Provocative Propositions

In the hyperactive and challenging world in which we all live, it is becoming harder and harder for business leaders to find time to read, reflect and gain insight from the many valuable sources at our disposal.

In "Provocative Propositions", The Beacon Group attempts to fill that void by offering our opinion, often rather pointed, on a wide array of issues we believe are relevant to leading a modern organization.

The articles are catalogued into 12 categories so you can quickly and easily find a topic of particular interest. We then offer three easy steps under the heading "In Our Opinion" to help business leaders take action on the key themes.

Simply click on the category and read away.

The Customer Imperative
It’s not enough to have a good product. It’s not enough to simply push that product on the market. Organizations need more in today’s harsh economic climate.

Author Ram Charan in his book “What the customer wants you to know”
doesn’t usually write about sales. In fact, he doesn’t study the sales profession on a full time basis at all. Yet, the ideas he puts forward in this book can be applied across organizations and can reshape the way you perceive your business.

The Fact is you may have the best products in town, but still be losing market share in your industry. Maybe you’re scratching your head and wondering how you will survive this economic downturn.

The Problem is your people – and I’m not just talking about salespeople – may be having trouble helping potential clients understand how your products create value.

The Outcome is that your company is losing deal after deal. Your people don’t understand why and you don’t understand why.

The Solution is for your employees to ruthlessly gather information on your clients, learn their industry inside and out and learn as much as they can about the real advantages your product delivers. This isn’t about smooth marketing pitches. Everyone has to be involved.

Value Creation Selling

Your company’s approach may be outdated.

Likely, your employees are focused on discovering a customer’s need and creating a solution for that need.

What’s wrong with that?

Well, you probably aren’t digging deep enough to actually discover what the consumer’s problems are. In turn, you wouldn’t know how they affect them or if the problems are significant or not. How much does it cost them in lost revenue? You wouldn’t know.

When it comes down to it, a supplier tries to create value for a company and then take a share of that value as profit for itself. But, if your people don’t understand the value your product offers… Then what?

What so many leaders fail to understand these days is that suppliers are no longer in control. The consumer has choices. They can look things up on the internet and there’s likely more than one supplier in your industry. Employees are not order-takers that just process calls for purchases. Your employees are ambassadors that need to understand your product and the client’s needs – very, very well.

Many managers struggle with this, because they are so focused on their own company and its results. It’s not about your company anymore.

“The heart of the new approach to selling is an intense focus on the prosperity of your customers. This is a radical departure from what most salespeople and selling organizations do. The entire psychological orientation is shifted 180 degrees. No longer do you measure your own success first. Instead you measure how well your customers are doing with your help,” argues Charan. Quite the departure from the way we see things today.

Business Acumen

What’s becoming clearer and clearer is that companies out there need to pay more attention to hiring the best talent.

This new sales approach that Ram Charan proposes means that each individual employee and sales person becomes a team leader of various resources to identify a client’s problems. It requires that people in the field have P/L abilities and that they possess some level of business acumen. This is where the role of HR comes into play in identifying talent that actually understands the business world. You don’t want drones working for your company – even in places where you don’t think it matters.

“The salesperson who can execute this approach is transformed into a potential general manager, with all the decision-making, analytical, leadership, and profit and loss (P&L) responsibilities that are part of that job”, says Charan.

The value of taking this approach is quite obvious.
  • Your company will be able to achieve higher margins on its products.
  • Your clients will be more loyal and more committed.
  • Going through all the effort to find the right people who understand how value is created within companies will protect you from competing organizations who may not want to engage in intense talent attraction and retention projects.

In Our Opinion
The Beacon Group’s Advice for establishing value creation selling in your company

Teamwork - Employees, and especially sales people, need to start seeing themselves as managers with several other team members at their disposal to make a diagnosis and identify a client’s problems.

Don’t dismiss - Everyone on your team can benefit from this. Some managers may think that industries such as retail or maybe manufacturing don’t use value creation on the frontlines. You may learn, to your surprise, that Apple employees use similar probing and prodding elements in their frontline retail sales pitch when they speak with customers.

Take the focus off yourself - Instead of asking employees how much they contribute to your company’s success, ask them to identify how much they can contribute to the success of other potential clients. Get employees to become passionate about this way of measuring value.
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