Sales: Art or Science?

Basic Business Cents

Some people denigrate themselves and think they can’t sell. They view others as born salesmen and defeat themselves. I submit that selling is a process like every other facet of business and therefore a science rather than art. It can be defined as a customer focused approach presenting the product/service to meet the customer’s needs. The sales process can be viewed in three areas, Listen, Learn, and Adjust. These areas are not serial but intertwined.

Listen

Many sales people make a big mistake by opening the discussion with the prospect by telling about their company, their products/service, and themselves. This can be boring, irrelevant, and self-centered. Prospects are more interested in their business, their problems, and themselves, so ask questions to get them to start talking. Then listen and learn. People prefer talking about themselves rather than listening to others talking about themselves. These questions might include probing for insight into the prospects wants and needs, what is important to them, their aim or vision for the future, what causes them problems, and what is their desired result from meeting with you. Listening and talking in their language helps to build a strong relationship.

Learn

There are two parts to the Learn area, pre-visit and during the visit. If possible, do the homework before the contact to show your understanding of your prospect and his/her problems. Plan the sales call and negotiate access to the most senior decision maker. Learn names of relevant people involved, their positions and level of influence, and if the prospect is funded for the solutions to their problems. Study the prospect’s business, their competitors, trends in their industry, and what others are doing to solve problems. Gather appropriate references and case studies to support your products/services. Plan the sales call. Anticipate objections and develop solutions to them with your products/services.

Observe the surroundings and the body language of the prospect during the contact. Body language is very informative and will let you know if you are on the right track. Probe for insights into problems or areas that can use improvement. If you listen well, the prospect will tell you what he/she wants to hear to become sold. Practice your sales call. There is a great saying, “The best extemporaneous talk is well rehearsed.” Avoid a canned sales pitch but be proactive and plan what you intend to do and say, how you will turn objections into positive points, and how you will close. Then be flexible.

Adjust

It is safe to say the conversation will not quite go as expected, but with proper preparation you can adjust to the situation. Fit your product/service to the recognized need. Speak in the terms of the prospect, propose solutions that have value, and sell benefits as opposed to features.

Repeat the problems in your words to show that you understand what your prospect is facing in detail; only then should you offer your solutions. The value of a salesperson is value creation for both the customer and his/her company.

Deal with questions and objections as they arise and never put them off. Avoid disagreeing with the prospect.

Use a trial close when the prospect agrees that your solution will work. If the sale is not consummated at this point you can use case studies where the solution has worked for others, or you can offer references. Make sure you have the permission of satisfied customers to use their name in your selling pursuits. Differentiate yourself and therefore your product/service will not be viewed as a commodity that can be compared on price alone.

Always, always follow up, whether you win the sale or not, to maintain a relationship with the prospect. A letter or email simply thinking them for their time and interest followed by a statement of what you learned about their business and challenges and how you can provide solutions. Close with next steps as you see them.

 The above are fundamental steps in selling but develop your own process because you are unique. Then by continuing to practice, rehearse, and improve you will develop into a successful sales person. You may be viewed as a born salesperson but you know in your heart it is because of your customer-centric selling process that you have developed, improved, and practiced over time.

Clues for Problem Solving

Basic Business Cents

The hardest part of problem solving in business is often getting started; it helps to have an outline to follow. An additional benefit of a standard approach is consistency between problem solving teams so people can fit in with new teams.

Dr. W. Edwards Deming built upon a revolving cycle approach to problem-solving which he learned from a Bell Labs friend, Dr. Walter Shewhart. He took it to Japan in 1951 when he was asked to help them turn their economy around after World War II. It further evolved from applications there to what is now called the Plan-Do-Check-Act Cycle. It is usually depicted in revolving circles but perhaps it is clearer in outline form.

PLAN:  Before any action is taken, a plan should be made to define the problem, determine who are the customers involved and obtain feedback on the nature of the problem, how it affects the customers and clarify their requirements.

·      Define:  Clearly state and obtain consensus on the problem to be addressed

o   Establish the Focus:  Narrow the focus to a manageable problem-don’t try to solve “world hunger”.

·      Measure:  Find a way to objectively measure before and after results to determine if progress is being made.

o   Examine the Current Situation: Collect data when possible, talk to internal and external customers, and get input from the people actually doing the work in the area.

·      Analyze:  Study the processes involved in the problem area and brainstorm possible causes of the problem; it is okay to think outside of the box.

o   Analyze the Causes:  Select the most likely cause (s) of the problem and develop a solution.

DO:  Try the solution on a pilot basis to see if it does indeed eliminate the identified main cause

·      Improve:  Measure the effect of the trial of the solution.

o   Act on the Causes:  Apply the solution and document the effect. If necessary try more than one approach.

CHECK:  Study the results of the trial approach to the solution.

·      Improve:  As you learn more about the problem and processes involved, document improvements in the solution approach for future action.

o   Study the Results:  If the problem is solved or the process improved measurably, take it to the Act action. If not, return to the brainstorming of the causes and develop a different solution. If necessary, go back to Plan and roll the cycle again.

ACT:  If the measurements show the solution does not work, return to identification of causes and develop a better solution.

·      Control:   Obtain consistency in the organization in applying knowledge learned to improve the performance.

o   Standardize the Changes: If the measurements do confirm the solution of the problem, then document the changes in the Organization Operating Principles or similar document.  Roll it out to other departments so the process is performed consistently throughout the organization.

o   Draw Conclusions:  Study what was learned from the problem-solving process that can be applied elsewhere.

The Plan-Do-Check-Act Cycle is a simple approach to problem solving. It becomes a way of thinking to aid in constant improvement of improving the performance of the organization. No process is perfect but the cycle can be rolled around again and again to pursue that perfection.

Understand the Work Process

Basic Business Cents

Some years ago, I was studying a Japanese process to solve problems and I thought I could improve upon it. I added a flow chart of the process involved as it is before the improvement work began and another after the process is improved to solve the problem, comparing the before and after. I was quite proud when I later showed it to a Japanese friend and he said, “We just assume you know what is going on in the process before you attempt to make any changes.” That may be a good assumption in Japan where they have grown up with process thinking, but I don’t think it is a good assumption here.

A very useful tool in understanding a work process is an Integrated Flow Chart. This not only lists the steps in the process, it places each step under the person/persons responsible for the step. The purpose is to show how the work flows and who is responsible for each step along the way. It will reveal inefficiencies, gaps, delays, and other streamlining opportunities. It will also show internal customer/supplier relationships.

To start, list each of the participants in the process, either individuals or groups across the top of a large sheet of paper. Draw a column for each participant or group in which all activities will be displayed. An example might be a Direct Employee Acquisition process with the headings of the columns Hiring Manager/Team, Recruiter, HR/Other Management, HR Administration, Applicant, and Outside Providers or Other.

Establish a beginning and ending process point. Use Post-it-Notes to add items or steps in the process. It is best to do this in a group of individuals with individuals from each column represented, as often there is conflict as to how the process actually works. In this case, discuss it until consensus, not compromise, is reached. People actually doing the work are key to be involved because often they are doing something different than what management believes they are doing. Sometimes they do not follow their work instructions because they do what they have to do to make the process work.

The name of the step is written inside a symbol on the flowchart in the proper columns with the keys being:

·      A rectangle for an action step

·      A diamond for a decision with a yes or no output

·      A circle for information purposes or cooperation

Arrows are filled in from one step to another, or laterally to information circles.

Do not edit the process at this time; the objective is to see how things are being done now in order to establish a baseline.

Then the group can begin to brainstorm better ways. It is interesting when people see the process on paper staring back at them, ideas will inevitably pop out on how to improve.

Process quality concerns are:

·      Anything which causes extra work or rework

·      Excessive dead time or movement

·      An apparent inefficiency in the process

·      An activity causing dissatisfaction to a customer, internal or external

·      More than one method of performing the activity

·      Anything causing dissatisfaction or pride of workmanship of the employee

When the group is satisfied they have removed rework, waste, redundancy, and streamlined the process, they can document the new, improved process.

The Integrated Flow Chart is simple and effective to use, It is also satisfying to those involved because they have a voice on low their work is to be done and will continue to discover other opportunities to improve in the future.

Defect Diagnosis

Basic Business Cents

No product is perfect. No service is perfect. That is because the process that produces them is not perfect. Only about 20% of the time can people be blamed, the rest of the defects or poor services are system or process problems. Unfortunately, defects become routine, and people become callous and accept them until a competitor proves they have fewer defects, better products or services.

In order to reduce defects, people need to believe defects can be reduced, and they initiate action to discover and remove causes. The main cause is variation. If the same method prescribed is not followed, applied differently, or is incorrect, defects will occur. Experience and intuition can sometimes remove causes of variation but they can also cause increased variation. An example is, “I know from my experience or I think it is better or easier to do it my way.”

Another cause of variation is materials. A leader in the field of quality once said, “Any two things not the same are different.” He was implying that nothing is exactly identical. A chicken soup manufacturer has to adjust equipment when the supply of chickens changes from one grower to the next. Maybe they were fed differently, had larger growing area for more exercise, were of different age, etc. Clothing size varies from manufacturer to manufacturer. Food delivered to a restaurant varies in texture, taste, and age. Nothing is exactly the same.

A third cause of variation is machines. Condition, tool wear, age, manufacturer, temperature, and humidity are all causes of variation in the output of machines.

The worker cause of variation should also be investigated. They may be trying to do their best but do they have the same energy in the afternoon as the forenoon, is there a difference between shifts. Is there a difference in physical characteristics, have they slept well the night before, is there a difference in mental conditions, and are they receiving different directions from supervision.

Methods, materials, machines, and workers are all causes of variation in work processes that need to be reduced. Variation can never be eliminated; it can only be reduced!

The first action is to correctly diagnose the principal causes of variation. If the true causes are not properly identified, corrective action may be carried out on a minor cause and the major causes overlooked. An analysis of the “vital few versus trivial many” will provide direction to action where the best results are attained. Data should be collected on causes of defects and grouped in like types. In this way, a priority of where to focus attention will appear.

When the most important causes are identified, then data should be collected to prove they are the main problem. Then investigate remedies and try them out on an experimental basis. Collect data again to prove they have significantly reduced defects and, if so, standardize on the new process. If this proves not to be the main solution, then restart the process to detect the main cause of defects.

As stated earlier, defects will always occur, no process is perfect, variation always exists, and process improvement action needs to be sustained forever.

Overview of Process Improvement

Basic Business Cents

People never seem to have enough time to do things right, but they always have time to do things over. This does not make sense on the surface, but it is what I have observed over time working with many organizations. It is true that performance improvement activities take time, which is precious to the small business, but that time can be found by simplifying systems and processes.

A process improvement activity has three elements, simplify, improve, and sustain.

Simplify

The performance improvement objective is to reduce waste, rework, and redundancy. The first step is to take an overview of the organization and draw a chart of the main systems, starting with the entering to your organization of the goods from your suppliers to the exiting of your goods/services going out the door to your customers. You may have parallel paths of product lines A, B, C or services A, B, and retail. Examine the chart yourself, observe how it works in the actual work area, share it with employees actually working in the systems, and look for ways to reduce cost, minimize time, and improve the quality of the system. Eliminate unnecessary steps, distance traveled, redundancy, wait time, obsolescence, and stockpiles of inventory.

When you are satisfied you have done what you can to simplify the overview, go down to the next layer of detail until you get to the detail of individual items for each worker in their work processes. The more you streamline your systems, the more time you and your workers will have to further improve the operation. Eliminate rework by doing it right the first time. Improve processes to the point that they cannot make defective products/services.

Improve

Two types of activities are needed, solve problems and improve processes. In both cases, workers need to be trained and given authority to act. Problems should be identified and resolved and not allowed to hang over the heads of the workers. Processes should continually be improved; there is always a better way. Collect data to show the problem is real or the process is improved and make decision on facts whenever possible. Tools and methods are available for conditions, where data is available and where it is not. Involve all the employees in the performance improvement quest.

Sustain

Not to be overlooked is the importance of sustaining improvement progress. Changes should be documented and communicated throughout the areas affected. Follow-up by observing adherence to the new ways and not allow backsliding into the comfortable way of “that is the way we have always done it”.

In order to be ahead, you have to get ahead. Keep reducing waste, rework, and redundancy as a way of life. Organizational performance improvement effort must be continued relentlessly forever in order to survive and prosper.

Introducing Process Improvement

Basic Business Cents

Business is tough and necessary performance improvement is a never-ending quest.  We cannot ever rest on our laurels and stand still; we are either continually improving or we are losing ground to competitors.

When introducing a process improvement program into an organization, there are many do’s and don’ts. This type of program begins and ends with leadership. There is no point in introducing performance improvement measures where the top leader does not lead. No one else can do, it must be the top person leading the way, setting the example, and motivating others to the cause. Leaders cannot merely stand on the sidelines and cheer on the employees. They must have more zeal and enthusiasm than any other employee and lead the way. The manager’s enthusiasm for work should never be less than subordinates.

The leader must then work on obtaining the same excitement for process improvement in each employee. This improvement activity requires a new way of thinking for the entire organization so that everyone is aligned in his/her thought processes. Simply driving it from the top will not get the desired results; in a one-man autocratic organization, the people will only do what they are told. The organization needs the combined knowledge, experience, and creativity of all employees. This will require a humanistic type of management that builds mutual trust and respect throughout the organization. Employees treat each other as equals in true teamwork.

Lip service or good intentions at all levels do not get results. Implementing measures to improve processes does. First, everyone must understand his/her work processes and then seek to simplify and improve them.

The leader should attend seminars and then teach lessons learned to the employees. Armed with this new knowledge, the leader should improve his/her own processes and then lead improvement teams personally to work on other key processes. The leaders need to be familiar with the true state of the organization. By observing the way employees answer questions and examine data, managers can see the real problems.

Employees sometimes hesitate to have leaders in the same training or on their improvement team because they are reluctant to state problems in front of them. This is indicative of management problems that need to be addressed before the improvement results are optimum. People need to feel secure stating the truth about conditions.

No company, system, or process is perfect and problems always exist. From the top leader to the most recent hire, all need to work together to improve the work processes and solve problems, little by little, better and better. Enthusiasm and excitement for this new journey, coupled with training and teamwork, make the work more satisfying, productive, and even enjoyable.

Quality-Centered Management

Basic Business Cents

There is no great secret to success; it is simply the supply of quality products and services at a reasonable cost that consumers will buy. Successful companies have a quality-oriented management approach which results in survival and growth in a competitive world full of problems. Without a systematic approach, fatal problems will invariably arise. As stated by Dr. W. Edward Deming in his famous four-day seminars, we are in a new age of economic competition. Those who cannot continuously improve their quality and productivity will fall by the wayside.

A quality-centered management approach encompasses a customer-oriented management philosophy and a set of specific objectives, systematic methodologies, and management practices.

Management has the responsibility of clearly stating the aim of the organization and setting specific objectives. They need to understand the true needs of the customers, not just their wants, and to anticipate future needs.

Internally, management needs to understand quality tools and methods in order to lead the way to quality improvement throughout the organization. They are the role model for quality improvement and should lead the improvement activities. Managers also have processes of their own and can demonstrate their achievements with their own work.

Many systematic methodologies exist to improve work processes like Company Wide Quality Control, Total Quality Control, Total Quality Management, Six Sigma, Reengineering, and Lean Thinking. Toyota refers to their methodology as, “Just the way we do business.” These application methods are useful in advanced situations, but it is best to start with the basics.

The first step is to understand the work processes. Just follow the trail from the time the supplies are received to the time the product is handed off to the customers and chart or list the activities step by step. The more detailed you make the list or chart, the better. Then, take a close look at the chart and opportunities will invariably jump out at you to simplify your processes. The goal is to reduce waste, rework, and redundancy in your system.

A seven-step system, The Improvement Journal, is useful to solve problems or improve processes. The steps are to identify the process or problem, examine the current situation, analyze the causes, take a corrective action, check the results, standardize the changes, and draw conclusions.

All employees have experience and knowledge and play a role in quality-centered management. They need to be enabled to take quality improvement action, which means training in not only their job skills but also in the quality tools and methods. They need to be enabled to take action because they are closest to the work and also want to perform better. Some organizations use methods like Quality Circles or Improvement Teams to allow workers work as a team to solve problems or improve their work processes. This might sound like extra work for all involved but it will eventually result in simpler and easier work.

Quality-centered management will, in the long term, lead to lower cost, better on-time delivery, higher productivity, more business and a higher standard of living.