Posts Tagged Leadership

Three Mistakes B2B Sales Leaders Make That Hurt Performance

Much is written about how the role of the B2B marketers changed over the years due to the shift in the buying process. And while this is true, and has been mentioned more than several times on the ANNUITAS blog, I see very little being written or spoken about the role of B2B sales and how their roles have changed. Perhaps this is just me not being as deeply ingrained in the B2B sales world, but by and large, I have not seen much in the way of the changing role of sales in the B2B process. Furthermore, when I speak to prospects and engage with customers, I find that sales believes the changes are needed on the marketing side, but that there is little that they need to do to adapt. They could not be more wrong. As I continue to interact with many on the marketing side and am now also spending more time with those in sales leadership, leadership (1) I have seen some consistent themes that run across a good number (not all) of sales organizations. These mistakes must be corrected if B2B sales organizations are going to have any measure of success.

They Create Work To Keep Sales Teams Busy

I was on a call not too long ago with a client who said that they were going to start pulling industry lists from their house database and have their inside sales team begin a “call blitz”. Without getting into the specifics, I asked my client why they were taking this approach when the whole goal of us working together was to create a buyer-centric, perpetual demand generation program. The answer I received was “we need to keep them busy.” This is not the first time I have heard this plan for an inside sales team.

Simply creating work to keep a sales team busy is like running to the river to get water in a bucket rather than fixing the plumbing. It is a short-term fix that often supplies little in the way of results. The reality is that inside sales people who are very well paid should not be the “fix” for demand generation. They should be poised to either truly sell via the phone or to qualify leads that have indicated via their behavior (and corresponding demographic data) that they are at a point in their buying process that they want to have a discussion. Simply creating work to keep inside sales people busy is not only productivity problem, it is a sign that your demand generation engine is broken.

They Measure The Wrong Things

I spoke this morning with a colleague who is in a fairly new role in his company and was telling me that the one key metric that their inside sales team is measured on is “call volume.” In his new role, he is attempting to move past this way of thinking and stress that quality far surpasses quantity, but he is experiencing resistance.

To be frank, measuring the volume of calls is one of the worst metrics any sales team could measure. When a buyer is in their buying process and ready to take a call, they often have many, in-depth questions. Buyers want to understand how the company’s solutions or services will benefit them, and want be sure their specific needs and challenges will be met. Calls of this nature can take 20-30 minutes or even longer and when done as part of a strategic demand generation program, will lead to a higher closed-won conversion rate, leading to increases in revenue. This is really what demand generation is about, quality over quantity. Call volume doesn’t matter.

They Insist on Sticking to Their Sales Process

Not long ago I was meeting with a client and white boarding the buying journey. During this session the VP of Sales interrupted and stated, “I am not too concerned with the buying process. We have a sales process that will disrupt that and we will engage them when we need to.”

WHAT?!?

It was clear from his statement that he had no clue that the buyers do not care about an internal sales process. In fact, buyers determine when they are ready to engage with sales and buyers are no longer dependent on sales people to research and determine the right time for them to buy.

While there is a need to establish a lead management process and sales people should have a process they follow for the management of pipeline and revenue, too many sales leaders are in the dark about aligning their sales process to that of their buyers. As result, the unfortunate reality is that they are not converting potential buyers to customers at the rate they could be.

Demand Generation is not only a marketing activity. To be effective, both sales and marketing must be active participants in the process and this means changing the way many sales organizations and sales leaders approach their buyers.

 

This article was originally posted to the Annuitas Blog by Carlos Hidalgo on May 26, 2016.

 

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Small Business Advice Ten Tips on Leadership

There are so many experts on leadership and they frequently talk only about high level theories and concepts. Whenever I read a leadership book I always look for a few nuggets that I can teach to my clients and more importantly, help them put the ideas into action. Many times, I struggle to find realistic tactical “things to do” in a book. To that end, I want to share with you 10 leadership responsibilities that small business owners must implement in order to be successful. My 10 small business advice tips have been galvanized by many years of coaching business leaders and providing them with implementable small business advice.ResponsibleMgmt

Here are my 10 Small Business Advice Tips on Leadership

  1. Ensure that you are always positive, upbeat, and passionate. You are the role model and your team is watching you and how you act. Your temper, tone, and body language should be carefully controlled and representative of what you aspire to. They see you at your best and worst moments, so be on your best behavior.
  2. Show grit to your people. If something is hard, and you fail at it, don’t give up right away. Tenacity is an attribute of successful small businesses.
  3. Listen more than you talk. You don’t have all of the answers. Encourage your people to speak-up and make recommendations. Insist that you get a recommendation and not just another description of the problem.
  4. Surround yourself with successful and creative people outside of your team. You will be inspired by fellow entrepreneur’s experiences and ideas. Read books, attend conferences, watch TED talks on Youtube, and schedule meetings with experts that don’t think the way that you do.
  5. Keep your commitments and only make commitments that you can keep.
  6. Demonstrate integrity in all that you do, say, or profess. Insist on complete honesty with your teammates and yourself.
  7. Make yourself visible and approachable to all members of your company. You are the boss and unfortunately you intimidate most of your team. I have found that the best way is consistently ask questions about what your company should be doing better. Once you break the ice, the feedback will flow and you clearly hear what is important to know and what to change.
  8. Be the face of the company with the public, suppliers, and customers. As the owner, people want to have a relationship with you.
  9. Celebrate your achievements and successes as urgently as the disappointments. We frequently forget how much we really have accomplished and taking the time to celebrate wins will hearten you and your team.
  10. Be ready to openly and honestly debrief failures. The military does this brilliantly. They specialize in getting at the root of mistakes without casting personal blame. They focus on fixing processes and reinforcing accountability.

This article was originally posted to the Business 2 Community Blog by Dave Schoenbeck on April 10, 2016.

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Are Your Sales Meetings Destroying Your Sales Team and Undermining Your Authority?

Are your weekly sales meetings building your team, your credibility, and your company’s sales or are they destroying morale, motivation, and undermining your authority?  Unfortunately most sales meeting do far more harm than good to the sales team, the sales leader, and the company.business_conference

They don’t have to.  In fact, regular (regular does not necessarily mean weekly) sales meetings can be the backbone of creating a thriving, high production sales team.  Most often, however, they are the ruination of the sales team.

Weekly sales meetings have killed more manager authority and respect than probably any other activity a manager engages in with the possible exception of the ride along.  They have also driven a great number of high performers to the competition, one of which may be my client Richard who is one of the top 5 sellers in his company’s 300 member sales force.

Sales people generally hate this weekly meandering through sales meeting hell and the accompanying glimpse into the hollow caverns of the sales management brain in stupefying inaction.

Why?  I believe there are four primary reasons sales meetings are such a waste of time and effort:

1.   No purpose.  A great many sales meetings are held for no other reason other that it’s Monday (or Friday, or Thursday, or whatever day of the week they are normally held on).  Consequently, the meeting is destined to be a time waster.  One time wasting meeting is bad enough, but I know of some companies who have three or even five of these meetings every week (often these multi-meeting companies are seeking to keep control of their salespeople).

2.  No preparation.  Whomever is in charge of the meeting (generally the immediate manager of the assembled team) has invested not a single minute in preparing for the meeting.  As they’re sitting down for the meeting, they take out a pen and jot down two or three things to talk about.  Again, it is the perfect setting for a waste of time.

3.  Too many tangents.  Without having prepared for the meeting and knowing exactly what to deal with, it is easy for the manager to veer off onto tangents that ultimately have nothing to do with anything. Yet another factor that guarantees the meeting will be useless.

4.   A haven of negativity.  Especially during times like the present when business is tough, an unprepared manager tends to focus on trying to cajole numbers out of his or her team.  People are put up for ridicule in front of their peers because of poor numbers, they are forced to justify their performance, and the rest sit in silence, knowing their turn is next once the manager has finished “coaching” their current prey.   Now not only is the meeting a waste of time, it is a real morale killer too.

Great, so sales meetings suck.  Everyone already knows that.  What can managers do to make sales meetings valuable?  I’ve found four simple rules seem to work very, very well:

1.  No purpose, no meeting.  Only hold meetings when there is a REASON to hold a meeting.  That may be once a month, once every two weeks, once a week, or as needed.  The company no longer paying for coffee is not a reason for a meeting; that’s a memo.  Reviewing the pre-call planning steps is a reason for a meeting.

2.  No preparation, no meeting.  If for any reason the person managing the meeting has not had time to thoroughly prepare, the meeting is canceled.  There is no excuse for wasting the team member’s time because the manager didn’t get their job done.

3.   A sales meeting is not the place for individual coaching.  A sales meeting is a group activity.  Address the group’s needs and issues, not individual salespeople’s.  There is no excuse for denigrating anyone in front of the group or for wasting the group’s time for individual coaching.  Each team member should have coaching time scheduled outside the sales meeting.  The rule is, if a meeting degenerates into individual coaching, the team members are free to leave (note, however, that answering a specific issue a team member has with the subject matter being discussed is not individual coaching).

4.   Set a time limit, stick to it.  Salespeople need to be selling, not attending meetings.  Under normal circumstances, sales meetings should be kept to an hour or less.  Only under extraordinary circumstances should a meeting exceed an hour.

Your sales meetings should concentrate on helping team members sell.  Reviewing market conditions; presenting new products or services; reviewing sales skills such as prospecting, making presentations, asking questions, pre-call planning, and the other aspects of selling and the sales process; role playing activities; and other core content should be the heart of the meeting.  Seller recognition and reinforcement should also be an integral aspect of your meetings.  Leave the meeting on a high note, not a downer.  Housekeeping notes and announcements should be kept at a minimum—discarded completely and put into memos if at all possible.

Meetings are important, but too many meetings or too much wasted time turns what could be a valuable tool into a wrecking ball plowing through your team, leaving lifeless, dispirited bodies in its wake.  If your meetings are unorganized, are designed to do little more than keep control of your salespeople, or drag on incessantly, you’re killing your team, not building it.

Turn your sales meetings into real strengths, not team killers–both you and your team members will be glad you did—and within short order you’ll actually see some smiles and enthusiasm Monday morning instead of the deadwood that drags itself into the meeting room.

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This article originally appeared in the Sales and Sales Management Blog on February 4, 2014.

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Ten (too often ignored) Rules for Conference Calls

We waste so much time in meetings and conference calls, some of which are unnecessary and others that take way too long.  We all know this.  And yet how often do we leave a conference call or a meeting asking ourselves:  “was all that really necessary?”  If we just follow these simple rules when considering a meeting or a call imagine how much more productive our time could be.Conference Calls

Make sure you really need it in the first place.  If this is really just an update, perhaps a memo would be better to save everyone the time.

On the other hand, be proactive about using a quick meeting or conference call to focus on and resolve/decide on an issue or question that otherwise would become the longest email string in the world that never really reaches consensus or action (you know exactly what I’m talking about).

Make sure everyone is required.  Every attendee should be an active participant.  Anybody who is just “listening in” should save themselves the time and read the memo/recap afterward.  If you are playing Candy Crush while “attending” your next conference call, this probably means you.

Set up a dial-in line vs. “conferencing people in” across multiple phone numbers.  Make it really easy for everyone required to join in independently of one another.

If you are the leader or moderator, join the call five minutes early.  If another participant is late, that’s bad enough, but having everyone sit around waiting for the leader is far worse and a huge waste of everyone’s time.

Distribute an agenda in advance.  You’re doing this for live, in-person meetings right?  They’re just as important for phone-based meetings to keep them disciplined, focused and efficient.

If you’re a required participant (which means you’ll be participating) don’t multi-task.  Focus with everyone else on the topic/question/decision at hand so it can get done as quickly as possible.

If you are the leader or moderator, actively manage the focus and length of the call.  If you scheduled 30 minutes, ensure you can get your business done in that time or less.  Also police the discussion so that you stay focused on what’s important for that call only (i.e. on the agenda).

End the call as soon as you’ve completed the agenda or made your decision.  Don’t allow the “hey, one more thing since we’re all on here…”  It’s not likely that everyone on the call needs to be around for that.

Think long and hard about whether a “recurring” conference call on everyone’s calendar is truly necessary either 1) at all, and 2) that often.  Could one of you taking that time to write up a summary/recap memo get the same information disseminated and save others the time?  Could you make the call far shorter by focusing that together time on decision-making or problem-solving, and preserving the status updates for the memo?  Would you be bold enough to cancel a recurring meeting if there were no decisions to be made, only status updates?

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Three Critical Skills New Sales Hires Lack

The best sales managers know how to hire enthusiastic people who have the right attitude and want to take advantage of a great opportunity.  But even the best new hires usually lack many key skills. Where does a sales manager start?  Here are three critical skills you should focus on coaching with your new hires.skills

Qualification Skills

Do you remember when you were new on the job?  Did you know how to recognize prospects that could turn into good clients and those that would just waste your time?  Neither did I!

Too much valuable time is wasted on low potential accounts.  New hires need to learn how to weed out under-qualified leads faster.  Your role as the sales manager, especially with new hires, is to get involved early in the sales opportunity.  Talk to your sales person about a prospect and ask specific questions such as “Is this organization a good fit for us and our products/services?”  Then ask them to explain their answer.  What are they seeing or not seeing which makes them think the company is a good or poor fit? If it is a good fit, ask them, “Where is this customer in their buying process?” and “What factors did you use to determine this?”

Developing Strategy/ Process

When new hires lack a defined sales process, they have no strategy for success.  If ramping your new hires to success faster is a goal, your company may very well need a “sales playbook” which captures best practices used by your senior sales people.  The playbook should document both the general sales process you want your people to use plus examples of what successful sales representatives do in a variety specific situations, such as selling different types of products/services to specific types of decision makers.  Once you have the documentation, make it available to your new hires – preferably online, or somewhere they have easy access.

Having the playbook isn’t enough, however.  To become proficient and confident in selling situations, new hires must practice the steps of the sales process, determining where a customer is in their buying process, and work on problem-solving skills and questioning techniques – while also appearing confident on knowledge about your company’s solutions.  Of course it would be best they gain this practice through role-plays with you than when dealing with customer!  If you have your company’s sales process “baked” into the playbook, you have a ready source for developing role-playing scenarios which you can run with new hires.  And keep in mind “flexibility training” is essential in role-playing.  Offer scenarios which are unexpected with questions out of left field etc.

Understanding Company Expectations

Success in sales is not just what one does, but how one completes each step.  Being a successful salesperson takes a mix of consultative selling skills and attitudes, performing to high expectations, and meeting the needs of an employer – not just customers.  Many salespeople, and especially new hires, lack a vision of what their company expects.  As a sales coach, take time to develop a Success Profile that defines all these elements then share that list with your team.  You can use this Success Profile as a coaching tool.  Use it to launch discussions with each sales person about their professional development and attitude improvement goals.  This profile might also suggest to new hires what criteria a company may use to look for in people they consider for promotion.

If you can help your new hires master these three areas; Qualification, Process, and Expectations, they will have a solid foundation for a great sales career.

This article was originally posted to the TopLine Leardership Blog on December 19, 2013.

  

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To Move Ahead You Have to Know What to Leave Behind

Decisions are the most fundamental building blocks of successful change in our organizations, our teams, and our careers. The faster and more strategically we stack those blocks, the faster and more successfully we achieve change. Yet, change efforts often stall precisely because those decisions don’t happen.Leadership & Decisions

The question is why?

Avoid Changing By Addition. The Latin root of the word “decide” is caidere which means “to kill or to cut.” (Think homicide, suicide, genocide.) Technically, deciding to do something new without killing something old is not a decision at all. It is merely an addition.

When an executive announces that her business will change to become a luxury service provider, technically it is not a decision until she also states that they will not provide low cost services to price-sensitive customers anymore.

When a sales manager declares that his strategy this quarter will require his salespeople to spend more time strengthening existing customer relationships, he has only made an addition until he also declares that they should spend less time on something else like hunting for new prospects.

Your palms might be sweating at the mere thought of telling your team to ignore some group of paying customers or to not spend time hunting for new business, even if you really want to see the change happen. Research has shown that making tradeoffs is so mentally exhausting that most people try to avoid them whenever possible. That’s why a manager who is no stranger to long hours and hard work will escape the discomfort simply by piling on new change objectives without killing any of the current priorities.

But this change-by-addition approach can be a death blow.

Avoid Trickle-Down Tradeoffs. When team leaders fail to decide which old directions are going to be sacrificed in service of the new direction, the tradeoff doesn’t magically disappear. It simply slides down the ladder. Instead of the team leader leaning into the discomfort and deciding once that the team is going to spend this quarter strengthening existing customer relationships, and not actively hunting for new prospects, each team member now has to decide for themselves whether to call on an existing customer or go find a new one every time they pick up the phone, open their email, or hop in the car.

Trickle-down tradeoffs create two major problems for change efforts. First, they undermine team alignment toward the change. It is highly unlikely that each team member will independently arrive at the same conclusion about what to do and what not to do. Part of the team will choose to move in one direction while the other part moves in another direction — the very definition of misaligned.

Second, psychologists have shown that making tradeoffs depletes our overall mental capacity and causes us to make poorer judgments in completely unrelated situations. This phenomenon is why otherwise healthy eaters end a long afternoon at the mall of choosing between stylish shoes and comfortable shoes by feasting on a hearty dinner of French fries and Cinnabons. They have no mental energy left to make good dieting decisions.

Similarly, when your team has to spend a long morning making tradeoffs it leads to long afternoons of either staring at the wall and web-surfing, or making poor choices for their customers, their workloads, and their budgets.

To Lead Is To Decide. Making change decisions is a cognitively and emotionally taxing activity that the average person will go to great lengths to avoid. While I have discovered some techniques for increasing the consistency and reliability of our decisions, there is no proven way of completely eliminating the discomfort of making tradeoffs. That might be a key element of what makes great leaders great. Great leaders and change agents have come in all shapes, sizes, colors, genders, and personality types.

But the one thing they all seem to have in common — the one thing that distinguishes them from ordinary people — is their willingness to decide when others could not.

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This article was originally posted on the Harvard Business Review Blog by Nick Tasler on August 7, 2013

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Five SMB Sales Management Blunders

Hiring a sales staff for your small business comes with the responsibility to provide effective sales management.  While many small to medium business entrepreneurs are also good sales people, not every SMB owner has a natural talent for managing a sales team. Here are some of the most common sales management blunders and how you can avoid them.mistake

Mixing Recognition with Coaching.  One common sales management blunder is to congratulate your sales force for a job well done and quickly move to areas of improvement. This tactic can often be interpreted by sales staff as a lack of appreciation. A best practice is to separate the recognition from the coaching. Save the performance improvement areas for coaching sessions. Set up separate recognition of your sales rep success even if it’s a small celebration. It’s the little gestures of respect and celebrations of achievement which gain the hearts and minds of the sales force.

No Sales Plan.  Another common sales management blunder is: not developing a sales plan to help manage the sales team.  A successful sales team requires regular planning tracking, and review to achieve their targeted results. Every sales representative requires their own action plan to direct day-to-day activities and set up accountabilities.

All sales plans have at least three requirements:

·         Sales Rep Development: Where most plans fail is they are developed by the sales manager not the sales rep. To ensure a high level of plan acceptance, have the rep develop the plan and guide them toward the right objectives.

·         Regular Reporting: Sales plans should be established on a weekly basis to provide flexibility in the planning cycle. Reviewing can take place on a monthly basis. Sales management excellence involves reviewing the results against the plan to determine missed opportunities and areas for improvement.

·         Sales Metrics: A successful sales plan focuses on results and activities. Establish the proper sales metrics to drive your business results. Metrics can include: number of client phone calls, number of contacts, appointments set, appointments conducted and sales closed. Do not overwhelm your sales staff with excessive tracking numbers. Focus on the few measures that matter the most to your business.

No Sales Support.  A common sales management blunder is to hire a sales person without providing them with the level of support required to succeed. Even if your new rep is well-versed in your industry and a top performer, they will still require help to familiarize themselves with your company, products, and markets.

Not all sales reps require the same level of support. For many small business owners, a hands-off approach to sales management is not the best strategy. Successful sales management requires a commitment to sales force training. Regardless of the size of your firm, an investment in sales training and support can pay big dividends on profitability. Spending the time one-on-one and in the field with your sales team will not only provide support but convey a sense of the importance of sales people in your organization.

Focus on Control Sales Management.  Many new and unsuccessful sales managers will focus on the traditional sales management by intimidation or control approach. The top sales performers know they have a valuable skill set and will quickly walk to a competitor if treated poorly. Sales management is a partnership between the sales rep and the sales manager. Effective sales management requires sharing in the responsibility to find the problems and bottlenecks in your sales process. Seek the solution together with your reps. Be a champion for helping them achieve their agreed results.

Lacking Sales Accountability.  There will be times when sales reps fail regardless of the support and training they receive. It is easy to pass off the lack of results to external forces such as competitors, the economy, or poor marketing. Remember the sales rep was hired to bring in sales. When support, training, and market potential are available, a lack of results often means it’s the rep’s performance.

A lack of performance can be traced back to your sales management program. If your small business lacks a clear policy of sales accountability, it remains your responsibility to implement the process. Creating a culture of sales accountability will not happen overnight. Expect to lose sales staff.  A Sales person who has underperformed and will not accept personal responsibility for their own results will leave. This is a good thing. A sales accountability culture only accepts top performers – which is exactly what your business needs to survive in a competitive market.

Growing a small business is hard work. The sales management function is often overlooked by small business owners. Spending the necessary time wearing your sales manager hat will help foster a rewarding culture and build a successful sales team to boost your business to new levels.

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Four Reasons You Need to Implement Performance Measurements

Most business leaders know intuitively they should be using data to measure their organization’s progress and drive future decisions. However, when things get busy, data is often the first item to drop off the radar.

Have you made performance measurements a priority at your organization?  When you understand the advantages that monitoring data can offer you may be more willing to make it a consistent priority. Using metrics to set clear, quantifiable goals within your company offers four distinct benefits:

 

1. Performance measurements help to create focus by offering clear goals.  Some departments—such as your sales team—may live and die by their numbers. However, other departments may lack the hard-number goals that keep them motivated to perform. If your team doesn’t have a realistic goal guiding their day-to-day work, they may end up feeling unmotivated and directionless. Numbers give people something to shoot for.

The metrics you choose need to be meaningful. Annual numbers are too abstract, and even quarterly numbers may get ignored until the final two weeks of the quarter. Figure out what defines “success” for each one of your departments and work with your leadership team to pick a metric which tracks that measure of success. For example, does your marketing department keep track of the number of prospects their campaigns bring in the door? Does your technical support team track the average resolution time for their tickets?

By giving everyone a quantifiable number that guides their daily work, you’ll be offering them clear targets for results and setting up your company for consistent success.

 

2. Using metrics can also help your team grow. Tracking the right data also enables your managers to create accountability by establishing clear expectations for each of their team members. By examining each person’s results, your managers will get a quick snapshot of how each team member is performing in that dimension. Team members who need additional management or training will get the attention they need.

Additionally, within a team setting, performance measurements can also help to create a greater sense of teamwork by increasing camaraderie—and even some healthy peer pressure—to perform.

 

3. Keeping track of your business metrics is also good for revealing potential problems—before they grow too large.  Monitoring performance measurements throughout your company will give you a good feel for how your company is really doing. Potential stumbling blocks will become evident long before they become large issues, allowing you and your team to attack them head-on and solve them proactively. For example, if your tech team is suddenly spending significantly more time closing tickets, you might uncover a system glitch that needs attention before it halts your whole operation.

Using your data to spot problems early on allows you and your team get out in front of your challenges, rather than waiting for them to impact your bottom line.

 

4. Relying on hard data, your leadership team can reduce the amount of time it takes to make the big decisions.  Timely decisions keep your organization on track toward fulfilling its overall vision. By creating a clear set of measurable metrics which are well-defined, easy to track and understood by everyone in your organization, you’ll be able to make informed choices backed by solid data.

It will also get you and your team in the habit of collecting important metrics as you build your business, rather than running around after the fact to collect numbers. These habits enable the clarity and honesty you need to make the right decisions for your business’ future.

 

One Final Note – we’ve all heard rumors about companies who have gone data crazy and lost their perspective in the process. Performance measures are designed to help you reach your ultimate outcomes, but they’re not your end goal. As you introduce performance measurements into your organization, make sure you do so with the right perspective. Your chosen metrics represent a single dimension of your company’s health. They always need to be assessed with your company’s ultimate vision in mind. In other words, when you’re analyzing data, always ask yourself what you are really trying to achieve—and how this number will get you there. Then, make your decisions accordingly.

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This article originally was posted to the Vistage.com blog by Kevin McArdie on May 23, 2013.

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A Business Owner’s Simple Guide to Ruining a New Employee

Most small business owners are not human resources experts, so dealing with hiring/staffing issues is often difficult.  Additionally, most tend to gravitate toward what they enjoy, and for business owners that’s usually working with clients, generating new business and developing personal relationships. This can sometimes leave internal practice management issues neglected, with employee relations being perhaps the most overlooked area.

 

Here are some of the mistakes that some SMB owners most often make when they hire new employees:

 

Not knowing or understanding the role.  This is probably the biggest hurdle, but it is the easiest to avoid. It takes firm owners asking themselves the tough strategic planning and vision creation questions which they sometimes put off.  Owners need to have a good idea of where they want to end up so they can shape how they want professional staff to help get them there. They need to ask: Will more of the same get me where I want to be? Or is the new hire going to bring with them the introduction of a “fresh air” approach within the organization?  And, am I willing to accept the changes that will bring on?  Often, firms are reactive and hire backward due to an unexpected increased workload and operate in the “just get me somebody” mindset. This type of short-term thinking can lead to bigger problems further down the road.  In other cases, when business owners think they have an idea of what they want their new hire to do and how they want the new position to look, despite what may be to them a clear internal perception, they do not communicate it well or fully to the candidate.

 

Assuming too much.  This is a symptom of the first pitfall.  Owners sometimes assume the new hire knows what the position should entail and the new hire assumes the owners know what they want. All of this assuming is a recipe for disaster because the relationship never gets started off on the right foot. Candidates should have a good idea of what type of role they think they would perform the best in, but the buck stops with the owner to have a strategic vision for the firm and a specific vision for where and how the new candidate fits.  Further, this vision must be consistent, and not reactionary or constantly changing.

 

Little to no ongoing communication/mentoring.  This is a direct effect of assuming too much.  Communication is critical, especially during the on-boarding stage and directly after.  Business owners are usually hiring someone because they are beyond overloaded and therefore can’t spend the appropriate time getting the new hire up to speed.  Yet for many top talented individuals, mentoring is the primary reason they choose to join a certain firm.  They deeply desire an experienced mentor that is willing to spend the time to teach them the side of the business of which they’re unaware or haven’t fully experienced.  In some cases, this is why many gravitate toward smaller firms and sometimes take less pay.

 

Throughout the mentoring process, regular communication is imperative. Always let your new hires know where they stand.  Younger employees are used to constant and instant communication through texting, MySpace, Facebook and Twitter. It would almost be impossible to over-communicate with your new hire from this social genre.  If you don’t deliver on the mentoring, you lose a crucial chance to help build firm loyalty with your “newbie.” If you know you are not a good mentor (and not all of you are), find someone, or work out another process for training and working closely with your new hire.

 

No involvement in the decision-making process.  If business owners see their new hires as being part of the firm long-term, then these employees should be included in the firm’s decision-making.  Owners don’t necessarily have to use a new hire’s suggestions, but a new hire that knows he or she is heard will likely find more satisfaction and show more loyalty.  Follow the lead of some of the larger public firms, which bring all of their new hires together to get their unbiased, untainted, fresh ideas and fuel creativity and company innovation.

 

Viewing candidates as “Mini-Me’s”.  Some firm owners try to make new hires exact replicas of themselves.  From the outside looking in, this often makes little sense, but it is still attempted frequently by small business owners.  Ideally, you want to minimize overlap and maximize talent over a broad set of areas, especially in a small firm.  Resist the urge to force your skill set template onto the new hires even if they are receptive.  Frustration can build on both sides when this approach is tried.  Your firm will benefit most if your new hire has a skill set that complements yours, not one that clones it.

 

Not providing challenging and meaningful work.  New hires will have a longing to pursue meaningful and challenging work so that they can add value to a firm.  Give them projects and increase the level of responsibility as they prove themselves.  It is up to the new individual to prove his or her skills, but it is the manager’s job to push new hires out of their comfort zones and help them avoid stagnation.  Keep in mind that part of letting them try different things to build their experience means letting them make mistakes too. We all learn from failure, we grow from failure, we innovate from failure-if we don’t fail, we don’t grow.

 

The feedback trap.  Avoid giving only negative feedback and disguising it as constructive criticism. Consider how you give your clients feedback. This is a great way to approach things with your new hire. At the onset of a great client relationship, you provide honest feedback about the positive aspects of the situation and the areas that need the most focus.  It shouldn’t be any different with new hires.  Consider the different ways you communicate with different clients.  You will need to find the communication and feedback style that works with your new hire.  Consider personality profiles or other behavioral surveys to understand the best way to get the most out of your new hire.  Keep in mind, in this highly transitory society many of new hires may be from diverse backgrounds and cultural environments.  So finding the best approach to relate, communicate and manage them will save you time and headaches. Plus, don’t forget feedback is reciprocal. Don’t be offended when they give you honest feedback about your performance-it can only make your firm better.

 

Lack of a career path.  Small business owners sometimes struggle with the transition from hire mode to post-hire mode.  This is similar to politicians who are always in getting-elected mode even after securing office.  It is prudent for owners to think to themselves, “OK, they are hired, now what do I need to be doing, other than signing a paycheck, to give them opportunities for career progression?”  Most new employees are not going to be satisfied staying in the same position for their entire career. Furthermore, if you cannot produce a career track or describe how one might look in your firm, be ready to lose out to other firms that can.

 

Not sticking to your guns.  If you don’t have the first issue above figured out, an accurate job description can’t be developed.  If you don’t have an accurate (written) job description, it is virtually impossible to ask the right interview questions. Plus, without these two items, job performance metrics can’t be developed.  Resist the temptation while interviewing to say to yourself, “I really like that person and they could work here,” if their characteristics don’t fit your job profile. Stick to the position you are hiring for!  And that same vein, don’t change your expectations or perceptions of the new hire’s reason for coming on-board to something they didn’t sign on for after they’ve joined your firm.

 

For those that have not ventured into hiring yet, you will most certainly encounter something on this list at one point or another during the process if, or when, you take the plunge. With some awareness, simple planning and concerted effort you will be well on your way for a smooth integration with your new hire.  A small up-front thoughtful investment of time and money in human capital, and an on-going consistent follow through, will pay big dividends later – for you and your new hires.

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