NZ’s e-mag for sales leaders

NZSALESFEBRUARY 3Rd 2010 / IssUE 34

Are you oNe of this week’s wiNNers?

see iNsiDe!

we iNterview David Larsen

sales Manager & young executive of the year

selliNg BusiNess vAlue to seNior

executives

Harnessing thE PowER oF

YoUR FEARs

ExcEEd YoUR cUstomER’s

ExPEctAtIons

nZsm / FEB 3Rd 2010 / 2

FEBRUARY 3Rd / IssUE 34

this week's Must reADDoiNg thiNgs DiffereNtlywe interview the 2009 Young Executive of the Year, david Larsen, sales and marketing manager of Rayglass Boats.

selliNg BusiNess vAlue to seNior executives how an account planning process can help you.

resource corNerthe kNAck – how street sMArt eNtrepreNeurs leArN to hANDle whAtever coMes up By norm Brodsky & Bo Burlingham

NZsM cAleNDAr

two MiNute top-uphArNessiNg the power of your feArs overcoming fear and trepidation.

sAles trAiNiNg Directory

Quick fixIt’s not what you sell, it’s how you sell.

the close

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Are you oNe of

this week's wiNNers? see iNsiDe!

ABoUt /

short and sharp, new Zealand sales

manager is a free e-magazine delivering

thought provoking and enlightening

articles, and industry news and

information to forward-thinking sales

managers, business owners and sales

professionals.

EdItoR / Paul newsom

ARt dIREctoR / Jodi olsson

GRoUP EdItoR / trudi caffell

contEnt EnQUIRIEs /

Phone Paul on 04 586 4733 or email

pauln@nzsalesmanager.co.nz

AdVERtIsInG EnQUIRIEs /

Phone Richard on 09 523 4112 or email

richardl@nzsalesmanager.co.nz

AddREss / nZ sales manager, c/- Espire

media, Po Box 137162, Parnell,

Auckland 1151, new Zealand

wEBsItE / www.nzsalesmanager.co.nz

welcome back! It’s great to

start the year with a success

story for the sales profession.

the 2009 nZIm/Eagle technology Young

Executive of the Year is sales and marketing

manager, david Larsen of Rayglass Boats. certainly in the

past 10 years, david is the only sales manager to win this

prestigious award. we caught david before he took off for his

holidays, and asked him a few questions.

I find it particularly interesting that Rayglass have bucked an industry trend and passed ownership of the customers from the individual sales people to the sales team. this is a great example of ‘selling is a team sport’ in action, which enables the provision of outstanding customer service, and results in a successful sales team. the strong culture and their ability to understand their customers are clear elements of the foundation for their success.

As we launch into 2010, many will be looking back on

2009 as a year of discounting. whether discounting by choice or being forced to, in order to stay in the market when everyone else is dropping their pants, severely eroded margins are the result. competitors ‘buying the business’ has been a regular story I have heard. It’s easy to get there, but very hard to claw it back. Buyer expectations have changed. to get back on track will require taking the focus off the product and price, and onto what else the customer values.

In this issue, tony hillyard helps our thinking on this and explains how an account planning process can help you to sell value to senior executives.

we wish you well and every success in 2010.

PaulP.S. Remember to look and see if you're a prize draw winner. names are on page 3 & 5 – is it you?

Go to www.businessmentors.org.nzPhone: 0800 209 209

Independent Volunteer Mentorswhen you need them…

nZsm / FEB 3Rd 2010 / 5

t h I s w E E K ’ s m U s t R E A d

when you look at the bottom-line of the revenue generated by a sales person hitting one

hundred percent of their targets, as opposed to someone

hitting just forty percent, then the need to make the most

from the imperfect art of staff selection becomes clear.

Doing Things Differently

we interview the 2009 young executive of the year, David larsen, sales and Marketing Manager of rayglass Boats.

In december david Larsen, sales and marketing manager

of Rayglass Boats, was announced as the 2009 nZIm/

Eagle technology Young Executive of the Year.

We spoke with David and were intrigued to find out more when he said ‘we do a few things differently around here'...

nZsm: well done on winning the award david. Great for the marine Industry, and for the sales and marketing profession too. so tell me, what do you do differently?

dL: competition is evident between the sales people within most sales forces, however at Rayglass we work as a team. we have a communal customer base giving us the ability to follow up each other’s customers and leads. It works effectively and provides optimum customer service. we

trust each other and have a good open relationship. we are naturally competitive as sales people but there is no need to worry about strongly competing with each other.

nZsm: this is how a truly customer focused organisation should work, where everyone is working for the customer. have you always worked this way, or

At Rayglass we work as a team. we have a communal customer base giving us the ability to follow up each other’s customers and leads. It works effectively and provides optimum customer service.

nZsm / FEB 3Rd 2010 / 6

is this customer-centric approach something that has been implemented more recently?

dL: we adopted this approach about three years ago. It is now a point of difference that gives us a competitive advantage. the best way it works is by having a growth strategy that everyone in the team has input into to ensure everyone is working collectively towards the same goal. A high level of trust and team support is imperative.

nZsm: so how do you incentivise the sales team – there is obviously no ‘top sales person’ to aim for?

dL: we set targets, budgets, and bonuses like any sales team, but we compare ourselves to our competition within the Asia Pacific Group rather than against each other.

nZsm: In the december issue of nZ management magazine, you are quoted as saying that ‘the ability to sell boats rests on an intimate knowledge of the product’. I agree product knowledge is essential to be successful in sales, but what else is in the top three qualities or skills that are needed to succeed in sales?

dL:

nZsm: can you give a couple of examples of the type of goals you set?

dL: our goals are focused around building relationships with existing customers and expanding our export market. we believe if you get the relationship part right the sales come naturally.

nZsm: And any tips for raising energy and motivation when everyone is feeling a bit flat? Or do you just go out for a blast in a boat?

dL: Yeah - employ people that are self motivated!

nZsm: the award recognizes your attitude and that you have a passion to succeed. what exactly do you look for in a sales person with the right attitude?

dL: the above three qualities, plus motivation, confidence, perseverance and the firm determination to continue on no matter what or how many setbacks occur. team work, self reliance and never giving in are critical.

nZsm: You are also described as a natural leader. how do you lead your sales team?

dL: I use a modern dynamic leadership style where big decisions are discussed collectively. I am a big advocate for developing individual strengths to maximise morale and effectiveness. I am flexible in taking different approaches to suit the various needs of differing situations that will give optimum success.

nZsm: You are responsible for both sales and marketing at Rayglass, which is the same for many smE’s in nZ. this is in contrast to large companies where sales and marketing are separate departments, often with a disconnect between

them. So when it is all down to you, what comes first, the sales or the marketing? what drives what?

dL: obviously it’s hard to sell a product without establishing a brand therefore marketing is the primary component to set the foundation to sell from. If you then do a good job in sales your customers will play a big role in your marketing. therefore they both drive each other.

nZsm: what is your competitive advantage, and how do you leverage this?

dL: one of Rayglass Boats’ biggest competitive advantages is our technical ability, the ability to create a premium innovative product in a short period of time. Leadership and marketing provide the opportunity to promote Rayglass and ensure that premium boats are produced. Rayglass Boats has a strong company culture, which drives staff satisfaction and retention. this leads to increased

1. Goal orientated: we set weekly, monthly and quarterly goals. we also review them constantly and change them if needed. All my team set goals regularly and I truly believe that this is the secret to success.

All my team set goals regularly and I truly believe that this is the secret to success.

2. Passion: All the employees at Rayglass have a passion for the brand and industry. Also their high energy and good industry knowledge is essential. we work under a lot of pressure so we need to be very motivated and have a good energy level for the busy periods.

3. negotiation: I think having good negotiation skills is essential. Know the win/win... Understand your customer, know their needs and wants and have the ability to be persuasive. Know the objections you

could face and how to overcome them.

nZsm / FEB 3Rd 2010 / 7

skill development, innovation, quality and the ability to create customer satisfaction through a premium customised product.

nZsm: we are hopefully coming out of a global recession – in what way has the economic climate over the past 18-24 months affected your long-term thinking and planning for the business?

dL: It has given us the opportunity to look closely at our processes and our local market - Rayglass is continually developing new and innovative products. our focus is to continually provide the optimum customer experience and after-sales service, while keeping up with the expansion of our export market.

nZsm: Great that you have seen this time as an opportunity. About 50 percent of your business is export, so how do Rayglass succeed in international markets?

dL: A big part of our success is being affiliated with

Global Government Agencies, America’s cup and Louis Vuitton Regattas. After sales service, implementing the best build processes and using the highest quality components available to ensure we get the repeat business is at the forefront when dealing with the local and international markets.

nZsm: what is your one piece of advice to succeed in sales in 2010?

dL: have a plan, stick to it and customise it if need be, build relationships through your customer base, nurture your new business, have fun in what you’re doing and

keep an eye on the underdog.

nZsm: And for anybody thinking of moving into sales and

marketing management, what advice would you give them?

dL: Be passionate about what you’re doing. Act with

integrity and dignity. Give your team all the credit and don’t

be a glory hunter.

I am a big advocate for developing individual strengths to maximise morale and effectiveness.

nZsm / FEB 3Rd 2010 / 8

tony hillyard specialises in giving sales teams around the world smart solutions to help them win more business in difficult or very competitive markets. Visit Tony’s website at www.TheSalesAcademy.co.nz for more information.

selling Business value to senior executives how An Account planning process can help youBy tony hillyard

the first part of a two part article explores how

salespeople can use an Account development Plan

to help identify the key business problems that they

should be exploring with senior executives in their larger

customers, before they go to market for a solution.

selling value to senior executives

sales managers are constantly urging their salespeople to

sell ‘value’ to senior customer executives in their larger

accounts, and to do it early enough to influence any

Request For Proposals issued by the customer. however,

many salespeople repeatedly fail in this task simply because

they haven’t been able to build effective, business-based

relationships with their customer’s senior executives.

Many salespeople wait until the organisation has started to go to the market to find solutions for their problems... they have by then missed any opportunity to influence key executive thinking regarding potential options for the solution that could include key differentiators for their products or services.

nZsm / FEB 3Rd 2010 / 9

why Don’t salespeople sell value to senior executives?

Because to do this requires the salesperson to acquire an

in-depth understanding of a customer’s business, the key

business issues facing the customer and a real understanding

of how their own products and services can be deployed to

help the customer executives achieve both their business

goals and their personal, work-related ambitions.

many salespeople wait until the

organisation has started to go to the

market to find solutions for their problems.

salespeople justify this by pointing out

that it saves their time because by then the

organisation has a well-justified need and

probably has a budget for the solution.

however, whilst this is true, they have by

then missed any opportunity to influence

key executive thinking regarding potential

options for the solution that could include

key differentiators for their products

or services. they have also lost the

opportunity to establish themselves as a

trusted advisor to those key executives.

By failing to engage senior customer

executives in a business-based discussion early enough,

salespeople get locked out of the early, critical phases of

business problem resolution when senior executives are

most active. they are then limited to sales discussions in

the middle phase of the decision cycle, when a solution has

already been specified and their competitors are already

active in the account.

Senior E xecutive I nvolvement in the B usiness D ecision Process

80%

20%

60%

40%

E arly M iddle L ate

Phases in the B usiness D ecision ProcessSource: Siebel

U nderstand I ssues

Set Objectives

Set Strategy E xplore Options

Plan I mplementationSet Vendor

C riteria

E xplore Alternatives

M easure R esults

In this middle phase, senior executives are less active and

usually delegate the tasks of solution and vendor selection. It

can be seen from the graph below why attempting to engage

a senior executive in this middle phase of the decision cycle

is unlikely to meet with consistent success.

the Need for a structured Account planning process

A structured and well-thought-out account plan

would go a long way to addressing this common sales

management problem.

sadly, most account plans fail to arm the salesperson

with the appropriate knowledge to enable them to

sell business value to senior executives because

they are often simply an historical summary of what

has happened in the account, plus a profile of the

customer with basic facts and information about the

target organisation.

I often find very little critical analysis, if any, is applied

to the information contained in the account plan. when

completed, they languish on a bookshelf to be dusted

off once a year when the sales manager requests an

account review.

Many account planning processes fail to provide sufficient motivation for the salesperson to keep the plan current. usually the account plan is completed at the insistence of sales management and it provides little ongoing value for the salesperson for the effort required to maintain the plan.

nZsm / FEB 3Rd 2010 / 10

this is because the processes used for account planning rarely

direct the salesperson to critically analyse the information

they have garnered and to then make the connections to their

products and services. nor do they require the salesperson to

develop short and medium-term planned activities to ground

the plan in reality and keep the plan alive.

whilst some plans may show long term objectives and

strategies, they are usually too far in the future so the

salesperson and their sales manager ignore them under

the day-to-day pressures of life in a busy sales team.

Finally, many account planning processes fail to provide

sufficient motivation for the salesperson to keep the

plan current. Usually the account plan is completed at

the insistence of sales management and it provides little

ongoing value for the salesperson for the effort required to

maintain the plan.

to truly motivate a salesperson to rigorously complete

an account plan and to actively work the plan in a

professional and methodical fashion, the account planning

process needs to answer a number of important questions

for a salesperson.

As a minimum, the process should provide real help in

getting answers to the following critical questions:

A) how do I learn what the customer really values and needs?

this is the most important question of all. Until they know

the answer to this, salespeople cannot begin to respond

creatively to those needs with their products and services.

B) how do I keep the customer happy?

how will I protect the current revenue stream?

Where will I find new revenue streams?

these summarise the salesperson’s day-to-day selling tasks.

the account planning process must provide real direction in

these basic areas of the sales relationship with the customer.

c) where are we now?

where do we want to be?

what needs to be done to get there?

how will we know when we get there?

these are the questions that sales management most

frequently needs to ask about large accounts. they help

management decide where and when to deploy the

company’s resources. salespeople must be able to answer

them to gain management support and commitment to their

plans for the customer.

In the next article we will look at how to construct an

Account development Plan that stays dust-free and can

provide salespeople and sales management with the

answers to these questions and help salespeople identify

business issues for their customers where their products

and services have the potential to add real value.

© the sales Academy ltd. All rights reserved. July 2009

how do i learn what the customer really values and needs? this is the most important

question of all. Until they know the answer to this, salespeople cannot begin to respond creatively to those needs with their products and services.

nZsm / FEB 3Rd 2010 / 11

the knack – how street smart entrepreneurs learn to handle whatever comes upAuthor: Norm Brodsky & Bo Burlingham publisher: random house$24.97 from Fishpond

R E s o U R c E c o R n E R

too many start-ups don't make the grade – what

makes a successful business take off? starting

a new business is exciting, but there are many

traps for the unwary. some would-be entrepreneurs

stick so firmly to their step-by-step guides that they

don't see what's really going on. others become so

obsessed with potential problems they lose sight of

the bigger picture. what they really need, according

to serial entrepreneur norm Brodsky, is a mindset that

will help them to stay focussed on the real goals and

grab opportunities whenever they arise. he calls it 'the

knack'. It's helped him to build eight phenomenally

successful companies, and in this book he uses stories

of real companies facing real challenges to show you

how to develop it too.

Editors note: I enjoyed reading this over the holidays – it

contains some interesting insight into selecting sales people.

The authors say that they consider themselves to be ‘top gun’

sales people, but they do not hire the ‘top guns’ – they might

bring in the short term dollars but they don’t stay around and

cause too much damage while they are with you.

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nZsm / FEB 3Rd 2010 / 13

when was the last time you felt real fear? many

sales people would say that it was just before

they gave their last presentation, but it can

happen to us at all sorts of times. Fear strikes different people

in different ways, some only get worried just before doing

a bungy jump and others fear making a simple phone call.

no matter how safe we know the activity is, no matter how

much others tell us that everything is fine, no matter how

many books we read about overcoming our nerves, the fear

remains real and affects the way we behave.

Fear or trepidation is based on limiting self-belief and,

contrary to popular thinking, this is extremely common –

although many people wouldn’t admit it. consider this: if

you have complete and total belief that you are capable of a

task, that you’ll be able to complete all the necessary steps

however stressful the conditions become, and that you can

handle whatever is thrown at you during the task, why would

you be fearful? many fears aren’t based in truth, they aren’t

rational or logical but nevertheless they exist and they can

easily stop us in our tracks and prevent us from taking action.

outside of events like sky diving, which involve physical

danger, lots of people avoid fearful situations because they

don’t want to fail or perhaps, more accurately, they don’t

want to be seen to fail. Failure itself isn’t what bothers many

people – it’s the idea that others will see them fail that causes

the fear. Public speaking is one of the most common fears

in modern society but how much real physical danger are

people facing on stage? I suppose the rotten vegetables could

hurt you, but in truth most people are scared of what the

audience might think of them.

the athlete who is nervous about his performance faces the

same challenge – if he was certain that no matter what he did,

he couldn’t lose the race then he’d have no nerves. But this

situation never exists so athletes train themselves to use the

fear rather than let the fear use them. If we let the fear use us

we will run away but if we can harness the fear and use the

power that it provides then we can do an amazing job.

The ability to use the fear is what we call confidence and

fortunately it’s a skill that everyone can develop. It isn’t

genetic, something that only a chosen few are born with,

it’s a skill anyone can learn as long as they are prepared to

face their demons and attempt the thing they fear over and

over again, accepting that failure is a necessary part of the

learning process. Action cures fear – nothing else.

Harnessing the Power ofYour Fears overcoming fear and trepidation By John shackleton

t w o m I n U t E t o P U P

John shackleton is an international speaker, coach, author and performance expert. Visit his website at www.johnshack.com for more information.

nZsm / FEB 3Rd 2010 / 14

It’s interesting but most top athletes will tell you that the fear

never goes away, they just get better and better at using it to

help them perform. As many people have said: the butterflies in

the stomach will always be there, however, with practice, we

can get them to fly in formation. So what thoughts should we fill

our head with when we face that fear and we want to overcome

it? obviously we need to have high levels of self-belief and

convince ourselves that we are capable of achieving the task so

positive self talk is very important. I suggest saying something

like the following (as long as you believe that it’s true):

I can do this. I’m well prepared, I have •

everything that is required and I know I

have the capability to achieve what

I want.

If Fred smith can do this then •

there is no reason why I

can’t. I’m just as good

as he is and probably

better prepared.

I’m powerful, •

strong and in

complete control,

this success is

mine for the

taking. All I need

to do is relax,

concentrate on

the outcome I’m

looking for and

stay focused.

Unfortunately many

people have a negative self-

talk conversation like:

well I’ll give it a go and •

hope for the best.

I’ve never done this before and I’m •

not very talented at this type of thing.

Perhaps I’d be better off putting this off right •

now and waiting for a better time.

You can feel the fear and the failure contained in these

sentences and, at best, the person is being tentative. As

Anthony Robbins says, “when you are tentative you have no

power; if you want to succeed you need to exude certainty”.

Your self-talk must be strong and powerful even when you

don’t physically feel that you have complete control. It’s

worth taking the time to plan what you are going to say to

yourself next time that fear rears its ugly head and attempts

to take over.

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MID STRENGTHFULL FLAVOURFULL LIFE

nZsm / FEB 3Rd 2010 / 17

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Everyone lives by selling something

Robert Louis Stevenson

Q U I c K F I x

“ “ IMG_2752.jpg IMG_2754.jpg

IMG_2764.jpg IMG_2772.jpg

IMG_2776.jpg IMG_2777.jpg

IMG_2790.jpg IMG_2792.jpg

Quick fixwhen a client asks for something and you've said you will

send it through, always ask yourself, “what else could I give

them that they would appreciate?". For example, if they need a

catalogue on a particular product, I might send them a copy of

the installation sheet, or a case study profile as well. Remember

that we know more about our product than our clients, so they

don't necessarily know the right questions to ask – helpfulness

always wins out in the end.

thanks to John Braggins, hPm Legrand Ltd for contributing this

Quick Fix.

If you have a favourite ‘quick fix’ that you would like to share

with our readers (without giving your winning secrets away!)

then email the editor at pauln@nzsalesmanager.co.nz

You will be in to win a high powered laser pointer pen, courtesy

of the great guys at Brand storming Promotions.

wIn A LAsER PoIntER PEn FoR YoUR QUIcK FIx!

If you have a favorite ‘quick fix’ that you would like to share

with our readers (without giving your winning secrets away!)

then email the editor at pauln@nzsalesmanager.co.nz

You will be in to win a high-powered laser pointer pen,

courtesy of the great guys at Brand storming Promotions.

It's not what you sell, it's how you sell

Exceed your Customers’ Expectations