The Web Conferencing Blog

What Makes a Bad Leader?

Every leadership book or article that I have ever come across always focuses on top leadership qualities, probably the easiest way to look at leadership I suppose. Select a handful of top companies and their respective CEO's and see what they have in common. Jack Welch: ex-GE CEO, John Chambers: Cisco, Steve Jobs: Apple, Meg Whitman: ex-CEO EBAY, Jeff Bezos: Amazon, Warren Buffett: Berkshire Hathaway, and Larry Fink: Blackrock. Qualities or traits that most often come up: 

• Clear vision and forward thinking
• Hires the right people for the right roles
• Collaborative in vision development
• Establish benchmarks to measure progress
• Results-based
• Admits errors or mistakes
• Commitment to maintaining integrity across the organization
• Leads by example
• Communicative and persuasive
• Business and financial acumen

It would make sense than that bad leaders would be the opposite of the traits listed above. In a recent Harvard Business Review article by Jack Zenger and Joseph Folkman, they found this to be the case. More specific, the biggest difference between the best leaders and the worst was their energy and enthusiasm. No surprise that some of the best leaders are known for their "charisma" which in many cases can also mean enthusiasm and passion for what they are doing.

What I found interesting is criteria such as inexperience, lack of "proper" education and unproven track record did not appear on the list of worst leaders. Inversely, one could then conclude that experience, an MBA degree from a top program and a proven track record are not the important traits for the most successful leaders. (The one X factor for me would be an MBA. I just think to be a top leader, you need to have an MBA. My case is partially stated below:)

• Jack Welch: BS from University of Massachusetts and MA from University of Illinois-Champaign
• John Chambers: BA and Law Degree from West Virginia University and MBA in Finance and Management from Indiana University
• Steve Jobs: Reed College studying physics, poetry and literature
• Meg Whitman: BA Economics from Princeton and Harvard MBA
• Jeff Bezos: Computer Science and Electrical Engineering from Princeton
• Warren Buffett: a stint at Wharton, then to University of Nebraska at Omaha. Rejected by Harvard Business School. MBA from Columbia University
• Larry Fink: BA and MBA from UCLA

If you want to be a top leader use the list below and do the opposite! Again, everything on the list can be controlled. Nothing states, "Get 15 years of management experience, get an MBA from Harvard or Wharton."

It all starts with energy and passion, believing in what you are doing and exciting those around you to feel just as passionate. Don't accept mediocrity, raise expectations. Have a clear vision of where you are now and where you want to be in 3 months, 6 months, 12 months. Collaborate with others and flatten out your organization. Encourage people to take risks, to innovate and to brainstorm new ideas. Communicate openly and be transparent.

Source: Harvard Business Review , June 2009

Are You Missing the Boat?

Earlier this week I was talking to a customer about general corporate strategy and advanced planning. He told me that he and his team were making some very bold moves and doubling their efforts around sales and marketing. "We see lots of opportunity out there right now and we certainly are not going to miss the boat." I applauded their ability to take risks.

I started thinking about his "missing the boat" comment...

It's no surprise that during these interesting economic times, executives need to be more visionary and predictive of the future than ever. Pretty hard to do when the crystal ball is blurrier than ever. Even the great Warren Buffett recently said he could not have predicted the losses of some of the investments Berkshire Hathaway made. So what do you do?

My point is this...it's pretty crazy out there and very unpredictable yet why are there some companies that are 100% maximizing this time as an opportunity rather than laying low and waiting for the storm to pass? Why are some companies moving forward at twice the speed and other companies thinking it's best to put the brakes on everything? Why are some companies reinvesting in its employees with training and career development while others are not? I suppose it depends on your vantage point though I would contend that it really comes down to how much you believe in the long-term viability of your company and your employees, any company's greatest asset, the employees. The companies that are doubling down now and reinvesting in their employees are the companies that are taking risks, making bold moves and not missing the boat. These are the companies that will come out stronger than ever when things are back to "normal."

Is there a difference between taking risks and just being stupid? Yes, of course. Two examples of companies that took bold risks when the timing was not the best...though is there ever truly a best time anyway?

-Apple launched the iPod 6 weeks after the September 11th attacks on the World Trade Center.
-Kellogg doubled it advertising budget during the Great Depression while other "played it safe." Kellogg aggressively marketed their Rice Krispies Cereal. (The rest is history.)

I get the point that for executives it's the difference between "missing the boat" and "sinking the boat." Makes sense, risk vs reward, the fear and uncertainly of making a decision that fails vs making a decision that would have succeeded.

Is it possible to find something in the middle? Perhaps. How about we leverage times like these to get extra creative, to be more innovative then ever by listening to customers and really understanding what they need to be successful? How about we develop products from outside-in vs inside-out, where we cross our fingers and hope/think customers will find value in the new enhancements? What about creating new, uncontested market spaces where competition is irrelevant? Easy to do, certainly not. Possible? You better believe it is.

Exercising "Innovative Leadership" right now can be the difference between giving the green light on a bold new idea and watching it succeed or watching your competitors take all the glory and revenue because you took a pass.

Don't miss the boat...

Thanks,
David Chao
The Web Conferencing Expert

The Law of Success

A Man’s Mental Attitude
by Napoleon Hill

A man’s mental attitude in respect to defeat is the factor of major importance in determining whether he rides with the tides of fortune on the success side of the River of Life or is swept to the failure side by circumstances of misfortune.

The circumstances which separate failure from success often are so slight that their real cause is overlooked. Often they exist entirely in the mental attitude with which one meets temporary defeat. The man with a positive mental attitude reacts to defeat in a spirit of determination not to accept it. The man with a negative mental attitude reacts to defeat in a spirit of hopeless acceptance.

The man who maintains a positive mental attitude may have anything in life upon which he may set his heart, so long as it does not conflict with the laws of God and the rights of his fellowmen. He probably will experience many defeats, but he will not surrender to defeat. He will convert it into a stepping stone from which he will rise to higher and higher areas of achievement.

The subject of a positive mental attitude is so important that it not only claimed first position in the list of the twelve riches of life, but it had to be included as an important part of the principle on pleasing personality, and has been mentioned in practically every principle of this course.

A positive mental attitude is an essential part of the key which unlocks the door to the solution of all personal problems. It is the magic quality of this key which enables it to attract success as surely as an electro-magnet attracts iron filings.

The whole secret of the formula by which you may turn defeat into as asset lives in your ability to maintain a positive mental attitude despite your defeat.

This is no man-made rule. It is a part of the imponderable phenomena of nature through which man has been provided with the privilege of drawing upon that power known as faith. Faith and a positive mental attitude are twin brothers! Where one is found, there also will be the other. The two are inseparable. Faith is a power which cannot be analyzed by science, yet it is the greatest power available to mankind.

And the strangest of its qualities exists in the fact that it is free, equally available to the humblest person or the greatest. Recognize this truth and you will be well on your way toward the great estate of Happy Valley.

Source: PMA Science of Success. Pgs. 396 & 397.

 

Develop One Weakness, Makes All the Difference

When you are good at something, it's very easy to rely on that strength to get you through most situations. You know you are good at it an it's worked in the past. Don't fix if it's not broken right? I get this but often times, what once worked in the past does not work in the present. One needs to constantly find ways to get better and improve.

A colleague of mine is a tennis player and he's an excellent player. When he first started playing, he had a great forehand and used it all the time. Instead of developing a backhand all he did was take two extra steps to his left and hit a forehand: powerful, accurate, down the line, WINNER.

Over time, he realized that to progress his tennis game, he had to develop his weakness, his backhand. Doing this would require hard work, training, and practice. Note that he did not focus on developing all areas of his tennis game, just one vital component: his backhand. He did not worry about all his "weaknesses," just the immediate and most important one that would pay the highest dividends once he mastered it.

Turning a weakness into a strength provided him with a competitive edge. What better way to reveal a killer backhand when everyone is expecting a forehand!

In order to survive in today's business environment, you need to push yourself to get better and round out your skills by improving your vital weaknesses, one at a time. Focus on developing skills and behaviors that drive the greatest results. Change at a faster rate than what is changing around you. If change is happening faster than you can adapt, you will not survive.

Thanks,
David Chao
The Web Conferencing Expert

The Champion Creed

"I am a champion.

I believe in myself.

I have the will to win.

I set high goals for myself.

I surround myself with winners.

I’m cool, positive and confident.

I have courage. I never give up.

I’m willing to pay the price of success.

I love the struggle and the competition.

I stay relaxed and in control at all times.

I focus all my energy on the job at hand.

I vividly imagine what victory will feel like.

I am a champion and I will win."

Recently, I came across this creed. Can't exactly remember where I saw it or who authored this version of "The Champion's Creed" but it certainly resonated with me. Can you imagine the power of positive thinking and visualization by saying this every day before you begin your work day? Absolutely powerful!!

In my own words, I would also like to add the following comments to The Champion's Creed:

Have a clear vision. See the opportunity and go after it relentlessly.
Have the courage to see things through the tough times.
See obstacles as only temporary.Love whatever it is that you do.
Always give your best.
Practice like a champion.
Play like a champion.
Live like a champion.

Thanks,

David Chao

The Web Conferencing Expert

"Do more than is expected of you."

"Do more than is expected of you."
"Do more than is expected of you."
"Do more than is expected of you."

This is one of my favorite quotes from Napoleon Hill's "Think and Grow Rich," so I thought I would type it out three times to be dramatic. I've read the book multiple times and each time I read it, it's just as inspiring as the first time.

Some truths are just timeless, this is one of them. "Do more than is expected of you." Simple, to the point and oh so true.

Sales is not an easy job and it's not for everyone. Many people get lured into sales because it can be lucrative and prestigious. Most people growing up don't say, "When I grow up I want to be a sales rep!" It just doesn't happen. Like anything else, sales is an occupation that follows the standard Bell Curve. A majority of the sales reps are average. Then there are a handful of exceptional sales reps to the right of the curve and of course a handful of sales reps that probably shouldn't be in sales to the left of the curve.

What's the difference between these three categories of sales reps? The best sales reps have that burning desire to succeed with hard work. They will do whatever it takes. They do more than what is expected of them. Some many disagree and say that factors like experience, business acumen, salesmanship are the real main differences. I contend that these things can be learned over time.

A strong, solid work ethic and the burning desire to succeed is not taught or learned. It only comes from within and when it's unleashed it cannot be denied.

Michael Phelps did not win 8 Gold Medal because he started swimming at an early age (experience) or knew the mechanics of the perfect stoke (knowledge) or had the best coach. He won 8 Gold Medals because he was willing to do anything to get those 8 Gold Medals, even if it meant spending up to eight hours per day in the pool. If other swimmers trained 8 hours a day, I suspect Michael Phelps would have trained 12-14 hours per day. "Do more than is expected of you."

Every sales rep wants to be the best. Wanting to be the best and wanting to succeed is far different than doing whatever it takes and doing more than what's expected to be the best. Saying, "I want to be the best," is easy. Backing it up with hard work is what separates the best sales reps from everyone else.

Ask yourself if you truly have that undeniable burning desire to be successful. Are you one that goes above and beyond? Do you do more than what is expected because you want get recognition for your efforts or do you do this because you know that there are no shortcuts and that the greatest rewards are always the ones you worked the hardest for? Be honest with yourself.

The good news is that if you are a top rep, an average sales rep or a not so great sales rep, you and you alone have the option to change you mindset, step up your game and get better with strong, consistent hard work. 

"Do more than is expected of you."
"Do more than is expected of you."
"Do more than is expected of you."

Thanks,
David Chao
The Web Conferencing Expert

Product Knowledge Again?

How many times have you heard people tell you, "You just need more product knowledge, then you'll start to close more business." All I ever hear is how important product knowledge is. Yes, product knowledge is important but how about teaching me how to use the product knowledge to close business. Most companies do not focus enough on fundamental sales training and development. Sad but true.

For now, forget about the product knowledge brain dump, the speeds and feeds pitch that you normally do with your prospects. The reality is that if you're doing this, 1) you are talking to the wrong person, typically a non-decision maker who has zero access to money, 2) you are talking about you and your product when you should be focused on the prospect, 3) you are boring your prospect.

Rule #1: Always start your prospecting/qualification calls with questions about THEM. Don't talk about you or your product. Break the ice and establish rapport by getting them to talk about something they are familiar and comfortable talking about, THEMSELVES!

Rule #2: Provide concrete example of how your product will impact their business. Will it improve productivity, performance? Will it streamline processes? Most importantly, how will they PROFIT by using your product?

Rule #3: Storytime. You need to tell stories. People remember stories. Provide examples or testimonials of how other customers have profited. Customer testimonials are never used enough! Get them to visualize how they could benefit by using your product. "Mr. Prospect, imagine if..."

Rule #4: Understand THEIR "perceived value," not yours, THEIRS. We already know they need it. We already know they should buy it. Get them to talk about how they would benefit, profit, etc. Make perceived value realized value and you got yourself a sale.

The reason why sales reps resort to product knowledge during sales engagement is because it's what they were taught to do. We are simply relying on what we already know and are comfortable talking about. Heard this before from a sales manager? "Just tell your prospect that we can do all these things  and they will automatically buy." Product knowledge and product capabilities often gets overused because they are the easiest things to mention for differentiation purposes.

The very best sales reps know that they can change the "playing field" in a variety of different ways. The very best sales reps can create differentiation that are multi-dimensional compared to one-dimensional, IE, product knowledge/product capabilities. Everyone already does this! Be different!

A few things that are critical to your sales success:

1. Profit: Companies want to make money, not save money. Show them how they can make more money and you got a deal.
2. Perceived value: What matters is what they think about you and your product. Your opinion does not matter. Again, your opinion does not matter.
3. Proof: Back up your statements with customer testimonials, success stories in PDF, references. Show a video testimonial!
4. Service: Are you reactive, proactive, responsive? Are you fostering customer satisfaction or customer loyalty via your service? Satisfaction is just that, just enough to get by and in most cases, it's never enough. If you get customer loyalty, you have a partner and someone that will want you to succeed as much as you have helped them succeed.
5. Engagement: No engagement = no interest = no deal. If you have not broken the ice and established rapport in 15 seconds, you've lost your window of opportunity.
6. Likability and Credibility: The first sale in any sale is yourself. If they won't buy you, they won't buy your product. Are you perceived as an expert, do you sound like you know what you are talking about? Are you likable and credible?

So we have come full circle. Yes, product knowledge is important. Yes, you need to know your product to sell your product, however, the lesson here is to focus on your customer and to demonstrate creative ways they can profit by leveraging your product. Don't be one-dimensional. Move outside your comfort zone and become multi-dimensional.

Thanks,
David Chao
The Web Conferencing Expert

I Believe I Can Do It!

The other day I was playing with my daughter who is 2.5 years old.  She was trying to climb up some metal ladder rungs so she could go down the slide. After one attempt she said, " Daddy, I can't do it." I walked over to her, smiled and said, "I believe I can do it." She repeated what I said and laughed. Though she might not know exactly what it means I know it translates to her as, "Try it again and you'll do it."

It amazes me how sales professionals try to grow their careers with intensive product knowledge, courses on selling skills and negotiation tips, business networking skills, presentation and communication skills yet there is little focus on SELF BELIEF. This is the core, the heart of the most successful people.

Quick Tips:

• Write down your personal goals and career goals and have a date of when you hope to accomplish them
• When you accomplish a goal, have a mini celebration for yourself
• Ask yourself why you believe in things or why you don't, understand your belief system
• Read "Think and Grow Rich" from Napolean Hill or "How to Win Friends and Influence People" by Dale Carnegie.

Famous words from Napolean Hill, "Whatever the mind of man can conceive and believe, it can achieve."

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Thanks,
David Chao
The Web Conferencing Expert

Sales Strategies

In every sales engagement, you can take a variety of different approaches but in general they can be categorized as Direct, Indirect, Divisional, and Containment. Understanding the differences and when to use them will increase your win ratio dramatically.

The most common strategy is the Direct Strategy. It's the easiest because you simply try to overpower your competition by a 3 to 1 ratio, such as, product superiority, reputation, current customer base, etc. The crux with this strategy is that you need to objectively ask yourself, "Is my product clearly superior and if so, can I sustain its superiority?" Often times what you might think as superior is not the case in the eyes of the customer. The key is to understand that the customer's thoughts, ideas, perceptions of your product are what is critical, not yours. Typically, this is a features-based sales opportunity.

An Indirect Strategy is about changing the ground rules of the decision-making process and altering the buying criteria. A great way of using an Indirect Strategy is to get the customer to focus on the long-term not just on the immediate short-term. If you can broaden your customer's perspective on the scope of their needs and engage with the right decision makers, you'll win. An example is to not compare your product and the competition's one to one. If you do this, you are taking a Direct Strategy and unless you have a clear 3 to 1 advantage from your customer's perspective, you'll probably lose on price alone. With an Indirect Strategy you need to change the ground rules by demonstrating the importance of other things like training, technical support, financial stability, anything that gets the customer to think, "Yeah, that is important, I should have thought about that, I think I'm going to add that in." The more creative  differentiation you can create, the better.

The third strategy is the Divisional Strategy. It's the old, "Divide and Conquer," mentality. Just get your foot in the door and build from there. The key with this strategy is to accept that you are not trying to completely displace the competition. You simply want to peacefully co-exists with them by providing the customer with something that the competition cannot. It you deliver on that little something, you'll earn trust and credibility to grow the account. For some companies, this strategy is about becoming a niche player, having a narrow focus and excelling at it. When you think about Root Beer, you probably think about A&W Root Beer. A&W competes in the soda market against Coke and Pepsi, which represent the bulk of the market share. A&W is a small player in the soda market but they are #1 in the root beer niche. They will never come out with a competing cola product because that's a Direct Strategy and they do not have a clear 3:1 advantage. They cannot change the ground rules with an Indirect Strategy since soda is soda. With a Divisional Strategy, A&W captured a toe hold in the soda market and expanded their presence with a Cream Soda and Squirt, two other soda drinks that Coke and Pepsi do not focus on.

The fourth strategy is the Containment Strategy. The objective is to gain a "no decision" from the customer. A no decision is a win because you keep the competition from winning. Again, it's all about postponing a decision, not changing the buying decision as in the Indirect Strategy. Microsoft is one of the best at containment with their products. They will have a huge announcement stating that a newer operating system or a newer product with advanced capabilities will be launched in the future...normally in about 12-18 months. Their goal is to generate buzz, market awareness, and ultimately stale the customer from doing anything until they see the newer version or newer product. Microsoft Vista, Longhorn, even the XBOX 360 sound familiar?

Knowing when and how to maneuver a sales cycle with these four sales strategies is key. Adapting and being able to quickly change from one strategy to another is also important. Throughout the entire sales cycle be cognizant of your current standing, the competitive landscape, and if you are talking to the decision makers.

An excellent read is "The Art of War" by Sun Tzu.

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Thanks,
David Chao
The Web Conferencing Expert

The 6th Sense...Sales Sense

In my sales career, I have been fortunate to have worked with some of the best sales reps. It's always interesting to examine the characteristics of the very top performers compared to the average performers. What is the secret formula? Is it product knowledge, sales experience, vertical market expertise, asking the "right" questions, or having a defined sales process? Perhaps a bit of all of them is important, however, I think the 6th Sense, Sales Sense, is the differentiator between the very top performers and everyone else.

What is Sales Sense?

Sales Sense is having a sense of SELF. Understand who you are, what's important to you, what your goals are personally and professionally. Having a sense of self is critical since the projection of yourself is what buyers see and feel.  Many people have often told me that people buy from people way before they buy a product, service, brand, or company.

Sales Sense is having a sense of OTHERS. Understand other people's feelings and listen to what they say as this will help you craft impactful value proposition statements and questions that draw out information as to what is truly important. Understanding how people think, process information, evaluate risk, and if they are in a position to buy. Often times, sales reps jump the gun and ask for the business much too soon, only getting a firm, "We are not ready yet." Having a sense of others enables the best sales reps to know when to close because they know that a "Yes," will follow. Realistically, any sales reps can trial close since it's not very hard to ask trial close questions, it's knowing to ask and knowing when all the right pieces are in place. You know this by having a sense of others.

Sales Sense is having a sense of SITUATION. This is all about paying attention to the little details and not overlooking anything. Everything the prospect says is for a reason so listen. It's your job to advance the sales process forward with subtle control...by asking questions. The more questions you ask, the more two way communication you get. Concentrate on the situation not how big your commission check will be if you close the deal. Focus on the situation, things you missed, potential risks, competition.

If you have Sales Sense, you will win your sales engagements and become a top sales performer.

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