Who is in a hurry? Who wants to get more done today then yesterday? Who wants a fast answer and if they don’t get one, will wait until later (hoping later never comes), and who do we know, that is in such a hurry they take short cuts, and hope for the best?
We all know there are times when “good enough” is GOOD enough and we don’t need to spend more time or money.
The world is so full of chaos, complexity and high-speed change, we just hope we can keep up, but there is one rule we should pay attention to.
That rule is “take care of what you can control.” There are so many things going on that are out of our control and those things we can control should get our full attention, since they provide us the greatest safety and leverage to have control over everything else.
One thing every person and every leader does control, is the principles they live by. Individuals should have their set of personal principles and every business should have a set for everyone taking income from the business.
It is the business principles we will cover here, but the extension to individuals is easy to draw. At The Revenue Game™, these are our principles, which we will use as an example for this conversation:
The power of principles comes from empowering every member of the company team to know when they can, should and must act, the boundaries to act within and when they can or must say NO.
If before being hired everyone sees the principles before they complete the interview process and again with their signature at the moment of being hired, they will get the feeling you are serious.
To examine the power of principles on the “Cost of Chaos” we will assume everyone in our stories has signed the principles at hire and knows they are expected to live these.
Real Life Situation 1
You have a strategic company that produces high value products and services for corresponding levels of fees. One of your sales persons spends all their time with the tactical level staff on customers or leads. The sales person’s focus is on product detail and trying to do whatever the customer asks. When the customer says can you get me two of these, the sales person drops everything and runs back to engineering for help to create those two for a test.
Which Revenue Game™ principles apply?
1. Alignment is required to win the Revenue Game™
The sales person has been trained to start with the unique problem the customer has – unless the sales person understands the problem these two tests solve and it is part of our strategy, there is no alignment.
2. Focused execution is required for strategic alignment
There is no focused execution, just doing what the customer wants and no linkage to our unique strategy.
3. Success requires identifying, challenging and testing all critical assumptions
There are no shared assumptions between buyer and seller, so there can be no testing and no continuous improvement.
4. Be proactive, not reactive
The sales person is totally reactive and brings no value – he is an errand boy.
5. Winning requires Integrity
Integrity demands telling the customer these running errands is not a win for you or for us – we are a partner and not a vendor who does anything for money.
Real Life Situation 2
You have a strategic company that produces high value products and services for corresponding levels of fees. Your sales team has worked with the buyer’s team for two months and gone through a very valuable Joint SOW (Scope of Work) process. The buyer’s team has shared exactly what they need to achieve, how they will measure achievement and their resources to support attaining the goal. Your selling team has brought corresponding business and operational resources to the Joint SOW. With the result being your previewing for the buyers a compelling “Ideal Future State”.
Based on the buying team’s excitement and confirmation of your preview, your team has developed a proposal to be signed and then contracted. The presentation to the buyer team goes great and the buyer is ready. Then they ask for a discount and your sales person says, “let me check with my boss.”
How do the principles apply?
Several principles apply here, but one alone dominates.
- Winning requires Integrity
The selling team has invested two months in the Joint SOW. They have shared everything with you. They are giving you the opportunity to be their strategic partner. They are counting on you to deliver on your preview and if you can really do this they expect you to be part of their world for as far as they can see.
When they ask you for a discount they do that because procurement told them to and they want to test your integrity. When your team responded with “let me check with my boss” your team failed the test. You are NOT a partner but just another slick vendor who wants as much wallet share as you can get. The buying team hoped you had set a fair fee for fair value. You just told the buying team that you want as much as you can get and marked the deal up hoping they would not ask. The buyer hoped your answer would have been more like “if you don’t have the resources for this SOW, what would you like to take out?” This is the answer of someone you can keep on trusting.
Both real-life situations are warnings. Both need to be addressed not only with these individuals but their boss and every person in the organization.
When principles are not followed our internal team becomes unengaged and the best people leave. The brand goes from a high value partner worthy of corresponding fees to just another vendor and the “Cost of Chaos” explodes.
You have complete control over principles and how well your team lives those. Principles are one of your most important assets and only you control how much that asset is worth.
Upcoming Revenue Science Certification Classes:
Coming in the Fall of 2017