Archive for July, 2011

Do, Manage, Consult, or Coach

Monday, July 25, 2011 by:David Zahn
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At any given time in the ebb and flow of conducting business, an executive will have to choose one of four courses of action:

  1. Do – many executives climbed to their senior position by being able to perform the tasks of subordinates at a high (often higher than their peers) level.  Rather than spend time developing the skills of subordinates, it is often more expedient in the short-term to just do the task him or herself.  A side “benefit” of the executive doing the tasks of subordinates is that the subordinates do not learn how to do the tasks (which ordinarly, would be a negative).  However, as long as the subordinate does not have the skills, knowledge, or abilities to perform, the executive has the “power” to resort back to what is already mastered and there is a belief that that translates to job security, power, and value to the organization.
  2. Manage – Some executives recognize that they cannot do all or most of the tasks of subordinates and decide that certain tasks can be better handled by managing the efforts of their teams, direct reports, or subordinates.  The focus has moved from the executive being the “super-technician” who is the “best” at something and does it, to assigning, directing, monitoring, and evaluating the performance of others.  The decision-making of, “how, why, and when” to perform are centrally-controlled by the executive and there is little autonomy afforded to the subordinate employee.
  3. Consult – Another approach used is for the executive to perform more of a role of consultant or mentor to the subordinate.  In this role, the executive still retains a level of expertise that is inequitable to the subordinate’s and tries to relate that insight, experience, and expertise to the employee in a quasi-directed, but potentially non-binding way.  The executive makes herself available to the employee and may provide pointers, hints, or techniques to consider.
  4. Coach – For most people, the image of a coach that comes to mind is of a master motivator that rallies a team (usually an athletic team) to achieve greater heights than they would ordinarily achieve.  However, even in that scenario, the “coach” is often the keeper of some master stratefgy or tactic that is then brilliantly executed by the members of the team.  The players become more like chess pieces that are employed and applied according to the whims and wishes of the coach/chess player.

However, that is not the kind of coaching that succeeds in business.  In business, coaching is best applied by developing the skills, awareness, and strengths of the team uniquely and separately from the coach.  The focus is on asking the person to be coached the following:

  1. Empowering questions that help direct the person to their own insights, creative solutions, and perspectives on how to address a situation.  At times, that may mean that the solution reached is far different than the one that the coach would have employed (so it means giving up a sense of control over the inputs, methods, and weighting of factors for the coach).
  2. Providing opportunities for exploration so that the person being coached is able to experience the full weight of the assignment and recognize their own (and the team, unit, division, or total business) strengths and opportunities.
  3. Having the person being coached assume responsibility and control for the outcomes.  Unlike other approaches described above, coaching requires extending the trust that the subordinate will correctly achieve the results sought (even if the methods employed are not the ones that would have been chosen by the executive).

An executive has as many approaches to choose from as a golfer has clubs.

The above are not meant to be a hierarchy of approaches with coaching being the best and doing the worst.  Rather, it is presented to provide a context for understanding the various tools available to the executive to use selectively given the circumstances, skills, and readiness of the organization to employ each at the appropriate time.  Just like a golfer has multiple clubs in their bag to choose from depending on the situation, so too does an executive have more than one approach to achieve results.  Choosing the right one and correctly swinging it will serve the executive and the business far more beneficially than constantly relying on a driver when a putter would be more appropriate.

Knowing when to use each method or approach, and being skilled in how to best apply that approach is far more important to the evaluation of an executive’s influence and skill than their technical competence or previous abilities.  The role of the executive is different than that of the subordinate and should be evaluated on the basis of what expectations the organization has for that role, and not of the subordinates’ roles.

Netflix’s Not so Near Miss

Sunday, July 17, 2011 by:David Zahn
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Approximately a week ago, many subscribers to the video delivery giant, Netflix received an email notice that their pricing was to increase substantially.  It comes as no surprise that when told that pricing was to rise by as much as 60% depending on the plan the subscriber was on; that there was a very strong negative reaction.  The action of asking for and successfully implementing a price increase is never easy for a supplier in any industry.  However, this price increase seemed to agitate many customers at a very acute level on a number of levels:

  1. There was no announced increase in the Netflix expenses to warrant the increase (or if there was one, it was not explained to the customer).  The prior pricing was not based on a different series of costs  and expenses that had risen – in fact, due to the use of streaming video, the expenses may actually have gone down.
  2. The timing of the announcement came on the heels of a recent pricing initiative that had just been initiated and was being absorbed by the customer.  It left customers to wonder if they were being taken advantage of and were being tested to see just where the tolerance point was for them.
  3. The perception that the customer’s wants and needs were secondary to the operational needs of the company.
Customers to Netflix – Hello, do you hear us?

Basic Sales

One of the fundamentals of any sales effort is to understand the needs of customers and focus on providing solutions through some combination of products and services.  Netflix correctly re-invented the video rental business by recognizing that the corner video store was not able to supply the same breadth and depth that a central distribution service like Netflix could.  The convenience of sending DVDs back and forth from home added to the positive feeling customers had towards the company.
However, that goodwill is not limitless.  There is  a point where the value received is no longer worth the price demanded.  Remaining close to the customer to understand when and where that line is (and when it is about to be crossed) is of paramount importance. 
It is alleged that Netflix has calculated the likelihood of defections into a calculus of what it will cost in lost sales versus what they stand to gain in increased fees.  Unfortunately, the bad press they have invited by fumbling their finesse around the price increase will not be as easily measured by an Excel spreadsheet.  Their very leveraging of the business model of the internet as a delivery mechanism may also be what ultimately increases their difficulties.
Sales is a Person-to-Person Interaction
Even if the sale occurs with an internet-based company, the customer still expects to deal with a person who they can interact with, speak with, or at least email with and get immediate responses.  Dealing with the nameless, faceless entity that resembles the way Dorothy felt in front of the Wizard of Oz is undoubtedly going to be rejected by most customers.  There has to be some connection with, advocating for, and willingness to interact or engage with customers for the customer to feel a company is worth providing their loyalty.
Worse, the internet, social media, and the PR hit being taken by the company has wounded it tremendously.  The company’s own site, Facebook, and other sites have been maxed out with complaints about the cost increase, but also with the perceived arrogance of the company in trying to shove this price increase down customer’s throats without discussion, offering to maintain pricing if the customer commits to a long-term agreement or pre-payment, etc.
Power-holder
With the speed with which customer needs change, new businesses crop up, existing competition retools, and expectations evolve; for a company to think that they can demand a price change and have a customer remain loyal without having properly explained how the customer stands to gain from the higher price (is there more service – No, is there better product – No, is there a lack of options available to the customer to meet entertainment needs through video access - No), is foolhardy.
Netflix may ultimately reverse or reduce their price increase plans; but for now – they agitated customers and have led to defections en masse.  Whether they can recover remains to be seen.

Who Will Buy – Me?

Wednesday, July 6, 2011 by:David Zahn
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Do you ever feel like a beggar hoping to get a speaking fee?

Fans of musicals will remember the scene where Oliver walks the street with roses in his hands hoping to make a sale as he tentatively sings, “who will buy…?”  Of course, as he tries to implore the various people he passes on the street to purchase the flowers, he competes with all of the other vendors on the street trying to sell their wares or services.  The same hopeful optimism and cut-throat competition exists for those of us considering pursuing getting paid to speak at events.

Who is More Expert than me?

Of course, the first challenge is to actually have something to say that people would be interested in hearing.  The competition is so fierce currently that most associations will not pay to have someone speak (there are enough members or others willing to conduct concurrent seessions, provide case studies, or present on some issue for the “publicity” that the associations do not need to pay).  Of course, there is also an element of “getting what you pay for” when the army of presenters walk to the front of the room with their PowerPoints and flipchart markers and proceed to bore people with data, text in 6 point font, and little relevance to the attendees.

To really crack into getting paid to speak, Vickie Sullivan, renowned consultant and authority on speaking, recently shared ideas in  the e-zine, “RainToday.”  Sullivan recommends the following:

  1. Ditch the Data - In what may seem counter-intuitive, the reality is that very few keynote presentations are really judged on the facts, data, or quantifiable evidence being offered.  More times than not, the keynoter who is successful will be judged on, relevance of message, delivery style, humor, stories, and moving people emotionally.  So, in place of the Excel charts and diagrams, Sullivan suggests that the speaker use stories and anecdotes that resonate with people.
  2. Go Where the Gigs Are – by that she means to stay away from the non-paying association meetings and explore the corporate speaking opportunities.  The competition is potentially less as you likely have some contacts there and may have fewer hurdles or obstacles to overcome to get in front of the buyer.  Where the associations are inundated with requests, the corporate buyer is focused on delivering a message of value and will often be willing to use someone they are familiar with.  Of course, that also means you have to avoid being pigeon-holed as “just” the trainer or IT guru. 
  3. Precede or Conclude – if one is set on speaking in conjunction with an industry or regional conference or association meeting, the recommendation she makes is to consider creating a pre-conference or post-conference addition.  By creating a potential “revenue generating” opportunity for the association or meeting planner, the speaker can often take a percentage of the revenue split and create a revenue stream that way.

The Job is not Done

Having a presentation that creates excitement and is able to move people is a good start, but meeting planners are wary of choosing someone who will not generate enthusiasm for those that are unsure if they want to attend or are considering sneaking out to answer phone messages during that time slot.  Reputation is of paramount importance as the “brand” is as often as important as the message.  To accomplish this, Vickie Sullivan suggests revamping one’s media campaign.  She suggests targeting the widely read publications and not just trade journals to get one’s name “out” there.  She is also a strong proponent of having a book that promotes one’s ideas, viewpoints, or insights.
 
Bigger and Better Speaking Opportunities
 
Insider Tips for Speaking on the National Associations Circuit

How to Use Social Media to Generate Speaking Opportunities
 

The last point to ensure is covered is the marketing collateral and materials.  Marketing oneself as a speaker requires having materials that support that endeavor.  Speaker bureaus demand it (though, in truth, they are more impressed with speakers who can sell themselves more than anything else as it makes their jobs that much easier), and clients and prospects will often accept them in place of a response to a proposal.  Of course, the materials must represent the speaker as a polished professional.  No cheesy clip-art, poorly worded narrative, and certainly no typos or proofing errors!  The focus needs to be on message, the “take-away” attendees will get; and not on sample content or specific points to be covered.

Remember, this is about speaking – so providing videos, websites, testimonials will be key.  It is the rare person that purchases a car without a test drive, and it is the rare buyer who will consent to a speaker sight unseen. Make it easy for the prospective client to see you in action.

If you are going to try to get someone to buy you as a speaker, you had better offer something of value, or you will be singing for your supper like Oliver Twist!