Santa Does Trust-based Selling

Some of you are partaking in the annual ritual of watching Christmas movies – most notably the perennial It’s a Wonderful Life. This is not about that movie.

Instead, I want to remind you of an interesting lesson from the seasonal also-ran, Miracle on 34th Street.

Nominally a cute tale about the existence of Santa Claus and the power of belief (featuring a starry-eyed 6-year-old girl, and the comic relief of the US Post Office dragging in all those letters to Santa as proof-of-existence), it has a hidden gem buried within about the power of trust-based selling.

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The “real” Santa (a kindly old man who is or is not deluded) is employed by Macy’s in its flagship store as, of course, Santa. Santa is nearly fired by a numbers-driven Type-A middle manager for suggesting to a shopper that she buy the toy from Gimbel’s across the street.  (The cynical shopper confounds the manager by congratulating him on “this wonderful new stunt you’re pullin’.”)

This “stunt,” of course, is the Acid Test of Trust-based Selling: the willingness to refer a customer to a direct competitor, if that is the right thing to do for the customer. But it doesn’t end there, with a whimsical sappy Santa.

Macy’s President happens along and instantly realizes that Santa’s customer focus is far more effective for Macy’s than the conventional approaches to sales.  He announces:

…not only will our Santa Claus continue in this manner…but I want every salesperson in this store to do precisely the same thing. If we haven’t got exactly what the customer wants, we’ll send him where he can get it.

No high pressuring and forcing a customer to take something he doesn’t really want. We’ll be known as the helpful store, the friendly store, the store with a heart, the store that places public service ahead of profits.

And, consequently, we’ll make more profits than ever before.

Exactly.

If you focus relentlessly on the customer, you-the-seller will do just fine. Even better “than ever before.”

The good news is you don’t have to believe in Santa Claus to do this. You just have to follow the Four Trust Principles:

  • Customer focus for the sake of the customer
  • Long- not short-term timeframe
  • Transparency
  • Collaboration

Sometimes we view this as a paradox: relentlessly focusing on the Other ends up serving You as well – but only if you do it genuinely, rather than as a means to an end.

Paradoxical yes, but a Truth well-known to most who delve into human relationships. You get back what you put out. Do unto others. Pay it forward. Be the change you want. And so forth.

Truly a message for the season. And not just for sellers.

Is it Ever Trustworthy to Go Around Someone to Get to the C-Suite?

Today’s post is by Trusted Advisor Associates’ own Andrea Howe and Stewart Hirsch.

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We just led a webinar on how to take a trust-based approach to building C-suite relationships. (We decided in the moment that we should call it the Hirsch and Howe Show.) There was a great question asked that we didn’t have time to adequately address, so we’re taking a moment to share our thoughts here.

For context, our webinar proposed three fundamental steps to building trust-based C-suite relationships:

  1. Get your “why” right: Your reason for pursing a relationship affects everything.
  2. Get your “what matters” right: Look thoughtfully and expansively at what would motivate them to engage with you.
  3. Get your “how” right: Follow trust-based best practices for (a) getting and (b) navigating the CXO conversation.

The question came up in our discussion about getting your “how” right:

What if your client below the C-level exec is blocking your access to develop a new relationship with the exec—do you ever go around him or her?

The short answer is possibly, but IF AND ONLY IF, two conditions are met:

  1. You have a darned good reason.
  2. You then do it very skillfully.

First, the darned good reason part.

The hardest work to do with this situation may not actually be the difficult conversations that are required should you choose what we’ll call a “go-around,” but rather the mental prep required to assess the situation in a trustworthy way in the first place.

What’s key is making sure you’ve asked yourself WHY you want access to the C-suite person (step 1 above), and that you’ve arrived at a good answer from a trust-building standpoint.

Let’s pause here for a quick poll: What are good reasons, in general, to pursue a C-Suite relationship? Choose all that apply:

  • So we can show them our capabilities
  • Because <insert competitor name> is in there
  • To show them we’re better than the competition
  • To secure a champion to help us expand our offerings
  • Because the lower levels aren’t listening
  • Because they’re the real decision-makers
  • Because we’re getting nudged/pressured/pushed to have more “eminence” by our colleagues
  • All of the above
  • None of the above

The answer that reflects the most trustworthy approach is … drumroll … none of the above.

Think about it: every other option is actually a demonstration of high self-orientation—sometimes sneakily-so. In other words, it’s you wanting something for your benefit, not for theirs. The same is true when it comes to go-arounds.

Going a little deeper, consider what’s often at the source of (and problematic about) each of these motives:

The Why The Source What’s Problematic
So we can show them our capabilities ·      The desire to be heard, which is often far greater than our desire to listen

·      Ego needs

·      A firm norm/assumption that this is the right thing to do

You’re leading with what matters to you, not them.

 

You become a hammer searching for a nail.

Because <insert competitor name> is in there ·      The desire to win/gain power <Competitor name> might be doing really well by your client. If you’re a true trusted advisor, you’ll celebrate that (gasp!).
To show them we’re better than the competition ·      The desire to win/gain power

·      Ego needs

If they’re happy with their current provider, they’re not going to believe you’re better. And you won’t convince them that you’re better by talking at them about your capabilities.
To secure a champion to help us expand our offerings ·      The desire to win/gain power While you care about expanding your offerings, it is highly unlikely that your client cares one iota about expanding your offerings. Leading with your desire to gain more share of the account/market because that’s what your annual goals state (for example) is all about you. Your needs aren’t their problem.
Because the lower levels aren’t listening ·      Avoiding rejection/embarrassment

·      Avoiding what might be hard work to improve these relationships

It’s possible they’re not listening because you’re not being effective, or because they don’t trust you—a go-around therefore doesn’t address the real issue(s), and might even exasperate things. Imagine if someone tried to go around you.
Because they’re the real decision-makers ·      The desire to win/gain power

·      Ego needs

Decisions are often left to—or strongly influenced by—those very people you are trying to go around. So the “go-around” could backfire, because the decision-maker and those in the client organization at your level are both annoyed.
Because we’re getting nudged/pressured/pushed to have more “eminence” by our colleagues ·      Avoiding rejection/embarrassment

·      Ego needs

This is a you-centric motive, not a client-centric motive. And it’s an internal issue to address, not a client issue to address.

 

If some of what’s in the table above seems harsh, well … our language may be too strong to apply to you. Or maybe not. Consider that you can be a well-meaning person of high integrity who likely still falls prey to some variation of what we’ve sketched out simply because you’re a card-carrying member of the human race. The mindsets we describe are actually common, and we’ve heard them from many humans.

Also consider that, in general, everyone’s first “why”—in other words, your rational reason for a go-around—is almost always wrong.

So, what are some good reasons for a go-around?

We brainstormed, and so far we have come up with only one clear, unambiguous reason:

The project, organization, or CXO her/himself is at serious risk—either because the lower-level person is incompetent or is sabotaging (perhaps consciously, perhaps not).

That’s it.

If your situation meets the criterion above, read the next paragraph. If not, jump two paragraphs down.

How do you go-around skillfully?

We came up with at least three best practices:

  1. Talk to people inside your firm about your plans so that you understand how other firm relationships with the client will be affected. You need a full understanding of just how much risk the go-around implies. The stakes could be high. A go-around that backfires, and upsets the CXO enough to call the firm’s relationship into question, could be very costly. Buy-in from your colleagues is worth seeking.
  2. Be transparent with the person you’re going around, either before the go-around, or immediately after, with one exception. The exception: if the person is a “bad actor”—i.e. someone whom you truly believe, based on evidence, is likely to act in an unethical way.
  3. Name It and Claim it with the CXO. Use caveats to show your sensitivity to the situation. Acknowledge that you’re taking this risk because you wholeheartedly believe it’s in her/his best interests, rather than yours. Let it be known that you’ve been (or will be) transparent with the person you’ve just gone-around. In other words, handle it with an “all cards on the table” kind of approach that belies your own sensitivity and vulnerability in the matter.

What are some viable alternatives to a go-around?

We brainstormed this, too, and came up with two for starters. Note they are not mutually exclusive:

  • Take yourself out of it. If a relationship with “the boss” is the right thing to pursue for the right reasons, but your current relationship(s) are creating a barrier, then look for someone else in your firm who could work that C-level relationship instead of you. If it’s really about what’s best for the client, then you, personally, are not all that important.
  • Work the relationship with the person who seems to be gatekeeping. This may be the hardest of all the options—maybe even harder than the go-around. Dare to put the gatekeeping issue on the table. Find out why she or he is hesitant or concerned or just plain obstructive. What’s missing in your relationship? In what ways might you not seem trustworthy enough for that person to take a risk on you? An honest dialogue could open many doors wide—including the one leading you directly to the executive. You might also discover ways to make the gatekeeper look good for being the one to bring you in to the CXO.

Now you have the Hirsch and Howe point of view on the matter. And now you know why we couldn’t adequately answer the question in the two minutes that we had on the webinar. It’s complex, with a lot of nuance, and requiring masterful mindsets as well as skill sets.

Kind of like the nature of trust.

Do You Trust Your Customers? Do They Trust You?

It’s popular to claim that “trust is down.” Mostly, that’s true. It’s definitely true that trust in government in the US has declined. It’s a bit less true of big business, but not enough to be proud of. Edelman basically has it right: trust is broadly on the decline.

This is mainly a business blog, so let’s focus there. My clients have lots of questions about trust, ranging from what to why to how. But most of them have one question about all others: How do we get our customers to trust us?

It’s the wrong question.

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A long time ago, at least as we remember it, we all had more control over our businesses and our lives. Not everything we wrote would appear instantly on the Internet. We didn’t need to mention price until we had discussed value. We largely controlled our public image.

Back then, it wasn’t hard to trust our customers. After all, we held all the cards. And our customers more or less trusted us because we appeared trustworthy.

That was then; this is now. Information now is drastically, radically free. Copyrights and trademarks are losing their protective power, and first-mover advantage lasts a nanosecond. Your brand image is determined by forces outside your control.

Nowadays it’s hard to trust our customers. They can integrate upstream, threaten us with reverse auctions, switch suppliers in a heartbeat, force us to deal with procurement, and screen us out of every advertising and promotional channel we can think of. Worst of all—they trust us less than ever before. The ingrates!

In such an environment, the natural response is to tighten control. That is precisely the wrong response. The right response is not to stand in front of the wave, but to get out your board and surf it. And ironically, the best way to get our customers to trust us may be to trust them first.

Ways We Control

Given the volatility in nearly every aspect of business over the past decade, we don’t need more scary headlines. We are all overly conscious of terrorism, intellectual property theft, out-of-control jury awards, computer hacking, identity theft, and unscrupulous business practices. The fear factor is more than adequately taken care of just by reading the headlines (online) or watching the evening news (cable, delayed so as to strip ads).

We have responded with controls. We put screens and filters on our email, phones, and social networks. We use password protection programs. We instruct our lawyers to include non-compete clauses. We require our subcontractors and customers to indemnify us against all conceivably imaginable negative events. We engineer our CRM systems to include sub-routines to cover all possible downsides to the sale.

AI and Big Data are bringing new dimensions to this dynamic. We no longer have to trust our customers to tell us what they want: we can discern it from their behaviors, from scraped data. Increasingly we can divine intentions, rather than having to trust what our customers themselves say.

We do all this to manage risk. But when we expend so much energy on the negatives, we tend to mistrust everyone—customers, employees, subcontractors, strategic partners. And the result of all that mistrust is—mistrust handed right back to us. Trust is, after all, reciprocal: what you put out, you get back.

All the stats about the decline in trust tend make us think we’re seeing a decline in trustworthiness. Often that’s true, but it also implies a shift in our propensity to trust. We have become, as a business culture, less willing to take the risks that are necessary to building a trust relationship. And when we trust less, we get less trust back.

The Dynamics of Trust and Trusting

We sometimes forget that a relationship of trust requires two players: one to do the trusting and one to be trusted. Those roles are very different, and the players have to switch back and forth between them.

All the risk lies with the trustor, the one doing the trusting. By contrast, the one being trusted (the trustee) has a largely negative task: to not appear untrustworthy. But, if all the trustee does is appear trustworthy, and never take any risks, eventually the trustor will become suspicious: “Why am I always taking all the risks here?”

Healthy trust relationships are composed of an ongoing ever-reciprocating pattern of trusting and being trusted, with the roles frequently shifting. I reach out my hand in a gesture of greeting, risking your disapproval, and you return the gesture by shaking my hand. You share some important information with me, risking my abuse of that information, and I return the gesture by ensuring that I will treat the information appropriately. It is the back and forth that forms the pattern of trust.

Trusting Customers and Trustworthy Customers

Henry Stimson is credited with saying, “The only way to make a man trustworthy is to trust him.” Other pieces of received wisdom echo the same principle: “Whether you expect good or ill of someone—that’s what you’ll get.” “No pain, no gain; no risk, no return.” But what does all this have to do with customers?

Plenty. Let’s take buying. In the old days, we controlled the information and doled it out when it suited us to suit our sales process. Buyers know they no longer have to put up with that; they can put together almost all the information necessary on their own if they have to. They now resent having to deal with salespeople to get information that should be available on the web.

So, trust your customers. Put all your information out there on the web for your customers to see. Don’t force them to wade through salespeople to get it. Instead, use those salespeople to respond to intelligent questions from customers who arrived informed on their schedule.

Don’t force your “customer service” on customers. They no longer believe “your call is very important to us” or “our menu has changed,” and they can’t stand having to repeat their problem at every step of a convoluted process built because you don’t trust your employees and reverted to low-cost automation. Instead, invest in educated, empowered, always-available support.

Don’t hold back on price until value is established. Get price out in front; trust your customer to be smart enough to ask you value questions to determine whether the trade-off is good. Don’t try to “close” your customers. That’s just another form of control. Instead, trust them to make an intelligent decision, and help them by providing useful questions.

Don’t force your customers through returns hell. Take their word for it that the jacket didn’t fit, it wasn’t the right book, or they already paid for the software.

And while you’re at it, trust your employees. Don’t start the employer/employee relationship by threatening them with lawsuits if they ever leave and try to work for a competitor. Don’t sue people who “steal” clients from you (what do you mean “your” client, anyway?). Above all, listen very carefully to them. They’re the ones who can tell you what customers are talking about.

Back to the Most Common Trust Question – How do we get our customers to trust us? By changing the question. Channeling Stimson: the best way to get customers to trust you is to first trust them.  Try focusing instead on asking, “How can we find ways to trust our customers?”

It’s not the latest insight. In fact, it may be the oldest. But it still works.

Trust, Inc.

Walgreens, the venerable (116 years old, second largest) US drugstore chain, has announced a new tagline as part of a new brand positioning strategy.  No longer will it be “At the corner of happy and healthy” – the new mantra is “Trusted Since 1901.

Well.

I wish Walgreen’s nothing but the best, and don’t doubt their good intentions. Nor are they necessarily wrong on the facts. And, Walgreens is hardly alone in wanting to trumpet their levels of trustworthiness, or their trusted relationships with customers.

However, the use of “trust” in corporate branding is problematic on at least three dimensions. Walgreens provides a good opportunity to explain why.

Cognitive Dissonance

I always tell people not to call themselves a ‘trusted advisor,’ and certainly not to incorporate the phrase into their advertising. It’s like saying “humility is my best quality.”

Trustworthiness is something of a virtue, and calling yourself virtuous just explodes the claim. It’s wonderful when other people use trust to describe you or your relationship with them – as long as it’s them saying it. (“Trust me” may be the two most trust-destroying words you can say).

Calling yourself ‘trusted’ is also different from calling yourself innovative, or respected, or high quality. Walgreens might want to take note that none of the ”Top 10 Most Trusted Brands” brands incorporate trust itself into their taglines.

They might also take note of how it’s worked our for “The Most Trusted Name in News,” whose tagline allows Donald Trump a convenient foil.

Risky Business

Claiming to be trusted is a bit like the Gary Hart strategy – daring the press to find otherwise. It’s like a red flag to a bull.

How many people will manage to dig up the fact that Walgreens made a substantial amount of money and growth during Prohibition by selling (legally) whiskey? Or that the pharmacy business managed to quickly carve out a very liberal interpretation of “medicinal purposes” during that period? Sorry, Walgreens, it’s what you’re setting yourself up for.

History aside, stuff happens. Ask BP about oil spills, or the old Union Carbide about explosions. Or, closer to home, J&J about Tylenol redux. Mis-steps are magnified, and stay in the press longer, for those who claim to be trustworthy in the first place.

Corporations are Not People

This is the biggest one. “Trust” is a word with much contextual nuance of interpretation. But one thing we can say for sure: personal trust is richer and stronger than corporate trust.

We trust people on an emotional level. We trust people based on our views of their intentions, their transparency, and their willingness to trust us.

By contrast, corporations’ intentions are usually very much self-oriented; transparency is little-practiced; and rare is the corporation without legal disclaimers governing their customer relationships. That’s not a criticism (well, it is a little bit); but it’s mainly just stating the difference between protein-based and legally-based entities and the ways we trust them.

Most corporate executives would probably agree with this in the abstract – but they ignore the implications in the particular. If they really believed it, they would be spending money on becoming more trustworthy, rather than on PR campaigns to be seen as more trustworthy, or on reputation management to change perceptions rather than underlying reality.

So What’s a Company to Do?

A company that is serious about being seen as trust-based would start by recognizing – it’s personal.

Trust is not created by spin, advertising, PR, or taglines. It is created by the collective personal behavior over time of corporate employees interacting with customers, suppliers and each other.

This means corporate trust is a culture-and-values issue – not a process-and-marketing issue.

A company that is serious about trust will, among other things:

  • figure out how to trust its customers and suppliers, often by taking some form of risk (because trust is reciprocal – we trust those who trust us);
  • invest in customer service by focusing on effectiveness, not efficiency; by using ROI, not budget variances, to measure success;
  • hire, train for, and role-model best practices for interpersonal trust, including emotional intelligence, strict truth-telling, and vulnerability;
  • consistently prioritize long-term, relationship-based behaviors over short-term, self-aggrandizing behaviors, in its compensation and promotion policies;
  • focus on ways to establish deeper relationships with stakeholders, rather than focusing on issues like NDAs, non-competes, or arbitration clauses;
  • make heroes out of people who model trust-based behavior.

We trust those more who do not protest how much we trust them.

 

It’s Always Risk-on for Selling

In the financial trading community, there is a concept called “risk-on, risk-off,” or RoRo for short. It refers to the general market sentiment at a point in time. Simply put, if the prevailing trend is toward more risky and aggressive instruments (e.g., stocks, emerging markets), that is called “risk-on.” If the trend is toward less risky and conservative assets (e.g., cash, developed markets), that is called “risk-off.” Traders have evolved all kinds of complex strategies to deal with this indicator.

What does that have to do with selling professional services? It’s tempting to view selling as a series of RoRo moments, where sometimes it’s appropriate to take a risk and sometimes it’s not. Maybe the client has become complacent, and you need to shake things up. Or maybe the client seems overwhelmed, and you need to back off. It feels only natural to construct our responses to situations based on our readings of “risk-on, risk-off” coming from the client.

That might seem natural, but most often it’s more wrong than right. In selling, particularly in the complicated worlds of complex or professional services, we systematically make one mistake. We err mostly in one direction. We keep doing the same thing, expecting different results. We have a built-in bias to view the world as risk-off, and we need to shift our attitude toward risk-on.

People and Risk

Adult humans have a well-developed sense of fear and suspicion. Maybe it comes from our ancestors’ close encounters with saber-toothed tigers (that food looks enticing, but I’ll pass it up if I have to walk too close to the tigers). If we view the world as full of such threats to our existence, then we behave in a risk-off mode, being very careful.

If we view the world as risk-off, we will guard against a Bad Thing Happening. And if that means we leave a Good Thing Undone, we are fine with that decision. Who wants a close encounter with a sabere-toothed tiger, anyway?

But suppose the world is risk-on, and we constantly behave cautiously. Suppose we always leave Good Things Undone, not taking a small risk, never daring to take the next step forward. Suppose we are so afraid of doing “sins of commission” that we constantly commit “sins of omission.” That can end up very badly, too.

The world of sports has plenty of adages about this situation. No pain, no gain. Just do it. Swing the bat. Nothing ventured, nothing gained. As Wayne Gretzky put it, “You’ll never miss a shot you never take.”

Finally, add the dimension of time. If the Good Things are far in the future and the Bad Thing is here-now, we are likely to focus much more on the here-now Bad Thing even if the future benefit is much greater and well worth the risk. In fact, even if the Bad Thing is far in the future and the Good Thing is here-now, people tend to be very cautious about the future negative, even if it is smaller than the positive.

Again, we have sayings: A bird in the hand is worth two in the bush. Really? Unless you’re starving, turning down a two-to-one deal isn’t very smart. A poker player who constantly folds will never lose big, but he’ll slowly bleed dry. The suitor who never asks out the enamorata is never rejected, but nonetheless always dines alone.

Risky Business

Business is full of risks, to be sure. Hiring the wrong employee, investing in the wrong market, those things are real and we are right to worry about them. But in selling, the risk of not doing the right thing is a lot higher than the risk of doing the wrong thing. We act as if we are in a risk-off world, but in selling, more often than not it’s a risk-on world.

The saber-toothed tigers we face in selling seem to come in droves: The client might be offended. I don’t want to look unprofessional. If my price is too high they might not buy. That might be inappropriate. I don’t really know that area of finance. It’s too early in the relationship. They might not like me. They might go with my competitor. My peers won’t respect me. I might be wrong. I might say the wrong thing.

So we do nothing. We take the easy way out, the path of least resistance, all the while telling ourselves that we have avoided an imminent saber-toothed tiger. And sure enough, no tiger appears. By folding our hand, we avoid catastrophic loss. But we never win, or never win much. We act like the world of sales is risk-off when in reality it is far more risk-on.

Fighting Human Nature

The world of product sales approaches the problem as mainly one of motivation. Sales books and conferences are full of admonitions to get out there and try some more, it’s a numbers game, don’t take rejection personally, read this book, listen to that motivational speaker.

You probably don’t see yourself that way. You think motivational speakers are cheesy, and losing a widget sale pales in comparison to the agony of being told that your particular service just isn’t all that good. You need something deeper, something that really changes your approach to risk-taking. And reviewing the odds isn’t going to cut it. It’s human nature we’re dealing with here, and the brain is over-matched when it’s up against the heart.

Instead, recognize the powerful-positive role that risk-taking actually plays in sales. Unlike with saber-toothed tigers, the act of taking a small risk now actually lowers the odds of a big risk later. Yes—small risk-taking mitigates big risk. If you take risks, you lower the bigger risk.

Think of a vaccine. For the small pain of a shot in the arm, we gain protection against a plague. For the small risk of a hand extended, we gain greater likelihood of a conversation to follow. For the small risk of making a phone call instead of an email, we lower the risk of later emails being left unread.

The key to taking more risks lies in taking a broader view: the risk is not the risk of one transaction now; it is part of a series of transactions to happen over time. In that broader view, taking the small risk now is the least risky thing you can do.

This is where we part ways from our product-selling brothers and sisters. They have to sell widgets, pretty much one widget at a time. It is much easier for us, selling complex services, to envision relationships and lengthy time horizons. And that is the key to mastering the risk problem.

The world of sales is far more risk-on than we think; the environment is much more welcoming of small risks than we think. The key to beating risk lies precisely in taking the small risk of making that phone call, commenting on that shared intimacy, being transparent about your experience, and being open about your price.

It’s a risk-on world out there for those of us willing to see the bigger picture.

 

Trust and Selling to the C-Suite: Interview with Ken Roller

Ken Roller is an experienced B2B salesperson; he spent the past 35 years in Corporate America working for 2 industry leaders (including 21 years at Intel), serving Global 1000 customers.

Ken’s classic sales credentials are impeccable: he exceeded his quarterly sales quota for over 20 years straight – 83 quarters in a row – in a time and in industries that faced brutal competition and roller-coaster global economic conditions.

I came to know Ken during his tenure at Intel; he was extremely helpful to me at a time I was writing Trust-based Selling. We’ve stayed in touch; I asked Ken to share with us some hard-earned wisdom from his career.
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Charlie: Ken, it’s great to have you ‘here’ on Trust Matters. I’ve always thought you embodied many of the things I write about.

Ken: Thank you. I’ve always thought that we’re kindred spirits in our concepts and feelings on how we work and relate to customers and people. One of the inflection points in my professional career was when I read “The Trusted Advisor.” It succinctly captured the essence of selling with integrity, something that is paramount to my being and who I am.

Charlie: Well then, you’re a great person of whom to ask this question: How do you establish trust with “C” level execs at some of the biggest companies in the world?

Ken: First, I’ve always taken seriously my counsel with my customers and would never jeopardize their livelihood, career and their family’s future with my guidance. That’s not pablum, that’s truth; it is the root of my answer to your question.

It’s easy to tell somebody about your experience and the benefits of your products and services. It’s harder to demonstrate that you “truly care.” That has always been a differentiator for me. You quote the late great George Burns as saying, “you can’t fake sincerity.” He’s right, and the continued attempt to do so is why there’s a pervasive view of salespeople being the proverbial “used car salesperson,” with their only concern being themselves and their company.

Charlie: Now, let me just get this straight. I ask you about selling to the C-suite, and your answer is “you have to care?” I don’t think that’s the typical canned response from most sales ‘experts,’ is it? Maybe you can give an example of how you showed a customer “you cared” in this manner?

Ken: Sure. I was blessed that the companies I worked for had world-class products. Even so, the reality is that not all products are always great – or even good.

I was working closely with the CTO and his staff at one of the largest Financial Services companies in the world. Our competitor’s product was 78% faster than our comparable product out of the box! That was the context in which I put together a several day meeting at our facility in Ireland, and had this company’s entire senior staff fly in from Europe and the US for a strategic update.

During the meeting, I asked them if our technical team could work with them to ensure that they implemented our solution properly so we could have a fair bake-off – and, I told them, if our competitor were to beat us, they should purchase their product and shame on us.

When I said that, you could hear an audible gasp come from my company’s execs. They had a look on their face of “Did Ken really just say what I think he said”?
The thought that my career was over suddenly crossed my mind.

However, my customer’s CTO noticed the ruckus I caused and immediately stood up. He said, “Thanks, Ken, for putting together this wonderful 3-day gathering; you’re a breath of fresh air in an industry that is polluted with unscrupulous salespeople.”

“You educated us to the fact that your next generation product, coming out in a few quarters, will have a new micro-architecture that will enable you to leap-frog the performance of your competitors. We believe you, and trust you, and are looking forward to testing your new platform ASAP. We want to work with you Ken.”

He basically told my executive management that my candor and “caring” should be applauded; and if anything were to happen to me, my company would lose their future business.

And…our next generation product did perform as promised, and has been the industry leader ever since.

Charlie: What I called the Acid Test of trust is whether you’re willing to recommend a competitor to a client. In effect, that’s what you did here.

Ken: It’s not that hard if you have a long-term perspective. If you want to build a long-term strategic relationship, and have faith that the next iteration of your product will fix your issues, you’d do what I did. If not, you might sell them your current product, but your reputation will be ruined forever.
Be honest and live to sell another day!

Charlie: Switching gears: I think when a lot of people find themselves in the C-suite, they get tongue-tied. Their pulse rate goes up, they get flustered, and they end up making any number of rookie mistakes. Advice?

Ken: Senior executives have no time for those who are in “awe” of whom they’re meeting.
Confidence – especially, confidence in yourself – is critical. You don’t have to be an expert in everything – but you’d better be expert in something, very clear about the boundary lines – and just as forthright about what you don’t know. Be prepared, and do your homework: then tell the truth. Honesty trumps ignorance.

You have to have great respect for them – but also remember they’re your equal! Deal with your insecurities and don’t psyche yourself out.

Talk about what’s important to the executive. Being STRATEGIC and not tactical is critical. Don’t discuss problems, just solutions. The higher up you go, the more you’ll find people who are surgically focused on growing revenue, innovation, and garnering a competitive advantage.

Charlie: Any additional tips?

Ken: Creating long-term relationships with senior executives is like shooting a good game of pool – you’re always shooting for the next shot!

As we discussed earlier, listen more than you talk, but be prepared based on your research to share some 30-second “nuggets” that will be of interest to them that also demonstrates your reputation as a known expert in your specialty.

Ultimately, if you want a trusted advisor relationship with executives, you have to make sure they see you as a “Player” that a) constantly educates them to things that they and their staff don’t know, and b) does so respectfully but in an insightful, direct manner that clearly shows you have the customer’s interest at heart.

Charlie: In your experience, what’s the single biggest obstacle to a salesperson building trust with their customers?

Ken: That’s an easy one! Sorry for my politically incorrect answer, but it’s imperative that salespeople learn to STFU and LISTEN!

So many salespeople are myopic – enamored with themselves and their voice when the conversation is not about them; it should be about their customers and helping them solve their business / OPEX problems and issues.

That’s why I feel the “Trust Equation” is the single most important sales theory ever created. With Self-Orientation in the denominator, the more you talk about yourself, the less trust you build! So in the words of the Kevin Spacey character from “Swimming with Sharks”, Shut-up, Listen and Learn!

Charlie: Thanks Ken for sharing with us your thoughts and ideas.

Ken: Thank you, as always, it’s been a pleasure!

Perfect Pitch in Sales: 9 Rules

You may know it as the dog and pony show, the beauty contest, the shoot-out. Or you may just call it “the pitch.” The term is especially common in some industries—advertising, executive recruiting, some law firms—but we all know it.

We typically think of it as an event – a rather formal presentation by several professionals made to several members of the client organization that typically lasts 30 to 90 minutes. Secondary characteristics of a pitch often include PowerPoint and a time-slot among a few other competitors who are pitching on the same day.

Let’s be clear: there is no single perfect pitch, since the winning pitch is situational to you and your client. Still, there are some guidelines that hold true. Here are nine rules for perfecting your pitch.

1. When the Best Pitch Isn’t a Pitch

Sometimes the best pitch is one that never happens – because both parties choose an alternative.

Think of a pitch as a blind date where each party is cautious. The quietly cautious buyer wants control and seeks it in an impersonal, formal event. The seller also wants control but expresses it by being assertive. One fears being “sold;” the other fears losing. When both parties are fearful, decisions get made on process, features, and price.

Both parties are often better off starting from a strong relationship. Though both know this, they engage in denial, not wanting to admit it. Sellers may try to go around pitch events. The trick – not really a trick at all – is to explore the possibility of meetings before the pitch during which personal relationships can be established. It’s critical that this be done from a position of respect and honest concern for what’s right for the client.

Sometimes the client then abandons the pitch idea altogether because they find one competitor that seems to understand them uniquely. That’s generally a good outcome for both parties. But do NOT try to force this outcome—you’ll jinx if it you do.

2. The Pre-Pitch Warm-Up

Your objective shouldn’t be to avoid the pitch, but to produce a good outcome for both parties. Any pitch will be improved by prior conversations with as many client people as possible.

If you are meeting the client representatives for the first time at the pitch, your odds are even less than one divided by the number of competitors. It’s less because with total strangers meeting each other, the “none of the above” option frequently appears on the table.

Of course, not every client wants to meet you in advance. Often the intent of the pitch is to prevent such meetings in the first place in pursuit of an “independent, fair” competition. Pushing too hard for meetings can appear distasteful.

How do you know how far to push the suggestion for prior meetings? Simple – ask the client. Point out the advantages of offering all competitors a chance to talk with them in advance, then gracefully yield if the resistance is too strong. You get a few points for offering if you do it respectfully – just don’t push your luck.

If you can talk to people in advance of a pitch, you’ll improve the quality of the pitch for both you and client. Of course, you learn valuable information, and you get to call people by name. But it goes much further than that because the next key to a great pitch is interaction.

3. Interact in the Pitch

Nearly always the client says, “Tell us about yourself.” And nearly all sellers assume that’s what the client wants – after all, they said so!

But the truth is, listening to someone – anyone – talk about themselves for 30 minutes is incredibly boring. Even more important, listening to others does not persuade human beings—they become persuaded by listening to others who have previously listened to them.

Letting clients be heard is critical to successful pitches. If you can’t do it before the pitch, then dare to be great and engineer listening into the pitch. Here are several approaches:

  • Tell the client ahead of time you’d like to ask for reactions
  • Build in “and what about you?” questions into your pitch
  • Offer data about similar situations and ask for comment
  • Ask the client if they’d consider a “first-meeting” approach. Instead of a standard pitch, offer to treat the pitch like a first meeting, as if you’d already been hired, and allow five minutes at the end to talk about how it felt. (This is not a crazy idea; I know of two success stories using it.)
  • If you’ve had any prior-to-pitch conversations, refer to them.

Remember: what you say in the pitch matters less than whether you have listened to them first.

4. Have a Point of View

Your qualifications, credentials, and references are worth absolutely nothing if you can’t show relevance to the client. To walk in without a point of view on the client and the issues facing them is arrogant, disrespectful, and selfish. Those are strong words; let me back them up.

If you want this job, you’ve (hopefully) thought about what you’d do if you got it. If so, why wouldn’t you share it? The probable answer is because you’re afraid you might have gotten it wrong.

But that fear is all about you. Now is precisely the time when not to take a risk is risky. The client wants to see if you’ll do some homework on spec and if you’re willing to engage in real-time thinking about it. They want some sample selling. Showing up with nothing but a track record is like going on a blind date with just a list of past dates. It’s no better as a pitch strategy than as a dating strategy.

5. Collaborate on Talking Price

Conventional wisdom says don’t quote price until the client has heard benefits so that they can properly calculate value. This makes theoretical sense, but it ignores human psychology; price is the elephant in the room during the pitch.

While everyone listens (or pretends to listen) to your pitch, they are all mildly pre-occupied with what your price is going to be. That pre-occupation is death to their ability to listen to you, so air it.

When you walk in, place a five-page pile of paper on the table, saying, “This is the price part of our proposal—the bottom line and four pages of backup explaining it. We don’t want to focus on it, nor do we want to keep it from you. At any point in the conversation today, you can ask us to turn the page over, and we’ll talk about it. Wheneveryou want.”

The point is not when you talk price; it’s about who makes that decision.

6. PowerPoint Pointers

There seems to be an emerging consensus among presentation professionals that looks like this:

  • Most presentations are written as leave-behinds: build your pitch on the presentation, not the leave-behind
  • Less is more: limit yourself to several bullets
  • Don’t read aloud what’s written: get a picture and talk from that
  • Visuals are great, great, great: use photos, not clipart
  • Except for the title page, lose the logos and backgrounds

7. Handling Qualifications

Most big sales these days follow a two-step process: screening and selection. Most screening is done on credentials. That means if you’re in the pitch, your credentials got you there. The pitch is the sale you already got; stop selling it.

If the client specifically requested a section on credentials, don’t embarrass them by fighting it. But you can touch briefly on credentials, with a large leave-behind set of documents. Go through them only if the client insists.

8. Dissing the Competition

This is an easy one. Don’t. Don’t do it, don’t go there, don’t even think about it. If asked, demur, with, “We respect our competitors. You should talk with them. But they can speak well enough for themselves without our help.” Taking the high road never hurts, and it usually helps.

9. When to Ditch the Pitch

Imagine a pitch where an obstreperous client takes you off script away from the PowerPoint or raises a point well in advance of when you had intended to address it.

Disaster? Not at all. In fact, it’s quite the opposite. This is client engagement – exactly what you want – cleverly disguised as an objection. Greet it with open arms. Ask the client for permission to go off script and deal directly with the issue raised for as long as the client wants.

Remember: despite what the client said, it’s not your PowerPoint they want to see – they want to feel how it will be for you to interact with them. If you respect their wishes, move your agenda to fit theirs, and respond directly with relevant content, you will address precisely that desire. And you will more likely win the pitch than someone who stayed on (Power)Point.

Operating Transparently

Transparency is one of the Four Trust Principles for creating trust-based organizations. The other three are other-focus, collaboration, and a medium-to-long term perspective (aka relationships over transactions). Here’s the business case for transparency.

The article Is Transparency Always the Best Policy? first appeared a few years ago in Harvardbusiness.org. The article is about Paul Levy, President and CEO of Beth Israel Deaconess Medical Center, and the answer to the blog’s question, based on this sample of one, would appear to be a resounding ‘yes.’

In matters great and small, Levy has simply made it an operating practice to behave transparently. His great results may surprise many, but they make a great deal of common sense.

If you are transparent about your activities, you are saying you have nothing to hide. If you have nothing to hide, then people trust what you do.

If you are transparent about what you say, then you don’t risk saying one thing to one person and another to another. You don’t appear to be two-faced; you appear to have integrity—you say the same thing to all persons. (And, it’s a lot easier to remember what you said if there’s only one version).

If you are transparent about what you think, then people can observe your thinking, and see that you are not editing what you say. They feel you are available to them, that you are not segmenting them off.

If you are not transparent in your actions, your words, and your thoughts, then people wonder about your motives. Why are you doing what you’re doing?

What is it you really mean when you say something? And what are you really thinking when you’re thinking?

Suspicion about motives colors every aspect of trust—it affects your credibility, your perceived reliability, and the degree to which people confide in you. The antidote to a bad case of suspicion is transparency. It’s as true in the financial and regulatory world, in the world of negotiation, and in the world of accounting, as it is interpersonally.

So Why Aren’t We All Transparent?

With all the obvious advantages that transparency conveys—why aren’t we all more transparent more often?

There are a thousand answers, varying in particular, but with some common threads in general. At the root of it, I think, is fear.

Fear that others will take advantage of us. Fear that we will be misunderstood, or shamed. Fear that others will see the true inner “me” and thus steal the faux power we foolishly think we maintain by being opaque.

Transparency is both a result of lowered fear, and a cause of lowering fear. Sharing information with another encourages another to share with us. Disclosing information within a company—as Paul Levy did so frequently—begets teamwork and lowers suspicion.

The willingness to be transparent in negotiation helps the other party figure out what it is that you want—so the paradoxical result of taking a risk is that you increase the odds of getting what you want.

Transparency is an invitation to collaboration and connection. It lowers fear, it increases trust.

It feels like taking a risk, but it’s really risk-mitigation in disguise.

Operating transparently isn’t just a hospital procedure.

Why Listening to Sales Experts May Be Hazardous to Your Sales

A sales expert, I’m not. A trust expert, I think I’ve become. And it turns out, there’s a big overlap.

One of the interesting points in Neil Rackham’s classic SPIN Selling is that certain techniques developed for small-item selling – notably closing – actually backfire when applied to larger, more complex sales. In other words, “sales expertise” of a certain kind may actually be hazardous to your sales health.

That may not seem like much of an insight more than 25 years after the book’s publication. Since then, we have seen major growth in thinking about B2B sales, as well as the transformative impact of the internet on the sales function. Nowadays no one would be caught dead trying an “assumptive close” in a modern B2B sales interaction.

But does that mean all sales expertise these days works more or less? I don’t think so. In fact, there’s a glaring assumption at the heart of almost all sales systems, which, if not properly understood, will actually decrease your sales effectiveness just as much as improper closing techniques.

It is the assumption that the point of selling is to get the sale.

What Is the Point of Selling?

That may seem like a stupid question, with an obvious answer. What else could the point of selling be except to get the sale? And I’m not talking about the difference between single transactions and repeat business either. I’m talking about the very purpose, the underlying goal, aim, and objective of the salesperson, sales process, and sales function. What else could the purpose be except to get the sale?

The alternative purpose, may I suggest, is to help the customer. That is not a trivial distinction; it’s a meaningful one. It’s also a powerful distinction, and it’s one easy to achieve. But if you do achieve it, you’ll do better on many dimensions – including sales.

To see why, let’s first explore what it would mean to have a different purpose for sales – a purpose other than to get the sale.

Design Implications of Helping the Customer as a Goal

Suppose your primary purpose was to help a customer.  Just suppose, just for a minute. What exactly would you do differently?

You’d be less concerned about whether you won or lost the sale. You’d spend a little more time on situations where you thought you could help – and a little less time where you thought you couldn’t. You’d take more time with leads to help them determine the best way for them to get help. You would often end up referring them out to other related-service providers where you thought they might get better help.

You’d seek out slightly different leads and targets than if you focused solely on where you thought you could sell. You’d view your competitors differently – as alternative offerings to help your customers get what they need. You’d give up your time and expertise on occasion if you felt it would help your customers advance a key cause. Conversely, you might be quicker to embrace value-billing in cases where you clearly bring value to the table.

You’d talk less about your own capabilities, and more about what would be good for your customer. You’d be naturally curious about what your customer needed and what would make their business better. Your curiosity would extend outside and beyond your company’s service offering to include those of other firms.

If your organization similarly supported a goal of helping the customer, then the metrics you operate under would be changed as well. Instead of an emphasis on quarterly sales results, progress against closing, and forecasted probabilized backlog rates, you’d see consumer-focused metrics that speak to customer performance and result of that performance. Noticeably absent would be much of the fine-toothed combing by lawyers enumerating the thou-shalt-nots of the relationship.

Operationalizing a Customer-Helping Goal

Looking at the above statements, you’re probably having one of three thoughts:

  • “Those aren’t that bad, actually. We could do with a bit more focus like that.”
  • “Yes, but you have to make money.”
  • “Yes, but you can’t let customers just take advantage of you.”

Note that thoughts two and three have an implicit assumption: that if you don’t focus on getting the sale, you probably won’t get the sale. And that’s where the miracle happens.  Because precisely the opposite is true.

People don’t like to be told what to do. People don’t like to feel controlled. People respond positively to a sense that they are being listened to, and to people whom they feel have their best interests at heart. We respond positively to generosity, and we respond negatively to greed. We tend to return favors and avoid those who have burned us.

In short, we reciprocate. The lessons of game theory, marriage therapy, and political organization all point in one direction: favors done, attention paid, and interest shown all beget the same in return. This simple truth is deeply embedded in our simplest human interactions (think handshakes and smiles) and our most complex ones as well (cultural affinities and political alliances).

The main result of reciprocation is – more reciprocation. If you listen to me, I will listen to you. If you treat me well, I will keep coming back. If I buy from you and you respond well, I’m likely to keep buying from you.

Unless, that is, the seller gets selfish. All bets are off to the extent that we perceive the seller as self-oriented, selfish, manipulative, and driven only by his own needs. If we as buyers feel objectified, treated solely as walking wallets by the seller, then we reciprocate. We coldly calculate the value of the seller to us and become willing to walk partly because we also feel insulted by such behavior.

The Paradox at the Heart of Great Selling

The best sales come from interactions where the sale is not the goal, but a byproduct – where the sale is a natural outcome of an attitude of other-focus, genuine concern, and focus on the other. Where the attitude is long-term, not transactional, and built on an assumption of win-win rather than of scarcity.

There’s a paradox here. You do your best selling when you stop trying to sell, when you simply focus on doing right by the customer. That doesn’t mean you turn into a non-profit charity. There is still a role for profitability metrics, CRM systems, and funnel statistics. But they must become subordinate to the broader goal: helping your customer. Dial them back 90%, lengthen their timeframe, and don’t think of them while interacting with customers.

Are there customers who’ll take advantage of you? Sure, though not nearly as many as you think. And those who act that way are the ones you gift to your competitors.

If you help your customers, they’ll help you. That’s a rule that doesn’t need your thumb on the scale to work. Don’t force it. Make customer help your goal.

 

The Antidote to Resentment

A lot of time is wasted debating the relative merits of “hard” and “soft” skills. The right response is almost always “both,” and “it depends.”  I want to focus here on the “both” part.

There is a growing belief – particularly in tech and in consultative professions (and everything is becoming both tech and consultative) – that we should approach the ‘soft’ stuff in ‘hard’ terms, i.e. through metrics, short-term goals, competency models and the like.

Treating ‘soft’ skills this way completely disintegrates them. You can’t have both if you’ve turned one into the other.

Case in point: dealing with resentments in the business world.

You Might Be Copping a Resentment If…

You may not think you’re a resentful person. And maybe, graded on a curve, you’re not.

But how often do you find yourself muttering at the driver who cut you off; re-litigating arguments in your head, where you win this time; waking up in the middle of the night pre-occupied with your checking account; and gossiping with someone about how so-and-so really isn’t all that?

All those are versions of wishing you could change reality – when you can’t. And that’s pretty much resentment.

It’s the difference between hoping and wishing. Hoping things will change is fine, particularly if you’re doing something to help the change. But wishing that things were other than they are – that’s living in an alternative universe. That’s resentment. It’s fine to hope you win the lottery—as long as you bought a ticket. But wishing you’d won last week’s lottery – that’s resentment.

By living in an alternative universe, you’re playing at being God. (Unless, worse yet, you think it’s not play, and you actually believe that all your wishing makes a dime’s worth of difference to Reality). Well, hear this: there is a God – and you’re not it.

Resentment tends to eventually manifest as resentment against other people. But personal resentment is like taking poison and waiting for the other person to die. All it does is eat you up from inside, while the Resented One is either blissfully unaware, or at least generally doesn’t give much of a damn.

Why Resentment Kills Sales and Influence

This is not afternoon TV psycho-babble. It makes a daily difference in business – a huge difference.

If you are prone to the Black Art of Resentment, then you are likely to believe in short cuts, quick fixes, fad diets, new interpersonal techniques, flashy methodologies, and come-on lines for dating bars – because all those gimmicks appeal to your desire to live in a world other than this one: one in which you can dominate, control, bend the other’s will to your desire. And when they let you down – and they do, and they will – you will once again feel your Old Friend Resentment (or its kissing cousin, self-pity).

People don’t buy from those who are trying to change them. People don’t pay attention to people who are trying to persuade them. People don’t take advice from those whose egos are tied up in having their advice taken. (Interestingly, people of both genders also don’t like to date people who are needy; they prefer people who appear independently self-contained).

We interpret all those things as attempts to manipulate, and we shun the manipulator. This is not a good thing.

It also has serious business consequences. It makes for salespeople who can’t sell; advisers whose advice isn’t taken; and relationship managers that people don’t relate to. The absence of soft skills has dramatically hard results.

 

The Best Way to Sell and Influence

The best way to sell and influence is to get rid of resentment; to get rid of living in alternative universes; to accept everything, starting with the customer in front of you.

Acceptance in this case means taking them at face value, getting to know them on their terms, giving up all attachment to your outcome (because that’s about you, not them) – and applying your focus, energy and attention to simply helping them. Let’s call that, for lack of a better term, empathetic client focus.

If you do that, and spend your time and energy seeking to understand them, you’ll do a far better job of connecting with them than all the other resentment-fueled alternate-universe salespeople and advisors.

One result of which is – you’ll end up selling more and having your advice taken more often.

Is that a paradox? Definitely. But it’s life. People buy from those who don’t try to sell them. People listen to those who listen to them, not those who talk. The best way to sell it to stop selling. The best way to influence is to shut up.

Training to Get Rid of Resentments

You do not get rid of resentments by examining best practices.  You don’t banish resentments by designing a training program based on four levels of resentment-coping skills, with behavioral metrics indicating competencies at successive levels.

Instead, you get rid of resentments by doing a Jedi mind trick; an emotional/spiritual jiu jitsu flip; a Paul-on-the-road-to-Damascus conversion. You have to come to believe that you are not God – and that all your resentments are nothing more than an attempt to claim otherwise, doomed to fail because your whole approach is selfishly based on You trying to dominate Them. It doesn’t work. They push back.

In practical terms, the solution is not the usual ‘act your way into right thinking.’ Instead, this new perspective comes about through conversations with others; through reflection; through role-playing; and through discussion with others about shared experiences. This is a different approach to corporate training – but a necessary one for certain advanced ‘soft’ skills.

Goals are Great, but An Expectation is a Pre-meditated Resentment

Goals are great. So are objectives and milestones and targets. They give you a sense of what you’re aiming for, and help you envision the to-be state.

But don’t confuse goals with their purpose. The purpose of a goal is not to achieve the goal – the purpose of a goal is to help you achieve your True Purpose. You should never confuse a quarterly sales quota with a Purpose.

It’s when goals get transmuted into expectations that we confuse goals with purpose. When we start living in that alternative universe defined by the goals, when we start obsessing over the new car, winning the contest, getting the boss’s approval, ranking in the top 20% on the bonus plan – that’s when we begin to have expectations. And an expectation is a pre-meditated resentment.

Think. Do. Accept. Rinse and repeat.

Plan, set goals, and strive. Then celebrate what you get; because to bemoan what you haven’t got is to live in resentment. A life spent wishing you were other than you are is a failed attempt at playing God, and a recipe for unhappiness – and for poor sales and unheeded advice.