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!
Showing posts with label Service Leadership. Show all posts
Showing posts with label Service Leadership. Show all posts
Sunday, February 13, 2011
Saturday, September 19, 2009
The Power of Peers
This is the final post based on the keynote I delivered at the Ingram SMBA in Charlotte in late August. The topic covers the impact of being involved with peers in growing your business and driving growth and success.
We engage other companies in the channel
The first step in getting value out of peer groups is to start. So often I hear interest, but am always amazed at how few actually do something with that interest, even as simple as going to the website to fill out the short application for HTG. http://www.htgpeergroups.com/ That seems to be the norm with many partners in the IT channel. I hear it often when speaking to vendors. Hundreds drop by their booth and talk about getting started in a relationship only to never hear from them again. The world is run by people who actually show up and do something with their ideas. Those are the successful business owners. That is one of the key values of peers - you get engaged and are continually pushed to not only continue but raise the level of engagement.
We share and give openly
Peer groups are based on the Go-Giver model. It is not about me, but about the others in my group and sharing what I have with them. The more I invest in and share with others - the more I will recieve as part of the experience. In HTG we use the SWIPE model - Share With Intent and Purpose Everyday! It is not about what you can take, it is about what you can give. He who gives the most will ultimately win.
We ask for help when we need it
There is a very common misconception among many business owners - that asking for help is a sign of weakness and should never be done. Nothing could be further from the truth. The more mature a business becomes, the more that leadership team realizes that they don't have all the answers and it is much faster to learn from someone who has figured it out or been there and done that than have to make each mistake or learning on their own. Asking for help and learning from peers is a sign of maturity rather than weakness. So often business owners get into the "can't see the forest for the trees" situation. They are so close to the problem and have experienced it for so long they can't see it clearly and determine a new course of action. Bringing in some fresh eyes with different perspective can often take a problem that has plagued a business for many years and provide a solution very quickly. In HTG we use the SWOT process and take a team of peers onsite to help business owners identify and resolve business problems. But the key - you have to ask.
We share our financials openly
My how this seems to get some excited. There are a variety of thoughts around the sharing of financials and open book accounting - but for peers to make a difference they have to have transparency and access to the real information. That means opening the kimono and letting them see how things really are. The numbers are the numbers. If they are good, they are something to be learned from. If they are bad, they provide important information that can help turn things around. But without them, little can be done to really effectively make a difference in a company. In HTG we use Service Leadership's benchmarking tools to help us report and evaluate our financials. It is a critical tool in our program to help us evaluate our status.
We plan together around business and life
I have written much around this topic, and it is definitely core to the value of peers. Part of the process of planning needs to include having others review and comment on the roadmap you have laid out. In HTG we focus on four plans - business, leadership, life and legacy - and you can read about them in older posts on this blog. But the key is to use peers to evaluate the direction and destination you are heading and make sure it aligns with your stated objectives. You also want feedback on whether the steps you have identified as your action plan and strategies will actually get you there. Without solid planning - you can end up somewhere other than where you intended to go.
We execute together
Execution is the achilles heal for most of us that own a small business. It is not that we don't know what to do, we simply choose not to do it. Having a set of peers that will help drive you toward execution is critical. HTG has a goal of driving business and personal growth through execution. We know that by helping our members execute - we will help them move toward success.
We are accountable
Accountability is one of the misunderstood concepts in business today. It is not a matter of sitting back and waiting for someone to fail to achieve their goals so you can whack them upside the head and tell them to try harder. True accountability is when peers take each others goals on as their own, and when there is a struggle, they come alongside and help make sure each achieves the goals that have been set forth. That is the reality of what true accountabilty is. I am vested in and committed to helping others achieve success. When we do that - everyone wins.
There is no question that there is significant power in peers. It requires a deep commitment and a focus on others rather than self, but once that step is made and a person begins to invest in someone else, the good things begin and continue to make an impact for many years to come. HTG is looking for a few good partners who truly understand the value of peers. If you are looking to be involved in a life changing program, fill out the application and get involved today. Just remember that nothing changes until you actually do something. Thinking about it doesn't cut it!
We engage other companies in the channel
The first step in getting value out of peer groups is to start. So often I hear interest, but am always amazed at how few actually do something with that interest, even as simple as going to the website to fill out the short application for HTG. http://www.htgpeergroups.com/ That seems to be the norm with many partners in the IT channel. I hear it often when speaking to vendors. Hundreds drop by their booth and talk about getting started in a relationship only to never hear from them again. The world is run by people who actually show up and do something with their ideas. Those are the successful business owners. That is one of the key values of peers - you get engaged and are continually pushed to not only continue but raise the level of engagement.
We share and give openly
Peer groups are based on the Go-Giver model. It is not about me, but about the others in my group and sharing what I have with them. The more I invest in and share with others - the more I will recieve as part of the experience. In HTG we use the SWIPE model - Share With Intent and Purpose Everyday! It is not about what you can take, it is about what you can give. He who gives the most will ultimately win.
We ask for help when we need it
There is a very common misconception among many business owners - that asking for help is a sign of weakness and should never be done. Nothing could be further from the truth. The more mature a business becomes, the more that leadership team realizes that they don't have all the answers and it is much faster to learn from someone who has figured it out or been there and done that than have to make each mistake or learning on their own. Asking for help and learning from peers is a sign of maturity rather than weakness. So often business owners get into the "can't see the forest for the trees" situation. They are so close to the problem and have experienced it for so long they can't see it clearly and determine a new course of action. Bringing in some fresh eyes with different perspective can often take a problem that has plagued a business for many years and provide a solution very quickly. In HTG we use the SWOT process and take a team of peers onsite to help business owners identify and resolve business problems. But the key - you have to ask.
We share our financials openly
My how this seems to get some excited. There are a variety of thoughts around the sharing of financials and open book accounting - but for peers to make a difference they have to have transparency and access to the real information. That means opening the kimono and letting them see how things really are. The numbers are the numbers. If they are good, they are something to be learned from. If they are bad, they provide important information that can help turn things around. But without them, little can be done to really effectively make a difference in a company. In HTG we use Service Leadership's benchmarking tools to help us report and evaluate our financials. It is a critical tool in our program to help us evaluate our status.
We plan together around business and life
I have written much around this topic, and it is definitely core to the value of peers. Part of the process of planning needs to include having others review and comment on the roadmap you have laid out. In HTG we focus on four plans - business, leadership, life and legacy - and you can read about them in older posts on this blog. But the key is to use peers to evaluate the direction and destination you are heading and make sure it aligns with your stated objectives. You also want feedback on whether the steps you have identified as your action plan and strategies will actually get you there. Without solid planning - you can end up somewhere other than where you intended to go.
We execute together
Execution is the achilles heal for most of us that own a small business. It is not that we don't know what to do, we simply choose not to do it. Having a set of peers that will help drive you toward execution is critical. HTG has a goal of driving business and personal growth through execution. We know that by helping our members execute - we will help them move toward success.
We are accountable
Accountability is one of the misunderstood concepts in business today. It is not a matter of sitting back and waiting for someone to fail to achieve their goals so you can whack them upside the head and tell them to try harder. True accountability is when peers take each others goals on as their own, and when there is a struggle, they come alongside and help make sure each achieves the goals that have been set forth. That is the reality of what true accountabilty is. I am vested in and committed to helping others achieve success. When we do that - everyone wins.
There is no question that there is significant power in peers. It requires a deep commitment and a focus on others rather than self, but once that step is made and a person begins to invest in someone else, the good things begin and continue to make an impact for many years to come. HTG is looking for a few good partners who truly understand the value of peers. If you are looking to be involved in a life changing program, fill out the application and get involved today. Just remember that nothing changes until you actually do something. Thinking about it doesn't cut it!
Monday, September 1, 2008
Press Release on our Benchmarking Partnership
We have announced a strategic partnership with Paul Dippell and Service Leadership to provide us some best in class benchmarking capabilities for HTG members. This platform will allow us to go deep in the area of financial analysis and enables us to really take our peer program to the next level. Here is the official press release:
Service Leadership, Inc. has been selected by Heartland Tech Groups (HTG) to deliver quarterly performance reporting to HTG members. With over 150 current members, HTG is the largest executive peer group organization for IT Solution Providers. Service Leadership Index(TM) quarterly benchmark reports will enable HTG members to
quickly compare their quarterly financial and operation performance versus 1) their own past results, 2) the results of their HTG group peers and 3) the results for Best-in-Class Solution Providers in their business model category.
Service Leadership enables organizations like HTG to deliver insightful information to a large base of Solution Providers with diverse business models. "We've grown rapidly because our members value their quarterly best practice meetings and the ongoing interaction with other IT Solution Provider executives," said Arlin Sorensen, founder and visionary of Heartland Technology Groups. "We've used a spreadsheet-based financial tracking method to help our members get a handle on their financial performance. However, our members have clearly indicated that they want richer, more actionable reporting. The Service Leadership Index(TM) reports enable us to deliver 'next generation' benchmarking resources for our members. As part of their HTG best practice meetings, members will use the Service Leadership reports to determine how they are progressing quarter to quarter and what specific actions they can take to improve performance."
"HTG's new approach combines peer group interaction with best in class quarterly benchmarking resources," noted Service Leadership CEO Paul Dippell. "It is the most effective way to help Solution Provider executives strengthen their companies and the industry as a whole. It is an honor to work with HTG to help its members leverage their Service Leadership Index(TM) reports to reduce their business risk, grow faster and drive Best-in-Class results on behalf of their shareholders, their employees, and their partners."
We have over thirty HTG members who participated in the Q2 financial benchmarking and it will only grow from here. Take advantage of this opportunity to compare yourself to others in HTG and the industry. It is this kind of information that can truly help you make the needed changes to grow your business.
Service Leadership, Inc. has been selected by Heartland Tech Groups (HTG) to deliver quarterly performance reporting to HTG members. With over 150 current members, HTG is the largest executive peer group organization for IT Solution Providers. Service Leadership Index(TM) quarterly benchmark reports will enable HTG members to
quickly compare their quarterly financial and operation performance versus 1) their own past results, 2) the results of their HTG group peers and 3) the results for Best-in-Class Solution Providers in their business model category.
Service Leadership enables organizations like HTG to deliver insightful information to a large base of Solution Providers with diverse business models. "We've grown rapidly because our members value their quarterly best practice meetings and the ongoing interaction with other IT Solution Provider executives," said Arlin Sorensen, founder and visionary of Heartland Technology Groups. "We've used a spreadsheet-based financial tracking method to help our members get a handle on their financial performance. However, our members have clearly indicated that they want richer, more actionable reporting. The Service Leadership Index(TM) reports enable us to deliver 'next generation' benchmarking resources for our members. As part of their HTG best practice meetings, members will use the Service Leadership reports to determine how they are progressing quarter to quarter and what specific actions they can take to improve performance."
"HTG's new approach combines peer group interaction with best in class quarterly benchmarking resources," noted Service Leadership CEO Paul Dippell. "It is the most effective way to help Solution Provider executives strengthen their companies and the industry as a whole. It is an honor to work with HTG to help its members leverage their Service Leadership Index(TM) reports to reduce their business risk, grow faster and drive Best-in-Class results on behalf of their shareholders, their employees, and their partners."
We have over thirty HTG members who participated in the Q2 financial benchmarking and it will only grow from here. Take advantage of this opportunity to compare yourself to others in HTG and the industry. It is this kind of information that can truly help you make the needed changes to grow your business.
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