Communicating versus micro-managing

Had an interesting conversation with a friend recently about managing a team of direct reports, specifically as it related to inter-team dynamics and informal leadership.

My position was that inter-team issues would arise from a lack of communication around where each team member fit within the team. I felt that it is the responsibility of the team's manager to establish role clarity and inter-team communication norms.

My friend's position was that my position sounded too much like micro-managing, which got me thinking. Where does the line exist between effective communication and micro-managing?

To me, the line exists in follow up communications.

If, after expecations are communicated clearly to a team, observation of the team and individual communication between manager and team members doesn't uncover any confusion with expectations, no follow up is necessary. Reiteration of expecations at this point crosses the line into micro-managing either at a group or individual level.

If the team's manager identifies a disconnect with expectations by one member of their team, follow up communications should occur solely with that individual.

Where is your line for effective communications versus micro-managing?

Who's pitching?

Is it you or your PowerPoint? If your PowerPoint is pitching your idea for you, you are wasting your time and your targer audience's time.

My stance on PowerPoint has softened a bit recently as some ideas, software and marketing specifically, do lend themselves to visuals.

Visuals, including financials, should only come into play after your target audience has bought into your idea at a high level. For example, a very common response to any idea pitch is "how much does it cost?" Reality is that unless your idea is free your pitch will be unsuccessful because your audience is looking for an easy way to say "no."

Getting your audience to buy in conceptually, saying for example, "so if the numbers are right, how do you see this idea working for you?" opens a door for you to produce your visuals to confirm in your audience's mind the reason why they said "yes."

Remember that you're pitching your idea to a person whose first response to most pitches is "no." Falling back in visuals or pounding through PowerPoint slides helps them say "no" more than it helps you get them to say "yes."

Having confidence in your ideas, getting high level buy in and then confirming buy in with visuals will give your pitches more chance of success.

Cold Calling

I love cold calling. This puts me in a minority, even among my peers in sales. In my experience, the individuals who suffer from "call reluctance" focus more on the recipient of their pitch than on themselves.

You're busy. Your prospect is busy. If your prospect doesn't like your pitch they will hang up and forget about you in 20 seconds! If they can move on so easily so can you.

Relying on your current clients to buy all of your ideas is a losing strategy. To grow yourself you must pitch your ideas to new individuals.

To successfully cold calling, you only need 2 things:

1) An Internet browser - one of my former colleagues pointed out that I used to make most of my cold calls with no more information than my prospect's website. Remember, the goal of a cold call is to get a chance to pitch in person

2) Confidence - as discussed in "over qualified," one the biggest reasons for failed pitches is lack of confidence. Lack of belief in your pitch comes through like a air raid siren on the phone and makes hanging up that much easier for your prospect

The rule of thumb I live by is it takes 7 "nos" to get 1 "yes." Sometimes this ratio is lower, sometimes higher, but it helps guide me when I pitch ideas.

Since I'm in the minority, I'm interested in your thoughts on cold calling. Why do you avoid it? What do you do to overcome your reluctance to cold call?

Time and Money

When building a pitch keep in mind that your target audience wants to hear 1 of 2 things.

1) Your idea will save time

2) Your idea will save or make money

Really, the list above is 1 thing, saving/making money. Time savings should save your organization money in the short term and allow it to make more money in the long term through increased productivity.

How your idea will save time or save/make money for your organization may not be readily apparent. On the surface many ideas may not have an obvious connection to the list above.

The chances of your pitch being successful will increase if you take time to look below the surface and connect your pitch to a number that is important to your audience (more on that later).

Profit and loss

To say selling in a recession is hard should elicit eye rolling and something sounding like "duh."

It seems organizations have taken one of two strategies to manage their revenue during the current economic downturn, an aggressive new business development campaign or a conservative "retention" strategy. The former works best for relatively new market entrants, but is unsustainable long term because the reduction in service or value is not enough to maintain clients won over on price. The former sort of works for established market participants; however, while an organization pursuing a "retention" strategy may keep current clients, they won't retain the same level of revenue.

Consider this example. A client who is currently worth $100 per year to your organization says they need to cut costs and may be considering the competition. At best, you can hope to keep that client at $80 per year, but reality is that client will probably be worth between $50-60. Already you are in a $40-50 hole from last year with one client no matter which direction you go.

I feel there are three simple things "retention" organizations can do to actually maintain or grow their revenue in a downturn.

1) Increase service for the same value - keep your client at $100, but offer $150 in services; ideally this is done proactively so your client doesn't have time to start casting about for different services, but may be a defensive move to counter a competitive attack. At first blush, this approach would appear to work best in high margin industries; however, the extra $50 in service could come from faster delivery time, increased maintenance or preferential access to new products.

2) Focus on the bottom 20% of your client base - when was the last time you spoke with the client bring in $5 per year? How many of your products do they buy? Do they even know you offer other products? That $5 per year client could turn into a $20 or $25 per year client with minimal effort on the part of your sales team.

3) Organic new business development - at the start of our example, your $100 per year client is now a $50-60 per year client, leaving a $40-50 hole to fill. You might be able to fill in some of that hole by following strategy #2; however, the only way to get back to net zero or positive revenue growth is to seek out organizations that aren't doing business with your organization. Yes, your competitors clients are the easiest place to start (how happy is their bottom 20%?); however, a quick rethink of how you position your services should open up at least one new target market for you to pursue.

"Blue ocean strategy" is on the way to being a business cliche, but the reason phrases become cliches is there was some truth to them once. Being the first to reposition your products into new a market forces your competitor to act defensively, allowing you to take your competitors' clients who are being ignored in your original market and make further plans for new business growth.

How is your organization attempting to maintain or grow in this economy?

Over qualified

One of the biggest reasons ideas fail to sell is because they are over qualified. Think of the times you have used or heard the following phrases at work.

"These are my thoughts, you can take them or leave them"

"Here's what I think, do what you will"

"Do what you will with my input"

"Its only my idea"

With the first three, what I do with the idea is flush it, usually before the individual is finished speaking. If someone can't own their thoughts, I have no interest in whatever comes after their qualifier.

With the last one, I want to jump up, grab the individual pitching and scream, "THAT'S GREAT! ITS ONLY YOUR IDEA! YOU DON'T HAVE TO SHARE CREDIT WITH ANYONE!" Fortunately for my colleagues and clients, I have restrained myself so far.

Instead of enhancing your idea pitch, qualifiers communicate your lack of belief in your idea to your audience. 

If your idea is well thought out, your pitch doesn't need any qualifications, you are qualified to pitch already.

So what?

To give your ideas the best chance of being sold answer the "so what"? 

It's not enough to know that 2+2 = 4, what you do with 4 provides real value to your organization.

Unfortunately for those of us trying to sell our ideas, our managers' time is short. Last year, at a presentaiton by Christensen Investor Relations in Calgary, the presenter mentioned a study showing CEOs will switch their attention every 60 seconds unless they see value in the infomation they are reviewing.

So how do you avoid being 1 (minute) and done with your manager next time you pitch an idea?

Someone, I really wish I could remember who, gave me the following system, which they called the "60 second report".

15 seconds - summarize current situation (shareholder revolt, product recall, quarterly earnings call)

30 seconds - identify 3 options for resolving current situation (the "what")

15 seconds - recommend 1 option for resolving current situation and why (the "so what")

Instead of just summarizing the current situation and staring blankly at our manager for direction, the 60 second report quickly gives our manager (who is probably dealing lots of other issues as well), some guidance on how to resolve the situation you're describing. 

As much as "Free Agent Nation" sounds exciting from an employee perspective, employers will look for their current crop of free agents to not only provide "what"s, but "so what"s to justify their investment.