Showing posts with label Sales. Show all posts
Showing posts with label Sales. Show all posts

Saturday, February 19, 2011

A Bit More On Sales

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!

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!

Sunday, December 19, 2010

Sales Matter

This is the sixth blog post regarding the 10 Things I Accidentally Learned on the Path to Growth. There is little question that many small business owners really dislike the whole sales process or anything that is related to it - particularly in the IT industry. But sales is not a four letter word - well it is - but it isn't a bad one. And there is little question that sales really do matter. That could be the understatement of the century actually.

Why is there such an aversion to sales by so many IT firms? Well for many of us, we came up to leading our company via the technical side of the business. We were engineers that were good at what we did and then decided to hire a few more like us and form a company. That works for a while but soon we hit the wall because we don't sell - we can fix anything under the sun - but we don't sell. I use don't rather than can't here intentionally. Anyone can sell - maybe not equally well - but it isn't that IT owners can't sell - it is because they almost despise the idea and certainly the notion of what being a salesperson is all about. Time to get over it!

Nothing happens until something gets sold. Let me say it again - nothing happens until something gets sold. OK - I have admitted it in public. We need to sell if we want to have a business. And sales is not a matter of luck. It happens when we build a sales process and system that makes sales happen regularly. We have to make the investment to put the right system and tools in place to make it happen. It can't be a hope and a prayer. That is not a sales strategy. Sales happen when we build the right foundation, hire the right people and execute the plan consistently. It really is not magic - it just takes consistent hard work doing the right things every day.

Most sales people fail because of a lack of support and management. It is common in the IT small business space to have a revolving door of sales people. We hire a person, let them flounder around on their own for 3-4 months and then fire them because they haven't sold much or anything at all. We blame them. Here is a newsflash - they likely are NOT the problem. You are. We set most new sales hires up for failure. We don't give them the right tools. We don't have a system in place. We don't manage or support them. We wish them well and sit back waiting to count the money. It just doesn't work like that. Owner attitude and support will make or break the sales engine in any company. Take a good look in the mirror and you will likely find the problem with your sales people.

When we do find that super human who is able to defy the odds of our lack of support and systems and actually sell something - it only lasts for a while. That is because without marketing support - every sales person will eventually run out of opportunities and people they know to sell to. It is our job to create leads for our sales people to follow up on. That is called marketing. It is hard work. It costs lots of money. It is somewhat luck - often more magic than science from my experience. But without marketing support - without aircover and other supporting tools to help drive leads and open doors - even a veteran sales person with many years of success will stub their toe. It is necessary to spend money on marketing to have consistent sales performance.

The pendulum is rapidly swinging toward sales. I see some major changes that are already in motion and will change the landscape as we know it for IT for many years to come. The cloud will force us to become sales organizations. You can resist, hide you head in the sand, and wake up one day wondering what has happened to your customer base. Or you can accept the fact that change is coming and make some changes. Some of these changes have been in motion for a while. Others are more a result of the current market and the move toward the cloud. But no matter the reason - they are coming. Here are some observations:

•From technical to sales focus
•From answering the phone to creating demand
•From selling products to selling solutions
•From T&E to flat rate services
•From on premise to the cloud

No longer will the company with the most technical genius necessarily win. I predict that those with most mature sales approach will actually come out on top. This new reality is that the IT business is moving toward a transactional relationship and those who can sell will win in that landscape. The reality is that companies must become sales organizations. We have to deal with these realities:

•Sales people are not the enemy
•It requires new thinking and management
•It requires new compensation models

Along with that we must become marketing organizations:

•Referrals are great but go only so far
•Most companies have just continued to sell new solutions to their current base
•We must become lead generators for the sales team
• Lead generation is not the vendors responsibility

Here is the reality as I see it. If you don’t embrace sales, growth will be stagnant and you will be frustrated. That is - if you survive. There will be plenty of companies that fail completely because they refuse to adopt the notion of becoming sales organizations. You don't have to like it - but it does work better if you do. You do have to do it and the time to begin is immediately. You can't afford to wait on this one. Begin now to learn to sell. Put the right systems in place. Hire someone and invest in them. Manage them closely and carefully. And begin to see the results - the sooner you begin - the sooner you will reap some of the goodness that comes with selling something. Remember - nothing happens until you sell something. Get after that today!

Sunday, May 23, 2010

Lessons from the Folks Down Under

I was blessed to spend a week with our HTG21 friends from down under a few weeks ago. As expected - when we boil down the real issues facing partners in ANZ (Australia-New Zealand) it starts to look extremely familiar to those facing partners in the US, UK and Canada. In fact, it is just almost the same list. Here are the challenges I believe face all of us if we want to be ready for the coming changes cloud computing brings to the marketplace.

1. We have to become sales organizations. Gone are the days when technical genius will win - we will have to sell some things before we ever get a chance to show that we even have any technical talent. Nothing happens until the sale is made.

2. We have to learn to manage a sales team. This is not like managing engineers. It is not about utilization, nor is it rocket science. But for many it is very unfamiliar and uncomfortable territory that must be conquered.

3. We have to learn how to market. Sales people only take us so far. Good ones require a solid marketing plan driving opportunities into the pipeline for them to close. That means we need to spend time and money on reaching out to new prospects. It is not magic, nor are vendors going to hand them over to us on a silver platter.

4. We have to learn to build repeatable processes. Margins will shrink and the only game in town will be volume and driving every last dollar from the deals we sell. That happens when we have process, procedure and discipline.

5. We have to build leadership. The days of one person leading an entire company to success are coming to a close. This will require teamwork, practice leaders, C-level partners that can get things done. They don't magically appear - we have to train and build them.

6. We have to build relationships. With vendors, with distibutors, with customers, with other partners - I am convinced the truly successful will have this one nailed. It will be the differentiation that will separate the winners from the rest of the pack.

I didn't need to go to Australia to come up with this list - but by going - it certainly has verified that the challenges are the same no matter where folks are doing business in the IT space. It is just a matter of the size of the issue and where companies are in addressing them.

It is good to be back on the farm again. Now we can tackle the next set of issues and get ready to put the cloud to use!

Wednesday, October 28, 2009

Starting to Think About How to Kick Your Economic Recovery and 2010 Plans into High Gear?

In a piece posted earlier this week by MSPmentor you may have noticed a brief mention of a program focused on building sales organizations that we launched in early October with Kendra Lee and KLA Group. Here is the skinny on this offer. HTG announced a strategic offering with KLA Group focused on sales hiring and lead generation. Two separate series are available exclusively to HTG members starting November 11th. We have heard loud and clear that our members are struggling with sales and hiring. Whether you are hiring your 1st salesperson or your 21st, this is one of the most critical and difficult roles you’ll hire in your company. A successful hire means successful sales growth. I don’t think there is anyone out there that doesn’t want to strive for growth.

Leads are another highly discussed topic at the many HTG peer group meetings I attend. How to get them, how to manage them, how to get results……At HTS, our solution provider organization, we have first-hand knowledge of the guidance and insight Kendra Lee can bring to an IT organization. We engaged with Kendra last year and had outstanding results. That is not the only reason we decided to engage with Kendra and team at HTG. We took the time to talk to Kendra, understand what she had to offer and work with her to build something we felt would benefit our members the most at a reasonable price. Both of these offerings were designed with the needs of the HTG membership, and YOU, in mind.

Learn more and register by clicking on the links below:
How to Hire & Onboard Great IT Sales People
Developing an Executable 2010 Lead Generation Strategy

Are you ready for 2010?

Wednesday, March 19, 2008

The Ultimate Source for Sales Tools

Microsoft has put together a landing page that shows all the sales tools available for us to use in managing our companies and customer relationships. Check it out at http://www.partnersalesresources.com/. This site pulls together literally dozens and dozens of assessments, case studies, demos, implementation resources and other valuable tools. You can select by customer size, sales stage, campaign and several other methods. A very nice way for you to find things that are all buried somewhere on the Microsoft site but that you will never find on your own. Check this one out.

Thursday, March 6, 2008

Sales resources to check out

You are invited to give us essential feedback for a key project being rolled out by the Partner Sales Tools organizations at Microsoft.

Partner Sales Resources aggregates and exposes sales tools and resources for partners to use in their sales cycles to help sell and position Microsoft solutions more effectively. These resources are aligned to a sales process across customer segments, including small business, mid-market and enterprise, with the ability to search by individual technologies and/or aligned to capabilities as part of the Microsoft Infrastructure Optimization (IO) model when applicable.

We will be launching this portal in June, 2008. Currently, we have just finished the 1st stage of development, and have over 100 resources aggregated around core IO solutions. Leading up to launch and on an ongoing basis, we will continue to add resources supporting BPIO and APO, and content aligned to industry solutions. Check out the site and see what you think.

http://microsoft-iaf.inetium.net

Here is another tool under development. Comments and feedback welcome on this tool as well.

https://roianalyst.alinean.com/calculators/microsoft/partner/launch.html