People in Organizations: Why Some Companies Give So Little Thought to Their “Greatest Asset”
Everyone has heard the statement, “people are your company’s greatest asset,” but is that always true?
We all know that without people, nothing happens; there is no marketing or sales, no production or delivery, no administration or support, no management or leadership, and ultimately no strategy or direction for the company. There is no mission or vision without people. A company without people is a meaningless entity, empty and void of purpose, wandering aimlessly about, headed nowhere, and accomplishing nothing.
The people of a company plan, organize, and execute its goals and objectives, accomplishing its mission and serving its customers by providing valuable products and services.
They are a team working on a common cause and performing their individual roles while communicating and collaborating to accomplish the company’s mission. Without a company’s people, products are not sold or produced, customers do not receive what they have purchased, and investors gain no return.
So why do some companies still give so little thought to their “greatest asset” or even treat their people as an afterthought? Let’s explore several of the many possibilities here:
- Some business leaders with responsibility in this area do not value people. Rather than recognizing people as unique and wonderful, having value as individuals, and being an essential part of a team working toward a common cause, they may see people as a means to an end. Believing that people are merely cogs in the wheel results in actions that minimize not only the value of people but also the potential positive impact that people could have on the company. If this attitude is held by leadership, it is displayed by leadership, and it reverberates throughout the organization to anyone and everyone paying attention. Additionally, it influences people-related policies and practices.
- Most business leaders are very busy, given the ever-increasing challenges of business management and having multiple responsibilities and possibly roles (i.e., wearing multiple hats). This is especially true in small to mid-sized companies. The result is that leaders are busy in other functional areas, putting out fires and responding to squeaky wheels, therefore not having time or energy to place appropriate importance and attention on the management system of the business, which consists of the people themselves, as well as the policies and practices affecting them and their work.
- It is natural for business owners and investors to expect a return on their investment, and it is very common for them to expect that return relatively quickly. This short-term mentality causes leadership to emphasize immediate revenue-generating, expense-reducing, and profit-producing activities, whereas investments in people and the management system are often longer-term oriented. Investment of resources is prioritized to ensure short-term gains are achieved, often at the expense of longer-term improvements.
- People are people; they are not machines or tools. This means they have emotions, feelings, opinions, beliefs, biases, personal values, strengths, weaknesses, knowledge, experience, issues, problems, etc., that are often different from those of other team members and often different from the company’s leaders. The resulting complexities can confuse the leadership and people in the company, sometimes causing disappointment, frustration, resentment, disengagement, etc., making communication and cooperation difficult. This, of course, does not help to accomplish the mission. The truth is that some leaders cannot deal with all these variables effectively. Some might even feel like they are in the grey zone, where there are no simple black-and-white answers, and they don’t know which way to turn.
- Some business owners and managers do not know how to create an effective management system which is the people part of the business. The management system is one of three core business processes, along with business strategy and operational processes. It includes many policies and practices related to people within the business, including recruiting and hiring, training and developing, motivating and managing, involving and engaging, recognizing and rewarding, etc. Leaders with expertise in other functional areas often do not possess the knowledge and experience necessary to develop a healthy management system.
Whether recognized and acted upon appropriately or not, people truly are your company’s greatest asset. How, then, could leadership improve this area of the business? The answer to this question depends on the situation, but here are a few considerations that might be helpful:
Recognize that people are uniquely wonderful and inherently valuable. People want to be treated well and deserve to be treated with respect.
Understand that people want to make a meaningful contribution to a cause bigger than themselves, e.g., the company’s mission. Everyone is an important contributor, regardless of a person’s role within the business.
Acknowledge that a properly designed and functioning management system is necessary for people to reach their full potential and perform well as individuals and as a team.
We realize that this article provides a brief overview of a complex topic having extreme importance in all businesses intending to perform better and grow in some way. If we can be of further assistance, please contact our team.
Let's Talk about Communication (Part 3)
If you haven’t read our previous articles about communication, check them out to get a good foundation before diving deeper into this article.
Let’s Talk about Communication (Part 1)
Let’s Talk about Communication (Part 2)
Remember, we defined communication as the sending and receiving of messages through verbal or nonverbal means.
Within a business organization, communication happens internally and externally.
We defined external communication as communication that happens (usually) from the business outward. This communication comes from within the organization and is sent into the greater world beyond its employee base. This can manifest within organizations as public relations, corporate communications, marketing communications, customer relations, etc. While there are often people or departments devoted to creating external communication messaging, many messages are also being sent unintentionally from business organizations.
Types of External Communication
Let’s take a closer look at the audiences of external communication.
Customers
Customer communication is a hot topic, and rightly so. For years, companies have realized the potential for growth within their customer base. These people have already aligned with the business in some way and may even be fans. Whether they come back as repeat customers or spread the word about a business, this is a powerful group of people for a business. In many ways, customer communication is arguably the most essential form of external communication.
Community
This can refer to an industry’s community, a geographical community, a community of like-minded people, etc. Community refers to commonality; when speaking to various communities, organizations must cater their messages to each audience. This is a great way to shed a positive light on a business and create interest within intended audiences.
Public
The general public is the final external audience we will discuss here. External communication to the public may consist of branding campaigns, marketing efforts, and customer initiatives. This form of communication generally helps people understand who the business is, what they do, and why people should care. Communication with the public is critical for growing a successful brand and business.
Communication’s Influence on Brand
Everything a business does, says, portrays, or broadcasts reflects that business. Each activity sends a message to their audience, reflecting who they are and what they stand for. Every action reflects their brand.
For example, imagine a large, national brand that promotes an upcoming sale. Perhaps the verbal message is “15% off now through Sunday… don’t miss out…” and the nonverbal message includes an excited tone and brightly colored graphics. From this message sent by the company, the receiver of that communication may understand that this is a fun business with much enthusiasm for their products, and they also have a sale. Three weeks from now, the person who saw that message from the company may have forgotten about the sale but still remembers that brand as being positive and exciting. The communication sent out from that company impacted the receiver’s perspective on their brand.
Why should we care? Well, people’s impressions influence their perspectives, determining whether they become interested in your company and its products/services and eventually whether you’ve gained a customer and fan of your brand.
Intentional vs. Unintentional Communication
The catch is that all communication may not be intentional. While the company may have intentionally wanted to share the news about their sale earlier, the interpretation of them being a fun company may have been coincidental. Unfortunately, unintentional messages are often not very positive.
For example, let’s say an organization plans to advertise an upcoming customer appreciation day in the local newspaper. The known external communication is whatever information is verbally shared in the advertisement – perhaps the dates and details of the event, along with the nonverbal communication – maybe the colors, fonts, and images that reflect the company’s brand. These elements are the intended communication from the company to the community. Less likely to be noticed is how the employee who worked on the advertisement interacted with the representative at the newspaper. Although their interactions were not the planned communication, if the employee was very rude to the newspaper representative, that employee unintentionally communicated negative things about the company.
Communication does not end with what is intended. Often, what is unintended gives an even better picture of the heart and culture of the company.
That is why communication is so important! Companies can communicate with their customers, the community, and the public. Whether their messages are intentional or not, each reflects on that organization’s brand. People’s experiences create impressions in their minds, and those impressions help determine what people think of an organization, which will determine how they respond to the message.
Have a Plan for Communication
While companies cannot control every communication that happens during a year/month/day/week/hour, the importance of having a plan is evident. The better the plan, the better the results. This applies to every area of business, but especially to communication. Organizations should create holistic, internal and external communication plans and processes, which can be followed and carried out by the entire team.
Creating a plan gives you a better chance of sending messages on purpose, having your message received and understood as intended by the right audience, and growing your business.
Contact our team for more information or help with communication planning and strategies, as well as more information on this and other communication topics.
Let's Talk about Communication (Part 2)
If you haven’t read our previous article about communication, check it out to get a good foundation before diving deeper into this article.
Remember, we defined communication as the sending and receiving of messages through verbal or nonverbal means.
Within a business organization, communication happens internally and externally.
We defined internal communication as communication within the business, usually between employees. This can include vertical and horizontal communication channels, from higher-level employees to/from lower-level employees (vertical) and communication between same-level employees (horizontal).
Types of Internal Communication
Let’s take a closer look at the types of internal communication.
Employee to Employee Communication
This includes conversation and interaction between employees of an organization. This is a peer-to-peer communication related to work or personal matters and is generally the least formal type of communication within the organization.
Employee to Manager Communication
This includes messages being sent from employees and received by managers. The content of these messages may be about current projects or logistical issues and is often a more formal communication style than employee-to-employee communication.
Manager to Employee Communication
This includes messages being sent from managers and received by employees. Examples of this type of communication may involve delegation of tasks, requests for status updates, etc., and can be done formally or informally.
Employee to Company Communication
Employee-to-company communication is primarily based on the feedback employees give to the organization. This could be done informally or through surveys and reflect employment satisfaction, excitement about the brand, etc.
Company to Employee Communication
This type of communication consists of messages released from the organization to its people. While we know people created these messages within the company, the content is presented to come from the organization as an entity and is often relatively formal.
Formal and Informal Internal Communication
Within a business organization, the formality level varies per message and circumstance. For example, when speaking to a manager or leader of the organization, it is natural to become more formal than talking to a peer.
The formality could be reflected in words, tone, communication channels, etc. It is revealed in both verbal and nonverbal choices. Unfortunately, people have varying expectations and understanding of what is formal, proper, and appropriate. So the interpretation of communication can become a problem. Managers can feel disrespected by their teams, and employees can feel overwhelmed by their organizations, leaving everyone feeling misunderstood and frustrated. Whatever the circumstance, most of these issues can be traced back to the root cause of poor communication. Ultimately, this affects the company’s culture or is a reflection of it.
Pause and think about all the daily communication in a single organization, including employee-employee communication, employee-management communication, employee-customer communication, etc.
The quality and importance of communication within an organization directly connect with the culture and, ultimately, the success of that business.
Have a Plan for Communication
While companies cannot control every communication that happens during a year/month/day/week/hour, the importance of having a plan is evident. The better the plan, the better the results. This applies to every area of business, but especially to communication. Organizations should create holistic internal and external communication plans and processes, which can be followed and carried out by the entire team.
Creating a plan gives you a better chance of sending messages on purpose, having your message received and understood as intended by the right audience, and growing your business.
Contact our team for more information or help with communication planning and strategies, as well as more information on this and other communication topics.
Let's Talk about Communication (Part 1)
Recall the last time you had a conversation with someone that lasted more than 5 minutes. Was it in person with a family member? Were you on the phone or a video call with a colleague? Did you walk away with any new information that helped you somehow? Were you motivated or discouraged by the conversation?
Every single interaction we have in a day has the opportunity to move us forward or hold us back. Interpersonal communication can influence us no matter who it’s with and how it’s accomplished. This is why it’s important to surround ourselves with people who will challenge us to move forward and live optimistically.
The Importance of Communication
The word “communication” triggers different thoughts and feelings for everyone, whether you’ve begged a significant other to communicate more, felt the strain of not talking to a close friend for a long time, or maybe the leadership at your company that claims team communication needs to improve. Communication is at the center of every significant, ongoing relationship, whether that is in the personal or professional realm.
To ensure we are on the same page, let’s think of communication as sending and receiving messages through verbal or nonverbal means.
Verbal and Nonverbal Communication
Breaking this down further, we understand that verbal and nonverbal forms of communication exist. Think of verbal communication as anything spoken or written – literally what is said. Think of nonverbal communication as anything expressed without spoken or written words – how what is said is said.
Many messages are being sent and received at any given moment, meaning people are almost constantly communicating in some way, even when they don’t realize it. For example, if a friend tells you a story about their weekend at the lake, you may not verbally say anything. Still, your nonverbal communication could convey that you aren’t interested in their story, perhaps by avoiding eye contact, checking your phone during their story, etc.
I’m sure you’ve probably had the experience of talking to someone but notice that the other person doesn’t seem to care about what you’re saying. They may not realize that this is the message they are sending, but that is undoubtedly the message you receive.
For example, let’s say that the CEO of an organization announces to the entire team that they will have a holiday party for everyone on Monday after work. The CEO verbally communicates the event’s time, date, and details and says, “I’m very excited for the opportunity to spend more time with each of you at this celebration.” While verbally communicating these things, they could also be shifting their weight from side to side, fidgeting with their hands, and grimacing. This sends nonverbal messages to the audience, perhaps revealing that the CEO is nervous about interacting with the team or that they are not interested in attending. The audience receives verbal and nonverbal messages, interprets what they see and hear, and then determines what is being communicated.
Internal and External Communication
Speaking specifically from a business communication perspective, there are internal and external communications to account for.
Internal communication is simply the communication that happens within the business, usually between employees of that organization. This can include vertical and horizontal communication channels, from higher-level employees to/from lower-level employees (vertical) and communication between same-level employees (horizontal). For more information, check out our article about internal communication!
External communication is the communication that happens (usually) from the business outward. This communication comes from within the organization and is sent into the greater world beyond its employee base. This can manifest within organizations as public relations, corporate communications, marketing communications, customer relations, etc. While there are often people or departments devoted to creating external communication messaging, many messages are also being sent unintentionally from business organizations. For more information, check out our article about external communication.
A Focus on Business Communication
Communication can be a tricky thing. It’s always happening, and we aren’t always aware of it. It exists in personal and professional spaces. It’s single-handedly one of the most influential and essential aspects of life. Some still deny its importance, claiming it is an overrated topic. However, people who embrace the importance of communication and strive to improve their skills will find success. The same is true for businesses.
Pause and think about all the communication that occurs daily in a single organization. This includes employee-employee communication, employee-management communication, employee-customer communication, etc. The quality and importance of communication within an organization will directly impact the culture and success of that business.
The effect of communication is not limited to what is intended. Often, the unintended consequences of communication provide a better picture of the heart and culture of the company. In other words, communication is not always intentional, and often, we can learn the most from unintended messages as they reveal the true story.
That is why communication is so important! Companies can communicate with their customers, the community, and the public. Whether their messages are intentional or not, each reflects on that organization’s brand. People’s experiences and messages received create impressions. Those impressions help determine what they think of the company.
Have a Plan for Communication
While companies cannot control every communication that happens during a year/month/day/week/hour, the importance of having a plan is evident. The better the plan, the better the results. This applies to every area of business, but especially to communication. Organizations should create holistic internal and external communication plans and processes, which can be followed and carried out by the entire team.
Creating a plan gives you a better chance of sending messages on purpose, having your message received and understood as intended by the right audience, and growing your business.
Contact our team for more information or help with communication planning and strategies, as well as other communication topics.
10 Steps to Achieve Your Greatest Goals
Throughout our lives, we’ve all heard things like “follow your dreams” and “do what you love.” But these approaches to life aren’t possible without setting and pursuing goals.
Even if we don’t realize that we’re setting goals for ourselves, we are. If our progress in life is partly determined by our ability to set and achieve goals, then why don’t we practice this skill more often? It’s probably because we don’t have an effective and reliable process to follow.
Given that, let’s break down the process of setting goals so we can better understand and pursue them.
Step 1: Write Down the Goal
What is it that you want to achieve? The first step in achieving any goal is to identify exactly what you want to accomplish, and then write it down.
Example: I’ll go on a river cruise in Europe next spring.
Step 2: Recognize the Rewards
Once you’ve articulated your goal, consider the rewards you’ll reap by achieving it. Rewards are all the positive things that will become a reality because you’ve reached your goal. These rewards may be related to your physical condition, personal relationships, work benefits, or mental health. Identifying all these rewards will help you mentally justify the importance of the goal, which means you’ll be more likely to do the work it takes to reach the finish line.
Example: I’ll get to relax, see new places, try new foods, and spend quality time with my partner.
Step 3: Consider the Consequences
On the flip side of rewards are consequences. Consequences are all the negative things you’ll experience if you don’t achieve your goal. These are the things that most people wish to avoid, so identifying them will help you realize the importance of the goal. After all, if you don’t achieve your goal, these are the consequences you’ll face.
Example: I’ll regret not going. I may not find a better time to go. I’ll miss an amazing opportunity to relax. I’ll disappoint my partner.
Step 4: Determine the Obstacles
The fourth step in goal setting is determining the obstacles you may have to overcome while you pursue your goal. These obstacles may be external (things you can’t control that come from the outside world). For example, the weather may be an obstacle for an outdoor event. These obstacles can also be internal (things that come from within you). For example, if you often struggle with motivation, that could be an obstacle!
Of all the goal-setting steps in this article, this one is arguably the most important. The more obstacles you identify, the more likely you’ll find ways to overcome them (in the next step), and the better chance you’ll have at reaching your goal. Even though this is one of the most valuable steps, it’s also the most skipped step in the goal-setting process. Why? Well, don’t we usually come up with a goal and immediately jump to how to get it done? Of course we do! This step takes us out of our regular routine of “getting right to it” and makes us pause to consider the challenges. So it’s not natural—and it might take some time to get comfortable thinking this way.
Example: There might be travel restrictions. The trip might be too expensive. I’m not very good at trip planning. I don’t know the river cruise provider options. I don’t have a passport.
Step 5: Brainstorm Possible Solutions
Now that we’ve identified the obstacles that could get in the way of achieving our goal, it’s time to brainstorm the possible solutions to those obstacles. Consider the solutions you could use to resolve the issues you could encounter.
Brainstorming should not be confused with decision-making. In this step, let your mind go wild and think of every possible solution to the obstacles you’ve identified. The more thoroughly you consider solutions, the more likely you’ll come up with brilliant ideas. Don’t just go with the first thing that comes to mind, since that will rarely be your best idea.
Example: I’ll learn how to get travel updates. I’ll save money. I’ll consider travel insurance. I’ll hire a travel agent. I’ll get help with the planning. I’ll get the proper travel documents.
Step 6: Articulate Action Steps
At this point in the goal-setting process, we finally arrive at planning action! It’s time to figure out what to do. We’ve identified what we want to achieve, why it’s important, what could get in our way, and how we could overcome those obstacles. Now, it’s time to decide what to do about it.
In this step, consider the actions you must complete to achieve your goal. Write out the action steps in a simple list that you can follow.
Example: I’ll research the latest travel restrictions. I’ll get travel insurance. I’ll save some of my paycheck every week as a vacation fund. I’ll ask my partner for help with planning. I’ll hire a travel agent. I’ll get a passport.
Step 7: Create a Timeline
To ensure you achieve your goal within an appropriate timeframe, it’s important to identify the due dates for each action item you listed in the previous step. If you must complete those action items in a particular order, this is the time to capture that and set deadlines accordingly. With a well-planned action step timeline, you can confidently achieve your goal within the timeframe you desire.
Example: I’ll immediately start saving some of my paycheck every week. I’ll ask my partner for help with planning by April 3. I’ll hire a travel agent by April 15. I’ll research the latest travel restrictions by May 20. I’ll get my passport by November 15. I’ll get travel insurance by December 5.
Step 8: Ask Others for Help
Many people feel like they’re alone in achieving their goals, but there are almost always people who can help you on your journey. If your goal is professional, you may be able to depend on colleagues or team members. If your goal is personal, perhaps you have a partner, close friend, or family member who can help. This help can come in the form of support, or it can involve delegation. If there are tasks on your action step list that others may be able to do, consider asking for help or delegating to them.
Example: I’ll ask my partner to get travel insurance and my travel agent to book the cruise.
Step 9: Identify a Completion Date
In this step, identify the date you’d like to complete your goal. For some goals, this deadline is given by your employer, or it may be a set date because of a scheduled event. For other goals, your target completion date could be completely determined by you. Choose a date that makes sense for you and your goal, then pursue your goal with that date in mind.
Example: I’ll complete my goal by next spring (the time of the cruise).
Step 10: Craft Affirmations
The final step in the goal-setting process is to craft affirming statements. Unfortunately, many people think this step is a little too “fluffy” and skip it. But science supports the idea of affirmations, and while they may feel uncomfortable or strange, they can be very beneficial.
An affirmation is a statement that you know to be true about yourself or various aspects of your goal, even in times of doubt. People tend to talk negatively to themselves, and affirmations give you space to speak positively instead. Tell yourself things that will increase your confidence and encourage you to pursue your goals, even when you don’t feel like it or you doubt yourself.
Example: I am a world traveler. I can be dedicated to saving money. I’m an exciting partner. I can successfully plan a trip.
By understanding and using an effective goal-setting process, we can set realistic goals and pursue them with confidence. While most of us were never taught these skills in clear and obvious ways, success awaits those who learn and apply this knowledge.
Happy goal setting! May you achieve many great successes.
Celebrating 20 Years in Business!
Hello Friends,
It’s hard to believe that it’s been 20 years since the inception of Hockenberry Management Consulting. Time really does fly, especially when you’re having fun. We love what we do at HMC and are privileged to work with great clients, so we truly are having fun!
Some things remain the same even after two decades. In order to grow a business, organizational performance matters. For a business to perform effectively, a great plan must be executed well. You must have good people excited to go to work every day, along with efficient processes that deliver quality products and services. Creative marketing must align with your business objectives and sales goals, and meaningful customer relationships matter. These and other factors must be supported by great leadership, solid communications, a culture conducive to the growth plan, and a systems approach to the way things are done.
Some things have changed since 2001 when we started advising, coaching, and training business leaders. Thinking back, that’s the year George Bush became president, Bob the Builder debuted in the US, Shrek was released in theatres, Barry Bonds broke the single season homerun record, the US invaded Afghanistan, and China was granted normal trade status with the US. Billie Eilish was born that year, and we lost Dale Earnhardt, Chet Atkins, and George Harrison, along with Todd Beamer and some 3000 other innocent, brave Americans on a single, sunny day in early September.
Two things are certain; change happens and the world is not the same as it was 20 years ago. People, including customers and employees, are not the same either. They think and behave differently, and therefore interact with your company differently. Are we really back to “normal”, or even a “new normal”, during a time some refer to as “post-pandemic”?
If you own or manage a business (or nonprofit), your plan for growth must continually evolve, given ever-changing times in your part of the world.
If we can be of assistance to you or your friends in any way, please feel free to reach out. Let’s talk.
Finally and most importantly, as we reflect on the past and look forward to the future, we say a heartfelt “thank you” to our clients, partners, and friends for your support over the past 20 years.
Sincerely,
Jeff & Heather
Kicking Off Our 20th Year in Business
Dear Friends,
As we kick off our 20th year at Hockenberry Management Consulting, I feel a great sense of gratitude. For the past 19 years, we have had the privilege of working with some of the most wonderful people in some of the best companies in the region.
To our clients…
We sincerely thank you for allowing us to play a part in your efforts to make improvements in your business and achieve growth. We’ve enjoyed working together and look forward to continuing this journey with you.
To our clients and colleagues who have recommended us…
Thank you for trusting us enough to refer your friends and acquaintances. It has been our pleasure to serve them and welcome them into our community of successful clients.
To friends we have not met yet…
Heather and I look forward to meeting you and working together to make improvements to grow your business.
While it’s fun to celebrate this important milestone, which lasts for only one day, I’m reminded that it’s what we do with the other 364 days that make it possible.
Wishing you much success with your 364.
Sincerely,
Jeff Hockenberry
Consultative Sales from the Buyer’s Perspective
Have you ever considered what it’s like to go through the consultative sales process from the buyer’s perspective?
If so, wouldn’t that make it more of a buying process rather than a sales process?
What then would be the role of a salesperson if the buyer is in control and making all the decisions at every point in the process?
Before answering these questions, let’s clarify several points.
What is Consultative Sales and How Important is it?
First, a consultative sales approach may be appropriate for organizations (B2B) as well as individuals (B2C), but for now we will focus on organizational sales.
Second, we are referring to a consultative sale versus a transactional sale.
- In transactional sales, the buyer is focused on the product or service and its price and features. Of course, availability is a factor as well. For example, the retail sales process often involves a transactional process where the buyer chooses the product they want, takes it to the register, and a cashier rings up their order and accepts payment. Note that there are exceptions to this rule when retail sales transcends mere transactions.
- In consultative sales, the buyer is focused on value, and not necessarily your product or service itself, nor its features and price. Value considers gains to be realized by your product or service, and how this benefits the company as well as the individual buyer, then compares this to the costs associated with receiving it.
Third, effective consultative salespeople should follow a process. Being personable, good looking, and intelligent won’t necessarily guarantee success in sales. The process followed should closely mirror the process a buyer goes through when making a buying decision.
Fourth, every business is involved in sales even if they don’t realize it or have a dedicated sales force. In order to operate, all companies have plans and activities that enable them to perform in several major functional areas. For the sake of discussion, here are some basic definitions.
- Marketing: you and your products and services becoming known to your prospects.
- Sales: helping prospects become customers by deciding to buy your product or service.
- Delivery: delivering what was promised to customers during marketing and sales.
- Support: supporting the marketing, sales, and delivery of products or services to customers.
As you can see, sales is one of the four major functional areas in business, whether we do it well or not. As with all four major areas of the business, the better we plan and perform the sales function, the better the outcomes will be.
The Buyer’s Perspective and Consultative Sales Response
Some of today’s sales training includes a series of steps to take and certain tactics to use in order to convince a prospect to buy something they may or may not want. There is certainly merit to following a process, and skill definitely helps the conversation flow smoothly. However, if your product or service has the potential to add value for the prospect or their company, there is no need to convince them to buy something.
So, if most qualified buyers are sincerely interested in adding value to their organizations and benefitting personally in the process, what is their perspective and how should consultative sales mesh with this viewpoint?
The Buyer’s Perspective: The process begins with an introduction. The potential buyer gets an opportunity to meet you as the salesperson. They are getting their first impression of you, assessing your appearance, demeanor, confidence level, professionalism, communication style, personality, etc. Within a matter of seconds, they have decided whether they like you enough to continue with a conversation or not. If so, the conversation continues. If not, they may be too kind to end the meeting abruptly, but their enthusiasm level will certainly fall sharply if their first impression of you is not favorable.
- Consultative Sales Response: Although this may be the first time you, as the salesperson, ever met this prospect and thus have not yet introduced your company or its products and services, the sales process and your prospective buyer’s decision-making process has already begun. The truth is they’re not going to buy whatever you’re selling until they first buy you. It begins with the introduction, and you must make a good first impression.
The Buyer’s Perspective: Assuming the potential buyer’s first impression of you is favorable, the process continues with the prospect forming an opinion of you and the company you represent. Consciously or not, they will judge your communication style, your sincerity, your openness and honesty, your trustworthiness, your representation of the company and its products and services, whether you waste too much time with small talk, whether you ask good questions, whether you listen, whether you care about them, etc. Prospects are people, and people tend to do business with other people they like and trust.
- Consultative Sales Response: Developing a good rapport with your prospect after the introduction will determine whether they trust you enough to answer any additional questions. You must gain your prospect’s interest and earn their trust in order to continue asking questions as the meeting moves forward. Otherwise, you won’t have an opportunity to learn enough about their situation in order to know if your product or service will add value for them.
The Buyer’s Perspective: If the introduction went well and the prospect thinks favorably of you and has learned to trust you, then they will likely be expecting questions from you about their company and its situation. If they believe you genuinely care, they will likely be anticipating questions about how the organizational situation affects them personally. By answering such questions, the prospect will feel understood, gaining more confidence that you will be able to recommend appropriate next steps in their company’s best interest and for themselves.
- Consultative Sales Response: Learning about the situation within your prospect’s company and their needs, as well as your prospect’s personal wants, will require their trust in you. It will also require that you ask good questions to uncover these things and listen carefully and empathetically to the answers. Learn to ask good questions and listen well, so that you can discover the real situation, gain an understanding of the company’s true needs, and appreciate the impact these things have on your buyer individually and personally.
The Buyer’s Perspective: By this time in the process, the prospect expects to receive your recommendations, and is looking forward to the potential value those recommendations represent for them and their company. They will want to know and understand the benefits of doing business with you and even the consequences of not doing so. They are more interested in the value that you can deliver and less so your products and services, their features, and prices. In fact, if the process has gone well up to this point, your prospect is looking forward to not only hearing your recommendations but to doing business with you. Even if obstacles exist in the mind of the buyer, assuming your recommendations will actually add value, they are hoping you will help them get past such barriers. Buyers don’t expect to be sold with hard closes, rather they are anticipating making final decisions and giving their commitment to working with you and your company as a natural part of the conversation with you.
- Consultative Sales Response: Whether your process includes a formal proposal or not, you must enter such a conversation with solid recommendations already in mind, addressing the needs of your prospect’s company, being able to demonstrate the value proposed, preferably while simultaneously satisfying what they may personally want to accomplish as well. Anticipate obstacles and understand you are in the process of becoming a valued team member expected to help overcome such barriers to moving forward. Once the buyer makes their final decision to work with you, help create a smooth transition to project implementation (i.e. delivery of products or services that will provide the value that you promised).
The Buyer’s Perspective: Once the prospect commits to doing business with you, they expect you and your company to deliver what has been promised, whether that promise is formalized in writing or verbally stated. Since you are the person they have learned to like and trust, they expect you to continue looking out for their best interest, serving as their advocate throughout delivery of your company’s products and services. If the project goes well and the outcome is what was expected, they will look forward to the possibility of continuing to work with you as opportunities arise. They may also be interested in telling their friends about you and your company.
- Consultative Sales Response: Don’t sell and run, disappearing after signatures are affixed to the contract. The consultative sales process does not end when the prospect agrees to your recommendation, commits to doing business with you, and becomes a customer. To the contrary, this is just the beginning of a new professional relationship that will hopefully be enjoyable and rewarding, while resulting in repeat business and referrals to other potential buyers who you can assist through their buying process, given their own unique situation.
The Consultative Salesperson’s Role
To summarize, assuming that your product or service has the potential to add real value to prospective customers, and the buying process is not merely a simple transaction, the salesperson’s role in the consultative sales process is to assist the prospective buyer in their decision making process.
Since the buyer is in control of their own thoughts and decisions and has no intention of being manipulated, the salesperson may guide the conversation at times, but not for the purpose of convincing the prospect to do something not in their best interest.
Rather, the consultative salesperson’s role is to help the buyer make a wise buying decision that will meet needs within their organization by adding real value, while benefitting them individually and personally in the process.
For more information or help on this and other topics, contact our team.
Marketing Made Simple(r)
Can you think of a time in your life when you went from being completely unaware of a product or service’s existence to absolutely having to have it and wondering how you ever lived without it? Likely, this transition from not even knowing it existed to being a purchasing customer and raving fan, was in part, the result of good marketing.
A Practical View of Marketing
There are numerous perspectives on what marketing is and what it is not. Technically, a textbook answer exists, but we prefer to frame this concept considering what we have learned about growing businesses for many years.
At its core, marketing is about building awareness, creating interest and need, and influencing a potential customer to act.
Marketing is often confused with advertising, branding, and sales. Although these are all very closely related topics, there are some key differences to keep in mind. Advertising is more focused on mass exposure through paid channels, often about a specific sale or talking point. Branding is more focused on how the company represents itself and the impression people have when they think about that company. Sales is more focused on the actual process of selling products/services, either through transaction or consultation. While marketing may include advertising and branding activities, it generally deals with the overall effort to make people aware of your products/services, create interest and build trust, and ultimately lead them to a purchase through your organization’s sales process.
You can market a business, a product or service, and even yourself. In most businesses (especially small to mid-sized), all three can be equally important because customers will decide whether to buy from your company based on your business and its people, your products and services, and you!
Why Marketing is Important
Let’s take a 20,000-foot view over the basic structure of any organization for a moment. There are four major functional areas within every business. Marketing is the first of these functions, along with sales, delivery, and support. If we think of this as an order of operations issue, you have to market before you can sell, and you have to sell before you can deliver your products and services, and you have to deliver (including production) before there would be any need for support. In the opposite way of thinking, you can’t sell your product/service if people don’t know about it (through marketing), there is no point in producing the product or delivering the service if it hasn’t been sold (through sales), and there is no point in supporting something that doesn’t exist (delivery).
No marketing means no sales, which means no production/delivery, which means no revenue, which means no business. The success of a business draws a straight line back to its ability to market well.
Pause for a moment and think of a large, popular brand with a variety of products (maybe shoes, clothes, appliances, vehicles, insurance, etc.) and quickly think of all the places you have seen or heard of that brand in the past month. Maybe you saw a commercial on TV or heard them mentioned on the radio… maybe there was sponsored content that popped up on your Facebook feed… maybe you saw an ad for that brand on a website that had nothing to do with that product… maybe a friend or relative mentioned it in a conversation… maybe you got a flyer in the mail…
There are seemingly endless ways to be marketed to. In essence, these brands are simply trying to grab your attention to make you aware of them, help you realize how much you actually want/need them, and remind you of this until you finally become a customer.
As small or mid-sized business owners, the same is true! Our goal at the highest level is to make the right people aware of who we are and what we do at the right time and in the right way. Our goal is to help them see and understand that our product/service is essential to them – to their success, survival, happiness, etc. The better job we can do with this, the more likely they will come to a buying decision.
Understanding Different Types of Marketing
There are three major areas of marketing to consider and they all have different purposes and characteristics, so let’s discuss each.
- Branding is the first area of marketing. This is the part of marketing that refers to your image and includes your logo, colors, fonts, and overall visual style. Traditionally, the definition of branding could be this simple, but let’s expand our thinking to the bigger picture. We tend to think of this from a larger perspective, which includes how your team answers the phone, how customers feel when they interact with you and other people in your business, how clean your fleet of vehicles is, the uniforms you wear, even the personal hygiene of your employees, etc. All these things reflect who your business is, what your business does, and what your business stands for… which makes up your brand.
- Targeting is the second area of marketing. This is the part of marketing that includes identifying the people who are most likely to buy your products/services and then delivering a message to move them through your sales funnel as quickly as possible. Like the other two areas, this one should be very strategic and very purposeful. In today’s world, some of the most effective and trackable targeting campaigns are done on a digital platform (i.e. Google Ads, social media ads, geofencing, retargeting, etc.).
- Nurturing is the third area of marketing. This is the part of marketing that a lot of companies (unfortunately) forget about or put at the bottom of their list of priorities. The idea of nurturing is primarily focused on your existing customers. Do not forget about this group of people! They have already determined that your product/service is worth having and that your company was the best way to get it. These people likely already know and trust you and are by far the people most likely to buy your product/service again or recommend it to someone else. Take care of these people by staying in touch, making sure their needs are met, and being present. This assures them that they made the right choice in working with or buying from you and makes them even more likely to buy again or recommend you to a friend.
Common Marketing Mistakes
Earlier, I mentioned the importance of reaching the right people. Who are the “right” people? Well, they are the ones most likely to purchase your products/services, and therefore should become your target audience for certain marketing efforts.
Unfortunately, businesses waste a lot of money doing what I call “guess-marketing”. This is when business owners with expertise in areas other than marketing simply throw money toward advertising options and hope something sticks.
They often don’t know if it’s capturing the people who are most likely to buy the product/service and so they are likely missing the mark and wasting dollars.
If you’re reading this saying “that’s me,” please know that you are not alone. Business owners are rarely marketing experts and therefore lack the knowledge and understanding needed to market strategically. There is simply too much to know and understand. Some common mistakes business owners make include:
- Falling into the trap of buying whatever is being sold to them. So, if the radio company comes knocking, suggesting radio ads, that is what the business owner will do. If the billboard company comes to sell a billboard, they will buy a billboard.
- Having a higher comfort level with a certain type of marketing because of previous experience with that channel and only sticking to those marketing outlets. What is most familiar is not necessarily the most effective.
- Trusting only the suggestions of others to build a plan. Unfortunately, just because a certain type of marketing activity comes recommended by a friend or colleague, doesn’t mean they understand your business, market, and goals (and the best way to accomplish them) well enough to make an appropriate recommendation.
We want to be able to make sure marketing dollars are going toward something that will get the proper return for the business. Make sure your marketing decisions are rooted in strategy and purpose, so you don’t waste your time and money on guess-marketing.
The Need for a Good Marketing Plan
A good plan is useful for any major functional area of the business, including marketing. A plan makes people aware of specific goals for their area of the business operation and how that ties into the overall business strategy for growth, along with details about who is going to do what and when.
As with other good plans, the marketing plan should be customized for your company, taking into consideration many factors, especially your company’s business growth objectives and sales goals. Ideally, your marketing plan will be created in light of the strategic plan and sales plan for your business, which together answer questions related to a wide variety of topics including products, services, markets, opportunities, prospects, customers, buying habits, competition, trends, product development, goals, resource levels, etc. Without a good plan, the marketing effort will likely be a series of guess-marketing activities, i.e., throwing stuff up against the wall and hoping something will stick.
A good marketing plan is important because it:
- Helps you build healthy awareness about your organization
- Creates opportunities for and increases sales
- Avoids confusion among customers and prospects about who you are and what you do
- Gets you on the right path to ensure you are making wise investments in your business
If you put together having the right reasons to connect with the right audience with the right message through the right channels at the right time, you will be one step closer to having a marketing strategy that works and helps to grow your business.
For more information or help on this and other topics, contact our team.
Clarifying Thoughts on Leadership
Defining Leadership
A quick internet search for the definition of leadership will reveal that it means “the act of leading a group of people or an organization” or “the state or position of being a leader”.
So, what does that mean?
Practically speaking, we can think of leadership simply as the ability to get things done, either on your own or through the cooperation of others. This implies that a leader knows what needs to be done and is capable and willing to either do it or work with other people (subordinates, peers, superiors) who are capable and willing to get it done.
Leadership is Not Authority nor Management
This working definition does not reference authority nor management, i.e., a leader does not necessarily have to hold a position of authority or management within an organization. A leader may be someone who is able to get things done individually or collectively with others, while not having a management position or title. Conversely, a person having a title and position of authority within an organization may not be able to get things done either individually or collectively with others. This person may be in a leadership position, but their behaviors do not reflect those of a leader.
So, to be clear, leadership is not the same as…
- Authority, which denotes having the right to make decisions, have control, give orders, and force others to comply with your commands.
- Management, which denotes directing and controlling a group of people and operations, as well as other resources within an organization.
Leadership Styles
We should not confuse the act of leadership with styles of leadership, or the way in which someone leads. While several styles have been identified, let’s consider three examples.
- Some people in positions of leadership display an autocratic style where they assume they are smartest, know the most, and have the answers and therefore believe its best if people just do whatever they say without questioning decisions and instructions.
- Some people prefer a democratic style where they get input from other people, asking for opinions, often generating a collection of ideas from which decisions are ultimately made and people know what to do.
- Some people operate with a laissez-faire style where they may seem quite uninvolved, allowing employees considerable freedom to think and act on their own, without providing much direction.
It might be tempting to assume that leaders consciously choose a style and adopt it for themselves, but it’s probably more accurate to believe that the styles pick the leaders. In other words, leaders, being people, have certain values and beliefs that determine how they think, make decisions, behave, and treat others. So, people in leadership do what they do because they are who they are, and these style labels are ascribed to them by others.
Characteristics of Leaders
Likewise, we should not confuse the act of leadership with the characteristics of individual leaders. Consider this: Would you rather work with a person who is…
- Honest or dishonest?
- Kind or mean?
- Generous or stingy?
- Decisive or uncertain?
- Humble or arrogant?
- Knowledgeable or clueless?
This list of personal characteristics could go on and become quite long. However, it’s important to distinguish between these qualitative descriptors of individuals and leadership itself, which involves getting things done either individually or by working with others.
To be sure, styles of leadership and individual characteristics matter significantly and will have a bearing on the degree of success one may have in a leadership role, i.e., the degree to which a leader is able to accomplish goals and tasks through the cooperation of others.
Essentially, the success of a leader is supported by their personal style and individual characteristics, but they are not definitions of leadership nor measurements of that leader’s success.
The Value of Leadership
Of course, every business and nonprofit organization desires people on their management team to be good leaders, having the ability to get things done and influence others in a positive way to do the same, while managing their area of operational responsibility, along with other resources.
To appreciate the value of good leadership capabilities within the management team, just imagine a past personal experience, or perhaps a current one in your company, where a person with a management title or position of authority did/does not possess good leadership skills. Yes, most of us have had this experience and know how many problems can occur when this is the case.
On the other hand, imagine working for a leader who knows what needs to be done, communicates that effectively, shares the workload appropriately, provides encouragement and support as necessary, and then gives credit (fairly) for a job well done. This is a much more motivating scenario.
Effective Leadership Teams
So how do you build an effective leadership team within your organization? The answer depends on the situation, and every situation is unique. But here are a few thoughts that might be helpful as you consider this very important question.
It has been said that organizations rise and fall on their leadership. In other words, leaders affect everything within your company, including the planning, the people, the operations, the customers, the culture, etc. which means they affect the outcomes as well.
If you intend to fill a management position, or any other key position requiring leadership ability within your company, consider the following:
- Leadership starts with a person. So, make sure there is a process for identifying and selecting people who already have the personal characteristics you desire in your leadership team. This means you get what you want, and they don’t have to become somebody they are not.
- An individual’s personal characteristics will heavily influence their leadership style. So, make sure there is a process for identifying and selecting people who have demonstrated a leadership style that is consistent with your company’s values and culture.
- Leadership involves the ability and willingness to get things done, either individually or by working with others. So, make sure the process includes a way to identify people who understand this, possess a track record for getting things done, influence and work well with others, and demonstrate the attitude necessary to be a member of your management team.
- Even the best leaders need to continually learn and grow. So, make sure there is a solid training and development program for your leaders. This should include opportunities to increase knowledge (both job-specific and leadership knowledge), which is necessary to perform the job and lead effectively. It should also include opportunities for personal development, keeping in mind that leaders are people, and people must grow in order to remain vital to your organization and effective as leaders.
- Focus on being the best leader you can possibly be, as you work to build an effective management team. Most managers desire to be effective leaders… and they want to be on a team with other good leaders… and most of all, they long to report to someone who is a great leader.
The subject of leadership deserves our focused attention because it’s foundational to organizational success, impacting every aspect of your business or nonprofit. The ability and willingness of leaders to get things done, while influencing others to do the same, affects how well your organization performs and grows. So, let’s take steps to equip our businesses with the types of leadership they need and give our employees the leaders they deserve.
For more information or help on this and other topics, contact our team.