Posted by: Bill von Achen | July 18, 2011

The Best of 2011′s Best Practices in Q2

Believe it or not, 2011 is already more than half over.  So, I’d like to share with you excerpts from the five most popular Best Practices postings from the second quarter of 2011:

It’s Not Always About Price: The Value Proposition in Pricing Your Products (posted April 22nd)
“Perhaps no competitive issue raises greater concern among business owners than the pricing of their products and services. Charge too much and you risk losing business and market share to competitors. Charge too little and you might win more business in the short term, but you’ll reduce your profitability and potentially put your company at risk. No wonder setting and maintaining optimal pricing is such a balancing act.”  Read more…

The Importance of the “Important” in Business (posted May 26th)
“The distinction between the important and the urgent was articulated most forcefully for me years ago by Stephen Covey in his milestone book The Seven Habits of Highly Effective People…Yet, for many entrepreneurs, focusing on the important issues that will have the greatest long-term impact on their businesses remains the single biggest challenge that they face.”  Read more…

A Great Source for Potential Employees (posted April 19th)
“With our stubbornly high unemployment rate, you’d think that the task of finding qualified candidates to fill open job positions would be easy.  Yet, at our monthly Best Practices group meetings last week, the common concern expressed by a number of our members was the continuing challenge of finding good people to fill critical positions.  Then, on Thursday, I received the following note.”  Read more…

Lessons in Entrepreneurship from Glen and Ira (posted May 6th)
“My first exposure to real entrepreneurs was in the late 1980s, when I met Ira Barry and Glen Dash, at the electronics testing laboratory, Dash, Straus and Goodhue (DS&G). I worked for Glen and Ira for five years and, although I didn’t know it at the time, my experience at their three-time INC. 500 company laid the groundwork for my life-long fascination with entrepreneurs.”  Read more…

The Importance of Story Telling (posted July 4th) 
“It’s a shame, really, when smart people with so many important things to say end up reading the content on their PowerPoint slides.  We have important stories to tell.  But our use of conventional presentation tools reduces the power and resonance of those stories, and lulls our audiences to sleep in the process.”  Read more…

What are your favorite Best Practices postings from the past few months?  Let us know by posting your comments here.  Thanks!

Posted by: Bill von Achen | July 8, 2011

Fatal Mistakes That Salespeople Make

Let’s take a break from innovation (my theme in these messages over the past few weeks) and talk about something a bit more tangible and immediate to most business owners and executives. That is, how can we help ourselves and our salespeople to win more new business without giving in on price.

The adage “nothing ever happens until someone sells something” is a reminder of the critical importance of selling in building a successful business. Unfortunately, for many professionals charged with winning new business, the “art” of selling is too often reduced to a single variable, price. That’s because most of us firmly believe that price is the most important factor in every single buying decision, and we position our pitch to effectively address that concern.

Focusing solely on price diminishes the value of what we’re selling. If our only appeal to the buyer is the price of our product compared with competitive offerings, we effectively take our product’s most important assets off the table for consideration. This action has the effect of reducing our product to a mere commodity in the mind of the buyer, a commodity that’s readily interchangeable with seemingly similar products.

Focusing exclusively on price also narrows the conversation with the buyer. Instead of exploring and understanding the buyer’s needs and wants, and their real reason for buying, making pricing the centerpiece of the discussion cuts short the discovery process. It also curtails the potential opportunity to expand the scope of the sale beyond the initial customer inquiry.

Of course, there are many products in the marketplace for which price is the only significant differentiator. For example, gasoline that’s a dime per gallon cheaper at the service station a block or two out of our way is usually all the incentive most of us need to justify a slight inconvenience. But when it comes to most of the purchasing decisions we make in business, price is only one of several factors, and it’s almost never the most important one.

In his book, The Secrets of Power Selling, sales consultant and trainer Kelley Robertson talks about the misconceptions about price in buying decisions, and identifies other key mistakes we make when engaged in the selling process.  Here’s a brief list of the most important ones:

1. Falling prey to the myth that all of your competitors are cheaper
2. Not asking enough high-value questions
3. Failing to establish the value of your product, service or solution
4. Negotiating with those who aren’t empowered to make buying decisions
5. Making too many assumptions about the buyer’s needs and motivation
6. Not listening enough
7. Talking past the sale
8. Making concessions without getting something in return
9. Failing to determine your walk-away point
10. Allowing your ego to get in the way

What mistakes do your or your salespeople make in your business development efforts? How do you communicate the value of your products and services with customers in competitive situations? And what steps do you take to avoid engaging prematurely about price in discussions with prospects? Share your thoughts and ideas by posting your comments here. Thanks!

Posted by: Bill von Achen | July 4, 2011

The Importance of Story-Telling

Two weeks ago, I was in Belfast, Northern Ireland, attending the 15th International Conference on Thinking, and talking with business leaders, researchers and teachers from around the world about the insights I’ve gained about thinking from 15 plus years of experience in facilitating CEO peer groups.  It was a great conference and a rich learning experience, and I’ll be sharing in future e-mails some of the many things I learned.

Today, however, I want to talk about the art of presentation and the importance of story-telling.  Throughout our travels in the Republic of Ireland and in Northern Ireland (which is technically part of the United Kingdom), we rediscovered the long-standing importance of story-telling to Irish heritage and culture.  We found it in the wonderful museum guard in the National Gallery in Dublin, who responded to a simple query with wonderful stories about the Queen’s recent visit.  We found it in the Catholic taxi driver from East Belfast who drove us through the Catholic and Protestant areas around the city and told us illuminating anecdotes about Belfast’s troubled past and uncertain future.  And we found it even among the wait staff in every bar and restaurant we visited, who regaled us with stories about their families in the United States as if we were old friends,   

Against this rich, colorful backdrop, I was struck with the uniform drabness of the presentations at the Conference.  By that, I’m not referring to the content of the presentations (which ranged from good to over-the-top outstanding), but to the unimaginative use of presentation tools.  Of the 12 to 15 different presentations I attended during the week, only one presenter used Prezi (www.prezi.com), the new multidimensional tool for PowerPoint that engages viewers in an unexpected and potentially ground-breaking way.  The rest (including me!) used plain-old PowerPoint (POPP!), which more often served as a crutch for the speaker than a tool to effectively illuminate important concepts for the audience.

(Interestingly, the most compelling presentation was the keynote given by famed educator Edward De Bono.  DeBono used a decidedly low-tech overhead projector, and hand-drew dozens of simple but rich illustrations throughout his 45 minute presentation that amplified his key points as he talked!)

It’s a shame, really, when smart people with so many important things to say end up reading the content on their PowerPoint slides.  We have important stories to tell.  But our use of conventional presentation tools reduces the power and resonance of those stories, and lulls our audiences to sleep in the process.

Upon my return from Ireland, I had lunch with a client who raved about a keynote address given at a recent marketing conference by Nancy Duarte, who runs a presentation consultancy in California.  Nancy’s book, Resonance, addresses this very point about the importance of story-telling in helping to connect people with your ideas.  You can learn more about Nancy and Resonance at www.duarte.com

Tools like Prezi and books like Resonance are great resources to spark our thinking about how we can use story-telling to more effectively communicate our ideas.  But what else can we do to become better story tellers?  What tools and techniques can we use to fully engage our audiences?  What’s worked well for you, and what can be improved?  Share your thoughts and ideas by posting your comments here.  Thanks!

Posted by: Bill von Achen | June 17, 2011

How Has Innovation Shaped Your Business, Part 2

Earlier this month, I suggested that innovation comes in all shapes and sizes, and that it happens in business almost every day. I asked our readers for their insights into how innovation has shaped their businesses.  I followed up on this subject in this past week’s Best Practices CEO peer group meetings, and I’ll share with you in a future posting some of the interesting insights that came out of those discussions.

In the meantime, one of our group members, Doug Youngen of Triumvirate Environmental, raved about a 20 year old segment from ABC’s Nightline about the development of a new concept for a shopping cart by the idea consultancy IDEO.  While you may not like the design concept that emerged from the IDEO team’s five intensive days of work, the video shines a light on the nuts and bolts process of innovation at work.  It also contains a number of suggestions on how to foster innovation and creative thinking.

You can view the short video (it’s only about eight minutes) by going to our Resources page and clicking on the first link uder the heading “Innovation.”

What does the IDEO concept teach us about innovation.  What lessons can you apply to stimulating innovation at your company?  Share your thoughts and ideas on these questions here.  Thanks!

« Newer Posts - Older Posts »

Categories

Follow

Get every new post delivered to your Inbox.