Posts Tagged ‘sales’

The Chopping Block

Thursday, January 15th, 2009

Over the last several weeks at Northstar Ventures we’ve had to trim our costs and hunker down just like so many other companies. It’s been a gut-wrenching process. We’ve trimmed our staff by 35% and it’s not been fun for anyone…but it’s especially painful for those who end up on that chopping block.

As a CEO, the hardest part about making layoff decisions is trying to set aside emotion and make decisions based on performance and quantifiable value. I’ve found that in times like these, it actually becomes quite apparent who on your team is vital and who can be let go without much negative impact to the business.

Whether you are the decision maker about “who stays and who goes” or if you’re worried about ending up on the chopping block…here are some things to consider:

  • Top sales people stay. They keep fuel in the engine.
  • Unless paid on 100% commission, mediocre sales people who barely or rarely meet quota must go; now.
  • Management team members should only stay if their departure would cause the company to falter substantially. Otherwise, it’s time to say goodbye. One big salary can pay a lot of bills.
  • In a season of deep financial concern and widespread layoffs, those who remain should also sacrifice. Trim remaining salaries by at least 5%.
  • If you almost fired someone in the past, then they should be near the top of the list when considering layoffs. Unless they’ve made a dramatic improvement, they’re gone.
  • Marketing assistants (and assistants in general) are targets. Any worthwhile Marketing Manager (or Managers in general) should be able to absorb the tasks of an assistant until the situation improves.
  • Employees who have done a good job of pointing out and proving why they are a resource that you can’t do without should survive if at all possible. You want useful fighters in a time like this.
  • Employees who are barely noticed are usually barely noticed when you let them go.
  • Don’t underestimate creativity. A reduction in time or pay from three people can equal a full headcount reduction. Find out what people are willing to do before making final decisions.

In July, 2007, Inc. Magazine surveyed business owners on the topic of downsizing. I thought some of the results were insightful:

“Who did our respondents fire? Well, it didn’t always pay to be close to the boss: 12% fired their secretaries or assistant.

The most fired department: Sales and Marketing. Other endangered staff members, IT Specialists, Project Managers, and ironically, the Head of Human Resources.”

My friends, this is most definitely a season of change. It’s a season of scarcity and real lives are being affected.

In the end, these times make us stronger and new opportunities are created. In the end, we’ll be better for it.

Until then….Bosses, chop carefully, thoughtfully, creatively, and with compassion.

And to those who are worried about being chopped? Get out there and do everything in your power to drive sales or become a part of the business engine that’s expensive and difficult to replace. Be the transmission.

Check out this great post for more information about this topic:

10 Tips for Downsizing with Grace in Difficult Economic Times

Top 7 Survival Tips to Deal with Downsizing in the New Economy

Do You Squidoo?

Friday, May 25th, 2007

Have you visited Squidoo yet?

If not, you should.

Are you interested in finding a place where you can promote your business, your interest, your passion to a group of people who really want what you’ve got?

Then you’ve got to Squidoo.

By creating a “lens” on Squidoo you can cut through the confusion of search engines and bring interested users to your lens, and leverage the power of referrals and recommendations.

Squidoo replicates the word of mouth phenomenon that works so well in the real world.

So, if you think you’ve got something worth saying. Something that people will want to tell others about…then you need to create your own lens on Squidoo.

It takes about 5 minutes, it’s free, and it’s fun to put together. You’ll increase your profile, traffic, and generate income.

Here’s mine: www.squidoo.com/northstarthinktank/

If you’re serious about creating targeted traffic, this is something you need to do.

Check out these great posts for more information about this topic:

Seth Godin’s Squidoo vs. Google’s Knol: Information Platform Battle 2008
Squidoo Launches SquidBid for Ebay Addicts

Note to Entrepreneurs: You Can’t Please Every Customer, But You Better Try

Thursday, May 3rd, 2007
I’m about to air some dirty laundry here.Every company screws up from time to time. We screwed up recently and it really tweaked a prospective client.

Of course it’s ridiculous to think we can please everyone we market and sell products to. But, you better be willing to try. You better be willing to fight for your reputation.

Why? Two reasons. In this new warp-speed world of online opinion sharing, one sour consumer can make some very costly noise.  And, because at the end of the day, truly great companies earn their greatness through the power of positive word of mouth.

Today, just one determined dissident can do real damage to your reputation and your brand. Don’t take “that difficult guy” lightly. In our ultra-connected world of instant feedback, you can no longer afford to blow him off.

Let me give you a timely example: Just today I picked up a repaired phone at Sprint. From the outset, everyone there seemed snippy and icy. When the sales person handed me the phone I thought he was about to shake my hand, so I responded with an outstretched handshake. It turns out that I had misread his movement and quickly realized that he was probably just wiping some grease on his jeans! So there I was in that awkward, lonely zone, hand outstretched as we both made our split decisions. I decided to leave my hand “out there”. He decided to turn and walk off. Just left me stranded! I was not impressed and I have already told 3 people about that experience. Now it’s forever multiplied in this blog. Times have changed. (Look at how this unsatisfied customer made “noise”)

(If anyone has an example of how one or two sour clients caused big headaches, please share!)

So here’s my confessional. This is an email we received last week a few days after one of our programs was promoted to one of our internal lists:

“Hey Northstar!…Your program is not worth the email you sent out!  I have tried to contact your company on at least 7 different occasions and cannot even get the courtesy of a return call or email response.   Remove me from your list, as I only work with people with integrity and it is clear that your company does not align with this.  You are out of integrity with all that you preach.  I was a fan, but no longer. –N.”

Ouch! In the spirit of trying to reclaim lost trust, we got right on this…first step, just genuinely admit and apologize. No one cares about your excuses.

“Dear N, I apologize for your experience with the Northstar office. We have removed your name from our list. Please know that it was never our intention to be so difficult to be in communication with–and, I am sorry for your frustration. We were unaware of any breakdowns in our phones/systems/personnel–but, will now look into what happened and immediately make the correction. Thank you for bringing this to our attention.

If there is ANYTHING I can do for your to reduce your level of frustration, please don’t hesitate to ask–if I can provide it, I will. –Anya, Director of Curriculum”

Surely, this would settle him down. Um, no…

“Northstar…Thanks for the apology, but the service was so bad and frustrating that I am not interested in doing business with anything Northstar related. If you really care about changing lives through a value centered service, you will rethink your approach to customer service…

I am very glad I did not choose to enroll in your program for it truly would have been a waste of money when your organization did not even function at the level I function. If you were a high functioning athlete, would you be coached by someone who has never played the game? Or even simpler, someone who didn’t even show up at practice?–N”

Double ouch! The immediate temptation at this point is to fight back. Surely, the client is over-reaching now, over-reacting. Right? Perhaps.

Thankfully, Anya remained patient and fell back on trying to genuinely understand more about the client’s perspective…

“Dear N–Thank you, again, for your feedback. In order to correct this, it would help me immensely to know exactly what happened. What I know is that you attempted (on several occasions) to contact our offices and never received a return call. Things that would help are: Who were you trying to contact in response to what, specifically? What number did you call? Did you ever speak with someone, and if so, was this the person that failed to call you back? Any other information that would help me get to the bottom of this will be appreciated. And if you choose not to respond, I understand and wish you well.–Anya, Director of Curriculum”

Mr. N then suggested that we call him. I think we chose the right person to pay attention to. Based on his willingness to continue the dialogue, he was probably someone who was more than willing to be quite vocal about his discontent.

Anya made the call. Ate humble pie. Got really full on a bunch of humble pie. And finally won our little war for a heart and mind. Here was the final email from our formerly peeved friend:

“Anya–Thank you for the opportunity to vent my concerns and frustrations! It was a pleasure speaking with you and if you represent the level of service of the true team at Northstar, then I am certain you will produce the results promised!–N”

Time consuming, yes. A bit of a distraction, yes. But absolutely worth the time and effort. Turning a detractor into a fan is more valuable than an average client. This was time well spent. We learned several good lessons. And we’ll keep fighting for our reputation.

I suggest you do the same.

Check out these great post for more information about this topic:

The Power of the Customer’s Voice

Seven Ways to Resolve Customer Service Issues

Using Customer Feedback to Build Your Business

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