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April Carnival of Trust is Up

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The Carnival of Trust this month is hosted by Skip Anderson, who hosts the Selling to Consumers blog.  Those of you familiar with the Carnival can click right here to go straight to it. 

If the term "carnival" in this context is new to you, it’s a monthly compilation of the ‘best of the web’ regarding trust blogs, as adjudged by a floating host, unaffected by yours truly.  This month’s selection of 11 articles, being made by Skip, partly reflect his interests and partly reflect a more eclectic taste as well.  They cover the gamut of sales and trust, from strategy to technique, from social meaning to inner meaning.

He’s selected an interesting smorgasbord of material, including the relationship of trust and ROI; trust, profit and ethics; stale popcorn and how it affects buying behavior; a comparative ranking between ‘interesting’ and ‘truthful’; and a rollicking good dialogue about a controversial YouTube post put up by adfolk OgilvyOne, hosted by @davidabrock.  Among others, that is.  Eleven in all.

See what a great Carnival is all about: read someone else’s take on trust for a day.  Go visit April’s Carnival of Trust, hosted by Skip Anderson–many thanks Skip!

Closing the Book on Closing

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Let’s pull out all the stops on this.

Aggressive, constant closing is just about the worst thing most salespeople can do. Closing kills more sales than it gets, and ruins future sales by squelching relationships. If you still have those old “50 Closing Strategies” books gathering dust, get rid of them. If you still believe in ABC—Always Be Closing—I want to convince you once and for all to stop it.

And sales managers, please read on: because at every quarter’s end, when you exhort the troops to bring the numbers in, all you’re doing is telling them to close. And you are constructing a circular firing squad when you do it.

I’ve had a few things to say about this in the past, not just about closing  but about the paradox of selling,  and about why so much in sales these days works to defeat trust, hence defeat sales.  As Yogi Berra said, you could look it up.

Don’t Take My Word that Closing is Bad: Take Konrath and Rackham’s

Jill Konrath  is a highly-respected author,  sales consultant, and blogger.  She’s even less ambiguous than I am: “I will never, ever train people on closing techniques if they sell to the corporate marketplace.”

In Neil Rackham’s perennial best-seller SPIN Selling  , he describes results of research on closing for both low-priced and high-priced goods.

• For low-priced goods, training sellers in closing techniques resulted in slightly shorter sale times, and a slightly increased rate of sale (76% vs. 72%). Meaning—a slight improvement by increasing closing techniques.

• For higher-priced goods, training sellers in closing techniques also resulted in shorter sales transaction times—but it also resulted in less sales—33% vs. 42% before being trained in closing.  

In other words: closing may increase efficiency and slightly improve your results if you’re selling copy paper, and low cost add-on products (“you want fries with that” is actually a good use of closing: take note, McD’s countermen).

But if you’re selling any kind of professional services, or most anything over a few hundred dollars–the better you get at closing, the less you sell!  Oh well, at least you get shot down faster!

Rackham’s data was from a few decades ago.  Do you think closing techniques have gotten more effective, or less effective, in today’s times?  Yup, that’s right.

The Real Culprits: Sales Management and the Training Industry

Salespersons have their own battles to fight. But their job is made immeasurably harder by those who design the sales environments.

Ask yourself, which business strategy works better: one that is executed consistently over a long time period, or one that is given a new endpoint every few months? It’s the same with relationships—business or personal.

In personal relationships, we talk about people who are commitment-phobic, or about players—those looking only for one-night stands. In effect, those are what the quarterly insistence on cleaning up the numbers makes your salespeople.

Following is a quote from a sales training newsletter I received a week ago:

Charles, with only three days to go until the end of the month (and end of the first quarter), it is time to push hard to exceed budgets.

This month we focused on planning and preparation, but it is now tome [sic] for all your hard work to pay off. As it is time to close, we have put up a small selection of articles on our homepage to help you.

Members can log in and search for thousands more articles and resources, including over 40 more articles all on sales closing.

Presumably somebody buys this stuff. But let’s be clear about what it is: the intellectual version of crack. It urges you to give up on long-term plans and relationships, and subordinate them to the siren call of the “here-now.” Worse, it is entirely self-centered—urging the seller to bend the client, and particularly the client’s wallet, to the will of the seller.

Here’s how Neil Rackham puts it: “When salespeople are under pressure to produce short-term results and are being told to get the business this month by whatever means necessary, they pressure customers and this creates suspicion and mistrust.” 

Exactly. So if you’re a sales manager in a business that isn’t small-dollar and ancillary, and if you’re pushing your people to step up the closing at quarter’s end, then you are creating suspicion and mistrust. Which ruins sales in the medium and long term.

Who cuts off their nose to spite their face that way? Besides crack addicts, I mean?

Never mind. Just stop closing. In its place, substitute constant striving to improve results and relationships for your clients. If that feels too vague, then use Jill Konrath’s suggestion: focus on the Next Logical Step.

You’ll sell more. And sleep better too.
 

The Wrong Elevator Speech: Disaster and Recovery

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This is week three for me of a four-week road trip. I’m getting a little loopy, but am collecting some wonderful client experiences, lessons and stories. Here’s one from a British account executive.

“I was going to see a potential client for what could have been an important piece of business for us. Unfortunately for me, I missed the scheduled plane by minutes, and thus was delayed by an hour. I called, and they agreed to reschedule the meeting to accommodate me.

“When I arrived, a bit flustered, the team of a half-dozen clients execs had gathered downstairs, and we all then went to the lift to go upstairs to the designated conference room.

“Unfortunately the lift was made for about four people. We all crammed into the lift, and it slowly began to climb. At that point someone—how shall I put this—well, as we English say—passed gas. The lift continued its crawling pace upward. No one, of course, said a word, nor even altered their expression. There was dead silence.

“As the doors finally opened, we all rushed to get out—all at once. And all 7 of us thereby tumbled onto each other on the floor. We all picked ourselves up, even more embarrassed, and again without saying a word to each other, made our way into the conference room.

“As I set up at the head of the room, I could feel the weight of this triple discomfort: I was late, the tumbling all over each other—and of course the ‘gas’ incident in the middle. It was all contrived to create a mutual sense of misery.

“What to do? I stood in the front of the room and said, ‘Gentlemen, little did I know this morning what a fine level of intimate relationship we should all achieve in so little time here this afternoon. I am honored indeed.”

“Well fortunately, everyone fell all over each other laughing; I had somehow managed to prick the balloon of the unspoken that hung over us like a cloud, and the rest of the day went marvelously. And oh yes, we got the sale.”

What this gentleman had done, in our nomenclature, was to Name It and Claim It; that is, to speak aloud the one thing that no one could figure out how to talk about. He did it with humor—an excellent tool—and was rewarded for the relief he caused by an appreciative relationship, and even a sale.

How many of us waste moments like that, buried in our own fear of speaking the truth? And how many sales do we leave on the table because of it?

 

Trust Lessons from a Turkish Rug Dealer

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Turkish RugIn November 2000 we traveled with another couple to Turkey.

We stayed at the Pera Palace in Istanbul and cruised the Bosphorous River. We visited the seaside town of Bodrum where we learned NOT to try and party like a British sailor. But no trip to Turkey would be complete without a shopping spree at the Grand Bazaar in Istanbul. We set out to find the perfect stall.

Wendy and I ventured behind the curtain into a cozy shop owned by Mehmet. He welcomed us with a warmth and carpet dealer smile …Wendy and I were both suspicious and told Mehmet we were “just looking.” Anyone who has been to a carpet shop in Istanbul knows you don’t just look. It is nearly impossible. The carpets are piled, one on top of the other, several feet high. Hence the young, muscle-bound assistants lingering around, ready to “flip” carpets for would-be shoppers to assess.

Mehmet invited us to accept help in looking through the carpets. He said, “just pretend – like Monopoly.” We accepted his invitation and the next thing we knew we were hooked, enticed by his charm, fluency in many languages, and the offer of mint tea. “But our husbands…we don’t know where they are,” we protested. “Oh, it is no problem…we will find them and bring them here.” And his assistant did just that.

After several hours of looking through carpets two piles emerged: the “no” pile and the “maybe” pile. Our “yes” pile hadn’t yet emerged. This was “no problem” for Mehmet, the Turkish carpet dealer. He says, “we are just pretending, like Monopoly.” In the evening, after several glasses of tea and many rounds of negotiating, we exited Mehmet’s shop with our carpets. We were beyond satisfied with our perfect day of rug buying; and the rugs, while beautiful, were not as memorable as our experience with Mehmet.

Ten months later—9/11. We were on the email Mehmet sent to his American customers expressing his sympathy. Mehmet’s carpet business came to a screeching halt–80% of it had been from American buyers. Without his American customers he couldn’t provide for his special needs son.

So he brought his lovely carpets to the US. We hosted a show for him, and put him in touch with interior designers and people we knew would appreciate his carpets. He was and to this day is grateful for this.

A few years ago, Mehmet and his assistant, stopped at our home for a visit. I said, “Mehmet, can we pretend, play Monopoly?” And so we began the ritual of looking at the spot in our home where we wanted a carpet and then venturing to his truck to search through the piles of neatly folded rugs. After many hours of collaborating to haul rugs in, move furniture, look at the carpet in different light and from different angles we settled on one. Then the negotiating began.

He says, “Sarah, you are my sister.” And I say, “yes, Mehmet, you are my brother, and now we negotiate.” The business of negotiating wasn’t easy; there were tense moments when I thought we’d not reach agreement. But all business is easier from a foundation of trust – which there was and is with Mehmet. We reached agreement. We got another beautiful carpet; Mehmet made another sale. We then sat down to a lovely meal which Mehmet prepared for us in our home.

To this day, after a dozen trips to the US, Mehmet still calls us. The days of helping him find customers have long passed but the relationship endures. Mehmet drives across the US. He seeks no guarantee of a sale, only the possibility that someone might love one of his carpets as much he does.

He goes to his customers. He spends whatever time is needed with them. Sometimes they buy; sometimes they don’t. He knows that one day they might buy; that they might know someone who might want one of his rugs. He establishes friendships along the way, building relationships one home and one rug at a time.

He begins with the customer’s perspective by going to their home, looking at where they want a rug, and collaborating with the customer, to search through his piles of rugs. He then moves furniture and places the rug, just so, in his customer’s home. When they cannot decide he says “live with it for a while, I will come back before I fly home – then you decide.”

Without a deposit, without signing a contract about what happens if the rug is damaged, and without any assurance that leaving the rug with the customer for a few days will result in a sale, he continues on to his next customer. Mehmet takes the risk to trust by leaving his rugs–in return, his customers trust him.

He knows many will never buy. He also knows that by focusing on the long-term he will build a network of people who will first think of him when they need, or know someone who needs, a rug.

A carpet dealer may not be the profession we think of first when it comes to trust. Yet in many ways Mehmet embodies what it means to start from the customer’s perspective and to focus on the long-term. And, who doesn’t love to play a round of Monopoly every now and then?

Can You Differentiate Yourself from a Competitor in a Sales Presentation?

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It’s tempting. Can you just come out and say you’re the best, without look self-serving? Can you point out a weakness in your competitor without it looking like bragging or mud-slinging? And if the client really needs to know something less-than-perfect about the competitor: can you point it out?

I rarely cite politicians in this blog, but one piece of received political wisdom works in business too: if you’re in the lead, don’t debate the challenger.

Politics offers another lesson too: mud-slinging poisons the well. Negative campaigning works–in the short run. In the not-very long run, it doesn’t work for anybody, including the slinger and the public. No wonder politicians rank so low in trust.

Competitive Disadvantage

Business has focused in recent decades heavily on competition. Try completing this sentence: “The purpose of a company is to…” Way too many people are channeling Ayn Rand these days, by saying “…make money.”

Peter Drucker, esteemed business guru, finished it this way: “…create and serve customers.” Drucker is still respected, but more quoted than acted upon.

In selling, there has always been this tension between a focus on competition and on customers. Is winning a byproduct of customer focus? Or is winning the goal, and customer focus simply a means to the greater end of winning?

Consider romantic relationships: is the best strategy for seeking a partner to disparage his/her other suitors? Or to focus on your intended? I vote for number 2.

True Client Focus

You may be thinking, “Don’t I have an obligation to politely show my client how we’re right and they’re wrong?”

Well, what does the client hear when you disparage a competitor? Of course, they may hear what you intend—that on some important dimension, you are better. But there is collateral damage.

They will also hear “These folks are focused on winning, not on helping me. How do I know I can trust their critique? What are they not telling me? It’s my job, not theirs, to make the judgment. Should I give the competitor a second chance to explain? Why are they sticking me in the middle of a technical dispute?

Be careful also of thinking, “I’m not mud-slinging. I’m being professional, objectively pointing out important risks. I’m helping them.”

Too bad motives aren’t everything. Motives won’t change those unspoken client questions. The more you insist how clean your motives are, the more they’re suspect.

The Long Term is Not So Long Anymore

Reputations spread like wildfire on the web. Worse yet, reputations are no longer based on carefully crafted positioning statements, but on suddenly-public daily corporate life.

Non-marketing actions issues like customer service, lead screening, purchasing processes–and comments about competitors–are suddenly driving brand image.

He who tells a lie gets known as a liar. He who slings mud gets known as a mud-slinger—much faster, and much more broadly, than ever before. What goes around comes around—just a lot faster.

Be careful what you wish for: you may (or may not) win the particular argument, but you will definitely create a lasting impression—and not a good one.

The Good News in Leaving Competitors Alone

The good news is the ‘right’ thing to do is increasingly looking like the smart thing to do. Focusing on your client, that is. When trust in businesses is declining, those who act in a trustworthy manner differentiate themselves. And isn’t that what you wanted?

So how do you differentiate yourself in a sales presentation? Stop asking that question: focus on the client in front of you.

Differentiation is not about what you say about others: it’s about who you reveal yourself to be.
 

Meeting Your Customers’ Value Metrics

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This weekend I read two things. Each influenced me, but the combination kicked me hard.

One was a post by Chris Brogan on website best practices. In it, he critiqued his own website, concluding that he had some work to do.

In my experience, most good professionals have good things to say, though they (we) are not very good at persuading their clients to listen to them. And the toughest client for all of us to convince is—ourselves. We are great at diagnosing issues in others; not so good at seeing the pattern in the mirror. Bravo Chris.

The other piece was by Jeff Thull. I’m honored to be one whom Jeff asked to review the 2nd edition of his classic Mastering the Complex Sale. I was impressed the first time I read it, and reading it on a plane ride Sunday brought on that same rush of ‘oh wow’s yet again.

To grossly over-summarize: Thull has written the book on how to sell (and buy, and manage) in an era where needs identification itself is too complicated for the buyer alone to determine.

Brogan plus Thull: what a combination. And that got me on the subject of value metrics and customer benefits.

What My Customers Ask Me: and What I’ve Been Answering

Most of my customers ask me ‘can you point to results of increased trustworthiness in your client organizations?’ And reading Brogan and Thull today, I had to admit: I’ve done a poor job of answering that question.

First, if I’m honest, I generally don’t raise the subject. If it does come up, I have as often as not steered the discussion elsewhere. “Trust itself doesn’t even have a universal definition, how can it be measured,” I say. “Over-measurement of trust can destroy trust; metrics are overdone; and if the trust is working, you’ll know it through some major metrics like revenue, cost and speed.”

Yeah, I know. All true; but I wouldn’t find it too satisfying either. It sounds defensive. What it isn’t, is collaborative and useful.

Ouch: hey Chris, was it this hard for you to admit your website could be improved?

What I Should be Answering

Great insights, I have found, are usually simple: rarely easy, but usually simple. Jeff Thull’s Big Insight is that most sales these days assume the client knows what’s wrong, and largely how to solve the problem. Hence most sales processes aim at teasing out needs statements from clients.

That is profoundly wrong, and has been for some time. David Maister said years ago that ‘the problem is never what the client said it was in the first meeting.’ The problem definition has to be developed collaboratively. And problem definition is just the barest beginning. Thull’s work is the mental and process roadmap for redesigning supplier-buyer relationships in their entirety.

In my simple small example, what I need to do is to engage my potential clients in discussions about how they measure value; what their metrics are; and whether (or not) my service offering affects those metrics. If there’s no match, it’s my job to explore with them whether the issue is their metrics or my service offering—all done with an attitude of curiosity and a willingness to be agnostic about the outcome.

So, one of the battlegrounds is measurement. I’ll start by getting rid of the ‘battleground’ metaphor and remember this is all about a joint exploration of how to fix the world, one little product and service offering and organization at a time.

Thanks Jeff for the structured big-picture thinking, and Chris for the cold water in the face. Once again, I have met the enemy and it is me.

To present, past and future clients of mine: let’s talk about how you think about the value of trust.

Best B2B Sale of the Month: Selling by Doing, Not Selling by Telling

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I spoke recently with Craig Leach, CEO of Graham-Pelton Consuting. Graham-Pelton is a leader in the field of non-profit fund-raising consulting.

CHG: So Craig, tell me this story.

CL: It was a large potential client for us. We had discussions with several key leaders, but as is often the case in non-profits, the board wanted to be involved before significant commitments were made. That meant a presentation to the full board—about 30 people in this case.

I knew we were in the last time-slot of a four-firm dog and pony show afternoon for this group. It had to have been a long day for that many people.

I and my team had prepared well, but as I we headed down the hall to await being summoned at 4:30, just as the door opened and we were ushered in, I got a little inspiration. I channelled you Charlie and your approach to trust-based selling.

“I’m calling an audible,” I whispered to my team. “Follow my lead.”

We walked in to this long, vertical room with 30 stressed, tired faces jammed into the seats. You could hear pencils tapping, and could smell the low-grade tension.

“Good afternoon, ladies and gentlemen,” I said. “We’ve got another long presentation for you to sit through today, but I’m wondering—maybe we should do something else. All those in favor of junking the slides and just getting down to business, say Aye!”

Well some of them literally jumped out of their seats, thrusting their hands up and shouting Aye!

We had a great meeting. We talked about what they wanted, what their concerns were, and we listened—actively and attentively. They asked us for some opinions, and we gave them. Everybody felt great having that conversation.

Of course we got the job, and several people told me later that our approach was, while not the only reason we got it, certainly a differentiator and a real plus.

CHG: Congratulations, Craig, that’s a great story. What do you think it means? Is this a case of the last time slot wins?

CL: No, not at all. Partly we read the room right, and got credit for adjusting to it. But more deeply, it was what you had written about: selling by doing, not by
telling. There was nothing canned about what we did. It was a conversation in real time and therefore it became a consulting session rather than a sales pitch. Nothing up our sleeves. We brought game, not gamebooks. We just did what we do, and they could immediately see whatever they wanted to see—not just what we wanted them to see. That’s what really did it, I think.

CHG: I think you’re right. Congratulations again.

A Client for 50 Years

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Brown bagThis from Trust Matters friend Sarah:

I recently attended my step-grandfather, George’s, funeral in Connecticut. His business partner, Phil, spoke at the memorial service and what he said really sort of blew me away and I wanted to share with you…

Of course Phil shared many lovely memories of George.  One thing struck me in a profound way; Phil talked about the trust that George developed with his clients.

George had founded a CPA firm in 1962. The firm grew to be quite successful. As I sat and listened to Phil share stories about the firm’s success, he matter of factly boasted about the firm’s technical proficiency.

But then, to my surprise, Phil talked with incredible heartfelt-ness (sp?) about what the firm really does: listens to their customers. He talked about the fact that they prepare tax returns and financial statements, etc… but that what they really do is listen to their clients. I cannot recreate what he said – though it struck me as so humane as to counter the pervasive “accountant” stereotypes.

Anyway, here is what I really wanted to share:

• George died at 84 years old

• He founded the firm when he was 37 years old

• At his wake on Monday night an elderly woman introduced herself to my family and indicated she was George’s FIRST client! She is still a client of the firm to this day and whenever she goes into the firm she takes lunch for the partner with whom she meets!

• At George’s funeral there were literally generations of customers…there were people there to honor George who had been his client(s) for 47 years – nearly a half century!!! In one instance there was a family with 3 generation’s of clients. That is cool.

• His clients were acknowledged during the service along with friends and family (and many, many clients were there).

Thanks Sara. 

There are thousands of tips and tricks out there to gain repeat business, increase ‘loyalty,’ tweak your customer acquisition rates.  But they are all aimed at improvement in the aggregate, and usually over a short time frame.

They forget a few simple facts. 

The greatest client loyalty is personal–not institutional.  It happens one person at a time–not one segment or geography or business unit at a time.  It lasts: not quarters, but decades. 

Real loyalty isn’t bought, tricked, or tweaked.  It doesn’t trend up or down monthly. 

Yes, it shows up on your income statement. But where it really shows up is at your funeral.

Congratulations, George.

 

 

Why Saying ‘I Understand’ Is an Act of Arrogance

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Empathy symbolIn an episode of Two and a Half Men (a high-ratings US television sitcom), the rakish cad character played by Charlie Sheen discovers that he can easily manipulate others by solemnly saying to them, “I understand.”

When he first says it, other people believe him, and begin to gush their feelings to him. Of course, his empathy is faux, and so the comedy begins.

Empathy is Cognition Plus Connection

The best way to influence (not manipulate) others is for them to feel that you understand them.

Yet the key word in the preceding sentence is not ‘understand,’ but ‘feel.’

It is one thing to understand someone; it is quite another for them to feel understood.

A seller might perfectly understand a buyer’s needs; often, in fact, even better than the buyer. That doesn’t mean, unfortunately, that the buyer feels understood.

A consultant might perfectly understand what a client is going through, on all levels—including the deeply emotional issues facing the client. But even understanding the emotional issues of the client doesn’t guarantee the client will feel understood.

A common sales truism says, “People don’t care what you know, until they know that you care.”

Just because it’s a truism doesn’t mean it isn’t true.  And it is, profoundly so.  The point of listening is not what you hear–it is the act of helping another feel heard.

Why Saying “I Understand” is Arrogant

On the face of it, the statement “I understand” is the perfect expression of empathy. Unlike Charlie Harper (Charlie Sheen’s character in the sitcom), we usually mean it. We are sincere when we say it, so for me to suggest that ‘I understand’ is arrogant may sound insulting.

But think of it this way. The feeling of being truly understood is, by definition, something that must come from the one who is understood—not from the one doing the understanding. To assert that you understand how someone feels about their situation is to usurp their very role as object of the understanding.

It is not our right as advisors or sellers to tell someone we understand them; it is only they who can inform us that they feel understood. For us to make the claim ourselves is arrogant.

A Better Way to Express Empathy

We can never truly know another. All we can do is to guess at how we might feel in similar circumstances—and assume that they might feel likewise. The source of much tragedy—and comedy—comes from mistaken assumptions that others are exactly like us.

So, what is a better way to express empathy? How do we communicate, across the divide of individuality, a sense of connection with another? Here are a few ideas.

  • That must feel…
  • I can only imagine how that must be…
  • I suppose if I were you I’d feel…
  • Is that (difficult, easy, complicated…) for you?
  • I think I might have a glimmer of what that means for you…

The particular words don’t matter as much as a combination of sincerity and a respect for the ineffable separateness of the other person.

Ironically, the way to convey connection is to acknowledge the impossibility of fully achieving it.
 

What Clients Really Want

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In a sales workshop for lawyers that I recently facilitated, a participant “role-played” a potential client. Together, we developed a scenario based on a business owner he knew well.

During this role-play, his fellow workshop participants sat one by one with the potential client to have a business conversation. Their goal was to be retained as his lawyer.

His goal as the client…well, he didn’t really know what his goal was. In character, he had a lot of potential legal issues that he saw as business concerns, without recognizing the legal implications.

After the role plays were over, I asked him what it felt like being in the client’s chair.  His response – “I wanted to feel like they cared about ME.”   Turns out, while he did care about his own clients, he did not fully recognize the importance to the client of feeling cared about until he sat in the client’s chair, himself.

That discussion reminded me of a program I co-led at a law school with the former General Counsel of a major US company. What did this executive want from his outside counsel?  To “feel the love."  His words.  And NO – there’s no oxymoron here.  Lawyers have feelings too!   He meant – show me that you value the relationship in addition to providing superior service.

Competence and creativity and even superior service are just the ticket in the door. Without that, the professional likely wouldn’t be or stay at the table. But caring can be the great differentiator, and a key to being a trusted advisor.

Changing chairs, even just to practice or see what it feels like, makes empathy come alive and shows what clients really want.