Pat’s Blog

“Innovation is the specific instrument of entrepreneurship. The act that endows resources with a new capacity to create wealth.” — Peter Drucker

Right now, something I see companies grappling with is the issue of how to serve the customer moving forward. Today’s consumers are more educated and have better access to information than ever before. That means sales professionals have to be that much more knowledgeable and innovative. Customers are calling the shots and out of this paradigm shift, one thing is clear: Companies can no longer afford to conduct “business as usual.” Those who want to survive and thrive in the future must be willing to replace old methods that no longer work with new ways of doing things.

To succeed, companies must ask, “What does the customer want?” and then determine the best way to meet that demand.

“Efficiency is doing things right; effectiveness is doing the right things.” —
Peter Drucker

In my work with financial firms, I often see two distinct camps when it comes to sales professionals: order-takers and consultative salespeople.

While order-takers tend to be pleasant people, they have trouble delivering results in a tougher production environment. The reality is, order-takers are better suited to customer service rather than selling because they lack the characteristics that above-average producers possess.

Order-takers lack self-reliance (a need to achieve) and the ability to form a relationship with the customer (empathy) – both of which are needed to move the consumer through the sales process. When the market is strong, order-takers’ lack of sales talent is masked but in a more difficult environment, the problem is all too evident.

In comparison, consultative salespeople tend to perform well regardless of market conditions. The reason? Consultative salespeople possess the right combination of social skills and a drive for achievement that pushes them to successfully complete the sales process. Furthermore, they do not depend on their companies for success or wait for their companies to provide them with help.

Simply put, top performers understand customers’ problems, issues and opportunities and are able to show them better solutions. Thus, if a company wants to be successful in a crowded marketplace, it must not only recruit individuals with the ability to create value and provide insight, but it must train current sales staff to sell consultatively.

“It is easier to turn competent managers into star performers than to turn incompetent managers into competent ones.” — Peter Drucker

This “Druckerism” illustrates a phenomenon that I encounter frequently in my consulting business. In financial firms both large and small, I find companies investing precious training dollars to transform C players into A players when the real issue is not a training matter. The actual problem is the C player is mismatched for the position. The truth is that no amount of training and coaching will turn an underperformer into a top performer. However, companies who direct their energies at coaching A players can help solid performers reach new heights.

The answer is better hiring strategies that identify candidates who possess the raw talent for the sales or management position.

“The first step in a growth policy is not to decide where and how to grow. It is to decide what to abandon. In order to grow, a business must have a systematic policy to get rid of the outgrown, the obsolete and the unproductive.” — Peter Drucker

In the financial sector, something I see frequently is companies holding on to unproductive strategies or ways of doing business that might have been profitable in the past but no longer fit given the current business climate.

Consider these examples: a bloated compensation system that over-pays salespeople for what they bring to the table; producers who consistently under-perform yet remain with the company year after year; having a thousand products to offer customers but your sales staff only sells 10.

Companies that want to grow must be willing to take an honest look at all aspects of their business and abandon what isn’t working.

What is your experience on this topic? Have you encountered a similar situation? Let us know. Your comments are appreciated!