Are you trimming down expenses in your company? Reducing your head count? Cutting employee wages? Reducing marketing expenditures? Restricting corporate travel? Does the recession continue to keep your company in a squeezed down vise, even though you are making changes? Are your revenues down? Your company just doesn’t seem to be in a recovery mode? Is it possible that your logical vision and decision making process might be impaired? Maybe just maybe, the answer is in the office next to you!
[NOW] do I have your undivided attention?
I have heard the above scenario many times over in the last few months from clients all over the U.S., including 3 phone calls I received last weekend. This is serious times folks and this is an extremely serious message.
Many of my clientele have long term employees and I have always been a solid believer that you do what you can to save those you have a great deal of time and money invested in. But when I speak with owners about the questions above, it quickly becomes apparent that although they are making cosmetic changes and disrupting lives and believe it is under the cost cutting flag of survival, the reality is “IT IS BUSINESS AS USUAL!”
When I do company evaluations, there are typically individual(s) who reek of negativity. They give the bosses great lip service, but hide under the guise that they are way too important to lose be absent from the organization and/or their job. And to further compound the problem the client/owners have become complacent and continue to take the path of least resistance. When suggestions are made via an outside consultant or a well meaning employee, it typically gets vetoed by the senior employee and then they “make” the boss give the bad news. But employees are stupid and they know the pecking order has caused some of these difficult times. Most times the owners, “just don’t get it!”
In most cases, this senior employee is really the owners pet…..right hand man/woman…..has their hands in everybody’s mess kit most of the time….nosey, and typically a non-conformist. But the owners miss the sign(s) and keep cutting wages, cutting personnel etc. without any concept of “what could be.” And why you might ask yourself? Because the senior employee has “mentally” convinced the owner(s) that if he/she leaves, the company will be in tremendous distress or even close. And sadly the owners buy into this because they are in fear of discord or a mutiny. But what would happen if that senior employee would die quietly in his/her sleep tonight? Would the company continue on tomorrow?
One of my clients is a small regional bank in Iowa, in a town whose population is less than 8,000. The President had a senior manager, who I identified as the core of his personnel problems, (especially the revolving door of people). His administrative and teller employees always looked mad. It was obvious within hours of the three days that I spent there, that the morale was low, business was down and the intangible costs were soaring. He was convinced that not only would employees walk if he terminated her, but because of the small community it would affect his business in a negative way as well.
I convinced him otherwise and on a Monday morning the deed was done. The negativity was gone, employees could be themselves, smiles everywhere and later the President remarked that from that day forward, employees even dressed different. And much to his surprise, his business started to come back and in fact he was again a strong competitor against the other four banks in town. His job applications hopper started to get filled again, because the “locals” now knew it was a good place to work AND BANK.
This story is the reality of management folks. If you are not 100% into your management game, and all the subjects in the Questions above seem to be looming large over you, maybe just maybe, the fix in the next office. Seek outside help and pay attention to suggestions. Ask other key employees away from Mr. or Miss Negativity and respect their input and their feelings.
I had a business owner tell me just this last week, “….everybody that comes in here, tells me that I need to terminate her, including my banker. AND all of the General Managers I have had, never got the termination job done and she remains here today.” Key phrase here is “all of the General Managers….” Meaning he has gone through several but the senior employee always makes the cut.
To whom do you think I pointed the proverbial finger? That’s right the owner, because I believe he would not allow this to happen. Even though six executives in and out of his business gave him the same advice, it wasn’t his idea and the comfort zone far outweighed what he perceived as the risk. “He just didn’t get it!”
As I stated at the beginning, this is a very serious message. I hate to hear about companies closing or beating up their employees to survive. And I certainly don’t want to suggest that all long time employees need to be walked to the door. I can’t solve all the problems of the business world via my weekly newsletter, but if I have motivated the thinking process into a few of your heads and you REALISTICALLY and HONESTLY evaluate their long term key people, I have achieved my goal of the week. As always your comments are welcome and respected.
If I can of any assistance, please call or write and I will respond immediately! Have a tremendous week.
George Mancuso, CPC
Gman Business Resources
Nationally recognized Retained Executive Search and Employee Retention Specialist.
10/10/09
A Great Sales Presentation
October 11, 2009
As most of you are aware, I am currently acting CEO for a national manufacture in N.E. Kansas. Within this role I was contacted by the WTS Paradigm Company (www.wtsparadigm.com) with a request to “show me” their software, especially designed for certain manufactures and supply chains. I will preface this story by telling you, that Lyn Hartl the President and developer absolutely thought of everything. This software takes a back seat to no other which of course helps to sell the product! But this story is about the sales process, which was quite impressive to say the least.
1. I received a call from Scott, the BDM. He was low key, defined in his voice and spoke with authority. He knew his product, the service they provide and he knew his limitations. I agreed to watch an online webinar demo, especially for our company and he explained it would take about 90 minutes. He let me know, this software was powerful and I wouldn’t be sorry.
2. He made a scheduled call to me the day before and we spent 30 minutes going over what would be most important to the company within the scope of their software. He explained to me that Lyn Hartl the President of the company was “personally” going to conduct the demo. And yes I did feel important.
3. The day of the presentation was everything it was cracked up to be. No fluff, no hard closes, just proof of how this could alleviate the shortcomings of our current programs. And yes he continually had subtle closes in the form of getting me to agree to the value(s) and how it would make a positive impact on our organization.
4. At the end of the demo, we had a short question and answer session, and then he asked more about our business. From that he informed me that they price accordingly to each individual company and that his team would discuss pricing and get back to me. Wow special pricing for just us.
5. Then I received an Email, requesting that I sign a Non-Disclosure Agreement before they are willing to give me pricing! What the heck? I’ve got to sign an NDA to get pricing? Are you kidding? Nope, they weren’t kidding and after I stopped laughing, I signed it. I’m thinking this has got to be the greatest closing tool ever.
6. Next day I get a call from Joel, the VP of Operations and he “personally” wants to go over this with me. Wow, special pricing that I can’t talk about, the President, VP of Ops and the BDM all giving me special attention and a product and/or service would rank 10 on the HOLY SMOKES scale.
7. And they weren’t through…They were filled with handling objections from a “preemptive strike position.” They covered the potential objections, mainly price, before I could ask. They had all the answers.
For those of you who have attended my sales and management seminars, you will know that I have always preached (known as a Mancusoism) there is 3 points to the sale. Know yourself and your limitations, know your product/service like nobody else and all that it leaves is finding out the prospects pain, set his hair on fire and you become the fire extinguisher. Nice Job WTS Paradigm! It proves professionalism in sales arena is alive and well.
Have a tremendous week. If I can assist in any way, please call or write and I will respond immediately!
As most of you are aware, I am currently acting CEO for a national manufacture in N.E. Kansas. Within this role I was contacted by the WTS Paradigm Company (www.wtsparadigm.com) with a request to “show me” their software, especially designed for certain manufactures and supply chains. I will preface this story by telling you, that Lyn Hartl the President and developer absolutely thought of everything. This software takes a back seat to no other which of course helps to sell the product! But this story is about the sales process, which was quite impressive to say the least.
1. I received a call from Scott, the BDM. He was low key, defined in his voice and spoke with authority. He knew his product, the service they provide and he knew his limitations. I agreed to watch an online webinar demo, especially for our company and he explained it would take about 90 minutes. He let me know, this software was powerful and I wouldn’t be sorry.
2. He made a scheduled call to me the day before and we spent 30 minutes going over what would be most important to the company within the scope of their software. He explained to me that Lyn Hartl the President of the company was “personally” going to conduct the demo. And yes I did feel important.
3. The day of the presentation was everything it was cracked up to be. No fluff, no hard closes, just proof of how this could alleviate the shortcomings of our current programs. And yes he continually had subtle closes in the form of getting me to agree to the value(s) and how it would make a positive impact on our organization.
4. At the end of the demo, we had a short question and answer session, and then he asked more about our business. From that he informed me that they price accordingly to each individual company and that his team would discuss pricing and get back to me. Wow special pricing for just us.
5. Then I received an Email, requesting that I sign a Non-Disclosure Agreement before they are willing to give me pricing! What the heck? I’ve got to sign an NDA to get pricing? Are you kidding? Nope, they weren’t kidding and after I stopped laughing, I signed it. I’m thinking this has got to be the greatest closing tool ever.
6. Next day I get a call from Joel, the VP of Operations and he “personally” wants to go over this with me. Wow, special pricing that I can’t talk about, the President, VP of Ops and the BDM all giving me special attention and a product and/or service would rank 10 on the HOLY SMOKES scale.
7. And they weren’t through…They were filled with handling objections from a “preemptive strike position.” They covered the potential objections, mainly price, before I could ask. They had all the answers.
For those of you who have attended my sales and management seminars, you will know that I have always preached (known as a Mancusoism) there is 3 points to the sale. Know yourself and your limitations, know your product/service like nobody else and all that it leaves is finding out the prospects pain, set his hair on fire and you become the fire extinguisher. Nice Job WTS Paradigm! It proves professionalism in sales arena is alive and well.
Have a tremendous week. If I can assist in any way, please call or write and I will respond immediately!
10/4/09
The Talent War
We all know demographics and economic forces are conspiring to create a "talent war." If we are not in the human resources or workforce management consulting areas, how can we best help our clients?
Great question. It is logical to think that with the recession, the pressure to find talent might be reduced for a few years. Good employees are going to stay while those around them are being laid off or are wary of changing jobs and losing any seniority. However, consider a survey by salary.com earlier this year that found, even in this recession, that 2 of 3 employees were actively or passively looking for jobs. This is almost twice the rate employers estimated.
The most talented employees are logically looking for opportunities inside and outside the companies in which they work. As the economy undergoes major shifts, more opportunities and new challenges will certainly open up at other companies. Because they will remember how they and their colleagues were treated when times were tough, they will act on bad treatment as soon as the economy improves. Probably the best thing you can do for your client is to assure that they clearly show their employees how valuable they are and to carefully consider what may be considered by employees as a lack of loyalty.
Executives must level with employees, even letting them know that they don't know. Historically, this may not have been the right advice, but in this environment, when your best employees are more mobile than ever (and more are Gen X and Gen Y, for whom loyalty means less than for Boomers), disclosure and engagement are critical.
Tip: Joe Pine who wrote, "The Experience Economy; Work Is Theater & Every Business a Stage", and others, talk about how increasingly important experience is to a brand. This is true for employees as well as customers. Help your client make the employee experience more meaningful and trusting by not focusing on negotiating benefits, or promising more benefits when the economy turns around. If layoffs occur, use your skills in technology, strategy, process, or other discipline to help your client understand what elements of those activities in which you are an expert employees find most valuable or most significantly impact the employee experience.
The 4th quarter is now in full swing and hopefully you and your organization are working your plan to close out 2009 with tremendous success. If I can assist in any way, please call or write and I will respond immediately! Have a great week.
NEXT WEEK: Next week I’m going to tell you a short story about a Wisconsin based company that made an outstanding and professional sales presentation to me. I was so inspired by their defined process I asked and received permission from their president to tell their story.
Regards,
George F. Mancuso CPC
Great question. It is logical to think that with the recession, the pressure to find talent might be reduced for a few years. Good employees are going to stay while those around them are being laid off or are wary of changing jobs and losing any seniority. However, consider a survey by salary.com earlier this year that found, even in this recession, that 2 of 3 employees were actively or passively looking for jobs. This is almost twice the rate employers estimated.
The most talented employees are logically looking for opportunities inside and outside the companies in which they work. As the economy undergoes major shifts, more opportunities and new challenges will certainly open up at other companies. Because they will remember how they and their colleagues were treated when times were tough, they will act on bad treatment as soon as the economy improves. Probably the best thing you can do for your client is to assure that they clearly show their employees how valuable they are and to carefully consider what may be considered by employees as a lack of loyalty.
Executives must level with employees, even letting them know that they don't know. Historically, this may not have been the right advice, but in this environment, when your best employees are more mobile than ever (and more are Gen X and Gen Y, for whom loyalty means less than for Boomers), disclosure and engagement are critical.
Tip: Joe Pine who wrote, "The Experience Economy; Work Is Theater & Every Business a Stage", and others, talk about how increasingly important experience is to a brand. This is true for employees as well as customers. Help your client make the employee experience more meaningful and trusting by not focusing on negotiating benefits, or promising more benefits when the economy turns around. If layoffs occur, use your skills in technology, strategy, process, or other discipline to help your client understand what elements of those activities in which you are an expert employees find most valuable or most significantly impact the employee experience.
The 4th quarter is now in full swing and hopefully you and your organization are working your plan to close out 2009 with tremendous success. If I can assist in any way, please call or write and I will respond immediately! Have a great week.
NEXT WEEK: Next week I’m going to tell you a short story about a Wisconsin based company that made an outstanding and professional sales presentation to me. I was so inspired by their defined process I asked and received permission from their president to tell their story.
Regards,
George F. Mancuso CPC
9/27/09
Values of Testimonials
September 27, 2009
Q: In your experience, do prospective clients pay attention to testimonials? My company is a sales and service organization with both tangible and intangible offerings and we’ve been in business slightly over 6 years. I’ve told my team they we need to solicit and post on our website comments from satisfied customers both current and past. Do you agree? (Arthur P., Omaha, NE)
A: Remember that selling has a great deal to do with not only the perception of competence, but the concept of confidence as well. A testimonial is one way to lower the [mental] perceived risk that the intangible and/or intangible service a client is about to buy are plausible, realistic and risk free or at least "low risk." When you ask a client for a testimonial, think more about what a risk-averse executive or manager needs to hear and request the testimonial address the risk issues they considered in buying from you.
First, consider the greatest value your clients have received. What have they said was the most important benefit you provided? Then build your requested testimonial around that. Consider including the following, in a sequence that works best for you;
• The project issue or challenge (the preamble for why product or services were required)
• The intended outcome of the engagement (the value provided)
• The actual outcome (especially longer term, in unit terms of dollars, output, or other measure that might translate to a prospective client)
• The reason the client selected your firm (this is the key element to convincing the next client why they should select you, and should include why any reservations were quickly overcome by your performance)
• The core strength you brought to the project (what aspect of your firm's offering you want to highlight)
• The reason the client selected you above other consultants (here is the second most important aspect of the testimonial to induce your prospect to select you)
NOTE: Think about the points above when you are writing your printable marketing pieces or updating the presentation of your website. Use these concepts to make your company standout and demonstrate why “YOU” and not “another firm.”
Tip: There is good value in planning your "testimonial portfolio" to be a working part of your sales and marketing tools. Consider the range of compelling reasons you would like to place before a prospect. Since each testimonial can't realistically present all of these reasons, work with your client to create a testimonial that fills the gaps.
P.S. Clients are less impressed by a testimonial about a firm when it doesn't necessarily relate at all to the buyers proposed needs. If possible, collect testimonials for the individuals on the team rather than the firm in general. People relate to people.
Regards,
George F. Mancuso, CPC
Gman Business Resources, Inc.
Q: In your experience, do prospective clients pay attention to testimonials? My company is a sales and service organization with both tangible and intangible offerings and we’ve been in business slightly over 6 years. I’ve told my team they we need to solicit and post on our website comments from satisfied customers both current and past. Do you agree? (Arthur P., Omaha, NE)
A: Remember that selling has a great deal to do with not only the perception of competence, but the concept of confidence as well. A testimonial is one way to lower the [mental] perceived risk that the intangible and/or intangible service a client is about to buy are plausible, realistic and risk free or at least "low risk." When you ask a client for a testimonial, think more about what a risk-averse executive or manager needs to hear and request the testimonial address the risk issues they considered in buying from you.
First, consider the greatest value your clients have received. What have they said was the most important benefit you provided? Then build your requested testimonial around that. Consider including the following, in a sequence that works best for you;
• The project issue or challenge (the preamble for why product or services were required)
• The intended outcome of the engagement (the value provided)
• The actual outcome (especially longer term, in unit terms of dollars, output, or other measure that might translate to a prospective client)
• The reason the client selected your firm (this is the key element to convincing the next client why they should select you, and should include why any reservations were quickly overcome by your performance)
• The core strength you brought to the project (what aspect of your firm's offering you want to highlight)
• The reason the client selected you above other consultants (here is the second most important aspect of the testimonial to induce your prospect to select you)
NOTE: Think about the points above when you are writing your printable marketing pieces or updating the presentation of your website. Use these concepts to make your company standout and demonstrate why “YOU” and not “another firm.”
Tip: There is good value in planning your "testimonial portfolio" to be a working part of your sales and marketing tools. Consider the range of compelling reasons you would like to place before a prospect. Since each testimonial can't realistically present all of these reasons, work with your client to create a testimonial that fills the gaps.
P.S. Clients are less impressed by a testimonial about a firm when it doesn't necessarily relate at all to the buyers proposed needs. If possible, collect testimonials for the individuals on the team rather than the firm in general. People relate to people.
Regards,
George F. Mancuso, CPC
Gman Business Resources, Inc.
9/20/09
"You're Not In Our Budget"
September 20. 2009
Q: More than once this year I have heard, “….I’m sorry, we just don’t have the budget to fund this project right now.” We are a service organization and after working diligently understanding their needs and defining a proposal, these kind of turn downs dig right into the inner soul. Do you have any thoughts on this subject? (Charlie M., CPA Firm, Columbia, SC)
A: The budget closing objection is similar to several others, including the implicit objection that your price is too high for the work or value proposed. It is about perceived value. This can result from not talking to the person who will benefit directly from your product or service, thus a lower perceived value than you want.
Second, you may be facing a competitive pressure from other vendors of services, even attorneys, accountants and engineers, all of whom may be facing market pressures to lower their fees. Third, this may just be a negotiation technique to see how much money the client can save (we are not the only ones who use "closing techniques").
Assuming you are talking to the qualified buyer and the one whose problem you are solving, it is critical to find out how much your services are worth to the client. One way is to not beat around the bush and just ask, "I understand you are cutting back on many investments, so tell me how much budget is available to improve sales efficiency by 20% (or whatever you are proposing)?" If the answer is "none" then your conversation under these terms is pretty much over.
Another service, another outcome or another buyer is called for. If they say "around $40,000," then you can, without cutting your daily fee if you are charging on a time and materials basis, start the discussion about trimming services to available budget. You should always be prepared with alternative formulations of your project (e.g., what could you do for 25%, 75% and 150% of your proposed fee).
Tip: Budget objections are always tied to value. If your client was sued, they wouldn't say, "We just don't have the budget to defend ourselves," or if there was an office flood, they wouldn't say, "We can't afford to clean up the damage." Your services just need to be altered to find that value.
This begins week four of September 2009. Have you prepared for the defined dash to the finish line? Have a great week and call or write if you need me and I will respond immediately!
Regards,
George F. Mancuso, CPC
Gman Business Resources, Inc.
Grinnell, Iowa
Q: More than once this year I have heard, “….I’m sorry, we just don’t have the budget to fund this project right now.” We are a service organization and after working diligently understanding their needs and defining a proposal, these kind of turn downs dig right into the inner soul. Do you have any thoughts on this subject? (Charlie M., CPA Firm, Columbia, SC)
A: The budget closing objection is similar to several others, including the implicit objection that your price is too high for the work or value proposed. It is about perceived value. This can result from not talking to the person who will benefit directly from your product or service, thus a lower perceived value than you want.
Second, you may be facing a competitive pressure from other vendors of services, even attorneys, accountants and engineers, all of whom may be facing market pressures to lower their fees. Third, this may just be a negotiation technique to see how much money the client can save (we are not the only ones who use "closing techniques").
Assuming you are talking to the qualified buyer and the one whose problem you are solving, it is critical to find out how much your services are worth to the client. One way is to not beat around the bush and just ask, "I understand you are cutting back on many investments, so tell me how much budget is available to improve sales efficiency by 20% (or whatever you are proposing)?" If the answer is "none" then your conversation under these terms is pretty much over.
Another service, another outcome or another buyer is called for. If they say "around $40,000," then you can, without cutting your daily fee if you are charging on a time and materials basis, start the discussion about trimming services to available budget. You should always be prepared with alternative formulations of your project (e.g., what could you do for 25%, 75% and 150% of your proposed fee).
Tip: Budget objections are always tied to value. If your client was sued, they wouldn't say, "We just don't have the budget to defend ourselves," or if there was an office flood, they wouldn't say, "We can't afford to clean up the damage." Your services just need to be altered to find that value.
This begins week four of September 2009. Have you prepared for the defined dash to the finish line? Have a great week and call or write if you need me and I will respond immediately!
Regards,
George F. Mancuso, CPC
Gman Business Resources, Inc.
Grinnell, Iowa
Subscribe to:
Posts (Atom)