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Sales,
the Enterprise, and the Four Truths
Michael
R. Nyden, Business Essentials and Associates, LLC, August 2005
There exists, perhaps most especially in
small businesses, a tendency to “pass the buck” when business goals
aren’t achieved. Operating
groups within a company build “virtual brick walls” in an effort to insulate
themselves from company results.
“We’d have done better if IT had only
given us the tool(s) we wanted.”
“Marketing doesn’t have any idea of who
our customer is.”
“Management isn’t supportive of our
effort.”
And of course, the perennial fall-back
position, “Sales dropped the ball.”
Most organizations and departments, at one
time or another, express similar sentiments, especially during difficult times.
And at such times, it can be tough, but necessary, to take a hard look at
real inhibitors, not only to turn a trend toward meeting goals, but typically,
to raise morale as well.
Years ago, a very astute man observed that
the first requirement of any business is to sell something. Regardless of the industry, if a company’s product isn’t
sold, the doors are already beginning to close.
The reasons for inability to sell may be
manifold, and in some instances, have nothing to do with the sales effort;
 | Inability
to manufacture/produce (lack of raw materials, poor manufacturing
techniques, etc.), |
 | Inability
to meet quality standards, |
 | Inability
to meet commitments, |
 | Inability
to identify customers, |
 | Inability
to “connect” with clients. |
The list is probably long, much longer than
these few illustrations. Additionally,
salespeople may be inexperienced, poorly trained, in the “wrong” position,
or focused on the wrong activities. Many
people want to hit the home run, but we all know that most games are won with
singles and doubles.
Regardless of the reason(s) for sales’
shortcomings, the effect on the entire organization can be debilitating,
especially in these ultra-competitive times.
The outgrowth of these observations
generates a line of reasoning which suggests that, regardless of the present
state of the company or desired future state, a process must be established to
analyze success inhibitors, with the outgrowth of the process providing an
increase in sales.
The Four Truths:
 |
Sales is the lifeblood of every company. |
 |
Inhibitors to success
(especially inhibitors to sales) must be identified and
eliminated. (The enterprise must
analyze, identify, and take corrective action to deal with anything that
negatively impacts sales.) |
 |
Corporate Strategy must yield tactics. |
 |
Metrics must be established to determine that tactics are achieving the
corporate goals. |
Initiating a regular plan for executives to
review inhibitors is the first step toward future success. In many cases, resources, including budget, are redirected in
the short term, to assure that the Sales Department has all it needs to perform.
Often times, marketing needs additional resource(s) to more effectively
reach prospective customers. On
other occasions, customer service limitations impact future and/or repeat
business, or IT needs help in implementing the new technology.
Once a plan is developed specific to the
company, the prospect of achieving sales goals and corporate goals is much more
likely, especially if undertaken concurrent with a good Sales Effectiveness
Training program.
Plan development generally begins with
management undertaking a frank discussion of the present state of the company.
Appropriate questions to be asked might include;
 |
Are
Sales at acceptable levels? (measured against some benchmark) |
 |
Are
inhibitors to sales a result of the sales function, or some other function? |
 |
What
is the impact of low morale on the sales force, and the company as a whole
(Often overlooked, but inherent within Truth 2)? |
Most would characterize these questions as
obvious. Is the company reaching
sales at target/plan? If not it
should be obvious that the company must do something.
Of course, the ninety percent (90%) of companies that fail must have
taken appropriate corrective action. Or
not.
The simple fact is that most companies will
acknowledge a problem only at face value, do little to identify any underlying
causes, take inappropriate corrective action, and ultimately succeed or fail
despite, and not as a result of, their actions.
Point C (as noted), the impact of low
morale, can be especially troublesome for a company.
If the adage “nothing breeds success like success” is true, then
conversely, isn’t it true that low morale breeds even lower morale?
The impact within an organization of low morale, poor attitude, poor work
ethic, etc., is almost impossible to quantify, and yet in many organizations,
almost palpable. It is incumbent on Management to acknowledge low morale as a
problem affecting Sales (The Lifeblood of the Company), and do something about
it. This means taking a hard look a
whether management itself, through action or inaction, contributes to the morale
problem. The difference between
management and leadership may be the critical element between enabling a good
sales environment, or assuring failure, with loss of valuable sales and middle
management talent. The willingness to take the initial hard look is the most
difficult step.
While this management introspection should
typically take place behind closed doors, it is usually worthwhile to have a
genuine Human Resource expert, with appropriate bona fides, in attendance.
The outgrowth of this inspection should be
development of a plan, a call to action, including goals that are achievable
through completion of tasks that are do-able.
The plan should include accommodation for both quantitative and
subjective measurements of success, and importantly, should identify periods for
accomplishment and review/reassessment.
Together then, the understanding of the
problem, and the (several) elements of its composition, have been established,
with a plan specified to eliminate the problem.
Make no mistake, the task is demanding,
testing, challenging. It is for
this reason that consideration should be given to engaging an experienced
consultant familiar with the types of problems mentioned, and certainly, one
with a background and expertise in the breadth of issues the company is facing.
The Four Truths then, even if
unacknowledged, can be the stepping-stones for the success of the company. Conversely, especially if unacknowledged, they yield the
beginnings of the company’s epitaph. The
manner in which the Truths are approached, the perspective with which they are
acknowledged, and the decisions and plans that are the outgrowth of their
consideration, will determine which.
I encourage consideration of the Truths by
reflecting against the situation at your present company, and situations at past
employers. Discover the truth of
each situation, both positive and/or negative, where the approach (or lack of
approach) yielded results that were, without intervention, almost certain.
Your conclusions are guaranteed to be revealing.
As a wise man once said, “Something seen
can’t be unseen. Something known,
can’t be unknown.”
The choice for each of us in business, is
what to do, how to use, “What we now see” and ”What we now know.”

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