Episodios

  • We Need More Formality On Line When Selling To Japanese Buyers
    Jul 8 2025
    Selling to a buyer in-person and selling to the same Japanese buyer online are worlds apart. Yet how many salespeople are succeeding in making the transition? Are your clients seeking virtual sales training? Not enough. COVID has revealed a lot of salespeople weaknesses. which were hidden in the face-to-face sales call world. Wishing things get better is a plan, but not a very good plan because things don't appear like they are going to get better for quite some time. There is also the fact that a lot of companies are not going to have staff in the office every day anymore. So selling online, isn't going to disappear as a part of our reality. Our skills have to include this piece of the puzzle, whether we like it or not. What do we need to do? Here are some ideas to apply with your sales team and get them better able to get the deals COVID or otherwise. First impressions whether at the office venue or online are critical. Posture sounds like an unlikely choice for something to focus on, but think about the body language clues we pick up from people according to the way they hold themselves. Online, we need to be quite formal sitting up ram rod straight, or if we are standing, than standing tall. Our posture needs to convey confidence, competence, trust, and reliability. Sit forward, Roman style toward the edge of the seat online just as you would do in a face-to-face meeting. Get the camera lens up to eye height and frame yourself on screen so that your upper half of your body is visible. This becomes important when we want to use our gestures. Many people I see in online meetings never use their gestures when explaining things. Gestures work online too, but you have to make some adjustment. The corridor between your chest and your ear height is where to use gestures, because that way they will be easily seen. Also don't wave your hands around. These fake backgrounds can't take that type of movement. So it means we need to maintain our gestures longer than usual and move our hands very slowly. You wouldn't slouch in the chair in front of a buyer. And you would look them in the eye when you talk to them. Looking at their faces on screen looks like you are looking down on them when you're talking and that cannot help build a good relationship. Instead, look straight at the lens and try to engage the buyer. We need to make greater use of our voice and lift the energy up at least 20% louder and stronger than usual to compensate for the power loss, which the camera extracts. We need to hit key words and phrases much stronger in order to give them emphasis. We also need to slow our speaking speed down because the audio on these video platforms is universally poor. Pauses become more important to allow what we have said be captured, processed, and understood. We should eliminate ums and ahs because we've rehearsed our sales call online before we make it. We want to sound assured, confident and convinced about what we are saying. Any vocal hesitations defeat that effect so we have to get rid of these verbal ticks. We need to lead off with our credibility statement. This is a brief highlight of our USP or unique selling proposition. We should be using the screen share function to show any visuals supporting what we are saying. For example, one of our USP is longevity, having stood the test of time. For that purpose, we show the New York skyline as it looked in 1912, when the company was founded and the Tokyo skyline in 1963, when we opened in Japan. This visually is much more powerful than just saying we started in 1912 and 1963. Next, we should put up a draft agenda for the call using the screen share function. In this agenda we specify why speaking with us is a good idea. We nominate that we are going to discuss their current situation and their desired future situation, as well as barriers, challenging them from reaching their targets. We ask them if they would like to add any points to the agenda so that they feel ownership of the plan for the call. If they have any additions, then we just type them straight into the document and put it all back up on screen. As we work our way through the detail, it is important to check for understanding. One of the bad elements of online meetings is that buyers multitask while we are talking. In person, they can't do it. But online is the new wild west and there are few rules. This means we have to be insistent that they turn on their camera even though this may uncover some pushback or reluctance. We need to set this up. We both appreciate that mutual trust is very important in business. So let's both turn our cameras on today while we have this meeting. If they won't even turn their camera on, you have to ask yourself if this is really a prospect you should be spending any time. After the meeting, we need to send a lot of data they can look at on their own time. Japan is the data vortex of the universe. And the basic rule is you can never give Japanese buyers too much ...
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    12 m
  • I Like It, It Sounds Really Good, But I Am Not Going To Buy It
    Jul 1 2025
    You manage to get the appointment, which at the moment is seriously job well done. Trying to get hold of clients, when everyone is working from home is currently a character building exercise. You ask permission to ask questions. Well done! You are now in the top 1% pf salespeople in Japan. You do ask your questions and quickly realise you have just what they need. Bingo! We are going to do a deal here today, so you are getting pumped. But you don’t do a deal, in fact you leave with nothing but your deflated ego and damaged confidence. The finish line was right there in front of you and you fell down short. Why? This is one of the most frustrating things in sales. You do all of the right things or so you think and then you don’t get the deal. You start analysing what went wrong. Let me save you some time on that one. You didn’t ask your questions in the right way. Finding out things like: what they want, where they are now and where they want to be, are all brilliant questions. They won’t do the deal though, because you have missed one vital step. That step is to ask the question about where they want to be, and ask it in a specific way. We can say, “so you have mentioned to me the current state of play in the business, can you now please allow me to understand where you want the business to be going forward?”. Good try, but no cigar. That question needs an addendum. We need to ask it this way, “so you have mentioned to me the current state of play in the business, can you now please allow me to understand where you want the business to be going forward and what are the implications, if you don’t get there fast enough?”. This is a clever phrasing of the question, because it is no longer about whether they can get there or not, but can they get there fast enough. Often, the buyer is sitting there listening to us, but thinking to themselves, “that is all very true and we will work on all of that – BY OURSELVES”. That may be the case, but the world has not stopped, so that they can get their act together at their pace, when they are ready, in the fullness of time. No, they have competitors and are engaged in a life and death struggle for survival and in that fierce contest, speed to market is a big factor. This is where we come in. The question is a good one because it challenges their ability to get it done themselves internally and done fast enough. They have to allocate scarce resources to this project and they are already quite busy with what is on their plate now. We can provide that high level of expertise immediately and make a big difference. The best plan in the world never executed is no help. Procrastination affects people and institutions. Getting stuff done inside companies can be excruciatingly slow. So many meetings required, so may sign offs, so much paperwork and bureaucracy to wade through. Having a problem and doing anything about it are different things. As the salesperson, the first thing we learn is that the client is never on our timetable. You need that deal now but they don’t feel any sense of urgency. We have to make sure that sense of the size of the gap between where they are now and where they need to be is enormous. So vast that they just won’t be able to do it by themselves. Also, we have to create that sense of urgency that the cost of doing nothing is not zero. We have to paint the picture of the opportunity cost of being too slow to get going and how their competitors are active and moving forward, while they are lagging behind. If we don’t do this well they will imagine they can do it by themselves at their leisure. The person we are talking to is thinking they can be a hero to their boss by fixing the problem with no need to hire external solution providers. We could say to them, “By applying our solution now, you will speed up the opportunity to gain increased revenues. These additional revenues will not only pay for our solution very quickly but will build a war chest for you to be more agile in taking on your competitors”. That won’t work. Why? Because it is a statement from a salesperson, trying to sell something. Instead, we need to extinguish that false hope of doing it themselves at their leisure, by pointing out through asking well constructed questions, the folly of that approach. For example, “If by applying our solution now, would it be beneficial to you to speed up the opportunity to gain increased revenues?”. After they say, “yes”, we continue. “If these additional revenues allowed you to not only pay for our solution very quickly, but also build a war chest for you to be more agile in taking on your competitors, would that assist your business?”. We need to be sensitive to the client becoming our competitor for the needed solutions. We can most easily attack that false flag by raising the issue of speed. Few ...
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    12 m
  • Bringing More Marketing Into Sales Calls
    Jun 24 2025

    Salespeople have sales tools which often are not thoroughly thought through enough. These can be flyers, catalogues, slide decks, etc. They can also be proposals, quotations and invoices. Usually the salespeople are given the tools as they are and either don’t ask for improvements or don’t believe the marketing department has much interest in their ideas about the dark art of marketing. Consequently, there are some areas for improvement which go begging.

    Flyers, catalogues and slide decks tend to be very evenly arranged. Every page is basically presented in the same way. Yet, as salespeople we know that there are going to be certain products which are more popular than others. These items and corresponding pages should be up the front. It might mean breaking away from the sectional approach, of all the bits and bobs being collected together in their respective places, separate and cordoned off.

    Also, on important pages of these most important products or services, there are bound to be key words or key paragraphs that, over time, we have learnt are of the most relevancy to our clients. There will also be key data tables, diagrams or photos which should be drawn to the buyer’s attention. Why don’t we have marketing do something with this information. Maybe make the font larger, or add bold or highlight using colour. This is only a matter of adjusting the layout of the page and getting the next round of printing or soft copy to reflect these updates.

    Generally speaking, we don’t want to be handing our materials over to the client, in the first instance. We want to spin the item around, so that they can easily read it. With our nice pen we draw their attention to the areas we want them to see. Not everything on that page has equal value. Some sections will be more important than others. They can read the whole thing later at their leisure, but while we are there with them, we want to go through the content and determine what they need to focus on. When we leave the materials with them the highlighted areas will draw their attention to where we need them to be looking for information.

    If this is so easy, why are all the sales materials we see all look the same – flat, undifferentiated and no attempt to direct the eye of the reader? Everyone has their job. Marketing is there to produce the materials, but they don’t know which are the key sections for buyer purview. Salespeople are busy running around seeing clients and just take what they have been given. They never think to make requests to marketing to change the materials.

    What if the buyers have different interests? That will be true, but it will also be true that 20% of the key information will suit 80% of the buyers, so we should concentrate on that content. If there are particular sections which are not highlighted, then we can deal with that problem when we are with the buyer.

    The other areas for some marketing effort are around how we present quotations, invoices and proposals. We should be advertising our services or goods on the quotations and invoices. Key people in the buyer’s company will see these materials and here is a chance to get our information in front of them. If there are soft copies involved this allows us to add links to the website where more information can be found. QR codes are also good for taking information on a page to a website.

    Proposals can be very florid or very flat. Something in the middle is a good idea. We don’t want the presentation of the information overwhelming the messages. We also don’t have to just rely on text. Visual stimulation is very powerful and photos of people are always attractive to us. This is where we salespeople need marketing’s help. We need someone who has great layout skills and knows how to assemble the look and feel of the pages.

    Let’s rethink our sales materials and ask what more could we get from them?

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    11 m
  • Nemawashi Is Gold When Selling In Japan
    Jun 17 2025

    I hear some people say translating terms like “nemawashi” into English is difficult. Really? I always thought it was one of the easier ones. Let's just call it “groundwork”. In fact, that is a very accurate description ,from a number of different angles. Japanese gardeners are superstars. There is limited flat space in this country, so over centuries gardeners have worked out you need to move the trees you want, to where you want them. They prefer this approach to just waiting thirty years for them to turn out the preferred way. It is not unusual today to see a huge tree on the back of a big truck ,being moved from one location to another and presto instant garden. The roots of that massive tree will be wrapped up in cloth to protect them. That wrapping process is called “nemawashi”. In business, it means being well prepared for the business meeting – doing the ground work beforehand.

    In a Western context being well prepared for the meeting will mean assembling all the data and analysis in order to make an impassioned plea for your idea or suggestion, to be accepted by the big bosses. We all get to the meeting, listen to the different approaches and we make a decision in that meeting. What could be more time efficient and logical? They never do it that way in Japan.

    Concepts of time efficiency differ for a start and throwing massive amounts of overtime at a problem is not problem in Japan. The meeting is also a ceremony, because the decision has already been arrived at beforehand and the gathering is just to formalise the outcome. This happens in the West too. Whenever you see global leaders delivering their joint statements or signing agreements, they didn’t arrive at the wording during the meeting. That was all worked out by their minions beforehand, over many hours of debate, negotiation and discussion. The TV cameras just capture the big guys and gals inking the document, after all the “groundwork” has been completed.

    I was talking with a Western businessman recently and he was relating how hard it was to get the team behind his ideas. The issue was, he was trying to get it all agreed to, at the key meeting and hadn’t invested the time to do the groundwork. What he needed to do was go to see all the key people, the influencers, the stakeholders with a vested interest and explain the idea. Get their input and agreement and then rinse and repeat with the rest of them. By the time the meeting happens, everyone will recognise parts of their preferences and ideas in the submission. Agreement flows easily in these cases.

    In sales, we will probably not have direct access to all of the decision makers, influencers and stakeholders. Our primary contact has to become our champion for sheparding the agreement through the internal nemawashi process. Asking them directly who are these hidden decision makers is insulting. It says, you are a nobody, but I still need your help. We need to be more considerate of their “face” and ask in a way that enhances their face.

    Once we have established the trust, have uncovered their needs, shown we can help and have dealt with any hesitations they may have, we are ready to marshal our forces for the final push through to a “yes” to the sale. We explain, we understand that many people will be interested to know about this change in the delivery of product or services. We also know that they will be tasked to explain it to others who cannot join our meetings. We ask how can we help them? This is a rhetorical question because we want to get into the detail of who are the players. So we go straight into asking who do they think would have the most concern about the change and why they would be concerned? We keep repeating this process until we have fleshed out the people who will have the most interest in saying “no”. The next stage is to arm our champion with the tools to deal with the pushback. We try to understand the concerns and then arrive at creative ways of overcoming those concerns.

    This is what we mean by nemawashi or ground work. Is it time consuming – yes! Do we have to invest the extra time – yes! There is an internal logic to the way decisions are made in Japan. There is no point railing about how the Japanese business decision making process should be Westernised, so it is more familiar for us. That is never going to happen, so we need to be better and more flexible to understand the system and then become a master of influence within it. We need to become the nemawashi maestro!

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    10 m
  • The Three Barbers Of Minato
    Jun 10 2025
    Minato-ku or the “Port Area” is a central part of Tokyo, which used to be harbourside for goods being delivered to the capital in ancient times. My three barbers’ stories are tales of customer service opportunities gone astray, in a country where customer service is the envy of the rest of the world. Each story brings forth a reflection on our own customer service and how we treat our buyers. My apologies to Gioachino Rossini for lifting the title idea for this piece from his famous opera. Barber Number One worked in a men’s barber shop in the Azabu Juban shopping street which I frequented (and took my son too), for fifteen years. During that time a number of different barbers there took care of my hair as they came and went. One day, while trimming the hair on the back of my neck, the electric razor must have had a fault, because he cut my skin where he had been shaving my neck. My wife, being a typical demanding Japanese consumer, was appalled by this poor customer service and went there to complain about how they were treating her husband. Me being a laid back Aussie, I didn’t raise a fuss myself, but that didn’t stop my missus from wading in. The youngish barber decided to argue the point with my wife and wasn’t immediately forthcoming with a satisfactory apology. My wife showed the offending damage on the photos on her phone and wasn’t backing off. One of the more senior barbers intervened and made the apology on behalf of the shop. Did that satisfy her? Not in the least. Why? Because she didn’t feel it was a sincere apology. She told me I should never attend that establishment again. The lifetime value of a regular customer is high, especially in a crowded market. There was a management issue there because the service culture wasn’t correct. The interesting thing I understood was that barbers are hard to recruit these days, because not so many people want to join the trade. They felt they could afford to lose me as a regular over fifteen years or more but they couldn’t afford to lose the barber. The point though is where do you draw the line around the culture of your service? What are you saying is acceptable behaviour to the other staff? When things go wrong, this is when the real culture of your organisation is revealed. Barber Number Two belonged to a well known chain of successful barber shops and was introduced by my wife as an appropriate alternative to the previous bloodthirsty razor wielding maniac she disapproved of. I wasn’t all that keen on this Roppongi establishment, once Covid-19 hit, because it was a rather confined space. In the centre of Tokyo, a lot of companies are using what were once apartments as business premises, so the layout and size can be quite small. Having trained this young guy on how I like my hair done, I persevered, Covid or otherwise. I called to make an appointment only to be told he had been transferred to one of their shops on the outskirts of Tokyo. Staff movements happen, but how we handle them is another matter. Did my barber call me and introduce his successor? No. How expensive would that have been? Again, no one was thinking about the lifetime value of the customer here. I had invested in educating him about what I liked and so I would not switch easily unless I had to. This is another management failure, where handovers are not being properly choreographed. Customer continuity has a distinct value to it. Barber Number Three is my new barber and belongs to a shop which has been continuously operating on that same spot for the last 203 years, again in the Azabu Juban area. It must be the oldest barber shop in Japan and probably the world. The young guy cutting my hair showed me to the chair and started asking me about how I liked my hair done. Red flag there. He didn’t introduce himself to me, and I had to ask him for his name. Why would that be the case? I asked him about the history of the shop and it was clear he didn’t know much beyond it was 203 years old. He didn't know if they had famous people over that time as customers. I asked him how they traditionally cut hair in Japan, before western scissors arrived in the Meiji era – he had no idea. So, this was really just the same as any other barber shop, because the management has not educated their staff about the heritage value of their offer. I was a new client, so here was the chance to make me a permanent client. In a sea of so many competing establishments, I thought what a waste of an opportunity to differentiate themselves, beyond just having a sign in the window, that says they are over 200 years old. There was no narrative around that fact, no great stories attached to it, no buzz, no particular vibe. The common theme across these stories is how to differentiate your service in highly competitive industries. There were also poor levels of understanding about the lifetime value ...
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    11 m
  • Create Reference Points For Clients
    Jun 3 2025
    There is no doubt that the pandemic has made it very fraught to find new clients in Japan. The new variants of the virus are much more contagious and have already overwhelmed the hospital infrastructure in Osaka, in just weeks of the numbers taking off. Vaccines are slow to roll out and so extension after extension of lockdowns and basic fear on both sides, makes popping around for chat with the client unlikely. We forget how much we give up in terms of reading and expressing nuanced ideas through not having access to body language. Yes, we can see each other on screen, but it just isn’t the same. In this situation, which looks to be scheduled to last until early 2022, we have to work on new skills. We know about storytelling, word pictures and refined word selection for better communication. Knowing about it and doing it though, are ridiculously different. I know, because we teach this stuff. I can explain the formulas and the methodologies and the class participants get it, but doing it is often a struggle. Obviously practice with strong coaching is the cure. We will be beginning our conversation with a client online and this could be a new client or more likely, a new person down at the client’s company, as every April the wheel of fortune is spun and the HR department nominates who goes where. The explanation of who we are and what we do and why you should deal with me (and by extension my firm) is a critical juncture. Jumping straight into the product catalogue tour is dumb. This made little sense when we were sitting knee to knee, but makes absolutely no sense when we are screens apart. Instead, we need to get their permission to ask cogent questions, which will ultimately unveil needs. There is a simple formula for doing this, so there is no excuse why every salesperson should not be doing this. Firstly we need to explain who we are and what we do. This is a great opportunity to build your firm’s credibility with the client. We shouldn’t forget to weave our history into the narrative and make it personal. This is not a history lesson on the company but a base on which to build trust and we have to make sure we are represented in this part of the storytelling. For example, “We are global soft skills training experts and Dale Carnegie launched the company in New York in 1912. The fact that ninety percent of the Fortune 500 companies use us, shows that the most discerning firms recognise the value we bring. We have stood the harsh test of time globally and in Japan too, since we established operations here in 1963. We are way beyond all of that ‘it is American so it won’t work in Japan’ stuff, as we have localised the content and 80% of our delivery in in Japanese. I have been with the firm for the last eleven years and have seen the impact our training has across all industries”. In this forty second burst we have packed the content to the gunnels with credibility statements and emotive words. This initial reference point tells the buyer we are a safe option. “Nobody got fired for choosing Dale Carnegie Training” type of idea. Next, we tell a story about a client. They had a certain issue, preferably one we think might be shared by this client and we explain the solution applied and the result achieved in a very micro and brief manner. We emphasise the pain this problem was causing for a particular decisionmaker inside the company, someone in a similar position or role to our interlocutor. We briefly explain what we did and then we dwell on the perceived value of the solution formed from the client’s point of view. We should bring back pieces of their dialogue with us, to fully express their happiness that the problem was fixed, so that the buyer we are in front of on screen, will have confidence in our suggestions. This is a reference point for the client that we can help them. Finally, we say, “Maybe we could do the same for you. I am not sure, but in order to find out, may I ask a few questions”. And then we say nothing. Wait until they speak – don’t add, or clarify, just sit there in total silence until they give an answer. Once we have their permission, then we can dig in and see if we have a solution for their problem. This is a reference point that says the buyer is now willing to share a lot of confidential information with us. If we don’t get a match between what we do and what they need, then no slamming of the square peg into the round hole – we get off that call and we hold another potential business discussion with another buyer. The pandemic has made the whole art and science of selling more complex, but there are some fundamental basics we have to get right or nothing will go our way. Business is hard to find at the moment, but never find bad business – the money won’t be worth the trouble and you only tarnish your personal and professional brands. There are plenty of clients ...
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    13 m
  • Do You Have Enough Grey Hairs In The Sales Team?
    May 27 2025

    Japan is a very hierarchical society. I am getting older, so I appreciate the respect for age and stage we can enjoy here. Back in my native Australia, older people are thought of having little of value to say or contribute. It is a youth culture Downunder and only the young have worth. “You old so and so, you don’t know anything” is reflective of the mood and thinking. As a training company in Japan, we have to be mindful of who we put in front of a class and in front of clients. If the participants are mainly male and older, then it is difficult to have a young female trainer or salesperson allocated to that company.

    That young woman is going to be talented and effective as a trainer because our trainer development system is so demanding. She is also going to be highly skilled in sales, because we teach sales. It doesn’t matter. The HR people or the line manager complains, because the class members don’t feel young people have anything to teach them or are qualified to sell them anything.

    I was reminded of this recently when trying to allocate trainers and salespeople for certain companies. We have a lot of internal trainers and salespeople who are under 35 and a few who are over 45 and so there is an imbalance. One of my senior guys has suddenly quit. He was performing both functions, so it is a double loss. As our older team members age, they have seen their kids leave the home and then have their aged parents to worry about. The life of a small business owner is always like this. There is never an equilibrium or a period of extended stability with staffing. Just when you think you have it working like a smoothly oiled machine, in goes a wrench and the whole thing comes to a shuddering halt.

    The transfer of responsibilities for clients between staff is not that easy. It goes both directions too. We have staff who build strong personal relationships with counterparties and then their interlocutor is moved to another function and a replacement appears. Often, this can mean the end of the relationship with that firm, as the new broom have their preferred suppliers and you are not one of them.

    You also imagine that within the client big firms there is a seamless transfer between their staff for that part of the business. Not so. I was dealing with a big multi-national and to my amazement the new person had absolutely no knowledge of what we had been doing for them in terms of training. Obviously there was no hand over of the tasks and things have been going less smoothly as a result.

    Normally in Japan, we try to recruit younger people, however we have to also be flexible and look to hire older staff, the venerable grey hairs who can gain the respect of the clients. Trying to maintain the right balance between the generations is not that easy. Also, anytime we have to replace someone as a salesperson, then we can draw a big red line diagonally across each month of the calendar for the next 18 months. They will not be particularly productive for that period of time. Learning the business, really understanding the products and our methodology takes a lot of time. They also have to build their own client base and that doesn’t happen in a hurry.

    It takes about the same period of time to see someone make their way through the Dale Carnegie labyrinth of trainer certification. It is an arduous, challenging process and not everyone is suited to become a trainer. The skills for selling and training have similarities but there is also that X Factor of personality needed to become accepted by clients.

    The infamous and elusive Plan B needs to be dusted off and then we can move into action. The problem is we don’t spend any time thinking about negative circumstances that require a Plan B. Also, the mix of possibilities across the range of staff is so complex, how can you effectively anticipate what happens next. Nevertheless, I quickly realised I need multiple Plan Bs ready to go, in case of changes in the team complexion. I usually spend a minus amount of time thinking about those myriad possibilities, because I am too busy doing other things in the business.

    I will need to do better in this regard and have an update process scheduled throughout the year, rather than leaving it to surprise announcements of staff departure, to stir me to action. How about your case? How are your multiple Plan B development scenarios going?

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    10 m
  • The Big Myth Of The Sales A Player
    May 20 2025

    When we read commentary about how we should be recruiting A Players to boost our firm’s performance, this is a mirage for most of us running smaller sized companies. If you are the size of a Google or a Facebook, with massively deep pockets, then having A Players everywhere is no issue. The reality is A Players cost a bomb and so most of us can’t afford that type of talent luxury. Instead we have to cut our cloth to suit our budgets. We hire C Players and then we try to turn them into B Players. Why not turn these B Players into A players?

    This is a contradiction isn’t it, because we always striving and thrusting for the best possible results. If we invest and take a B Player to A Player status, there is a very strong likelihood someone else will admire our handiwork and poach them from us. We have all heard that truism about “what if I develop my people and they leave”, countered with “what if we don’t invest in them and they stay?’. This is correct up to the point of your cash flow reserves. We are not talking about having useless people staying on, sucking up our cash resources.

    B Players are very capable and are worth investing in to become even more capable. The additional investment to turn them into A players though, if they have that capability in the first place, may be a case of over investment. Having large portions of your revenue centered around a very small number of clients is recognized as a very dangerous position to be in. In the same way, having one or two people accounting for a disproportionate amount of firm income or expertise is also dangerous.

    When the top performers leave it can be very disruptive. Most bosses do not sufficiently explain their departure to the remaining staff. In this vacuum, the other members of the team worry about what the A Players know that they don’t. Is the firm going down and are those most capable of getting another job jumping ship? Will an exodus of A Players introduce fragility into the business? The loss of the contribution of A Players is bad enough, but their departure can be interpreted by staff in ways bosses would never imagine. That is why no matter who leaves, leaders always need to carefully reassure everyone else, that the firm is fine and this was a personal choice by one individual. Don’t allow rumours, imaginings and guesswork to creep into the equation. We need to own the narrative every time.

    I have a very carefully designed spreadsheet which allows me to track my sales team’s performance. It includes all of their costs and related costs, to give me a clear picture of what each sales person’s contribution to the company actually is. This allows me to see the amount of leverage they represent. I want to know what is the multiple of their revenue return against their total cost. The bigger that multiple the better, up to a point.

    If the multiple is fantastic, but the overall income volume generated is too low, then we can go broke in short order. So there has to be a balance between raw volume of funds coming in and the effectiveness of return on their efforts. This is where B Players can excel. They produce multiples which work for the business and generate a positive profit result. The A Players can have bigger numbers, but their multiples may not be that outstanding. They also point to their big numbers and say rude things like “I want more money”. That pay rise to keep them will hammer the attractiveness of their multiple pretty quickly.

    A Players are like an oasis in the desert. The vision through the heat haze can lure small business owners to invest, when that may not be the best idea. It can be better, over time, to build the ranks of the B players from the within the ranks of the C Players. This is the classis bootstrap approach to building companies. We all do it at the beginning don’t we, but then with some success comes hubris and we start to imagine we can extrapolate our genius. Before you know it, the multiples have swung in the wrong direction. For this reason, it is wise to track the multiples down to the last cent and determine to keep on tracking.

    When you are small, love your B Players and hold them close. Invest in them, but don’t over invest. Where is that elusive line of demarcation? Experience watching newly minted A Players, who were once your B Players, heading for the exits and more money, helps to establish it in your mind. Monitoring the multiple components will create an algorithm indicating how much is enough and how much is too much. We won’t always get it right, but we can get pretty close if we pay careful attention to the issue. Remember this is art, but with big servings of science tossed into the mix.

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