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Decision Making

The Management Pocketbooks Pocket Correspondence Course

Pocketblog has gone back to basics This is part of an extended course in management.


In understanding decision-making, there are three key things to focus on:

  1. Using a structured process
  2. The role of intuition, gut instinct and hunches
  3. The effects of bias and automatic thinking

Let’s look at each of these in turn.

Structured Decision Making Process

… like the example below.

Structured Decision Process

One of the most important choices in your decision process will be whether to go for an adversarial process of setting the options against one another – perhaps even having advocates for each, competing with one another to win the decision – or to go for a process of inquiry, learning as much as you can before assessing the options.

Intuition

Although Malcolm Gladwell received a lot of attention for his book Blink, his work leans heavily on the research by Gary Klein and his books, The Power of Intuition and the more technical Sources of Power are first rate.  Klein shows how, in domains that are very complex and in which you have extensive experience, your intuition can quickly get you to the right understanding, well ahead of your ability to explain why or how you reached the conclusion you did.  But, if you don’t have sufficient experience, then your hunches are likely to be wrong, due to the existence of…

Bias and Automatic Thinking

Two psychologists, Daniel Kahnemann and Amos Tversky, were responsible for overthrowing the crude assumption that economics is based on rational decisions.  In fact, they showed that many decisions are a result of automatic thinking and biases.  The automatic thinking is a short cut that works well in the domains in which humans evolved, but leads frequently to wrong answers in a modern world context.  An example is the ‘horns and halo effect’ and another is our bias towards noticing examples that confirm what we believe to be true, whilst being blind to counter examples.  Daniel Kahnemann wrote the wonderful ‘Thinking, Fast and Slow’ to summarise a life’s research and it is, without a doubt, one of the most important and stimulating reads of the last few years.

Further Reading

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Manage Stress at Work

The Management Pocketbooks Pocket Correspondence Course

Pocketblog has gone back to basics This is part of an extended course in management.


As a manager, you have two stress management responsibilities:

  1. To manage your own stress levels
  2. To manage the environment to avoid subjecting your team members to inappropriate levels of stress

Let’s scamper through the basics.

Exercise 1: How to spot the signs of stress in your team?

Make a list for yourself of all of the outward signs that suggest that a team member may be experiencing stress.  These are the things you could observe in their demeanour, appearance and behaviour.

Part of your responsibility is to monitor your team’s collective performance.  What if stress were an endemic problem?  What would be the indicators and behaviours that would signal this problem? Note these down.

For some examples, click here.

Reducing Stress

To understand stress, you need to focus on one thing: control.  We feel stressed when we do not feel we have enough control in our lives.  Therefore, to reduce stress, we must increase control.

Supporting your team

Look for places where stressed team members feel robbed of control.  Where you can, restore some of their control.  Where that is not possible, help them to find other areas where they can take control.

Points of Control

The five key points of control for all of us are:

  1. Our environment
    How can you or your team members make changes to the environment to feel a greater sense of control.  Often, very little things are enough.  Personalisation is an important driver.
  2. Our use of time
    Where can you use your time more effectively (you may want to look at the time management tips in an earlier blog)?  How can you give team members more control over the way they use their time to get their work done.  Autonomy is another important driver.
  3. Our physical response to stressors
    Simple choices like what to eat, getting enough exercise and prioritising rest and relaxation will make a big difference to stress levels.  Poor physical health will reduce our resilience to a stress response.
  4. Our mental response to stressors
    ’there is nothing either good or bad, but thinking makes it so’
    Hamlet was spot on when he understood that it is the meaning we attach to events that determines our response to them: elation, contentment, boredom, or stress for example.  When feeling stressed, take control of your mental response and start focusing on what opportunities there are, what resources you have, and what there is to be grateful for.
  5. Our values – what is important to us
    A mismatch between what we are told is important at work and what we fundamentally believe is important to ourselves is a major cause of stress.  Examine your values – they may be out of date and you may want to shift, for example from: ‘it is important I work hard’ to ‘it is important I do great work’.  If your values are still out of sync with what your employer requires, you are in the wrong job.

Further Reading

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John Adair’s Four-D System

The Management Pocketbooks Pocket Correspondence Course

Pocketblog is going back to basics. This is part of an extended course in management skills.


Time management is a vital part of your personal effectiveness.  As a manager, you will face greater time challenges than you did as a team member; but you will also have additional resources and greater flexibility in how you use your time.

One of the simplest and most powerful time management approaches is John Adair’s Four-D System.  This is documented in his (now out of print) Handbook of Management and Leadership.

Adair starts with a standard Eisenhower Matrix putting urgency against importance.

Urgent&Important

Adair then identifies starting time management strategy for each class of activities:

  1. Do it now
  2. Delay it until you have some good quality time
  3. Do it quickly
  4. Drop it or Delegate it

Critique

As always, John has identified a powerful model with real practical application.  Yet I can’t help feeling we must modify it a little.  Here are three ways you can make it even more effective still:

Priorities

Although the urgency suggests that box 1 is top priority, this creates a high stress, low sustainability work style.  Prioritise box 2 and you will find yourself planning and preparing ahead of urgency and so find less work falls into box 1.

Drop or delegate… Really?

If it is not worth your time to do it, why is it worth someone else’s time?  Yes it may be important enough for someone else to do it, but don’t just Dump it on someone to avoid an assertive NO.  Indeed, get in the habit of delegating Box 1, 2, and 3 tasks too, to develop the people who work for you.

More Ds…

We’ve already added Dump, but I don’t propose to honour it with emphasis.  But Diminish is a powerful strategy.  Look at the task and ask: ‘do I need to do all of it?’  If you can reduce the work required and still deliver all or most of the value, you will save valuable time.  And there is another D: Decide.  You need to decide which strategy to adopt.  Unless, that is, you Defer your decision.  If you do that as an example of purposive procrastination* it is a sound approach.

Exercise

Make an Eisenhower grid on a whiteboard or on the four panels of a door, or in your notebook.  Use post-it type notes to jot down all the tasks facing you (big for the whiteboard/door or small for your notebook).  Allocate the notes to one of the four quadrants.  If everything is at the top left, re-calibrate your mental scales for importance and urgency.

Further Reading


*Purposive Procrastination: putting something off because there will be a better time to tackle it.

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Type A and Type B

The Management Pocketbooks Pocket Correspondence Course

Pocketblog is going back to basics. This is part of an extended course in management skills.


Are you a ‘rush-rush-got-to-get-things-done’ sort of a manager, or are you a ‘take my time; want to get things right’ type?  Or are you nicely balanced.  Doctors Mike Friedman and Ray Rosenman identified these two styles as, respectively, Type A and Type B personalities.  When I tell you they were cardiac specialists, you might start to worry.  There is no need.  Take the test and then I’ll explain.

Exercise

For each of these nine statements, score yourself 0 to 10 according to how close you lie to the first statement (a low score) or to the second statement (a high score).

Type A-B Thermometer

.

Casual and relaxed 0 … 10 Often feel on edge

Slow and deliberate 0 … 10 Always rushing

Dislike deadlines 0 … 10 Love working to deadlines

Patient 0 … 10 Impatient

Express your feelings 0 … 10 Suppress your feelings

One thing at a time 0 … 10 Lots of things at once

Ready in advance 0 … 10 Just in time

Plan and prepare 0 … 10 Just do it

Enjoy relaxing 0 … 10 Feel guilty when relaxing

.

Interpretation

Friedman and Rosenman predicted that strong Type A personalities would be prone to heart disease and die young.  They were wrong.  Many of their patients did have a cluster of personality traits that they characterised as Type A, but only a few of them were truly predictive of illness – and not the ones relating to rushing about.

However, both Type A and Type B personalities each have their own challenges in operating in an organisation.  Let’s look at some.

Dealing with other People

Inevitably, we deal best with people who are like us.  We find them easy to understand and their habits agreeable.  Type As readily get impatient with Type Bs.  They want the B to hurry up and despair that the B has no sense of urgency about things.  Type Bs find Type As’ hurry annoying; they would rather the A would slow down and do things properly and are concerned about quality standards.

Dealing with Admin

Type Bs will take on the organising and admin tasks as another thing to do carefully and well.  Type As – unless they really value it – will rush through it, wanting to move quickly onto ‘proper work’.  They will then get angry when they can’t find what they need or get what they want.

Dealing with Interruptions

Type Bs may not welcome an interruption – especially when they are engrossed in something – but when they accept it has happened, they will turn their whole attention to you.  This is great for the interrupter and can lead to positive outcomes.  But when the interrupter has a non-critical issue, Type Bs can lose valuable time on the work they were doing.  Not so Type A’s.  The interruption may be unwelcome or a welcome distraction when they are starting to feel bored, but the Type A will soon be tapping their foot, keen to get on.

Managing Time

Type A personalities get masses done; often just in time and at breakneck pace.  Quality can suffer, especially when they try to multi-task, but it is Type As who are at the heart of the (perfectly true) cliché: ‘if you want it done; ask a busy person.’  Type Bs focus on one thing at a time and do it well.  They plan well and execute effectively, as long as they don’t get held up by an interruption or by finding a problem and working deliberately to solve it.

Exercise: Balance is Everything

The most successful people inevitably balance both personality types.  Look at your weak points and note them down.  What strategies can you use to neutralise them?

Further Reading

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Assertiveness

The Management Pocketbooks Pocket Correspondence Course

Pocketblog is going back to basics. This is part of an extended course in management skills.


There is only one thing that you need to know about assertiveness, to fully understand it:

Assertiveness is all about respect

Assertiveness is about the respect you have for the people you deal with and for yourself.  Let’s see a summary diagram.

Assertiveness

Aggressive behaviour has little respect for the other person and instead, focuses on winning-out over them.  It can be controlling – even abusive  – and has no place in modern management.

Passive behaviour shows little respect for yourself.  It focuses on not getting hurt and so leads people to submit their own legitimate needs and desires to avoid the possibility of confrontation.  Often that possibility is more perceived than real.  Passivity shows itself in a fear to disagree, guilt at saying no, and a reluctance to offer feedback.  It too has no value to you as a manager.

Assertive behaviour is what to aim for.  Respect yourself and the other person and focus on over-coming events and getting the best result you can.  Do what is right: not what is easy and celebrate success.  Be collaborative, offer sincere praise and objective feedback, say what you think and feel, taking responsibility for your emotions and for your decisions.  Be confident to ask for help and support when you need it.

An Exercise

Think back to examples you have observed in colleagues of assertive, aggressive and passive behaviours.  Make a note of:

  1. some words you associate with each of these
  2. voice and speech patterns you associate with each of these
  3. facial expressions and patterns of eye-contact you associate with each of these
  4. postures, gestures and body language you associate with each of these

Exercise Part 2: Reflection

Now look over your notes.  Which of these seems most like you a lot of the time?  Which one do you tend towards during stress?

Assertively making a request

Be direct but courteous.  Be specific about what you want and offer details as appropriate.  You don’t need to apologise, unless you know you are putting someone out, but do say ‘please’.  The best asking words are ‘would you…’  Alternatives can seem weak (could you), doubting my ability (can you) or too direct (will you).  Finally, respect my right to say ‘no’.  If no is not an option, then be honest, and tell me.

Assertively disagreeing and putting your views

Listen intently.  Identify where we agree and disagree and acknowledge both.  Use ‘I’ to take responsibility for your point of view and be constructive in building on mine.  Offer reasons, facts and supporting evidence.

Assertively giving bad news

Be proactive in addressing the situation.  Make good eye contact, and prepare me with: ‘I have some bad news.’ Be brief and to the point, though never abrupt.  Be specific about the news, but the more complex and damaging it is, the less information I will be able to take in – at least at first.  Answer my questions and allow me to express my emotions.  You do not need to be defensive.  Be factual and caring and be prepared to help me work through the implications.

Assertively saying ‘no’

Be short, to the point, and respectful.  Offer reasons when you can and alternatives where appropriate.

Further Reading

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Personal Impact

The Management Pocketbooks Pocket Correspondence Course

Pocketblog is going back to basics with a return visit to our correspondence course in management.


As a manager you need to make an appropriate personal impact at all times in the workplace and when representing your organisation or business.

Here is a checklist of things to consider.  You may want to make a note in your notebook about how you propose to respond.  The best way to get things right is to look to the successful managers you meet in your organisation.  How do they carry off each of these things? What can you learn from each of them?

You will not, of course, want to copy their style, but rather, you should apply your own style, but recognise the appropriate levels of dress and appearance.

Personal Impact 1: Mental and Physical State

Start with your mental and physical state – this will profoundly affect how you come across.  If you have not done the exercises in the previous part of this course, they will be helpful to you.

Personal Impact 2: Dress and Style

Choose clothes of a quality and style that matches that of managers at your level.  If you are ambitious, look at how managers one level up from you dress and emulate them.  But be careful over-dressing to match top directors – that can be seen as presumptuous, over-ambitious or just quirky.  A personal style is fine, but make sure it is authentic to who you are and is appropriate to your environment.

Make sure that your clothes and shoes are well-cared for and use accessories to boost your impact.  A good quality, standard, off-the-peg suit need not cost much.  Add a few accessories and you will come across as far more classy.  These include your work bag, pens, tie or scarf, belt or brooch, bracelet or cuff-links.

Dress for Impact

Joke ties, cute phone covers and loud brooches are all perfect for the weekend, but if your accessories draw more attention to themselves than you can command on your own; ditch them.

It may be worth investing in a style advisor who can help you select clothes and colours that work for you.  Alternatively, if you have a trusted friend who dresses really well, ask them to help you with shopping.

Personal Impact 3: Personal Care

Don’t waste money on great clothes if you are not going to take care of basic personal grooming: hair, teeth, facial hair and fingernails are particularly important.

Further Reading

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Self Confidence

The Management Pocketbooks Pocket Correspondence Course

Pocketblog is going back to basics. This is the first of a series of posts on management skills.


Self confidence is the starting place for any manager.  Your promotion to managerial role has probably been triggered more by your expertise in doing your previous job, your reliability, and your character, than by any specific evidence of your managerial capability.  And that’s fine, because it is the way most of your colleagues were promoted too.

But it can leave you feeling a little nervous about your suitability to manage and, when your boss tells you to ‘get on with it – I have every trust in you’ you can feel a little isolated.  Your boss leaves you to it, your new management peers don’t yet trust you, and your team are wary of how you will treat them, now you have become a manager.

Here are three exercises to help boost your self-confidence.

Exercise 1: A Reassuring Word

Write down your answers to the following sentences:

  • ‘I earned my managerial role because…
  • ‘My three most valuable managerial assets are…
  • ‘The managers I learned most from are…
  • ‘I will know I am doing a good job as manager when…
  • ‘Things will go wrong; that’s life.  If they do, the people I can go to are…

Exercise 2: Seeing Success

Imagine it is Monday morning and you are in work, ready to start the day.  In a minute, close your eyes and picture yourself there.  Picture your first few conversations and meetings going well.  Notice yourself handling the situations effectively, feeling well-prepared.  As you go through your morning, picture everything you do going as planned. At each stage, notice how good that makes you feel.  At the end of your morning, imagine how positive and confident you will feel.

Now, close your eyes and play that movie in your head for several minutes.

When you have done this, make a note in your notebook about how you felt at the end of each part of your morning.  Write down what you did to achieve your successes.

This is an exercise to repeat several times over the coming days.  Each time you do it, choose another day and either the morning or afternoon.  Every time you do it, you will increase your base level of confidence.

Exercise 3: Power Poses

One of the reasons some people feel more confident than others is simply levels of hormones in their bodies.  For example, increased testosterone levels increase confidence, whilst increased cortisol levels decrease confidence.  Perhaps it is surprising, but your gross posture affects levels of both of these hormones and, whether you are a man or a woman, you can increase testosterone levels and decrease cortisol, by adopting power poses.

You can do these poses for two or three minutes before going into a stressful situation and you can maintain confidence-boosting hormone levels by maintaining upright, open postures during your day.

Power Poses

Stand upright, legs apart – slightly wider than shoulder width – and put your hands on your hips.  If there is a table, counter or a solid back of a stable chair available, place your hands firmly on it, about 70-80cm apart (wider than your shoulders) and lean forward.  Adopt these poses for two minutes or so.

If you have a chair to sit on, try sitting upright, legs apart, with feeet firmly on the floor.  Plant your hands firmly on your upper thighs, with elbows outwards.  Lean your body back a little, with head a little forward.  Or try putting your feet up on a table, leaning back in your chair, with your hands clasped behing your head, elbows splayed out.  Adopt one of these for two minutes.

If these poses remind you of a typical ‘old-school alpha-male boss’, they should.  The difference is that you will adopt these poses privately for a few minutes at most, to boost your confidence for the next meeting; rather than maintain it in the meeting to intimidate your colleagues.

Upright Postures

For all-of-the-time posture, keep to standing with feet at hip or maybe shoulder width, head upright, as if pulled by a puppet string, and arms by your sides.  This open body, coupled with upright posture, will not only make you feel more assertive, but will enhance your breathing, your vocal tone and projection and present your image as confident and authoritative.

Further Reading

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Handling Complaints

The Management Pocketbooks Pocket Correspondence Course

This is part of an extended management course. You can dip into it, or follow the course from the start. If you do that, you may want a course notebook, for the exercises and any notes you want to make.


Handle a complaint well and you will turn an unhappy customer into a wild fan of your business.  Handle it badly and not only will they never return – they’ll tell their friends (10 to 15 of them according to The Handling Complaints Pocketbook).

When Range Rover’s new model was plagued with faults in the 1980s, Managing Director, Mike Hodgkinson, sent a simple message to every dealer.  As soon as anyone comes in to complain, offer them the chance to drive a new car off the forecourt; there and then.  In the year it took them to fix the problem, only one customer took them up on the offer.  But the press went wild about their customer service commitment.

People know things go wrong with products. They know that services falter from time to time. They know you are human. So what they want is not perfection: they want to be listened to. By taking their complaint seriously, Range Rover signalled that customers were being listened to, so they were happy to let the company work on their problems.

Cost-Benefit Analysis

People will work hard to make your life hell if you fail to take their complaint seriously.  How much does it cost to put something right?  A bit of time, a bit of stock at cost price?  Nowhere near the cost of dealing with an endless stream of calls, letters and visits.  Add to that our increasing ability to publicise our frustrations and disappointments on the internet.  Invest immediately in making things right.  That way, you avoid the potential cost of the complaint and maybe win a new friend.

In fact, I would be tempted to aim to super-please: don’t just make things right, but make a generous gesture, that leaves people talking about that with their friends.

The Psychology of Customer Complaints?  I’m OK

Sometimes customers do complain – and sometimes you will deserve it.  What can you do when the mistake you made is minor, but the complaint is a big one?

One tool of basic business psychology points us to what may be going on – the customer thinks they are better than you are.  In their mind, they are a good person, cruelly wronged.  You, on the other hand, are stupid, malicious, or inadequate… in their mind.

Your customer is saying to themselves:

“I’m OK; you’re not OK”

Why do some people turn a complaint into a conflict, and then fail to deal with that conflict effectively?  That’s simple: they take the other tack and try to prove to the aggrieved customer that the customer is “Not OK”, and that they themselves are clearly “OK”.

This attempt to get one-up on the customer is doomed to fail.  Would you go back to do business with someone who showed that attitude?

The secret to defusing the potential conflict is to show that you too are “OK”, by demonstrating that, like them, you recognise that the situation is unacceptable.

This means building rapport, by empathising with their point of view, then demonstrating that you want to solve the problem in a way that is intelligent, well-meaning and capable.

Further Reading 

Two pocketbooks you may like:

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Customer Service

The Management Pocketbooks Pocket Correspondence Course

This is part of an extended management course. You can dip into it, or follow the course from the start. If you do that, you may want a course notebook, for the exercises and any notes you want to make.


In business today, price is no longer a major differentiator. So many companies offer promotional promises and will try to undercut their competition. The one aspect that will mean your customers come back to you is how they are treated and the level of customer service. There are some statistics to support this:

  • A company can increase profits by 85% if it retains 5% more customers each year.
  • It is 5-8 times as easy to sell to an existing customer as to a new prospect.
  • Some direct mailing tests to groups of “customers” and “prospects” found that approaches to customers were four and a half times more profitable than approaches to prospects.

Source: Research from Bain & Co

Customer service is all about attitude.

Nurturing and retaining customers is crucial to the success of your business. Customer service is all about attitude rather than techniques. A member of staff can have all the techniques in the world but if they do not believe in the business and do not want to do it, they won’t. Are all your staff focused on making the customer the focus of their world?

The Big Secret to Customer Care

… is to care!

What do customers really want? The most important thing you can do for your customer is listen to what they want and be open about whether you can provide it. The big secret to customer care is to care enough to listen, and to respect what you hear, so:

  • Be welcoming
  • Ask questions
  • Listen carefully
  • Offer only goods or services that truly meet their needs

Satisficing

‘Satisficing’ is doing the minimum to meet a set of criteria. This is the approach that many organisations take to customer care. It is certainly the easiest way to deal with complaints. Easiest is rarely best – and certainly not in this case. Treat complaints as an opportunity to have a good long conversation with your customer and go way beyond satisficing. Go beyond pleasing; aim to delight.

A recent customer service experience taught me a real lesson. I bought a new service which didn’t work first time. I contacted technical support, who first denied there could be a problem, and then treated me as if I were foolish “You don’t do it like that – that won’t work …”. After many calls, I did speak to one engineer who said (I am quoting verbatim – I wrote it out in my daybook): ‘this is a bug’.

After a week of ever more frustrating emails, I figured out what to do. The service worked perfectly, the advice on an online forum was good. The customer care, however, means I’ll never recommend that service to anyone without warning them. If an email takes three minutes to rush off, it will only take five to write with care. Word of mouth is the best – no, THE BEST – source of new business. Are you chasing quick responses from your staff or are you seeking first class customer service?

A Customer Care Review

When did you last have your monthly customer care review?  Thought so!  Set one up, if your answer was not 31 days ago or less. Here are five great questions to ask your colleagues and discuss:

  1. What annoys our customers most at the moment?  If you don’t know: ask them.
  2. What have we improved on customer care this month? This is what your customers notice, not what you worked hard on.
  3. How do we compare with our competitors? What are people saying on forums, for example?
  4. What are we doing to really delight our customers at the moment? Go beyond satisficing.
  5. Is it time for a “mystery shopper”? There are a number of companies who can offer this service, but unless you are a small business, you can do it for yourself.

Moments of Truth

Moments of Truth are those tiny moments when a customer learns something about your business organisation. Every interaction, however small, has a moment of truth in it. What will that truth be?

What does your front door look like? Estate agents will tell you that it is easy for viewers to fall in love or out of love with a house, based on its front door. We aren’t saying repaint your front door when you want to sell your house (though you should): we are saying get the entrance and reception area of your business right. Tomorrow morning, come in through the customer entrance and see it through a customer’s eyes.

Director of Welcoming

Okay, you say receptionist, I say Director of Welcoming. A receptionist sits behind a reception desk, takes names, and makes calls. A Director of Welcoming welcomes people in and then does everything they can to make them feel welcome. Small difference in the work: vast difference in the results.

First impressions really do matter. It might be the voice on the end of the phone when a new customer first calls. It might be the first email or letter a new client gets. It might even be the greeting they get when they first visit your office, factory or warehouse. What’s the common thread? Your receptionist. And often these undervalued colleagues are required to multitask with the minimum of training. This is just plain wrong, because it puts your business in danger.

Further Reading 

Two pocketbooks you may like:

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Take your Selling Skills for a SPIN

The Management Pocketbooks Pocket Correspondence Course

This is part of an extended management course. You can dip into it, or follow the course from the start. If you do that, you may want a course notebook, for the exercises and any notes you want to make.


“The best sales people have a 4:1 listen-to-talk ratio”

Neil Rackham of the Xerox Corporation discovered this astonishing statistic and, if you want to influence people to get more of what you want, you’ll do well to apply this knowledge.

Rackham is best known for the concept of SPIN Selling and the book of the same name. Here’s a quick run down of how it works.

S for Situation

Start by asking searching questions of your potential buyer – what are their needs? Use the funnel approach we looked at in the earlier blog, Questions, Questions, Questions, to establish the wider context, and then zoom in.

P for Problem

Listen very carefully to your potential buyer’s response and encourage information flow. People buy to meet a need. What difficulties are they having? What are they not satisfied with? You want to identify what their problem is so you can …

I for Implied need

Demonstrate your understanding of their needs and problems – show them you know what their pain is, so that you can …

N for Need-payoff

Show your potential buyer how you can meet their need, solve their problem and take away their pain.
When you have done this, they will want to buy. If you can quote a price that they can afford, you are ready to close the final sale. In the book, Rackham recounts that orginally, he wanted to use the term ‘value question’, but realised that this would make the acronym read: SPIV!

The Three 80-20 Rules of Selling

They say the world is governed by the 80-20 rule. There does indeed seem to be an 80-20 for nearly everything and sales is no exception. In fact, here are three that you ignore at your peril.

The 80-20 Rule for your First Meeting

This rule refers to how to spend your time, at the first meeting with a potential customer. Use your time with:

  • 80% Information Gathering
  • 20% Information Giving

So at the start of your meeting, establish how much time your prospect has, to ensure you can get the information you need. And since no rule is perfect, make sure you leave 10 minutes or so to close the sale if you can (always try) and agree next steps.

Note that this rule is another way of expressing Rackham’s rule, quoted at the top of this blog.

The 80-20 Rule for Junior Buyers

Junior and middle managers are intensely practical people. They have to be: their job is to get things done. So ensure you address their interests. When you gather information, listen for their concerns in this proportion. And when you give information, address their needs in the same ratio:

  • 80% The “How” of it
  • 20% The “Why” of it

All selling is about finding an itch and offering a scratch. Operational people’s itch is a process one. Not so their senior colleagues.

The 80-20 Rule for Senior Buyers

Senior Managers’ role is to think strategically. Reverse your pattern with them to focus on what they need:

  • 80% The “Why” of it
  • 20% The “How” of it

So how do you gather information? There is an art to it. Think funnel:

Start at the top with a wide open funnel, and ask wide open questions, like

“Tell me about …”

Listen for where their itch seems to be, then start to probe, with narrower questions like:

“Tell me some more about …”

Next, confirm your understanding by asking detailed questions like:

“So, what exactly …”

Finally, play back your diagnosis of the nature of their itch, to ensure you know what sort of scratch they need:

“From what I’ve understood, you …”

Don’t be afraid to ask for a Yes

In sales meetings, one of the hardest moments is when you have a strong rapport with your potential customer, you have offered a great solution, and you are convinced they want to buy from you. So how could you spoil this perfect moment? What if they reject you? Perhaps it’s best not to say anything more and wait for them to buy.

But what if they don’t? You know how it can be with that first kiss – maybe your potential buyer is waiting for you to make the first move. If you do have the rapport you think you have, asking respectfully if they are ready to buy is not only appropriate, it’s often the only way to close a sale. Here are five ways you can do it:

  • “We’ve discussed all the ways our product works for you – are you ready to place an order?”
  • “Is there anything else you need from me, before you discuss what booking you want to make?”
  • “If you are ready to order, shall we talk about delivery arrangements?”
  • “Would you like me to get some paperwork ready now?”
  • “Do you prefer to go for the XAKD model or the DXKA model?”

 

Further Reading 

You may like The Salesperson’s Pocketbook. Two other great pocketbooks:

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