mark | October 30, 2006
We've made http://www.constructionmarketingideas.blogspot.com our primary blog. It is easier to manage/maintain than this open-source software, and we are having much less problem there with comment spam.
When we redesign the site within the next few months, we'll probably copy the constructionmarketingideas blog to this space.
When we redesign the site within the next few months, we'll probably copy the constructionmarketingideas blog to this space.
mark | September 29, 2006
Jeffrey Gitomer’s excellent weekly Sales Caffine newsletter reminded me of an occasion where I followed his advice, and achieved surprising results.
In one of his books, he told readers who own businesses to accept all inbound sales calls, and treat the callers with courtesy and respect. Previously, our receptionist screened the calls; any caller slick enough to get through to me (without proper introduction or referral) received a blast from the mouth and a good old slam of the phone.
Under the new rules, I agreed to accept every inbound sales call. The receptionist kept a log. The idea was to see how much time I actually needed to ‘waste’ to respond courteously, and learn a bit more about the offers.
I also introduced a ‘one day return call’ rule for sales reps who left a message for me when I was away from the office.
After three months, we checked the log. There were fewer calls than I had expected, and the total time required to accept or respond to the calls amounted to less than one hour. But a few calls led to some worthy business.. In one, an employment service offered to match us with an IT professional on a job placement for a fee of about $1,000 – the workers’ salary would be covered by government unemployment benefits under the special program. The new ‘employee’ joined us and stayed six months. If we had paid his salary, our cost would have been about $60,000.
I wrote an article for my papers about the experience at the time, and sent a copy to Mr. Gitomer. He wasted no time in responding to thank me.
Like all good stories, this one has more to it than the good news snapshot shows.
First, we would have probably never hired the IT specialist in an open competition. It wasn’t that he was bad, it was that he lacked a business orientation and drive, the ability to adapt to change. So when I look at his legacy, I can see that it is indeed limited, and the amount we paid (about $1,000) is about the value we received.
Secondly, most of the offers were downright bad, inappropriate, or poorly thought out. I don’t think much is gained by dialing every number in the book. Almost none took any effort to understand who we were, or what we did, or to connect with rational offers and value to us. And, finally, a disturbing number of calls were from scam-type broker/dealers, who dress up and tout dishonest pump-and-dump stock market schemes.
These days, a receptionist doesn’t screen my calls. They go straight through to my desk, and when I am there, I pick up the phone. When I’m away, voice mail answers.
Of course, now that I publish this newsletter, I welcome calls from all sales representatives – but interestingly, reps who call me to actually sell something (because my name is on some list or another) still usually don’t leave a message. If they do, they will receive a courteous response within two business days. For those who leave a voice message, I truly appreciate their thoughtfulness in describing who they are, what their offer is, and giving me the opportunity at my convenience to consider and evaluate it before responding.
More problematic for me are sales reps who call with their script and wish to tell their story when I am busy. I would prefer that they ask if I am busy and if it is convenient for me to talk with them. But even then it is awkward –they are catching me off guard, I would rather have some background on whether their offer is useful before speaking with them.
Yesterday, for example, someone representing a public relations firm called when I was in the midst of some critical work. I declined her proposal to meet with her client for an interview, saying I review written press releases. Then she asked me for my email address. I’m afraid I wasn’t terribly courteous with her.
Where does all of this take us?
* Cold calling to strangers is and will continue to be a daunting and frustrating experience. I don’t think you should do it. But if you are in the position to receive cold calls, it never hurts to be courteous and respectful (I failed on that account with the public relations person yesterday). The time it takes to listen briefly and politely decline an inappropriate offer is miniscule in the scheme of things;
* If you have an offer to make, be prepared to leave a voice message clearly outlining what you have in mind. Most won’t return the calls, but frankly, if they won’t return the calls, why would you be any more convincing if you actually get through? (If you have a truly great and relevant offer of specific value to the person you are calling, creative and imaginative persistence will eventually connect you with the right person – but note this is based on true relevance.)
* Please, try your hardest to ensure your offer is valid and useful for the person you are selling. It is virtually impossible to create a valuable relationship by a blind calling of cold lists.
I’ll dust off and remember my own advice: If a sales rep calls, no matter how intrusive or irritating it may be, I promise to treat the caller with courtesy and respect. If you are a sales representative making cold calls, remember you also have an obligation to treat the people you call with respect – they, after all, didn’t ask for your call.
To subscribe to the weekly Construction Marketing newsletter, register on the “Marketing Advice” page of ottawaconstructionnews.com, or by emailing buckshon@constructionnrgroup.com. You can also phone 888-432-3555 ext 224.
mark | August 26, 2006
You can find many books, articles, seminars, speeches and ideas about selling and marketing construction and related professional services, but when it comes right down to understanding the formulas for lasting success, many pundits share the belief that three underlying elements are essential: Passion, Sincerity and Respect.
Passion – the drive that keeps you going
Without passion for your work/business/cause, you’ll find it hard to overcome the obstacles, barriers, setbacks and mistakes you’ll ultimately make as you go along. Passion, in my opinion, is 100 per cent essential; you cannot be motivated for any length of time by superficial or external forces. Your passion doesn’t need to correlate totally with the tasks you must do, but it gives you the strength to do the things you don’t enjoy, in order to fulfill your larger visions.
My first passion is investigative journalism. I derive incredible satisfaction from digging out the truth; in understanding why social and economic events occur, and reflecting these ideas in words and images. My second passion is fascination with the world’s diversity. These two passions were reflected in my first dream in life – to be a foreign correspondent. I achieved that goal when, at age 25, I worked as a sub-editor at the Bulawayo Chronicle in the final stages of the Rhodesia/Zimbabwe civil war, filing several stories to Canadian newspapers. I also quickly realized that many lifetime foreign correspondents I met during my travels didn’t have much of a family or personal life (my third passion).
Yesterday, during a lunch with a client arranged after the thank you call described in last week’s newsletter, my passion came through loud and clear as I described some of the stories we worked on in our local construction newspaper involving risk, controversy and sensitive topics. I listened with interest to his concerns. If this lunch was a sales call, it certainly didn’t seem or feel that way (though, of course, the client gave clear indications towards the end of the lunch that it would be reasonable for me to ask for the order, and I did).
Sincerity – you need to be true to yourself, and others
Sincerity, the second element on this essential list, goes hand in hand with passion. Unless you are both true to your own heart, and that of the people around you, you will ultimately fail; caught in your inconsistencies, lies, and discordance. Most intelligent people can smell ‘phoney’ a mile away. However, even the brightest people have weaknesses and sometimes make stupid mistakes. What kind of person is likely to have the authority to purchase sophisticated architectural, engineering, or construction services? I think we’ll agree that most of our potential clients are pretty smart – they may have years of education or great street smarts. I especially respect the business owner with limited education who pulls together a substantial local enterprise with 25 to 50 employees or more, with barely a vocational high school diploma.
We all can (and sometimes need to) fake it for a while, but you aren’t going to last long in this business if you are not true to your heart, values, and clients.
Respect – appreciating and honouring others’ passions and sincerity
Respect, the third piece of this puzzle, is the key to understanding and appreciating that others have legitimate viewpoints and ideas. When we listen, we can learn and gain understanding that transcends the obvious. Respect, like sincerity, is essential to long-term relationships, and in this business, meaningful success.
I recently learned, for example, that I had inadvertently offended some people close to me with previous issues of this newsletter. I decided to build a day’s delay between writing the first draft and hitting the ‘send’ button – and will send advance review copies to those who are close to me or (where possible) who are specifically mentioned in any controversial manner I won’t necessarily change the newsletter in response to the feedback, but the extra time for review and contemplation affords them respect. Besides, it will improve its quality and acknowledges that the content here is built largely from the people I live and work with every day. Respect is vital.
* * *
If you want to develop your sales and marketing skills with specific reference to the construction sector, you should consider joining the Society for Marketing Professional Services (SMPS). Most major U.S. cities have local chapters. While there isn’t an active chapter yet in Canada (it is one of my goals!), you can still access the wealth of educational resources and programs, and many of the networking tools offered by the association. SMPS has a professional certification program with a three-hour exam to test your understanding of marketing concepts and methodologies. Last week, I took the exam, and this week, I learned that I had passed it.
* * *
Please feel free to forward this newsletter to your friends and colleagues. Readers can signup for their own free subscriptions by going to this address:http://www.washingtonconstructionnews.com/registration.php
Do you have news to share -- an accomplishment, lesson learned, or even news releases that you would usually distribute locally or nationally? If they are relevant to the construction industry in your community, they will likely be posted as news items on our websites.
Do you have a thorny construction marketing challenge? If you wish, please share it with me in confidence and maybe we can come up with some answers. If the challenges are complex or require significant time and resources, we may wish to engage in a formal consulting agreement – but you won’t be expected to pay any fees unless we are truly successful.
________________________________________
Mark Buckshon is president of the Construction News and Report Group of Companies, which publishes regional construction newspapers and websites for more than 100communities in the U.S. and Canada. He can be reached by email buckshon@constructionnrgroup.com by phone at 888-432-3555 ext 224.
Passion – the drive that keeps you going
Without passion for your work/business/cause, you’ll find it hard to overcome the obstacles, barriers, setbacks and mistakes you’ll ultimately make as you go along. Passion, in my opinion, is 100 per cent essential; you cannot be motivated for any length of time by superficial or external forces. Your passion doesn’t need to correlate totally with the tasks you must do, but it gives you the strength to do the things you don’t enjoy, in order to fulfill your larger visions.
My first passion is investigative journalism. I derive incredible satisfaction from digging out the truth; in understanding why social and economic events occur, and reflecting these ideas in words and images. My second passion is fascination with the world’s diversity. These two passions were reflected in my first dream in life – to be a foreign correspondent. I achieved that goal when, at age 25, I worked as a sub-editor at the Bulawayo Chronicle in the final stages of the Rhodesia/Zimbabwe civil war, filing several stories to Canadian newspapers. I also quickly realized that many lifetime foreign correspondents I met during my travels didn’t have much of a family or personal life (my third passion).
Yesterday, during a lunch with a client arranged after the thank you call described in last week’s newsletter, my passion came through loud and clear as I described some of the stories we worked on in our local construction newspaper involving risk, controversy and sensitive topics. I listened with interest to his concerns. If this lunch was a sales call, it certainly didn’t seem or feel that way (though, of course, the client gave clear indications towards the end of the lunch that it would be reasonable for me to ask for the order, and I did).
Sincerity – you need to be true to yourself, and others
Sincerity, the second element on this essential list, goes hand in hand with passion. Unless you are both true to your own heart, and that of the people around you, you will ultimately fail; caught in your inconsistencies, lies, and discordance. Most intelligent people can smell ‘phoney’ a mile away. However, even the brightest people have weaknesses and sometimes make stupid mistakes. What kind of person is likely to have the authority to purchase sophisticated architectural, engineering, or construction services? I think we’ll agree that most of our potential clients are pretty smart – they may have years of education or great street smarts. I especially respect the business owner with limited education who pulls together a substantial local enterprise with 25 to 50 employees or more, with barely a vocational high school diploma.
We all can (and sometimes need to) fake it for a while, but you aren’t going to last long in this business if you are not true to your heart, values, and clients.
Respect – appreciating and honouring others’ passions and sincerity
Respect, the third piece of this puzzle, is the key to understanding and appreciating that others have legitimate viewpoints and ideas. When we listen, we can learn and gain understanding that transcends the obvious. Respect, like sincerity, is essential to long-term relationships, and in this business, meaningful success.
I recently learned, for example, that I had inadvertently offended some people close to me with previous issues of this newsletter. I decided to build a day’s delay between writing the first draft and hitting the ‘send’ button – and will send advance review copies to those who are close to me or (where possible) who are specifically mentioned in any controversial manner I won’t necessarily change the newsletter in response to the feedback, but the extra time for review and contemplation affords them respect. Besides, it will improve its quality and acknowledges that the content here is built largely from the people I live and work with every day. Respect is vital.
* * *
If you want to develop your sales and marketing skills with specific reference to the construction sector, you should consider joining the Society for Marketing Professional Services (SMPS). Most major U.S. cities have local chapters. While there isn’t an active chapter yet in Canada (it is one of my goals!), you can still access the wealth of educational resources and programs, and many of the networking tools offered by the association. SMPS has a professional certification program with a three-hour exam to test your understanding of marketing concepts and methodologies. Last week, I took the exam, and this week, I learned that I had passed it.
* * *
Please feel free to forward this newsletter to your friends and colleagues. Readers can signup for their own free subscriptions by going to this address:http://www.washingtonconstructionnews.com/registration.php
Do you have news to share -- an accomplishment, lesson learned, or even news releases that you would usually distribute locally or nationally? If they are relevant to the construction industry in your community, they will likely be posted as news items on our websites.
Do you have a thorny construction marketing challenge? If you wish, please share it with me in confidence and maybe we can come up with some answers. If the challenges are complex or require significant time and resources, we may wish to engage in a formal consulting agreement – but you won’t be expected to pay any fees unless we are truly successful.
________________________________________
Mark Buckshon is president of the Construction News and Report Group of Companies, which publishes regional construction newspapers and websites for more than 100communities in the U.S. and Canada. He can be reached by email buckshon@constructionnrgroup.com by phone at 888-432-3555 ext 224.
mark | August 17, 2006
One of the most effective, powerful, and rewarding marketing resources available to you costs not a cent, can help you capture truly incredible repeat and referral business, will help you nip problems in the bud, and takes only a few minutes time.
It is the thank you call.
The power and importance of this single step can be found in an experiment I conducted last week with a group of one-time advertisers who had elected to participate in a feature profile article about a local construction contractor. The ads were sold by our number one salesperson.
When I phoned on the company’s behalf, receptionists, usually careful and reserve, seemed to warm up and I could even sense a smile on the other end of the line. They hesitated not a second to put me through to the company owner, or to tell me exactly when I could reach the right person to thank.
And when I reached the clients, I learned important things. One person said she would welcome some publicity for her business. It isn’t one suitable immediately for a special feature, but her insights validated some of the basics about construction industry marketing. (I wish I could identify her here, but won’t publicize her name until she gives me the go-ahead).
The client said her business is project based; intense, and often very demanding. Business has its ups and downs. At the height of the technology boom, she had five employees – now her team is just two (with of course an extensive network of outsiders)
She told me that 50 per cent of her business is repeat business from satisfied clients, 30 per cent comes from referrals, and 20 per cent reflects her outbound marketing efforts. Interesting numbers and validation of the 80/20 rule. Note of course that the 20 per cent is actually quite important – without it, the business will gradually contract – but focusing on keeping current clients satisfied and creating the climate for external referrals is far more important than pushing out and selling to strangers.
Another customer told me an interesting story about how he sometimes felt businesses abused his trust. He described the operators of specialty trade shows for the construction industry – the salespeople would work with him intensively until he signed the contract; then, he says, he felt totally ignored. It seemed, he said, the attitude was: “We’ve got your money, now leave us alone.” The shows ultimately failed, incidentally.
I invited this one-time advertiser, a former repeat client, to lunch.
After I phoned all the supporting advertisers, I then called the person whose company had been profiled in the feature supported by all these other businesses. I thanked this client for his business, of course, and shared with our major customer the good-will that had been reported from the various suppliers.
Now I am looking at how much this thank-you initiative cost, and what it gave in return.
It took no money, and perhaps a half hour of my time. I have several leads for future projects, a much better understanding of potential problems, and have connected some dots to bring people closer together and improve relationships.
Note: The personalized thank you note is also very effective, and obviously not intrusive. It carries with it the power of the written word and is retained in memory. The thank you phone call, however, has the powerful advantage of two-way communication. You can learn a lot by listening in a brief conversation.
mark | August 11, 2006
I'm setting up for Technorati, and the system requires me to post this reference. It is done.
Technorati Profile
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mark | August 5, 2006
mark | July 21, 2006
Before vacation, I asked for your biggest single marketing/sales challenge. Here is one sent in by a reader and an insightful answer from marketing consultant Ford Harding -- an answer that takes us in worthwhile directions far beyond the original question.
"One of my biggst marketing challenges is 'Selling the concept -- Losing the sale'", the newsletter reader wrote me. "Invariably, any sale seeks to dislodge an incumbent supplier in favour of your product (or service). ..
"Everyone needs to do their due dillegence on any purchase and this naturally involves a comparison to the perceived current supplier. On too many occasions than I care to remember, I have been able to sell the prsopect on the benefits and value of our service only to have them call in their (current) supplier, who they have a long-standing relationship with, and ask them if they can provide the same service. Of course the answer is yes and I lose the sale, even though we have not found one (existing) supplier who offered the same services we do with our product. Its a 'clsoe enough' scenario where the prospect is happy to get the new service without changing anything in their office procedures. Of course, they are not getting anything new or realizing the benefits we can provide but the sale is lost just the same."
The reader's business is technology related, but the problem, says Harding, author of Creating Rainmakers (Wiley, 2006) could either be one of two issues that relate to everyone in in the industry.
1. Lack of emotional linkage with the buyers. Buyers buy on the basis of their emotions and then justify the decision with logic, after the fact. When a client buys your concept but hires someone else to deliver the work, it's often because they don't link emotionally with you and your people. Solutions: 1) Get some presentation coaching on this issue; 2) Make sure you take into account the personal needs of the buyers and not just their busines needs. Can you identify what would make the project a success for each buyer, personally? Is your answer to the question a guess or an assumption or do you really know? Sell to the personal need, not just the business need.
2. Inability to differentiate the value of your service to competitors' services. No doubt your service is better, more sophisticated, specially designed for this purpose. But what do these vague words mean in terms of value received by the client? Can either the client or you answer questions like these: What difference would it make to your company to ahve this problem solved well rather than just ? What would the cost to your company of a failure of Type A or B in this area? It is in the answers to questions like these that the client must identify the value of working with you rather than taking the easier path of working with an existing supplier."
I truly aprpeciate the question and Ford Harding's response because it presents us with the very real challenge and perhaps most important issue in marketing and selling within the construction industry. If we truly do our work well with existing clients, it is almost impossible to dislodge these relationships. You may have a much better solution; an insightful idea, great service, whatever, but it is an uphill battle to move current clients away from their existing suppliers if they are at all competent at their work. The art of keeping your current clients enthusiastic and using the existing relationships to either add to current business or build out referral opportunities is probably the highest and most effective marketing strategy you can use -- and is going to be a primary focus of upcoming newsletters.
--------------------------------------------------------------------------------
It may be ironic how in the Internet world two things very opposite use the same word. "Catching a virus'"evokes images of spam, hard drive crashes and horrible pop up ads. "Viral marketing" means something very different -- readers spread the message to friends and colleages by forwarding emails or website references. Soon the whole world knows about your great idea or concept. Can you help me out with some viral marketing? Just forward a copy of this newsletter to your contact list. Readers can sign up by going to this address: http://www.washingtonconstructionnews.com/registration.php
--------------------------------------------------------------------------------
Do you have news to share -- an accomplishment, lesson learned, or even news releases that you would usually distribute locally or nationally? Please feel free to send them to me -- if they are relevant to the construction industry in your community, they will likely be posted as news items on our websites.
--------------------------------------------------------------------------------
Mark Buckshon is president of the Construction News and Report Group of Companies, which publishes regional construction newspapers and websites for more than 100 communities in Canada and the U.S. He can be reached by email at buckshon@constructionnrgroup.com or by phone at 888-432-3555 ext 224.
"One of my biggst marketing challenges is 'Selling the concept -- Losing the sale'", the newsletter reader wrote me. "Invariably, any sale seeks to dislodge an incumbent supplier in favour of your product (or service). ..
"Everyone needs to do their due dillegence on any purchase and this naturally involves a comparison to the perceived current supplier. On too many occasions than I care to remember, I have been able to sell the prsopect on the benefits and value of our service only to have them call in their (current) supplier, who they have a long-standing relationship with, and ask them if they can provide the same service. Of course the answer is yes and I lose the sale, even though we have not found one (existing) supplier who offered the same services we do with our product. Its a 'clsoe enough' scenario where the prospect is happy to get the new service without changing anything in their office procedures. Of course, they are not getting anything new or realizing the benefits we can provide but the sale is lost just the same."
The reader's business is technology related, but the problem, says Harding, author of Creating Rainmakers (Wiley, 2006) could either be one of two issues that relate to everyone in in the industry.
1. Lack of emotional linkage with the buyers. Buyers buy on the basis of their emotions and then justify the decision with logic, after the fact. When a client buys your concept but hires someone else to deliver the work, it's often because they don't link emotionally with you and your people. Solutions: 1) Get some presentation coaching on this issue; 2) Make sure you take into account the personal needs of the buyers and not just their busines needs. Can you identify what would make the project a success for each buyer, personally? Is your answer to the question a guess or an assumption or do you really know? Sell to the personal need, not just the business need.
2. Inability to differentiate the value of your service to competitors' services. No doubt your service is better, more sophisticated, specially designed for this purpose. But what do these vague words mean in terms of value received by the client? Can either the client or you answer questions like these: What difference would it make to your company to ahve this problem solved well rather than just ? What would the cost to your company of a failure of Type A or B in this area? It is in the answers to questions like these that the client must identify the value of working with you rather than taking the easier path of working with an existing supplier."
I truly aprpeciate the question and Ford Harding's response because it presents us with the very real challenge and perhaps most important issue in marketing and selling within the construction industry. If we truly do our work well with existing clients, it is almost impossible to dislodge these relationships. You may have a much better solution; an insightful idea, great service, whatever, but it is an uphill battle to move current clients away from their existing suppliers if they are at all competent at their work. The art of keeping your current clients enthusiastic and using the existing relationships to either add to current business or build out referral opportunities is probably the highest and most effective marketing strategy you can use -- and is going to be a primary focus of upcoming newsletters.
--------------------------------------------------------------------------------
It may be ironic how in the Internet world two things very opposite use the same word. "Catching a virus'"evokes images of spam, hard drive crashes and horrible pop up ads. "Viral marketing" means something very different -- readers spread the message to friends and colleages by forwarding emails or website references. Soon the whole world knows about your great idea or concept. Can you help me out with some viral marketing? Just forward a copy of this newsletter to your contact list. Readers can sign up by going to this address: http://www.washingtonconstructionnews.com/registration.php
--------------------------------------------------------------------------------
Do you have news to share -- an accomplishment, lesson learned, or even news releases that you would usually distribute locally or nationally? Please feel free to send them to me -- if they are relevant to the construction industry in your community, they will likely be posted as news items on our websites.
--------------------------------------------------------------------------------
Mark Buckshon is president of the Construction News and Report Group of Companies, which publishes regional construction newspapers and websites for more than 100 communities in Canada and the U.S. He can be reached by email at buckshon@constructionnrgroup.com or by phone at 888-432-3555 ext 224.
mark | June 29, 2006
This week, on an intensive three day trip from Ottawa to Vancouver, B.C. and Bozeman, Montana, I had plenty of time to read Alfie Kohn's provocative book: Punished by Rewards -- The Trouble with Gold Stars, Incentive Plan$, A's, Praise, and Other Bribes. Right from the start, I knew this book would take some unconventional directions -- it is probably the first true business book (properly) catalogued by the book store in the Parent/Teacher/Education section. It is also a book that will not 'connect' with you if you oversee or work in sales area where pure commission compensation is the norm, you believe in B.F. Skinner's theories of behaviourial psychology, or you are an ardent free enterprise believer in meritocracy. Of course, it may equally give you an 'aha' of unconventional but practical solutions to some of the most vexing problems of sales training and motivation if your business operates within any of these categories.
Kohn argues effectively that reward-based motivation, whether it be by bribes or manipulative praise, just doesn't work, at least for any length of time. He cites plenty of research that shows when you try to get people to do stuff that goes against their inner nature, you may gain co-operation, for a time, but you also create dependency, stifle creativity, increase conflict, and ultimately fail to achieve your objectives. His argument is that intrinsic motivation, that comes from within the individual's own interests and values, is far more important than extrinsic motivation; where the person is responding (through bribes and praise) to controlling or dominating authority.
Phew, this is something of a mouthful, but struck a chord as I waited for six hours in a rather unglamerous waiting area at Seattle airport for my delayed Bozeman flight. What in the world was 'motivating' me to fly across the continent to a small Montana city, to arrive at sunrise, get 90 minutes sleep, and then down to business discussing life in Zimbabwe?
Officially, of course, I had a practical business purpose for my travels -- I wanted to meet two prospective regional construction newspaper publishers (one in Vancouver and one in Bozeman) who, as expected, impressed me with their interest and talent. I hope I'm not guilty here in doing what Kohn describes critically as motivating by praise. Those who know me well appreciate that my intrinsic motivation for this recently completed journey had less to do with any real business purpose than my deep enjoyment in being served by flight attendants in business class 30,000 feet above ground.
Kohn's point is that the best productivity and results are achieved by separating the money and rewards from the work, and giving your employees the freedom to express and respond to their intrinsic motivation -- to let them find their true happiness. Pay, he argues, should be equal, or at least dissociated from performance reward. He is quite convincing, though somehow I don't think this concept will get too far in a real estate brokerage office, or for that matter, most commission-based sales organizations.
Kohn cites one example where a business successfully abolished commissions and rewards and saw productivity and results soar, but I think the jury is out about whether he is overstating his case. I can give a contradictory example from first-hand observation. The business had prided itself on an egalitarian, salary based model, but (the owner discovered) he was losing all his best employees. Some, the high flying great producers, were going to competitors where they could truly 'earn their worth' on commission; others, the ones that were great at customer relations and maintaining rapport were (ugh) quitting his company to work for its clients! It is possible, of course, something else very wrong was happening at this business to drive the talent away; but I think it is equally possible that Kohn's model, where rewards are abolished and egalitarianism is the basis of the business, is fundamentally unstable and unsustainable over time.
On the other hand, I recall well in my earlier days in business the artificial sales contest and awards presentations I covered for my little newspaper serving the real estate industry in Ottawa. I thought: "Could these people really enjoy sitting at a banquet eating rubber chicken and learning that some of them were being 'honored' with a group vacation at some mass-market resort?" I mean, the last place I would like to take a vacation, I thought, would be with a whole bunch of other real estate agents from my company. And I certainly wouldn't feel good if I 'missed out' because I wasn't 'good enough". Yuk. Since the real estate brokerage was paying for the advertorial, of course, I wrote a positive story about the event.
I've seen in my own business how treating employees and contractors with respect, and allowing them as much freedom as possible to live and define their own approach to business, has given our enterprise surprising resiliancy and sustainability, even in circumstances where the enterprise is struggling. While we haven't been 100 per cent effective, we have I think done a pretty good job in creating an environment where non-sales employees find meaning and satisfaction in their work without a need to bribe them with 'performance pay'.
But while Kohn makes a convincing argument, I am not sure if we should rush to embrace his approaches for the sales department. Rather, it seems to me, we should do our best to find salespeople and local publishers who are a good match for the organization and its values and, where possible, allow them the entrepreneurial freedom -- and rewards -- to reach their intrinsic levels of interest and potential.
* * *
Would you be willing to share your best business book observations? I imterested in learning what influenced you. I can 'bribe' you with a $25.00 "aircare -- our apology" certificate from Alaska Airlines. (I have five of them, but think five hours sleep would have been better value. Then again, I suppose I would gladly give up five hours sleep rather than fly in a plane that isn't safe!)
* * *
If you know someone who you think would gain some value from this newsletter, please feel free to forward it to them. Please also feel free to visit http://www.montanaconstructionnews.com; or our B.C. titles, http://www.bcconstructionnews.com, http://www.vancouverconstructionnews.com; http://victoriaconstructionnews.com; or http://www.kelownaconstructionnews.com. These sites don't of course have the flavor and truly relevant local content that a local publisher will hopefully bring to them in the not-to-distant future.
Mark Buckshon is president of the Construction News and Report Group of Companies, which publishes regional construction newspapers and websites in more than 100 communities in Canada and the U.S. He can be reached by email at buckshon@constructionnrgroup.com, or by phone at 888-432-3555 ext 224.
Kohn argues effectively that reward-based motivation, whether it be by bribes or manipulative praise, just doesn't work, at least for any length of time. He cites plenty of research that shows when you try to get people to do stuff that goes against their inner nature, you may gain co-operation, for a time, but you also create dependency, stifle creativity, increase conflict, and ultimately fail to achieve your objectives. His argument is that intrinsic motivation, that comes from within the individual's own interests and values, is far more important than extrinsic motivation; where the person is responding (through bribes and praise) to controlling or dominating authority.
Phew, this is something of a mouthful, but struck a chord as I waited for six hours in a rather unglamerous waiting area at Seattle airport for my delayed Bozeman flight. What in the world was 'motivating' me to fly across the continent to a small Montana city, to arrive at sunrise, get 90 minutes sleep, and then down to business discussing life in Zimbabwe?
Officially, of course, I had a practical business purpose for my travels -- I wanted to meet two prospective regional construction newspaper publishers (one in Vancouver and one in Bozeman) who, as expected, impressed me with their interest and talent. I hope I'm not guilty here in doing what Kohn describes critically as motivating by praise. Those who know me well appreciate that my intrinsic motivation for this recently completed journey had less to do with any real business purpose than my deep enjoyment in being served by flight attendants in business class 30,000 feet above ground.
Kohn's point is that the best productivity and results are achieved by separating the money and rewards from the work, and giving your employees the freedom to express and respond to their intrinsic motivation -- to let them find their true happiness. Pay, he argues, should be equal, or at least dissociated from performance reward. He is quite convincing, though somehow I don't think this concept will get too far in a real estate brokerage office, or for that matter, most commission-based sales organizations.
Kohn cites one example where a business successfully abolished commissions and rewards and saw productivity and results soar, but I think the jury is out about whether he is overstating his case. I can give a contradictory example from first-hand observation. The business had prided itself on an egalitarian, salary based model, but (the owner discovered) he was losing all his best employees. Some, the high flying great producers, were going to competitors where they could truly 'earn their worth' on commission; others, the ones that were great at customer relations and maintaining rapport were (ugh) quitting his company to work for its clients! It is possible, of course, something else very wrong was happening at this business to drive the talent away; but I think it is equally possible that Kohn's model, where rewards are abolished and egalitarianism is the basis of the business, is fundamentally unstable and unsustainable over time.
On the other hand, I recall well in my earlier days in business the artificial sales contest and awards presentations I covered for my little newspaper serving the real estate industry in Ottawa. I thought: "Could these people really enjoy sitting at a banquet eating rubber chicken and learning that some of them were being 'honored' with a group vacation at some mass-market resort?" I mean, the last place I would like to take a vacation, I thought, would be with a whole bunch of other real estate agents from my company. And I certainly wouldn't feel good if I 'missed out' because I wasn't 'good enough". Yuk. Since the real estate brokerage was paying for the advertorial, of course, I wrote a positive story about the event.
I've seen in my own business how treating employees and contractors with respect, and allowing them as much freedom as possible to live and define their own approach to business, has given our enterprise surprising resiliancy and sustainability, even in circumstances where the enterprise is struggling. While we haven't been 100 per cent effective, we have I think done a pretty good job in creating an environment where non-sales employees find meaning and satisfaction in their work without a need to bribe them with 'performance pay'.
But while Kohn makes a convincing argument, I am not sure if we should rush to embrace his approaches for the sales department. Rather, it seems to me, we should do our best to find salespeople and local publishers who are a good match for the organization and its values and, where possible, allow them the entrepreneurial freedom -- and rewards -- to reach their intrinsic levels of interest and potential.
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Would you be willing to share your best business book observations? I imterested in learning what influenced you. I can 'bribe' you with a $25.00 "aircare -- our apology" certificate from Alaska Airlines. (I have five of them, but think five hours sleep would have been better value. Then again, I suppose I would gladly give up five hours sleep rather than fly in a plane that isn't safe!)
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If you know someone who you think would gain some value from this newsletter, please feel free to forward it to them. Please also feel free to visit http://www.montanaconstructionnews.com; or our B.C. titles, http://www.bcconstructionnews.com, http://www.vancouverconstructionnews.com; http://victoriaconstructionnews.com; or http://www.kelownaconstructionnews.com. These sites don't of course have the flavor and truly relevant local content that a local publisher will hopefully bring to them in the not-to-distant future.
Mark Buckshon is president of the Construction News and Report Group of Companies, which publishes regional construction newspapers and websites in more than 100 communities in Canada and the U.S. He can be reached by email at buckshon@constructionnrgroup.com, or by phone at 888-432-3555 ext 224.
mark | June 8, 2006
By Mark Buckshon
If you put a group of successful business owners in a room, and set out to find out their greatest concern and need, most likely, you'll find it comes down to this plaintive hope: "If only I could find some more great sales representatives, then our business would truly reach its potential."
Consultant Bill Caswell of Caswell Corporate Coaching Company asked that question at a winter meeting of the Ottawa, Canada chapter of Innovators Alliance (a Canadian organization representing the CEOs of rapidly growing businesses), and I watched with some bemusement as, within 40 minutes, he had pulled the obvious from the assembled gathering of business owners.
Of course, Bill didn't answer the problem -- but he handled the question so well that in the end he achieved his objective; finding at least one new client who hopefully over time will be profitable for his consulting proactice. So far I am entirely satisfied with my decision to use his services.
Bill's success with me in part reflects the reason it is so hard to find great sales representatives -- he communicated rightfully that he is a peer and not "just another salesperson". But unless you have a partnership or employee ownership plan, your organization can have only one owner, and even if the employee owner firms, there still can only be one boss.
Add to the mix the challenge that in the professional fields like architecture and engineering, sales may sometimes seem beneath the dignity of professional values and objectives, and in the world of contracting, the traditional approach is to wait for an owner to post a project and then rush like lemmings to bid for the work, hoping you don't bid so low that you lose by winning.
I am not going to be so vain to suggest a magic solution to the "finding great sales representatives" issue that continues to elude otherwise highly successful entrepeneurs. But I can suggest three concepts, none of which bat 1000, but together, when combined properly, can narrow the field.
Solution 1 -- You've got to try different things, and seize the opportunities when they arise.
A few months ago, for example, I noticed an offer on a local website for free advertising for summer students. I thought, "why not", and posted a simple ad looking for performance based sales representatives for our print and internet publications. (I have not had any luck with paid services that purport to offer 'great salespeople', however.) I received a few calls, none of which excited me, but engaged in my standard screening protocol. A young woman taking an advertising course responded. I had my doubts --her voice tone didn't seem too convincing -- but she descibed her success at a rather scammy direct sales outfit before she quit in frustration, and I decided it would be worth spending the $50.00 for my my Solution 2.
Solution 2 -- Be ready to administer a sales orientation/apptitude test.
I asked if she would be willing to take the salestestonline.com test. I buy these in bulk at $1,000 a set of 20 -- certainly the tests are far too expensive to be used casually, but I've found they are much less expensive than other testing services on the market, and the test is easy to line up and administer online and thus very useful for my remote business structure. Within a few hours my new candidate had taken the test, and the scores arrived right away -- she had achieved 8.5 out of 10 on the key (for my business) indicators of prospecting, closing and ability to work independently and without close supervision.
Solution 3 -- When you find someone great, hire or contract with them even if you don't have an opening.
Our new representative arrived on the scene at a time of a business crisis, and with much chaos around, it seemed entirely inappropriate to add to our labor force. But I remembered Solution 3, and we created a position for her. I gave her an impossible task, which in hindsight truly was impossible, and near the end of a two week trial period, almost was ready to dismiss her. But fate intervened, she won a reprieve, and the next day she indeed started doing the impossible'-- selling effectively and with such competence that even the most experienced representatives in our organization are amazed with her talent.
If you think you can ritualistically apply these solutions, you are certain to be disappointed. The sales test, for example, is an imperfect tool; I tried to validate it with some of my best representataives, and some of them flunked (and some of my best hires also failed; and some of the worst failures, scored really well.)
Most importantly, your business may not really need great salespeople -- if you are doing your work really well, providing excellent value and service, then you'll find your business grows naturally with repeat and referral business and without the need for any sales representatives.
* * *
I continue to believe that participation in trade groups and associations can be one of your best selling and marketing resources. From a marketing perspective, the groups you want to join are those of your clients and potential customers, but for peer input and networking connections -- especially valuable if your business operates in several local markets -- please consider the Society for Marketing Professional Services (SMPS), that focuses on marketing and sales for the architectural, engineering and contracting sectors. You may want to join a chapter in your area or if you are in Canada, join our small steering committee hoping to set up a Canadian branch of this successful U.S. organization.
If you put a group of successful business owners in a room, and set out to find out their greatest concern and need, most likely, you'll find it comes down to this plaintive hope: "If only I could find some more great sales representatives, then our business would truly reach its potential."
Consultant Bill Caswell of Caswell Corporate Coaching Company asked that question at a winter meeting of the Ottawa, Canada chapter of Innovators Alliance (a Canadian organization representing the CEOs of rapidly growing businesses), and I watched with some bemusement as, within 40 minutes, he had pulled the obvious from the assembled gathering of business owners.
Of course, Bill didn't answer the problem -- but he handled the question so well that in the end he achieved his objective; finding at least one new client who hopefully over time will be profitable for his consulting proactice. So far I am entirely satisfied with my decision to use his services.
Bill's success with me in part reflects the reason it is so hard to find great sales representatives -- he communicated rightfully that he is a peer and not "just another salesperson". But unless you have a partnership or employee ownership plan, your organization can have only one owner, and even if the employee owner firms, there still can only be one boss.
Add to the mix the challenge that in the professional fields like architecture and engineering, sales may sometimes seem beneath the dignity of professional values and objectives, and in the world of contracting, the traditional approach is to wait for an owner to post a project and then rush like lemmings to bid for the work, hoping you don't bid so low that you lose by winning.
I am not going to be so vain to suggest a magic solution to the "finding great sales representatives" issue that continues to elude otherwise highly successful entrepeneurs. But I can suggest three concepts, none of which bat 1000, but together, when combined properly, can narrow the field.
Solution 1 -- You've got to try different things, and seize the opportunities when they arise.
A few months ago, for example, I noticed an offer on a local website for free advertising for summer students. I thought, "why not", and posted a simple ad looking for performance based sales representatives for our print and internet publications. (I have not had any luck with paid services that purport to offer 'great salespeople', however.) I received a few calls, none of which excited me, but engaged in my standard screening protocol. A young woman taking an advertising course responded. I had my doubts --her voice tone didn't seem too convincing -- but she descibed her success at a rather scammy direct sales outfit before she quit in frustration, and I decided it would be worth spending the $50.00 for my my Solution 2.
Solution 2 -- Be ready to administer a sales orientation/apptitude test.
I asked if she would be willing to take the salestestonline.com test. I buy these in bulk at $1,000 a set of 20 -- certainly the tests are far too expensive to be used casually, but I've found they are much less expensive than other testing services on the market, and the test is easy to line up and administer online and thus very useful for my remote business structure. Within a few hours my new candidate had taken the test, and the scores arrived right away -- she had achieved 8.5 out of 10 on the key (for my business) indicators of prospecting, closing and ability to work independently and without close supervision.
Solution 3 -- When you find someone great, hire or contract with them even if you don't have an opening.
Our new representative arrived on the scene at a time of a business crisis, and with much chaos around, it seemed entirely inappropriate to add to our labor force. But I remembered Solution 3, and we created a position for her. I gave her an impossible task, which in hindsight truly was impossible, and near the end of a two week trial period, almost was ready to dismiss her. But fate intervened, she won a reprieve, and the next day she indeed started doing the impossible'-- selling effectively and with such competence that even the most experienced representatives in our organization are amazed with her talent.
If you think you can ritualistically apply these solutions, you are certain to be disappointed. The sales test, for example, is an imperfect tool; I tried to validate it with some of my best representataives, and some of them flunked (and some of my best hires also failed; and some of the worst failures, scored really well.)
Most importantly, your business may not really need great salespeople -- if you are doing your work really well, providing excellent value and service, then you'll find your business grows naturally with repeat and referral business and without the need for any sales representatives.
* * *
I continue to believe that participation in trade groups and associations can be one of your best selling and marketing resources. From a marketing perspective, the groups you want to join are those of your clients and potential customers, but for peer input and networking connections -- especially valuable if your business operates in several local markets -- please consider the Society for Marketing Professional Services (SMPS), that focuses on marketing and sales for the architectural, engineering and contracting sectors. You may want to join a chapter in your area or if you are in Canada, join our small steering committee hoping to set up a Canadian branch of this successful U.S. organization.
mark | June 2, 2006
Our employment website, constructionemploymentnews.com, is 'live' but right now it is hardly the center of the universe in employment opportunity listings. In fact the only listing there is our own test listing!
Employment sites of course need a critical mass of listings and participation to be successful, and so we have a long ways to go. But we're doing something that will make it worthwhile for you. The first 10 employers listing their jobs will have access to unlimited free listings for at least one year; and everyone for the time being can have a free 15 day listing (and renew it as often as you wish).
Of course, the free listing offer is for 'real' jobs, not so-called business opportunities, MLM deals, or commission-only jobs especially where any 'investment' is required. (If you offer a commission sales opportunity and cover expenses and/or provide advance/draws, the listing is welcome). As well, we will restrain access from employment agencies. But otherwise, the listings are totally free -- and we aren't going to press you to buy anything.
For more information, you can visit http://www.constructionemploymentnews.com.
Employment sites of course need a critical mass of listings and participation to be successful, and so we have a long ways to go. But we're doing something that will make it worthwhile for you. The first 10 employers listing their jobs will have access to unlimited free listings for at least one year; and everyone for the time being can have a free 15 day listing (and renew it as often as you wish).
Of course, the free listing offer is for 'real' jobs, not so-called business opportunities, MLM deals, or commission-only jobs especially where any 'investment' is required. (If you offer a commission sales opportunity and cover expenses and/or provide advance/draws, the listing is welcome). As well, we will restrain access from employment agencies. But otherwise, the listings are totally free -- and we aren't going to press you to buy anything.
For more information, you can visit http://www.constructionemploymentnews.com.