The People Prophet 

For profits, you need people.  Period.

A Management Tool from The Kabachnick Group

July/August, 2008

 

Ask Terri

 

Reader Question:  A year ago I took a job at another company and was tasked with buidling up a sales team.  I approached a few of the people I had worked with in my previous job to come work with me again.  They were top producers.  Two of them came.  Now I'm very disappointed in their results.  Frankly, they're just not working out.  I'm trying to understand how and why this happened and what, if anything, I can do about it. 

 

Terri's Response:  While taking people with them when moving from one company to another is common practice, many times employees who were successful in one company, simply do not adjust well and perform as well at another.  The factors that influence this are many, so let's narrow it down and I will base this on several assumptions.  I will assume that these two people report to you, that their positions are still in sales and that their compensation package is similar or better than what they previously had.  

 

Assuming these factors, consider this:  Different products demand different behaviors to achieve success in selling them.  Even the manner in which customer service representatives relate to customers can change. Different environments demand different values in relating to customers.   As an example:  Outside sales, where a person has to make a lot of cold calls to dig up business, varies greatly from inside sales, like retailing, where the customer comes to you.  And, even comparing similar industries, like within the vast scope of the retailing industry, we have determined that high-priced fashion merchandise requires a totally different behavior and communication preferences than what is necessary to sell something like children's clothing or home improvement products.  Thus, a person can be very successful selling one type of merchandise and fail miserably at selling another.    

 

The first question to ask is:  What are the differences in the products?  The price points?  The customer?   What is the approach required to garner sales with this product and how might it differ from what the individuals sold in their last sales job?  How must they sell now versus how have they been selling in the past?  If any of this varies, you will know that possibly these are people who should be selling only similar products in similar circumstances in order to maximize their success.    

 

Also, it's important to recognize that company cultures vary.  Microsoft is not Google, nor is it Cisco.  Mary Kay cosmetics' culture is very different from Avon.  Home Depot has a culture quite different from Lowe's.  Victoria's Secret is not the Gap.  How does your current company culture differ from the company they left?  What values does each emphasize and which ones are rewarded?  These questions can be the foundation for a conversation with your two salespeople.  Find out what they have experienced in their new job.  Have they experienced differences?  If so, what impact have these differences had on their level of engagement?  Do they perhaps think they are expected to be doing things in a manner that doesn't fit their natural behavior style?

 

Ask questions that will help you determine where disparities lie. Then you must act quickly.  This type of productivity failure can suddenly lead to deeper disengagement, creating a virus that can rapidly infect your top performers.  You don't want that to happen.  

If you cannot get answers that satisfy your ability to determine a plan of action, I'll help you.  I will provide you with complimentary assessments for your two salespeople and yourself.  You will then be able to determine if these people have the right fit to succeed in your environment or if some type of intervention can help to provide a plan for their success.  All will be best served if you act quickly.

 

 

 

 

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Unusual Recommendation

 

Brenda Dumont, from www.working.com recently said, "Retail Review doesn't often promote specific articles or services, but we read this book (I Quit, But Forgot to Tell You) and were amazed at the validity and importance to retailers.  To check out this valuable reference, visit http://www.kabachnick.com/products.
We were totally impressed with the new thinking and revelance, particularly as it relates to the retail industry."

 

Texas A&M

Retailing Summit 

 

For the past twenty years, the Center for Retailing Studies at Texas A&M University has brought together a dynamic mix of speakers, topics, and retailers to generate this annual event.  Business leaders from across the country gather to hear the star-studded list of speakers, which has included CEOs, Chairpersons, and Presidents of top retailing companies, retail consultants, and inspirational figures from all walks of life.

 

This year's Summit will be held in Dallas, October 2-3, 2008, at the Adolphus Hotel (www.hoteladolphus.com).  For one and one-half days in Dallas, industry leaders will share their retailing experience, lessons and insights with a packed house of several hundred decision-makers and thought leaders.  The audience takes away wisdom on topics such as vision and leadership, creating customer excitement, brand building, maverick retailing, hyper-competition and innovation.  Retailing Summit is designed for executives, industry leaders, decision-makers and managers on an upward career path as well as professors with interest in retailing.

 

Special Note:  Terri Kabachnick will be one of the featured speakers at this great event.  She hopes she'll see you there and considers this meeting a must for every retailer.  For details, go to http://www.retailingsummit.org/. 

 

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We invite you to tour our updated website which is garnering rave reviews!  Visit us at www.kabachnick.com and let us know what you think!

"While one person hesitates because he/she feels inferior, another is busy making mistakes and becoming superior."                      

                                             --- Henry C. Link

 

 

Getting Back to Basics 

     By Terri Kabachnick

This message will be short, brief and to the point.  Why the change in tactics for our lead article?  Quite simply because we realize you have little time.  You're too busy dealing with a business climate that's in a critical stage today - and you must take action.  And the action you must take is to go back to basics and start selling - not just some - everyone! 
 
Usually we devote this lead article to talking about employee engagement, retention, development or hiring practices.  You've read about these subjects from us many times.  But things are changing and the focus must shift to customer engagement, retention and development because employee engagement won't matter much if you have no customers for employees to be engaged with.  So, whether you are selling hardware, software, or fashion ware, it doesn't matter. If you have customers, you had better go back to the basics and start maximizing the activity of every customer you have.  You must start SELLING. 
 
It's pretty easy to sell when you're busy and the economy is good; when customers are readily in the mood to buy.  But, in today's economic downturn - well, it's a different situation. 
 
I'm not suggesting you totally disregard or put aside efforts in employee retention, engagement and development.  But the fact is we need to get down and dirty with everyone and identify the true issues of where business stands right now.  We need to start asking the important questions:   What are our sales goals?  What does that mean per transaction?  What has to be done with every customer or prospect to meet that goal?  What, specifically? 
 
Outline what is needed, keeping in mind that now is not the time to mince words.  Does that mean you have to make 20 calls a day or send 30 emails to your client list?  Do you have to call current customers and ask for referrals?  Do you hold meetings and ensure that everyone knows that in one way or another, they are a "salesperson," regardless of their job title.  And, to know that "salesperson" is not a dirty word.  Start now.  Create a To-Do list for every day and hold people accountable. 
 
Customize a plan to your type of business or industry.  Be relentless.  This may differ from what the routine in your business was two years ago, but there is no sense thinking about how things have changed.  The point is, it has and you must react.  You must set the pace for what everyone will be doing for the near future.  And, most importantly, you, yourself, must adhere to and follow your new set of standards for conducting business.  That means that if you have to pick up the phone and call your best customer - you do it.  If you have to call colleagues to get referrals - you had better do it.  You, as a leader, must set the pace and do it. 
 
Once you have clearly established this new routine, debrief associates weekly as to customer reactions, comments and requests.  Begin by asking all managers to start by first selling their own people on the benefits of working for the company.  Why?  Because if you don't clearly reinforce why they're working for you, it will be your best people that will leave you first.  Then share with them what motivated me many years ago when I was told by a mentor:  "Remember, every person you encounter has a problem they want to be solved.  Solve it and they're yours." 
 
Are customers not buying or are salespeople not selling? 
 
In economic downtimes like these, the way salespeople approach a situation will make all the difference in the world.  Here are just a few examples that I have personally encountered of how spirited and engaged people are truly selling: 
 
Payless Shoe store:  Mary Anne, a sales associate, approached me and asked, "Where did you buy those shoes?"  "Nordstrom's," I replied.  She then said, "When I get through with you, you'll only shop here." 
 
A mall department store:  I couldn't find anyone who would pay attention to me.  Their own conversations with one-another seemed more important than anything I could possibly want.  So, I left and went to Nordstrom.  There I was greeted with a warm smile and Tom said, "You look like you're searching for something and I think I know what it is."
 
Wal-Mart:  To all that passed by her, Judy shouted, "You must try our Prima Della™ meats.  Try it and you'll see how much better they are than the Boor's Head products from Publix Supermarkets."  She then zeroed in on me and said, "You are a Prima Della woman and I have a free sample for you; healthy, nutritious, and guaranteed to delight you." 
 
Were these sales people 'in you face?'  Maybe.  Would the same technique work in Saks?  Maybe not.  But, wait a minute.  Aren't they in your face, spraying you with all types of cologne fragrances? 
 
The point is, the people I encountered were selling in their own way, but it was them; natural and in their communication style; bold, bodacious, direct.  And yes, it got my attention, it made me smile, and let's face it, smiles sell.  So, whatever each individual's style is...tell them to go for it.  Just sell!  
 
If you would like more information on our Star Performer Selling Techniques, or if you would like us to create a solution for your people to start selling more, call us at 727-545-4185 or email us at
performance@kabachnick.com.  We guarantee what we teach; it works every time and our clients will testify to that.  See, I'm selling too!

Tracking Trends with Emily

Emily Crawford

Chief Results Officer

Disengagement happens at all levels and it's costly wherever it happens.  Here's what a report from BlessingWhite, entitled The State of Employee Engagement 2008, found at the executive level:   

  • More than 50 percent of senior executives have "less than ideal emotional connection and alignment" to their organization. 

Despite the level of disengagement, there are financial consequences.  BlessingWhite's findings show a link between high employee engagement and superior business performance in the following ways:

  • High-engagement organizations have a 28 percent earnings per share (EPS) growth rate.
  • Low-engagement organizations have shown an 11.2 percent EPS decline.
  • Strengthening employee engagement saved one company $1.7 million in one year according to a report from the Society for Human Resources. 

Engagement was categorized into five levels, according to BlessingWhite, although where a person falls within the levels can be very fluid;

  • Top engaged.  29 percent of North Americans fell into this group.  They are top-level performers.
  • Almost engaged.  27 percent fell into this group.  They contribute fully, find great satisfaction in their work but may not consistently have great days at work.  They can be lured away if not cultivated.
  • Honeymooners and hamsters.  12 percent.  Honeymooners are new, so their contribution is not high, but they are happy to be with the organization.  Hamsters may work hard but "spin their wheels" on nonessential tasks or are "retired in place."
  • Crash and burners.  13 percent.  Talented former maximum contributors.  They are stressed from their job and their contribution level has dropped.  Left alone they can become disengaged and pull others down.
  • Disengaged.  19 percent.  They are at the opposite end of the top engaged and often feel disconnected from organizational priorities, underutilized, and don't get what they need from work.  If not coached to higher levels, their exit is a good thing.

Terri's book, I Quit, But Forgot to Tell You, addresses this very issue and in Chapter 4, provides information on what to do to prevent and repair disengagement.  Check out chapter 4 now:  The Viral Progression of Disengagement.  If you don't have the book, download the chapter for free by clicking here.

 

Solution Center

Problem:  I hold a senior level position and it has been recommended that I coach or mentor a couple of people in the organization.  How beneficial do you think this would be to take this time at my level?

 

Terri's Answer:  I have a saying:  "I am who taught me."  Every one of us is where we are today because someone helped us, taught us, or pointed the way.  Today's management is now embracing this belief, placing a strong emphasis on people development through relationships.  Succession planning programs are surfacing, coaching strategies are being taught and mentoring is encouraged and supported by management.  A new awareness has developed for the importance of our relationships with people in an effort to grow ourselves and our businesses.  Regardless of the business you are in, people-namely customers and employees-are at its core; people who can either help you or hurt you. 
 
Researching this sudden emphasis on people and business development through personal relationships, I have found that many of us have forgotten the impact others have had on our success.  Most of us remember to say "thank you" for the latest referral or recommendation.  But how often do we go back and trace the origin of our latest success?  How did we meet him or her?  Who was responsible for beginning that relationship?  What would have happened if we had not met that person?  I compare this process to one of creating a family tree.  And, if you will go through this process, I think it will help you to see the value of mentoring and coaching.  

 

The Success Tree

Discovering the importance to look back at those who helped me led me to develop my "Success Tree™" exercise; a process which I use when teaching senior management mentoring and leadership skills.  I ask every participant to trace the roots of relationships that impacted their careers or business success.  Here's how the process works:     

 

1.  Think of a recent success.

2.  Identify the individual who helped you, directly or indirectly, achieve this success.

3.  Recall how you met this person.

4.  Consider who initiated or facilitated this encounter - it could be an individual or a group.

5.  Picture the circumstances that prompted your actions.

6.  Continue this process as far back as you can remember.

7.  Start this process over again by recalling other successful achievements.    

 

Lest you think I only ask those that I work with to go through this process, let me share a recent personal story.  While I was conducting a management workshop I witnessed the impact this process had on participants.  It prompted me to decide it might be time for me to draw another "Success Tree."  Once again the experience was powerful.  I recalled people that I haven't spoken with in years; remembered lessons painfully learned and "teachers" who stood by me.  I relived the surprising support of an acquaintance who then became a close friend; a client whose single recommendation five years ago continues to provide a steady source of income to this day.

 
After personally re-learning the lessons I teach, I began to contact my success sources; some of whom I had not spoken to in years.  A few couldn't be located.  One had died.  The rest were more than happy to hear from me and all were thrilled about my successes and pleased to recall the role they had played in my life.  An unexpected, surprising result of this effort was that new doors opened, new relationships developed and a new lesson was learned.  A former mentor, not seventy plus years young told me, "You should go back to your tree more often.  Every year it bears new fruit."  How true. 
 
As you coach and mentor others, use this method to subtly emphasize the importance of relationships to successes.  Managers who use this process with their employees also discover a renewed team spirit and an emphasis on the importance of each individual they have met.  The results can be pretty amazing.  Here's how one business owner - a specialty retailer with 46 stores - used, and continues to use, this process successfully in attracting and retaining new employees.    

 

One Retailer's Process:

  • He asked all store managers to recall how they got their best employee(s).
  • He then asked them to consider how they met the person who initiated the referral.
  • The managers were now in the process of creating their own "Success Tree."
  • The owner then created an initiative for the store managers to see who could develop the tallest and thickest of trees.
  • Managers used their "Success Tree" to reach out and contact people they had not spoken with in a long time. 

Six months into the process the owner reported that the process was a success, citing the following results:

  • Forty percent drop in turnover
  • Improved quality of new hires
  • Increased productivity
  • Revived contact with previous customers which created new business
  • A waiting list of applicants

As in most businesses, we are constantly developing new approaches to reach new customers and new employees.  Contacting people who already know you and who may have supported you in the past is an effective and rewarding approach. 
 
During economic times like those we are currently experiencing, everyone needs to connect and remember to say "thank you."  I suggest you take the time to draw your "Success Tree."  Trace the roots of your growth.   Go as far back as you can remember.  You will experience a powerful journey.  Then take time to say "thanks," and remind those who have helped you that you have not forgotten your success source.  Then pass the process on as you mentor and coach your staff and watch your forest grow.

 

CEO on the Go

 

In May, I had the chance to experience the Hakone Gardens in Saratoga, California, in connection with a management boot camp that I conducted for one of my clients-Net Optics, headquartered in Santa Clara, California.  During the debriefing session, CEO Bob Shaw and I learned that the serene, peaceful environment had contributed greatly to the success of our boot camp; the leadership deemed it "our best yet."    Hakone Gardens is the oldest Asian and Japanese estate in the Western Hemisphere, housed within eighteen acres of magnificent beauty, nestled in the verdant hills of Saratoga, overlooking Silicon Valley.  The picture above shows me with the management team of Net Optics at this splendid location.  The gardens were inspired in 1915, by a lifelong interest in Japanese culture and travels throughout Japan by Oliver and Isabel Stine.  The gardens have a rich history are absolutely stunning in nature. 
 
If you are looking for an ideal setting for a management retreat or meeting of any sort, I highly recommend Hakone Gardens.  You will not be disappointed and the atmosphere itself will guarantee a very successful experience.  If you would like to know more about these gardens, please feel free to contact me directly, or visit their website at
www.hakone.com.

 

 

 

The Kabachnick Group

10810 72nd Street

Suite 207

Largo, FL 33777

800.275.8374

727.545.4185

 

 

 

 

The Kabachnick Group | 10810 72nd Street, Suite 207 | Largo | FL | 33777