The sales team, more than any other functional area of the business, needs to work well.  If they don’t, all other functional areas of the business have nothing to do.  So with that in mind, a group of owners recently discussed what some critical elements are to building a strong sales team.  There are five that rise to the top.

Don’t hire potential – only hire results.  This element speaks to a critical step in constructing a sales team – who is on it.  Too frequently a hire is a compromise — settling on someone who has the potential to be successful.  Don’t hire for potential.  Doing so leads to frustration and waiting for results.  The optimal course of action is to hire someone who has actually been successful instead of someone who might be successful.  This course of action will probably cost more, but the short-term cost increase will lead to a much stronger long-term impact because the results will be there.

Honestly evaluate existing team members.  Identify the comfort level for each current salesperson in terms of compensation and working style / environment.  Their individual comfort level is usually the level they will rise to or settle on.  Leadership can then determine if production at “comfort level” is sufficient for the company to reach and exceed its goals.  The issue here is one of alignment.  You want to align people with objectives and identify where there are mismatches.   Determine the gaps between an individual’s aspirations and the roles and expectations you have for them.  Where gaps exist take corrective action to close them in the form of an additional hire, improved performance or replacement.

Don’t look to a compensation plan to motivate behaviors.  Numerous studies identify what motivates people – particularly what motivates them in the workplace.  Money was not at the top of the list.  The top motivators are often the work environment, the level of respect and value afforded someone, and co-workers.  Money usually ranked no higher than third, often coming in fourth or fifth.  Compensation plans help individuals determine minimum levels of acceptability for a job.  Can I make enough money here to be happy?  If I can, then I’ll look at the rest of the factors.  For the employer, compensation plans are best at minimizing risk.  If I make a bad hire, what is my exposure?  How long do I have to carry this person before the company realizes some results?  Do not look to compensation plans to create results.

Establish sales tracking and accountability standards, and use them.  Selling at its most basic level is a numbers game.  There are intricacies in the sales method and these intricacies need to align with the skills of the salespeople.  However, measurement and results are the bottom line.  Establish a sales activity plan for individuals and the team on a daily, weekly, monthly, quarterly and annual.basis.  Track results and establish accountability from everyone in relation to the plan.

Post sales results in a public place to create a competitive environment.  Successful salespeople are competitive by nature.  They like to win.  They win deals.  They create win – win scenarios.  They achieve sales goals.  They win incentive programs, trips, bonuses and plaques for their wall.  Internal sales competition can and should be friendly since everyone is on the same team.  If done well, this type of competition will spur greater achievements.  No one likes to be last in relation to their peers.

Have realistic expectations in building your sales team.  Recognize the traits and characteristics that make-up a winning salesperson.  Hire successful people in order to produce successful results.  Lead the team and hold them accountable.  When all of the pieces come together, the entire organization gets very busy.

When you are looking for a Peer Board of Advisors, you are basically looking for a group of close friends with whom you can be honest and expect honesty in return. That’s a tall order. First, honestly requires trust and comfort. That takes time. Honesty also requires intimacy; knowing the person beyond just the surface knowledge that they like golf or fishing. That takes time. Lastly, honesty requires a safe environment. To share honestly and openly, one needs to know that the climate of the room is safe; free from power trips, and not mired in discount and revenge cycles.

Like I said, a tall order. But not impossible. Look for the following 4.5 things when you want to form or participate in a Peer Board of Advisors.

Who — The peers with whom you participate are the beginning and the end of the factors that will impact success. A strong Peer Board of Advisors is all about the relationships among the members. Everything else is just a supporting element. A well-matched peer is someone who is in a similar but not identical place. Goals align, challenges are relatable, and empathy is easily accessible.

How – How the group manages itself is the foundation for the climate of safety and freedom members need to express themselves. If you need a bunch of rules to make something work, in all likelihood the participants are not ready to work with each other. Rigidity by its very nature excludes options. In a Peer Board of Advisors you want to tap into the depth and range of experience and expertise each member brings to the table. Rules of Order automatically limit the ability to access all that someone has to offer.

Responsibility – Participation in a Peer Board of Advisors is a commitment to every member in that group. Before agreeing to participate, each member needs to be absolutely clear about what that commitment means. Most importantly, it means sharing of oneself. As soon as some members limit themselves and do not share, other members instinctively limit themselves as well.

Facilitation –Do not run the Peer Board of Advisors without outside facilitation. And do not use a facilitator that is not fully trained on how to facilitate a meeting. A skillful facilitator recognizes that facilitation does not mean an agenda, timeline, and making sure everyone gets an opportunity to speak. A few tries at it and pretty much anyone can write an agenda and adhere to it. The facilitator’s role is to set a climate of interaction, ensure participation, and enable opportunities for members to receive value. The best facilitators are tuned into the people and the relationships – how they are interacting and whether they are on the positive or negative side of contributing to and receiving value.

These are the four major elements for a strong Peer Board of Advisors – the people, the process, the sense of responsibility, and a skilled facilitator. The one-half element is everything else. That includes locale, meeting notes, social atmosphere, connections outside the meeting, and other resources. And all of these elements should fall into place if the four critical elements are firmly established.

A member of Peer to Peer related a story this morning that shows the power of relationships. He had been doing business for about a year with a client in Massachusetts. It was good business, but not as much as it could be. Then, he and his fellow Peer to Peer members had a conversation about the power of developing real relationships with people instead of just knowing each other and doing transactions. He decided to try it with his client in MA.

Last time he saw the client he didn’t talk about business. Rather, he found out about the person with whom he was doing business. In the course of the conversation they each discovered a shared passion for fast cars, and the fact that each owned a vintage “really fast” car. He got to drive his client’s car, and is showing up with his car next time he visits. Oh by the way, he got some new business as well.

Another member who was in the same Peer to Peer conversation tried the same thing with a new prospect. He got to know the prospect and helped the prospect get to know him. Who they really were, what their passions were, and what their goals and aspirations entailed. At the close of the conversation the prospect said that “you have spent more time with me today than my current provider has spent with me in the past five years”. Our friend is bidding on the business. My bet is on him to get it.

It’s all about the person, it’s not about the product or service. That stuff will come out and be discussed. And when it does it will be in the context of solutions that the prospect or client is asking for, not things you’re trying to sell to them.

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Don’t “Whack-A-Mole” – When it comes to marketing you can’t be reacting.  You need to be proactive and to have consistency in what you do.  Recently an owner, while talking with the peers in his group, made the comment that all of us consistently market ourselves.  But, when the group was asked the question – How many have a marketing calendar? – only one answered yes.

Consistency and frequency with marketing is key to success.  If you want to establish a brand presence and trust with prospects and the marketplace as a whole, you need to have consistency with what you are doing and communicating.  Consistently marketing is one thing.  Marketing consistently is more accurate and appropriate.  Establish a set of programs and a calendar, and implement it.

What is the primary source of your new business? Advertising? Direct marketing? Web-based marketing? Networking? Direct sales?

A group of ten business owners were talking about this during a recent Peer to Peer Advisors meeting. After a long and sometimes boisterous discussion, everyone around the table agreed that the #1 source for new business is referrals.  The referral sources varied, but the most frequent sources were customers, vendors, employees, personal friends, and business acquaintances.

We logically concluded that building this web of relationships should be the #1 marketing priority for any business.  The $64,000 question is – How do you build and sustain a powerful web of business relationships?

The answer is simple – How can I help you? That’s it.  If you approach every relationship with that frame of mind, you will build strong relationships.

Building relationships is not networking.  Networking is the “in” thing to do.  Unfortunately, networking is treated as an activity. Go to an event, meet people, describe who you are, ask what they do, and exchange business cards. Possibly meet outside the meeting. All the while, you’re asking them for introductions, and they’re asking you for introductions. Mentally on some level you’re keeping score.

Building relationships is almost the direct opposite of networking.  Think about the most successful people you know.  They don’t network.  They build relationships.  They don’t ask for help. They offer it. Long term successful relationships are founded on giving — finding ways to make other people more successful.

So let me offer some thoughts and ideas to consider as you build strong relationships.  First and foremost, be authentic.  The quick-hit networking fiend comes off as transparent.  They’re out for themselves, and that becomes quickly apparent.  False front facades lead to short term relationships.

Second, follow through. Don’t offer help to someone unless you really mean it. Your actions will always speak louder than your words.

Third, don’t keep score. It doesn’t matter. What matters is the building of relationships. Relationships founded on a genuine desire to help someone. If you approach your relationships with an authentic desire to help, you will receive help in return. It’s human nature. People like to help each other, and they feel good when they can do that.

Next, be goal oriented.  Set specific goals on what you want to achieve, and assign each goal a specific time frame. Referencing your goals, identify people who can help you reach them. Who are they? Where are they? How can they help? Ideally, identify a person with whom you would like to connect within the next 90 days.

Then get active. Attend events where the opportunity to meet key people might present itself. Research your list and find connections (Google them – it’s simple and it works). Look to the people you already know, and ask them if they can connect you to the people you would like to meet. Reach out through warm introductions, articles of interest, or books they might like to read. Use online social media tools like LinkedIn.

Finally, be respectful of your relationships. In today’s hectic climate, time is the most precious commodity. If you offer someone help, or are willing to make a connection for them, be respectful of the person you are connecting. If appropriate, check first to be sure the person you’re connecting with has the time to help.

In today’s highly competitive and rapidly moving global economy, it’s time for companies to innovate for survival.  Identify and follow macro-trends, and then get creative in how you service them.

Inc. Magazine (www.inc.com) had an online article on January 26^th (The Best and Worst Industries of the 2010s) about the 10 best and worst industries for the next decade.  The source for their information was IBIS World (www.ibisworld.com), a company that tracks trends and patterns in over 700 industries worldwide.  For most companies, but especially manufacturing companies, there is a lot to learn from the lists.

Let’s begin with the projected worst performing industries.  Six out of the ten industries are manufacturing.  Number 2 on the list is Tank & Armored Vehicle Manufacturing.  That one’s okay with me.  Numbers 8, 9, & 10 are Laminated Plastics, Synthetic Fiber and Wire & Spring Manufacturing respectively.  For me, that’s not okay.  These are traditional manufacturing sectors who are watching their traditional high volume product runs disappear.

Let’s look at the best performing industries for the next ten years.  #1 on the list is Voice over Internet Protocol Providers (VoIP).  Ten years ago, VoIP was virtually non-existent.  Biotechnology (#3) and Recycling (#9) are two other strong growth industries.  Other contenders are industries serving the aging Baby Boomer generation, specifically Retirement and Pension Plans (#2) and Trusts & Estates (#7).  Other technology sectors predicted for strong growth are eCommerce (#4) and Search Engines (#8).

As to be expected, the growth industries reflect the changing and burgeoning trends in our culture.  Technology, Hi-Tech Health, Environment, and Financial Security are all dominant trends in the world today.  And that’s what attracts the money.  Isn’t Capitalism Great!  It identifies a void or need and quickly moves in to fill it.

For manufacturing industries that are on the decline, it’s time to get creative and innovative.  I know one steel processor who reinvented what they made to serve the solar industry.  A non-existent product offering 5+ years ago now represents a strong percentage of their revenues.  For any manufacturer in a flat to declining industry, look at where trends are going, and the growth industries that follow them.  Reinvent what you do to service those growth industries.  And start today.  Because there is someone halfway around the world who is doing exactly that – serving the future.

I have the distinct pleasure each month to talk to scores of business owners.  I learn a lot.  One of the things I recently learned is that counter-intuitive thinking spurs growth (some may call it crazy thinking).  And admittedly the ideas did at first glance sound crazy, but they work.  So, if you want to grow your business — Get rid of customers — Get rid of products — Raise your prices.  

Get rid of customers.  A commercial printer went from $8M to $12M in revenue in two years while reducing their customer list from over 2,200 to about 240.  Net profit increased by 5% in the same time frame.  A web development company has almost doubled in size, and they are reducing their client list from 300 down to 30.  

They built focus into what they were doing, paying attention to the customers that were the most profitable and the best match for the value the company had to offer.  The printer paid attention to large volume clients instead of everyone who needed printing.  The web development company focused on customers that needed sophistication in the back-end of their site, whether it was online shopping or sophisticated relational databases.  

Get rid of products.  Just because you can offer something doesn’t mean you should offer something.  The most successful businesses own a singular place in the minds of customers.  They offer one thing that the customer recognizes them for, and they dominate that space.  

Foot Locker is athletic shoes.  Cole Haan is high end shoes.  Starbucks is premium coffee.  Dunkin Donuts is everyman’s coffee.  Victoria’s Secret is sexy undergarments.  Hanes is comfortable undergarments. 

Understand what you are really good at; as Jim Collins said in “Good to Great”, what you can be the “best in the world” at.  Focus on that, and the customers who would value it.  Get rid of customers who aren’t in that category.  Get rid of products and services where you can’t be the best.  

Raise your prices.  The key to success with a price hike depends on two things.  One, don’t delude yourself.  You have to be very good at what you do and target customers who value that.  Verify this.  Two, there should be either controlled production or limited production capability.  Without a possibility of scarcity of product, demand will never outpace availability.  

There was a real estate developer in South Carolina who built a Tom Fazio designed golf course, surrounded by very high-priced homes.  Every time the demand for building lots flattened, the owner announced a price hike on building lots.  This produced a spike in sales at the lower price, and the price point for future sales was automatically higher.  He had a limited inventory, and created demand for the product tied to price. 

Sometimes it is worth it to go against your intuition.  Focusing on the right customers with the right products, and setting value based pricing, does produce sustainable and profitable growth.  Hmmm, maybe it’s not as counter-intuitive as you might think.

Two events in the past week have given me hope.  In CT our good friend Oz Griebel has announced his candidacy for Governor.  In RI Governor Carcieri has appointed our good friend Karl Wadensten to the Board of Directors of the Rhode Island Economic Development Corporation.   Both of these events give me hope because of the type of leadership Oz and Karl demonstrate and practice every day. 

Under Oz’s leadership The Metro Hartford Alliance has grown into one of the most influential Chambers in the state.  But it’s not Oz that did it (and he’ll quickly agree on this).  The power of The Alliance came from the passion and dedication of the people there.  Oz promoted an environment where collaboration and commitment, focused on specific goals, produces great results.

With Karl you have one of the pre-eminent practitioners and evangelists for the power of Lean Processes and Lean Thinking.  At Karl’s company VIBCO they have embraced Lean and produced nothing short of phenomenal improvements and growth.  The most exciting and energizing thing about VIBCO is that all of their gains came from their people.  Collaboration, creativity and innovation are in the DNA of the workforce there.

Now both Oz and Karl can bring their business sense and commitment to collaboration to the State Level.  Even if a little bit of their approaches gets injected into a political system that is currently polarized to the point of ineffectiveness, then the sister states of CT and RI will be the beneficiaries and the winners.

Stop competing and start collaborating – it will improve your success and accelerate the economic recovery.

We all know that business is competitive – it’s bred into us.  We compete from a very early age, be it school yard games, organized sports, or many other aspects of life.  In this economic climate, the competition is even more acute because there is less spending and more companies attempting to capture those fewer dollars. 

We also know that contrarian thinking often works well in tough economic times.  For example, while everyone else is tightening down, you go on an acquisition spree.  Or, go against the norm and aggressively market your firm in this time of less spending.  Or, introduce new products and services that further your reach and value in the marketplace. 

Now, bring these two apparently disparate trends together – be contrarian and don’t compete, but rather collaborate.  Reach out to other firms and work with them as opposed to competing or remaining neutral to them.  Be honest, each of us only has a true handful of competitors.  Everyone else is just on parallel paths with us, trying to maintain sustainability and growth.  Work with your parallel traveling companions and share what you know, what works, what doesn’t work, and offer to help.  The value you receive from giving will come back to you in significant multiples. 

The entrepreneur is the engine that is going to drive this economy for the next 10+ years.  Entrepreneurial fervor is based on the need to control your world and pursue your dreams head-on.  This independence is great.  However, being independent does not mean being alone.  None of us can get there alone. 

Collaboration is the great multiplier to accelerate our recovery from this recession.  Be contrarian.  Collaborate.  Elevate your success.  Elevate the success of others.