The Sales Café

We've been following the whole Apple "Antennagate" story today, mostly for fun (since we got the new iPhone 4 the first day, thankyouverymuch) and partly because we recently wrote about Apple being a company that espouses the Outside→In™ approach in its development.

Today's press conference about the situation and Apple's response to the problems of the antenna was part of the company's strategic management of its user base. It does beg the question (for us, at least): Is Apple Outside→In™ when it comes to customer service?

[Click here for the whole press conference as it was live blogged on www.engadget.com.]

First, we believe that, like the iPad, the iPhone 4 is the result of Apple's Outside→In™ approach to development and the market. It has features that answer our needs in a smartphone and more. Is it the best smartphone? After certain specific benchmarks, that title is subjective, and, the "best in technology" title only stands until the next leading edge product comes out. It seems that antennas are part of a design flaw in smartphones in general and something that everyone is working on. "Less dropped calls" is every cell phone company's marketing line, which indicates that there are some to begin with. Anyone that says that the Blackberry has no dropped calls is lying, whether your service is AT&T, Verizon or any of the other carriers.

For some people, Jobs' response was not enough of an apology and more of a reluctant, and arrogant, admittance to the problem. Let's get some perspective on this, Apple's faulty cell phone antenna is not akin to Toyota's sticking gas pedal or BP's gushing well. Those faulty designs require continued apologies. No one is dying due to a dropped call (we hope). 

From our perspective, Jobs was the mouthpiece for a large group of engineers who seem to be dedicated to their own mission of providing a well-developed product by listening to their customers. If they didn't listen, there wouldn't have been a press conference today.

Now, how do we get that free bumper case?

Setting up a Business Architecture helps solve unwanted mysteries

How well an organization performs in and across locations or departments can be a mystery to many. Business leaders have to assume that each person is doing their job well and that local leaders will course correct when that is not the case. However, there is a nagging awareness that something important - something slithering in the dark spaces beween the departments - could raise its ugly head and cause corporate misery. Rather than hope an antidote will be available when needed, you can dig deep inside the organization before a crisis hits and take positive action to prevent these kinds of unfortunate surprises. 

Using the following checklist is the first step in creating a Business Architecture that will help identify hidden issues and immediately improve system-wide best practices. 

Do you know the answers?

1. Aim for the future:  What’s changing and how does that impact your business?
2. Identify the big changes:  What do we have to do to be successful in the future & how is that different than today?
3. Pinpoint focus:  What are the few key things we have to do to move to our future state?
4. Prioritize actions:  What are we working on today and how does that relate to what we will need to do?
5. Measure effect:  How will we know if we are making progress to our desired state? What can we measure?
6. Repeat:  Change is the only constant. Repeat the five steps to make sure you are adaptive to the inevitable changes.    
   

Once you've tackled these questions, assign a dollar value for each answer or situation. How much does your organization stand to lose or gain if the worst or best were to happen? 

Set up a structure using Business Architecture

The first way to put your arms around these issues is to map your business and create an architectural plan. Business architecture explains the structure of an organization in terms of its capabilities, governance structure, business processes, and business information. The business capability is what the organization does; the business processes are how the organization executes its capabilities. The business architecture takes into account all of an enterprise's external stakeholders (including customers, suppliers and regulators) and captures all pertinent and critical data and information.

A business architecture helps you understand the impact that change has on the business environment. Ensuring harmony between goals and objectives, programs and initiatives, and the underlying information systems and processes enables managers to adapt to dynamic - and inevitable - business change.

Example: Preventing micro-managment after a merger

Organizational leaders often micro-manage, not because of character flaws, but because they don't know what's going on. An incoherent structure, misaligned processes, and poor reporting systems try even the best managers.

In a post-merger environment, these problems are magnified. Very often, the goals for the newly combined organization are stated before the path to reaching them is built. The leaders of the acquiring company manage without knowing exactly what the workers from acquired company do. New managers don't know what the new reports are doing - and the new reports don't want to tell the new managers what they are doing! Both sides are afraid for their jobs. 

Creating a post-merger business architecture provides managers with a deep current understanding of the business - the "as-is" state, and tools to visualize and create the path towards "to-be" state: what the teams do, the processes they use, how current workflow affects other areas of the business, the results produced by the work processes, and how processes and people are managed. 

With a deeper understanding of the business and how it runs, leaders and managers can make rational decisions without having to micro-manage. 

Business mysteries are dangerous and certainly unwanted. With a business architecture in place, leaders can know what is happening throughout the business, how managers and workers are addressing challenges, and how to create successful solutions.

• Across geography and time zones
• Across business functions
• Across cultures, both societal and business
• Across hierarchies
• Across technologies

• What specific benefits does your organization expect to get from collaboration?
• Does everyone know about those expectations?
• Is there an incentive for collaboration?
• What projects, content or knowledge development do you expect people to collaborate on?
• Do your people know how to collaborate?  Do they know how to disseminate and find powerful information?
• Are your collaboration tools/technologies tuned to enable the benefits you expect?

By Elisabeth Watson

“Your hold time will be approximately 87 minutes.”

Who likes to hear that? Certainly not your customers.

We spend so much time (or we should) on training customer service people or sales reps or both. We study our potential customers’ responses to every possible method of engaging with them. We tweet, we follow, we friend, we call, we don’t call, we do whatever we think is possible to convert a prospect to a customer.

And then we put them on hold.  Or process their return in 4-6 weeks. Or refer their questions to someone who has no understanding of the product or how they use it.  After the romance of the sales cycle, that is more than a little abrupt.

We’ve done the hard part, convincing someone to buy from us, but then we often drop the ball. Revenues, especially new revenues, are the Holy Grail and it’s easy to forget that the cheapest and the easiest sales come from our existing customers.  And no matter how relevant our collateral or how effective our message, referrals are our most credible sales resource. It’s vital that we make it easy for our customers to pass along those referrals, long after they’ve signed the contract and committed to our products and services.

So how do we ensure that our customers have a great experience throughout the lifecycle?  By applying that old management adage, what gets measured gets done.  We need to evaluate each aspect of the customers’ experience from their perspective and look at how it impacts the customer experience—from that first call through every interaction.  We forget that our cost centers touch the customer, too. As Nigel Blair-Johns, Operations Manager at HP often reminds me, “Paying the bill is part of the customer experience.”  If our invoices are inaccurate or not timely, paying us can cost the customer money, not to mention frustration.

I know, I know, you can’t spend money and time on those cost centers. You need to focus on revenue. This economy is brutal.  I understand.  But.  Yes, but.  You can start with something as simple as your attitude.  Look at each of your processes from your customer’s perspective.  Just for a minute, stop channeling your accountant and consider ALL of your organization’s customer touch points.  Are any of those customer experiences less than great?  If so, that experience is hurting your customer retention, not to mention your brand.

Are you thinking that good service costs more than bad service?  Maybe, maybe not.  A customer-focused invoicing process, supported by reasonable technology, might mean fewer interactions, electronic funds transfers, and improved DSO (Days Sales Outstanding). That translates into lower costs and faster access to cash, which will enable you to return to channeling your accountant.

Reviewing, analyzing, and updating your processes, in the context of your customer experience, could not only improve your top line, but will help your bottom line as well.  What if you cut your fulfillment and invoicing costs by 20%?  What if accounts receivable process made your cash available 3 days sooner?  What if you cut an FTE from your invoice processing staff?  Or redeployed that FTE from problem resolution to reporting or fulfillment?  What if you could cut your accounting error management by 5%? That would be good news, but what’s even better?  Lots of pleasant encounters with—and, maybe even a few referrals from—those people you worked so hard to sell, your customers.

 Managing Outside-In selling means staying plugged into the real world

by Jeff Williams

In parts 1 and 2 of the blog series on Outside-In selling, we discussed the importance of putting yourself in the customer’s shoes and viewing everything your sales force does from an “outside-in” perspective. This includes the realization that the sales cycle must be aligned to the customer’s buying process, and that having a superior product does not always make you the winner. In this installment, we examine the ramifications that the Outside-In selling approach has on sales management behavior.

Although it may sound like a simple-minded cliché, in an Outside-In sales organization the customer is truly King. This can be unnerving for sales managers, who may have built their success on always having the answers to guide their sometimes fledgling sales representatives. However, in an Outside-In sales organization, everybody needs to listen to the customer. Yes, everybody . . . even the highly experienced sales managers. Since the world is ever changing, listening has emerged as one of the most significant skills that separates reasonably successful sales managers from stellar performers. 

Listening to customers directly is crucial to maintaining an understanding of what is relevant to the target customer base -- what business challenges they are wrestling with, and how your product/services portfolio can help address those needs. In addition, sustaining a close connection with customers is essential to understanding how your portfolio may need to change to continue to be relevant and competitive.  For many sales managers, face time with customers tends to diminish over time as internal administrative duties tend to consume more and more of their day, leaving less time for direct customer interaction. This raises two challenges for the sales manager. 

First, a conscious effort must be made by the sales manager to get out of the office and spend time with customers in the field. Scheduling a minimum number of sales calls per week is a good way to make sure these opportunities don’t begin to trend towards zero.

Second, and at times more difficult for the sales manager’s ego, the manager must begin to rely on what she is hearing from her sales reps as a window into what is happening in the real world. Listening to sales reps can bring much needed information “from the front lines” regarding competitive shifts and new unmet market needs. The trick is to develop a viable mechanism to encourage sales reps to share this information, without fear of reprisals.

One technique I witnessed that was very successful was the following: 

During the annual sales award dinner at a Fortune 500 company, impressive looking glass trophies were handed out to the top 50 sales reps, based upon criteria such as highest year-over-year growth, most dramatic competitive turnaround, and best team player. OK, so far, nothing out of the ordinary, every company bestows these awards to motivate its sales reps. What came next was different, however.  Following the individual recognition awards, all 320 sales managers in the region, from district managers to the region EVP were called up to the stage to receive a smaller, but nevertheless substantial looking trophy. On each trophy was a short, but revealing sentence:  “Sales Rep Opinions Valued Here.” The sales managers were instructed to go back to their offices and place the trophy in front of their telephones as a constant reminder to the importance of listening to their sales reps.  Needless to say, the distribution of the trophies brought a cheer from the entire audience of sales reps, and ushered in a new era of communication between sales managers and their representatives.

Let us know how you view the topic of sales managers staying in touch with their sales reps and customers by taking just a few minutes to answer this quick 5- questions survey.  In return, we will send you the results.   

Pleae click here to take the Outside-In Survey!

With the recession in full tilt, businesses are imploding everyday. But implosion has some positives. Dilapidated systems, out of date process, unsafe business practices get updated and values recover. Improvements come out of the dust and rubble with planning and appropriate reactions to the current state. 

Have you watched any of your customers' business implode? If you've been paying attention, you know the reasons businesses are failing.

• Specifically, what business challenge is hurting your customer?  (“The recession” is not a specific-enough answer.)
• How would you counsel the leaders in the organization to take a different path?
• What is threatening the leaders of the organization?
• How would your service help minimize or eliminate these threats?
• What are the long term benefits?
• How can your customer implement your service and realize benefits quickly? 
  

• One plant has great product.
• Another plant has great product and is always reliable.
• Plant number three has great product, is reliable, and competitively priced.
• The fourth plant has great product, is reliable, competitively priced and helps your business succeed through service that makes you more competitive.
• Our final plant option has great product, is reliable, competitively priced, helps your business succeed through service that makes you more competitive AND doing business with them is easy and fun.