Wednesday, December 21, 2011

Five Things You Should Stop Doing in 2012

Dorie Clark blogs.hbr.org  December 15, 2011

I recently got back from a month's vacation — the longest I've ever taken, and a shocking indulgence for an American. (Earlier this summer, I was still fretting about how to pull off two weeks unplugged.) The distance, though, helped me hone in on what's actually important to my professional career — and which make-work activities merely provide the illusion of progress. Inspired by HBR blogger Peter Bregman's idea of creating a "to ignore" list , here are the activities I'm going to stop cold turkey in 2012 — and perhaps you should, too.
  1. Responding Like a Trained Monkey. Every productivity expert in the world will tell you to check email at periodic intervals — say, every 90 minutes — rather than clicking "refresh" like a Pavlovian mutt. Of course, almost no one listens, because studies have shown email's "variable interval reinforcement schedule" is basically a slot machine for your brain. But spending a month away — and only checking email weekly — showed me how little really requires immediate response. In fact, nothing. A 90 minute wait won't kill anyone, and will allow you to accomplish something substantive during your workday.
  2. Mindless Traditions. I recently invited a friend to a prime networking event. "Can I play it by ear?" she asked. "This is my last weekend to get holiday cards out and I haven't mailed a single one. It is causing stress!" In the moment, not fulfilling an "obligation" (like sending holiday cards) can make you feel guilty. But if you're in search of professional advancement, is a holiday card (buried among the deluge) going to make a difference? If you want to connect, do something unusual — get in touch at a different time of year, or give your contacts a personal call, or even better, meet up face-to-face. You have to ask if your business traditions are generating the results you want.
  3. Reading Annoying Things. I have nearly a dozen newspaper and magazine subscriptions, the result of alluring specials ($10 for an entire year!) and the compulsion not to miss out on crucial information. But after detoxing for a month, I was able to reflect on which publications actually refreshed me — and which felt like a duty. The New Yorker , even though it's not a business publication, broadens my perspective and is a genuine pleasure to read. The pretentious tech publication with crazy layouts and too-small print? Not so much. I'm weeding out and paring down to literary essentials. What subscriptions can you get rid of?
  4. Work That's Not Worth It. Early in my career, I was thrilled to win a five-year, quarter-million dollar contract. That is, until the reality set in that it was a government contract, filled with ridiculous reporting mechanisms, low reimbursement rates and administrative complexities that sucked the joy and profit out of the work. When budget cuts rolled around and my contract got whacked, it turned out to be a blessing. These days, I'm eschewing any engagement, public or private, that looks like more trouble than it's worth.
  5. Making Things More Complicated Than They Should Be. A while back, a colleague approached me with an idea. She wanted me to be a part of a professional development event she was organizing in her city, featuring several speakers and consultants. She recommended biweekly check-in calls for the next eight months, leading up to the event. "Have you organized an event like this before?" I asked. "Can you actually get the participants? Why don't you test the demand first?" When none materialized, I realized I'd saved myself nearly half a week's work — in futile conference calls — by insisting the event had to be "real" before we invested in it. As Eric Ries points out in his new book The Lean Startup , developing the best code or building the best product in the world is meaningless if your customers don't end up wanting it. Instead, test early and often to ensure you're not wasting your time. What ideas should you test before you've gone too far?
Eliminating these five activities is likely to save me hundreds of hours next year — time I can spend expanding my business and doing things that matter. What are you going to stop doing? And how are you going to leverage all that extra time?
Dorie Clark is a strategy consultant who has worked with clients including Google, Yale University, and the National Park Service. She is the author of the forthcoming What's Next?: The Art of Reinventing Your Personal Brand (Harvard Business Review Press, 2012). You can follow her on Twitter at @dorieclark.

Thursday, December 15, 2011

Involving Employees in Change

Organizations going through change should involve their workforce as much as possible in the process.
Employee surveys have now become standard in most organizations. Yet too often, the wrong questions are asked and the wrong things are measured. To make employees feel completely involved in the organization, "satisfaction" with the workplace alone is not enough. An employee who is satisfied with his salary or the amount of annual leave is not necessarily, of his own free will, going to lend full support to his employer and his employer's goals. Satisfaction can be connected to passivity -- employees can be satisfied and yet still be indifferent.
The stronger the engagement, the more likely the employee will act in the interests of the employer.
There is more value in optimizing the work environment, thereby increasing emotional attachment -- or engagement -- to the organization by rigorously fulfilling employees' core needs and expectations. The stronger the engagement, the more likely it is that the employee will act in the interests of the employer -- and the more engaged employees there are, the more productive the organization will be. It is possible to measure the degree to which these core needs and expectations of the workplace are met.
What to ask and where to start
Building on years of research, Gallup has developed 12 items -- the Q12 -- and employee responses to these items give information about the state of employee engagement, which in turn correlates with organizational performance. It is crucial that the results are discussed at the workgroup level as well as with the leadership and that action plans are put into place and followed through. The results act as a focus point for intense discussion within the team. (See graphic "The Employee Engagement Hierarchy.")
To ensure that the process is sustainable, the survey should be carried out regularly. Also, changes in the survey results over time need to be discussed within the team, and both action planning and follow-through must be monitored. Only when this happens will the employees feel really included and get actively involved in action planning. The results of the employee surveys can also be correlated with key performance indicators (KPIs). By combining these two types of organizational data -- the "soft" employee engagement data with the "hard" KPI data -- we can demonstrate the direct economic benefit of the actions on costs and growth.
The Employee Engagement Hierarchy
Stryker Navigation is an example of how this can be put into practice. As a company, Stryker is a global leader in the manufacturing of navigation systems for computer-assisted surgery. Stryker's machines help doctors and surgeons perform operations more quickly, more safely, and more accurately. Development and production for global markets is done at Stryker's site in Freiburg, Germany.
Decreasing motivation rang alarm bells
When the Freiburg management team registered that the engagement of its employees was decreasing, it set alarm bells ringing, as the company was facing some difficult technical issues that needed to be resolved. It was not going to be possible to produce some important products as quickly and economically as previously thought. This lack of engagement became particularly apparent in the cooperation between teams -- for example, between the Development and Production teams. While the individual departments were performing well in their own range of tasks, they were not prepared to view the manufacture of new products as a complete process that required their collaboration.
Stryker turned to Gallup to measure the employees' engagement and to help the company develop actions for improving the situation. In addition to the Q12 items, questions were asked about the collaboration between teams. The results were analyzed at the project team level and at the department level. The advantage of this approach is that it allows many different opinions on a project to be heard and discourages siloed thinking. The employees involved in a project can then work together to produce a list of actions, which serves to strengthen connections beyond departmental borders.
The most striking results were gathered in a presentation. Using Gallup's database comparisons and benchmarks, Stryker was able to see the areas in which the company was performing at excellence and those in which it was below average. Each team received its own scorecard, and internal benchmarks were used to show the teams how they ranked within their department as well as within the company as a whole.

How Many Customers Did You Lose Today?

Rita McGrath  blogs.hbr.org Dec. 7, 2011


My theme this month appears to be tone deafness among business designers. Cue Bank of America!
But genuinely, one of the most vexing dilemmas for senior executives is being plugged in to what is actually going on in the front lines of their business. It's all too easy to miss critically important customer experience information when one is engaging in the day-to-day grind that constitutes an executive's job. All the same, not being attuned to the way your business is perceived by customers can lead to a lot of damage.
Here's a recent example. My husband and I were traveling from Edinburgh to London, where we were to attend the Thinkers50 gala dinner, on a Monday in November. Our train was due to depart in 15 minutes, and my husband was anxious for a coffee. Aha! Conveniently located next to Track 2 was a Café Nero, one of the more ubiquitous brands of coffee shop that grew up in the wake of Starbucks' enviable success. I was given the task of watching the luggage; he went to get coffee.
Here's where it gets interesting. From my vantage point just opposite the entrance, I was able to observe customers coming and going. I was fascinated to see how many of them came and went — without buying anything — because they took one look at how long the line was and abandoned their coffee mission then and there. Intrigued, I started to count. Fully 3 people looked at the line and bailed on the thought of purchasing for every 1 person who actually made a purchase. Imagine — the café would have increased its business by 300% if everybody who thought they might like a coffee had been converted into a coffee buyer. And this is at a train station, where people risk missing a train if they stand around!
My guess is that these lost sales won't even be picked up in a corporate database. After all, how do you identify the dissatisfaction of people who were potential customers but ended up not being customers at all? How do you measure a non-event that should have been a sale?
I'm not picking on Café Nero, particularly, or the friendly people behind the counter. The business issue, however, is that their potential business was more than cut in half — in fact, cut by 75% — because they missed the obvious about buying coffee at a high-end café in a train station. This sort of thing happens over and over again because business designers miss one or more of customers' critical decision triggers. The companies that can fix this have the potential to create real profits by designing better, more complete customer experiences.
So, here's the challenge — how do you get the people who make strategy and resource allocation decisions to deeply understand what is actually happening on the front lines of their business?

Columbia Business School professor Rita McGrath studies innovation, corporate venturing, and entrepreneurship. Her latest book is Discovery-Driven Growth (2009).

The 5 basic manners you need to know in business

Tom Searcy cbsnews.com Dec. 5, 2011

I stand up when a lady arrives at or leaves a table. I know, that is nostalgic and even possibly risky as it might be perceived as sexist. However, it is one of a set of manners I was taught as a child that I still follow. Holding doors, taking hats off indoors, pulling out chairs and lowering voices all seem to be quaint throwback ideas that are dying rapid and unceremonious deaths.

Because of diversity training, political correctness and the changing mores of society, I think the clarity of what are considered to be "good manners" has become murky. The basic guideline of "treat others as you would wish to be treated" is less of the clear path to follow as individualism changes the interpretation.

Manners are still important and can be differentiating, often times in the negative. When you make a mistake, it sticks out and is memorable. For that reason, there are certain things that you must get right.

1. Use of names -- Get the names right. Phonetically write them down and make certain that anyone who is prospect or client facing knows their names. Spelling, correct titles and deciding whether to use a nickname or proper name are all on the "must-get-right" list. I have seen big sales blown up because of a repeated misspelling of a key player's name.

2. Confirm before you proceed -- Ensure that you have agreement at each step in a meeting, tour, phone call or visit and that all of the participants have their questions answered before going to the next set of ideas or concepts. Adults not only stop listening to you when they get stuck or are in disagreement with what has been put forth, they also begin building resentment towards the speaker who proceeds without clearing up the issue.

3. Declare your accountability and keep it -- At the end of each meeting, visit, or call. It is your responsibility to declare what comes next. It is rude to ask the typical question, "What are the next steps?" You asked for the meeting, now you need to be able to provide an encouraged path to follow.

4. Host well when you host -- If you are feeding your visitors, feed them well. Creature comforts including temperature, lighting, drinks and room conditions are all noted. In the better sales organizations, even when those companies are tiny, the handling of a visitor is handled like a guest at Sunday dinner. Even the little details can make the person feel honored and valued.

5. Be gracious as a guest -- Diana Ross may be able to pull of a diva routine, but you can't. Your goal is to be gracious for what you receive. I am amazed at the number of people who miss the most basic of "Please" and "Thank you" courtesy when support staff brings them water or provides help with the projector. Buyers notice and cast a broad net of perception as to what you and your company are like based upon how you handle the simple courtesies of interacting with support staff. Be gracious in every contact.

These manners probably seem like common sense. They are to the degree you get them right. They are deal killers when you get them wrong.

Tom Searcy is a nationally recognized author, speaker, and the foremost expert in large account sales. Tom is the author of RFPs Suck! How to Master the RFP System Once and for All to Win Big Business and the co-author of Whale Hunting: How to Land Big Sales and Transform Your Company.

To Grow, Leave What You Know Behind

John Coleman  blogs.hbr.org December 6, 2011


Last year, I was fortunate to moderate a fascinating panel discussion with Harvard's Center for Public Leadership on the topic of "Next Generation Leadership." One of the panelists, Rosalinde Torres, encouraged us to ask the following question: "What has made you successful in the past that you need to change to move forward as a leader?"
As we go through different phases in our personal and professional lives, we're called upon to adapt, to marshal skills different than those we've used in the past. And in the modern world — where the pace of technological and social change is as fast as at any time in human history, those demands on our adaptability are greater. An exceptional grocery store cashier, for example, will need a different set of skills to be a store manager as her career evolves. And those in computer repair have had to learn and unlearn a myriad skills over the past 30 years to keep pace with the changes happening around them.
So what skills do you need to modify or leave behind to grow? For me, a few suggestions come to mind.
Stop seeking answers; start asking questions. In our 20+ years of education, we have been trained to get ahead by having the right answers — to tests, to class questions, to business problems. But the most difficult challenges require leaders who can identify and ask the right questions.
The world needs great problem-solvers, but it also needs people who can make sure their organizations focus on the right problems and miss nothing in the process. One of the more intellectually impressive senior executives I've worked with asked questions twice as often as he offered answers. As a result, the people who worked for him always took full responsibility for their work — because they knew they'd have to answer a stream of deep and thoughtful questions as soon as they entered the boardroom. This leader's questions not only showed his thoughtfulness and helped drive deeper solutions, but they created ownership among the people who worked for him.
Focus on people, not problems. Junior businesspeople often work on heavily analytic, stand-alone problems. They're asked to build models and plans — to find the "right" solution. But the most difficult problems can't be solved and implemented by individuals alone. Good leaders can't just get the right answer. They have to involve people — those who will ultimately implement their programs and those teammates who can help them solve the problem faster and better than they could on their own.
When an individual becomes too rigid about his or her "own" solution at the expense of working collaboratively with others, that individual often loses the momentum to generate change and misses the valuable insights of his or her peers in the process. A famous example of collaboration in the face of a difficult problem — no matter your thoughts on the project itself — is the Manhattan Project. The project, which ultimately led to the construction of the first atomic bomb, was led by General Leslie Groves. Knowing he couldn't handle the project by himself (and neither could anyone else), he called upon as many great minds and competing perspectives as possible to come to the right solutions collaboratively and created an environment in which they could implement against that plan.
Stop working as a generalist. Many of us have lived life so far as generalists — "Jacks of all trades," so to speak — focused broadly on a variety of skills, functions, or industries. Sure, we may have picked some topics on which to become knowledgeable, we've chosen professions, and we've completed "majors" or built specific skills. But by-and-large, we've cast our nets wide, learning broadly to gain context about the world around us. At some point, however, most of us will need to generate proficiency in a very specific topic, both because it makes us valuable sources of expert knowledge and teaches us the habits of mind to generate deep insight.
Take, for example, Steve Jobs's early obsession with calligraphy. After dropping out of Reed College in 1972, Steve spent months immersed in calligraphy, which, at Reed, was an incredibly strong program. In his words, "I learned about serif and sans serif typefaces, about varying the amount of space between different letter combinations, about what makes great typography great. It was beautiful, historical, artistically subtle in a way that science can't capture." That experience not only helped Steve build the practical toolkit to create beautiful text and designs, but also improved and sharpened his mind, attention to detail, and his fascination with design.
You may be at a different stage in life — a great "people" manager who needs to work on her problem-solving or a specialist who needs to broaden his experience — but I've found that as my professional career evolves to include more collaboration, management, and implementation, the skills I've depended on, while helpful in their time, need to evolve for successful growth. These adjustments provide new areas of focus that may be common to a number of young leaders who are making the transition from individual contributor to manager as they advance in their careers.
What do you think? In your own work life, what are the traits that have made you successful in the past that you'll need to leave behind to be successful in the future?
John Coleman is a coauthor of the new HBR Press book, Passion & Purpose: Stories from the Best and Brightest Young Business Leaders.

People Are Not Your Greatest Asset

Anthony J. Bradley and Mark P. McDonald,  blogs.hbr.org. Dec. 6, 2011

Many of us in business have heard the popular aphorism, "People are your greatest asset." Some of us may even believe it. But is this sentiment reflected in our corporate cultures and the way our leaders lead? For the most part, no — and there's a reason for that.
People are not your greatest asset. Even great people are not your greatest asset. In fact, great people can be your greatest liability. If Enron wasn't enough evidence of this, the 2008 financial crisis has now given us plenty more. What about Lehman Brothers, AIG and Countrywide? Arguably, these companies employed some of the smartest business people not only in the room but in the world, and yet those same folks took their firms to ruin (or near it) and came close to causing a collapse of the U.S. economy.
So if it's not people, what is your greatest asset?
It's how you empower your people. Think about it. What is the primary purpose of a business organization? To assemble a group of people, who previously may have had no association, and empower them to accomplish productive work toward the organization's objectives. More effective empowerment typically equals more productive work. As leaders and managers, we are familiar with empowering people. We organize them into divisions, units, groups and teams. We provide goals and incentives to motivate them. And we enable them with authority, tools, resources and processes.
Social media ushers in new ways to enhance your greatest asset, because it is about empowering people to collaborate at unprecedented scale. With powerful implementations of social media, we motivate people to form communities around a meaningful and common purpose . We enable them with new technology, seed content, and guidance on desired participation. The aim is to facilitate "mass collaboration" and its accompanying behaviors.
For our book on the social organization, we studied hundreds of social media implementations and identified a set of key mass collaboration behaviors. Understanding them is critical to successfully engaging and empowering people.
Collective Intelligence
Collective intelligence is the meaningful assembly of relatively small and incremental community contributions into a larger and coherent accumulation of knowledge. Collective intelligence is not new, but the mass collaboration enabled by social media provides it at scales never before possible. Even the most modest individual contributions can be tremendously valuable when meaningfully combined at scale. Wikipedia, YouTube and Flickr are all social Web examples of collective intelligence. Each Wikipedia article by itself is relatively insignificant, but a million articles collected and linked together is highly powerful.
Expertise Location
Expertise location involves seeking and finding specific expertise in the masses of people and the often-staggering amount of available content. One view of expertise location is almost the opposite of collective intelligence. It is "selective intelligence," where the goal is not to collect numerous small contributions from many, but to find just what is needed. Crowdsourcing is a well-known example of expertise location.
Emergent Structures
Emergent structures are structures such as processes, content categorization, organizational networks and hidden virtual teams that are unknown or unplanned prior to social interactions, but that form naturally as activity progresses. The goal of emergent structures is to gain a better understanding of the true "nature of things" to more effectively organize, guide or interact with a community or its efforts. Social media, applied with transparency, can surface these structures.
Interest Cultivation
Interest cultivation is the forming of communities around a shared interest, with the goal of indirectly deriving enterprise value. Social media facilitates the mass sharing of interests like never before. Enterprises often pursue interest cultivation with the aim of engaging customers to enhance product/service utilization and enjoyment, improve delivery and indirectly spur sales.
Flash Coordination
Flash coordination involves rapidly organizing the activities of a large number of people through fast and short mass-messaging, often spread virally. By effectively employing flash coordination, enterprises can more quickly marshal a powerful and sophisticated response to an important occurrence. We are now seeing the emergence of a new set of business sense-and-respond systems inspired by social-media-enabled flash coordination.
Relationship Leverage
Relationship leverage is the practice of effectively managing and deriving value from a prodigious number of relationships. Relationship leverage strives to maximize the strength of numerous weak ties and the power of unbalanced relationships. Facebook is all about relationship leverage. We can keep numerous people up to date on what we are doing and thinking with minimal effort. We only need to respond to those who choose to interact around something we exposed. We may sacrifice intimacy for scale, but that is the trade-off with relationship leverage.
Examine these behaviors in the context of your business goals, major collaboration challenges, core business practices, etc., to determine where and how mass collaboration might empower your people to deliver strategic value to your organization and enhance what is truly your greatest asset.
Anthony J. Bradley, group vice president, Gartner Research, and Mark P. McDonald, group vice president and Gartner Fellow, Gartner Executive Programs, are co-authors of The Social Organization: How to Use Social Media to Tap the Collective Genius of Your Customers and Employees. You can follow them on Twitter at @BradleyAnthonyJ and @markpmcdonald.

The best way to recognize employees

Jeff Haden December 15, 2011 cbsnews.com

(MoneyWatch)
According to a SHRM survey conducted earlier this year, most organizations have employee recognition programs in place. So why don't many of those programs work?

Effective employee recognition isn't based on following arbitrary guidelines or creating insincere recognition systems. That's why so many formal recognition programs only pay lip service to praising employees for their efforts.

Your small business doesn't need a formal program in place to recognize and praise employees. Just follow these tips and it's easy to give the recognition your employees deserve:

See every employee as an individual. Every employee responds differently to recognition. Many appreciate public praise. Others shrink from the limelight. Don't pass out praise on your terms; recognize each employee in the way that produces the greatest impact for that person.

Assume too soon is never soon enough. There's an inverse relationship between recognition and performance: The longer you wait, the lower the impact. Praise employees immediately. Don't wait for "the right time," because the only right time is right now.

Provide details that show you know. Generic praise is nice, but specific praise is wonderful. Don't just tell employees they did a good job. Tell them how they did a good job. Not only will they appreciate the recognition, they'll also know you pay attention to what they do.

Be genuine. We've all received recognition that felt forced, like the boss who walks around once a month and says, "Thanks for your efforts." Only recognize hard work and achievement when you mean it.

Skip constructive criticism, at least for now. Say, "You did a great job, but next time..." and all the employee remembers is what they did wrong or could have done better. Follow up at another time with constructive feedback. Let the warm glow of praise be the feeling the employee carries with them.

Actively find employees to praise. We're all trained to spot issues, hunt down problems, and eliminate errors. We're usually not trained to find people doing things well. Spend part of every day looking for positives. (You might be surprised by how skilled your employees really are.)

Leverage the surprise factor. Unexpected recognition is incredibly powerful. Winning the employee of the month award is great, but being recognized in the middle of a meeting for outstanding achievement can feel even better.

Spot opportunities to share the "praise wealth." It's easy to recognize your great employees. They're great because they perform well. Look for ways to praise less stellar performers when they deserve the recognition. Sometimes all an average performer needs is a little attention and encouragement.

And keep in mind providing praise will get easier over time, because when you do a better job of recognizing employees they naturally perform better - and that gives you even more achievements to recognize.

Wednesday, December 7, 2011

3 habits of highly effective leaders

By Amy Levin-Epstein www.cbsnews.com  Nov. 30, 2011


Are you a leader? Whether you're an executive or an entry-level employee, leadership is a truly essential skill that can propel you and your career to bigger, better things.
That holds true for both leaders of large teams and self-employed people who are guiding a team of one. I recently spoke to leadership consultant Jennifer Garvey Berger, whose new book, Changing on the Job: Developing Leaders For a Complex World, is already garnering praise from industry executives and academic experts at Microsoft, Fidelity, Harvard University and Boston College. Here are some of her insights on what good leaders do -- and what separates them from the pack.

What are three habits a competent leader practices regularly?

The first habit is asking different questions. This is about expanding your curiosity. The second habit is taking multiple perspectives. This habit is about listening well and understanding the perspectives of others. The third habit is looking at systems, and that one reminds us that while the human brain likes to break things down into manageable parts, it is the unwieldy combination of those unmanageable systems that opens us up to new possibilities.

Do even the best leaders make mistakes?
Yes. They'll get mad and make mistakes and hurt people. And sometimes they won't even recognize that they've done that. But the best leaders never stop learning, never become so arrogant or complacent that they stop believing they have room to grow. They never become so hopeless or discouraged that they believe it's not worth the effort. John F. Kennedy wrote that "leadership and learning are indispensable to each other." The good leaders (almost) never forget this.

What else separates great leaders from everyone else?

They create environments where people can be at their biggest. We all have the experience of people who make us smaller and less capable versus those who make us more capable in their presence than we are without them. Good leaders remember that their perspective isn't the only truth, and they welcome entire human beings into the workplace -- inconvenient emotions, vague hunches, thoughtless mistakes and all. When people see us in our messy wholeness, we can spread out and become bigger.

If I want to become more of a leader today, how should I start?


The most important thing? Believe that you can change and begin to look for the ways you might need to by asking for feedback from others. Forgive yourself for your limitations (rather than denying them or beating yourself up about them), and then seek to grow beyond the way you understand the world today.

Friday, December 2, 2011

How to Get Past Your Customer's Lies

Alessandro Di Fiore November 30, 2011 blogs.hbr.org

It's well established market research fact that customers lie.
Business history offers innumerable stories of companies that launch whizz-bang new products on the basis of extensive quantitative customer research only to find that the customers didn't end up doing what they said they would.
But how else are companies to get a handle on what customers will do? To see an alternative approach, take a look at Geox, an innovative European footwear company. Founded in 1995 it has a turnover today of nearly € 900 million, a 20% profit margin (even in the crisis) and its products are distributed in more than 100 countries.
Here's how Geox happened. During a business trip to Reno, Nevada, to promote the family's wine business at a trade fair, Geox's founder, Mario Poletti Polegato, decided to take a walk. After a while his feet began to swell in the heat and irritate him. To cool them down he poked a couple of holes into the rubber-soled trainers he was wearing, and soon felt better. He had just discovered a simple way to let excess heat out of his shoes.
Now the invention of the rubber sole, over 50 years ago, was an important achievement which changed the lifestyle of millions of people. It made shoes impermeable, thus allowing people's feet to stay dry — especially in winter. The problem was that they didn't allow your feet to breathe. For Polegato, of course, this wasn't an immediate problem because it doesn't rain a lot in Reno. But millions of people had to face the uncomfortable choice of having hot sweaty feet or cold, wet ones.
The walk got Polegato thinking about this dilemma and, once home, he started experimenting in the workshop of a small footwear company in his town in the north east of Italy. After a few months, the idea became reality. Geox found a way to micro-perforate the rubber sole around the area of the foot with the highest concentration of sweat glands. Since a water molecule is 700 times smaller than a water droplet, vapor can still escape even though the sole remains waterproof, so Geox-clad feet are both cool and dry.
Michael Bloomberg did something very similar. Before becoming mayor of New York, he was considered a visionary business man for the insight behind his company's success. Providers of financial information needed to offer analytics to help users make sense of the data. The idea should have been obvious to anyone who had ever watched and experienced "a day in the frustrations of the trader" using Reuters or Dow Jones Telerate. Traders used paper, pencil and calculator to run analytics off the Reuters or Telerate raw data then made their trading decisions. As a former trader, Bloomberg had lived the frustrations of working that way and it was from that experience that he saw the market gap he filled.
These cases and many others (Netflix, Intuit ...) highlight an important managerial lesson. Time and again I've seen that a strategic insight into customer needs is very seldom the result about data crunching or analytics hype of today.
All you need is to put yourself few times — just eight or ten, my research suggests — into customer's shoes. Observing customers while they are using existing products and services is often the only way to detect latent frustrations that they may not even be consciously aware of. And it was in removing those unspoken frustrations, undetectable in customer surveys, that innovators like Polegato and Bloomberg found their opportunities.
Of course, it's not quite as simple as that. Where the main challenge comes is about who does those probes and observations. These people have to be smart about business, strategy, and people because they've got to be able to spot the really significant behaviors and issues. And the best people to do that are going to be the folks in the top management team: the CEO and the people just below him, who have the strategic understanding needed to recognize the opportunity and the authority to act quickly on it like Polegato and Bloomberg.
Bottom line, if you want to start a billion dollar business you can't rely on market researchers and consultants to find the strategic insight for you. If they could, why would they give it to you? Real market research should be a core part of any top executive's job and they should be going out doing observations and explorative probes of customers — preferably incognito — at least twice a year for a few days. That's how entrepreneurs work and it's what CEOs should do as well.
Alessandro Di Fiore is the CEO of the European Centre for Strategic Innovation, based in Milan.

Thursday, December 1, 2011

Stop Competing to Be the Best

"Compete to be Unique"

Joan Magretta Nov. 30, 2011 blogs.hbr.org

Very Inciteful Message

With Cyber Monday, the tablet wars kicked into full swing. Which one is the best? Is it the iPad? The Kindle? Who has the best technology? The best distribution? Who's the best overall? For most people, "being the best" is what competition is all about. So General Motors CEO Dan Akerson was simply echoing popular sentiment when, on the day the new GM went public, he threw down the gauntlet: "May the best car win!" he told reporters. The phrase reflects an underlying belief about the nature of competition that feels so intuitively correct that it is almost never examined or questioned.
But if you want to win, says Michael Porter, this is absolutely the wrong way to think about competition. In fact, it's practically a guarantee of mediocre performance.

The first problem with the competition-to-be-the-best mindset is that, in the vast majority of businesses, there is simply no such thing as "the best." Consider a business as prosaic as seating for airport waiting areas. You would think that there would be a "best" here — standardized, functional seating. Well you would be wrong. Different airports have different needs. Some want waiting passengers to shop. They don't want seats that are too comfortable. Some need the flexibility to reconfigure waiting areas. They don't want long rows of fixed seats. Many airports have to watch their spending. But others — airports in the Middle East, for example — have snapped up luxury designs. Some airports value seats built to take extraordinary abuse. London-based OMK makes "prison-worthy" seating, the industry's highest standard, using self-sealing polyurethane that can withstand a stabbing without showing the knife scar.

If there is no "best" airport seat, now think about all of the industries in the economy. In how many does the idea of "being the best" make real sense? The best hotel for one customer is not the best for another. The best sales encounter for one customer is not the best for another. There is no best car. There is no best art museum. No one best way to promote environmental sustainability.

Yet, it's a pervasive idea. Management writers — and leaders seeking to inspire — regularly reinforce it by using colorful metaphors from warfare and sports. These lend emotion and drama to business competition. But, they are misleading.
In war, there can be only one winner. Not so in business, where companies like WalMart and Target can thrive and co-exist, each offering a different kind of value to its customers. In sports, there is just one contest with one set of rules. Not so in business, which is more complex and open-ended. Within an industry, there can be multiple contests, not just one, based on which needs are to be served. McDonald's is a winner in fast food, specifically fast burgers. But In-N-Out Burger thrives on slow burgers. Its customers are happy to wait ten minutes or more (an eternity by McDonald's stopwatch) for non-processed, fresh burgers cooked to order.
Here's the problem: When rivals all pursue the "one best way" to compete, they find themselves on a collision course, trapped in a destructive, zero-sum competition that no one can win. Everyone in the industry follows the same advice. Companies benchmark each other's practices and products. Customers, lacking meaningful choice, buy on price alone. Profitability deteriorates.

Instead, Porter urges a different kind of competition: compete to be unique. Focus on innovating to create superior value for your chosen customers, not on imitating and matching rivals. Give customers real choice and price becomes only one competitive variable. But understand that doing this profitably means accepting limits and making tradeoffs — you can't meet every need of every customer. Nothing is more absurd — and yet more widespread — than the belief that somehow you can do exactly what everyone else is doing and yet end up with superior results.
Grasp the true nature of business competition and you'll see that the performing arts provide a better analogy than war or sports. There can be many good singers or actors — each outstanding and successful in a distinctive way. Each finds and creates an audience. The more good performers there are, the more audiences grow and the arts flourish. This approach produces positive sum competition. Companies that do a good job can earn sustainable returns because they create more value. At the same time, customers benefit by getting real choice in how their needs are met.

What's your organization's underlying model of how competition works? It's a question well worth asking. If "best" is your model, you will follow the herd. Copycat products and services will always make sense. Growth at any price will seem reasonable. Acquisitions will always look better than they really are. How you think about competition will define the choices you make and your ability to assess those choices critically.

Joan Magretta is a senior associate at the Institute for Strategy and Competitiveness at Harvard Business School. She is the author of What Management Is
and the forthcoming Understanding Michael Porter: The Essential Guide to Competition and Strategy.

What's in a Name - The Generations of the Past 100 Years

generation name
born (range, loosely)
characterizing features typically described (loosely)
The Lost Generation
1880-1900
The term reflects the unthinkable loss of human life in the First World War- approaching 16 million killed and over 20 million wounded. This happened in just four years and five months (1914-1918). We cannot imagine this today.
The Interbellum Generation
1900-1913
Interbellum means 'between wars', referring to the fact that these people were too young to fight in the First World War and too old to fight in the Second.
The Greatest Generation (The Veterans)
1914-1930
These people are revered for having grown up during the Great Depression and then fought or stood alongside those who fought in the Second World War (1939-45). As for other generations of the early 1900s, life was truly hard compared to later times.
The Silent Generation
1930-1945
Characterized as fatalistic, accepting, having modest career and family aspirations, focused on security and safety. These people experienced the 1930s Great Depression and/or the 2nd World War in early life, and post-war austerity in young adulthood. They parented and provided a foundation for the easier lives of the Baby Boomers.
Baby Boomers
1946-1960
Equality, freedom, civil rights, environmental concern, peace, optimism, challenge to authority, protest. Baby Boomers mostly lived safe from war and serious hardship; grew up mostly in families, and enjoyed economic prosperity more often than not. Teenage/young adulthood years 1960-1980 - fashion and music: fun, happy, cheery, sexy, colourful, lively.
Generation Jones
1953-1968
Acquisitive, ambitious, achievement-oriented, cynical, materialistic (a reference to the expression 'keeping up with the Joneses'). Generation Jones is predominantly a US concept, overlapping and representing a sub-group within the Baby Boomer and Gen-X generations.
Generation X (Gen-X)
1960-1980
Apathy, anarchy, reactionism, detachment, technophile, resentful, nomadic, struggling. Teenage/young adulthood years 1973-2000 - fashion and music: anarchic, bold, anti-establishment.
MTV Generation
1974-1983
MTV Generation is a lesser-used term for a group overlapping X and Y. Like Generation Jones is to Baby Boomers and Gen-X, so MTV Generation is a bridge between Gen-X and Y.
Generation Y
(Gen-Y or Millennials)
1980-2000 and beyond (?)
Views vary as to when this range ends, basically because no-one knows. Generational categories tend to become established some years after the birth range has ended. Teenage/young adulthood years 1990s and the noughties - fashion and music: mainstream rather than niche, swarmingly popular effects, fuelled by social networking and referral technology. Also called Echo Boomers because this generation is of similar size to the Baby Boomers.
Generation Z (Gen-Z or perhaps Generation ADD)
after Gen-Y
Too soon to say much about this group. A name has yet to become established, let alone characterizing features. Generation Z is a logical name in the X-Y-sequence. Generation ADD is less likely to establish itself as a name for this cohort - it refers ironically to Attention Deficit Disorder and the supposed inability of young people in the late noughties (say 2005-2009) to be able to concentrate for longer than a few seconds on anything. Gen-Z is difficult to differentiate from Gen-Y, mainly because (as at 2009) it's a little too soon to be seeing how people born after Gen-Y are actually behaving, unless the end of the Gen-Y range is deemed to be a few years earlier than the year 2000. Time will tell.


Saturday, November 19, 2011

What Your Boss Needs to Know About Engagement

On October 28, Gallup posted an article with the sobering headline "Majority of American Workers Not Engaged in Their Jobs." This should disturb every American worker and business leader. In an earlier report, Gallup estimated that worker disengagement accounts for more than $300 billion annually in lost productivity in the U.S. alone. In fact, according to Gallup, only one-third of workers are enthusiastic about the work they do and feel they are contributing to their organizations in positive way. Even worse, middle-aged and highly educated workers are least likely to be engaged. These are precisely the people who should be operating at peak creativity and productivity.
So, what is going on? A survey by the American Psychological Association (APA) provides some insights. For one thing, 36% of workers feel stress, and nearly half of those say it's because of low wages. This is not surprising, given that real wages have remained stagnant while worker productivity has steadily climbed over the past two decades (pdf). But pay isn't the major source of dissatisfaction. Workers reported that they were discontented at work because of limited opportunities for growth or advancement (43%), heavy workload (43%), unrealistic expectations (40% ), and long hours (39%).
Perhaps the most sobering finding of the APA survey is that 48% of employees do not feel valued at work. So, although companies often tout the importance of their people, the everyday experience of many doing the work is something quite different. Inevitably, people feel underappreciated, disrespected and disengaged. The economic cost to organizations is unacceptable, and the emotional cost to individuals is unforgivable.
What can be done? In his book, The Coming Jobs War, Jim Clifton, the chairman of Gallup, suggests some macro-level solutions. He says that countries and cities must produce good jobs. To do this, society must invest in the education of those future job creators, and in the education of those who will fill those good jobs. And companies must stop trying get by with too-lean workforces. As the APA survey shows, much of the engagement-killing stress that workers feel comes from being asked to do too much with too little.
Our own research points to some micro-level solutions. In The Progress Principle, we report that, of all the workday events that engage people deeply, the single most important is simply making progress on meaningful work. And we found two classes of actions that managers can perform each day to drive progress and engagement: catalysts and nourishers. Catalysts, such as providing clear goals and necessary resources, directly support progress in the work. Catalysts impact engagement indirectly by facilitating progress.
Nourishers act directly on engagement by boosting inner work life — the continuous flow of emotions, perceptions, and motivations that people experience throughout their work days. Nourishers include actions like showing respect, offering recognition for good work, and providing emotional support when people confront particularly difficult situations. If employees receive nourishers regularly, their inner work lives soar. They are happy, they perceive their organizations positively, and they stay motivated - in other words, they are engaged in their work.
So, if people are to be fully engaged at work, they must first have meaningful work to do. This does not necessarily mean that leaders must articulate a lofty mission, like curing diabetes. It does mean that all employees should see how their daily actions contribute to something of value, like a useful product or service. Second, there should be a regular supply of catalysts to progress, so that people can succeed at that meaningful work.
And finally, for employees to stay fully engaged, their inner work lives must be consistently nourished with respect, recognition, and encouragement. Simple, no-cost managerial actions could do much to improve the engagement of that 48% of workers who today feel undervalued. As evidenced in the words of this software developer from our research, even a brief interaction can make a big difference:
I got a nice 'attaboy' from the Project Manager about the work I put in on the database [...] I've been working so hard on. She seemed to be really pleased, and she thanked me for sticking with the assignment. Her nice words made my day go much better!
Do you feel undervalued and overburdened at work? Whether you are a leader or individual contributor, what are your solutions to this crisis?

Teresa Amabile and Steve Kramer  Nov16, 2011 blogs.hbr.org

Teresa Amabile is Edsel Bryant Ford Professor of Business Administration at Harvard Business School. She researches what makes people creative, productive, happy, and motivated at work. Steven Kramer is a psychologist and independent researcher. They are coauthors of The Progress Principle (Harvard Business Review Press, 2011); visit its website.

Thursday, November 17, 2011

How to tell a newly hired employee may not cut it

(MoneyWatch) Jeff Hayden Nov 14, 2011 cbcnews.com

Every small business owner who makes hiring decisions makes mistakes. No matter how rigorous your screening and interviewing process, what you thought you saw is not always what you eventually get.

During the "new hire honeymoon period" it's easy to miss the signs a new employee won't work out as well as you hoped, especially since newly hired employees typically start a new job at the top of their games. In terms of attitude, effort, and enthusiasm, you usually get the very best a new hire has to offer.

That's why any problems that do surface during the first days are usually the tip of the poor-performing-employee iceberg.

Here are ways to tell almost immediately that you may have made a poor hiring decision:

Take me down to social media city*: Most employees assume Facebook, Twitter, and Internet access for personal reasons are a given, and almost every employee takes a little time out of their day for non-work inter-webbing. Still, when you catch a new employee during non-break periods, say, updating their Facebook status (especially if the new status is, "Why am I working here?") you can feel sure personal social media time will only increase in the future. A solid work ethic is established over time; a poor work ethic can be spotted almost immediately.

The lights are on but no one's home: An employee who is late or absent within the first few weeks will often be a chronic attendance offender. I once analyzed attendance records for over 1,000 employees over a five-year period and found employees who were late or absent in the first week of employment had a 35% likelihood of violating attendance standards and a 45% likelihood of lingering, for years, within one or two absences of violating standards. While there are certainly exceptions, the employee who misses one day early on typically misses a lot of days later.

"I would, but...": Most people a new job assuming the resources provided are the resources necessary (or simply available), and will only ask for additional tools when justified. (How do you really know what you need until you fully understand your job?) The employee who instantly needs a better computer, different desk, specialized software, etc. will tend to find external reasons why their performance is poor instead of looking inside themselves.

Assertiveness-squared. While new employees should definitely voice their opinions, raise concerns, and stand behind their reasoning and decisions, they should also take it slow and feel their way through interpersonal and organizational dynamics so they can build positive relationships. A new employee who takes too strong a stand, argues too loudly and long, or even borders on confrontational is likely to be a handful once the new hire honeymoon period is over. Quietly assertive is good; loudly assertive, especially in the first few weeks, means you may have hired someone who will always be a real handful.

"Here's what we used to do...": New employees should bring skills and experience from previous positions. But no one wants to hear how a previous employer did things, especially when a previous employer allegedly did those things better. An employee who frequently says, "When I was at my old job we used to..." has not made the mental transition to your business. Watch carefully for signs they continue to struggle with that transition; you don't want your business to be their rebound business.

4 things a manager should never say

Amy Levin-Epstein  (MoneyWatch) Nov. 14, 2011 cbsnews.com

People listen to leaders. It's one of the qualities that helps define them as leaders -- and their followers as followers.

But because of this, leaders need to mind what they are saying, and avoid knee-jerk responses. "A leader's brain must always work things out ahead of his mouth speaking them," says Patrick Alain, author of The Leader Phrase Book: 3000+ Phrases That Put You In Command.
To help wannabe leaders cement their status, Alain has compiled a shortlist of four phrases that a good leader will never, ever say. Avoid these lines and people will be more likely to follow your lead.

'That's impossible'

This flip statement will hurt your credibility in two ways, says Alain. "It is inherently negative and makes the individual who uttered the statement or remark feel like they need to justify it immediately. [Also] using this phrase in excess can expose the user as someone who wantonly trivializes others and their work, even if they don't really mean to."
A better choice, according to Alain? "I find that hard to believe." Truthful, yet not dismissive.

'[John Doe] is a jerk'

Randomly gossiping about or putting down others will kill confidence in you as a respectable leader. "Even just venting frustration near the coffee machine or in a chat window can prove disastrous. Anyone with an axe to grind can forward your vent simply by clicking [send]," says Alain.
If you need to discuss a problem employee with another colleague, discuss it with the appropriate person -- privately and in a constructive way. For instance, "I have a tough time seeing eye to eye with [John Doe]," says Alain. John Doe may eventually hear your concerns, but through the right channels -- not the grapevine.

'My way or the highway'

Real leaders don't give ultimatums. "Ultimatums like this one don't usually solve anything. In fact, open threats often lead to grievances and even litigation," says Alain.
If you really have a problem with an insubordinate direct report, use the proper steps (and guidance from HR) to work through the issues. You may still need to let someone go -- but you'll likely sleep better at night knowing you gave him official notice of his shortcomings and tried to help him improve. And others will likely notice how you handled this situation.

'I'm always right'

Using this phrase is the equivalent of taping the word "narcissist" to your forehead. "Anyone tempted to use this phrase runs the danger of being perceived as distant, haughty and self-aggrandized," say Alain.
That said, there are some situations, particularly if you are in a decision-making position, where you really need to take control. If you must leave no room for discussion, Alain suggests starting with, "I'm sure you can agree with me when I say ..."

To Win Customers, Get Out of the Way

Charles Nardello Nov. 11, 2011 blogs.hbr.org


Superior operational excellence cannot be achieved or maintained with an iron fist. It needs to be organically grown and fostered throughout the company.
I oversee all aircraft, flight and customer service operations at Hawaiian Airlines. For any company, and especially any airline, operational excellence and customer service go hand in glove. I'm thankful that those I work with are predisposed to hospitality — it's a feature of Polynesian culture. But although our company has been known for its high standards of personal care for the past 82 years, we haven't always been known for our reliability. However, we are now routinely ranked first by the US Department of Transportation among all airlines for on-time performance and fewest cancellations as well as garnering top marks for best baggage handling and fewest customer complaints.

So how did we improve company operations, while maintaining the excellence in service that was already second nature? Through my experience, I believe a company must do three things especially well in order to maintain an unbeatable level of operational excellence: 1) Get very close to their customer; 2) Benchmark against itself on a consistent basis, and 3) Empower employees to address the unexpected.

On the first point, I have learned that if we cut corners on our customer experience, we'll be seen as disingenuous by our customer base, which will in turn cut into our retention figures. So for every decision we make, from the most basic (e.g. choosing the right kind of cutlery for our in-flight meals) to the complex (e.g. expanding into a new market), the customer always comes first — they are the driver of our decision-making and strategic planning. Since we fly internationally, we view ourselves as ambassadors, not only for our company, but also for Hawaii. We want our uniquely Hawaiian customer experience to begin the moment our customers approach a Hawaiian Airlines kiosk.

Now to my second imperative: benchmarking. Each month Hawaiian Airlines works with an independent agency to survey a wide swath of our customers on the entirety of their experience with us, including reservations, check-in, boarding, the flight itself, and arrivals. The results are factored into every employee's bonus pay, from our ground crew to CEO Mark Dunkerley. Every employee receives a scorecard rating them on how well they've performed in interacting directly with the customer or, in the case of senior executives, on decision-making and strategic planning.

Today, companies who want greater insight into their customers can turn to social media, which can be seen as the grandchild of measurement surveys. Rather than just monitoring social media separately, say through our marketing department, we give our employees real-time customer reaction via a news ticker on the lower-thirds of screens and televisions in employee break rooms and crew lounges. We take this unedited, unfiltered commentary seriously and use it to adjust our service and nip problems in the bud as soon as they arise.

I am grateful for complaints. Although it's never fun to see a tweet about a poor interaction you may have had with a customer, it does provide immediate feedback about how our customers perceive us so that we can address problems immediately. I have learned that the worst response is waiting for a monthly or quarterly management meeting to address customer complaints. Instead, in order to figure out what went wrong, we initiate a conversation with everyone involved, including the employee who received the complaint, as soon as possible. While it may seem like a minute issue to us, it is not small to the customer; our speed in addressing the problem could make the difference between retaining that customer for future flights or losing him or her forever. After identifying the problem, we make a proactive move to fix it, so that we can avoid repeating the mistake, putting greater retention in jeopardy. For example, we have a daily operations meeting to discuss any departure delays that might have occurred — anything longer than a minute — and figure out what could have been done to avoid them.

Finally, although it is always important to plan and troubleshoot, it is vital to recognize that there isn't a blueprint for every conceivable customer scenario. Since good service is an especially American demand (and embodied culturally by Hawaiians who take it a step or two further) we believe employees perform best when empowered to improvise and bring unmatched service to their customers in a sincere, personal way.

At Hawaiian Airlines, we are proud of the superior service we provide our customers, and I believe by following the steps detailed above, any company can create their own culture that thrives on superior service.
Charles Nardello is the Senior Vice President of Operations at Hawaiian Airlines. He joined Hawaiian in February 2004 serving as Vice President of Maintenance and Engineering. Mr. Nardello has more than 30 years of diversified aviation management experience, including 23 years at US Airways.

Why Everyone Hates the Boss

David Rock Friday November 11, 2011 blogs.hbr.org

One of the most common complaints about leaders is that they are promoted for their technical skills, and often have poor social skills. A big insight that emerged on day two of the 2011 NeuroLeadership Summit is that this may simply be a function of the leader's role.
UCLA professor Matthew Lieberman, one of the founders of the Social Cognitive Neuroscience field, presented research on our ability to mentalize, or predict other people's emotional or intentional states. It turns out this requires significant effort, attention and resources. People experiencing even a mild cognitive load or "stress" find their ability to think about what others are thinking or needing impaired. The trouble is that our ability to mentalize about other people's thoughts is extremely poor even at the best of times.
In one study, an average of 50% of participants initially predicted that people would be able to work out the tune of a very well known song by listening only to the beats being tapped out. It turns out only 2.5% of people could successfully guess the tune with tapping as the only information. Our ability to the think about the minds of others is surprisingly poor, even when not under pressure.
The other challenge is that the circuitry for thinking analytically, such as thinking about the future or about concepts, switches off the circuitry for thinking about others. People spending a lot of time being analytical, conceptual or goal focused may have diminished circuitry for thinking about the minds of others, simply through lack of use.
Leaders who spend too much time analyzing and strategizing may find it difficult to activate their rarely used social circuits. Put this together with how hard it is to think about the minds of others when under pressure (and leaders are under massive cognitive load), and you begin to see why there is such an emotional divide between cognitively exhausted senior executives and the people they lead.
The big question now is what we can do to improve a leader's capacity to mentalize about others? Lieberman is studying this very question in the lab now. We look forward to seeing the results.
David Rock is a consultant and author of Your Brain at Work.

Tuesday, November 15, 2011

Top 3 Ways to Get Your Phone Calls Returned

Tom Searcy November 2, 2011 9:40 AM cbsnews.com

Chasing sucks. Prospects, clients, people who owe you information, drawings, money. I hate having to chase. Most of us have to do it--A LOT. Most of the time we go into the bottomless pit of voice mail hell to be tortured by the digital demons therein. Here is how to get your phone call returned more often. There are no perfect strategies that guarantee 100% response; even the IRS auditors don't get 100% return calls. But you can do much better if you follow this approach.

Quick note: This skill focuses on getting a returned call from someone you have already met. Prospecting is a different skill.

Step 1: Tell the person what you want. Calls that say "Call me when you get a chance" are relegated to someone's "B" or "C" priority list. (When was the last time you were working your "B" priority list?). If your voice mail says "Give me a call back, I have a couple of things I want to review with you," then you are never going on that person's radar of must-do priorities.

Tell the person you are calling what you want right at the beginning of the call. Make certain your voice mail is not longer than 40 seconds- they won't listen to it. What do you tell them you want? A document, a phone call, an email, a piece of information- whatever it is that you want, ask for it and ask for it fast. I'll give examples below.

Step 2: Speak in terms of time. Tell them:
  • How long the returned call will take. (3 minutes, 11 minutes, "less than a cup of coffee" are all good increments)
  • Must-talk-by date and time. Your message needs to say, "This call has to happen by...." And then give the date and time. End of day tomorrow, Friday by noon, this afternoon before 3:45pm. Success goes up if the window is later than 4 hours from now and no later than 24 hours from the point of your voice mail message you are leaving. If, by some miracle, you are actually talking to an administrative support person, the time issue is the same, just ask to book the appointment.
Step 3: Declare consequences.
To create urgency you need to declare consequences. Notice I used the word "consequences" not "threats." Consequences are the natural and understandable outcomes of an action or inaction. You are telling the person you are reaching out too that if he does not call back to you this will happen. Factual and without emotion. Here are some approaches:

  • Negative Option - If you do not hear back, you will assume the answer is "no" and you will act accordingly.
  • Time expiration - If you do not hear back, time will expire on the offer and what has been offered will be rescinded.
  • Delay of Progress - If you do not hear back, then the proposed date for start or end will not be attainable and will be delayed.
  • Positive Option - If you do not hear back you will take that as tacit approval and will move forward with the previously agreed upon actions.
Examples:
* "Bill, this is Tom from XYZ. I need the final drawings we discussed by noon tomorrow in my email or I will not be able to honor the delivery date of next Friday. Please give me a 30 second call when you have sent them to confirm. Thanks."

* "Sue, this is Joe from PDQ. I need confirmation of the wire transfer by end of business today or we will not ship. Please give me a call back by 4:00pm to ensure shipment. Thanks."

* "John, this is Deirdre from Pinnacle. I only need 3 minutes to get the details from you I need to give you the proposal you requested. If we connect by noon today, you'll have my proposal before you pack up to go home. Thanks.

* "Frank, this is Alex from Acme. A call no longer than a cup of coffee will sort out the issues you raised about the proposal. We have been out of touch for over a week- that usually means bad things. If I don't hear back from you by end of day tomorrow, I'll take that as a definite "no" and assume you are not interested in the proposal. Thanks."

What you should notice is that
1) This approach takes a forceful and direct tone, rather than a subservient and weak tone.

2) The messages are short. People rarely listen to long, detailed voice mails. They scan, much like we scan our emails. They store the things they intend to listen to later and delete everything else. They rarely get to what they say and eventually it solves itself or they delete it.

3) Action requests, time frames and consequences are clear.

Tom Searcy is a nationally recognized author, speaker, and the foremost expert in large account sales.

The 3 Most Dangerous Sales Clichés

By Tom Searcy November 3, 2011 7:34 PM cbsnews.com


Clichés can wreak havoc. In sales, especially, many clichés can cause damage in the hiring processes, the buying experience and the sales conversation. Here are three common ones that are dangerously wrong and drive me crazy:
"Sales is all about relationships."
Maybe that was true when Larry Tate and Darren Stevens were drinking triples on the 1970's show "Bewitched," but not so much anymore. I watch salespeople lose deals all day long and the bad news is delivered by that sales rep's "best friend ever" at the prospect company. Selling is about a lot of things, and relationships are only one sliver of it, and that sliver is shrinking.

If you want to improve your sales performance, don't assess the strength of your contacts by your "emotional connection." Rather, you will know you have leverage based upon your ability to influence the behaviors of your key contacts. For example:
  • When you ask for unique information about the prospect company, the decision-making process, the people at the table and how your company is doing, can you get it?
  • When you ask for unique access- a meeting, a phone call, an introduction, a tour or to review a document, can you get it?
  • When you ask for "most favored nation status" in the consideration process, (last look on pricing, final presentation position or a more executive audience for your proposal), can you get it?
If these requests are not possible, then the relationships you have are irrelevant, at least in terms of closing the deal. Relationships definitely will make the selling process more pleasant, but without leverage, they mean nothing when it comes to making the sale.

"Salespeople are born."
This is partly true--people, after all, are born, not hatched. But there are many traits that make salespeople effective, including being curious, good communicators, great listeners, leadership abilities, accessibility, integrity, and intelligence. But none of these qualities are specific just to "born salespeople." These are the qualities of effective executives of all disciplines. So you need to look for effective leaders and effective executives if you want explosive sales, not the cliché of a glad-handing, joke-telling, hyper-extrovert.

"Sales is a numbers game."
Maybe in the world of the previous century, activity was equivalent to productivity. More calls, letters, emails, appointments all translated into more sales. However, this is no longer a causal link. If you want to become intimately acquainted with this fact, answer every RFP that crosses your desk and you will see that success is not guaranteed because of activity. Sales effectiveness is about efficiency and yield, rather than the mind-numbing belief that more in the top of the funnel equals more out the bottom.

Sales truly is a numbers game when the numbers you are watching are the right ones. If you are watching the inputs only - prospecting activities for instance, you are missing it. If you are watching the closes only- signed contracts and orders, you are missing it. In the large, complex sales you need to be watching the "WIP," (work in process). The key to this idea is knowing the distinct stages of your sales process and then setting performance expectations for each of the movements from one stage to the next in the process. By having an objective evaluation of the movements in the process, you are watching the full story - inputs, sales stage movements and outcomes.

Clichés hide the important truths, regardless of the topic. Don't be sucked into the sales clichés because they will lead to the wrong conclusions.
Tom Searcy is a nationally recognized author, speaker, and the foremost expert in large account sales.