Consulting

Sales Prospecting or Farming?

March 15, 2018 By kwmccarthy

Sales prospecting and farming represent two modes of selling.

Be clear about which one works and works for you.

Over the years, clients have engaged On-Purpose Partners to assess and design their sales architecture, often with On-Purpose^® being foundational content. Such engagements demand a blend of

strategy
psychology
marketing
selling
curriculum development
business
and more

One of the first design decisions to assess is if the client’s business, mindset, and preference is for building a prospecting or a farming sales approach.

Many other company decisions and investments hinge on this simple differentiation.

As a keynote speaker to sales organizations at conferences and conventions, I’ve learned to psych out their leanings early. Whether it be an insurance, real estate, or direct sales organization, there are similarities and differences in their cultures and approaches; yet these two generalized worldviews on selling remain staples of the selling process.

Corporate executives set the tone but often a product or service defines the sales approach. Generally, if a company is in manufacturing or is technology oriented, they tend to favor the prospecting approach mentioned in this On-Purpose Business Minute. Customers are part of the “human resources” supply chain of logistics and transactions. Here people are deployed to meet business objectives by digging out customers.

Company executives who favor the farming approach, however, tend to focus more on cultivating relationships.

This longer-term view of people sees a long tail of repeat sales and referrals in the context of the lifelong value of a customer. It affects commitment and investment in planning, people, operations and, ultimately, customer service standards and training.

Salespeople as farmers or prospectors are typically engaged in very similar activities of making sales calls, gathering information, preparing presentations, and closing deals. Astute salespeople readily assess the best approach for a particular book of business. If you find yourself scratching your head wondering what the higher-ups are thinking, then there is a good chance they are (or you are) oblivious to the culture they’re creating in the field. They’re prospecting for immediate nuggets of sales while you’re growing a crop of relationships and caring for a soil of the relationship … or vice versa.

Be aware of which approach is best suited to the company, customers, and, frankly, your personal style that plays into your definition of success.

Years ago, a friend came to me ready to pull his hair out by the roots. He loved where he worked as an admissions representative at a private vocational college. The problem was he is a farmer and he was being measured as a prospector. Every phone call, email, and piece of mail was measured and accrued to his measurement system.

Together we designed a simple tool to engage student candidates into a conversation instead of an information session. At great risk to his metrics, his call volume went down, his mailings decreased, and his number of “contacts” declined. The first month, his boss was all over him for non-performance. However, by the second month, his admissions soared to the number 3 spot of all reps—an achievement he had never before attained. Within 3 months, he was leading all reps and out-distancing them. Soon two reps approached him and asked what he was doing differently. Within a month all three of them held the top 3 positions.

They had discovered farming versus prospecting!

This story isn’t to propose that prospecting is bad. On the contrary, it is to say that the culture and the sales culture didn’t match and the results were impoverished by comparison to a proper match.

By the way, the story gets even better. In time, the leadership altered the system to reflect a farming approach that was people-centric. Under the “prospecting” approach, student turnover (withdrawals from the college) was very high. With the “farming” approach, admitted students tended to stay in place. This was an unexpected bonus, but an intuitive result.

The point of this On-Purpose Business Minute for the executives, VPs of Marketing & Sales, and Sales Managers is to assess your industry, company, and culture. Decide which approach is best suited to creating the customer experience you wish to deliver. Armed with this information, evaluate your company language, alignment, and operations to see if you’re on-purpose or not.

Sales prospecting or farming? Now you’re a bit more informed to make wiser decisions.

Be On-Purpose!
Kevin

Is Your Career In The Midst of A Tough Shift? (part 2)

February 15, 2018 By kwmccarthy

Career Advice?

Early in my career a well-intended business person told me, “Keep your personal life and your business life separated.” At the time, I remember questioning that advice. Perhaps if I had pursued a career in Corporate America that Industrial Age advice might have served me well.

I ignored that advice and followed my heart with the guidance of my head.

Today, I wholeheartedly believe just the opposite is not only true but the healthiest approach to living life and having well-being in your person, work, and relationships.

I’ve been a business owner for over 50 years.

It started with selling candy on the school bus. I tended to eat my profits. My older brother did collections and my parents’ dental plan covered the cavities. Heading down and staying on a path of independent business ownership eventually led me to be in the business of helping clients integrate their work and life to be on-purpose. For over 25 years, I’ve been sharing that message with anyone who would listen. Today, the world is ready and hearing this message.

But what if your life feels compartmentalized, scattered, and struggling with a Tough Shift? Now what? The disintegration of life and work may be an effective (and necessary) survival tool for working ill-fitted jobs, but is dying better than thriving?

Integration of life and work is where it’s at.

On-Purpose can help you to live into your greater calling and find your happiness.

Put on-purpose business principles and planning to use in your personal and work life. As a business advisor my focus is principally on company growth through improving the business acumen and leadership capacity of the people within a well-defined business strategy. We help our clients create On-Purpose Business Plans. You can do the same for your career by creating a life and career plan, especially leveraging ONPURPOSE.me, the online 2-word purpose statement discovery tool.

Over the years, many a client has come to me seeking life and career advice.

Usually, the call comes when they’re in the midst of a tough shift—job loss or job dissatisfaction. Most of us struggle with time management, but that isn’t the underlying issue. We’re fighting financial worries, but that isn’t the true problem either. We’re trying to steady a shaken confidence, but that isn’t the problem.

The real problem is we haven’t identified what’s most important … really important–willing-to-pay-the-price-important.

We take on too much.
We spread ourselves thin.
We never develop our true strengths, passion, and purpose.

The idea of spreading our risks actually compounds it. Try excelling at something you’re not called to do. No amount of extra time, energy, and effort can produce a truly satisfying result. We’re simply off-purpose. What a waste!

If you find yourself in the midst of a tough shift, such as out of work, underemployed, on-the-fence about your future, or downright unhappy in your present job, then On-Purpose^® is a fun, workable process designed to free you to be true to who you are.

Here are some suggested resources:

Read The On-Purpose Person.
Run Want Lists and Tournaments to get very clear about what’s most immediately important. Use The Discovery Guide free preview.
Mary Tomlinson rocks as an On-Purpose Personal Leadership Coach
Hire a coach to help you. There are plenty of talented, capable “life coaches” available. Mary Tomlinson is delightfully exceptional at walking clients through the entire On-Purpose personal planning process using On-Purpose Peace. We also have other recommendations to On-Purpose Pros as life and career coaches.
Make appointments for your dream! If you don’t, no one else will. You’ll always be subject to fulfilling the dreams of others while your dream dissipates through the days spent instead of invested.

Go into this planning process with a focus on your life and you’ll come out with a life and career plan that informs your vocational aspirations.

Smooth out the tough shift and step your life into a higher gear—on-purpose!

Are You Line or Staff?

February 1, 2018 By kwmccarthy

6a00e551c6499c8834019affbebd08970d-320wi.jpg.jpg — Think Inc! is Pillar 2 in The On-Purpose Business Person: The Mindset.

Being a line manager or staff person defines the role of one’s job, but it need not define your attitude and approach to your job.

In this On-Purpose^® Business Minute, let’s explore a structural reality that affects on-the-job performance, often negatively. It need not be so if one is simply willing to see the job differently and Think Inc!—the mindset of being a line leader even if you have a staff job.

The absence of leadership is often cited.

When you’ve had a lousy customer service experience it is most often because someone wasn’t willing to make a decision or someone else away from the situation had created a broad, inflexible policy. There’s little worse than having a customer service person (staff person) cite you the limitations of their job and why they can’t help you.

When the overarching cloud of their superior’s policies outweighs the frontline person’s inherent common sense and desire to do right for their customer, everyone suffers.

Here’s an example from a few years ago. Judith and I were flying from Washington, DC, back to Orlando on a 6:00 PM flight. I discovered there was an earlier flight to Orlando at 3:00. We showed up at the airport at 1:30 to see if we could catch a ride on the early flight with US Airways. Good news—they had plenty of seats and would be happy to change our seats for $75 each. Being a travel veteran over the decades, I said, “What if we fly standby and take open seats on an as-available basis?” It seemed like a straight-forward logical win-win request.

Stupid me! I was told that we couldn’t get on the earlier flight because “US Airways needed to generate revenue on those seats.” Pardon me, I thought I had paid for two seats and they were already generating revenue from our business. Under the logic of airline seats being a “perishable product” my practical argument was, “Hey, if the empty seats haven’t filled within 90 minutes of flight time, don’t you have a higher probability of selling seats on the later flight that is almost full?”

What was I thinking? “Why should US Airways want to take care of the passengers standing at the gate while increasing their own odds with getting some yet-to-show-up new passenger to pay for the later flight?” But that’s the way my mind works.

US Airways, however, has a scarcity mindset … the customer wants something we have, we already have their money, so let’s gouge them for some extra revenue instead of accommodating their request. Even the ticket agents and customer service person were visibly unhappy about having to enforce a logical customer request that was thwarted by policies called, “We need to earn revenue on that seat.” I was given that as an excuse by multiple people over numerous times. Wow, how degrading and transactional to quote policy like that to the customer.

By the way, we decided to hang on to our $150 and took our scheduled flight.

US Airways gets my nomination for being off-purpose with this matter. Not surprisingly, a Google search for their corporate purpose, vision, mission, or values reveals none.

To the credit of US Airways, their front line counter agent and supervisor tried to be helpful within their limitations. We traveled home safely and for that, I’m thankful to US Airways.

Be On-Purpose!

Kevin

Are You Doing Business By Design?

January 25, 2018 By kwmccarthy

Most start-up businesses begin with great intentions but are at risk of being haphazardly led with little to no regard for the founder’s spirit or original intent—even when the founder is still running the business! It is a costly loss of strategic advantage, employee and customer engagement, and business profits!

Some companies get it right and thrive. The Walt Disney Company’s 2-word purpose can be stated as Creating Happiness. They do a great job of living into that purpose.

Susceptibility

Most susceptible to this drifting from the founder’s spirit and intent are large organizations and institutions where work is highly fragmented across divisions and/or countries. Specialization must be paired with a sustainable corporate culture that honors and innovates upon the strengths of its past.

For example, did you know that universities and colleges such as Harvard, Yale, Princeton, and other Ivy League colleges were started as seminaries to train and equip ministers in the Christian faith? Today, these academic bastions of intellectualism and secularization are so far from their founders’ intent that their roots are obscured, if not outright ridiculed.

Candidly, most large businesses have lost a measure of their soul, and so they resort to conveying and communicating corporate values as the “fix” to the deeper loss of authenticity and congruency. When values need to be more codified and communicated than caught, then ethical business problems are predictably on the horizon.

Right behavior can be reinforced, but it can’t be legislated.

Hellegation™

Least susceptible to drift are micro-businesses or one-person entrepreneurs, freelancers, and such—provided they have clarified what matters most. Otherwise, they’re susceptible to the “chasing bright shiny objects syndrome.”

Solo owners face a different challenge, however. Founders of these SOHO (small office, home office) businesses are typically wearing far too many hats and are preoccupied with personally providing production, sales, and customer care. They’re easily caught in a vicious swirl of learning, working, and selling or overwhelmingly stuck in procrastination.

Fortunately, their passion to perform typically enables them to muscle through and deliver on a small scale basis. My term for this is Hellegation™—a condition where the solo owner has no one to delegate work to in order to be freed up to focus on more important matters to the health and well-being of the business, its customers, and society.

Years ago, I had a client who was starting an IT business. He got so lost in his software development, he soon forgot why he started a business. His intent was to help clients, employees, and his family, but he lost sight of the larger picture—becoming buried in the details. His strategic confusion produced a bewildering business design supported by a confused business infrastructure.

In my client’s case, lines of code were the means for creating value and making a contribution. He, however, got caught up in the making of money (financial profit) versus creating a profit for everyone (adding value). The true value of his business wasn’t code or cash but grounded in how his software improved the lives and productivity of his client companies and their customers.

By Design, On-Purpose

It sounds so basic, but the fundamentals of business really don’t change. Ultimately business is about people serving people. As today’s On-Purpose Business Minute encourages: do business by design. Clarity of purpose is your market advantage (or disadvantage if absent!). The difference from company to company is its business style, design, model, and infrastructure in alignment with its purpose, i.e. being on-purpose.

Any kind of plan or business plan for small businesses tends to be scarce. Who has the time to plan? or so the thinking goes. Understandably so because the plans are really not all that appropriate or useful in many businesses (see: What is the Purpose of a Business Plan?). Nonetheless, that doesn’t mean strategy and planning are useless and meaningless. They have a specific and powerful place in a company of any size.

(Special plug: A couple of years ago I met Jim Horan, creator of The One Page Business Plan. Here’s a great planning device for businesses of all sizes. It is, however, especially apropos for solo owners.) I also offer The Service Model as a similar but different way to analyze, build, and design your business. You can purchase instructions and a worksheet at The On-Purpose Shop.

Having a strategic context for building your business matters.

The On-Purpose Business Plan is a 9-minute video providing the essential steps to integrate the business design, plan, model, and infrastructure to reach and serve your customer base. This “map” of what’s needed is too often a missing perspective for those leading organizations. Admittedly, the agenda is full so connecting this many dots seems like busy work. In fact, it is vital business work to the development and growth of your team, culture, and business performance.

Regardless of whether you are an entrepreneur of a one-person show or the CEO of a billion-dollar business, as your business advisor and designer, you don’t call me until there’s a problem in the business that your team or you can’t fix yourselves. Your SWOT Analysis only takes you so far.

Stuck?

Let’s assume that you are competent at delivering your product or service, but the business isn’t growing. That means problems lie in the design of the business or the leadership or both! Conversations and conventional wisdom swirl around business infrastructure, business planning, and the business model, but it is like a fish swimming in water trying to see water—you won’t see it because you’re too close to the matter.

Times like this demand depth, not shallow manipulations of the status quo under the guise of change management. In the strategic depths of an organization, a slight adjustment in understanding, a tiny shift in strategy, or an orientation toward greater alignment ripple powerfully into positive results.

The simple articulation of a 2-word purpose statement is the tiniest of acts—but the most potent of all strategic initiatives.

Tweaking the fundamental design of the business is not for the faint of heart. Eventually, failure to do so will be manifest in every facet of the business … and that’s costly at every line item on the budget. Strategic business design can elevate the business to the next level of performance, profits, and expression of its purpose.

———

The On-Purpose Business Person provides a solid framework for any person at work to learn how to be strategic and to approach their work as a business owner. Click here or on the image to the right to purchase it for $16. It is also available on Kindle for $9.97.

Get The Service Model worksheet here!

Why Is My Business Struggling?

December 21, 2017 By kwmccarthy

Fortune 1000 company CEOs and small start-up business owners who have yet to make $1,000 often share the same problem—a business struggling to succeed. Economic conditions can definitely have an effect.

Many of the business challenges I see, however, are self-inflicted!

Business problems due to lack of sales revenue are most often addressed at the surface level—”We need a new website, lower prices, more salespeople, and so forth.” Sales and marketing are obvious places to look by the entrepreneur or even seasoned CEO.

Business solutions like these are where hordes of consultants and advisors earn their fees. Most often they are well earned and justified.

But wait—there’s more!

My experience as a business advisor for CEOs of multi-billion dollar companies and one person start-ups tells me that these tactical plans and approaches to problem businesses are often futile. It leaves the business struggling and focused on the wrong activities, even if well intended.

The culprit of many a business challenge lies below the surface.

If the basic business design, model, and plan have flaws then the entire business is off the mark. The larger the business, the more it lives within the corporate culture—for better or worse. Even a small defect at the core of the business can be expensive.

What To Do

Watch this video on The On-Purpose Business Plan. Invest 9 minutes right now. This will help you find undiscovered wealth within your business. As you’re watching ask yourself if your business has this kind of thinking and structure in place and developed. Better yet, ask yourself the value of it if you did have it in place. When you build your business on your purpose, then you’re capable of offering a full-bodied expression of your business instead of the typically tactical and anemic offerings of today.

If something is missing in your business … it is probably here!

2. Do This: STOP! = Start Thinking On-Purpose!

How to do that: Try this simple exercise. Write down your “truths” about your business. This could include your assumptions about your customers, the market conditions, what it takes to sell, the benefits and features of your product or service, costs, the quality of your team or delivery … you get the idea. Jot down what you hold as a reality or truth in your business. These are your assumptions and concepts.

Next, take your list to two or three people outside your industry and ask them to review the list and to tell you their take on your observations plus their thoughts and perceptions. Avoid defensiveness. Wear your R&D and market research hat and listen—don’t tell—and just ask.

Finally, interview a few customers or targeted prospects to learn if your truths are reality or simply impressions that constrain your business development and growth. Ponder it and then adjust accordingly!

Business Building: A “ME” or a “WE” Business?

December 7, 2017 By kwmccarthy

Business building is exciting.

Don’t let the excitement get the better of you. There’s a fork in the road in your business design that is too easily missed or goes unrecognized. The strategic and performance implications are profound.

If you are planning to start up a small business or are already running one, then you have a deep leadership decision about the orientation and attitude of your business as a “ME” business or a “WE” business. This orientation will play a major role in defining your corporate culture as well as the long-term sustainability of your organization—even its viability to be sold.

Here are two basic ways to go about business building:

M.E. = My Ego

W.E. = Winning for Everyone

Many professionals’ offices and mom and pop businesses are “ME” businesses simply by default or lack of knowing any better. “ME” businesses may provide adequate customer service, but they are more likely a source of periodic customer service nightmare stories.

Being a business advisor for over three decades, I’ve observed that most ME businesses do not have happy endings for the business owners who are unaware of the “ME or WE” business model. Either the business success is so dependent on the person that there isn’t a viable exit strategy, or the reputation of the business is so poor there’s no goodwill worth buying.

The employees are workers doing the owner’s bidding, so in the boss’s absence they’re lost or unable to act independently.

Sale of the business is next to impossible, or it will be bought for pennies on the dollar.

Family members capable who would be a logical part of the succession planning have long since departed the scene to carve their own way. Or worse, they’re still around as dependents. This latter situation can get ugly fast.

Generally, these ME enterprises close when the dominant or alpha personality departs by either retirement or death. If by chance, the business is sold, the valuations are almost always discounted or only asset-valuations based because the business is so revenue and operationally dependent upon the owner.

However, if you’re unwilling, unable, or just don’t care about the long-term sustainability or saleability of the business, and if you’ve made an informed decision about having a “ME” business, then press into it all the way.

As long as you’re building a ME business by design and you understand the downside and can accept it, then there’s nothing inherently wrong with just shutting the doors when you’re done.

“WE” businesses are looking for win-win outcomes for everyone involved.

Candidly, the “Everyone Profits” mindset is a challenge to design, create, and execute, but done well is far easier to sustain and manage. (Here’s a huge tip: use The On-Purpose Business Plan as a guide.) When the people thrive, the business is more likely to follow suit.

An owner who cares about people infuses that attitude to the employees, who pass it along to the customers, who in turn send their referrals.

The spirit of customer service begins with a decision about whom the business serves. If you’ve never thought about your business orientation as “ME” or “WE,” then invest a few minutes to take a hard look in the mirror. I promise you that you can improve your lifestyle, position, and business performance if you will make a decision regarding your business orientation and then take it deeply one way or the other.

Don’t stay in the mushy middle. Pick a direction and run to it.

The On-Purpose^® Approach is a service concept with “WE” checks and balances. Yes, it is more difficult to design and develop, but it brings a sustainable and durable dimension to the business. If you need help forming or transforming your “WE” business, let us know. We have business advisors who can guide you regardless of the size of your business.

Have You Had Your Profit Epiphany?

June 22, 2017 By kwmccarthy

Profit-making has a bad rap.

Too often we associate profit with greed.

Truth be told, greed is an attitude of the heart that is often revealed in business but isn’t inherent to being in business.

If your heart’s desire is to truly be of service to others, then greed is likely not going to be your problem. Your challenge is just the opposite—you run so far from the appearances of greed that you overdeliver and undercharge so often that your business is hanging by a thread. Check your mindset and see if I’m right!

This On-Purpose Business Minute may be just the message you need to hear to awaken you that it isn’t your marketing, sales force, or operations that needs the adjustment—it is your internal posture about profits in need of repair.

Creating Customer Service Excellence?

June 8, 2017 By kwmccarthy

Customer service is first an attitude before it is a behavior. Too often we focus on creating excellent customer service skills but we neglect the well-being and perspective of the person delivering it. How a customer is treated makes all the difference to their impression, experience, and promotion—yes, promotion—of your business.

Treat your customers right—first, because it is the right thing to do in a civil society. Second, treat them right because it is really smart business.

Do you have a concerted effort to improve the customer experience? If not, why not?

Customer service would appear to rest mostly on the shoulders of the front-line person interacting with the customer.

But does it really? Long before the customer relationship begins the top leaders of the organization hire the employees, set the standards, make investments, train managers, and create training programs.

The front-line employee is an easy target when things go wrong with customer service complaints. Admittedly, the front-line person does have a high responsibility. The fact is customer service improvement is a joint effort unified and girded by the strength of personal leadership across the entire team.

If your customer service levels have plateaued below your standards, then consider that you might have a systemic problem rather than a people challenge. Look to your business strategy, departmental cooperation, hiring, technology, training, or any number of issues under the purview of the “Customer Service” department.

Customer service skills training may provide a quick fix, but it is rarely a long-term improvement in the customer experience.

Watch this On-Purpose Minute, “Do Good Manners Matter?” about the importance of manners and the Ritz-Carlton approach to serving “ladies and gentlemen.” Having recently stayed at the Ritz-Carlton in Buckhead, GA I can tell you that this approach remains alive and well.

How On-Purpose Partners can help you

If you lead the company, you may need an assessment and recommendation to shift your corporate culture toward customer service excellence. We also offer one-on-one executive coaching as well as training and development programs designed to help your team members become TOP Performers and excellent in their customer service. Email us to arrange an appointment.