Organizational Core Values – To Thine Own Self – Be True!

Values are deeply held views, of what we find most meaningful in life. They originate from many sources: parents, education, friends, religion, people we admire and in many instances our culture. Some go back to childhood, while others are developed as we mature between adolescence and adulthood. As is the case with what we think as a mental model, there’s a major difference between the values we “espouse” – which we hold to dearly – and the “values that are validated,” by our actions that actually direct our behavior.

When you decided you wanted to start a business, and you thought  of the values that you wanted your business vision to espouse, was there something inside you on certain thoughts that said; “That’s not really me or what I want my business to represent?”

That pang you felt in your gut was in opposition to a deeply held value that you maintain. These values are coded into our brains at such a fundamental level that we can’t see that they actually control our actionable behaviors.

Organizations should be extremely beware of the temptation of allowing their “Organizational Core Values” to fall by the wayside in difficult times. If your organization has honesty listed as one of its core values, it should share the financial status of the company with the employees – even if the financials set forth that the business is failing. If employee loyalty is one of your core values, it means that even in challenging times; it will not lay off employees. You may eventually have to lay off people, however your strategy should be to avoid such at all cost because it is contradictory to your core values.

How To Create An Organizational Core Value Checklist

Step 1. Create A Core Value List

The Founder(s) should gather together the team and create a short list of maybe 10-20 values that it may want to espouse as its “Core Values”. These words and/or phrases should act as a guide to behaviors and character of what the business will represent, or how the business wants to be viewed.

Step 2. Scrub The List

Now that you have identified 10-20, imagine that you are only able to keep 10. Which 10 would you give up? Remove them from the list.

Now repeat the process until you have 2 Core Values. Which is the one single item on the list that the Founder(s) care about the most?

Step 3. Communication

Now go back and take a look at your Top 3 Values and then ask yourself the following questions:

  • What do they mean to the Founder(s) and employees, exactly? What will you expect from yourself and the employee – even in the most difficult of times?
  • How would the company be viewed and the leadership of the company be viewed if the “Core Values” were prominent, lived and practiced on a daily basis?
  • What would an organization look like whose leadership and employees lived up those values?
  • Does the “Vision” of the company align with those values? If not, should the “Vision” be expanded? Or are the Founder(s) prepared to reconsider the “Vision”?
  • Are the Founder(s) willing to dedicate their lives, and the organization to realizing a “Vision” in which the “Core Values” are paramount?

In the many situations and environments in which Smith Gruppe has conducted “Building A Shared Vision” training exercises, entrepreneurs, seasoned executives as well as management has gained meaningful understanding about themselves and the organization they work for.

In the current environment of irresponsible leadership, in which leaders are not willing to be held accountable and/or responsible for their actions and decisions; millennials and Generations X and Y are looking for authentic leadership that are capable of  living up to Shakespeare as stated by Polonius: This above all: to thine own self be true, And it must follow, as the night the day, Thou canst not then be false to any man.

If you are interested in establishing time-tested “Organizational Core Values” through our Core Values training exercises, please contact us today at 980-221-9377 or by e-mail at info@smithgruppe.com.

 

 

Mapping The Sales Process – The Key To Customer Acquisition

Whether you are a start-up or a SBE (Small Business Enterprise), mapping a clearly defined sales process makes for a competitive advantage and identifies the drivers of costs in your sales processes. Once you have successfully mapped out your sales process, you will know how to make the sales process shorter and significantly more cost-effective.

In our most recent post “Listen To Your Customer … And Increase Your Revenue” on September 8, 2017, we spoke on calculating the lifetime Value of the customer. Now let’s take a look at Mapping The Sales Process that will bring that customer into your business.

Sales Processes Evolve Over Time 

The sales process necessary to reach and close your customers at start-up requires much more focus and investment of resources than the same process does once your business ins mature and poised for exponential growth and/or scale.

There are typically three segments of time that you would want to consider in order to be successful in generating sales revenue. Although the methodology and combinations of methodologies will vary, the primary focus is the same.

  1. Short Term Sales: In the short-term timeline, the primary focus of the sales process is to properly engage potential customer at the right stage in the “Buyers Journey”. Whether that be at the Awareness, Consideration, or Decision Stage, your sales process should create demand for your product or service. Your marketing campaigns being customer-centric means that you have created a product or service the customer wants and needs, your product or service is relevant to your customer and/or market segment; therefore you will need direct interaction with the customer in the space that is most utilized by the customer to explain why your product or service is unique and relevant to their needs or wants. Otherwise, you are obscure and unknown to the marketplace. The most important reason to be in constant and direct contact with your potential customer segment is so that you can quickly iterate to improve the product and/or service offering based upon customer feedback, which is more difficult if you funnel sales through third parties such as intermediaries or distributors. This is the infant sales stage and it will come to a close once  you start to see demand for your product or service that you did not generate through your own sales processes.
  • Direct Sales Team – often referred to as “Business Development” team – traditionally a wise and effective sales approach at start-up. However, they are costly and they require time and training to generate revenue effectively. The “Pareto Principle” is always in play, that 20% of your sales professionals will generate 80% of your sales revenue. The remaining 80% will generate a mere 20% of your revenue, as well as consuming a lot of time, energy and resources in training and re-training the sales team churn. Top sales talent is hard to retain, and identifying “rainmakers” versus the mediocre is hard to do while in start-up phase. Do your best to hire the top talent, pay them well at the start-up stage, not just at later stages when the company is starting to mature. Despite these challenges, a strong sales team is the only option you have when it comes to ensuring that the business does not run out of cash.
  • IoT (Internet Of Things) or Web 2.0 techniques, such as inbound marketing (Smith Gruppe is a Certified Inbound Marketing Firm), e-mail, social media marketing, and telesales can help lessen the burden of sales training and the expense of a sales team, especially at the start-up stage. Many products and/or services, particularly web apps, do extremely well with a free trial and well documented testimonials and high nPS (Net Promoter Scores) rather than the costs of a sales team. The greatest reward of this tool is that you can get extensive analytics on your customer segment through Facebook, Linked In, Google Analytics and other IoT type tools on your customer that are just  not possible through the human sales channel.
  1. Medium Term Sales: At this point in time, the focus of the sales mapping process moves from demand creation to the fulfillment of committed products and/or services as a word of mouth and the sales and distribution channels start to take on the burden of demand creation. You will know own the accountability and responsibility of customer relations, client management, and product and service support, which is paramount when it comes to customer retention and the ability to create additional sales opportunities.

Suppliers, Sales Channel Distributors as well as Re-Sellers are often used to serve   markets outside of your initial customer and/or market segment, or smaller   customers segments with a lower LTV (Life-Time Value). This way, your direct sales   team (who can tend to be more costly) can focus on the larger customer segment   with higher LTV (Life-Time Value). Sales Channels, Distributors, and Re-Sellers   ultimately lowers your Cost of Customer Acquisition (COCA); which we will cover   in our next blog post.

  1. Long Term Sales: Your direct sales team will focus on sales and product and/or service fulfillment. Once you have a mature business case, usually starting at year 3; your business will do very little demand creation, and will mature in customer relations, client management, product and service support. IoT, In-Bound Marketing, and telesales channels are beefed up when deploying long-term strategies. The business will make adjustments over time as the competitive landscape adjusts, which will affect the businesses ability to get to the long-term stage and what to do to maintain its market position and ultimately its competitive advantage.

Sales Process Map

In order to develop a short-term, medium-term, and long-term sales strategy, the business must understand which of the over 133 marketing/sales channels it will use and how the use of the marketing/sales channels will change over time. You can identify trends and the aligning KPI’s (Key Performance Indicators) specific to your industry as benchmarks.

The key to any degree of success is asking and addressing the right questions that your sales process is designed to address, and they are as follows:

  • How does your “Buyer Persona” and/or Customer Segment become aware that they have a problem and/or opportunity?
  • How will the “Buyer Persona” and/or Customer Segment learn that your product and/or service is the solution to their problem, or learn there is an opportunity that they were not previously aware of?
  • Upon your “Buyer Persona” and/or Customer Segment learning about your business (i.e. product or service), what is the education process by which they will become well-informed of your product and/or service; and thus analyze and make an educated decision to buy your product or service?
  • How do you close the sale?
  • How do you collect your money, and is the collection process mapped out in the CCC (Cash Conversion Cycle) of your business plan?

Short-Term

  • Direct Sales From Sales Team (100%) … All “Buyer Personas” Customer Segments -Focus On Target Markets

*This process continues until your business has consistent Word Of Mouth and becomes a mature product/service that is well-respected in the marketplace.

Medium-Term

  • Direct Sales From Sales Team (50%) … Largest “Buy Personas” and Customer Segments
  • Suppliers, Sales Channel Distributors, Re-Sellers (50%) … Medium “Buyer Personas” and Customer Segments ; Low LTV (Life-Time Value)

*This process eventually evolves into a laser-focused intentional e-commerce platform as the product/service becomes the marquee product/service that can be expanded into new market segments.

Long-Term

  • Direct Sales From Sales Team (25%) … Largest “Buyer Personas” and Customer Segments and New Markets
  • Suppliers, Sales Channel Distributors, Re-Sellers (40%) … Medium “Buyer Personas” and Customer Segments ; Low LTV (Life-Time Value) and Non- Core Markets
  • IoT, Inbound Marketing, Web 2.0 and Telesales (35%) … All “Buyer Personas” and Customer Segments in the Core Market with shared revenue and commissions going to Suppliers, Sales Channel Distributors, and Re-Sellers

Once you have gone through the necessary iterations of mapping your sales process, be sure to vet it with the experienced trusted advisors at Smith Gruppe.

Smith Gruppe has decades of experience across multiple industries, whether in a B2B or a B2C environment; and have helped many a client evolve from traditional to highly advanced and complex sales strategies. Call us today at 980-221-9377 or visit us at the “Our Services” page at http://www.smithgruppe.com. We would be more than happy to help!