Saturday, 26 May 2012

Goal setting



Question and Answer - Goals

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Productivity - Goal setting
Written by Dave Kahle   

Q.  What do I do when my goals don’t match the company’s goals for me?

A.  I can look at this is in two ways – expressing two different situations.  In the first, there is a legitimate difference in the expectations for a sales person, but a basic agreement on the issues on which to be focused, as well as the values of the organization.  In the second, there is a deeper and more significant difference of opinion.

Let’s consider each separately.  In the first scenario, the sales person and the company differ on the degree of what is possible.  The sales person expects a 10% increase, while the company thinks 15% is reasonable.  Both agree that sales growth is reasonable, but the amount of growth is the issue.  What do you, the sales person, do in this case?

Persuade and negotiate.  Try to convince your boss that your perspective is more accurate than his/hers.  Don’t just assert that, be convincing.  Back up your beliefs with substance.  Describe specific situations and accounts, and explain why you think about them the way you do.  Prove your point.

At some point in this process, there is going to be a resolution.  There will be a quota or a goal.  Whether it is your idea of what it should be, or your manager’s version, or some compromise, it doesn’t matter.  At that point, when the issue is resolved and the number is set, your job is to give all of your best efforts to doing what your company wants you to do. 

You are, after all, an employee of the company.  Your job is to do what your company wants you to do.  That’s what they pay you for.

Sometimes sales people can get a little too convinced of their own importance.  I succumbed to that temptation more than once when I was selling full time.  We think that we really are in business for ourselves, that we own our customers, and that we know what is best for the company and the customer.  So, therefore, we become agitated and upset when the company asks for a 15% increase and we think 5% is reasonable.  We are tempted to go off mumbling under our breath about the screwy management, and we decide we are going to do what we want to do instead.

A little reality check is in order under these circumstances.  If you worked in the warehouse, would you be able to decide what you wanted to do today?  If you were a customer service rep, would you get to determine how best to spend your day, and which parts of your job you’d really do?  If you were in the purchasing department, if you didn’t like the company’s direction, would you have the freedom to ignore it?

So what makes you think you are so special?  Answer -- nothing.  Let’s put the freedom that we enjoy and the money that we make in perspective.  We are, when all is said and done, employees of the company.  And, I believe, we have a moral obligation to give our best efforts to that company for as long as we accept a paycheck.

Which brings us to the second situation.  You have some major difference of opinion in not only the degree of what is expected, but a deep-seated difference of opinion in the basic issues themselves.  I’m not talking about issues like you think you need to focus on your current customers and your company wants you to sell new customers.  Those are relatively superficial issues that fit into the previous discussion.

Instead, I’m talking about differences in fundamental values and ethics.  Here’s an example from my own experience.  I once worked for a company that introduced a new product, and developed a quota for each of us to sell that product.  The problem was, the product never worked.  It didn’t do what the company said it was going to do.  We, the sales people, knew it, and the company knew it.  Yet, they still wanted us to sell it.  We were given quotas and strongly directed to go out and get orders at all costs.  They directed us to, in effect, lie to our customers. 

I left the company shortly thereafter.

The issue wasn’t “Do I sell 100 or 130 of these?”  That’s an issue of degree.  Instead, the issue was, “Do I lie to my customers?”  That’s an ethical issue.

If it’s an ethical issue, then I think you have only one choice.  Find another job.  Life is too short to spend it violating your ethics and compromising your integrity.

That sounds simple, and it rarely is that black and white.  It almost never happens that your manager sends you an email that says, “From this day forward you will lie to your customers.”  Instead, it is more likely that a pattern emerges over a period of time.  One incident is generally not representative of a character flaw.  But, when you see a pattern of cutting ethical corners, of disdain for integrity, of fuzzy moral boundaries, then you can conclude that those are expressions of a corporate character flaw. 

In my situation, the “lie to your customers” direction was not the first indication of a lack of moral compatibility between me and the company.  It was, however, the final one for me – the most recent and blatant of a string of incidents that made me feel uncomfortable with myself for being a part of it.

Also, sometimes the price is high.  The position I left was the most fun, most challenging, best paying job I ever had.  It was 15 years before I made the kind of money again that I made in that job.  Believe me, leaving that job for ethical reasons was a difficult decision.

Money is just money.  It comes and it goes.  People, and sales people particularly, who will do anything for money, who evidence no compulsion and no moral boundaries, are sad characters.  They have succumbed to the most superficial of temptations and displayed themselves to all those around them as people with little integrity.  They are unfortunate examples to their families, friends, and all who know them.

You only have to read the newspapers over the last year or so to see multiple examples of the damage that greed, un-tempered by morality, can do.  The real damage, though, is not the highly visible corporate crooks that we read about every day.  The real tragedy is all the less visible managers and sales people who we don’t read about – those business people who share the same “money at all costs” attitude – whose legacy is not as public, but none-the-less still damaging.

I would hope that you would not be one of those.  That you would have the strength of character to disassociate yourself from a situation that comprised your integrity.

So, when it becomes an issue of morality, I think it’s time to leave.

Good luck.  Sell well.

 

Sales 2012: What Will You Choose?

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Productivity - Goal setting
Written by Colleen Stanley   

It’s that time of the year when people set New Year’s resolutions and goals.  Setting goals really boils down to making new and better choices.  It’s as much about what you are going to start doing as it is about what you are going to stop doing. 

This tradition has been going on for years and most of the time it is just rhetoric and hope which eventually leads back to old comfortable behaviors and attitudes.  Here’s three things to consider choosing if you are serious about making 2012 your best year in sales.   

#1:    Choose your “why.”  Many people get caught up in setting goals that are based on other people’s expectations, not their own.  The conversation around the new goal is one of excitement and motivation, however, often lacks the real reason for changing or improving.  Business owners say they want to grow their businesses.   Why?  Salespeople claim they want to make more money.  Why?  

Here’s a quick reality check.  If your why isn’t big enough, you will not do the work necessary to change and improve.  You will talk a good game and talk will be the only concrete action taken.  Take some time to reflect and figure out your why.  Once you figure out your why, ask the second most important question:  What are you willing to do to achieve it?

The most successful people in the world aren’t the smartest or most talented.  They are people who are clear on their why and willing to do the work necessary to achieve their goals.  “I want to grow my business” sounds like the right battle cry for a business owner.  Are you willing to take the risk, put in the hours, hire the team, grow the team and invest in new resources?  Making more money is the politically correct answer for any salesperson.  Are you willing do the work, invest in yourself to get smarter and experience the discomfort that happens anytime you change in order to take your skills to a new level?   (Or would you rather watch another episode of reality TV.)  Get clear on your why.  It is the first step in executing what needs to happen. 
 
Choices#2:    Choose to slow down.  Most salespeople are card carrying members of the busy club.  They are busy networking, busy prospecting, busy selling …they are busy.  Sounds good except too many busy salespeople are not hitting quota.  The problem is most salespeople are so busy that they don’t take the time to analyze their business – current and future. 

At the end of each year, take time to track and figure out the source of your best leads.  Is social media working for your industry?  Or are you spending hours on Facebook to avoid picking up the phone?  Have you updated your LinkedIn profile 20 times without making contact with a human being?  How about that association lunch you attend each month?  Has that event yielded any sales results?  Evaluate your referral partners.  Are they referring quality prospects or are they just nice people that should be reallocated to the friendship category?  Look at your clients.  Which clients are your raving fans and refer you to their colleagues.  Are you giving them “frequent flyer” treatment or are they being serviced just like your “C” accounts?  If you lost business to a competitor, what is the reason?  If it’s price, work on the selling skill of quantifying the pain or problem.  If it’s talking to a non-decision maker, work on assertiveness skills, pre-call planning and managing expectations.   

Steven Prentice, president of Bristall Morgan, Inc., has a great presentation titled, “Cool Down:  Getting Further by Going Slower.”  His research shows that organizations are more productive when they slow down.  It allows creative thinking which can only happen when the brain is given a chance to catch its breath.  Creative thinking leads to innovation which keeps you ahead of the competition. 

#3:    Choose generosity.   If you want to earn more in 2012, establish a give goal.  It’s the old saying, “if you want to get more, you need to give more.”   Dr. Robert Cialdini, author of,   Influence: The Psychology of Persuasion, shows research supporting this concept.  One of the principles discussed in his book is the principle of reciprocity.  When you help others, they want to return the favor, they want to reciprocate. 

This principle is the foundation of strong strategic alliance partnerships.  Good partners are consistently looking for ways to help grow their partners business.   Generosity starts at home base.  Be generous with your fellow team members.  Take time to help the newbie salesperson with advice or mentoring.  Give a hand up to a veteran salesperson that is in a slump by taking him to lunch. Give to charities.  Dover Management runs a mutual fund that invests in companies known for charitable giving.  Dover’s research shows that companies with a good relationship between philanthropy and operating earnings have outperformed the broader index by 3.5 percentage point a year over a five-year period.   That’s reason enough to write a check. 

It’s a new year for you to grow as a sales professional.   What will you choose?  Examine your why, slow down and be generous. 

 

Follow Your Heroes

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Productivity - Goal setting
Written by Jeremy Miller   

The New Year is a time of reflection and planning. It's an exciting time, because it feels like a fresh start and a new beginning. And it motivates us to consider all that we want to do and achieve.

But take a step back. Look at the world around you. Instead of considering who you are and what you want, look at the people you want to be like. These are your heroes, and your heroes offer an immense growth opportunity.

At a very deep level we identify and connect with heroes. They're the characters that make our movies interesting, and they're the people we read about in books and magazines. For example, Walter Isaacson's book Steve Jobs has been a runaway bestseller, because so many people want to learn how one man achieved so much. And maybe as they read the book they too will discover how to be a little bit more like Steve.

We learn vicariously through heroes' stories. The Hero's Journey is one of the oldest and most popular forms of fiction. The Odyssey, Beowulf, Star Wars and Harry Potter are all examples of the Hero's Journey archetype. We are attracted to these stories, because we get to walk alongside someone as they achieve something greater than themselves. Not only do we get to feel their reward and accomplishment, but we also get to experience the steps they take.

Who are your heroes?

There are lots of heroes to learn from. They are entrepreneurs, business leaders, musicians, artists, politicians and athletes. They are people doing remarkable things.

When you look around, who are the people you admire? Who are the people you identify with and want to emulate?

Super HeroTake note of your heroes, because they will help you discover and understand your goals and values. Not just superficial goals, but the deep desires and ambitions that speak to your soul.

Make a short list of your heroes. Jot down a few, and try to understand why they resonate with you.

What do you admire about your heroes?

Look at your list of heroes, and consider their traits and achievements. Understanding the things that you admire about them will give you insights into your own ambitions and values.

What do you admire about your heroes? Is it the things they've built, the way they live, the people or causes they serve, or something else? On your hero list write down the key traits you admire about each hero.

With every trait or achievement you list, ask why. Why is the trait important? Why does it resonate with you? Why do you care? By going deeper you will gain greater self-awareness, because your are connecting tangible traits to your personal values.

How can you achieve more?

Lists and self-discovery exercises may be interesting, but they don't offer much value if they aren't converted into action.

The purpose of identifying and analyzing your heroes is to assess if you're on the right path. Revisit your goals and New Year's resolutions, and assess if they are in line with the traits and achievements of your heroes?

Too often we set priorities like "lose weight," "take more vacation time," or "increase revenue by X." But those are the easy and obvious resolutions. Those are the goals we set and break every year. Go deeper. What are you really driving for? What is the hero version of you working towards?

 

Goal Setting: Consider Needs and Wants

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Productivity - Goal setting
Written by Robyn Davis   

In the initial planning stages of any event, I encourage my clients to set two goals and I would encourage you to do the same.  These particular goals are especially important during the planning process because they can help you in selecting appropriate events for your company, facilitating your team’s understanding of why you are exhibiting and what is needed from them, and determining which marketing methods should be employed to maximize your results.  Specifically, the two goals I encourage my clients to set are a “needs goal” and a “wants goal.”

First, a “needs goal” is what you must accomplish in order to breakeven at an event; this is the objective you need to complete so that the event does not hurt your company nor is it remembered as a terrible failure.  To set this goal, take a few minutes to consider what you have (or would have) invested in your event (time, money, energy, etc.) and how much that is worth to you (it may be your total financial investment plus a small percentage to account for the time, energy, and other intangibles invested).

The main benefit of identifying a “needs goal” is in better understanding your investment.  Sometimes, professionals decide to exhibit at a new event or implement a new marketing strategy because it’s “fresh” and the “only way to stay ahead of the times” or continue a tradition of exhibiting at an old event with the same marketing techniques because “it is what has always been done” (neither of which, in and of itself, makes a sound business decision).  Regardless, evaluating what you need to accomplish can help in finding the events and approaches that are the correct fit for your company today.

[If you cannot reasonably expect to accomplish your “needs goal” at your next event, there is a problem with the fit of the event itself or the approaches you have selected for that event.]

Next, a “wants goal” is what you would like to accomplish if you were exhibiting in a near-perfect world; this is the objective you want to complete so that the event exceeds your expectations and is remembered to be a great success.  Sit back and dream a little to determine your “wants goal” – this may be a financial goal, but is also likely to have some intangible components (better connections with current/future clients, greater team morale, improved visibility in your industry space, etc.).  Don’t forget, even with intangible components, you still want your goals themselves to be measurable.

The main benefit of identifying a “wants goal” is in motivating yourself to start thinking bigger.  Exhibiting brings a world of possibilities to those involved but if you haven’t started dreaming about specific areas within which your company would like to improve, you may not be able to see the opportunities available to maximize your overall results.  Brainstorming creative methods to accomplish your “wants goal” is one way to include your team in the event preparations and begin building team ownership of your collective results.

[If you can reasonably expect to surpass your “wants goal” at your next event, your problem is that you haven’t started thinking big enough yet.]

If you are just starting your planning for an upcoming event, I would encourage you to personalize these goals to your situation and refer back to them as you make each major decision along the way.  If your event is past the early planning stages, you can still incorporate these goals into your remaining planning and on-site efforts.  So, wherever you are in your preparations, get started today in taking the necessary steps to ensure that you surpass your “needs goal” and continue striving towards your “wants goal."

 

 

8 Steps to Reach Your Sales Goals

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Productivity - Goal setting
Written by Kendra Lee   

The end of one year and beginning of a new one is a great opportunity to examine your successes from the previous year, determine what you want to replicate, what you want to change and then set some goals for the new one.

Because setting attainable sales goals can be a lot more tricky, and stressful, then people tend to think, I’d like to offer a step-by-step guide to help you set and reach your 2011 target.

1.    Start with revenue. Some sellers, and particularly business owners who think in terms of profits, like to start with margins or other metrics when setting their sales objectives. But whether you’re setting your own goals, or assigning them to a sales team, I encourage you to begin with revenue.

Customers buy based on revenue. They don’t agree to pay you a certain profitability margin. If they knew your margin, they’d surely negotiate for deeper discounts!

Revenue makes sales objectives a lot more concrete for sellers. (Of course margin is a critical metric, but you need a revenue goal, too.)

2.    Make it your own. There's no law that says you have to be satisfied selling at the revenue level your company needs, or the amount assigned to you. Find the figure that will allow you to reach your personal goals for the year and use it as your real quota goal. It might seem tougher at first, but it's also a lot more motivating!

3.    Don’t get overwhelmed. When you first see your quota or personal goal, it can seem like an enormous number, especially if it’s significantly higher than last year.

Push those thoughts aside.

Concentrate on seeing the goal as a figure that will shrink as you move through your planning process.

4.    Figure out how much you’ve identified already. Look at your sales pipeline. Examine what you already know, or have a strong suspicion, will close. Often you can see opportunities you anticipate will close through the first quarter. Depending what you sell, you may even have annual services contracts you can count on already. Subtract this number from your revenue goal.

5.    Look for growth in existing accounts.
Of course, the easiest sales opportunities are to existing clients, so look at them next.

Where are there solutions you could be offering to customers you already have? Are some clients not taking advantage of all the services you provide? Are there other contacts or departments you could be selling to?

Find a realistic amount of growth you can expect in your current accounts, and then subtract that number from your existing total, too.

By now, your quota goal has probably shrunk considerably!

6.    Uncover accounts, or revenue at risk. While you may see significant growth in many of your clients, sadly, the opposite is true as well.

No matter how great you are, some small percentage of your existing customers is likely to leave, merge, or take their business elsewhere.

Try to figure out which of your clients might be most vulnerable. You can subtract a percentage of that revenue now, for planning purposes, while making a note to yourself to pay special attention to them this year.

7.    Leave yourself some wiggle room. Whatever number is remaining in your revenue goal, add 20% to it. Why? In the event that you unexpectedly lose a large account, a big deal doesn’t close, or some of your plans don't work out the way you had anticipated, you'll still be right on track to achieve your revenue goal!

8.    Establish your lead generation strategy. Once you’ve taken these steps, now comes the fun part. 

Look at your remaining revenue goal – the amount you still have to generate after you've figured in your visible pipeline, existing customers, and the small percentage of accounts you might lose – and start to break it down into activity goals.

How many new accounts do you need to meet your remaining revenue goal? How many new leads will it take based on your past closing ratio? What kind of lead generation campaigns should you do to find those leads?

The second year in one of my most memorable territories I had no existing customers and little carried over in the sales pipeline. (You can see why it was memorable!) I ran lead generation events every quarter and email campaigns every two weeks.

Knowing the number of leads you need to achieve your revenue goal helps you determine what your lead generation strategy needs to be, too. It’ll be easy for you to figure out what you need to do every week, month and quarter to stay on track.

The key to making it work, though, is taking your time on each step in being realistic in your estimations.

Lots of sellers fail to accomplish what they’d hoped from year to year because they never really bother to figure out exactly what they have to do to reach their goals – so take this template and use it to create a stellar year!

 

 
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