Sales and Sales Management Blog

February 21, 2008

Guest Article: “From Ethics to Integrity: How to Make Doing What’s Right a Way of Life,” by Randy Pennington

From Ethics To Integrity: How To Make Doing What’s Right A Way Of Life
by Randy G. Pennington

In the best of all worlds, ethical behavior would be the expected way of doing business. Employees at all levels would make decisions based on the personal commitment to honesty, integrity and fairness. They would carry out their duties, promote the organization’s ideals and maintain the trust of their customers, suppliers, co-workers and communities. In this perfect world, no one would succumb to temptation and the lure of expedience. Unfortunately, there is no perfect world.

We live in a world where trust has deteriorated into widespread cynicism. The increased demands of a highly competitive market have forced us to consider short cuts once dismissed as unthinkable. Scandals and improprieties (real or imagined) reinforce the belief that playing by the Golden Rule is now passé. Bed fellows abound at a time when true partnerships are needed to meet the challenges of building strong relationships.

Written Codes Are Not Enough
Written ethics codes and value statements are the traditional response to the challenge of unifying the organization’s beliefs and behavior. They are intended to provide direction and ensure consistency of expectation and performance. They have worked in many cases. In others, written ethics codes have been routinely ignored while behavior that is, at best, questionable becomes the order of the day. Written codes and value statements are necessary, but they do not ensure integrity in word and deed. They are merely the first step in a long and difficult process that moves the organization from ethics compliance toward a commitment to integrity in products, services and relationships. Only then will the inspiring values statements that hang on the wall be transformed into performance that promotes trust, mutual respect and commitment to doing what is right. Behavior that destroys organizational integrity is more likely to occur when these five factors have greater impact than written codes and value statements:

The culture makes it okay.
Adlai Stevenson said, “Laws are never as effective as habits.” Most people know, for example, that the law dictates the speed limit. Yet, many routinely exceed it based on habit. An organization’s culture is demonstrated by its habits. Overlooking or even rewarding questionable behavior sends the message that it is condoned or even encouraged. A study done by John Delaney and Donna Sockell at Columbia University reported that 40 percent of respondents who chose to act unethically were rewarded, either explicitly or implicitly. Determine the habits that send messages about the importance of rules and standards and you will discover the aspects of the organization’s culture that influence integrity.

Systems reinforce behavior.
Systems are the tools to promote efficiency and consistency. They are powerful vehicles for developing habits though repetitious performance. Effectively designed systems in areas such as compensation, performance management and purchasing are important components of an environment that has grown beyond compliance to ethics and embraced integrity as a way of life. Otherwise, systems can unconsciously promote behavior that contradicts the organization’s good intentions.

Pressure to achieve results with limited resources.
It is a challenge to maintain or increase productivity levels in times of decreasing resources. Leaders may be tempted to say “Get it done any way you can.” There is, however, an inherent danger in this message. Employees respond by cutting corners, and potentially open the door to actions that destroy trust and credibility. Directives must communicate the expectation of results and responsibility for how they are achieved.

People blindly follow the directions and example of others.
There are two situations where this could occur. The first is when an inspiring, charismatic leader persuades others to follow his/her direction regardless of the consequences. There are numerous examples of well meaning individuals whose judgment was clouded by the ability of a great motivator.

The second is when employees assume that the directives they receive from management should be followed without question. The assumption is that all decisions have been examined before they are implemented. The solution to blind compliance in both scenarios is educated employees that understand the organization’s mission and values, think for themselves and are willing to ask questions when they arise.

The lure of expedience.
Ben Franklin wrote that success is primarily a function of what you are and that one must master 13 internal principles to be achieve it. External trappings were the result rather than a primary indicator. That view has changed.

Our culture sends powerful messages that say success is based on what you have. The ends justify the means. The desire to have it all today can lead to short-term thinking, rationalizing actions and cutting corners.

Making the move from ethics to integrity.
Kathleen Purdy, writing in the June 1994 edition of “Ethical Management,” says, “What started out in many organizations as mere (ethics) compliance is now a very powerful process. One that weaves together many other programs aimed at change.” Leaders are discovering that successful products, services and relationships are all connected by a common thread — integrity. It goes beyond ethics, Total Quality Management, customer service and empowerment to build trust and commitment among customers, employees, suppliers and the community. The following ideas will help your organization make the transition:

Begin where your influence is highest.
Dr. Stanley Pearle, founder of Pearle Vision, is fond of saying, “The customer is smarter than you think. You must deliver what you promise. That is the only way to develop trust.” Lasting change is an inside out process. Individuals must change before organizations can change. A foundation of trust, mutual respect and commitment must exist internally with employees and suppliers before moving externally to customers and communities.

State expectations, but avoid a new “Integrity Program.”
The goal is to make integrity the guiding principle for products, services and relationships. New programs become the latest example of MBBS­p;Management By Best Seller. Instead state your expectations in an open, honest manner so that everyone understands their obligation to customers, suppliers, communities and each other. Explain that strategic initiatives such as TQM, empowerment, self-managed teams, new performance management practices and ethics codes are simply the tools to help the organization meet those obligations. Avoid any hype, admit you are constantly working to fine-tune your own performance and ask everyone to join you in the goal of making integrity the number one operating principle. Continuously remind everyone that the ultimate goal is on-going trust, loyalty and commitment of customers, employees, suppliers and communities in a way that insures everyone’s long-term viability and survival.

Design systems and structures that promote integrity, trust, mutual respect and commitment.
Systems and structures create habits in organizations. Each system should be judged by the following three criteria: Are we doing what we said we would do? Are we providing what we said we would provide? Does the system reinforce our commitment to integrity, trust, mutual respect and commitment? Organizational systems, both internal and external, send a message about our integrity that is more powerful than any ethics code or values statement.

Hold people accountable for achieving results in ways that promote integrity of products, services and relationships.
Leaders must reinforce that there is no “either/or” alternative. Results must be achieved through actions that demonstrate integrity in products, services and relationships. This message is sent through promotions, compensation, perks and the handling of performance that does not meet their expectations.

Educate to provide knowledge and skills then empower people to act.
The goal of ethics codes is often compliance with stated requirements. Focusing on integrity can empower every individual to recognize, confront and correct performance that diminishes trust in products, services and relationships. Individuals and teams should spend time discussing and understanding the impact of decisions and actions to acquire the knowledge to improve in the future. Skill building provides the tools that enable them to respond effectively when situations arise.

The number one characteristic people want from their leaders is integrity. We tend to trust leaders who walk their talk on a personal level. It is a crucial ingredient, but it is only the first step in a long process. Ultimately, leaders must become passionate in their zeal to move toward a better world that expects, encourages and promotes integrity in products, services and relationships.

Randy Pennington is a business performance veteran, author, and an expert in helping organizations build a culture focused on results.  Randy focuses on what works in your world – the real world – and he does it in a style that relates to people at every level of every organization.  Randy is the author of Results Rule: Build a Culture that Blows the Competition Away and On My Honor: Leading with Integrity in Changing Times.  Learn more about Randy at www.penningtongroup.com

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On another note, I’d like to point out an interesting post this morning at Job Profiles listing the top 100 sources to find the best talent in numerous industries.  If you’re looking to hire top talent–or if you’re looking for a new opportunity, you’re likely to find some sites you’re not familiar with.

January 14, 2008

How Do You Find the Right Sales Training?

Yesterday’s post was a guest article by Bill Caskey on how much should you be investing in training.  Obviously, that is an important topic for any salesperson, professional, business owner or company.  If you don’t invest in training, you’re losing ground to your competitors who do.

But one of the questions I hear often is how does a salesperson or company know whom to hire for training?  Training is a big investment and there are thousands of trainers.  How can you determine where to spend the money other than simply picking a name you’ve heard often or resorting to luck?

Individual salespeople often complain that their company doesn’t give sufficient sales training and that they are expected to find and pay for the training themselves.  This is usually stated with more than a little hint of resentment in their voice.  However, if you’re a salesperson, every piece of training you get—whether paid for by your company or by you—will stay with you for the reminder of your life.  When you pay for training, you’re not paying to become a better salesperson for the company you sell for today; you’re paying to become a better salesperson for the remainder of your career.  You’re paying for your career development, not for the good of the company you sell for currently.  You’re investing in yourself, not the company.

Companies, on the other hand, often skimp on sales training, focusing instead on product/service training.  As Bill points out in his article, this is extremely shortsighted.  Your sales team is the source of your revenue.  They are the ones who keep your business going.  The more you can properly prepare them, the more they can produce for you.  The few thousand dollars it takes to hire a quality trainer can be more than justified with additional sales.  Depending upon your sales force size, the format of the training, and extent of the training, hiring a quality trainer can cost literally just a few thousand dollars. 

Nevertheless, once the decision has been made to make the investment, the next logical questions are what and from whom?

What:
What is actually the central question.  What do you train?  Whether you’re an individual or a company, more than likely the question isn’t really what in terms of what is the one area of training that is needed, but rather the question is probably what are the areas of training and in what order.

All salespeople and managers need constant training—and retaining in those areas they have already been trained in.  None of us knows all there is to know on any one aspect of sales and sales management, much less everything about all areas.  We work in a dynamic industry.  Marketing, prospecting, negotiation, the sales process, sales psychology and all other aspects of selling is constantly changing and evolving.  In order to maintain skills and a sharp edge one must be constantly learning—both through trial and error and through organized training from people who really know their subjects and are thought leaders in their specialty. 

Consequently, every individual salesperson and company should take the training budget they have committed to after reading Bill’s article and set out a detailed training program that starts with their most immediate need and works its way through the entire sales process. 

What is the most immediate need?  Obviously, that depends upon the individual salesperson and company.  But I suggest the most immediate need isn’t necessarily the weakest area.  Rather, the most immediate need is the area of training that can contribute the quickest to increased sales whether that is prospecting, negotiation skills, customer service, persuasion, presentation skills, or whatever.

Whom:
The whom is more difficult.  There are thousands of individual trainers and training companies.  How do you decide which is the right one?  Here are some guidelines:

1.  There Isn’t a Right One:  Although some individual trainers and training companies claim to be gurus in all aspects of selling, there isn’t a single individual trainer or company that can offer top of the line training in every aspect of selling.  There is simply too much to know, too many areas to master, too many demands for any one individual to be capable of being a top trainer in every aspect of sales.  Even companies can’t do it, as it would require a top of the line staff far too great for any individual company to handle.  Consequently, you will have to look at experts within the individual areas of selling and work with a number of experts, not just one or one single company.

2.  What is There Real Specialty?  Every trainer and training company has certain areas that are their real specialties.  It might be negotiation, or personal marketing, or the sales process, or presentation skills, or cold calling or any number of other areas.  Certainly, some may have two or three very closely related areas that are their specialty areas.  When selecting a trainer, focus your attention on someone who specializes in the particular area you are looking for training in.  Asking someone whose area is cold calling to train your team on persuasion isn’t your best choice.  Hire the cold call expert to train on cold calling, hire a persuasion expert to train in persuasion.

How do you know their specialty?  Most high quality trainers identify exactly what their specialty areas are.  However if they don’t, you still can find out.  Examine their materials and their website.  Are there areas they present more material on than others?  Do they talk about one or two areas more than others?  If they do you can probably bet those are the areas they’re most comfortable working in.

3.  Reputation:  What can you learn about their reputation?  I’m not talking about their name recognition.  There are a few trainers that are household names.  Although well known, they may not be the best trainers for you or your team.  In fact, the best trainer for you may be someone you hadn’t heard of prior to running across one of his or her articles or their website.  But just because you hadn’t heard of them doesn’t mean that you can’t qualify them.  Look carefully at their site.  Who do they work with?  Are their other trainers or industry leaders that endorse their work?  Do they have others that you recognize and respect participating with them on their site by contributing articles, interviews, or other material?  You can learn a great deal about someone by whom they associate with.  Do they have testimonials or endorsements from salespeople, managers and companies?  If so, are those giving the testimonials fully identified by name, company and location—or is their identity concealed by using tactics such as only initials or one name and one initial?  Generally those with a quality reputation have no problem fully identifying those who have given them testimonials. 

4.  Examine Their Writing:  An excellent qualifier is to read their writing.  Most quality trainers will have a body of writing that is easily accessible on their website.  Many will have published books.

Articles:  Read a number of their articles.  Don’t just read one or two.  You may accidentally pick their best or worst couple of articles and end up with a false impression.  Rather read 8 or 10 or more.  Do they make sense?  Do they have anything new to contribute or are they simply repeating the “common knowledge” of the industry?  What areas do they write about most often (that will give another indication of their real specialty)?  Does the majority of their writing reflect actionable information or is it theoretical only (you’ll probably get the same in their training)?  Have their articles been published in national industry and business publications such as Selling Power, Advisor Today, Registered Rep, Sales and Marketing Management, Sales and Marketing Excellence, and others?  National publications are very selective in what they publish so if the trainer has been published in a number of national print publications, it is an indication they have quality original contributions to make. 

Books:  If the trainer has published a book, read the book.  A book will generally contain the trainer’s most original and innovative work.  It certainly is a very strong indication of their specialization.  Who published the work?  Being published by a major business book publisher is an indication of the quality of the work.  If the book is self-published or published by a vanity press, the fact the trainer has a book can’t be used to qualify them—nor can it be used to disqualify them unless you actually read the book.  Major publishers are highly selective in the work they accept (although they do make mistakes).  Anyone can self-publish or have a vanity press publish their book.  And even though there is much junk that is self-published, some of the best books are also self-published.  Even though being published by a major publisher is a strong indication of quality—the judgment should really be based on reading the book, not who published it.

Who endorsed and reviewed the book?  Endorsements and book reviews can also give a good indication of the quality of the trainers work.

4.  Interview Them:  Once you believe you have found a trainer that is suitable for your organization, interview them.  Most trainers will be happy to spend 45 minutes to an hour on the phone discussing how they might be able to help your team.  In fact, most quality trainers will insist on an interview prior to accepting a training commitment because while you’re interviewing them, they’ll be interviewing you.  They will want to make sure the fit is right also.  And don’t interview the office manager.  If you must, insist on interviewing the person who will actually be doing the training.

5.  Pricing:  Pricing is the poorest qualification method, although one of the most often used.  Quality training isn’t cheap.  If you’re looking for bargain basement discount training, you’ll probably end up with bargain basement quality.  However, reputable trainers aren’t inclined to charge outrageous prices either.  That trainer whose website promises to change your career by teaching you the true secrets of selling if you only purchase his e-book and CD for $895 is not the person you want be spending your money with. 

There are no “secrets” in selling.  There are no magic formulas.  There isn’t anything that only one or two people know and if you’ll just fork over a huge chunk of money they’ll teach you their secrets.  There are techniques and strategies that work and that can be taught.  There are trainers who can train you and your team to use and perfect those strategies.  There isn’t anyone who can initiate you into the secret world of easy selling—although the internet if overflowing with the sites that promises those secrets.

Finding and hiring quality trainers isn’t that difficult.  It does take a little time and investigation to weed out the hucksters and find quality.  Investing in the quality trainers is worth every single penny as it will pay dividends for years to come. 

December 18, 2007

A First-Time Manager’s Story: A Lesson in Wasted Talent and Money

One would think that having spent over 5 decades living in an irrational world I wouldn’t be particularly surprised by the irrational behavior of companies and their managers.  I have to confess, I’m still stunned by some of the generally accepted behavior practiced by management at many companies. 

Although much of this behavior is associated with small and mid-size companies, we see almost very day that irrational behavior is certainly not a foreign concept in major corporate boardrooms.

This story, however, comes from a mid-size manufacturing company although the same scenario plays out at thousands of companies, including some major corporations.

Diana called me one recent morning to discuss the possibility of hiring me as her sales and management coach.  If we agree to work together, she’ll be with a new company.  She had been unemployed since the previous Friday.

 

Diana was a branch manager for a mid-sized manufacturing company.  She had worked there for two and a half years as a salesperson prior to being promoted to branch manager back in September.  She had been in her new position for only a little over 90 days before she was let go.

 

She was the top producer not only in her office but also in her region.  She knew the products cold, worked well with her clients, was always prospecting, and had started helping to train some of the newer salespeople in the region.  She was doing very well and considered something of a star in her company.

 

Then, in August, she was approached with the offer to take over the branch manager’s position that had come open when the then existing manager left the company.  He’d only been the manager for about 9 months.  He had taken over after the manager before him had been let go—after less than a year.

 

The company has numerous offices spread throughout the country; yet, there are only a handful of branch managers who have been with the company for longer than a year or two.  The majority of the company’s branch managers have been in management less than a year.  The company’s branch manager turn over is over 50% a year.

 

As is so typical for many companies, when looking for someone to promote into a first line management position, they looked at the top producer, not the best management candidate.

Diana knew this history.  She knew that managers came and went quickly.  Yet, she accepted the offer.  She assumed that the problem was that the regional managers were simply hiring and promoting the wrong people.  Her experience, she knew, would be very different.  She knew the products.  She knew the company.  She knew the customers.  She knew how to sell.  She was committed to being successful. 

She was obviously very, very wrong about what her experience would be as a manager.

As manager, she was responsible for sales.  But she was also responsible for the branch’s P&L, inventory control, and clerical and installation personnel.  The salespeople were just a portion of her new responsibilities. 

Diana isn’t dumb.  She is a very bright woman.  But she isn’t a manager—yet.  She wasn’t when promoted, and three months later, she has progressed little.

However, the fault doesn’t lie with her.  The fault is primarily with her company.

 

Like a great many companies, Diana’s company has no idea how to prepare a first-time manager.  She was given two days training—on filling out the reports.

 

She received no training on how to manage P&L.  She received no training on managing people (other than on harassment and termination regulations).  She received no training on inventory control, making personnel decisions, scheduling, working with shipping or the warehouse, or any other aspect of her new job.

 

Diana was forced to sink or swim.  She sank, just as the majority of the company’s other first-time managers.

Diana wasn’t low key when it came to asking for help.  She called her regional manager constantly.  But he didn’t have time.  September was the end of the quarter and he had to concentrate on getting sales booked and shipped—and so did she, he said.  October and November were busy times as he had to get his 2008 projections and business plan completed prior to the end of November—and by the way, where were her 2008 projections, he wanted to know. 

By December, it was too late for Diana.  She was overwhelmed.  Not with the time commitment or the schedule.  She was fine with those.  She was overwhelmed with the expectations the company had from someone who had never done these things and had nowhere to turn for help or guidance.

She is bitter, yet determined that she is going to make someone a great manager.  And she will.  She has the determination, the commitment, and the ability.  And despite her experience, her spirit isn’t broken.  And she is wiser for the experience.  But it will take quite sometime for her to become a good manager if left on her own, just as it would most anyone else.

The company is losing some of its best salespeople through its own ineptitude. Certainly, Diana’s old company isn’t the only example of this “do or die” mentality.  It tends to be the norm rather than the exception.

The truly sad part of this story is that it doesn’t have to be this way.  Developing and instituting a manager-training program need not be expensive nor need it be particularly time consuming for any one manager in the company.  As a matter of fact, a quality manager training program will save the company a tremendous amount of money every year.  Depending on the size of the company, those savings can be measured in the tens of thousands or the millions of dollars.

 

“What crap,” I hear.  “We’ve always done it this way and we’re doing just fine.  We eventually find the tough managers who can really make it.  This is a tough business, we need tough people.”

For a company to care so little about their employees and their bottom-line is stunning.  Yet, because of not wanting to invest the dollars in training, a belief that first-time managers should take the reins and prove themselves, a sincere belief that on-the-job training is the only legitimate method of preparing a manager, or just plain thoughtlessness and ignorance companies are wasting people and money.  Fortunately, most aren’t as bad as the company Diana worked for.  Most aren’t experiencing the level of first-time manager turn-over or the wasting of top producers as this company.  However, the percentage of companies wasting both talent and money is far too high.

It must be nice to have all that extra money to burn–not to mention the people that also burned along the way.

February 3, 2007

Managing a renegade

Filed under: management training,Sales Management — Paul McCord @ 7:29 am

David from Boston sent me an email asking advice on managing a sales rep who is a renegade. David says this particular rep is a big producer that he doesn’t want to lose, but she won’t follow rules, works her own hours and may or may not show up for meetings. How can he get her to conform to policy?

One of the issues might be the policy. Since she works on 100% commission, she, like most commission only salespeople, views her position not so much as an employee, but as an independent contractor. Certainly, she is getting the employee benefits and is paid as an employee, but for the most part, she only eats what she kills.

It is always somewhat difficult getting bigger producers to conform. They view themselves as more important to the company than the company is to them. Depending upon the industry, they may well be correct.

Reformulating policy might work. Establish a minimum production level at which salespeople “graduate” to a self-sustaining level. In this format, salespeople performing below the minimum level must conform to all company policies–they must attend each meeting, work designated hours, turn in call reports and all the other micro-management policies the company or manager may have put in place. Those salespeople performing above the minimum are free to run their businesses as they see fit as long as they don’t overstep any legal or ethical bounds. They are free to attend or not attend sales meetings, work their own hours; don’t have to submit call reports, etc. As long as their production is over the threshold, they are free from the cumbersome “rules.” If their production slips below the minimum, they’re back to the grind.

This format has several advantages: 1) it frees the sales manager to work with those reps below the minimum; 2) it gives the higher performing reps as sense of independence; 3) it gives the lower performing reps a desired goal to aim for; and 4) it gives the higher performing reps an incentive to keep their production up.

The key is where to put the threshold. I’ve found that something a little above the desired average works well. If your goal is say a monthly production of 9 sales per rep, put the cutoff at somewhere between 10 and 12 sales. If you figure in dollars instead of sales and your goal is say a million dollars of sales per month, put the cut off at somewhere between a million one hundred thousand and a million two hundred fifty thousand. To each the threshold, each rep must perform at an above average level, yet it isn’t so far above average that the lesser performing reps don’t believe they have a reasonable chance to reach it.

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