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Category: Sales

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How’s Your Customer Focus Journey Going?

 

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If you don’t know what “being customer-focused” means or can’t measure it, you can’t know if you’re doing it.  Many company leaders desire customer focus. Fewer know exactly what that term means. Fewer still can describe specific behaviors to know how far they’ve progressed on a journey toward customer focus. Let’s fix that in this article.

The term “customer focus” is too vague to measure accurately.  Let’s correct our target term to customer-perceived value.  Perceived value is what drives customer decisions. Perceived isn’t just a throwaway word: value only exists in the customer’s mind, and elite organizations don’t take chances with what is/isn’t perceived by a prospect.  Thus, customer-perceived value (I often shorten it to just “value” because there isn’t any other kind) is the core idea — the essence — within the cruder “customer focus”.  Value is the axis around which everything in your organization should move.

Your first task in grading your company’s “customer focus” is to use a measurable target.

Refine your focus to “customer value”.

Value is the desirability of customer outcomes. Customers buy outcomes, not our products and services. What they are willing to pay – value — depends on the desirability of those outcomes. Desirability can be measured in dollars.

As you focus on value, your journey takes place in three domains, described below.

For starters, let’s grade your performance using three levels beyond “average”: Good, Great, and Elite. I’ll be detailing what Good, Great, and Elite look like in three upcoming articles, one for each domain.  If you can’t wait, contact me, because those articles are already (mostly) written.  I’m also developing an assessment tool, which will be on my new website (a shameless tease for coming attractions).

Below, I want to describe the three domains:

1. How well is your organization aligned around Value

Alignment between departments amounts to de-siloing your organization.  I’m all for developing robust expertise in many specialties, but it is an established anthropological fact that silos also create gaps for important stuff to fall through. There is a constant push-pull between specialization and holistic/systems thinking in any organization.  Alignment is the process of purposeful coordination between silos.

Companies usually start by aligning islands of functions…say, sales and marketing…then maybe customer service.  In elite value focus (aka Radical Value focus, the title of my upcoming book) everyone wants to uncover new/better customer outcomes to increase value.

Customer experience (aka CX) management follows a similar track.  Radical not only means everyone delivers value but is constantly seeking additional customer’s -mind insights

2. How Well Do Your People Build, Sell and Price customer value?

This is the domain of customer engagement.  As you progress from “good at sales” to “elite value-based seller”, the skills deepen, and the number of people in the organization participating widens.  I use three key components of the selling process to describe value-based selling:

  • Build: Uncovering and discovering value gaps, expanding them, and causing the customer to envision outcomes of having those gaps resolved.
  • Sell: Aligning the seller’s solution with desired customer outcomes.
  • Price: Facilitating the customer process of monetarily measuring the desirability of outcomes, then conducting a win-win pricing dialogue.

Elite performers, those who have radical focus, are able to execute sales at more profitable value-based pricing.

How Well Do You Enable Everyone in the Organization to Perform at an Elite Level?

Enablement consists of hiring, training, coaching, and content services.  Maturity level increases with the number of services, who is included, and breadth/depth of service. More importantly, maturity increases with transitioning from event focus, to process-focused, to closed-loop process.

  1. Event might mean train and coast, or coaching “burst”, then coast.
  2. Process looks like ongoing training; developing a coaching cadence.
  3. Loops close when coaching drives changed training when sales insights are captured for improved content and product innovation.  The more loops closed, the more elite.

One way the journey starts is when a company realizes that front line sales managers performing as “super salespeople” or “deal saviors” doesn’t scale — or build bench strength — nearly as well as coaching everyone to save their own deals. Another key indicator of maturity is the organization’s discounting process and behavior, from subjective/”squeaky wheel” management to objective, value-focused and tracked/analyzed

Research Backs This Up.

CSO Insights (CSOi) has defined 12 behaviors of great companies (their term: “world-class”). “Great” organizations practice all 12.   I’ve organized the 12 behaviors into these three domains.   (Source: CSO Insights’ 2019 Sales Best Practices Study)

The difference between CSOi’s results and the elite behaviors I’ll be sharing in coming articles: CSOi never even asked about elite behaviors, and thus never correlated elite behaviors to results.  The CSOi 12 behaviors figure prominently in the good and great levels of value focus, but are largely absent from the elite level.

  • Do you want to win more opportunities than most? CSOi’s results show that practicing these 12 behaviors correlates strongly to that type of outcome.
  • Do you want to win with higher customer preference?  CSOi didn’t ask; their results are silent here. It neither corroborates nor refutes that higher perceived value correlates with higher preference.  Other research (and common sense) will back this up, though.
  • How about winning with higher value, driving deeper customer relationships? CSOi didn’t ask.  Other research declares this a worthy pursuit, however.
  • Selling at higher win-win prices?  CSOi didn’t ask. There’s a sad story, here. Ask me about it sometime.

I Want More for You.  Radically Elite Value Focus.

These are the three domains for a journey to elite value focus.  In follow-on articles, I describe what makes up good, great, and elite performers.

Comment below, like, and/or share. As I said, reach out if you have more in-depth questions, or read the next three articles.

To your success!

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Best Practices Entrepreneurship Human Resources Management Negotiations Sales Skills Women In Business

“How To Combat The Problem Of Blind Loyalty” – Negotiation Insight

“People demanding 100% loyalty want to blind you. Never be blinded by someone else’s light, less you taunt darkness.” -Greg Williams, The Master Negotiator & Body Language Expert (Click here to Tweet)

 

 

Click here to get the book!

“How To Combat The Problem Of Blind Loyalty”

Are you loyal? More importantly, will you be loyal to only me? Those questions were asked of someone with power by a person with more power. The response was, I’m devoted to the oath I took when I became a member of this organization. The implication was, I won’t be loyal to an individual – I’ll be dutiful to the institution. The person making that statement was fired shortly after that. The person asking the questions was the one that initiated the firing. And he would later demand that others be loyal to him too. He’d created a problem – one of perception. Later, it would ensnare several individuals under his charge. And his demand for loyalty would eventually be exposed as his means to deal in more nefarious behavior. Houston, we have a problem!

Loyalty is good in most cases. But, when those in power demand blind loyalty, people with power can stray from a righteous path. And problems can exist in any environment when there’s too much blind obedience. When that occurs, as someone in a position of authority or one challenged by those insisting that you have blind obedience to them, you must be prepared to combat unchecked loyalty. To allow it to roam free could be akin to walking blindly down a dangerous path that leads to misfortune. Don’t fall prey to the allure of blind loyalty. Here’s how to combat it.

 

Blind Loyalties:

Challenges

Unbridled allegiances can lead to unchecked power. And unlimited power can lead to unrealized potential. Because those with leadership abilities will never have the opportunity to rise to their full potential, less they pose threats to the leader. So, they become checked out of fear of the leader’s retribution. And that permeates the myth that adherence is better for those that submit to it.

 

Reckless Endowment

Power is an aphrodisiac. Another concern that institutions should have is what becomes of a leader’s power when he has too much of it. Best case scenario, he uses that power for the improvement of those that he represents – in most cases, that’s not been what history has proven. Instead, a leader with too much power has feathered his nest and those that remain most loyal to him. And that creates an infectious environment amongst those that continuously strive to be the leader’s favorite. That occurs, while the inner backstabbing slowly erodes and robs the life’s blood of the future from the institution. Be mindful of those with too much power and how they use it. It can be the source of good times or those that lead to destruction. The weight is the balance of when either occurs and the length of time it lasts.

 

Stifles Imagination

Concentrated power can stifle creativity. When a select few hold power, those with that power seek less input from outside sources. They know what the best thoughts are – because they believe their opinions are best for the masses. And when it comes to planning, they only consider their plans. Thus, they don’t seek out or welcome additional information from anyone outside of their circle. They don’t want any info competing against theirs that’s out of alignment with their strategy. There’s a high cost to pay for a lack of diverse input. And usually, those lower in the ranks of an organization are the ones to bear the burden of that cost.

 

Confronting Requesters of Blind Loyalty

Everything is a negotiation. And if you neglect that thought, you forego powers that you might otherwise realize. If you’re to maintain blind loyalty to anyone, it should be to yourself. That’s not to say that you shouldn’t be loyal to a cause, a purpose, an institution, or even a person. It’s to say, before committing to someone’s behest for loyalty, understand what it means. Understand where your commitment might lead you and what it’ll mean for your future. If you follow anyone’s mandates without questioning, you could end up at a dead-end street with nowhere to go except backward. That means you and those that you should have been supporting will have lost valuable time and your sense of purpose. And wasted time is time never regained. Always think before you commit to anything or anyone’s request.

 

Reflection

The general that wisely chooses the field of battle wins before the fighting starts. Thus, always be aware of the mindset of those that demand complete loyalty. In so doing, they seek to consume concentrated power within a small container – themselves. And when it comes to absolute power, absolute power rules without leaving a void for dissension. Without discord, no organization can sustain itself. While chaos can reign inside of dissent, the delicate balance lies in getting benefits from disputes versus suppressing the growth that could otherwise blossom. Thus, curtail the chaos. It will lead to confusion, which will lead to disruption. And yes, the powers to be may check disorder for a while, but eventually, it will happen. It has done so throughout history’s rule in corporations, communities, and countries. And when it does so, it has been the beginning that’s lead to the unraveling of the entities that were once powerful.

Never trust blindly those that seek 100% loyalty. If you do, it could be to your jeopardy. Even when asked to do so, you may close one eye but don’t close both. Keep an eye open so you can see the light that might allow the perception of a more realistic reality … and everything will be right with the world.

 

 

Remember, you’re always negotiating!

 

Listen to Greg’s podcast at https://anchor.fm/themasternegotiator

 

After reading this article, what are you thinking? I’d like to know. Reach me at Greg@TheMasterNegotiator.com

 

To receive Greg’s free “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here http://www.themasternegotiator.com/greg-williams/

 

 

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Best Practices Entrepreneurship Investing Management Marketing Personal Development Sales

Using Value Networks to Grow Your Business

 

The craft of sales is one of increasing the overlap between what outcomes a customer desires for themselves, and what outcomes the seller’s offer can deliver.

Increasing that overlap requires the seller to:

  1. Conduct insightful discovery into the customer’s business and personal situation to increase the range of desired outcomes.
  2. Identifying an exhaustive list of seller’s capabilities, then translating those into customer business outcomes.
  3. Articulate unmet value gaps to product/service innovators, who develop high-impact differentiation.

Most commercially available sales training addresses the first item. Almost all leave the second item up to an internal product training function. By “leaving it to the product trainer”, I mean ignore completely. No good framework to fill this gap has been introduced.

Introducing the Value Network.

The Value Network is a great tool.  It:

  • Captures deal-winning gold from top sellers for use by the whole team
  • Helps everyone in B2B sales teams sell more widely and deeply
  • Ramps new sellers up more rapidly
  • Guides more impactful executive conversations
  • Shapes more impactful marketing
  • Informs superior new product idea generation
  • Helps non-sales, but still customer-facing roles uncover new value.
  • Serves as a central point of truth for competitive positioning.
  • It is easy to learn and intuitive to use.

…so why don’t you know what a Value Network is?

A value network diagrams all of the possible customer outcomes your differentiation can drive for a customer. The diagram at the top of this article is a partial value network: it illustrates the client outcomes from adopting the kind of value-focused culture I propose in my upcoming book, Radical Value.

Building A Value Network

Start by describing an area of differentiation. In the example above, I promote building a company culture focused on value to the customer (yes this is different from many organizations, surprisingly.  Companies focus their cultures on lots of other things when value is what they should use as the hub around which everything else rotates).

From that differentiation (drawn above in a rectangle), describe all of the customer outcomes that result…and the outcomes those outcomes deliver, and so on. Draw those customer outcomes in ovals with arrows representing cause/effect (you’ll notice a few bidirectional arrows on this diagram, which shows mutual reinforcement loops) The resulting network represents all of the potential value your differentiation could deliver to a customer.

In the current vernacular, these might be called themes for value messages.  That is, they could be likely hypotheses that one could deliver to a prospect (or use as a justification for a meeting) – but then validate through dialogue.

For this article, I’ve outlined in blue where the use of a value network fits in a value-focused culture.  It enables or drives more insightful business discussions: by not just salespeople, but every person who comes in contact with your customer.  It clarifies innovation in business cases. It

Next Step:  Make Each Outcome Personal.

To keep the diagram above clean, I didn’t perform this step, but here’s what to do next.  Next to each oval, list the customer personas most likely to desire that outcome.  Here’s an example in closeup from a different value network:

Notice that Facilities is likely to find value in both of these outcomes, but affected department managers are only likely to care about one of the two.  This targeting analysis guides meeting plans, sales conversations, account-based marketing content, product innovation, and more. It also helps guide executive selling efforts by identifying executive-worthy conversations.

Making the Complex Simple

Building customer-perceived value is the selling behavior that most affects customer buying decisions.  Value is defined as the desirability of customer outcomes and is built off of differentiation. A Value Network is a tool that articulates all of the possible business outcomes your offer could produce for a customer.

Depending on what it is your company sells (product, service or solution), being able to efficiently identify all customer impacts is where the great sales conversation training (the one you’ve probably already invested in) begins. In my work with hundreds of B2B companies, I can confidently tell you that there is room for improvement in refining your “product” (which includes service) training. Value Networks can help everyone involved craft a simple set of training, content, and other materials guaranteed to improve the quality of your customer conversations, supporting higher win rates at more mutually-beneficial prices.

Here’s An Exercise For You to Apply This Article

The diagram at the top of this article was purposely left incomplete. Extend it using the bullet point statements under the section titled “Introducing the Value Network” plus any others you can think of. Now, study the bigger Value Network and consider what each of these outcomes means to you in your role: both professionally and personally. What would developing a company-wide focus on customer value do for you and your organization?

Comment below, or contact me if you’d like to learn more about this simple, powerful tool.  Or get on the waiting list for my upcoming book, where I’ll go into even more detail on how-to and use of Value Networks.

To Your Success!

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Best Practices Entrepreneurship Human Resources Management Negotiations Sales Women In Business

“Negotiation Crisis Intervention Behind The Scenes Trust Fear Factor” – Negotiation Tip of the Week

 

“A crisis is easily averted when you negotiate in a way that prevents it.” -Greg Williams, The Master Negotiator & Body Language Expert (Click to Tweet)

 

Click here to get the book

 

 

“Negotiation Crisis Intervention Behind The Scenes Trust Fear Factor”

 

The opening scenes in his mind were calm and serene. The next thing he knew, silent alarms were summoning his attention. Instantly, he experienced fear. He instinctively knew that would be a factor in what was to come. And he wasn’t sure if that stemmed from his perception of a crisis in the making or the intervention that would be required to squelch it. Regardless, he knew trust would play a factor in the outcome – a negotiated outcome that he’d engage in whose result he could not gauge.

When you’re involved in any activity, you’re negotiating. That’s especially important to remember when you’re confronting crises or events that might be leading towards one. You should adhere to the following factors to enhance your chances of addressing challenging situations successfully.

 

Influence Factors:

 

Fight for power

Crises usually occur when there’s an unequal balance of power. Thus, struggles arise between forces to bring power back to the point of equilibrium. Then, harmony resides. But it only does so for the time it takes one side to become dissatisfied with the power-sharing arrangement. And that leads to another round of fractions between those that share the balance of power. Therefore, always be mindful of where your involvement finds you in the struggle for power. Therein will lie your opportunity to avert or incite a crisis. The action you take depends on what side of the equation you’re on – seeking more power or not willing to relinquish it.

Trust

Question: To what degree does trust become a factor in the influencing process during a crisis intervention? Answer: An entity seeking to create an agreeable and bonding resolution must first establish that foundation on trust – stated more succinctly, it’s everything. And, if trust teeters on uncertainty or there’s mistrust, the pillar to maintain a good relationship between opposing parties will stay in jeopardy. And that will hamper the cohesiveness of long-term agreements. Suffice it to say, trust when possible, but be keenly aware when you’ve extended it past its expiration. Sometimes, influencing a situation means pushing back on those that are not trustworthy.

Fear

Fear can be a powerful tool in a pre-crisis environment and during crisis intervention. It can be used as leverage to manipulate an opponent’s action to move in a more positive direction. It can also be used to entice your members to stay aligned with your cause (e.g., if they win, all of you will be worse off). You should also be cautious as to how you wield the tool of fear. Do that by having a calculated expectation of the outcome it might produce on your target. If the target responds in unexpected manners, and you didn’t consider them, you run the risk of losing control of the situation. And that could leave you impotent to address other aspects of the engagement. Therefore, when considering the implication and implementation that fear’s usage will have on a situation, the word to exercise is caution.

 

Scenes

When considering the role influence will have when you’re negotiating in a crisis or intervention, think of the situation in stages. Break the interactions you’ll have with the opposing party into segments. Assess how you’ll act and react in a particular phase. And assess how the opposite side might respond to your positioning – determine what mannerisms they might adopt and how you might react to that, too. Your goal is to break the pieces of the engagement into manageable segments. That effort is geared to give you the most significant opportunity to move the talks in the direction that’s most favorable for the parties involved.

 

Bonding Questions

As most astute people are aware, trust and fear play a vital role in the bonding process. Thus, both of those factors are potent forces. To add to your powers, ponder how you’ll bond with other parties by considering the following questions.

  1. Should you bond with the other party?
  2. What ramifications might come about as the result of your bonding with some members that oppose you versus others in the opposition’s fold?
  3. Can the bonding process with certain sects further your goals faster than with others?
  4. When is the best time to engage in the bonding process?
  5. How will you measure the effectiveness of your relationships?
  6. Should someone of stature precede you to set the stage to enhance your bonding efforts?
  7. At what point might you break a bond to make a point?

Those questions, along with others you think of, are crucial queries to ask yourself. The answers will allow you to develop a cohesive strategy that can be used to further your activities, engagements, and goals.

 

Negotiation Strategies

Depending on the severity of the crisis you’re dealing with and the stage that it’s in, you might want to adopt the following negotiation strategies to improve your plight.

 

Block and Bridge

This is a tactic that allows you to promote your message and position while diluting the other party’s efforts to enhance his own. It’s accomplished by acknowledging the other party’s perspective but not allowing it to be fully heard or seen. Thus, if someone were to say, “we’ve been making these demands for the …”. You might cut them off after they said, ‘the,’ and say, “We understand time has passed. There have been mitigating circumstances that have prevented us from adopting a policy/plan, etc.”

By engaging in this manner, you will have stopped his efforts to project his position in the public domain. Instead, you would have promoted your point as the dominant thought that others should lend their attention. Block and bridge is an excellent way to steal the spotlight and allow it to shine brighter upon your plans for improvement.

 

Pincer Move

A pincer move, in a negotiation, is used to convey the message that you have the opposition surrounded by those possessing differing opinions than his. The implication being, succumb to the superior force – me/us that confronts you.

Marshall as many opinions and allies as you can that are aligned with your message, to refute those of the other side to implement the strategy. And be sure that none in your camp are shills posing as your supporters when, in reality, they’re inside your encampment as spies for the other side. You want the opposing party to feel isolated and devoid of hope in the quest for their plans. That will serve several purposes. One, it will sow doubt about how much longer they should continue down their current path. Two, it will create fractures within their ranks. And three, it will dilute their strength, which will make them a less potent foe.

Feigning

Many years ago, Muhammad Ali fought George Foreman. Foreman was known for his power, not his stamina. Ali realized that he could not go toe-to-toe with Foreman less he heightened the chance of being knocked out. So, Ali adopted the rope-a-dope, a strategy meant to allow Foreman to wear himself out by pounding away at Ali. Ali’s ploy was to draw Foreman into thinking Ali was ‘out of gas.’ And the deception worked for Ali, who went on to win the fight. Later, someone stated that underestimating Ali was the mistake of a lifetime.

In any negotiation, sometimes, your efforts can be enhanced if the opposition is unsure of your strategy – it’s even better if they think you have no plan. Thus, when dealing with a crisis, release information strategically about your position. To the degree you can, don’t place it in mediums that you can’t control. And when other sources attempt to reposition you, be quick to thwart their efforts. Adopt the persona that’s best per how you wish others to perceive you, your team, your efforts. And, like Ali, you can pretend acceptance of one position while holding in reserve the one you wish to implement.

Reflection

There are many factors that you should consider before, during, and after a crisis. The way you handle each phase will determine what occurs next. Thus, you must be aware of where your rhetoric and actions will take you per the procedures and posture you adopt in one stage and the impact it’ll have upon the next. By implementing the insights mentioned, you increase your odds of addressing crises better. That will place you in a more harmonious and prosperous environment. And everything will be right with the world.

 

Remember, you’re always negotiating!

 

Listen to Greg’s podcast at https://anchor.fm/themasternegotiator

 

After reading this article, what are you thinking? I’d like to know. Reach me at Greg@TheMasterNegotiator.com

 

To receive Greg’s free “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here https://www.themasternegotiator.com/greg-williams/

 

 

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Best Practices Entrepreneurship Human Resources Management Negotiations Sales Skills Women In Business

“What Harm Is Deception If It Protects Truth“ – Negotiation Tip of the Week

“Don’t argue with those that traffic in deception – they have alternative truths. When you must, only deal with them to avoid harm.” -Greg Williams, The Master Negotiator & Body Language Expert (Click to Tweet)

 

“What Harm Is Deception If It Protects Truth“

 

There’s an adage that states, liars’ figure, but figures don’t lie. In a puritan environment, that may be true. But that’s not where we reside. The environment we live in is one where liars figure to make their deception align with the truth. In so doing, some see themselves as protecting facts as they would want others to perceive them. By any other name, the potential harm they cause is called deception. From their perspective, the question, what harm is deception if it protects the truth, is answered based on what they’re protecting and whose version of reality one wishes to promote.

When dealing with people that practice deception, be wary of their intent. The truth will be what they’re attempting to conceal. Once you’re aware of what they’re trying to hide, only then can you deal with hidden problems. To do so otherwise could be trading in false transactions. Consider the following to assess and determine what path to adopt when dealing with those that traffic in deception.

 

Credo:

What’s the credo of those involved?

Whether it’s the military’s, leave no man (person) behind, or police officers’ blue wall of silence, the credos of those institutions influence the mindset of its members. And it suggests how they should respond or act in certain situations. Therein lies the hidden ground for the sly shiftiness in which deception can be rooted. Therein also lies the mindset that can promote deceit. Thus, the credo of an entity should be your starting point to uncovering the truth about the primary values held by those institutions. By following that thought, you’ll increase your understanding of what motivates someone’s actions.

 

Power Alignments:

  • What are the power alignments? In every organization, power alignments exist. You should explore those alignments. That’ll give you insights about how you might address those powers, and shed light on what you may well have to overcome to avert or defeat them.

In some cases, when a crisis is in progress, depending on the strength of the alliance, the cohesiveness of the coalition can be deflated by verbally confronting the group’s leader. At other times, it may be more prudent to pick off lower-ranking members of the alliance to isolate the leader. In either case, take note of a power’s make-up to determine how to compete against it.

 

  • What sources of power are behind deceit? That is a pertinent question to pose because it addresses the undercurrent of why deception may exist. Consider also asking yourself what you’re not seeing or what’s not being voiced by your adversaries.

Observing what’s shown and said can be less valuable than what’s not shown or mentioned. While there may be factions within a power base, there may also be ideological fractures or other lines that bond it’s members to one another. If you’re aware of those factions and the dividing points that separate them within their alignment, you’ll have other aspects from which to chip away at their power sources.

 

Juking Stats:

  • Who is protecting whom, and why? You may be familiar with the phrase “alternative facts.” It’s a paradigm stating that things may not be as they appear, or one that suggests you should observe a situation from another point of view. In either case, some in power will juke stats to reflect a perspective that’s more favorable to their viewpoint. In most cases, that’s done to endure one’s self to others and enhance that person’s following, which extends his influence.

Be concerned when you partake of someone juking stats. They’re attempting to alter reality. In so doing, they’re trying to change your perspective from what you perceive reality to be to what they would have you believe. Therefore, when confronted by such situations, ask yourself, are you going to trust your truthful eyes or their lying mouth. The answer to that question will lead to enlightenment or one that could lead you deeper into a demon’s pit – which later exposes the beast of despair that lies there. Choose your decision wisely.

 

  • What will members of a group do to protect one another? As mentioned in the section that discussed credos, some members of an organization will go to extremes to protect the leader of the group or to those that they pledge their loyalty. The degree to which that’s applied can also indicate the strength of the leader and what he demands of his followers.

Times have occurred throughout history when followers committed unsavory acts to appease a leader. Thus, based on the promises of the leader, some have willingly given their life for the better aftermath that they were told awaited them. When observing a crisis in the making, seek the lessons of history and understand the psychology behind alliances. That will be the key to unlocking a member’s will, which will give you a better perspective about why some will do anything and perform any act to stay in good favor with those that lead them.

Always assess the passion and commitment that members of any organization have for their superiors. Because it can become the illumination that shown brightness upon an otherwise hidden entanglement in which deceit may lie. And therein will lie why some will juke stats to keep their followers aligned with them to perpetuate their leadership.

 

Reflections:

Most of the time, people deceive others for protection. And that protection is usually based on the embellishment or furtherance of one’s self-aggrandizement. Therefore, the more insight you have about those that oppose you and their sources of motivation, the better you’ll be at confronting and averting crises. That also means that you’ll become better positioned to curtail crises in their early stages. That will give you greater control within your ranks and in those that oppose you … and everything will be right with the world.

 

Remember, you’re always negotiating!

Listen to Greg’s podcast at https://anchor.fm/themasternegotiator

 

After reading this article, what are you thinking? I’d like to know. Reach me at Greg@TheMasterNegotiator.com

 

To receive Greg’s free “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here https://www.themasternegotiator.com/greg-williams/

 

 

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“You Are Not Worthy Of Being Here Promotes Defiance” – Negotiation Insight

“Your imagination promotes future value. When considering value, consider the values of others.” -Greg Williams, The Master Negotiator & Body Language Expert (Click here to Tweet)

Click here to get the book!

“You Are Not Worthy Of Being Here Promotes Defiance”

 

You tell me I don’t belong here. When your first forefathers arrived, others told them they didn’t belong. Those in authority dismissed them as being “less than.” And that invoked their defiance. Thus, they fought for the right to be recognized as being worthy of belonging and being accepted. So why do you state through your words and deeds that I don’t belong here? Like your forefathers, I and those like me will fight you for what we see as our right to be accepted – our rights to share and partake of the bounty in this land we call home.

If you suppress me, that will only provoke defiance in me. And one day, I’ll rise against you. If you choke the life out of me, I will die. But eventually, those like me, that like me, will fight you. They will exact my vengeance against you and those like you.

Eventually, you and others will hear my voice – even if you attempt to silence me. Because everything changes and the turnarounds that brought you into power will someday sweep that power away from you. So, the question you might ask yourself is, how do you wish to be treated when you’re the one hearing, you don’t belong here.

Those were words offered as a response by someone that was subjugated by the powers to be. Continue reading to discover how you can avert the travails of suppression and avert traveling on a road that could lead to despair.

 

Whether it’s a phrase like “you people,” “you don’t belong in this neighborhood,” or “go back where you came from,” such phrases can serve as triggers that incite resistance. And those that use such verbiage should be mindful of the powderkeg they may ignite. Because such verbiage can rile others to resist the powers to be, and lead to a revolt. And revolutions bring about a form of change that those in power find it difficult to control and accept.

 

Mindset:

  • Authority’s view – We have the power. Others must obey us. That’s the mindset that some with supremacy possess and display when addressing those that they view as not being at their level or beneath them. It’s a mindset that seeks confrontation because when challenged, it must be defended to sustain itself. And it’s vulnerable because the slightest perceived provocation can set it into a defensive posture. That defensive posture may cause others to become defensive. Then, the mindset of everyone becomes encased in a state of protectiveness, which reduces the possibility of averting a crisis or improving a situation.

 

  • Minority’s view – People that have been badly treated in the past by those in authority are sometimes overly sensitive. And their perspective becomes self-affirming when they focus on the wrongful deeds thrust on those of their kind in the past. Thus, a particular phrase, a perceived provocative look, or someone thought to have authority walking too close to them while they shop “can set them off.” Why? Because triggers occur within them. Triggers that bring to mind past infractions that evoke the feeling of being perceived as less than worthy of being or doing what they’re undertaking currently. And the result is, they feel the need to confront the perpetrator – they feel the need to defend themselves for not only the current aggression but for those that have occurred in the past. They’re pushing back on the accumulation of past grievances to amend perceived wrong that has lasted too long. If you’re someone that cuddles such thoughts, be aware of them. That impacts the way you see and interact with others. Also, be mindful that everyone that appears to be an authority figure is not out to torment you.

 

Fear vs. Openmind:

In most cases, when people oppose one another, apprehension exists. Instead of fighting those that you see as not being like you, embrace them, their views, and their opinions. Do so by exploring the question, what are you afraid of, and why do you fear it? Even if you eventually dismiss someone’s premise, doing so will strengthen, not weaken you. Being openminded may create a paradigm shift that sheds a different perspective on how to interact with those you view as foes. You will have expanded your thought process, which only leads to better decision making.

 

Reflection:

Consider all the people that loved us into being here. Those were the generations that preceded us. Their views and thoughts still influence the way we think – even though they may have departed us decades or centuries ago.

When you ignore the thoughts, perspectives, and opinions of others, you may forgo a more significant value that such might have added to the benefit of society. As long as people look at others as being ‘less than,’ everyone’s environment and opportunities will be less than they could have been. To prevent that, be more open to accepting those that don’t share your views. Be more willing to embrace the opinions of those that have ideas that differ from yours. And keep an open mind about being openminded. In so doing, you’ll see a broader spectrum of the positive things that could be versus that which might threaten you. If you let that open-mindedness serve as your catalyst to a better tomorrow, better tomorrow’s will await you … and everything will be right with the world.

 

Remember, you’re always negotiating!

 

Listen to Greg’s podcast at https://anchor.fm/themasternegotiator

 

After reading this article, what are you thinking? I’d like to know. Reach me at Greg@TheMasterNegotiator.com

 

To receive Greg’s free “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here http://www.themasternegotiator.com/greg-williams/

 

 

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“Negotiator – Motivating People Can Be Easy – Just Give Them Hope“ – Negotiation Tip of the Week

Motivating people is easy. Just infuse them with hope, and give them the tools to believe in themselves. Then, provide support by showing them how to use those tools. -Greg Williams, The Master Negotiator & Body Language Expert (Click to Tweet)

“Negotiator – Motivating People Can Be Easy – Just Give Them Hope“ – Negotiation Tip of the Week

 

When implementing policy, strategy, or procedures that you want people to adopt, you must motivate them. You can accomplish that by giving them hope that your request is in their best interest. If you don’t, or they don’t see value in following your proposition, motivating them will be daunting, if at all possible. Embrace the following insights to get others to support your requests, and they will be quicker to accept the actions you set for them.

 

Mindfulness:

Be mindful of how you’re attired, your mannerisms, and the words you use when speaking. Because others will make assumptions about you and your motives based on the subliminal messages they receive. And that will impact the willingness they extend for you to lead them or avert your directives. To that end, understand what’s proper for the environment you’re in and comport yourself appropriately.

 

Awareness:

Unless you expect the unexpected, you’ll never observe it. Therefore, be keenly aware of those that plot in secret. Because they work in darkness for a purpose. And more than likely, that purpose won’t serve you.

 

Decorum:

During interactions with adversaries or those aligned with you, be aware of the silent signals you send via your body language. Your slightest grimace at an inopportune moment will momentarily flash your disdain about a subject’s discussion. And that can sway someone’s perception of your likeability. If the likeability factor is missing or contrary, you’ll have a harder time trying to convince someone to follow you.

Even if someone assails your position, keep your cool. That is, keep it unless you’re in an environment where such a slight is expected to be met by a stern rebuttal or some other action that allows others to think, I would have done the same thing. Your task is to make others see themselves in you and your position. That will be the allure that attracts them to bond with you.

 

Replicate Online And Offline Platforms:

Have you observed how social media platforms get people to engage with others? They do so by letting you know when others have tagged you in a post, picture, or article. Thus, the more people involved in a thread of information, the more nudges you’ll receive about the thoughts and comments of others that may include you. That procedure impacts your curiosity. Natural inquisitiveness will heighten the desire in most people to investigate what someone has stated about them. Because they want to know what others are saying – especially if it may be salacious.

You can use the same process to move people to embrace your ideas and direction. To do that, filter the information that others see by feeding them the positive statements that others are making about your position. The more positive comments people see, the more swayed they’ll become to accept your view. In social media, you can use the platform that’s easiest to control. But social media is not your only controlling point to consider.

You can use any platform to manage your message. Thus, it doesn’t have to be social media. It can be something as simple as posting flyers in prominent places that depicts positive sentiments about your position. All you have to do is have control over the process and what people see. That will influence the way they think.

 

Digital Trace:

There’s a plethora of digital information that awaits your uncovering. And if you uncover savory nuggets, that’s another way to shift the perspective that others have of your adversary. If you choose to use such information to advantage your position, before doing so, make sure that information will move your opponents’ supporters. And remember that a smart foe will attempt to gather information about you from digital trace information too. So, keep yourself away from controversy today that might negatively impact someone’s perception of your character tomorrow.

 

Getting People To Follow Your Request:

There are three psychological factors that you must activate when coaxing others to accept your directives. If these forces are not employed, your subjects will be less likely to embrace your offerings.

Deep Psychology:

  1. Motivation – The person must want to perform the behavior.
  2. Ability – The person perceives themselves to have the ability to address your request and view it as not being difficult to do.
  3. Trigger – You must give a call to action and remind them to address the behavior you wish them to embrace.

To be effective, you must use the three actions mentioned, motivation, ability, and trigger in the same request. The formula is, behavior, equals motivation, plus ability, plus a trigger. Therein will lie how you can use psychological motivators to entice more people to embrace your requests or demands.

 

Using Other People’s Words:

To enhance your position, consider using the words of others about the direction you wish people to adopt. You can couch those words from a positive or negative perspective. As an example, if you want people to move closer to your position, cite the words an influencer used to talk about a stance that’s similar to yours. If seeking to decrease the probability of people challenging your opinion, recite the words of doom that a prominent figure made. In either case, you can strengthen your point by using third-party sentiments. Thus, ponder this, and other tactics you can employ, that’ll influence the thoughts of those you wish to impact.

 

Reflection:

When people speak, a silent rider accompanies their words, which conveys hidden information about their inner thoughts. And those silent signals can undermine the intent their words were meant to report. Hence, what someone says can be perceived to have different meanings based on the words they use, and their mannerisms. And that impacts the perception that others have of them.

Always keep the insights mentioned in mind. By doing so, you’ll be better positioned to entice people to follow, embrace, and accept your leadership and directions … and everything will be right with the world.

 

Remember, you’re always negotiating!

 

Listen to Greg’s podcast at https://anchor.fm/themasternegotiator

 

After reading this article, what are you thinking? I’d like to know. Reach me at Greg@TheMasterNegotiator.com

 

To receive Greg’s free “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here https://www.themasternegotiator.com/greg-williams/

 

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“Don’t Joust When You Want To Project Powerful Trust“ – Negotiation Insight

“Trust is like a shimmering light. It appears one moment and gone the next. To keep it illuminated longer, limit those that would keep you in the dark.” -Greg Williams, The Master Negotiator & Body Language Expert (Click here to Tweet)

Click here to get the book!

“Don’t Joust When You Want To Project Powerful Trust“ – Negotiation Insight

“Trust is like a shimmering light. It appears one moment and gone the next. To keep it illuminated longer, limit those that would keep you in the dark.” -Greg Williams, The Master Negotiator & Body Language Expert (Click here to Tweet)

Click here to get the book!

“Don’t Joust When You Want To Project Powerful Trust“

How do you know they’ll trust us? I don’t know. But, if they sense we’re willing to follow their lead, not joust with them, and project an open, honest, and powerful desire for them to trust us, I believe they will. So were the words exchanged between two members of a team that desperately wanted their counterparts to trust them. They needed to be trusted because, without it, the chances of a successful outcome would become significantly diminished.

When engaging people, trust plays a pivotal role in the outcome. And, since that leads to faith, which impacts confidence, which affects expectations, the degree you’re trusted determines how far they’ll follow your requests and mandates. Without that, you risk standing on the proverbial desert of isolation, waiting for an oasis that most likely will never occur.

As you reach to others to enhance your efforts, consider the following factors to heighten the probability that they’ll work with you.

Degrees of Trust:

The characteristics and background of the people you attempt to control will determine the amount of trust they’ll grant you. If they come from non-trusting environments or have had poor relationships with authorities in the past, more time and effort will be required to solicit their trust. On the other hand, if you have a reputation of someone that others have trusted in the past, less effort will be required. And therein lies your measurement as to the effort you’ll spend in obtaining the trust needed to get others to believe and accept what you request of them.

Reasons For Broken Trust:

Entities having cross purposes can be one reason trust is not established or broken. There can be a host of other reasons too. To enhance your efforts, think about the following ideas that might impact the trust factor in your efforts to implant a plan or to get others to bond and embrace your directions.

  • Combativeness – Some people shrink when put in combative environments – they can become absorbed and consumed by it. And yet others will thrive in such situations. You should know the setting that’s best suited to motivate those you deal with based on your surroundings. In some circumstances, you can heighten someone’s abilities for a short time by placing them in stressful situations. At other times they may wither. Always be mindful of the position you put people in and how long you keep them in it.
  • Subjugation – Everyone is not a leader. Thus, some people are more comfortable being followers. Knowing the mental makeup of your allies and those that combat your efforts should be the cornerstone of any plan you create. Incorporating this insight into any strategy you devise allows you to assess and determine how you might manipulate the powers to be. That will enable you to enhance your efforts and erode the forces that oppose you.
  • Hard/Soft hand – History has taught us that force is required to overwhelm a relentless foe. And history has also shown that rebellions can occur when power reigns too heavy-handedly to suppress the desires of the less fortunate. Therefore, when you have authority or supremacy, you should be careful about how you use it.

If others view your edicts as being too harsh, you can entice inner resurrection amongst those that prowl to subvert your efforts. If your approach is considered too soft, you can appear weak or noncommittal for the outcome you’re chasing. Like most things in life, striking the right balance between being too hard or soft is the position you should pursue. That’s the sweet spot that will enable the possibility of you achieving the best outcome.

Fitting The Pieces Together:

Control Jousters – In every environment, people jockey for power. And the factions that stem from those activities can weaken your position and drastically impede your progress – especially if you need a united alliance. So, be mindful of underlings that seek power for their self-aggrandizement. Do this within your forces and your opponent’s ranks too.

Some individuals may want clout to feed their ego, while others may wish it so that others don’t view them as a bottom-feeder. In either case, you can use such forces as leverage to enhance your efforts, or thwart those of your adversaries. In the latter instance, incite those in the opposer’s camp to vie for power, which will pit them against one another. While they’re confronting inner chaos, use their fray to weaken their most robust components by enticing other factions of there’s to align with you. Be careful how you employ this ploy within your ranks. If done ineffectively, you may incite an uprising in your midst.

Reflection:

Anyone can be king-for-a-day. But if you want to be a leader that others will eagerly follow, you must project a powerful trust factor. Doing that will enhance your persona. It will silently state that you’re someone that has influence and someone worthy of leading others. Without those factors, others may follow your lead for a short time, but you’ll have challengers that’ll quest to supplant your leadership. Heavy will be the head that wears the crown. And that head will be yours.

So, inspire others by showing them that you’re a reckoning force. That force can be to their advantage or their detriment. Hence, display firmness when required and at other times, be lenient. Regardless, in the end, to get others to abide by your wishes, adopt the demeanor that’ll move them the most. The one constant factor in that is trust. Use it wisely … and everything will be right with the world.

Remember, you’re always negotiating!

Listen to Greg’s podcast at https://anchor.fm/themasternegotiator

After reading this article, what are you thinking? I’d like to know. Reach me at Greg@TheMasterNegotiator.com

To receive Greg’s free “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here https://www.themasternegotiator.com/greg-williams/

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“Negotiator – How To Overcome Non-Compliance For Better Improvement” – Negotiation Tip of the Week

“To feed improvement, starve non-compliance.” – Greg Williams, The Master Negotiator & Body Language Expert (Click to Tweet)

Click here to get the book

 

 

“Negotiator – How To Overcome Non-Compliance For Better Improvement”

Well, I guess that’s it – we lost. No, we didn’t, was the reply. Our opponents offered us a quid pro quo. And I don’t believe half of the folks negotiating knew what the heck that meant. We don’t have to comply with the outcome. And if we don’t, the only thing they can do is reopen the negotiation for our non-compliance. That was an exchange that occurred between two people that were on the short end of what they’d just branded as the initial phase of a negotiation. They were tough negotiators that sought the improvement of their plight. The strategy they’d just chose was to ignore the agreement they’d just made. Instead of abiding, they’d find a reason to ignore it.

I’m sure you can recall a time when you thought you had everything on the right track. It may have been at the end of a negotiation, or any interaction you had with someone. Everyone agreed to abide in a specific manner. Later, you discovered, that was the last thing the other party intended to do.

 

Here’s how you can handle non-compliance in the future.

 

Perspective:

First, be aware of the other party’s perception of an outcome. If they don’t believe they received a good deal, they may attempt to renege on it. Also, remember, someone’s perception is their reality. That means, you can think it’s a good deal from their vantage point, but unless they do, it’s not.

 

Seek Leverage:

Look for points of leverage that can be used to thwart the offender’s opinions. That may lie in unsuspecting places (e.g., church, community, business, political, family, social media, etc.). Depending on your ferocity to alter his non-compliance, leave no stone unturned. The more advanced the leverage you can bring to bear, the less effort you’ll have to exert to achieve a better outcome.

 

Seek Allies:

Allies can be a huge source of leverage. But you have to be cautious about how you choose them, and the environments from which they come.  

 

  • Internal – Be aware of the allies you have inside your camp. Members within your environment may have different goals and aspirations. Thus, some may work against you while casting the pretense of being on your side. To reduce the chance of working with subversives inside your camp, work with trusted sources you’ve worked with before.

 

  • Social media – Because you can’t completely control your messaging on social media, this can be a daunting channel to use when attempting to alter the opinions of your adversaries’ supporters. Thus, it’s one reason to exercise caution when placing information in those venues. Nevertheless, you can promote premises that might resonate with some individuals. Do that by placing timely information on appropriate social media outlets. To enhance your efforts, consider the outlet that the oppositions’ supporters retrieve information from when considering this as a possible tool.

 

  • News outlets – Who do you know in the news outlets in your town? If you don’t have any contacts, create some. When you want to get a message to stakeholders that might be used as leverage or for any other advantage, news outlets can be an invaluable resource. Don’t ignore them. And, if you don’t want something disparaging you say to reach others, don’t say it. Even if it’s ‘off the record’, someone may leak your words.

Communications:

 

  • Speak the right language – When communicating and attempting to bond with other parties, speak their language. That means, use the same words and idioms they use. To bond even better, use the same inflections and accents they use too. Mirroring them through speech will create the impression that you and they are similar. And it’s difficult for someone to dislike someone that’s like themselves. Conversely, if you wish to lord over others, use lofty language that signals your prominence over them.

 

  • Keep communications simple – In some cases, it may be better to keep your communications simple. For some information consumers, you should use words that are easy to understand. Don’t speak over their heads by using words that they can’t comprehend. If you do, your communication may become challenging to grasp and understand. If it’s overly challenging, they may perceive you as putting on airs, or worse, misleading.

 

  • Galvanize opponent’s supporters – It may appear contradictory to galvanize your opponent’s supporters. But your efforts to thwart their non-compliance may be enhanced by using an opponent’s supporters against him. Sometimes this can be accomplished by appealing for fairness in an attempt to capture the hearts and minds of those individuals (e.g. how would you like someone doing this to you or those you care for). At other times, you may pursue their support by casting your opponent in a light that is far outside of what’s typical for a situation. Adopting either of these maneuvers, depending on the circumstances, should allow mental movement to occur in the minds of your opponent’s followers. Remember, you’re seeking the hearts and minds of those individuals. If you want either or both, use the appropriate strategy required to acquire the outcome you’re seeking.

Reflection:

Striving to overcome non-compliance can be a daunting task if someone’s actions are allowed to fester into a formidable foe. Therefore, always be watchful of situations going awry. Take action before they hinder you. The quicker you’re able to identify the beginning of a straying position, one that’s departing from an agreement or expected behavior, the faster you can address it. That will be half the battle of confronting those that later contradict their commitment.  You will have uncovered them at the early stages of their betrayal, which will give you more time to reposition yourself and them … and everything will be right with the world.

 

Remember, you’re always negotiating!

 

Listen to Greg’s podcast at https://anchor.fm/themasternegotiator

 

After reading this article, what are you thinking? I’d like to know. Reach me at Greg@TheMasterNegotiator.com

 

To receive Greg’s free “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here https://www.themasternegotiator.com/greg-williams/

 

 

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When Sales isn’t Paid on Profits — You Get What You Pay For

If your sales compensation plan fails to reward building value — and then pricing to it — you’ll get exactly what you ask from your salespeople. And all the bad things that come with it —especially if you’re a sales leader.  Let’s explore the implications.

While you’re reading this, you have salespeople working hard to win business that you don’t want. A lot of that is because of your incentive plan. When your people aren’t paid to increase deal profitability, many won’t bother. Sadly, this is the sales leader’s fault.  Salespeople may not be fully coin-operated, and they certainly aren’t bad or lazy…but they’re also not stupid. A comp plan that promises that you won’t push them to work any harder for a deal than they have to, they’ll win deals the easy way: by discounting.

The Obvious Outcome: Profits

We’ve all heard that “Nothing starts until a sale is made”. Curiously, nobody brings up that “Everything ends when sales aren’t profitable”. I just painfully watched this outcome at a formerly-great company.  What a shame.

For those who have never managed a P&L, let me make it simple.  Every top-line dollar discounted off a sale drops off the bottom line as well (there is no change in any of your cost lines).  Pricing dollars are profit dollars.

Think about it another way: in a price war, the only party who wins is the lowest-cost competitor (and no, customers don’t win. Very few of them actually want the low-cost option). If that lowest-cost provider isn’t you, stop playing a game that you can’t win.   That means stop compensating discounting dysfunction.

If you don’t reward pricing to value, you’ll get exactly the profitability you’re asking for.

The Next Outcome:  Affording Differentiation.

Customers choose suppliers based on differentiation, which makes differentiation the lifeblood of business, sales…and the currency of every sales organization. It’s as simple as that.

Your company can differentiate in multiple ways:

  • Product/service fitness for use,
  • Product/service image,
  • Post-sale (I call it between-sales) service,
  • Availability/convenience,
  • Saving one or more customer costs,
  • Making the customer more competitive,
  • etc.
  • OK, and the lowest price.

Look back at that list. They all require resource investments to develop. Yes, even achieving long-term cost advantage (operational efficiency) consumes resources. Differentiation isn’t free, it’s purchased. If your profit streams don’t feed the investments that build on your differentiation, you’re hollowing out your company.

If you don’t reward pricing to differentiated value, you’ll eventually get exactly the level of differentiation you can afford.

Another Bad Outcome:  Sales’ Place at the Table

I hear sales leaders complain that they and/or their function doesn’t get the respect it deserves. As a sales leader, did you ever ask if you’re getting exactly the respect you’ve built?

Imagine people in any other department of your company, all of whom work hard to maximize profit.  Now imagine them hearing some knucklehead in sales saying “it’s the company’s job to make a profit at this price”…then then being backed by the sales leader (no, this isn’t hypothetical.  It happens.). If sales don’t work toward the same thing (profit) as everyone else in the company, why would their sales leader “get a seat at the leadership table”?

I’ve heard sales complain that it is “unfair to pay us on profitability”.  Remember: sales not only works with an unobstructed view to customer value — it’s the main job is building value in customers’ minds. Given these facts, does this “unfairness” complaint — from the one function charged with building and capturing value — earn the company’s trust? Executives’ trust?  Would an executive dare to bring anyone who claimed that “unfairness” in front of their board? Should such a sales leader be anywhere on the succession plan?

Conversely, imagine this alternate reality: Sales is the function consistently bringing new customer value insights back to the hive for commercialization: driving focused innovation, powerful differentiation, impactful marketing strategies, and confidently capturing profitable pricing that pays for it all.  Would a leader of such a sales function deserve “a seat at the table”?

If you don’t reward pricing to value, you’ll get exactly the respect you’ve earned.

Perhaps Worst of All:  You’ll Get the Customers You Deserve.

Price-sensitive customers are the least loyal.  Often they’re the most demanding, most costly, hardest to service, make your people the most miserable and stressed, and consume disproportionate resources. If your people aren’t able to — or aren’t paid to — capture value, you’ll find yourself winning the worst customers…the ones your smarter competitors are thrilled to let you win…and Barry Trailer will be right again.

If your salespeople aren’t paid to co-create value, they’ll end up co-creating apathy.

How Bad Is It, Really?

The odds are, you don’t even know how bad your problem is.

It seems that only a quarter of sales teams have any profitability component in their comp plans. And that’s only the top level of the problem.

Every company should have deep analytics that tracks pricing/discounting behavior, and very few do. The overwhelming majority of companies don’t even track how much they give away in discounts every year, much less how/where discount dollars are allocated.  Even fewer have a robust price exception/ discounting system. For instance, can you answer this for your own company: Are pricing exceptions based on objectively measured customer value, the whiniest salesperson (OK, the salesperson best able to game your system), most politically connected regional manager, or something else?

CEOs and CFOs:  Do you even track how many discount dollars you spend, and how they are distributed? Can you break down how discounting dollars (or gross margins) are distributed by salesperson, sales manager, customer, region, etc.  If not, you’re probably bleeding profit dollars without knowing it. Your cost of sales may be twice what you think it is.

If you don’t measure your pricing practices, you don’t understand them…and you don’t know how much they’re costing you.

Rewarding it vs. Doing Something About it

This article focuses on your compensation plan, but it should be apparent that comp is only one leg of a stool.  The stool topples without a solid comp plan, but also can’t stand if comp is the only issue you solve.

Other legs of the stool are more directly focused on how to sell value – the behaviors getting rewarded under the right comp plan.  Chief among these are training and ongoing coaching: enablement, in the current vernacular.

Once your sales team wants to consistently build, measure – and capture — customer value, a lot of powerful outcomes materialize.

  • More sales at more profitable prices, which funds even more differentiation.
  • Sales opportunity reviews that discuss customer value display selling expertise, which drives the credibility of the sales organization.
  • Clear & objective measurement of customer value can drive objective, precise pricing and discounting decisions. Your whole company can objectively see why a given discount was needed.
  • More accurate forecasts, which of course drives credibility of the sales organization

Want to talk about anything in this article?  Post it below, or if you want to have a deeper dialogue, contact me. As always, please like and/or share it with your networks.

To Your Success!