Beware of Verbal Traps

February 3rd, 2012

Good traiing for future politician or business leader

The news media this week have been buzzing with discussion of Mitt Romney’s remark, “I am not concerned about the very poor…”  Taken out of context, it was clearly very damaging to Romney, at least in the short run.

The Romney camp complained that the quote was taken out of context, and indeed it was. When you read the entire statement he made, it’s not quite as bad, although it’s still a statement he probably wishes he could take back.

The real point is, that anything a leader says can and will be taken out of context, and you don’t even need a “media conspiracy” for that. Even without the press as an intermediary, listeners can filter anything you say through their own biases and desires. They will provide their own context to interpret your statements. That’s why you have to constantly use outside-in thinking to anticipate what your words will sound like to your listeners.

At least politicians know this is a professional hazard and try to be on guard against it. Business leaders may not be as sensitive to the danger. They may not realize that they are being scrutinized just as carefully as a politician, in everything they do or say.

Does this mean that a leader has to be careful about everything he or she says or does in public? Absolutely.  It’s not a comfortable feeling, but it is a responsibility that comes with the job—and the bigger the job, the heavier the responsibility. You are always on stage.

Parents know this. Although it may seem that your kids ignore you unless they want something, they are always watching you carefully. When my son Andrew was about two, he was strolling on the sidewalk with his grandmother when a driver went speeding down our neighborhood street. As I heard from my mother later, Andrew shook his fist and yelled out a choice word. Wonder where he learned that?

Authenticity is wonderful, but it should be calculated or strategic authenticity. I’m sure Tony Hayward, CEO of BP, thought he was being authentic when he said, “I would like my life back” after the Gulf oil spill.

Gerald Ratner, the soon-to-be ex-CEO of the Ratner’s jewelry store chain in the UK, no doubt thought he was being authentic when he said, “Ratner’s has got very little to do with quality. … I say so because it’s total crap.”

One last example: my friend John Spence was running a training program once for the employees of a small family-owned firm when the owner popped his head in the door and asked, “Are you idiots learning anything?” Maybe he thought he was being funny, but no one in the room took it that way.

You also need to be prepared for what people will ask you. An off the cuff answer to a seemingly harmless question can have huge repercussions. In 1989, a spokesman for East German prime minister Krenz told the media that travel restrictions between East Germany and the West would be eased. A reporter asked when the new rules would go into effect, and the spokesman hesitated, shrugged, and said, “Immediately, I suppose.” Hearing this, thousands of people swarmed to the Berlin Wall, where confused guards, lacking instructions, opened the gates and the rest, as they say, is history.

Selling Soft Numbers

February 1st, 2012

Numbers can be your greatest ally in large B2B sales, because they have a certain sense of concreteness that  carries great weight in the minds of decision makers. The mere use of numerical data in a sales call or presentation sends important signals to the audience. It tells them that you are competent—you have solid information to back up your sales pitch. It tells them you are prepared, because you have taken the time to gather the data.

There are people who will tell you that only hard numbers count in sales—that if it can’t be measured, it does not exist. Hard numbers are those that are directly measurable; soft numbers are difficult to measure or too intangible to really count.

That advice may have contained more truth in previous days, when value in the economy consisted principally of things, but in today’s knowledge economy following that advice will cause you to leave huge amounts of value on the table. We’ve reached the point in our economy today where the value of intangible assets is almost equal to that of tangible assets, and the trend is sure to continue. In today’s increasingly intangible world, perception carries greater and greater weight, and effective salespeople know how to use it to their advantage.

Even data-driven decision makers and influencers have ordinary human brains, in which currents of intuition and emotion beneath the surface affect the direction of their thoughts. So, even if they discount the soft numbers that emerge from sales discussions, you can be sure they are at work in their minds, influencing the direction of the decision.

To salespeople, one of the biggest obstacles is that price is hard, but value and risk are soft. Yet, those two are the factors that will most determine the success of the decision.

Value is perceived in the eye of the customer. Will they value such things as time to market, employee engagement, innovation, security even if you can’t put a hard dollar value on them? Of course they will. It’s your job to affect that perception; don’t preemptively surrender by leaving out “intangible” benefits.

Because purchase decisions are fundamentally predictions about the future, there is always an element of risk in the decision. Risk, by definition, is uncertain and therefore “soft”. You can nudge—or even shove—the decision in your desired direction by asking the right questions that focus the customer’s mind on risk, such as the risks of inaction or of choosing a competitive solution.

“Soft” numbers have the disadvantage of being much easier for people to challenge, but that can also be an advantage, because frequently your customer might put a higher value on an intangible than you would dare to claim for it.

Besides, even hard numbers come wrapped in a lot of intangibles and uncertainties. For example, if you can prove that your solution will speed up a process by 15%, can you ensure that the time savings will translate into a proportional dollar impact? Maybe the improvement will be dampened by bottlenecks in another part of the process, or workers will use the extra time to take it easy, or the customer might not be able to sell the increased output.

Because soft numbers are so dependent on perception, the best way to get buy-in is to get your customers to tell you the numbers they want to hear.

Ask questions: Implication and cost questions get the customer to estimate risks and costs. Often customers will estimate risks and costs even higher than you would, because they are the ones who can vividly imagine the future if their current situation is not improved.

Even if you don’t get an answer, you can bet they are thinking about it. I was once in a sales call where a VP of Sales told me if his account managers did not learn how to talk to high level decision makers, they could lose some of their best customers to an aggressive new competitor. I asked him what that would mean in terms of lost revenue. His answer: “I don’t even want to think about it!” But of course, that’s exactly what he was thinking about when he said it.

Use their numbers: During the sales cycle, you should be talking to as many people as possible about their business situation, processes, and challenges. As you ask questions, use their numbers when you make the final presentation to senior management. Most times, you can reduce their numbers for greater credibility, and still have plenty of room to justify the investment decision.

Hard numbers are definitely useful, especially with skeptical buyers. The best thing about hard numbers is that they enforce boundaries on perceptions: you can’t sell the “sizzle” unless there is some steak there.

Yet in the end, selling is about influencing decisions, and decisions are based on perceptions, judgments and forecasts. That’s why, if you leave soft numbers out of your sales efforts, you will leave money on the table. Look at it this way: if only hard numbers counted in sales, the accountants would earn all the commission dollars.

Do Diligence

January 30th, 2012

This won't last

Recently, I wrote a post about the importance of determination vs motivation in getting things done in life. As I said, motivation is often short-lived; people get fired up and motivated all the time, but the enthusiasm evaporates the minute they encounter pain, frustration, or failure. During those times, they need determination to carry them through.

This morning, I read an excellent article that takes it a step further in time. Cal Newport takes an even longer view (and expresses it much better than I did), with his focus on diligence, which is about sticking to a pursuit for years at a time. As he says:

We’ve created this fantasy world where everyone is just 30 days of courage boosting exercises and life hacks away from living an amazing life.

But when you study people like (Steve) Martin, who really do live remarkable lives, you almost always encounter stretches of years and years dedicated to honing craft.

Motivation is short term; it gets you started and chooses the goal. Determination gets you through the rough patches in the medium term. Diligence keeps you at it long enough to make a real difference in your life.

Want to be a great speaker, a great salesperson, or great _______? It’s simple:  Do the work, learn all you can all the time, and stick with it for a long, long time.

I urge you to read Cal’s article yourself, and if you’re interested in a deep and thoughtful perspective on what it takes to succeed, follow his excellent blog, Study Hacks.

It Always Sounds Better in Your Head

January 26th, 2012

I’ve worked with thousands of bright and articulate people in my twenty plus years of training, people who are justly confident of their ability to rise to the occasion and think fast on their feet, whether it is in a sales call, an important presentation to their boss, or the give-and-take of internal meetings.

That confidence is usually an asset, but it often veers dangerously into overconfidence which leaves them vulnerable to error and discourages the preparation that could make them even better than they already are.

Here’s just one example. In teaching sales call planning I have salespeople list the top objections they expect to hear from their customers during the call, and next to it, jot down the key points they would use to answer the objection. Most salespeople find the first step easy to do, because they’ve heard some of the same objections over and over hundreds of times. Yet, because they’ve heard them so often, they usually resist writing something in the second column, because the answer is so obvious to them in their own minds. Unfortunately, when they role-play the call, and get the same objection they have heard over and over, they almost always fumble a little, as if they are re-inventing a good answer every single time. When we debrief the role plays, they will usually admit that they could have expressed the answer better.

Why does this happen? When we’re anticipating explaining something, our minds are working with far more information about that topic than the listener will have, and we are also processing thoughts about that information about four times as fast as the rate of normal conversation.  As a simple example, we can visualize the route from home to office in milliseconds, but it might take much longer to describe all the streets and turns. We might even know to turn at the third street past the bent stop sign, but not know the name of the street.

Turn that scenario into a sales situation: for instance, the customer might object to our higher price. We know the higher price is more than worth it because it allows us to provide additional features which will reduce the customer’s total costs—in milliseconds we can visualize the “route” of our argument, because our minds have crossed that familiar mental ground many times. But remember, the customer may be hearing it for the first time; how much are you leaving out or taking for granted?

The context we take for granted may make all the difference. Last week I taught a class for a group of engineers who, in addition to their day jobs, run classes to teach their technology to other engineers. These are very smart people teaching other very smart people, so they tend to overestimate both their own ability to teach the information and the ability of their listeners to grasp what they’re saying. Using a trick I learned from Made to Stick, I asked a volunteer to think of a simple tune and then tap out the tune so the others could guess what it was. Before he began, I asked him how confident he was that they would get it, and he guessed the majority would figure it out easily. Sixteen of us listened intently, and precisely zero of us could hear “We Wish You a Merry Christmas” in his random-sounding noise. I’m sure it sounded a lot better in his head than it did in our ears.

I had the same problem when I sat down to write this article. Forty-five minutes ago, I got this idea in my mind, but it took about fifteen minutes and several false starts before I finally got some traction and figured out what I wanted to say; and then more time to tease out how I wanted to say it.

That’s why it’s so important to write things down, or at least practice saying them aloud. As Barbara Minto says in her book, The Pyramid Principle: “No one can know precisely what he thinks until he has been forced to symbolize it—either by saying it out loud or by writing it down—and even then the first statement of the idea is likely to be less precise than he can eventually make it.”

Remember, the test of effective communication is not whether it sounds good in your head, but how it sounds in their ears.

Headed to Davos?

January 23rd, 2012

Don't believe it

I know that at least one of my readers is headed to Davos this week for the World Economic Forum, the annual gathering of world leaders, business titans, economists and other assorted experts, who come to find out what some of the world’s foremost experts have to say about our future.

The rest of us will have to find out what they say via the news media, but the point of this article is that it won’t be a good idea to take what they say literally and rush out to buy survival supplies. Regardless of how famous the speaker—in fact, because of how famous the speaker—be very, very skeptical. And don’t return home and start spreading the gloom and doom you are sure to hear.

The general theme of all the talks will be about how screwed up our system is and how we should absolutely follow their advice for major changes to our economies, societies and indeed our way of thinking.

In order to support their themes, each expert will confidently make predictions about what will happen in the coming decades; they will extrapolate current trends to paint dire consequences; they will predict the demise of the capitalist system and the sure downfall of our Western way of life—unless we immediately do what they advise.

As Klaus Schwab, the founder of the forum reminds incoming participants: “To respond to the expectations of the young generation, we have to provide them with the hope and confidence that they will not have to pay for the mistakes and excesses of the present generation. There is a tipping point where velocity, interconnectivity and complexity become so pervasive that the whole system collapses, regardless of whether certain elements at the surface have been addressed.”

(Wow—with that kind of pessimism I don’t think I’ll buy green bananas.)

Of course, there is a possibility that some may paint a rosy picture of the future, but it’s not likely at this forum, because pessimism is the current flavor of the day and none of these independent thinkers wants to be out of step with all of the others.

Besides, they love the attention they get, and the press is not going to waste much ink on positives.

At the risk of irony, I am going to predict that most of their predictions will be wrong. I don’t pretend to know which, but I am confident in my prediction because the record shows that most expert predictions are wrong, and the more famous and confident the predictor, the more likely they will be wrong. (Given my current level of fame, I guess that practically guarantees that I will be right)

As Dan Gardner shows in his book, Future Babble, dart-throwing monkeys as a class have a better track record than pundits, who in the past have confidently predicted mass starvation (when the world population was an “unsustainable” 3 billion in the late 60s as compared to 7 billion today), military dictatorship in the US, the rise to world economic domination of first the USSR and then Japan, the Y2K bug causing the collapse of our interconnected economy, etc.

In fact, if you go back through the record of previous predictors, as Gardner does, you’ll note that our world is always on the verge of imminent catastrophe. Yet somehow we always manage to pull through.

Of course, there’s always a chance that they may be right this time. But I wouldn’t put money on it.