the aforementioned SalesBlogcast.com article and on a daily basis, I’m seeing them clearly demonstrated in reality. This includes:

• Companies wanting to nurture their workforce to be as competitive as possible.
• Companies wanting to nurture their customer base to stimulate buying and to minimize support costs.
• Much of the above-mentioned “nurturing” requires education and many companies are faced with getting this job done with fewer resources.

The admonition on this from the SalesBlogcast.com article is “Pay me now or pay me later”. I won’t argue with that wisdom. However, I think the example I used in my previous article provides more encouraging positive reinforcement so I’ll repeat that here:

So what is a more effective approach during these tough times for business? I think the best answer to this was summed up in a conversation I had with our mortgage lender, when I ran into her at a recent business meeting in our community. Of course, her industry has probably been hit as hard as any business sector, in the current economy. So, I asked her how business was going. Her response was that she’s in this for the long-term. There are peaks and there are valleys. During the last peak, she did what she knew was necessary to prepare for the next valley. And, now that she’s in that valley, she’s tending to things she didn’t have time for during the last peak and she’s doing this so she can maximize the benefits of the next peak.

So, what are your views on this topic? Whether or not you agree with my perspective, I welcome you sharing your experience.

Sales Pay Plans Written By Non-Sales People

It’s not uncommon for Clients to ask me to review their Sales Pay Plans. Often, this involves making changes and additions to what’s already written, to make it an effective and productive program for everyone involved. Nearly as frequently, though, this requires me to write whole new sections that are just plain missing. Thankfully, it’s a rare occasion for me to come across a section of a pay plan that needs to be excised completely. That did happen recently, however, when I came across a clause in a Client’s pay plan entitled “Windfall Business”. Here’s how that clause read:

“To provide for those unusual occasions when business achievement is realized through little or no effort on the part of a Participant, the Company reserves the right to declare such business a ‘windfall’. Windfall business is subjected to special treatment. Such treatment will be handled at the sole discretion of the Plan Administrator.”

I’m thankful that, when I first read this clause, I wasn’t in the presence of the Client. No doubt, my reaction was visible and it probably wouldn’t have been good for our relationship for them to see that. At first, I wondered what could have motivated such a position. Then, I wondered how my Client could have permitted it to be embedded in their pay plan. Finally, I decided that neither of those considerations should be my immediate concern. I had been introduced to this Client under the auspices that “they need a guy like (me) to turn their Sales around.” So, regardless of the answers to my “what & how” questions, I knew that their “Windfall Business” clause was a counterproductive element for Sales. They needed to understand that clearly and immediately. Here’s how I went about getting that done:

I, simply, shared with them some of my background in helping to develop Sales People. What I told them was: ”I’ve had occasions where, fairly early on in their efforts, new Sales People would have a stroke of good luck and close some significant business more quickly than they expected. In these cases, it wasn’t uncommon for the Sales Person involved to express some guilt, that they hadn’t really earned the sale. My consistent response in these instances was to tell that person that all Sales People get their share of luck … some of its good and some of its bad. You’re going to get your share of bad luck so, when you get some good luck, enjoy it and don’t feel guilty.” That was really all it took. From that, my Client recognized that their “Windfall Business” clause allowed Sales people to keep their bad luck but they didn’t necessarily get to keep their good luck. They agreed to remove the “Windfall Business” clause from their pay plan.

You may be interested to know that, in discussing this matter with my Client, I did learn the answers to my “what & how” questions. The answer to ”What could have motivated such a position?” was that it was a clause developed by an HR Consultant. The answer to “How my Client could have permitted it to be embedded in their pay plan?” was that they’d payed the HR Consultant for their advice and the Client felt they should follow the advice they’d paid for. In both cases, it’s an indication that both the HR Consultant and the Client don’t “get it” when it comes to what I called the “legitimacy to the Sales function in business”, in an earlier article entitled “The Pride and Prejudice of Sales“. And, I have to admit, with something like this; it may require a person who has Sales experience to “get it”. To many, who don’t have Sales experience, it may even seem to have a certain logic to it. And, that’s why I think my Client’s erstwhile “Windfall Business” clause is a great example for my point in this article:

In order to establish a Sales Pay Plan that’s effective and productive for everyone involved, don’t have it written by Non-Sales People!

What’s your experience been with Sales Pay Plans along these lines? Do you have other good examples to share? Do you agree with my perspective on the “Windfall Business” clause? Please let us hear from you, to benefit others through the experience you’ve gained!

Selling and Business Humor

On two occasions in the past few months, I’ve had the pleasure of attending meetings of the Executive Officers Club, at Portland’s Multnomah Athletic Club. There were numerous positive experiences associated with these events, that merit comment. However, the most notable experience, as it relates to this blog, came from The Keynote Speaker for the most recent meeting I attended. His name was Tim Gard and his topic was “Business Humor”. Before sharing my views on the noteworthiness of Mr. Gard and his presentation, relative to the SOL&D blog, let me tell you a bit about Tim and his perspective on “Business Humor”.

Tim Gard is a CSP (Certified Speaking Professional) who focuses on dealing with stressful circumstances in business, through humor. Most prominent in the multiple methods and techniques that Tim employs is his utilization of props. As an example, Tim has a nicely printed and bound booklet entitled “My Official Policy Manual”, that he carries with him. When he finds himself in a circumstance such as having a Flight Attendant tell him that “Its against the policy of the airline to upgrade a Coach Seat to First Class”, when Coach is oversold, he can pull out his “My Official Policy Manual”, to show them a differing policy, thus breaking any tension and often, getting himself a First Class upgrade. The prop that I think tells the most about Tim’s methodology, without giving you his whole presentation, is his Major Credit Card. Here are the basics on this:

• As a CSP, Tim travels a lot and he’s found that, often, he arrives at his destination hotel fairly late.
• In this circumstance, Tim will walk up to the Reception Desk and say, “Hi, I’m Tim Gard and I have a reservation.” He’s found that, consistently, the Reception Desk Clerk will look up and say, “What is your name sir? Do you have a reservation and do you have a major credit card?” Thus Tim’s development of a prop to help diffuse this annoying situation, that can become more and more stressful.
• Tim’s Major Credit Card is credit-card-sized but it doesn’t have raised, imprinted information. Its green with white printing that includes his own logo in the lower right corner. The rest of the printed information includes: “This is a MAJOR CREDIT CARD”, Tim’s 1 800 number + 0000 (in the place of the credit card number) and the name Ima Traveler.
• At first, being presented with Tim’s Major Credit Card can cause some bewilderment. So, typically, the clerk will ask for “Some other form of identification.” You guessed it, when you turn Tim’s Major Credit Card over, the backside is printed with the words “Here is SOME OTHER FORM OF IDENTIFICATION”, along with his Web site and other contact information. With this, usually any building anxiety is broken and often, Tim winds up with a room upgrade.

Hopefully, you now have a general understanding of Tim Gard’s approach to the topic of “Business Humor”. But the question remains, where does this fit in with Selling? Well, I think it fits in with the philosophy that companies don’t buy from companies, people buy from people. That means, as a Sales Person, in addition to developing good Selling Skills, its good to be a well rounded person. I think this is particularly true with Consultative Selling. It seems to me that having a good sense of humor is an important facet to being a well rounded person so I recommend that all Sales Professionals give this proper attention.

But, what is “proper attention”? Should Sales People employ Tim Gard’s methodology? I suppose there are some roles where this might be appropriate but I don’t think that’s the case for most. In the majority of Sales and Sales Leadership roles I’ve held, I don’t think direct application of the Tim Gard approach would be appropriate. In fact, considering those roles and especially considering my personality, using  Tim Gard’s techniques might have caused me to come off as a clown, thus diminishing my effectiveness.

What I consider  ”proper attention” to this topic includes a few steps, including:

• Give some attention to ways humor applies in the business environment. Although Tim Gard’s methodology may not be right for you, taking a look at it and other examples, can give you a better understanding of humor’s application in a business setting.
• Give consideration to your personality and the culture/s you typically find yourself operating in. Some things that are a “crack up” in a factory setting may not be so funny to folks in the back-office.
• Of course, timing and general circumstances are important. It may be OK to share some friendly jibes with a longtime Customer, as you’re walking to a meeting but that’s not appropriate when you’re initiating a business contact.
• Give some thought to what you view as being appropriate. This is not only important for how you conduct yourself but for how you react when another uses humor that you consider to be inappropriate. I’ve certainly had occasions when Prospects and Customers have told me ethnic jokes, as an example. I can’t tell you how you should react to this sort of thing but, these days, ethnic jokes are usually considered to be inappropriate and your reaction to someone else doing this should be considered.
• Finally, I do recommend trying Tim Gard’s philosophy, if not his methodology, for dealing with stressful situations. On numerous occasions, I’ve found myself in stressful circumstances where those I was dealing with were proposing precipitous actions. A stock response I’ve used in such situations is to say, “We can always do that but, you know, the sun isn’t going to stop in the sky, if we don’t. First, lets see if we can come up with some alternatives that are better for us all.” Obviously, Tim Gard’s humorous approach could be fitting here too.

So, do you agree with my views on being a well rounded person being important in development, as a Sales Professional? If so, where do you think humor fits in? What is your experience in this regard and what direction can you offer?

Closing Techniques: Good? Bad? Ugly?

In my last post, “Closing”, Another “Bad Word” In Sales?, I addressed my desire to have the topic of “closing”, generally, viewed in a more positive light. Based on my experience, I believe part of why there are negative connotations that go along with the word “closing” is related to the use of various “Closing Techniques”.  Some of this is the result of what I discussed in The Pride and Prejudice of Sales, as a failure to recognize that “There is a legitimacy to the Sales function in business. It isn’t ‘palming off.’ That is hucksterism.” Unfortunately, this perception is exacerbated when Sales People are overheard saying things like, “Wow! You should try that technique. It works like a charm.”

I’ve admitted that, at a gut-level, I can connect with the “huckster” bias that seems to be systemic in our culture. And, I also have to admit that my initial reaction to “Closing Techniques” wasn’t welcoming.  I, too, saw them as ways to “charm” others into opening their wallets for whatever the Sales Person was “palming off”. That was my attitude when I first encountered the teachings of ”The Guru of Closing Techniques”, Zig Ziglar. Even his name sounded like someone who should be starring in a magic act in Vegas. But there was something about the guy and the way he presented his materials that made me decide to take a closer look.

For me, the most important thing that I learned ”about the guy” is that Zig Ziglar is a man of faith. Now, that may not be important to you and even if it is, there are plenty of folks who present themselves as men and women of faith but their walk doesn’t match their talk. Since I, too, am a man of faith, it was important to me and from what I’ve observed, Mr. Ziglar’s faith seems to be genuine and deep. But, in this context, that’s only important in as much as it got me to pay closer attention. When I did, I realized that “the way he presented his materials” was the most important factor in this regard. And that is the perspective I want to take in considering the questions I raise about “Closing Techniques” in the title of this post … Good? Bad? Ugly?

In examining these questions, perhaps its best to take a look at specific “Closing Techniques” to see how they fit in with what I’ve called the “legitimacy to the Sales function in business”. One challenge in doing this is the sheer number of known “Closing Techniques”. In his book ’Zig Ziglar’s Secrets Of Closing The Sale”, over 100 “Closing Techniques” are illustrated. So, to make this manageable, I decided to assess a single “Closing Technique” in this light. My hope is that this will provide sufficient illumination on the topic in general. However, with over 100 to chose from, just from Ziglar’s book, its practically impossible to pick out “the perfect example”. So, I just decided to use a fairly common “Closing Technique” that I remember learning in the first Professional Selling Skills course I took … The Puppy Dog Close.

The fittingly named Puppy Dog Close comes from a technique used by those trying to “get rid of” (by selling or giving away or whatever) a litter of pups. The basic technique involves the purveyor of the puppies telling the prospective pet owner that they can take the puppy home and if they don’t like it, they can just bring it back. The “charm” of the technique is that the Sales Person ends up letting the puppy do the work of making the sale … when the prospective pet owner has the puppy play with him, lick his face, devotedly waiting at the end of the day, etc.

So, where does The Puppy Dog Close fit in with the “legitimacy to the Sales function in business”? Is it Good? Or Bad? Or Ugly? In my opinion, the answer to each of these questions is a resounding … It Depends. Perhaps the prospective pet owner is well suited for the puppy under consideration. Maybe just experiencing the right-fit is what’s needed. If so, that’s Good. But, what if circumstances include that the prospective pet owner lives alone in a small dwelling and is away for most of every day. Though the circumstances might make this not a right-fit, the affection developed during the “trial period” could result in the puppy not being returned out of a sense of guilt. I’d say that’s Bad. And, its possible that even if an attempt is made to return the puppy, the original owner of the puppy may manipulate circumstances to prevent the return. This, indeed, is Ugly.

So, what is to be learned from this? The lesson here is that, like many things in life, “Closing Techniques” can be Good or they can be Bad or they can even be Ugly. It really depends on how these techniques are applied. My goal, with the SOL&D blog is to benefit other Sales Professionals. In doing this, I want to promote practices that serve the “legitimacy to the Sales function in business.” Of course, then, I want to do what I can to encourage my fellow Sales Professionals to strive to only use “Closing Techniques” in a “Good” way. Rather than just sounding like the Sales version of Star Wars’ Obe Wan Kenobi, crying out, “Don’t go to the dark side!”, let me offer some specifics recommendations on how to accomplish this:

1. Become familiar with every “Closing Technique” you can find.
2. Develop a clear understanding of how each one can be applied in a “Good” way. I think the last article I posted, “Closing”, Another “Bad Word” In Sales?, offers a helpful definition for a “Good” application of “Closing Techniques” - i.e., “… a way to determine if and how the Sales process is ready to move forward.”
3. In working with Prospects, maintain the sort of attitude I express with my tagline – “Fearlessly Securing (The Prospect’s) Business Goals”. That way, you’ll be better equipped to know if and when a particular “Closing Technique” can be “Good” for them.

So, what are your views on “Closing Techniques”? Do you agree that Whether they’re Good or Bad or Ugly depends on application? Do you think that my choice of The Puppy Dog Close made a good example or are there other “Closing Techniques” that you would’ve used because they bring out other considerations? If so, what are those considerations? And, what other specific steps do you recommend in order for “Closing Techniques” to be used in a “Good” way? As always, we want to hear your views, so they can be shared to benefit others.

“Closing”, Another “Bad Word” In Sales?

Recently, in a conversation with a colleague, I used the word “closing”, relative to Sales. This person, literally, cringed, in response to my use of the word. I’ve had that sort of reaction numerous times before. Maybe you have too. Every time it happens, I silently wish that I could do something to have this topic viewed in a more favorable light.

It seems that there are negative connotations that go along with the word “closing” that are similar to what I addressed in an earlier posting entitled “The Pride and Prejudice of Sales“. That article dealt with a commonly found bias in our culture, equating the title “Sales Person” with the label “Huckster”. With those who hold that view, I suppose they envision “closing” as the time when “the Huckster springs his or her trap.”

One publication I’ve found, that does a good job of tackling this issue is “10 Steps To Sales Success“, by Tim Breithaupt. Here, the ideal Sales process is described as “… a mutual journey of honesty, trust and respect as you and your Customer work in harmony …”. In this context, the Author presents “closing” as “… confirming the sale using a non-manipulative, straightforward approach and presenting a practical, value-added solution.” I think that is an excellent way of expressing what I’ve longed to be able to do in the situation I mentioned earlier when I said, ”I silently wish that I could do something to have this topic viewed in a more favorable light.”

Since Breithaupt does a good and thorough job on this theme, I won’t bore you with a rehash here. However, I do want to add a bit to one facet of the matter that Breithaupt touches on. Its where he says, “You need to be engineering commitment throughout the entire sales call because anything you do or say, at any step, will either erode or enhance the sale.” I agree with that and I just want to emphasize that this doesn’t apply to just an individual sales call. Though that’s not what Breithaupt is saying, I think this point can be overlooked. Failing to see this leads to another of the biggest misconceptions about “closing” – i.e., that it is the terminus, the final act of a sale. However, “closing” shouldn’t be regarded as a finishing point. Rather, the “engineering commitment” should be taking place throughout the entire Sales process. The best definition I’ve learned for “closing”, in this respect is “a commitment to positive action” on the part of both parties. In other words, a “quid pro quo”. In the early phases of a Sale it might be something like, “If I’ll put together a 30 minute presentation showing how we can help your company save X cost over your current method, will you set aside that much time on your Calendar and have your CFO attend with you?” Unlike “springing a trap”, these sort of calls for “commitment to positive action” on the part of both parties is really just a way to determine if and how the Sales process is ready to move forward. This, too, hearkens back to what I spoke to in “The Pride and Prejudice of Sales” – i.e., “There is a legitimacy to the Sales function in business. It isn’t ‘palming off.’ That is hucksterism. “

So, as always, let me ask you, what are your views on this topic? What have you read that you think does a better and/or more thorough job of discussing this issue? Please share any and all input. The goal here is to share the richness of our experience for the mutual benefit of the group.

The “Highly-Leveraged” Pay-Plan. A Right-Fit For The Tough Economy?

It seems that current economic conditions are resulting in more companies considering a more “highly-leveraged” pay-plan for their Sales force. Generally, this means a lowering of Base pay for a Sales person and an increase in the percentage of their potential Commission. As thoughts along these lines have been presented to me, they’ve often been accompanied by comments like, “A Sales person should eat what they kill, right?” That sort of argument can seem logical, at a gut-level, but it may not be the right approach for every circumstance and it certainly merits more thorough examination.

In order to give this topic a more complete look, I think it should be viewed in context – i.e., where does it fit in with the overall design of the pay-plan/commission-plan that’s right for your company? Of course, the “right design” for a commission-plan is going to vary from company to company. So, in order to do this “more thorough examination”, its necessary to come up with a “yardstick’ that’s good for general application. One that I came across some time ago, which I think suits this purpose as well as any, was an article in BNET called “Design a commission plan that drives sales – Sales Commissions”. This article begins with a “Ground Rule” which seems like a great “yardstick” to start with on this topic. It says:

‘* Start with the outcomes and behaviors you want to foster;”

Generally, as this topic has been raised with me, the only “outcome” receiving any attention is increasing revenues while reducing upfront investment. In one case, I met with a business owner who was targeting a 50% increase in annual revenues while planning to reduce the base pay of his Sales people by more than 50%. Of course, this is a pretty extreme example and it may just be a reflection of that company’s financial position. However, this company’s approach on this topic is similar to others I’ve encountered recently in as much as it only focuses on one desired “outcome” and it ignores desired “behaviors”. Ironically, in most cases where this is coming up, its coming from business people who tend to view “typical Sales people” in the way I described in ‘The Pride and Prejudice of Sales”- i.e., “a huckster” who is skilled at “palming off” some product or service. The true irony in this is that those very business people are adamant about not having that sort of behavior as a part of their company. It seems to me that their myopic perspective on this is more likely to produce behaviors they don’t want while being unlikely to produce the revenue outcome they do want, at least not consistently and not in the long-term.

This isn’t to say that there’s no place for the “highly-leveraged” pay-plan/commission-plan. But, as with any commission-plan, it should be designed considering ALL the “outcomes and behaviors you want to foster.” I think most Sales people also have the gut-level reaction to the statement, “A Sales person should eat what they kill, right?”, that it seems logical. However, that’s only going to hold up, if they feel a part of an organization where everyone “has some skin in the game.” In the case of the business owner I mentioned who was targeting a 50% increase in annual revenues while planning to reduce the base pay of his Sales people by more than 50%, this was a complete disconnect with the company’s pricing structure. That pricing structure is pretty standard … a Customer is told what they’ll get and at what price … the Customer isn’t allowed to pay more or less, depending on how they like what they end up with. Of course, any incentivized Sales compensation-plan won’t completely map to that sort of pricing structure either. But, if I was on the receiving end of the pay-plan the business owner in question is contemplating, the gap between how I was getting paid and the way the business owner is getting paid would most certainly have a negative impact on my behavior, especially in terms of my feeling a part of that company.

So, what are your views on this? As always, we welcome you sharing your related views and experience for the benefit of others.

New Year’s Resolutions for the Aspiring Sales Person – Part Three

This is the final chapter in my three-part overview, aimed at being “… a good way to share lessons I’ve learned on how I could’ve done things differently and better in developing my career, as a Sales Professional.”  In Part One, I discussed the general recommendation, to “BE INTENTIONAL ABOUT IT!”  From there, I went on to make the specific suggestion to “HAVE A MENTOR!” In Part Two, I offered a more detailed proposal to “Have A Proper Formal Education, As A Foundation!”

Of course, its difficult to be complete on the sort of topic this three-part series is meant to address. Probably with anyone who’s in a position to look back over the decades of a a career, there are many changes you’d make, if you could go back to do so. And, changes in one area can easily lead to changes in other areas. However, in keeping with the theme I’ve set, to deal with just a few foundational issues, I’ll conclude with just one more:

Have A Structured Continuing Development Plan!

In a way, this is an extension of my topic in Part Two, ”Have A Proper Formal Education, As A Foundation!” And, once again, it may be helpful to examine my beginnings in this regard:

My first Sales job was with a company offering document management systems. I was hired by a VP, whose background was in Engineering and I reported to a Branch Manager, whose background was in Finance … neither of them were Sales Professionals. I guess the fact that I was able to land the job in the first place is an indication that I was gifted with some Sales instincts. However, just a few months into that job, the Branch Manager was replaced by a guy with a successful Sales background. In working with the new guy, several startling realities became very clear in fairly short order. These were: (1) I was accomplishing as much as could be expected, with my gifted skills. (2) I wasn’t meeting Quota. (3) I had no clue what to do about it. At that point, my new boss made a decision that was truly a watershed event for my working life. If he had decided differently, its likely that I’d be writing this blog on something other than Sales. But his decision was to send me off to a Fortune 500 company’s Training Center, to take their course in Professional Selling Skills.

I’m thankful for my old boss’ decision to enroll me in that “PSS 101″ course. Likewise, I’m thankful that, since then, I’ve been blessed with Sales education including Miller Heiman, Zig Ziglar, Strategic Selling, Selling to VITO, etc. as well as Fortune 500 employer’s internal selling curricula. Along with this, I’ve gained from learning provided by employers and professional associations in Leadership, Management, Relationships, etc. Just recently, though, a prospective Client asked me a question that reminded me of an ongoing flaw I have in this area. The question was, simply, “What business book have you read recently?” I’m a little embarrassed to admit that I was stumped, momentarily. After stopping to consider this for a moment, I realized that the business book I was currently reading was just under the notepad I was using. Its entitled, “Biz Blog Marketing”. Then, I turned to look at the bookshelves in my home-office and saw the two books I’d recently finished, “How Did You Do It Truett?” (The story of the Founder of Chick-Fil-A) and “Becoming A Coaching Leader”. And, as I looked back to my PC monitor, I thought of the significant volume of reading I do daily, on-line, just to keep up with my business and to support the three blogs I write. So, why the embarrassment and where is the flaw? Its in the very same place that I mentioned in Part One of this series … “My becoming a Sales Professional, in fact, was pretty serendipitous. Much like Harriet Beecher Stowe’s character Topsy, to a great degree and especially early on, “I just growed.” In other words, I wasn’t very “intentional” . And, with this, there’s still room for improvement. With this in mind, I want to make these concluding recommendations:

1. Lay out your own plan for the business-related courses you want to take over the next several years. Perhaps an employer or a professional association will provide these for you but you should have your own plan for a curriculum that you think will best serve your interests and attaining your goals. When its time to take the next course on your list, see to it that you complete it, regardless of who will provide it.
2. Keep a record of the courses you’ve completed. In most cases, you’ll get some sort of certificate. Its easy enough to keep these in a 3 ring binder. Don’t let yourself fall into the trap I’ve fallen into where I’m looking at my resume and saying, “Oh, yeah. I remember, going to San Francisco, when I worked for Minolta, to take that AMA course in “Dealing With Challenging Personalities”.
3. Have a formal reading plan for each year- i.e. Specific titles you will read, with specific completion dates assigned to each title. Back in the days prior to laptop PCs, when I used to do a lot of air travel, I relied on that “downtime” to keep my reading caught up. Those circumstances changed. So, I recommend laying out a plan that you will carry out regardless of changing circumstances.
4. Keep a record of the reading you’ve done too. Its not practical for me to note every article I read on-line but, if I had prepared the sort of reading plan detailed above, it would be fairly simple to use it to note the actual completion dates. At the end of the year, that completed plan could be stashed away in the same 3 ring binder used to store the certificates from the business courses I’d completed.

So, that pretty much wraps up this year-end exercise in somewhat baring by business soul. But, as always, you’re welcome to add to it. If, like me, you’re an “old hand”, please add your experience and your views by leaving a Comment. And, especially if you’re in the early stages of a Sales career, I’d welcome hearing from you. As I say on the “About Gary Wiram” page of this blog: “My hope is that this blog will be beneficial to other Sales and Sales Management Professionals.” That is my central purpose – i.e., I don’t get paid for this. So, I hope you’ll know that I’m most sincere, with that page going on to say, “I welcome hearing from you, via your Comments. If you’d like to hear more from me, contact me today, via this blog’s Email link!”

New Year’s Resolutions for the Aspiring Sales Person – Part Two

In Part One of New Year’s Resolutions for the Aspiring Sales Person, I began an overview aimed to be “… a good way to share lessons I’ve learned on how I could’ve done things differently and better in developing my career, as a Sales Professional.” The steps I’m encouraging in doing this fall under the general recommendation to “BE INTENTIONAL ABOUT IT!”  And, my first specific suggestion under that heading was to “HAVE A MENTOR!” As I proceed to address specific aspects of my career development, I think it’s obvious where being more “intentional” and having a “Mentor” could’ve fit in, to make a significant and positive difference. With that said, let me proceed with the next area I’d like to discuss:

Have A Proper Formal Education, As A Foundation!

Here, again, it may be helpful to share information about my beginnings and the flaws I now see, looking back. Here’s how things went:

I was a National Honor Society High School Graduate, with five Majors – English, French, Math, Science and Social Science – and no Minors. Although I recall being advised to go on to college and to have a Major selected by the time I got to college, I don’t recall getting any counsel on applying for scholarships or what to consider in selecting a Major. Thankfully, there was a State University in my hometown, so I could live at home and there were enough jobs around to be able to earn the money needed for books and tuition. Since the local State University had evolved from a State Teacher’s College, I decided to Major in Education. I spent 4 1/2 years in college, trying one Education discipline after another. During that time, I dropped out and returned twice. In my third attempt at a Junior year, I finally got to do some lesson plans and got to try them out in the University’s Lab School. Guess what?! I found out that I didn’t like being a School Teacher. So, I dropped out for the final time and went out to get a job. I’m grateful for the successful Sales career that led to. However, though most recognize my experience as equivalent to a Bachelor’s Degree and an MBA in Sales, even these decades later, not having completed my formal education still comes up.

With the benefit of hindsight, here’s how I would do things differently:

1. I’d look at alternatives for financing my college education. A National Honor Society High School Graduate should be able to qualify for some form of scholarship or, at least, favorable terms for a student loan.
2. Finding sources for counsel on selecting my major courses of study, obviously, would’ve been helpful. Just as obviously, they didn’t find me in those days.
3. It would’ve been good to look beyond my local horizons too. I’ve been blessed to work and travel in most of the Northern Hemisphere but getting some of this exposure earlier would’ve been beneficial.
4. Though a scholarship or a student loan would have provided me with more latitude, I still would have worked while going to school but I’d have done it more selectively. Specifically, I would’ve tried to find work associated with my field of study. As an example of one benefit in doing this, if I’d taken a job as a Custodian in a public school instead of as an hourly laborer in a warehouse, I might have, at least, recognized a bit earlier that I wasn’t cut out to spend my working life in a public school. On the other hand, if it turned out that I was well suited for work in that field, perhaps it would have led to a job more in line with my ultimate career path, resulting in better preparedness and a bolstered resume.
5. Taking steps 1 through 4 would have made it more likely for me to not drop out of college. Since I did end up dropping out though, it would have been better if, during the first decade or two, I had completed my Bachelor’s while continuing my career.

In Part Three of “New Year’s Resolutions for the Aspiring Sales Person”, I want to tackle one more specific area where, looking back, I recognize that I could’ve done things differently and better in developing my career, as a Sales Professional. Then, with that added to the other steps I’ve addressed, I’ll conclude with a general discussion of more productively leveraging those foundational changes throughout my career. For now, I think that’s enough from me. But what about you? If you’re an experienced Sales Professional, what would you like to go back and change for the better, in developing your career? If you are an Aspiring Sales Person, what else would you like to hear about in this regard, that you’re thinking and feeling would be helpful to you? Please let us know your thoughts along these lines. Then, check back for Part Three, as I wrap up this “more pragmatic and less philosophical” discussion, meant to “share my rich experience, to produce Top Sales Performers and Top Performing Sales Organizations.”