Strategic Thinking Blog

Effective Performance Management Must be a Continual Process

2012-05-23T14:52:43Z

The term Performance Management means different things to different people. For some organizations, Performance Management is synonymous with Performance Review which is most often a yearly process of reviewing an employee’s accomplishments and assigning ratings based on pre-determined categories.

Performance management is a broad term coined by Dr. Aubrey Daniels in the late 1970s to describe a technology for managing behavior and results; two critical elements of what is known as performance. Effective Performance Management involves continual measurement and coaching to ensure that goals are being met.

Improving an organization’s performance then requires that employees at all levels receive consistent feedback on their results and the behaviors they’re utilizing. Receiving feedback mid-stream provides the opportunity to refine the approach and align systems. Providing only a yearly retrospective on performance, means that many organizations are missing the opportunity to effectively manage and improve performance.

Measurement is Powerful

2012-05-15T20:00:06Z

Measurement is not new…it has been around since the beginning of time. The sophistication of measurement has grown and improved as time has progressed. David Landes said, “It can be persuasively argued that improvements in the measurement of time were the most important physical advances in the history of Western Civilization, without which few of the other advances would have been likely.” In fact, all scientific and industrial progress has been dependent on increasingly more refined measurement tools.

Although at times we may wish that the measurement of time weren’t so precise and always ‘in our face’, it is true that without that frame of reference, other measurements would be meaningless.

What makes measurement so powerful is its ability to instigate action--to propel people to move forward and make progress. As Louis Pasteur said, “A science is as mature as its measurement tools.” Its interesting then how much more advanced the use of measurement is in the scientific arena as compared to business. We have the technology. We understand the importance. Why aren’t we using measurement more effectively in our businesses?

Planning a Sales Call--More Than a Panic Attack in the Elevator

2012-04-30T15:51:09Z

We’ve probably all been there at one time or another even if we don’t want to admit it. We’re in the elevator on the way to a meeting with a prospect, and we’re planning for the ‘sales call’ as the floors tick by. It’s kind of crazy really when you think about how much money we invest in marketing, which is all about getting opportunities to be in front of a prospect. Yet when we finally get that audience, we’re often not adequately prepared to fully leverage that time.

The antidote to this is the concept of the checklist. If you have a background in aviation, you may be familiar with the concept of a checklist. A checklist is a type of informational aid used to reduce failure by compensating for potential limits of human memory and attention. It helps to ensure consistency and completeness in carrying out a task.

The sales application would entail creating a checklist of those elements that you’ve identified as being critical to a successful first meeting with a prospect. That checklist might include; 1) what you need to take to the meeting, 2) questions you need to ask the prospect, and 3) objectives for the meeting.

Although not every meeting with a new prospect is identical, a person will be more confident during the meeting if he goes in feeling prepared and confident. Creating a checklist with your sales team is a good way to document one important element of your ‘sales best practices’.

Making Things Simple is Hard Work

2012-04-25T21:00:33Z

It’s a paradox that communicating something in a ‘simple’ way [defined; straightforward, clear-cut, unadorned] is actually hard work. When you think about the best teachers you’ve had, one of the qualities they probably had in common was the skill to communicate the complex in a simple way.

We face a similar challenge every day when we communicate with our organization’s stakeholders. Do your employee’s understand the long-term vision you have for the business? Does your banker buy-in to your growth plans? Can your customers sense that everyone in your organization is working for them?

See if you can create a ‘simple’ one-page description of your business including an explanation of; 1) what you’re building, 2) who you help, 3) how you help them, and 4) why the business exists. Then test your ability to make the complex simple by seeing if you can share your description with someone and have them say, “I get it.” It’s not as easy as it sounds...

How Do You Measure Success?

2012-04-16T12:59:56Z

It’s kind of annoying really, but the best example of effective strategy implementation is a successful diet. And as millions of people fail every day at their diets, it’s no surprise that a similar success rate exists for organizations struggling to execute on their plans for the year.

Measuring the results that matter most is what creates success in both scenarios. Successful execution of a plan is a game of inches (and pounds) where consistent movement forward is what will produce dramatic results over the long run.

The first step is to identify those activities or measures that will be the bellwether of progress. The second and equally important step is akin to the weekly weigh-in at weight loss centers across the country. It requires the creation of a system for consistently evaluating progress relative to the measures of success. This provides the opportunity to make adjustments and allocate resources appropriately as time progresses.

So how are you doing implementing your plans this year? Bathing suit season is right around the corner…

Sales Growth Comes From Daily Discipline

2012-04-09T13:59:13Z

Most of us look at sales success as a very complex combination of skills, techniques, attitudes, and actions joined together in a secret formula. Scores of books have been written about ‘new’ selling techniques that will lead to greater sales success.

When I worked in professional sales for a Fortune 100 technology company, we received what was considered some of the best sales training in the world. We spent six months at the corporate headquarters gaining product knowledge and receiving sales training based on the latest and greatest in the industry.

What I discovered in the field, however, was that the single most important characteristic I needed to master to achieve success was fairly simple—it was discipline. It was the discipline to do the simple things, the steps that make up the sales process, and doing them consistently.

It takes discipline to plan, and it also takes discipline to implement the plan. Since most of us tend to get distracted and our discipline erodes, it’s helpful to find ways to remind yourself of your daily goals.

Discipline is not magical; it’s merely movement . . . regularly, consistently, purposefully.

Creating a Blueprint for Growth

2012-04-02T15:40:24Z

If you’ve ever watched a house being built, or had an addition put onto an existing house, you know that the standard method of communication is a blueprint. Anyone who knows how to read blueprints can clearly see a vision of the finished product. The blueprint tells a story about what is being built, and what it will look like when it’s done.

Imagine the chaos that would ensue if the team building a house didn’t have a blueprint to reference, or if the carpenter had a different version of blueprint than the bricklayer. Ridiculous right? It would never happen—no builder would ever imagine building a house without a blueprint.

Building a business is no different--everyone on the team needs to have a blueprint to reference and it needs to be the same blueprint. The same chaos and disconnect between the carpenter and the bricklayer happens every day in businesses who lack a blueprint that tells the story of what is being built.

Everyone Needs a Coach

2012-03-27T23:33:46Z

While talking with a colleague recently I was reminded of this truth, “everyone needs a coach.” Heck, even professional coaches need a coach! I was telling this person about how engaging a social media consultant/coach was positively impacting my marketing plan. Positive in the sense that I was finally executing on it!

The proverb “physician heal thyself” is true in all professions. Yet as any consultant knows, it’s harder to apply your expertise in your own business because as is the case for our clients, we get in our own way! It’s harder to get perspective on our own situation because we’re knee deep in it and we need an objective perspective to bring clarity, focus and accountability.

So if you’re struggling to execute on an important initiative in your business and you feel frustrated and stuck, you might want to consider engaging that business coach. If you bristle at the thought because you’re technically competent to do the necessary tasks on your own, then ask yourself, if it’s so easy, why isn’t it getting done?

Vision Without Systems Leads to Chaos

2012-03-19T17:56:22Z

We’ve probably all been in that situation at one time or another. We have a clear vision of where we’re headed in a particular situation whether it’s the direction we want to take our business or a vision for a new product or service. In that flash of inspiration the outcome is so clear to us that it seems impossible not to accomplish.

Fast forward 60 days and how often is it the case that the initial vision and clarity around outcomes is looking blurry and feeling chaotic? According to Peter Senge, “Vision without ‘systems thinking’ ends up painting lovely pictures of the future with no deep understanding of the forces that must be mastered to move from here to there.”

The key to fulfilling any vision is being able to distill it into an actionable and measurable plan. The challenge of course is that creating the vision is often the easy part—it’s creative, fun and intellectually stimulating. Taking the next step though is where the rubber hits the road. It’s what separates good ideas from viable and sustainable successes.

A Prospect Won't Buy Unless a Need is Met

2012-03-12T14:20:14Z

It may sound obvious, but it’s a fundamental truth in sales: a prospect won’t buy unless they have a problem the purchase solves. It’s actually a very liberating truth in sales, because it eliminates the idea that selling is about convincing someone to do something they don’t want to do, which is akin to forcing a child to take medicine-- not a pleasant experience.

There are basically three states that a potential buyer may be experiencing, and only two of them will make them receptive to your solution.

1) Pain-if a prospect is experiencing a negative situation and your solution will help them get out of pain, they will be receptive.

2) Growth-if an organization is experiencing growth or wants to grow and your solution is perceived as being able to drive that growth or manage it more effectively, they will be receptive.

3) Even-keel-if a prospect is even-keel, and they perceive no positive or negative change as a result of taking action, they will not be receptive to your solution. Complacent prospects though may cycle into a state of pain so it’s smart to maintain a relationship.

The good news is, if you’re frequently in touch with potential buyers and maintain a relationship based on trust, mutual respect and demonstrated expertise, chances are at some point that prospect will have a need and you’ll have an opportunity to present your solution.

Do you find that these three categories of buyers ring true in your business or industry?