Monday, October 1, 2012

Good management article: 10 ways to get people to change


Ten Ways to Get People to Change

How do you get leaders, employees, customers — and even yourself — to change behaviors? Executives can change strategy, products and processes until they're blue in the face, but real change doesn't take hold until people actually change what they do.
I spent the summer reviewing research on this topic. Here is my list of 10 approaches that seem to work.
1. Embrace the power of one. One company I worked with posted 8 values and 12 competencies they wanted employees to practice. The result: Nothing changed. When you have 20 priorities, you have none. Research on multi-tasking reveals that we're not good at it. Focus on one behavior to change at a time. Sequence the change of more than one behavior.
2. Make it sticky. Goal theory has taught us that for goals to be effective, they need to be concrete and measurable. So with behaviors. "Listen actively" is vague and not measurable. "Paraphrase what others said and check for accuracy" is concrete and measurable.
3. Paint a vivid picture. When celebrity chef Jamie Oliver wanted to change the eating habits of kids at a U.S. school, he got their attention with a single, disgusting image: A truckload of pure animal fat (see photo). When Oliver taught an obese kid to cook, he showed how cooking can be "cool" — walking with head up, shoulders back, and a swagger while preparing food. This gave the boy a positive image he could relate to. As Herminia Ibarra outlines in her book Working Identity, imagining new selves can be a powerful force for change. Use stories, metaphors, pictures, and physical objects to paint an ugly image of "where we are now" and a better vision of a glorious new state. This taps into people's emotions, a forceful lever for (or against) change.

fat.jpg
4. Activate peer pressure. As social comparison theory shows, we look to others in our immediate circle for guidance for what are acceptable behaviors. Peers can set expectations, shame us or provide role models. When a banker was told by his boss that he needed to show more "we" and less "me" behaviors, team members observed and called out missteps, such as inappropriate "I" statements. The peer pressure worked. This is also the case for online groups. Ask peers to set expectations and put pressure on one another. Sign up friends on facebook to check in on your behaviors (or use a company network tool).
5. Mobilize the crowd. In this video, would you be the second, the middle or the last person to join the dance? Most people would join somewhere in the middle, at the tipping point. Embracing a new behavior typically follows a diffusion curve — early adopters, safe followers, late-comers. Diffusion theory holds, however, that this is not a random process: Key influencers make it tip. They are often not managers with senior titles but those with the most informal connections and those to whom others look for directions (see ch. 6 in my book Collaboration for these "bridges" in a company network). Get a few early adopters to adopt a behavior, then find and convince the influencers, and then sit back and watch as it goes viral (hopefully).
6. Tweak the situation. How do you get employees to eat healthier food in the company cafeteria? You could educate them about healthy food. Or you could alter the physical flow. Google did just that. Using the cue that people tend to grab what they see first, they stationed the salad bar in front of the room. This and similar techniques are based on the red hot area of behavioral decision theory, which holds that behavioral change can come about by tweaking the situation around the person. You nudge people, not by telling them directly (eat salad!), but indirectly, by shaping their choices. Use different default settings, frame things as losses (not gains), commit in advance and so on.
7. Subtract, not just add. In The Power of Habits, Charles Duhigg tells a great story about a U.S. Army Major stationed in a small town in Iraq. Every so often crowds would gather in the plaza and by the evening rioting would ensue. What to do? Add more troops when the crowd swells? No. Next time the Major had the food stalls removed. When the crowd grew hungry in the evening, there was nothing to eat and the crowd dispersed before a riot could take hold. Change behaviors by removing enablers, triggers and barriers. Managers are so obsessed with what new things to add that they forget the obvious: Subtracting.
8. Dare to link to carrots and sticks (and follow through). This list would not be complete without the traditional HR lever, incentives, in the form of pay, bonus and promotion. In a famousHBS case, a banker at Morgan Stanley is up for promotion. His numbers are great, but he comes up short on the 360-degree review that assessed his behaviors. Tie incentives to both performance and desired behaviors. But, as Dan Pink highlights in Drive, such extrinsic rewards and punishments only work for non-creative behaviors and much less for, say, "innovate outside the box" (see his TED video here).
9. Teach and coach well. Many behaviors have a skill dimension: I may not know how to prioritize work, even though I am motivated to do so. Be a good teacher or coach (or, be a good learner if you're trying to change your own behaviors). This involves practicing the behavior, like a muscle, which is difficult especially for behaviors with a high tacit component (e.g., how to listen well).
10. Hire and fire based on behaviors. The list so far is about changing the person. But there is also selection: Change the composition of the team. Get people who embody the desired behaviors and get rid of those that clearly do not. This is based on theories of role fit: Match strengths(including your current behaviors) to what the job requires. This also goes for you: Fire yourself and find a better job if need be.
These ten principles for changing behaviors are rooted in different theories that are rarely put together: Sharpen the destination (1-3), activate social processes (4 and 5), tweak the situation (6 and 7), and revamp traditional HR levers (8-10).
Why don't we see more successful change in organizations? Because managers use only a few of these levers. Use them all.
More blog posts by Morten T. Hansen
Morten T. Hansen

MORTEN T. HANSEN

Morten T. Hansen is a professor at the University of California, Berkeley, and at INSEAD, France. He is the author of Collaboration and coauthor of Great by Choice (with Jim Collins). Follow Morten on twitter @GreatByChoice and at www.mortenhansen.com.

Thursday, September 27, 2012

Selling to big companies


Selling to Big Companies

Stategies to Break Through

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Do you ever dream of the day when your customer roster includes companies like GE, Wal-Mart or IBM instead of Ma & Pa Inc.? If you’ve ever made attempts to crack into a large corporation, you know how tough it can be.
Plus, it’s downright intimidating. Those companies are so huge that you don’t even know where to start. You question why they’d ever want to do business with your small, no-name fi rm.
Enough already! Big companies can be virtual gold mines for savvy entrepreneurs. If they like your product or service, they’ll eagerly expand their relationship with you. But that can seem like an impossibility when you’re still on the outside looking in.
Here are eight fresh, pertinent strategies you can use to set up meetings with corporate decision makers and ultimately land big contracts.
Break big companies down into smaller entities.
Unless you’re selling enterprise solutions, you’ll find it much easier to get your initial contract if you pursue opportunities in a small subset of an organization. Rather than being immobilized by the magnitude of selling to GE, you might pursue a relationship with the marketing department of the Fleet Services division of GE Capital Solutions. This enables you to find out the names of potential decision makers, conduct due diligence without being overwhelmed and implement a customized getting-in campaign.
Employ a foot-in-the-door sales approach.
When most sellers go after big companies, they want their prospects to know the full range of products or services their company offers. Yet taking this approach to a corporate decision maker immediately creates objections such as: “We’re happy with our current suppliers.”
Instead, you’ll be much more successful if you focus on solving a small or overlooked need that your prospect is facing. This enables you to slip in under the radar screen of long-entrenched incumbents who own the account. Once you get your fi rst contract, you can prove your value and expand from there addressing related divisions with a targeted approach.
Pay the price of admission.
Corporate decision makers are swamped. They have way too much work to do and not nearly enough time to get it all done. They protect their time at all costs; it’s their most precious resource. If you want a spot on their already overcrowded calendar, you have to earn it.
What’s the price of admission? Research the company, industry and marketplace. Gain knowledge of their business issues, challenges, goals and objectives. Acquire expertise on their processes, methodologies or critical success factors.
Busy decision makers don’t want to take time to update you about their business. Nor do they want to learn about your offering unless they know, from the outset, that you bring value. Do your homework before you make a call.
Speak the language of business.
When you’re trying to set up a meeting with a corporate prospect, most likely the fi rst thing out of your mouth is something like this: “Hi, Pat. This is Terry calling from XYZ Systems. We specialize in offering a full range of services for all your needs in [fi ll in the blank] area. Our products [or services] are top-notch and we’re passionate about meeting your needs.”
Wrong! That’s all about you and it’s going to lead to an objection. Instead, talk about the business results your company provides. For example, decision makers want to hear you can:
  • Speed up time to revenue on new product launches.
  • Increase sales to new market segments.
  • Reduce supply chain costs.
That’s the language they speak. To capture their attention, you need to speak it, too.
Launch an account entry campaign.
After four to five attempts to reach the decision maker, you likely conclude that they’re not one bit interested in your product or service. But, truth be told, that’s an erroneous assumption that could be costing you lots of business.
In today’s business environment, you should expect to contact corporate decision makers at least eight to 10 times. If you’re trying to reach C-level executives, expect to make 12 to 14 contacts before you give up.
Plan your campaign from the onset. Decide what business results you want to emphasize in your various contacts. Spread your value proposition over multiple voice mail or e-mail. Send interesting articles with short personal notes. Invite prospects to hear an industry speaker. Put on your own events, too. One to two contacts per week is appropriate, so long as you leave a business-focused message.
Focus on trigger events.
One of the best ways to crack into corporate accounts is to leverage trigger events—those happenings that cause a sudden shift in corporate priorities. Internal examples are mergers, spinoffs, venture capital funding, new leadership or changing corporate direction. External triggers include industry trends, economic issues, competitive moves or government legislation.
Savvy sellers continually monitor the media for information about what’s happening in their targeted accounts. They’re constantly thinking, “What could this mean for the company? How can I use this information to create a new opportunity?”
Then they launch a time-sensitive account entry campaign to their targeted account, emphasizing the urgency and value of taking action soon. By doing this, they speed up the sales cycle and encounter minimal competition.
Pursue multiple relationships.
When you’re working with big companies, you don’t want to have your entire future resting in the hands of a single person. This individual could change jobs, leave the company or even blockade you from meeting other decision makers within the organization.
Initiate contact with multiple people concurrently. Let them know you’re speaking to others in the company. Engage your contacts in helping you identify everyone you should know in the account. Most corporate decisions involve multiple people, so it only makes sense that you’d have relationships with many of them.
Use Sales 2.0 productivity tools.
Use Jigsaw.com or NetProspex.com to fi nd decision makers’ names. Check out LinkedIn.com to see if you have any networking relationships you can leverage. When you’ve identifi ed people you want to reach, see if they’ve posted a profi le online. Google their names to learn as much as you can. Use InsideView.com to be alerted to trigger events as well as possible dooropening connections. Set up Google or Yahoo alerts to be notifi ed of changes in your targeted accounts.
Some of these Sales 2.0 tools are free. Others cost a small monthly fee. In every case, they significantly enhance your productivity and your expertise, making them a wise investment.
Don’t fool yourself, though, into thinking that landing big corporate clients is just a numbers game. Traditional sales gurus tell you to just keep dialing, smiling and making those calls.
That doesn’t work when you’re trying to crack into big companies. Lots of planning, creative thinking, research and persistence are needed. A strong business case is essential. Corporate decision makers demand that you come prepared—with valuable ideas, insights and information that can help them improve their business, reduce expenses or increase revenue.
By using these strategies, you’ll turn your entrepreneurial dreams into a reality. First you’ll land one corporate client, then another. Before you know it, you’ll have an impressive customer roster with lots of upside potential. S
Jill Konrath is the founder of SellingtoBigCompanies.com, helping sellers win big corporate accounts. She is also a speaker and author of Selling to Big Companies.

Wednesday, September 19, 2012

Marketing Mix

For more than four decades, the term marketing mix has been used to describe the operational aspects of the marketing function. The term became popular in the 1960’s after Neil H. Borden published an article in the Journal of Advertising Researchtitled “The Concept of the Marketing Mix.” Borden’s marketing mix included product planning, pricing, branding, distribution channels, personal selling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding and analysis. E. Jerome McCarthy later grouped these ingredients into the four categories that we know today as the 4 P’s of marketing – product, price, place, and promotion.


So, if you’re a marketer, give these ideas some thought:

·        Marketing is about communicating your company’s value propositions, but it must also be about determining what those value propositions will be.

·        Marketing is about communicating the important features and attributes of your company’s products or services, but it must also be about determiningwhat features and attributes your products/services need in order to be attractive to buyers.

·       Marketing is about communicating your company’s price-value equation, but it must also be about determining what your company’s pricing strategy will be.

Take Accountability for Your Own Success

Human beings have an almost infinite capacity to rationalize failure. For example, many years ago I was working with a project team at what was then Chase Manhattan Bank when a once-in-a-decade snowstorm shut down New York City for several days. For the next six months, the project team used that snowstorm as an excuse for why their project was delayed.
We too have plenty of opportunities to make excuses for our missteps in today's business world. Technology changes rapidly and it's hard to keep up; it's difficult to keep track of global competitors; new regulations constrain our ability to take action; economic ups and downs make it impossible to plan; and the list goes on. In the face of these forces, taking accountability is difficult and painful. Furthermore, accountability has consequences: If you take the blame, you may also pay the price.
One of the most common excuses for lack of organizational progress is that "senior management" (or the CEO) isn't providing the right direction or sending the right message. Over the past few years of writing blog posts on a variety of topics — innovation, simplification, customer-focus, strategic planning, information management, or whatever — the most recurring comment from readers is that any changes on this particular issue (no matter what it is) have to start at the top; that without senior demands, support, and action, everyone else is powerless and no real improvement can occur.
Of course there is logic in this argument, because hierarchical organizations do take their cues from senior leaders. People respect positional authority and therefore give more weight to words uttered from the C-suite. But these hierarchies (for the most part) are not dictatorships. In fact, many of the CEOs and senior executives I've worked with over the years are surprised, humbled, and sometimes frustrated by their lack of real power. And the best know that telling people what to do will only get them so far.
The reality is that the most effective organizations engage in continual (and sometimes brutally candid) dialogue — across levels, functions, and with customers and suppliers. For organizations to be successful, dozens, hundreds, and thousands of people have to be engaged and aligned around common goals and directions. That doesn't mean that everyone needs to move in lockstep, but it does mean that everyone needs to take accountability, to see themselves as part of the solution on the field rather than a distant observer in the stands.
So that's where accountability comes in. If you want to be part of a successful organization, you need to be part of the dialogue — to share your views, influence others, and make a difference. If you don't feel that you can take the initiative to do that, then either think about what gets in your way or what you can do differently. If conditions don't allow you to speak up and exert your influence, go somewhere else. But waiting for senior leaders or the CEO to make things better is probably not going to be a very effective strategy. It makes more sense to blame the last snowstorm.

Wednesday, September 12, 2012

Great article on the power of charisma and cultivating it in your own life



Why You Need Charisma

Charisma isn't oratory or rhetoric; Lee is not a polished speaker or writer. Charisma isn't devoid of substance, either. Lee's numbers must look good — which they do, because he can entice the best people and that entices others. Lee is just at the beginning of his leadership journey, but people have faith in him — more accurately, faith in the groups he can assemble because of his magnetism. That's the essence of charisma.
Charisma has been getting a bad rap recently. The trend among leadership gurus is to discredit the "great man" theory of leadership (there aren't enough women leaders yet for a "great woman" theory to discredit), and emphasize instead the ideas of multiple leaders, followership, distributed leadership, and teams. It is true that no single individual succeeds by himself or herself. Even so-called "water walkers" (named after a religious figure, and one of my favorite images from my bookConfidence) have stones holding them up while they walk on the water — that is, support systems just below the surface. It is also true that the religious tinge associated with charisma conjures up images of blind faith, whether leading people to drink the lethal kool-aid or invoking the false hope that a new CEO can rescue a failing corporation all by herself. But rejecting charisma as a factor goes overboard, missing the personal appeal that makes someone a leader.
Similarly, U.S. Presidential elections have been criticized for emphasizing personality over substance. Social psychologists have turned likeability and competence into distinct variables, as though leaders can't have both. In election season, the likeability factor is measured but simultaneously discredited by pundits who caricature it as a choice of beer-drinking companions. I come down on the other side: I think people should choose the more charismatic candidate, all other things being roughly equal, because a leader that can charm us and lead us into a movement reflecting our better selves is also the most likely to use that appeal to get things done in a contentious political environment. Both Bill Clinton and Ronald Reagan had charisma in abundance. Leaders can hire for spreadsheet skills, but they can't outsource relationship skills.
Some people, like President Clinton or my young friend Lee, seem naturally high in charisma, but there are ingredients that can be cultivated: A genuine interest in people. Listening to their needs and concerns, and showing that you will help them achieve their goals. Treating people as though each is special and deserves attention. Remembering details about them.
In today's troubled world, entrepreneurship is sometimes treated as the new religion that will save the economy and build world peace. The analogy to religion is appropriate, because there's always an element of faith in innovation and entrepreneurship. That's why venture capitalists' rule of thumb is to bet on the leader, not the idea. Charisma can be a decisive factor.
More blog posts by Rosabeth Moss Kanter
More on: Leadership

Forbes- 3 mistakes and how you can avoid them


Mike Maddock
I am an Entrepreneur, Author and Idea Monkey.
ENTREPRENEURS 
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9/10/2012 @ 10:01AM |1,345 views

Three (Incredibly Stupid) Mistakes I Made -- And How You Can Avoid Them


In my last post where I talked about three incredibly simple questions the best leaders ask to change the world, I said intelligence is learning from your own mistakes and wisdom is learning from the mistakes of others.
So it’s in the spirit of contributing wisdom that I share three mistakes that I’ve made and unfortunately see other leaders making every day.
My hope is that this leaves you with a few less lumps on your forehead and a few more bucks in your pocket.

Incredibly Stupid Mistake #1: You assume the best ideas in your business will naturally win

This one may surprise you because most leaders trust their team to do the right thing and make clear, unemotional decisions—especially when it comes to good ideas. Unfortunately, most leaders are wrong.By assuming the best ideas will rise to the top, leaders often throw the best ideas to the wolves, and they are truly shocked to find out months later the great ideas have been forgotten and marginal ideas are still alive and kicking.What happened? Fear. The best ideas are often the scariest for the people who have to support and implement them. For them and their teammates, big ideas often mean dramatic change, lost jobs, new responsibilities, unknown futures—all of which are frightening and hard to do. Instinctively, we avoid danger. So it is safer and easier to find ways for the status quo to win and danger to lose. Presto, the ecosystem just killed the best idea.So how can leaders make big ideas happen? Match words with actions, such as comp models based on metrics that measure the change instead of rewarding the status quo. Don’t stop championing an idea until it comes to fruition. Kennedy did more than say, “We choose to go to the moon.” He made sure it happened. He ensured NASA had funding. He wouldn’t let go of the idea until it was real.

As a leader, you simply must champion and support big ideas. Otherwise they will die a slow but almost certain death.

Stupid Mistake #2: You hire proven, industry experts 

to shake up your market

We’d been in business for about 11 years when I decided we were ready to take it to the next level. So I went on a talent hunt to find people who had successfully helped grow a firm like ours from small to big. My logic was that they’d come to our company and repeat a learned pattern of success.
Cue the something bad is about to happen music.
There was only one problem with my idea: We were in the middle of building an Agency of Innovation—an unproven, new-to-the-world category that would rely on a creative new business model and offerings.
Needless to say, bringing in proven “experts” turned out to be a disaster. At first I was mystified by the fearful, slow-moving monster I helped create. After all, we hired four, incredibly smart, very seasoned and well-meaning leaders…who were fighting changing our business model tooth and nail because they knew what worked, and it didn’t look like the agency we were becoming.
Three years later, after two of our worst years in business, the wisdom of this lesson finally sunk in: Expertise can be your Achilles’ heel. Unfortunately, all too often our expertise keeps us from seeing possibility that is right in front of us. We know what worked in the past, what we can afford, what business we should be in, what our customers want…but we know all of this from experience that may no longer be aligned to the market. The market changes, and sometimes experts don’t want to.
As my friend Marshall Goldsmith is fond of saying: “What got you here won’t get you there.”
The solution is not to avoid experts. Use them when you have a specific or common legal, technical or industry challenge to solve. They will absolutely help you solve it more quickly.
But you’ll need to import experts from other industries if your mission is to change the rules of the game. Look for experts who have delivered similar solutions in a parallel way. It was fashion and beauty experts who revealed teeth whitening as a business opportunity, not dentists.

Stupid Mistake #3: Hiring your strengths instead of weaknesses

In our latest book, Free the Idea Monkey…to focus on what matters most!, I point out that everyWalt Disney needs a Roy Disney and every Steve Wozniak needs a Steve Jobs. Wherever you find great innovation, you will find symbiotic relationships like these. The challenge is that we like to be around people who share our strengths—people who are like us. So unless we are very aware of our strengths and weaknesses, we often go looking for the wrong relationships.
You see this with entrepreneurs all the time. The inspiring, creative entrepreneur hires an inspiring, creative operating partner, who hires an inspiring, creative sales lead…before long, you have a whole company of inspiring, creative people who are too busy using their inspiring “Sparkle Fingers” (think jazz hands) to notice the P&L is completely screwed up. Small wonder that Sparkle, Inc. is out of business in 18 months.
By the way, the same thing happens with highly analytic operators who hire similar folks. The results are similar, just less sparkly.
The solution? First, know thyself. Next, hire the proven “anti-you” as a partner.

There you have it. Three huge mistakes I made. When I spell it out in black and white, I can’t believe how dumb I was.
I’ve learned from my mistakes. I hope you can too, by not making them.