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  • Add You - The Howl - Monthly News Letter -Issue #2

    Should I Market My Business in a Trade Show or Expo?
    The first question to answer when considering participating in a trade show or expo is what do you hope to achieve? Why are you considering doing this show in the first place? Do you want to sell product? Do you want to book parties? Do you want to recruit others into your business? The answers to these questions are important as they will help you determine return on investment and risk potential.Don’t let these terms scare you. All I’m talking about is you determining whether or not this show would be a good investment for your business. Is it worth the risk? Every show I’ve ever considered costs money. It also costs time. Make sure the show potential is worth risking both these commodities.For instance, say your goal for the show is to book parties. You make approximately $200 at your average party. The expo will cost $500 for a booth. You also need to add up costs for literature (brochures, business cards, flyers), decorations, samples, give away items, and anything else you might use in your booth. Also consider other expenses like gas and child care. Say everything totals about $1,000 to do this expo. To break even, you will need to book at least five parties.How do you know if you can achieve your goals? As is the nature of direct sales in general, there is no guarantee. But you can do your research and figure out what is realistic. Look around at the shows in your area. If you are not sure where to start, try the website of the nearest convention center. Take a look at their calendar of events. You can also look at your community calendar. Depending on your product or service, you might also consider a search for local craft fairs, state fairs, or chamber of commerce events. If you have already found a show and are looking for more, you can ask the producers of the show if they do any others or could refer you to others.Once you find your show, get all the pertinent details besides just the cost to participate. If it is not already in the show literature, ask someone involved what the estimated attendance is. Knowing how many people are attending can give you an idea of whether you will be able to reach your goal during the show. Will you be able to talk to enough people to book that many parties? Can you physically sell enough products in the allotted time to break even?Breaking even is the starting point. The show should at a minimum pay for itself. The beauty of direct sales is that every contact today can also be a customer tomorrow. Going back to o
    company if appropriate.

    • Set specific goals and objectives. Write them down.

    • Maintain a positive attitude. Don’t procrastinate on anything.

    • Keep your promises. Don’t make promises you can’t keep.

    • Sell yourself first. Develop a trusted relationship, and then sell your company.

    • Study your value proposition and your company’s core competencies.

    • Think creatively. Think outside the box.

    • Listen more – speak less. Get your customer to talk about himself. If your customer spends most of the time in a sales call talking about himself, he can’t help but like you.

    Apply the 80/20 rule – listen 80% of the time.

    Client Corner------------ Between a Rock and a Hard Spot

    Rick

    I have been an employee of my company for twenty two years now. I am currently the Vice President of Sales but in reality I function as the right hand of the President. The President/Owner has unofficially given me that authority and depends on me for everything short of doing the actual financial statements. We are in the building supply business with sales over $150 million and we have 365 employees. This is a good company and I love working here. However, the owner has a son and a daughter working in the business. They don’t get along and both of them believe they should take over as President when their Dad retires. The father has confided in me that he intends to turn the business over to both his son and daughter as co-presidents. He believes that one is very strong in operations and the other is strong in sales and they compliment each other. (Funny that I run sales, his daughter works for me and she is good but not presidential quality) Neither of them has ever worked for anybody else and

    they have a silver spoon attitude often wearing their name on their sleeve as their title. Their Dad is in complete denial as to how they relate to one another and to our employees. If we were playing the game “Survivor” I believe they would be the first two voted off the island. I am not sure where that leaves me. Should I be looking to move on?

    Patrick

    Dear Patrick

    It does sound like you are between a rock and a hard spot. However, all is not lost. The worst thing you can do right now is to throw away the twenty two years with your company by leaving. Ultimately, that may be an option but there are several things you need to consider before you come to that conclusion. I am assuming you have a very good relationship with the owner since he has given you so much authority in running the business. First you must sit down with the owner and express your concerns. Don’t be afraid to discuss any issues or problems that are a result of the relationship the brother and sister have with one another or with other employees. Request that the owner bring in some outside help in the development of the succession plan for his retirement. There are numerous

    Branding Article: Pepsi's Missed Brand Opportunity
    I love Pepsi. It’s that slightly sweeter taste and the all-American logo combined with the non-conformist statement that, well, it’s not Coke.Yet Pepsi has been consistently #2, and there’s nothing wrong with being #2 if that’s your goal. But Pepsi’s goal is to be the #1 preferred brand (notice I didn’t say ‘taste’ – we all took the Pepsi taste test and they’re still #2) with members of the eponymously titled Pepsi Generation – an age group that they seemingly stretch from year to year.As of late, Pepsi has employed Pop-Culture icons to represent their brand : Britney, Big n’ Rich, AROD and Jeff Gordon to name a few. Yet none of them seem to capture Coke’s ageless, timeless wave of emotion brought on by a 6 year-old boy and Mean Joe Green. That commercial touched all of our senses; the agony of defeat, a fan’s elation with their idol, a friendship being forged between generations and a refreshing beverage that made everything ok. Coke continues to focus on the experience, while Pepsi focuses on taste.Which is why I cringe every time I go to a restaurant that only carries Pepsi products; Sure, I’m happy, but what of those who prefer Coke? The waiter/waitress always asks if you would like a beverage before ordering, and an overwhelming majority of people reply, “I’ll have a Coke.” The wait staff them replies with the brand kiss of death:“Is Pepsi ok?”Is it ok? It’s like saying ‘no we don’t have Coke, but will you settle for this sub-par beverage?” And because they ask this way, the customer always reluctantly answers ‘yeah, I guess.’For every restaurant, there should be an in-house Pepsi Brand Champion - someone who will train all restaurant employees on Pepsi’s passion, core values, culture and more importantly, how to make it preferred! Instead of making it the red-headed step child on the menu, they should wear buttons that read, ‘We Proudly Serve Pepsi Products’. There should be a branded way to respond to the unavoidable Coke question. There should be Pepsi soda glasses and other branded materials so that it’s no surprise to the customers. People do not choose restaurants because of the soda they carry, so Pepsi needs to step up and educate it’s captured audience on why they should be the choice of every generation.
    The Code of Conduct ---- It seems almost ludicrous that this is a topic that many of us should consider in privately held distributorships.

    When I suggest there may be a need for a “Code of Conduct” I am not talking about a need based on employee behavior, I am talking about the need based on family behavior. The family business is a cornerstone of the US economy. It’s the American way, free enterprise and all that gooey stuff we read about. And, it’s true.

    Family owned/privately held organizations in wholesale distribution, both small and large, with succession issues, family preparation and second and third generation leadership issues often have several family members that hold management positions within the company. Often time’s interaction between family members can create problems for the business. In some extreme cases employees may actually begin to takes sides on a variety of issues based on the particular family member they have elected to support. Sometimes, family issues may exist within the minds of the employees and the actual family members have no idea how their interaction has created the problems.

    I have seen brothers be vengeful against brothers in the family business to the point that the business suffers and may risk failure. I have seen family relationships destroyed over business issues, jealousy and even greed. I have listened to distraught fathers try to determine succession within the business when two sons believe they are air apparent to the kingdom and Dad just can’t pick one over the other. I have seen family businesses run by second and third generation family members that demonstrated exceptional competency, vision and skills to continue to grow their business. Then again, I have seen a few empty suits and empty dresses when it comes to running the business as well. I have seen sons that couldn’t wait to get their hands on the business just so they could sell it and escape with a fortune.

    Then again, I have seen fathers that have elected to sell simply to avoid the family conflict involved in passing the leadership reins down to another family member.

    We all have different strengths, different methodologies and different experience in the world of wholesale distribution. These differences will impact our individual approach to any task or project. This can become an area of risk for some of us. We must be conscious of our own unique style. This is especially true when it comes to a family run business. To use a phrase from General Russell Honore when he took over during the Katrina Hurricane crisis, “We can’t afford to get “Stuck on Stupid!” He made that comment to the media when they tried to interrogate him about all the mistakes made during the aftermath of Katrina. As Owners, CEO’s, Presidents or just family share holders, we can not afford to get “Stuck on Stupid” when it comes to running the business. We must put the business needs ahead of our personal needs.

    It is absolutely essential that you look forward and not back if you are going to continue to grow the business.

    I am not suggesting that a “Code of Conduct” will resolve succession issues. That in itself is an entirely new discussion. However, I am saying that a “Code of Conduct” will not only make the succession transition smoother, it can also circumvent any potential problems related to internal family interaction. Additionally, you might want to consider creating a family business doctrine that outlines the values and principles that you want to maintain in the business. The family business is what built this country. There’s no question about that. But, it is not without its problems. If you are the president of a privately held company and you have absolutely no family issues in running the business, you are in the minority. Consider yourself very lucky and commend yourself on how you have been able to run your business and avoid family challenges.

    If you are one of the majorities of privately held businesses that has experienced family issues you might consider a “Family Code of Conduct”.

    Family issues and challenges that become easier to manage with a “Code of Conduct” are a great segway into the next topic I’d like to discuss in this issue of The Howl.

    Do You Need a Board of Directors? ------ The question should not be “Why do I need a Board of Directors?

    The question should be “Why don’t I have a Board of Directors? Is it because you think you are too small, you see no value in having experienced business people that provide input and advice. Do you think you are the only one that understands your business? Are you so self admired that no one could possibly help you? Do you have ALL the answers? IF you answered yes to any of these

    questions with the exception of the first one, (you think you are too small), then you need more than just a Board of Directors. You need some personal coaching and counseling.

    First, any business, no matter how small, can benefit from some form of an advisory group. If your business only employs a few people and your sales are less than $1 million dollars you should still have some format to discuss issues outside the day to day realm of normal business. The bigger you become and the more people you employ, the more reason to utilize a Board of Directors for guidance and support.

    A Board of Directors, elected by ownership, can provide the kind of support necessary to take the company to the next level. No man is an island and it can become very lonely at the top. Growing an organization is hard work. The president of the corporation not only has to surround himself with an excellent team but he must be able to rely on another power to challenge him and his team.

    The Board of

    Directors, in exercising its business judgment, acts as an advisor and counselor to the President and his executive team. The Board can help define and enforce standards of accountability, accountability that is often found lacking in a privately held family run organization. A Board can challenge and help the management team execute their responsibilities to the fullest extent in the best interest of the shareholders.

    How Do You Release Discretionary Energy in Your Employees? ------ What is discretionary energy? Discretionary energy is the energy an employee uses when going above and beyond the call of duty to complete a task or get the job done. Every employee has discretionary energy. The amount of energy released and employed at work depends on their attitude, how well they enjoy being at work, how they are treated and how they feel about the company.

    Discretionary energy can be the difference between doing what is expected and performing in an outstanding manner. Consequently, our people skills and leadership skills play a paramount role in determining whether employees give freely of their discretionary energy. Does that mean that we must let the inmates run the asylum

    and do whatever they want to make them happy? Of course not. But, it does mean that we must utilize effective leadership skills in dealing with issues, problems and

    just day to day training, coaching and mentoring.

    Here’s an example;

    Telling a person what he is doing wrong is not specific enough.

    Eliminating undesirable behavior without providing a new substitute pattern leaves the worker open to learn another undesirable set of responses and will encourage

    him to withhold his discretionary energy. He may even become demotivated or resentful

    It is better to comment on improvement in performance than to comment on the employee’s failure to meet goals.

    This can be accomplished by:

    • Frequent feedback

    • Reinforcing small approximations to the desired goal, gradually increasing the number of steps necessary to obtain the positive reinforcement

    • Evaluations should be given for good performance and without too much time delay

    • Employees deserve to know how they are doing no less than on a monthly basis

    To see how this principle is applied to coaching, assume you were on a ride-a-long with a salesman and you just concluded a sales call. You observed the salesman neglected to ask for the order when making a closing statement. If in this critique you mention to the salesman that he did not use the skill correctly you would, in fact, be punishing the salesman.

    A much better approach would be to use the concept of self-feedback. In other words, allow the salesman to self-critique the use of his skills. In the above example, assume the salesman used the supporting skill correctly. You would apply a positive reinforcement technique. Next, ask the salesman to repeat his closing statement as best he can recall.

    You might say, “Can you remember the closing statement you made? I wonder if you could repeat it.”

    Several things may happen here. First, the salesman may repeat the statement and realize on his own he neglected to ask for the order – a self-realization. At this point ask him to ask for the order and positively reinforce his response. On the other hand, the salesman may not realize he used the skill incorrectly, even after repeating it.In this case ask the salesman what he thinks he could do to improve on the closing.

    Confirm understanding and ask the salesperson to make another closing statement. Once again positively reinforce after correct skill usage. By utilizing this method you avoid falling into the trap of the “Psychological Sandwich.” That is, after the salesman received praise he is now waiting for the axe to fall, the praise becoming the antecedent to negative consequence.

    Being a mentor or just using effective coaching techniques is key to getting employees to release their discretionary energy. Of course, it all starts with Respect & Trust.

    Make no mistake ----- Employees will not start trusting you until you start trusting the employee.

    Employees will not start respecting you until you start respecting the employee.

    New Territory Sales Tips

    These are a few sales tips you should follow for a New Territory.

    • Meet and qualify all the accounts in your territory before you begin to focus on a few.

    • Do your homework. Know your company first; the strong points, the weak points. Know who and what your internal resources are. What is your company’s sweet spot? What is your competitive advantage?

    • Do your homework. Know your customers. What do they buy? How do they buy? Who are their five largest customers? Research your customer and their industry on the web. Become an industry expert for your customer. Meet people and cultivate relationships beyond your customers purchasing department.

    • Create a call plan prior to every call. The objective can be as simple as getting an appointment with someone higher up in management to meet with your management.

    • Keep a data record on every buyer at your major accounts. Get to know them as well as their family knows them.

    • Create an itinerary for each week. Know what you are going to do. Set at least two base appointments in the morning and afternoon with major accounts.

    Fill in around these appointments as appropriate. Know your customers’ personality. People buy from people so develop a relationship with each of your customers.

    • Create a territory plan. Establish goals, identify milestones, create a time line and engage all your resources including upper management.

    • Create an action plan for every major account. Know your customers’ "Rules of Engagement." What keeps them up at night? Create a strategy that involves

    your entire team including the President of your company if appropriate.

    • Set specific goals and objectives. Write them down.

    • Maintain a positive attitude. Don’t procrastinate on anything.

    • Keep your promises. Don’t make promises you can’t keep.

    • Sell yourself first. Develop a trusted relationship, and then sell your company.

    • Study your value proposition and your company’s core competencies.

    • Think creatively. Think outside the box.

    • Listen more – speak less. Get your customer to talk about himself. If your customer spends most of the time in a sales call talking about himself, he can’t help but like you.

    Apply the 80/20 rule – listen 80% of the time.

    Client Corner------------ Between a Rock and a Hard Spot

    Rick

    I have been an employee of my company for twenty two years now. I am currently the Vice President of Sales but in reality I function as the right hand of the President. The President/Owner has unofficially given me that authority and depends on me for everything short of doing the actual financial statements. We are in the building supply business with sales over $150 million and we have 365 employees. This is a good company and I love working here. However, the owner has a son and a daughter working in the business. They don’t get along and both of them believe they should take over as President when their Dad retires. The father has confided in me that he intends to turn the business over to both his son and daughter as co-presidents. He believes that one is very strong in operations and the other is strong in sales and they compliment each other. (Funny that I run sales, his daughter works for me and she is good but not presidential quality) Neither of them has ever worked for anybody else and

    they have a silver spoon attitude often wearing their name on their sleeve as their title. Their Dad is in complete denial as to how they relate to one another and to our employees. If we were playing the game “Survivor” I believe they would be the first two voted off the island. I am not sure where that leaves me. Should I be looking to move on?

    Patrick

    Dear Patrick

    It does sound like you are between a rock and a hard spot. However, all is not lost. The worst thing you can do right now is to throw away the twenty two years with your company by leaving. Ultimately, that may be an option but there are several things you need to consider before you come to that conclusion. I am assuming you have a very good relationship with the owner since he has given you so much authority in running the business. First you must sit down with the owner and express your concerns. Don’t be afraid to discuss any issues or problems that are a result of the relationship the brother and sister have with one another or with other employees. Request that the owner bring in some outside help in the development of the succession plan for his retirement. There are numerous f

    Cost Of Poor Quality And Six Sigma
    If the cost of quality is high, looking through the Six Sigma glass the cost of poor quality is still higher. Companies bear a huge cost of about 9-16 percent of their revenues on problem solving. This is the cost of poor quality, or COPQ, as it is known. Motorola discovered this in the late 1970s at a huge price. General Electric has put the cost difference between 3 or 4 Sigma and Six Sigma at an astonishing $8-12 billion a year.Anatomy Of COPQCOPQ comprises costs which have generated as byproducts of defective and inconsistent manufacturing process. Six Sigma directly assigns a dollar value to cost of poor quality, meaning that the COPQ is measurable. The cost of poor quality originates at all places where the product or a part thereof is being made.1. COPQ originating from suppliers 2. COPQ at the production points 3. COPQ at warehouse 4. COPQ at transportation and distributionThe cost effect due to poor quality from suppliers is defined at two levels. One is straight from the defective production of materials and the other is due to handling and delivery. The second and the third points are very much under the control of the manufacturer.The following are the generally applicable consistent costs of poor quality:1 Wastage Or Under-Utilization: This is also referred to as spoilage in Six Sigma, arising out of raw material wasted due to inconsistent and inefficient processes.2 Cost Of Reworking: This cost includes the cost of repairing and replacing some parts. In addition, this also includes the cost labor to repair.3 Cost Of Additional Utilities: The overall cost of setting up the extra infrastructure and utilities consumed to run the recycling operation needs to be considered while calculating the COPQ.4 Lost Opportunities: The dissatisfaction triggered business loss can not be just the loss of margin. You have to include the capital to be invested to regaining the lost revenue and offset the cumulative revenue loss.5 Lost Revenue Due To Poor Quality: This cost refers to the potential loss of new business due to defective quality.6 Poor Customer Satisfaction: This is the mother of all costs of poor quality. This cost is compounded by the loss the customer suffers due to the defective product first and servicing second.While Six Sigma provides for all labor, disposition and reworking costs, it does not permit inclusion of costs like that of inspection and prevention. But it is obvious that these efforts are only aimed at r
    our personal needs.

    It is absolutely essential that you look forward and not back if you are going to continue to grow the business.

    I am not suggesting that a “Code of Conduct” will resolve succession issues. That in itself is an entirely new discussion. However, I am saying that a “Code of Conduct” will not only make the succession transition smoother, it can also circumvent any potential problems related to internal family interaction. Additionally, you might want to consider creating a family business doctrine that outlines the values and principles that you want to maintain in the business. The family business is what built this country. There’s no question about that. But, it is not without its problems. If you are the president of a privately held company and you have absolutely no family issues in running the business, you are in the minority. Consider yourself very lucky and commend yourself on how you have been able to run your business and avoid family challenges.

    If you are one of the majorities of privately held businesses that has experienced family issues you might consider a “Family Code of Conduct”.

    Family issues and challenges that become easier to manage with a “Code of Conduct” are a great segway into the next topic I’d like to discuss in this issue of The Howl.

    Do You Need a Board of Directors? ------ The question should not be “Why do I need a Board of Directors?

    The question should be “Why don’t I have a Board of Directors? Is it because you think you are too small, you see no value in having experienced business people that provide input and advice. Do you think you are the only one that understands your business? Are you so self admired that no one could possibly help you? Do you have ALL the answers? IF you answered yes to any of these

    questions with the exception of the first one, (you think you are too small), then you need more than just a Board of Directors. You need some personal coaching and counseling.

    First, any business, no matter how small, can benefit from some form of an advisory group. If your business only employs a few people and your sales are less than $1 million dollars you should still have some format to discuss issues outside the day to day realm of normal business. The bigger you become and the more people you employ, the more reason to utilize a Board of Directors for guidance and support.

    A Board of Directors, elected by ownership, can provide the kind of support necessary to take the company to the next level. No man is an island and it can become very lonely at the top. Growing an organization is hard work. The president of the corporation not only has to surround himself with an excellent team but he must be able to rely on another power to challenge him and his team.

    The Board of

    Directors, in exercising its business judgment, acts as an advisor and counselor to the President and his executive team. The Board can help define and enforce standards of accountability, accountability that is often found lacking in a privately held family run organization. A Board can challenge and help the management team execute their responsibilities to the fullest extent in the best interest of the shareholders.

    How Do You Release Discretionary Energy in Your Employees? ------ What is discretionary energy? Discretionary energy is the energy an employee uses when going above and beyond the call of duty to complete a task or get the job done. Every employee has discretionary energy. The amount of energy released and employed at work depends on their attitude, how well they enjoy being at work, how they are treated and how they feel about the company.

    Discretionary energy can be the difference between doing what is expected and performing in an outstanding manner. Consequently, our people skills and leadership skills play a paramount role in determining whether employees give freely of their discretionary energy. Does that mean that we must let the inmates run the asylum

    and do whatever they want to make them happy? Of course not. But, it does mean that we must utilize effective leadership skills in dealing with issues, problems and

    just day to day training, coaching and mentoring.

    Here’s an example;

    Telling a person what he is doing wrong is not specific enough.

    Eliminating undesirable behavior without providing a new substitute pattern leaves the worker open to learn another undesirable set of responses and will encourage

    him to withhold his discretionary energy. He may even become demotivated or resentful

    It is better to comment on improvement in performance than to comment on the employee’s failure to meet goals.

    This can be accomplished by:

    • Frequent feedback

    • Reinforcing small approximations to the desired goal, gradually increasing the number of steps necessary to obtain the positive reinforcement

    • Evaluations should be given for good performance and without too much time delay

    • Employees deserve to know how they are doing no less than on a monthly basis

    To see how this principle is applied to coaching, assume you were on a ride-a-long with a salesman and you just concluded a sales call. You observed the salesman neglected to ask for the order when making a closing statement. If in this critique you mention to the salesman that he did not use the skill correctly you would, in fact, be punishing the salesman.

    A much better approach would be to use the concept of self-feedback. In other words, allow the salesman to self-critique the use of his skills. In the above example, assume the salesman used the supporting skill correctly. You would apply a positive reinforcement technique. Next, ask the salesman to repeat his closing statement as best he can recall.

    You might say, “Can you remember the closing statement you made? I wonder if you could repeat it.”

    Several things may happen here. First, the salesman may repeat the statement and realize on his own he neglected to ask for the order – a self-realization. At this point ask him to ask for the order and positively reinforce his response. On the other hand, the salesman may not realize he used the skill incorrectly, even after repeating it.In this case ask the salesman what he thinks he could do to improve on the closing.

    Confirm understanding and ask the salesperson to make another closing statement. Once again positively reinforce after correct skill usage. By utilizing this method you avoid falling into the trap of the “Psychological Sandwich.” That is, after the salesman received praise he is now waiting for the axe to fall, the praise becoming the antecedent to negative consequence.

    Being a mentor or just using effective coaching techniques is key to getting employees to release their discretionary energy. Of course, it all starts with Respect & Trust.

    Make no mistake ----- Employees will not start trusting you until you start trusting the employee.

    Employees will not start respecting you until you start respecting the employee.

    New Territory Sales Tips

    These are a few sales tips you should follow for a New Territory.

    • Meet and qualify all the accounts in your territory before you begin to focus on a few.

    • Do your homework. Know your company first; the strong points, the weak points. Know who and what your internal resources are. What is your company’s sweet spot? What is your competitive advantage?

    • Do your homework. Know your customers. What do they buy? How do they buy? Who are their five largest customers? Research your customer and their industry on the web. Become an industry expert for your customer. Meet people and cultivate relationships beyond your customers purchasing department.

    • Create a call plan prior to every call. The objective can be as simple as getting an appointment with someone higher up in management to meet with your management.

    • Keep a data record on every buyer at your major accounts. Get to know them as well as their family knows them.

    • Create an itinerary for each week. Know what you are going to do. Set at least two base appointments in the morning and afternoon with major accounts.

    Fill in around these appointments as appropriate. Know your customers’ personality. People buy from people so develop a relationship with each of your customers.

    • Create a territory plan. Establish goals, identify milestones, create a time line and engage all your resources including upper management.

    • Create an action plan for every major account. Know your customers’ "Rules of Engagement." What keeps them up at night? Create a strategy that involves

    your entire team including the President of your company if appropriate.

    • Set specific goals and objectives. Write them down.

    • Maintain a positive attitude. Don’t procrastinate on anything.

    • Keep your promises. Don’t make promises you can’t keep.

    • Sell yourself first. Develop a trusted relationship, and then sell your company.

    • Study your value proposition and your company’s core competencies.

    • Think creatively. Think outside the box.

    • Listen more – speak less. Get your customer to talk about himself. If your customer spends most of the time in a sales call talking about himself, he can’t help but like you.

    Apply the 80/20 rule – listen 80% of the time.

    Client Corner------------ Between a Rock and a Hard Spot

    Rick

    I have been an employee of my company for twenty two years now. I am currently the Vice President of Sales but in reality I function as the right hand of the President. The President/Owner has unofficially given me that authority and depends on me for everything short of doing the actual financial statements. We are in the building supply business with sales over $150 million and we have 365 employees. This is a good company and I love working here. However, the owner has a son and a daughter working in the business. They don’t get along and both of them believe they should take over as President when their Dad retires. The father has confided in me that he intends to turn the business over to both his son and daughter as co-presidents. He believes that one is very strong in operations and the other is strong in sales and they compliment each other. (Funny that I run sales, his daughter works for me and she is good but not presidential quality) Neither of them has ever worked for anybody else and

    they have a silver spoon attitude often wearing their name on their sleeve as their title. Their Dad is in complete denial as to how they relate to one another and to our employees. If we were playing the game “Survivor” I believe they would be the first two voted off the island. I am not sure where that leaves me. Should I be looking to move on?

    Patrick

    Dear Patrick

    It does sound like you are between a rock and a hard spot. However, all is not lost. The worst thing you can do right now is to throw away the twenty two years with your company by leaving. Ultimately, that may be an option but there are several things you need to consider before you come to that conclusion. I am assuming you have a very good relationship with the owner since he has given you so much authority in running the business. First you must sit down with the owner and express your concerns. Don’t be afraid to discuss any issues or problems that are a result of the relationship the brother and sister have with one another or with other employees. Request that the owner bring in some outside help in the development of the succession plan for his retirement. There are numerous

    Create Your Own Business Cards, Part 1
    In this lesson, we will create a business card, using Microsoft Word. I created a new template for my business card. It can be viewed at: http://janes-place.com/bus_card.htmChoose the information you want to place on your card before beginning.Here's how I did it:Go to 'start' --'Microsoft Word' -- 'file menu' -- 'page setup'. Choose the 'Margins Tab'. Type in 1.25 for the Left and Right margins. That way, two cards will fit on a 8 1/2 x 11in. sheet, side by side. Click 'ok'.In the 'Format Menu' choose 'Columns'. Where it asks for the number of columns, use the arrows to go down until the number 'two' is in the box. Go down to 'Width' and type in 2.75in. The 'Spacing' will adjust automatically. Be sure the 'Equal Column Width' and the 'Line Between' boxes are checked. Click 'ok'.Let's save it, at this point. Go to the 'File Menu' and choose 'Save As'. You can save it in the same folder we saved the Letterhead, if you choose. I saved mine with my letterhead in 'Business Stationery'. Give the file a name. I named mine -- 'My Business Card'. Click 'Save'.Go to the 'Table Menu' and choose 'Insert Table'. Set the number of 'Columns' and 'Rows' to 'one'. Click 'ok'.A long, thin box will appear. Move your mouse cursor to the bottom line, until it turns into a double-headed arrow. Click on the double-headed arrow and drag it down to the 2in. mark on the left hand side ruler. If the ruler isn't visible in your document, go to the 'View Menu' and click on 'ruler'.Click inside the box and add your picture. You have two options here:1) You can use 'ClipArt', by going to the 'Insert menu' -- 'Picture' -- 'ClipArt. Choose your category and find the graphic suitable for your business, click 'ok'. The image will appear in your document.2) You can use your company logo, if you have one, or another picture on your hard drive, by going to the 'Insert Menu' -- 'Picture' -- 'From File'. The pictures on your hard drive (saved in 'My Documents' -- 'My Pictures' will appear). Scroll down the list until you find the one you want to insert. Click on the picture you have chosen, to highlight it. Then click on the 'Insert' button. The picture will appear in your document.To move the picture around inside your table, click on the picture. You will see a four arrow symbol. This allows you to move the picture up, down, right or left, by dragging it to the position you want. I wanted my picture to appear in the l
    d his executive team. The Board can help define and enforce standards of accountability, accountability that is often found lacking in a privately held family run organization. A Board can challenge and help the management team execute their responsibilities to the fullest extent in the best interest of the shareholders.

    How Do You Release Discretionary Energy in Your Employees? ------ What is discretionary energy? Discretionary energy is the energy an employee uses when going above and beyond the call of duty to complete a task or get the job done. Every employee has discretionary energy. The amount of energy released and employed at work depends on their attitude, how well they enjoy being at work, how they are treated and how they feel about the company.

    Discretionary energy can be the difference between doing what is expected and performing in an outstanding manner. Consequently, our people skills and leadership skills play a paramount role in determining whether employees give freely of their discretionary energy. Does that mean that we must let the inmates run the asylum

    and do whatever they want to make them happy? Of course not. But, it does mean that we must utilize effective leadership skills in dealing with issues, problems and

    just day to day training, coaching and mentoring.

    Here’s an example;

    Telling a person what he is doing wrong is not specific enough.

    Eliminating undesirable behavior without providing a new substitute pattern leaves the worker open to learn another undesirable set of responses and will encourage

    him to withhold his discretionary energy. He may even become demotivated or resentful

    It is better to comment on improvement in performance than to comment on the employee’s failure to meet goals.

    This can be accomplished by:

    • Frequent feedback

    • Reinforcing small approximations to the desired goal, gradually increasing the number of steps necessary to obtain the positive reinforcement

    • Evaluations should be given for good performance and without too much time delay

    • Employees deserve to know how they are doing no less than on a monthly basis

    To see how this principle is applied to coaching, assume you were on a ride-a-long with a salesman and you just concluded a sales call. You observed the salesman neglected to ask for the order when making a closing statement. If in this critique you mention to the salesman that he did not use the skill correctly you would, in fact, be punishing the salesman.

    A much better approach would be to use the concept of self-feedback. In other words, allow the salesman to self-critique the use of his skills. In the above example, assume the salesman used the supporting skill correctly. You would apply a positive reinforcement technique. Next, ask the salesman to repeat his closing statement as best he can recall.

    You might say, “Can you remember the closing statement you made? I wonder if you could repeat it.”

    Several things may happen here. First, the salesman may repeat the statement and realize on his own he neglected to ask for the order – a self-realization. At this point ask him to ask for the order and positively reinforce his response. On the other hand, the salesman may not realize he used the skill incorrectly, even after repeating it.In this case ask the salesman what he thinks he could do to improve on the closing.

    Confirm understanding and ask the salesperson to make another closing statement. Once again positively reinforce after correct skill usage. By utilizing this method you avoid falling into the trap of the “Psychological Sandwich.” That is, after the salesman received praise he is now waiting for the axe to fall, the praise becoming the antecedent to negative consequence.

    Being a mentor or just using effective coaching techniques is key to getting employees to release their discretionary energy. Of course, it all starts with Respect & Trust.

    Make no mistake ----- Employees will not start trusting you until you start trusting the employee.

    Employees will not start respecting you until you start respecting the employee.

    New Territory Sales Tips

    These are a few sales tips you should follow for a New Territory.

    • Meet and qualify all the accounts in your territory before you begin to focus on a few.

    • Do your homework. Know your company first; the strong points, the weak points. Know who and what your internal resources are. What is your company’s sweet spot? What is your competitive advantage?

    • Do your homework. Know your customers. What do they buy? How do they buy? Who are their five largest customers? Research your customer and their industry on the web. Become an industry expert for your customer. Meet people and cultivate relationships beyond your customers purchasing department.

    • Create a call plan prior to every call. The objective can be as simple as getting an appointment with someone higher up in management to meet with your management.

    • Keep a data record on every buyer at your major accounts. Get to know them as well as their family knows them.

    • Create an itinerary for each week. Know what you are going to do. Set at least two base appointments in the morning and afternoon with major accounts.

    Fill in around these appointments as appropriate. Know your customers’ personality. People buy from people so develop a relationship with each of your customers.

    • Create a territory plan. Establish goals, identify milestones, create a time line and engage all your resources including upper management.

    • Create an action plan for every major account. Know your customers’ "Rules of Engagement." What keeps them up at night? Create a strategy that involves

    your entire team including the President of your company if appropriate.

    • Set specific goals and objectives. Write them down.

    • Maintain a positive attitude. Don’t procrastinate on anything.

    • Keep your promises. Don’t make promises you can’t keep.

    • Sell yourself first. Develop a trusted relationship, and then sell your company.

    • Study your value proposition and your company’s core competencies.

    • Think creatively. Think outside the box.

    • Listen more – speak less. Get your customer to talk about himself. If your customer spends most of the time in a sales call talking about himself, he can’t help but like you.

    Apply the 80/20 rule – listen 80% of the time.

    Client Corner------------ Between a Rock and a Hard Spot

    Rick

    I have been an employee of my company for twenty two years now. I am currently the Vice President of Sales but in reality I function as the right hand of the President. The President/Owner has unofficially given me that authority and depends on me for everything short of doing the actual financial statements. We are in the building supply business with sales over $150 million and we have 365 employees. This is a good company and I love working here. However, the owner has a son and a daughter working in the business. They don’t get along and both of them believe they should take over as President when their Dad retires. The father has confided in me that he intends to turn the business over to both his son and daughter as co-presidents. He believes that one is very strong in operations and the other is strong in sales and they compliment each other. (Funny that I run sales, his daughter works for me and she is good but not presidential quality) Neither of them has ever worked for anybody else and

    they have a silver spoon attitude often wearing their name on their sleeve as their title. Their Dad is in complete denial as to how they relate to one another and to our employees. If we were playing the game “Survivor” I believe they would be the first two voted off the island. I am not sure where that leaves me. Should I be looking to move on?

    Patrick

    Dear Patrick

    It does sound like you are between a rock and a hard spot. However, all is not lost. The worst thing you can do right now is to throw away the twenty two years with your company by leaving. Ultimately, that may be an option but there are several things you need to consider before you come to that conclusion. I am assuming you have a very good relationship with the owner since he has given you so much authority in running the business. First you must sit down with the owner and express your concerns. Don’t be afraid to discuss any issues or problems that are a result of the relationship the brother and sister have with one another or with other employees. Request that the owner bring in some outside help in the development of the succession plan for his retirement. There are numerous

    Formal Report
    A formal report collects and interprets data and reports information. It may, in the course of doing these tasks, include an analysis and make recommendations for a course of action.Reports are used to inform, analyze, and recommend. They are usually written in indirect order.These reports are often very complex and may even be produced in book volume. In the business setting, an informal report is used for internal distribution, while the formal report is used for external distribution to customers, stockholders, and the general public.The formal report is often a written account of a major project. Examples of subject matter include results of a study or experiment, new technologies, analysis of locations for business relocation, the advisability of launching a new product line, and an annual report.Careful planning is necessary to guide readers through the report. There are three (3) main sections to a formal report:1. Front material 2. Body 3. Back materialThese sections may contain the following:Front Material• Title Page • Letter of Authorization • Letter of Transmittal • Table of Contents • List of Figures • List of Symbols or Abbreviations • Foreword • PrefaceBody• Introduction • Text • Conclusions • RecommendationsBack Material• References • Bibliography • Appendices • Glossary • IndexThink about content, formal reports use indirect approach. This approach introduces the problem, then gives the facts, with analyses, and summarizes the information given.If your goal is to make a conclusion, you do that next. If your goal is to recommend action, you offer the analyses, draw conclusion, and then, based on this, make your recommendations.To Eliminate Wrong Messages• Do not embellish facts • Do not make faulty conclusions • Do not compare oranges to apples. Data must be similar in nature for comparisons to be authentic. • Eliminate digressions or unfocused material. These can easily derail the report.After the formal report is completed, double check the following:• Do heading and subheadings properly reflect content? • Is information complete for reader understanding? • Does the report flow logically? • Is there a clear relationship between ideas and fact? • Are all grammar and spelling errors eliminated?By following these guidelines for a formal report, you will be able to pr
    he closing statement you made? I wonder if you could repeat it.”

    Several things may happen here. First, the salesman may repeat the statement and realize on his own he neglected to ask for the order – a self-realization. At this point ask him to ask for the order and positively reinforce his response. On the other hand, the salesman may not realize he used the skill incorrectly, even after repeating it.In this case ask the salesman what he thinks he could do to improve on the closing.

    Confirm understanding and ask the salesperson to make another closing statement. Once again positively reinforce after correct skill usage. By utilizing this method you avoid falling into the trap of the “Psychological Sandwich.” That is, after the salesman received praise he is now waiting for the axe to fall, the praise becoming the antecedent to negative consequence.

    Being a mentor or just using effective coaching techniques is key to getting employees to release their discretionary energy. Of course, it all starts with Respect & Trust.

    Make no mistake ----- Employees will not start trusting you until you start trusting the employee.

    Employees will not start respecting you until you start respecting the employee.

    New Territory Sales Tips

    These are a few sales tips you should follow for a New Territory.

    • Meet and qualify all the accounts in your territory before you begin to focus on a few.

    • Do your homework. Know your company first; the strong points, the weak points. Know who and what your internal resources are. What is your company’s sweet spot? What is your competitive advantage?

    • Do your homework. Know your customers. What do they buy? How do they buy? Who are their five largest customers? Research your customer and their industry on the web. Become an industry expert for your customer. Meet people and cultivate relationships beyond your customers purchasing department.

    • Create a call plan prior to every call. The objective can be as simple as getting an appointment with someone higher up in management to meet with your management.

    • Keep a data record on every buyer at your major accounts. Get to know them as well as their family knows them.

    • Create an itinerary for each week. Know what you are going to do. Set at least two base appointments in the morning and afternoon with major accounts.

    Fill in around these appointments as appropriate. Know your customers’ personality. People buy from people so develop a relationship with each of your customers.

    • Create a territory plan. Establish goals, identify milestones, create a time line and engage all your resources including upper management.

    • Create an action plan for every major account. Know your customers’ "Rules of Engagement." What keeps them up at night? Create a strategy that involves

    your entire team including the President of your company if appropriate.

    • Set specific goals and objectives. Write them down.

    • Maintain a positive attitude. Don’t procrastinate on anything.

    • Keep your promises. Don’t make promises you can’t keep.

    • Sell yourself first. Develop a trusted relationship, and then sell your company.

    • Study your value proposition and your company’s core competencies.

    • Think creatively. Think outside the box.

    • Listen more – speak less. Get your customer to talk about himself. If your customer spends most of the time in a sales call talking about himself, he can’t help but like you.

    Apply the 80/20 rule – listen 80% of the time.

    Client Corner------------ Between a Rock and a Hard Spot

    Rick

    I have been an employee of my company for twenty two years now. I am currently the Vice President of Sales but in reality I function as the right hand of the President. The President/Owner has unofficially given me that authority and depends on me for everything short of doing the actual financial statements. We are in the building supply business with sales over $150 million and we have 365 employees. This is a good company and I love working here. However, the owner has a son and a daughter working in the business. They don’t get along and both of them believe they should take over as President when their Dad retires. The father has confided in me that he intends to turn the business over to both his son and daughter as co-presidents. He believes that one is very strong in operations and the other is strong in sales and they compliment each other. (Funny that I run sales, his daughter works for me and she is good but not presidential quality) Neither of them has ever worked for anybody else and

    they have a silver spoon attitude often wearing their name on their sleeve as their title. Their Dad is in complete denial as to how they relate to one another and to our employees. If we were playing the game “Survivor” I believe they would be the first two voted off the island. I am not sure where that leaves me. Should I be looking to move on?

    Patrick

    Dear Patrick

    It does sound like you are between a rock and a hard spot. However, all is not lost. The worst thing you can do right now is to throw away the twenty two years with your company by leaving. Ultimately, that may be an option but there are several things you need to consider before you come to that conclusion. I am assuming you have a very good relationship with the owner since he has given you so much authority in running the business. First you must sit down with the owner and express your concerns. Don’t be afraid to discuss any issues or problems that are a result of the relationship the brother and sister have with one another or with other employees. Request that the owner bring in some outside help in the development of the succession plan for his retirement. There are numerous

    How to Build A Successful Business?
    Starting a business and becoming successful is often part of the American Dream. But there is a difference between starting a business and building a successful business. Many businesses fail within the first few years of existence due to the lack of planning for the long-term. There is not enough vision and there is not enough done to strengthen the business properly from the ground up.If you want to start a business there is an easy way to get a better understanding of why some businesses fail and others don't. When starting a business think about it similar to building a house. If done right it is protecting you against any kind of storm or danger of the outside world and will last for a long time. It offers shelter and protection. For you and your business that could be translated to that you want to have a business that is able to weather economical ups and downs (=storm) and that will provide income to pay the bills (shelter and protection).When building a house there are several different steps you need to follow to have the house build. You know you want a house, but you got to pick a location and get an architect to plan everything out. In the business world that would be: you know you want to start a business, but you have to come up with a business idea and work out a business plan. The next thing for the house would be to build the foundation (and eventually the basement) for the house. In the business world - you got to build the initial infrastructure (example: connecting with vendors, find a manufacturer for your product, create a sales team, rent office space, get a delivery truck, etc.). Once that is in place you able to actually do business and earn some money. But you are not completely done yet. You need to build a frame, put in windows and you also need a roof on house. For your business this means that you pay off debt, improve business processes and get professional help when needed (example: find a tax accountant, select a payroll service, etc.).Once the house is build you probably want to fill it with furniture and make it livable for the future. Nobody wants to sleep on the floor, right. Again translating this to the business world it could mean that you invest money you earned back into your business. You buy machinery instead of leasing it. Eventually you buy a building, hire more staff, develop more products, move into new markets, build up a high cash reserve, and buy other businesses and so forth. This is often the step where winners and losers separate. Re-investing money
    company if appropriate.

    • Set specific goals and objectives. Write them down.

    • Maintain a positive attitude. Don’t procrastinate on anything.

    • Keep your promises. Don’t make promises you can’t keep.

    • Sell yourself first. Develop a trusted relationship, and then sell your company.

    • Study your value proposition and your company’s core competencies.

    • Think creatively. Think outside the box.

    • Listen more – speak less. Get your customer to talk about himself. If your customer spends most of the time in a sales call talking about himself, he can’t help but like you.

    Apply the 80/20 rule – listen 80% of the time.

    Client Corner------------ Between a Rock and a Hard Spot

    Rick

    I have been an employee of my company for twenty two years now. I am currently the Vice President of Sales but in reality I function as the right hand of the President. The President/Owner has unofficially given me that authority and depends on me for everything short of doing the actual financial statements. We are in the building supply business with sales over $150 million and we have 365 employees. This is a good company and I love working here. However, the owner has a son and a daughter working in the business. They don’t get along and both of them believe they should take over as President when their Dad retires. The father has confided in me that he intends to turn the business over to both his son and daughter as co-presidents. He believes that one is very strong in operations and the other is strong in sales and they compliment each other. (Funny that I run sales, his daughter works for me and she is good but not presidential quality) Neither of them has ever worked for anybody else and

    they have a silver spoon attitude often wearing their name on their sleeve as their title. Their Dad is in complete denial as to how they relate to one another and to our employees. If we were playing the game “Survivor” I believe they would be the first two voted off the island. I am not sure where that leaves me. Should I be looking to move on?

    Patrick

    Dear Patrick

    It does sound like you are between a rock and a hard spot. However, all is not lost. The worst thing you can do right now is to throw away the twenty two years with your company by leaving. Ultimately, that may be an option but there are several things you need to consider before you come to that conclusion. I am assuming you have a very good relationship with the owner since he has given you so much authority in running the business. First you must sit down with the owner and express your concerns. Don’t be afraid to discuss any issues or problems that are a result of the relationship the brother and sister have with one another or with other employees. Request that the owner bring in some outside help in the development of the succession plan for his retirement. There are numerous family business consultants and organizations that can help

    in this area. A primary objective for your initial meeting is to walk away with your future role clearly defined and agreed upon. Once that happens, step back take a breath and plan for a subsequent meeting where you request some assurances about your position in the company when the transition takes place. This is ideally a contract between

    you and the company that provides a generous severance package should the new president/s determine your role must be dramatically changed, your services are no longer needed or things get so bad between the brother and sister that you have to leave. Of course, anytime a contract is involved you should have your personal attorney review it.

    What advice would you give Patrick?

    ANNOUNCEMENT --------- LONE WOLF to LEAD WOLF “The Evolution of Sales” is finally released and in print.

    This is a book about sales effectiveness that has been tested in the crucible of real life experience. Lone Wolf to Lead Wolf speaks to sales representatives in all industries

    whether they are field sales, inside sales, or counter sales representatives. It even speaks about lessons that managers need to understand. Each chapter is a story, and some

    of them have case studies and other activities to help the reader translate the story to their own situation. The world of sales continues to change and the strategies that created success in the past are failing to maximize success in today's environment. This book tells a simple, but powerful, story of managing change. Creating meaningful change always

    starts with taking responsibility for your own situation. This book was written for those who are driven to success, who may be a little frustrated, but who are open and willing to learn. You have taken personal responsibility for your own career development and you look at sales as a profession rather than just a job.

    Some of the stories deal with sophisticated approaches to supply chain management, including consignment and national account programs. It is fundamentally about building

    and managing customer relationship equity and utilizing all the resources available to create success. The Lead Wolf strategies described in this book will often require that the

    sales rep challenge their own management to be innovative, provide necessary resources and help develop creative solutions that drive profitability for the customer. Learning and personal growth are the only alternatives to the slow death of intellect. This book was written to help those on the path of growth to rise to the next level.

    Ego has No Place in the Golf Swing

    Ego can cause many problems in business but it can also prevent you from playing great golf. The minute I step on the first tee my ego tries to take over. I hear John Daly’s war cry.

    “Grip it and Rip it”. It just does so much to see that little white ball fly off the club and land 260 – 290 yards away in the middle of the fairway. However, when I take that wild John Daly swing, the ball only lands in the fairway about one out of ten tries. Why only a 10% success rate? It’s simple, power doesn’t equal great golf.

    Let me stop here and qualify this golf tip. I am not a pro nor am I an instructor. I have a six handicap but that’s on Florida courses. Up north that six can easily turn into a twelve. So, take this tip with a grain of salt.

    I believe that one of the basic mistakes that will screw up your golf game is letting your ego and being macho get in your way. Golf is a mental game and ego and the macho

    mentality lives in your head. Swinging like John Daly shows power but power doesn’t create a better golf score. Accuracy and control is what it takes to play scratch golf.

    It’s about rhythm, smoothness and a consistent swing plane. Keep your swing under control. Swing easy and freely at the ball. Examine your stance. When you swing like John Daly, chances are you have a wider than necessary stance. Narrow your stance a little and this will reduce your ability to swing for the stars. Relax and swing easy. Trust your club and let it do the work. Try to control your center of gravity by not letting your head move too much.

    If you do it right, it’s sweet. Your swing is smooth and believe it or not, the ball will go just as far as it did with that wild gorilla ego infested swing you use to use.

    The key to success with this nice smooth sweet swing is being relaxed. Don’t brace yourself on your approach. This will cause you to stiffen and there goes your smoothness and your balance. If you can see the club head out of the corner of your eye on your backswing you are definitely over swinging.

    Keep in mind that only the power you have control over is going to help your golf score. One of golf’s oldest clich?s is; “It’s not how you hit the ball --- it’s how many times you hit it.”

    There are no pictures on the scorecard. Lack of power will not increase your golf score, lack of control and accuracy is what leads to bogies and double bogies.

    Your longest drives will come when you swing easier, smoother and in control.

    Yes, John Daly can “Grip it and Rip it” and Tiger Woods can hit a seven iron 230 yards but don’t forget ---- They get paid to do that. They may be able to hit a golf ball farther than you because that’s their career. But, I’ll bet they can’t match your success in wholesale distribution.

    So relax, swing easy and in control. If you do that, all the power you need will be there. And, more importantly, your handicap and golf scores will go down.

    HTTP = HTML link (for blogs, profiles,phorums):
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