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CRM A Short History

Back in the mid to late 80's, marketing concepts emerged in response to changes in the marketplace that forced many large companies...

Getting real ROI from CRM Collaboration and Technology

The field of Customer Relationship Management (CRM) is at a crossroads. The promise - while still very much alive - has in too many cases not been...

How to Align Sales Compensation with Corporate Objectives

Sales people are more likely to perform activities which support the corporate objectives when their compensation plans are in alignment

How to develop an Effective Sales Forecast

The ability to effectively forecast sales can have a significant and positive impact on sales and operations as well as the overall financial health of a corporation.

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Tuesday
16Feb2010

Under Cover Boss

Have you seen the new reality TV series on CBS called Under Cover Boss? If you are looking for ways to grow your business this certainly is a great idea especially if your business is large and spread out.

The premise is quite straight forward. A boss, typically the business owner or CEO goes out “under cover” or disguised and performs a variety of roles in his or her company that are several tiers below them. In most cases these are the front line employees, sales, manufacturing workers, or even their managers.

What happens is that the boss gets to see the inner workings and people that are doing a lot of the heavy lifting in the company and whose opinions or perspectives are rarely shared unfiltered with upper management. They get to see both the good and the bad things that go on in their company that would otherwise go unnoticed. This gives the boss an opportunity to reward for and encourage more of the good behavior and to address the shortcomings or poor behavior.

If you like this concept of getting unfiltered reality on the ground floor of your business but are not quite prepared to don a wig or fake moustache perhaps we can perform the role of under cover observer for you.

We already engage with our clients' customers to get their perspective on what it is to be one of our clients' customers. This is often an eye opening experience for most of our clients because they either have not been getting honest feedback from customers or if they were they discounted it and discarded it.

Either way if you want help getting a better handle on what is going on in your business or with your customers we can help; just give us a call.

In the mean time check out the series or catch a rerun.

 

Monday
14Dec2009

The Dear John Letter

This is required reading for those interested in turning their business around using outside assistance.

There are several ways to avoid getting this kind of letter; one way is to not start a project until you are capable of doing the hard work of changing your company. This is a difficult process and not everyone is up to the challenge despite what they might think at the outset.

Just like a fitness instructor can't exercise for you we can't improve your business without your 100% participation and buy-in to the process. Getting up at 6AM to go running or do calisthenics is seldom fun for people who are out of shape, but you are not going to make an improvement if you stick to your old routines and eating habits. Enough of the introduction here is the letter:

Dear John,

Unfortunately changing a business is not a "comfortable" process especially when it entails abandoning ways of doing things that at one time served you well. In order for this to be a successful engagement we need your buy-in and commitment to the changes we are proposing and for whatever reason that has not been there.

Our focus has been on the "results" you wanted to achieve but it appears the process and documentation are of greater importance to you. We would not be doing our job as independent consultants if we compromised our strategy in order to better connect with a client. It is our belief that you can turn this company around, but only if you follow a strategy like we have outlined and put roles in place that are accountable for results and eliminate the need for ownership to micro manage them.

Given your desire to get different results while continuing to do things that make you comfortable we don't believe that this is a project that can be successfully. We wish you well with whichever path you choose to take.

Gilmore Lewis, LLC

Monday
14Dec2009

Are You Documenting Your Demise?

All too often I come across business owners who put the proverbial cart before the horse and get more excited about documenting processes before they actually improve them. Documenting a flawed process is like paving cow paths (that zigzag all over the place) as opposed to mapping out a more efficient, and direct path and then paving it.

Some business owners get all excited about the E-Myth, and even though I believe this is a key element in building a scalable business, they tend to overlook those pesky parts about Business Development and jump right into the documenting part too soon.

I can only guess that they gravitate towards documenting things they are already doing because it is something they know they can take immediate action on. Just because someone is willing to “do what it takes” to document an existing process does not mean they are ready to make the hard decisions that are associated with implementing a new strategy.

If all you do to improve a business you know is having trouble growing is to document some processes, you might just be documenting your demise.

Thursday
15Oct2009

Top 10 Things to Consider when Designing Sales Compensation Plans

  1. 1. What behavior or results are you trying to influence? Different sales roles and different sales cycles will benefit from different influencers.
  2. 2. What metrics are the best measurements of achievement of these results or behavior you are seeking to influence?
  3. 3. How many metrics do you really need, and at what point do several become too many? There is a diminishing effect of influence when there are too many metrics or components to a compensation plan.
  4. 4. How frequently should your sales people be getting paid their bonus or commissions and are their goals monthly, quarterly and/ or annually?
  5. 5. How will you measure the results? What data do you need, when do you need it and in what format? Be sure you can get the data and in the form you need in the timeframe you need it in to pay commissions or bonuses.
  6. 6. Are your goals or quotas achievable and do your sales people realize and believe this?
  7. 7. What caveats, exclusions, or exceptions if any do you need to include in your plan so that you are not rewarding people for activities that you do not want to happen, and so people are not exploiting loop holes in the plan (they will be there in some way shape or form).
  8. 8. If an employee leaves the company on their own accord, is terminated, or transfers internally to another role what rules are in place (within the plan terms) to determine how they get paid? Look at all possible scenarios to be sure your termination clause addresses them.
  9. 9. Perform some "what if" scenarios to see what can happen in a variety of scenarios. This is often referred to as Plan Modeling and can and should be done at several stages along the way. This will allow you to not only see what people could earn at different levels of performance but also to compare different plans.
  10. 10. Put yourself in the salespersons shoes and try to see if you can find a loop hole, sweet spot, or how you would behave under this plan.
Monday
12Oct2009

It’s the Strategy Stupid!

One of the biggest mistakes business owners make in terms of developing or implementing a business strategy is that they confuse strategy with tactics.

Their changes in tactics may generate minor improvements, sometimes temporary ones, or they could just be rearranging deck chairs on the Titanic.

It seems a part of human nature to go after the low hanging fruit and to many business owners the tactics are just that, things they can reach and tweak right away.

In her book Being Strategic, Erika Andersen points out how people tend to rush in to developing and implementing tactics prior to creating the strategy. She says “Being strategic means consistently making those core directional choices that will best move you towards your hoped-for future.” Notice she says being strategic implying it is an ongoing state of mind not just a one time decision.

She also provides some common sense advice about not only articulating what your “hoped-for future” looks like, but also taking the time to assess where you are now. It’s a gap analysis that requires you look at the terrain and potential obstacles between you and your goal.

In addition to Erika’s assessment of creating a strategy I would add that the strategy is the foundation upon which everything else is built and needs to be solid so it can support the rest of the complementary roles, structures, etc.

So before you redesign your comp plans or hire that next sales person take a moment to step back and be strategic. Forget for a moment what you have in place and imagine for a moment what your goal is and what your strategy would be if you could start over fresh.