Archive for May, 2009

True Leaders Take Action During Good Times and Bad

Friday, May 29th, 2009

“Leadership is a foul-weather job. The most important task of an organization is to anticipate crisis. To wait until the crisis hits is already abdication.”

This quote from “Inside Drucker’s Brain,” Jeffrey Krames’ text on management icon Peter Drucker, underscores the role great business leaders must take regardless of the economic climate. True leaders anticipate the future and take appropriate action.

A recent discussion I had with a top executive at a large financial firm brought this concept into focus. The manager believed that without a doubt, installing a hiring assessment test would help the company hire better quality salespeople but he was worried that if he introduced the test, his performance would be scrutinized and it would cost him his job.

What I’ve seen in the banking world is that when things are going good, the company concentrates on capturing every last cent instead of innovating and looking to the future. Companies that cease to innovate will also cease to grow and prosper.

Is Hiring Sales Teams a Smart Strategy?

Friday, May 22nd, 2009

In my recent travels around the country, I’m seeing a lot of activity in financial services. Some companies are doing phenomenal business and are finding it a real challenge to add staff. One trend I observed: Companies are hiring teams of people from a single branch versus hiring individual sales professionals. In most cases, the person leading the branch is a producing manager. However, when the new group comes to the company, individual producers are performing at a low rate.

I question the logic behind this strategy. Why wouldn’t you want to ensure that every new sales hire meets the company’s performance standards? Why not evaluate each individual sales professional based on his or her performance?

During these tough times, companies can’t afford to make poor hiring decisions. Even one wrong sales hire can cost a company $200,000 and up in lost sales opportunities.