Showing posts with label Management Lessons. Show all posts
Showing posts with label Management Lessons. Show all posts

Saturday, December 8, 2007

How to Reduce The Schmuck Factor

Anyone who has been in the workforce long enough has had the opportunity to work for, or with, someone who really didn't fit in, didn't perform up to expectations, and basically made you wonder if your employer received some sort of tax credit for keeping this individual employed. It is these individuals that we loving refer to as "Schmucks".

We all have Schmucks. If we are honest, we can agree that we all are subject to our temporary moments of Schmuckdom.


Based on the fact that, on average, 20% of the sales people generate 80% of the sales, the "Schmuck Factor" in most sales teams is higher than in the rest of the organization. Ever heard of "20% of Developers writing 80% of the code" or "20% of Client Supporting handling 80% of the issues"? Nope. Its just sales.

So where does it start? How do schmucks invade our teams, consume our time and resources, and still manage to under perform? Naturally it begins with the hiring process.

Hiring is the process of evaluating and projecting the productivity of human capital. One of the most common flaws is not having HR directly involved throughout the evaluation and hiring process. Most see it as an extension of the responsibility of those with little to no training in this area.

The sales manager hires the sales people, the VP of Development hires the programmer, etc. While these individuals have a level of mastery in their disciplines, that bears far less indication on their ability to evaluate talent than conventional wisdom would dictate.

Sales, Programming, and Hiring are all best executed when a team of professionals can come together and Plan, Prepare, and Execute on a strategy.

Conditions for Throwing the Schmuck Flag

While my track record is far from perfect on making hires, here a few items and practices that you can use to weed out the viable candidates from the next poster child for the Schmuckular Association of America.

Resume and Interview Red Flags

  • Long Periods of Unemployment

“I have been taking care of my sick mother/father/aunt/dog” is one of the most common responses you will see when there's a gap in employment.


  • Series of Short Term Jobs

Now you have to cut the candidate some slack with this one. In technology, mergers, acquisitions, and implosions are quite common. However if you are looking at a series of short-term jobs 6 to 12 months in length, and the companies are still around, that should be a red flag.


  • Many Unrelated Jobs in Work History

In close knit industries a really bad apple will have a tough time finding a job. So if you see someone go from widgets, to gadgets, to midgets in consecutive moves be aware.


  • Typos, Poor Spelling, Grammar on Resume

I'll admit it, Ive had a typo on my resume for a few weeks before someone clued me in. I'm a lousy speller and it just didn't catch my eye. For the record I had numerous professionals review my resume and it was my professional doc writer who caught the mistake.


  • Lack of Progression in Job History

“I have been an assistant bookkeeper for 20 years” = I haven't been promoted in 20 years.


  • Vague Descriptions, Rounded Dates

Can you imagine what the Enron team's resume's look like? “Worked for one of the fastest growing and dominate companies in the 1990s, then took time off to care for my sick father, mother, and aunt.”


Interview Red Flags

  • Late or Tardy without Legitimate Explanation
  • Dressed Poorly
  • Overly Cocky
  • Stresses Personal Beliefs Too Strongly
  • Overly Defensive
  • Perceived Vendetta Against Former Employers


A Lesson Learned

This guy comes to our team through a recruiter. The recruiter says that the candidate matches our "must have" criteria, but really doesn't share any additional or ancillary information or provide his "gut-feel" for the candidate. (Red Flag #1)

Given the candidate's background with one of our major competitors, we jumped at the chance to meet/hire him. We were a smaller, start-up and were practically salivating over the insight and competitive intelligence the candidate bought to the table. (Red Flag #2)

We flew the candidate in to our corporate HQ for an 11am meeting. He arrived, sans coat and tie and looking a bit disheveled. He explained that he spilled coffee on himself and he had to rush to the mall for a new shirt and pants. Looking back, and this will be important later on in the story, he smelled an awful lot like mouthwash.

The candidate spent the day in the office, meeting anyone and everyone under the sun. Everyone was impressed by his aggressiveness and take no prisoners attitude... we hired him immediately. We really didn't evaluate any criteria other than how aggressive he could be, nor did we do any background checking via personal networks, nor did we subject him to any standardized personality tests, because other than the overpowering aroma of mouthwash, the new change of clothes, and the demeanor that bore a striking resemblance to Al Pacino in the climatic shootout in "Scar Face", nothing seemed out of the ordinary. (Red Flags out the wazoo)

The biggest flaw in this process was us. The hiring team was so inexperienced and immature that there were numerous mistakes made based on sheer lack of expertise and alpha-male egos that dispelled any thought of asking for assistance.

Less than 12 months later the candidate would, as part of his retaliation for being fired, send a company-wide email that would eventually wind up on a blog.





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Tuesday, December 4, 2007

Signs You're Having a Bad Sales Meeting

With "Annual Sales Meeting" Season right around the corner, we decided to put together a list of those elements that make these meetings so memorable.


Thank you for those who contributed including our friends at www.linkedin.com

Pre-Game Show

  • Your boss wants to share a flight and makes you change yours to a much later one. Then on the last day, he comes in late and announces he is too depressed to carry on the meeting because his prized Corvette broke down and he has to write the IRS a check for $25K because he made too much last year. Then you try to catch an earlier flight, all to find out they are all booked. Then your flight is cancelled and you are stuck there for another day and have to take a 6:15 flight that next morning.


  • The sales book that was purchased, and then paid to ship to each rep, so that they could prepare for an engaging and productive discussion during the sales meeting, hasn't been opened yet

  • The meeting begins with bumper music at 90db, from Mariah Carey's late 80s hits, while the lame managers attempt to dance a Jim Carey version of hip hop

  • Ignoring the lessons learned about knowledge comprehension and retention, the opening meeting is highlighted with the phrase "We have every minute planned out....." or "we have a team building event every night!"

  • In addition to the joy of traveling around the world for 30+ hours only to arrive at a crap hotel. You are informed that you will be sharing a room with a local who is too cheap to pay for a cab ride home.

  • You have been asked to watch the movie "Boiler Room" in advance of the meeting - and to be prepared with suggestions on how to implement some of the "tips" you picked up in order to improve next quarter's results.


  • Entire management team dresses in drag during an opening session and attempts to sing a lame song or act out a skit.


Purgatory Factor

  • You drink as much water as possible not to cure hangover, but to force restroom breaks

  • The sales rep from a warm client is closest to the thermostat and has the rest of the hungover, bad coffee filled guys sweating bullets by 9:04 am.

  • The wireless is mysteriously 'down' in an attempt to make people focus.

  • Most intense discussion is around describing the rules of NFL to the British colleagues

  • You bribe select customers to call your cell during the role playing exercises with some 'urgent end of year cash they have to spend'

  • The VP is asking individual reps to talk about how they successfully closed business. There are more I's in the story than in roman numerals

  • You have strategically mapped out exactly how you are going to execute your new job search as soon as "The Role Playing Exercises" are complete and VP of Sales allows you to go home (roughly around 8pm)....and dont forget kids "We have a hard start time tomorrow at 8am so be on time!"

  • The meeting co-chair begins to doze off....


The Elephant in the Room

  • The Department of Corrections could have provided higher quality food and refreshments
  • A speaker opens and says “I hope I’m not going to bore you, but….” and consequently does just that with death by PowerPoint… slides full of words… which he dutifully reads to you… and if that it not bad enough he also has a monotone voice… however, it gets worse… by slide 6 you look at anything that might look vaguely interesting and notice in the bottom right of the slide the heart sinking words… “slide 6 of 122”
  • The CEO doesn’t stick around to see the presentations given by the directors of the departments
  • The host has to continuously explain how funny his jokes are.

  • The company is too cheap to hire someone to present Spin Selling and simply ask one of the directors to read the book and teach it.

  • The most compelling directive comes from a VP that proclaimed that in order too have an effective User Group meeting you must put out brochures so clients could take them.


After Hours

  • CEO of the company gets so drunk he starts to hit on the ugliest sales reps

  • Sales rep stays out too late, gets too drunk, winds up in wrong part of town, at the wrong time. Never heard from again. VPs are pissed because his absence really screws up the schedule for next team-building exercise.

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Tuesday, November 20, 2007

Lessons Learned From A 911 Call

A few weeks ago, at a neighborhood meeting, we had a man collapse, become unresponsive, and, in general, scare the holy crap out of all of us.

In short,the neighbor, Charlie, had what equates to a stroke. The following are the lessons that made themselves apparent and the series of events surrounding this emergency as they unfolded.

It is natural not to immediately acknowledge a bad situation

This situated started as I was walking to check on the kids who were playing in the yard adjoining the meeting, I noticed someone laying on the ground, face down. If I showed you a photo it would be quite easy to describe the situation and what was happening. However, as I was walking toward the person on the ground, I kept trying to convince myself that what I was seeing was not what I thought I was seeing. Surely this had to be an odd shadow or a kid playing a game with the others.

As I continued to walk, I was six feet from Charlie when his wife saw what was happening, and cried out. This was the confirmation needed for my brain to take hold of the situation. I jammed my hand into my pocket, retrieved my cell phone, and called 911.

How many times in our professional lives have we looked at a dismal situation and tried to avoid reality?

  • "I don't cold call, I only talk to important people"
  • "All I need is to close 40% of my pipeline and I'm good"
  • "The next bug fix release will help us drive revenue"

Challenges to you and your company's established position will come from areas that you do not expect, and from players with whom you are not familiar. It is extremely difficult to build and maintain a competitive advantage, and it is far too easy to lose it by not staying focused and having visibility to the events and circumstances that surround you.

You have to know what you don't know

I reached 911 immediately and described the situation to the emergency operator.

The operator began asking me a series of questions in order to evaluate the situation and to gather pertinent information that she would relay to the ambulance drivers.

"Name? Age? What was he doing when he collapsed? Had he had any complaints about not feeling well before he collapsed?"

The answers I delivered included "Charlie, mid-50s, no complaints but has a history with a heart condition."

Next question "Has he taken any medication this evening?"

I asked the wife. She replied "He's on heart medication, he's taken other medicines in the past. He could have gotten his pills mixed up."

You need to know what you don't know.

  • What is the profile of your typical customer?
  • Why do you win (and lose) deals?
  • How does your competitor drive 30% of revenue through partners and you can't?
  • How loyal are your customers?

"I don't know" can often be the smartest thing you will ever say - it gives you space to think, research, and gauge your colleagues without losing face, or leading someone down a path that will not bear fruit. Never be afraid to admit you don't know something. You can always learn and win, but if you lie, you will lose.

In a crisis, people panic and will put themselves first

With the ambulance on its way, the next question from the 911 operator was "Is there a Doctor or Nurse in the area?"

I yelled the question to our group.

Ms. Houlihan came up and stood next to Charlie. She announced that she indeed was a nurse, a few years retired, but unfortunately she just had knee surgery and could not not comfortably get down on the ground to check on Charlie.

On the ground you have Charlie, my wife who is keeping track of Charlie's pulse, Charlie's wife who is alternating between caring for her husband and freaking out, and myself with my ear to my cellphone communicating with 911. We all momentarily stopped and looked up her. You could tell by her tone she was used to throwing out the whole "knee surgery" ploy to generate sympathy, pity, and maybe cut in line at local buffets, who knows?

When times get tough, two groups usually emerge, those who seek solutions, those who complain about problems.

  • "Its sales fault, they are the ones responsible for revenue"
  • "You can't cut my department we are too important"
  • "We are too busy to do any extra, you get your team to do it"
  • "We just need to keep what we are doing"

Assumption is not a replacement for intelligence

As Charlie was loaded into the ambulance and the 911 operator bid me goodbye, I looked around for my kids - ages 8 and 10.

In the commotion they had retreated back into our house. I went inside to survey the level of trauma and try to calm them down.

I found them in my home office with my son playing on the computer. He seemed reasonably unfazed. He is 10, and he didn't really know Charlie at all, so I took this to be a reasonable response.

My daughter however was sitting on the love seat, crying softly.

I breathed a sigh, and sat down next to her. At eight years old, she is definitely the tender-hearted one of the bunch. She has cried after seeing a good puppy food commercial, so this was what I expected.

"Whats wrong honey?" No verbal response, but tears and sniffles.

Mentally Im trying to recall the sage advice from the parenting books on how to communicate with your children during a crisis. I start to panic when I draw nothing but blanks. I flash forward 20 years, a therapist's couch, my daughter, her escort from the correctional facility, and a shrink proclaiming "So your dad royally screwed you up that night, now we know!!!"

I try again.

"Honey, can you tell Daddy what's wrong?" Waiting for the obvious. A moment passes.

Finally, as she chokes back the tears she starts to speak "I was playing hide-and-go-seek and the other kids where playing freeze tag and no one came to find me!!!!" More tears.

Soooo, the whole neighbor collapsing on the lawn and being unconscious, no biggie, BUT, the fact that she spent 10 minutes crouched down in our shrubs, now that was problem.

How common is this in business, where we assume we know marketing conditions, customer preferences, or competitive threats?

  • "They have been our customer for 17 years, we know what they want"
  • "That company has never been a real threat to us, so we ignore them"
  • "Do you know who we are? We do not have to worry about things like that"

I think you would have found these same attitudes at Kodak, Delta, and General Motors.


Charlie is still recovering. We wish him and his family the best.

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Friday, November 9, 2007

From the Gate Keeper

In his book, "Swim with the Sharks" Harvey Mackay states that as CEO of his company he ranks the following two positions as the most key in generating revenue for any organization:

1. Vice President of Sales

2. The Office Receptionist

While the first is pretty obvious, he goes on to explain that the Receptionist, a.k.a. "Gate Keeper" has the power to set the tone of the business relationship. By being the initial contact for the majority of new and existing clients and business partners, their appearance, demeanor, and professionalism can have a significant impact.

In addition to being "the voice" of your company, the Gate Keeper often serves as the "filter" or "tie breaker" when it comes to new hires. If you have a borderline interview, the Gate Keeper can have the swing vote.

We are fortunate to have some words of wisdom from one of the good friends of the blog, Michele, who has graciously agreed to share her insight on the hiring process from the Gate Keeper's seat.

“Signs that your job interview is not going to go well” ….and this is before you even get past the front desk!

  • You did not bother to check the company website (or MapQuest for that matter) and print directions to your interview location and therefore you must call the company’s front desk and suck up the receptionist’s valuable time getting directions from her.
  • You arrive late and cannot remember the name of the person that is supposed to be interviewing you. You will have to play a game of “Name that Supervisor” with the receptionist till she figures out the name of your interviewer for you.
  • You have forgotten to bring a pen to fill out the application, thereby forcing you to sheepishly request a pen from the receptionist. (That look on her face is NOT one of concern, it is disgust at your most basic of faux pas.) If you DO forget to bring a pen, and the receptionist has to lend you one, make no mistake about it, it WILL be "THE RED PEN OF SHAME" and there will be a sweet smile as it is handed to you, with the claim there are no spare pens in black or blue. Going forward, the red ink will alert EVERY person with whom you interview, that you have committed the ultimate sin of not bringing your own writing instrument.
  • Then you ask what the date is……
  • You attempt to fill out the application but are interrupted by personal calls on your cellphone, which has rung out the most obnoxious tune because you forgot to turn the ringer off. (Trust me, the receptionist is NOT amused, she is annoyed by this.)
  • And finally, in the event that your nerves cause you to be a little more awkward than usual and you spill your coffee, clean it up. The Gate Keeper knows all, sees all, but is not responsible for your messes.


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Sunday, November 4, 2007

How to Reduce The Schmuck Factor

Anyone who has been in the workforce long enough has had the opportunity to work for, or with, someone who really didn't fit in, didn't perform up to expectations, and basically made you wonder if your employer received some sort of tax credit for keeping this individual employed. It is these individuals that we loving refer to as "Schmucks".

We all have Schmucks. If we are honest, we can agree that we all are subject to our temporary moments of Schmuckdom.


Based on the fact that, on average, 20% of the sales people generate 80% of the sales, the "Schmuck Factor" in most sales teams is higher than in the rest of the organization. Ever heard of "20% of Developers writing 80% of the code" or "20% of Client Supporting handling 80% of the issues"? Nope. Its just sales.

So where does it start? How do schmucks invade our teams, consume our time and resources, and still manage to under perform? Naturally it begins with the hiring process.

Hiring is the process of evaluating and projecting the productivity of human capital. One of the most common flaws is not having HR directly involved throughout the evaluation and hiring process. Most see it as an extension of the responsibility of those with little to no training in this area.

The sales manager hires the sales people, the VP of Development hires the programmer, etc. While these individuals have a level of mastery in their disciplines, that bears far less indication on their ability to evaluate talent than conventional wisdom would dictate.

Sales, Programming, and Hiring are all best executed when a team of professionals can come together and Plan, Prepare, and Execute on a strategy.

Conditions for Throwing the Schmuck Flag

While my track record is far from perfect on making hires, here a few items and practices that you can use to weed out the viable candidates from the next poster child for the Schmuckular Association of America.

Resume and Interview Red Flags

  • Long Periods of Unemployment

“I have been taking care of my sick mother/father/aunt/dog” is one of the most common responses you will see when there's a gap in employment.


  • Series of Short Term Jobs

Now you have to cut the candidate some slack with this one. In technology, mergers, acquisitions, and implosions are quite common. However if you are looking at a series of short-term jobs 6 to 12 months in length, and the companies are still around, that should be a red flag.


  • Many Unrelated Jobs in Work History

In close knit industries a really bad apple will have a tough time finding a job. So if you see someone go from widgets, to gadgets, to midgets in consecutive moves be aware.


  • Typos, Poor Spelling, Grammar on Resume

I'll admit it, Ive had a typo on my resume for a few weeks before someone clued me in. I'm a lousy speller and it just didn't catch my eye. For the record I had numerous professionals review my resume and it was my professional doc writer who caught the mistake.


  • Lack of Progression in Job History

“I have been an assistant bookkeeper for 20 years” = I haven't been promoted in 20 years.


  • Vague Descriptions, Rounded Dates

Can you imagine what the Enron team's resume's look like? “Worked for one of the fastest growing and dominate companies in the 1990s, then took time off to care for my sick father, mother, and aunt.”


Interview Red Flags

  • Late or Tardy without Legitimate Explanation
  • Dressed Poorly
  • Overly Cocky
  • Stresses Personal Beliefs Too Strongly
  • Overly Defensive
  • Perceived Vendetta Against Former Employers


A Lesson Learned

This guy comes to our team through a recruiter. The recruiter says that the candidate matches our "must have" criteria, but really doesn't share any additional or ancillary information or provide his "gut-feel" for the candidate. (Red Flag #1)

Given the candidate's background with one of our major competitors, we jumped at the chance to meet/hire him. We were a smaller, start-up and were practically salivating over the insight and competitive intelligence the candidate bought to the table. (Red Flag #2)

We flew the candidate in to our corporate HQ for an 11am meeting. He arrived, sans coat and tie and looking a bit disheveled. He explained that he spilled coffee on himself and he had to rush to the mall for a new shirt and pants. Looking back, and this will be important later on in the story, he smelled an awful lot like mouthwash.

The candidate spent the day in the office, meeting anyone and everyone under the sun. Everyone was impressed by his aggressiveness and take no prisoners attitude... we hired him immediately. We really didn't evaluate any criteria other than how aggressive he could be, nor did we do any background checking via personal networks, nor did we subject him to any standardized personality tests, because other than the overpowering aroma of mouthwash, the new change of clothes, and the demeanor that bore a striking resemblance to Al Pacino in the climatic shootout in "Scar Face", nothing seemed out of the ordinary. (Red Flags out the wazoo)

The biggest flaw in this process was us. The hiring team was so inexperienced and immature that there were numerous mistakes made based on sheer lack of expertise and alpha-male egos that dispelled any thought of asking for assistance.

Less than 12 months later the candidate would, as part of his retaliation for being fired, send a company-wide email that would eventually wind up on a blog.



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Tuesday, October 30, 2007

Signs Your Sales Rep is a Moron

Some sales-centric publications claim that 65% of sales people do not belong in sales. As a sales manager you wonder at times if that number is a tad low. However, as a service to our readers, we've put this quick reference list together to help you spot those 65%'ers in your organization.

Signs Your Sales Rep is a Moron
  • They talk more than anyone else
  • They try to create some remote, third-party connection with prospects. For example “Yeah, my cousin did time in your state. So we are like family.”
  • They claim that your solution can do everything, just name it. For example. “You want an open, yet proprietary architecture that will randomly reset the credentials in your enterprise single sign on layer? Oh heck, no problem.”
  • They know nothing about the prospect, their business model, or even the city in which the prospect is located, but pretend they do. For example “Valdosta, GA? Oh yeah, thats where they grow those onions. Its like a second home to me.” (Vidalia, GA grows the onions)

  • Their presentation is focused on the history of the company, the great things about the products and services, yet says nothing about how they will help the prospect or why really anyone should do business with your company. For example “Now that we are done with our three hour overview of our products for DOS, lets talk pricing”
  • They wont get off the phone even though the prospect has given valid reasons to support the claim that they are not interested. For example “Ok, I know that your bank really doesn't do anything with South American Derivates, but can you at least watch our demo?
  • They trash the competition, a lot. For example “Im not saying that your current vendor likes to skin the pelts off puppies, but have you ever seen a puppy around their offices?”