From the monthly archives:

April 2007

Diogenes should have gone errand running with me yesterday after work. First, I went to the Verizon store to get something for my phone. I overheard one of the sales associates say, “to be perfectly honest with you, I’d get the A product and not the B product.” Then I heard the same thing at a furniture store from one of their sales reps.

Message to anyone who works in any kind of business: don’t say the words to be perfectly honest with you!

Whenever I hear this phrase (and I hear this one a lot), I am tempted to say, “you mean, as opposed to the part of our conversation where you were imperfectly honest with me, or just not honest at all?” (I’m tempted to say it, but I can usually avoid letting that one sneak out in my out-loud voice.)

Instead of saying it, just be perfectly honest with people as a matter of course.

When I mentioned this to one of my team members here at the office, she reminded me that Diane Berenbaum and Tom Larkin at our client Communico, a customer service training firm in Westport, CT, included this phrase in their list of subtle “tragic phrases” in their fabulous new book How to Talk to Customers.

Other subtly “tragic phrases” went like this:

Tragic Phrase - Implied Message

  • “As soon as possible.”
    • “When I get around to it.”
  • “I’ll try.”
    • “Not sure what I can do.”
  • “The truth is…”
    • “I probably shouldn’t tell you this.”
  • “To be honest with you…”
    • “I was lying up until now.”
  • “Hopefully…”
    • “Who really knows?”
  • “Maybe or “Possibly.”
    • “I really have no idea.”

You’d think it would be easy enough to avoid employing tragic phases like this, but unless you 1) know what they are, and 2) maintain vigilance to keep them out of your conversations, they’ll sneak in.

What other tragic phases have you heard in your business travels? To be perfectly honest with you, I’d be interested in hearing what you have to say.

Ask service business leaders what Web 2.0 is, and you’re likely to get answers ranging from the next generation of Internet technologies to the sequel to E.B. White’s classic Charlotte’s Web.

Except for a handful of large, innovative services firms and marketing companies selling Web 2.0 technologies, I see very few professional service businesses embracing Web 2.0 in any meaningful way. For all of you who aren’t paying attention to Web 2.0, or for those that still think the World Wide Web is ancillary to your core business operations, take heed: Web 2.0 isn’t going away. (Or, at least won’t go away until someone decides it’s time for Web 3.0, Web p, or something else.)

This month’s BtoB Magazine has a solid article on Web 2.0. In it, they describe Web 2.0 as follows:

In practice, Web 2.0 features include blogs, podcasts, shared news social networking, wikis and other technology-based capabilities that allow users—businesses or individuals—to connect with and learn from each other.

In my experience, I see service businesses falling into 2 categories when it comes to Web 2.0: Either they embrace it or they don’t.

Some drink the punch and use the web extremely well to market their businesses. I think Forrester Research does a good job of this. I especially like Charlene Li and Josh Bernoff’s blog. Then again, it’s their business to understand this stuff. There are also a number of independent consultants doing a great job of this. Visit David Maister’s site to see a consultant who truly gets it when it comes to using the web the right way for a service firm.

Yet, I’m hard pressed to find examples of accounting, consulting, engineering, law, and other professional services firms who aren’t fumbling all over themselves when it comes to using websites, web technology, and the Internet in general to their advantage.

More often than not I see:

  • Overall lack of Internet strategy
  • Outdated websites that either focus too much on graphic design as the end-all be-all on the web, or, on the other hand, look horrible
  • Poorly written, inconsistently delivered e-newsletters that provide little value or worthwhile thinking
  • Weak use of intellectual capital vehicles such as articles, white papers, webinars, and seminars
  • Little or lip-service attention to search engine optimization
  • Little attention to response mechanisms or conversion actions (i.e. getting visitors to engage contact with you in meaningful ways)
  • Ill-conceived, ill-managed, and abandoned blogs

The web can be such a powerful way to connect with the world as well as generate leads and build brand. It’s an advantage waiting to happen. To make any headway on the web, like everything else, takes passion, time, money, and the true interest of the leadership.

I see a lack of commitment for all four at most firms. Why do you think that is?

Know of any service businesses you think get it right on the Web?

Elwood: It’s 106 miles to Chicago. We got a full tank of gas, half a pack of cigarettes, it’s dark, and we’re wearing sunglasses.

Jake: Hit it.

Many professionals and leaders at services firms appear quite efficient. They’re always busy, running from thing to thing. But what kind of progress are they really making towards reaching their proactively set goals? Do you, as the steward of your own effectiveness, reach your goals in the time frames you set for yourself?

I often observe time slipping away from professionals and managers because:

  • Busy as they might look, they often focus on urgent issues (that need immediate attention but may not have significant consequence in the grand scheme of things) vs. important issues (that may not need to be done now, but are of great consequence).
  • Firm leaders too often do work that can be delegated to others, work that, for one reason or another, they “buckle down” and do themselves.
  • Firm leads allow themselves to be distracted by unproductive meetings, random telephone calls, putting out fires, interrupting visitors to their office, and a host of other lampreys of time.

Books have been written about the subject of time management. I could expound upon each one of the points below for paragraphs on end to drive them home. But I don’t have to (and thus it wouldn’t be a good use of time). Follow the summary and you should be in good shape.

1. Set goals and accomplishment milestones. If you find yourself working on anything that will distract you from achieving those goals, step back, look at what you’re doing, and figure out how to get back on track. (Willie Hall: So, Jake, you’re out, you’re free, you’re rehabilitated. What’s next? What’s happenin’? What you gonna do?)

2. Practice saying, No. Why practice? When you really need to say no, it will come out. Often people don’t want to be disagreeable, so they don’t say no. Learning to say no at the right time will help you actually deliver on the important commitments you’ve made to yourself and others. (Mrs. Murphy: You want butter or jam on that, honey? Elwood: No ma’am, dry.)

3. Heed Occam’s Razor – Plurality should not be posited without necessity. In other words, don’t do more than you need to do. Once you’ve achieved success on any particular task, move on. Sometimes you need to polish the polish to make sure something is just perfect, but more often you should begin to invest your time in the next important endeavor. (Elwood: Ah, what kind of music do you usually have here? Claire: Oh, we got both kinds, Country and Western.)

4. Ask the question, “Is this what I should be doing right now?” You might save yourself days of time just by catching yourself in the act of less productive work than you could be doing. (Little Kid: Will you please put this in the window, lady, ‘cuz it’s real important.)

5. Be proactive. Habit #1 of Steven Covey’s 7 Habits of Highly Effective People is habit #1 for a reason. Proactive people are productive and reach goals. Waiting around and reacting isn’t a good way to get where you want to go. (Jake: We’re putting the band back together.)

6. Control the clutter. Messy desks and disorganized to-do lists derail many a manager. Some folks can work through the piles-o-junk, but not many. Some may disagree with this point, but I’ve found disorganized managers to be less productive even if they don’t know they’re being less productive.  If you want to step on the gas, sometimes you have to clear path first. (Elwood: Our Lady of Blessed Acceleration, don’t fail us now.)

7. Check in with yourself frequently. Ask yourself first thing in the morning, “What do I want to get done today?” Check in later in the day with yourself to see how you’re doing. If you find yourself getting derailed from the important work that will help you reach your goals, you can often re-rail yourself with a simple check in. (Elwood: Then we gotta figure out some way to collect the gate money and get it to the Cook County Assessor’s Office as soon as they open in the morning.)

8. Kill unproductive activities. I know some folks in sales who are constantly analyzing their sales activities and results to the nth degree. After their exhaustive analysis, they learn month after month that they’re still underperforming. Perhaps ten hours less of analysis would give them ten hours more of productivity. Perhaps there are 4 sets of ten hour activities that they can replace with more productive activities. Most people don’t question what they do and how their activity patterns affect their success. They should. (Elwood: You want outta this parking lot? Okay.)

9. Don’t suffer time wasters. Squash unproductive meetings. Turn off the phone and the email (that’s right…I dare you.)* Nip the office chit chat in the bud. If your colleague is not getting to the point, get them there. Sure, sometimes having a relaxed and meandering conversation is important for relationship building such as with clients, with prospects, or with colleagues during lunch or after work. Most of the time you can cut the conversation in half and get right to being productive. Time wasters…don’t heed them. Don’t notice them.

If you find that anyone you work with unduly derails you from reaching your goals, confront the issue. How you confront the issue may be a subject of quite a bit of thought, but that you confront the issue is a must. If you don’t, you’re no longer pursuing your own agenda. You’re pursuing someone else’s, whether that person be your superior, subordinate, or colleague. (Jake: How often does the train go by? Elwood: So often you won’t even notice it.)

*I’m not advocating you should be unresponsive to clients, prospects, and team members. Perhaps you can get more done for them with four hours of undisturbed time. Unless it’s one of those days that you have to be accessible 100% of the time, or must return a call immediately, non-emergencies can usually wait a reasonable short while.

Now, what do I want to get done today? Right! So without further adieu, back to it. “She caught the Katy…”

It’s not hard to find a professional services expert who will say, “Repeat business is your most profitable business. To generate more repeat business, focus more people, energy, and effort on satisfying the specific needs of your best clients.”

Still, few companies actively pursue instituting major changes at their firms to focus said efforts on said important clients. So it’s worth making the case once again. This time, the case is made by recent McKinsey research on building a top consumer goods sales force.

Consumer goods sales forces? Not just the right fit, you say? I assure you, it is. Read on.

In a recent McKinsey research brief authors Jeremy K. Allen, Sherian S. Ebrahim, and Gregory C. Kelly report 3 key practices that top top consumer goods companies employed (as measured by top market share growth, by revenue, relative to their peers in the same category) when reorganizing their sales forces.

Best Practice 1:

First, the top sales organizations concentrated more resources on a smaller – and more thoughtfully selected – pool of retailers than the typical manufacturer did. They served half as many customers through key account teams, on average, than other manufacturers – yet appointed a third more people to each team. Indeed, in our experience, the largest US consumer goods makers commonly rely on just 10 to 15 customers for 50% to 80% of their sales, depending on their mix of categories.

While it may seem a bit obvious (kudos to McKinsey for discovering the Pareto Principle), it doesn’t mean it’s any less true. Top companies, especially consulting and professional service businesses, focus more of their resources on the most important subset of their client bases.

Best Practice 2:

The second way top consumer good manufacturers excelled was in organizing their key-account teams along cross-functional lines so that they could better serve the retailers, whose demands on manufacturers, we find, increasingly extend into areas such has customized packaging, shopper marketing…and even product development.

The sales force winners’ teams were more likely than those of other manufacturers to include not only sales personnel but also experts in category management, customer marketing, finance, and supply chain operations.

If this were a study of service businesses, it might read something like this. “The second way top consulting and professional service business excelled was in organizing their client times along cross functional lines. For example, an accounting firm – instead of just having a partner or business developer and tax experts on the team – assigned an M&A expert, a growth and profitability expert, and an industry expert to the team from the outset.

“This helped the accounting firm meet the increasing demand from clients not only to help them file their taxes, but to compete in their industries and realize the most profit and overall value from their companies.”

In other words, the top consumer goods companies assigned more people who could actually add value to the customers’ businesses, and that made a difference for the customers…which made a difference for the manufacturers as well.

Best Practice 3:

Third, the sales force winners actively customized their services to meet the needs of the individual retailers – in part by collaborating more intensively with key accounts than the other manufacturers did. The winners not only called on key retailers more often but also said they had taken greater pains to send their most talented sales and customer service employees to work with these clients. (Emphasis added.)

Need I say more? (I will, of course.) The consumer goods companies that delivered the most frequent contact and the highest quality teams were more successful than those that didn’t.

Still think we in consulting and professional services have nothing to learn from the top consumer goods companies?

Let’s assume you waved your magic wand and:

1. Identified your top accounts and assigned more people and resources to them
2. Organized your key account teams across cross functional lines so that you could deliver higher value to your clients (even before they request it)
3. Collaborated more intensively with top accounts while also assigning your top resources to each high-value account

If you did all three, what would happen to your service business?

Paul Dunay, Global Director of Field Marketing at BearingPoint, recently interviewed me for his Buzz Marketing for Technology Blog. We talked mostly about the results from our What’s Working in Lead Generation study released from RainToday.com.

Enjoy the podcast here!

Based on the research findings from What’s Working in Lead Generation, we created a 21 page executive summary of the report titled 6 Lead Generation Insights for 2007. Download the free 6 Lead Generation Insights for 2007 here.

I encourage you to visit Paul Dunay’s Buzz Marketing for Technology Blog to read more of his insightful posts.