One of the benefits of being part of HTG is the unbelievable resources that exist in our membership. I certainly don't claim to be an expert on every aspect of running an IT company today. There have been plenty of learnings over the years which I try and share continually, but when it comes to expertise - there are some folks in almost every area that are way ahead of me.
I got an expanded view of sales from one of the guys I respect immensely as a sales expert - Jonathan Warrey who is Regional Sales Director at HTG member Marco and runs a large sales team and drives millions of dollars of business each year. Jonathan is always ready to help out with sales information - many of you were part of his session at our last HTG Summit along with Steve Riat on sales management.
He shared these words in response to my last blog post on sales. Rather than interpret them for you - I am just going to share what he wrote as it nails the whole sales culture far better than I can describe it. He responded to my paragraph that said:
“Once the owner gets his attitude right there is at least a fighting chance to begin doing some of the right things that will lead to sales success. It is not just hiring a sales person. That will not do it. You don't have to look far to see the past performance of most VAR's littered with sales people they hired and fired because they didn't meet expectations. That is the place to start - realistic expectations. Since you have no clue what to expect - you obviously should not be setting them. Find someone who has a clue to help you create a sales plan and methodology so the sales person has some hope of success. Most VAR's hire and set them up to fail - no support - no direction - no tools - no nothing - just a wish of good luck and a threat that "I'll be watching the KPI's". Here is a news flash. Most sales people can't spell KPI and could care less. They have only one that matters - that is the number of dollars in their paycheck.”
Here comes Jonathan's brilliance - read it and ponder it carefully:
"The one difference I see in your last statement and what we experience at Marco is that there is something that transcends the pursuit of a paycheck. And that’s the pursuit of sales achievement and sales excellence. I truly believe that creating and fostering an environment of sales achievement is even more important that creating an environment that celebrates a sales rep earning a lot of money. Then when you wrap it around client satisfaction and retention results to show how our best reps also have happy customers, it becomes really powerful. Yes, those reps earn the most money as well, but it’s the pursuit of sales excellence that drives them the most. We continue to change what has the most sales impact within our company. You’ve probably seen that managed services has become a bigger deal within our company. In fact, our reps don’t get 15% of their paycheck (through a commission hold back) if they don’t achieve their managed services annual revenue goal. The pay is a big deal, but the fact that they would miss the sales incentive trip if they don’t hit their managed services target is a bigger deal to most of our reps."
Did you catch that? Not only do we need to build a sales organization - we need to build a sales culture that applauds achievement and excellence. That is the foundation of a really great sales organization. When you have a sales team that is focused on excelling, serving their clients and retaining them - you have a winning combination. The Marco folks have proven that over the years as the largest member in HTG several times over. They understand that the culture of their organization is critical to building long term success. Having had the priviledge of spending time in their office - they do things right all day every day. Have you built a sales culture that drives excellence and achievement? The rest takes care of itself if we get that culture part right!
PS - if you try and get hold of Jonathan this week - he is off to sunny Mexico with his bride and 30 other Marco couples to enjoy the sales team incentive trip. While it’s not as encompassing as a whole company retreat, it builds incredible camaraderie amongst the troops. It can be done my friends. I won't say it is easy - but it is possible!
Saturday, February 19, 2011
Sunday, February 13, 2011
The Disconnect With Sales
As I participated in the HTG vendor peer group this week - a lightbulb went on as to a major reason there is such a disconnect between VAR's and Solution Providers and their vendors. It has to do with a four letter word - SALES. The agenda for this quarter's meeting focused heavily on sales and marketing efforts that key HTG vendors are making significant investments into - and trying to figure out ways to get a better ROI on those efforts.
At first glance it seems so easy. Vendors build programs and resources. Partners should take those and use them to drive sales. Everyone wins. That is the end game for both groups - partners and vendors - we all want the same thing - to sell more stuff to end clients. But somehow there is a disconnect. For some reason the millions of dollars - and in reality it is billions of dollars - that are spent continues to provide lackluster results. Hundreds of millions of dollars go unused and unclaimed. It is actually pathetic.
Why does this happen? I am convinced there is a short circuit in the brains of many VAR's when it comes to sales. Most owners grew up on the technical side of the business. That word does not compute. Those who have a sales background did most of their selling through personal relationship and the reality of a sales organization still doesn't compute. In other words - we are very sales illiterate.
That doesn't mean it can't change. It has to. If it doesn't many of us will be looking for a new job. The market is changing as the wave moves us to cloud computing. That is a sales dominated transaction oriented marketplace. It doesn't matter that you can fix any technical issue under the sun - often before it is even invented. It doesn't matter how many letters there are after your name and what certifications you can post on your website. If you can't sell you will be toast. So it is time we figure this out my friends. And I am preaching to myself on this one too.
The major hurdle it seems to me is owner attitude. Many just don't want to deal with sales and particularly sales people. I hear words like 'they're wierd' or 'they think differently'. Duh! That is the whole point. The reason we as technical owners can't sell our way out of a paper bag is that we think like technicians and engineers. Sales oriented folks succeed BECAUSE they think different. That is not a curse - it is a blessing. It has to be and we need to get over the differences and embrace them. I struggled with this for many years but it can happen. Find a 12 step program to recover from hating sales and sales people - you have to do a 180 on that attitude.
Once the owner gets his attitude right there is at least a fighting chance to begin doing some of the right things that will lead to sales success. It is not just hiring a sales person. That will not do it. You don't have to look far to see the past performance of most VAR's littered with sales people they hired and fired because they didn't meet expectations. That is the place to start - realistic expectations. Since you have no clue what to expect - you obviously should not be setting them. Find someone who has a clue to help you create a sales plan and methodology so the sales person has some hope of success. Most VAR's hire and set them up to fail - no support - no direction - no tools - no nothing - just a wish of good luck and a threat that "I'll be watching the KPI's". Here is a news flash. Most sales people can't spell KPI and could care less. They have only one that matters - that is the number of dollars in their paycheck.
Yes that is very different than the way you think. But it is reality. Get over it. And get over the fact that a really good sales person will make more money than you. In fact, don't just get over it, root for it. When they do that you are making more money than ever before if you have your compensation plan right. If you don't - they could take you to the poor farm - so another reason to find someone who has been there and done it before to help you. There is help available. HTG has worked with TruMethods, Kendra Lee, Service Leadership, and a number of our own HTG members to bring you great content on how to really build a sales organization. If you were sleeping - time to wake up and reach out for help. It is available.
So back to my opening discussion. Our vendor partners are trying hard to help us learn to become sales organizations. They are investing tons of money and people resources to help us. But if we don't get our attitudes right - and embrace that transition - it is all for naught. If we don't join their efforts and leverage their work - we are screwed. I can't put it any more clearly. Get over the temptation to treat your vendor like the enemy. They absolutely are the best ally you have in your camp. And right now - we all need them more than ever. You see - they are not built as technical organizations that don't know how to sell. Those companies went out of business long ago. Our vendors are sales organizations who really know how to sell - and know that without sales they are simply not going to last long at all. We can learn an aweful lot from them if we just pay attention and work closely. They really do know what they are doing. That is how they become multi billion or multi million dollar orgs. It isn't because they can turn a screwdriver. It is because they understand how to sell and market and succeed. We have to get there if we want to remain relevant in the years ahead.
There are some great programs in the channel today that most of us fail to use. Free money and resources to help us grow our companies - but we are too busy doing things that don't matter to do those that do. Make time to sit down with your top five vendors and find out how you can leverage every program, resource, MDF dollar and plan they have to offer. If you do that - and pay attention - and make it a priority to leverage those things - you will be far ahead from where you are today. If you don't - might want to get your resume up to date - you'll probably need it sooner than later. Make it your goal to transition towards becoming a sales and marketing organization in 2011. Your future depends on it.
This Wednesday at 2 PM EST I will be joining Gary Pica, CEO of TruMethods, to discuss this topic and others that are critical to success in 2011 and beyond. If you aren't registered yet you can get the registration link on the HTG portal. It really matters that we tackle this head on. I hope you will join me for the discussion!
At first glance it seems so easy. Vendors build programs and resources. Partners should take those and use them to drive sales. Everyone wins. That is the end game for both groups - partners and vendors - we all want the same thing - to sell more stuff to end clients. But somehow there is a disconnect. For some reason the millions of dollars - and in reality it is billions of dollars - that are spent continues to provide lackluster results. Hundreds of millions of dollars go unused and unclaimed. It is actually pathetic.
Why does this happen? I am convinced there is a short circuit in the brains of many VAR's when it comes to sales. Most owners grew up on the technical side of the business. That word does not compute. Those who have a sales background did most of their selling through personal relationship and the reality of a sales organization still doesn't compute. In other words - we are very sales illiterate.
That doesn't mean it can't change. It has to. If it doesn't many of us will be looking for a new job. The market is changing as the wave moves us to cloud computing. That is a sales dominated transaction oriented marketplace. It doesn't matter that you can fix any technical issue under the sun - often before it is even invented. It doesn't matter how many letters there are after your name and what certifications you can post on your website. If you can't sell you will be toast. So it is time we figure this out my friends. And I am preaching to myself on this one too.
The major hurdle it seems to me is owner attitude. Many just don't want to deal with sales and particularly sales people. I hear words like 'they're wierd' or 'they think differently'. Duh! That is the whole point. The reason we as technical owners can't sell our way out of a paper bag is that we think like technicians and engineers. Sales oriented folks succeed BECAUSE they think different. That is not a curse - it is a blessing. It has to be and we need to get over the differences and embrace them. I struggled with this for many years but it can happen. Find a 12 step program to recover from hating sales and sales people - you have to do a 180 on that attitude.
Once the owner gets his attitude right there is at least a fighting chance to begin doing some of the right things that will lead to sales success. It is not just hiring a sales person. That will not do it. You don't have to look far to see the past performance of most VAR's littered with sales people they hired and fired because they didn't meet expectations. That is the place to start - realistic expectations. Since you have no clue what to expect - you obviously should not be setting them. Find someone who has a clue to help you create a sales plan and methodology so the sales person has some hope of success. Most VAR's hire and set them up to fail - no support - no direction - no tools - no nothing - just a wish of good luck and a threat that "I'll be watching the KPI's". Here is a news flash. Most sales people can't spell KPI and could care less. They have only one that matters - that is the number of dollars in their paycheck.
Yes that is very different than the way you think. But it is reality. Get over it. And get over the fact that a really good sales person will make more money than you. In fact, don't just get over it, root for it. When they do that you are making more money than ever before if you have your compensation plan right. If you don't - they could take you to the poor farm - so another reason to find someone who has been there and done it before to help you. There is help available. HTG has worked with TruMethods, Kendra Lee, Service Leadership, and a number of our own HTG members to bring you great content on how to really build a sales organization. If you were sleeping - time to wake up and reach out for help. It is available.
So back to my opening discussion. Our vendor partners are trying hard to help us learn to become sales organizations. They are investing tons of money and people resources to help us. But if we don't get our attitudes right - and embrace that transition - it is all for naught. If we don't join their efforts and leverage their work - we are screwed. I can't put it any more clearly. Get over the temptation to treat your vendor like the enemy. They absolutely are the best ally you have in your camp. And right now - we all need them more than ever. You see - they are not built as technical organizations that don't know how to sell. Those companies went out of business long ago. Our vendors are sales organizations who really know how to sell - and know that without sales they are simply not going to last long at all. We can learn an aweful lot from them if we just pay attention and work closely. They really do know what they are doing. That is how they become multi billion or multi million dollar orgs. It isn't because they can turn a screwdriver. It is because they understand how to sell and market and succeed. We have to get there if we want to remain relevant in the years ahead.
There are some great programs in the channel today that most of us fail to use. Free money and resources to help us grow our companies - but we are too busy doing things that don't matter to do those that do. Make time to sit down with your top five vendors and find out how you can leverage every program, resource, MDF dollar and plan they have to offer. If you do that - and pay attention - and make it a priority to leverage those things - you will be far ahead from where you are today. If you don't - might want to get your resume up to date - you'll probably need it sooner than later. Make it your goal to transition towards becoming a sales and marketing organization in 2011. Your future depends on it.
This Wednesday at 2 PM EST I will be joining Gary Pica, CEO of TruMethods, to discuss this topic and others that are critical to success in 2011 and beyond. If you aren't registered yet you can get the registration link on the HTG portal. It really matters that we tackle this head on. I hope you will join me for the discussion!
Monday, February 7, 2011
The Value of a Company Retreat
This past weekend HTS celebrated our 2010 successes with our annual company retreat. We met in Lenexa Kansas, a suberb in the SW KC area, at the Crowne Plaza Hotel with our entire staff. That has been our habit since the mid 90's - to gather the troops and celebrate the past year and prepare for the next one. The venue was very good and excitement was high as we gathered to get acquainted with new team members and review things.
Friday afternoon the teams were in training. Our engineering and sales teams learning about Mitel, SonicWALL and Microsoft. Our dispatchers spent time working on processes to improve service delivery. Our admin team was together working on things from their perspective. How much do you invest in training your people? Hosting a multiday retreat for a staff of 80 plus is not inexpensive - in fact it is really quite a cost - but you can't look at it as an expense but rather an investment. So often owners are short sighted in how they approach their people - the biggest cost on the P&L - but the biggest resource the company has to succeed too. And that is what we have to focus on - equipping our resources with more knowledge and skill so they are able to continue to grow and excel even more in the years ahead.
That is particularly true of leadership teams. Often companies will spend money for sales or technical certifications. After all, they are required to keep vendors happy and to remain authorized to sell their products or qualify for their programs. But how many companies are investing more in their leadership team? This group of people has the largest impact on the direction and success of a company and yet often has little or no investment in getting better. We don't spend money on the leadership - somehow they are supposed to figure it out by osmosis. It doesn't really work that way I am afraid. We need to continue to sharpen our skills as leaders and invest in ourselves as a leadership team. Without that we become stagnant and come to a point where we are no longer equipped to continue leading the charge.
Friday night we did two things - we had fun and mixed and mingled and enjoyed getting connected with each other. There were a number of our team that I had never met face to face before. Hard to imagine isn't it - but long gone are the days where I am involved in every interview and hiring decision. This is the one time we try and connect all the dots for everyone from our 7 locations. Unfortunately the ice in Oklahoma prevented that team from attending, but most all the others were with us. People are able to work more closely and effectively when they can put a face to a name. They can relate better and feel more confident when they have shaken the hand of their teammate. It just makes for better working conditions even with all the across the wire collaboration tools we have today. There is nothing quite like a face to face connection!
The other part of our Friday night event was our annual awards presentation. Each year we honor a number of our team for their exceptional work during the past twelve months. We realize that it is the team that makes a successful company - not just the leadership. We recognize the top sales and service producers and rookies of the year. We hand out go-giver awards to those who embody our company vision and mission and reach out to help others. We honor those who are leading the way in driving our business, and those who embrace the spirit of HTS. It is a fun time of recognizing those who go above and beyond to make it happen every day. Team is what makes HTS successful and we want to make sure those who really help us succeed are given their just rewards.
Saturday we did a review of the past year - not spending a lot of time dwelling on the past - but looking at areas we can improve in. While it is important to learn what we can from past performance - we can't drive effectively by looking in the rear view mirror. Far too many leaders spend all their time dissecting the past and far too little planning for and executing for the future. So we spent much more time looking at the plans for 2011 than our performance in 2010. We also broke the group into smaller groups to talk about our personality traits and how we can work better together with those who might think a bit differently or be wired in a different way.
We closed the day with some motivational comments from our President - Connie Arentson - and then I did a Q&A session for the team answering the proverbial question of when our next M&A will occur. I shared my perspective on the market, on China and other big picture items and focused the team on our big rock for 2011 - getting our processes and customer experience consistent for every interaction we have.
So was the investment worthwhile? I definitely think it was and the feedback from the team indicates they enjoyed it much as well. We have to take time to celebrate our successes and share our vision for the future if we want to succeed. Our teams don't read our minds. We have to be intentional about how we lead. And by the way - as I shook each employees hand on the way out we gave them their bonus for 2010 which always leaves a smile on their face as they head home. Sharing our success with them is our way of saying thanks for a job well done. We are blessed to have the team we do - and want them to know we really appreciate all the hard work. Have you been intentional in leading and investing in your team? If not, now is the time to start. They will take you to the next level!
Friday afternoon the teams were in training. Our engineering and sales teams learning about Mitel, SonicWALL and Microsoft. Our dispatchers spent time working on processes to improve service delivery. Our admin team was together working on things from their perspective. How much do you invest in training your people? Hosting a multiday retreat for a staff of 80 plus is not inexpensive - in fact it is really quite a cost - but you can't look at it as an expense but rather an investment. So often owners are short sighted in how they approach their people - the biggest cost on the P&L - but the biggest resource the company has to succeed too. And that is what we have to focus on - equipping our resources with more knowledge and skill so they are able to continue to grow and excel even more in the years ahead.
That is particularly true of leadership teams. Often companies will spend money for sales or technical certifications. After all, they are required to keep vendors happy and to remain authorized to sell their products or qualify for their programs. But how many companies are investing more in their leadership team? This group of people has the largest impact on the direction and success of a company and yet often has little or no investment in getting better. We don't spend money on the leadership - somehow they are supposed to figure it out by osmosis. It doesn't really work that way I am afraid. We need to continue to sharpen our skills as leaders and invest in ourselves as a leadership team. Without that we become stagnant and come to a point where we are no longer equipped to continue leading the charge.
Friday night we did two things - we had fun and mixed and mingled and enjoyed getting connected with each other. There were a number of our team that I had never met face to face before. Hard to imagine isn't it - but long gone are the days where I am involved in every interview and hiring decision. This is the one time we try and connect all the dots for everyone from our 7 locations. Unfortunately the ice in Oklahoma prevented that team from attending, but most all the others were with us. People are able to work more closely and effectively when they can put a face to a name. They can relate better and feel more confident when they have shaken the hand of their teammate. It just makes for better working conditions even with all the across the wire collaboration tools we have today. There is nothing quite like a face to face connection!
The other part of our Friday night event was our annual awards presentation. Each year we honor a number of our team for their exceptional work during the past twelve months. We realize that it is the team that makes a successful company - not just the leadership. We recognize the top sales and service producers and rookies of the year. We hand out go-giver awards to those who embody our company vision and mission and reach out to help others. We honor those who are leading the way in driving our business, and those who embrace the spirit of HTS. It is a fun time of recognizing those who go above and beyond to make it happen every day. Team is what makes HTS successful and we want to make sure those who really help us succeed are given their just rewards.
Saturday we did a review of the past year - not spending a lot of time dwelling on the past - but looking at areas we can improve in. While it is important to learn what we can from past performance - we can't drive effectively by looking in the rear view mirror. Far too many leaders spend all their time dissecting the past and far too little planning for and executing for the future. So we spent much more time looking at the plans for 2011 than our performance in 2010. We also broke the group into smaller groups to talk about our personality traits and how we can work better together with those who might think a bit differently or be wired in a different way.
We closed the day with some motivational comments from our President - Connie Arentson - and then I did a Q&A session for the team answering the proverbial question of when our next M&A will occur. I shared my perspective on the market, on China and other big picture items and focused the team on our big rock for 2011 - getting our processes and customer experience consistent for every interaction we have.
So was the investment worthwhile? I definitely think it was and the feedback from the team indicates they enjoyed it much as well. We have to take time to celebrate our successes and share our vision for the future if we want to succeed. Our teams don't read our minds. We have to be intentional about how we lead. And by the way - as I shook each employees hand on the way out we gave them their bonus for 2010 which always leaves a smile on their face as they head home. Sharing our success with them is our way of saying thanks for a job well done. We are blessed to have the team we do - and want them to know we really appreciate all the hard work. Have you been intentional in leading and investing in your team? If not, now is the time to start. They will take you to the next level!
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