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Whether you're
missing your revenue numbers, your margin is eroding or your
sales conversion rate is off, examining and retooling your
measurement system alone can change or modify your sales
results.
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By RTO Online Guest Contributor Kim Marcille -
bio
In a difficult economy, the rules of the game change, but often
our actions don't. We continue to beat the same drums and hope
for different results. We work harder, and yet it feels like
we're spinning our wheels. This is particularly true for
salespeople, who suffer significant financial and emotional
impact if they can't keep their numbers up. How can you keep
your sales staff engaged, motivated and productive, even in down
times?
Printable version of this article.
While it could come as a surprise, a principle derived from
experiments in quantum physics can be applied to this problem.
In these experiments, physicists have discovered that they can
slow down subatomic activity (the Zeno Effect) or speed it up
(the Inverse Zeno Effect) just by measuring it. The way they
measure, what they measure and when they measure determines
whether subatomic processes will be accelerated or impeded. The
measurement system and philosophy in play will have a
significant impact on the outcome.
The same is true in the achievement of your business goals.
Whether you're missing your revenue numbers, your margin is
eroding or your sales conversion rate is off, examining and
retooling your measurement system alone can change or modify
your sales results. By applying the following steps of the
Inverse Zeno Affect, you can modify your existing measurement
systems and accelerate your results:
1. Change the context
Measurement in sales is usually associated with judgment. You
make the numbers or you don't; you're a success or a failure. As
the numbers skew ever lower, even the most optimistic
salesperson will feel crushed under the weight of his or her own
goals, and begin to apply the Zeno Effect, rather than its
inverse. By shifting the purpose of the measurement system from
administering judgment to creating value, the conversations
around the numbers can change. What can be learned from the
measurements you're taking? How can you apply this information
to create new opportunities? Changing the context gives you and
your team the emotional room to innovate and try things out.
For example, if the entire team is suffering from a dearth in
sales, you might choose to have an offsite brainstorming session
in which the team is encouraged to throw every idea on the table
without judgment. (To lighten up the atmosphere, you might make
it clear that this is not a “retreat” but a “summit.”) More
holistically, the way you talk on a daily basis about the
numbers and performance will make a huge difference. Is your
language judgmental or supportive? Is your tone encouraging or
disparaging? Examine the culture you've created around your
company's measurements. Is it harshly competitive, or does it
uplift the team as a whole? Leading learning exercises around
the numbers will teach the sales staff how to gain wisdom from
their own results.
2. Change the focus
We have a tendency to focus on the numbers that mean trouble,
rather than the numbers that spell success; a sure formula for
applying the Zeno Effect and impeding results. For example, we
look at the missed goals and the lost sales rather than looking
at the sales that were actually completed. Why were those sales
successfully closed? Were they all in a specific industry? Were
the leads all generated from the same source? Was there more
frequent contact with the client, or less? What are the best
practices you can glean from your own successes and apply to
create different results? Focus on what you want and how to
re-create it, rather than creating what you don't want. What
gets attention gets action.
3. Pick the right measures
Are your measurements directive enough? If orders from existing
clients are declining, measuring overall sales in a given period
won't help, whereas measuring the number of sales to new
prospects will. Are your measurements selective enough? Are you
looking at a top line that's so amorphous that you can't pick
out the problems? If sales are declining, there are many
variables that could be responsible. Are your measurements
designed to ferret out client attrition, margin erosion, lead
conversion, and order frequency, for example? The right
measurements can pinpoint the issues, provide guidance in
developing a strategic response, and apply the Inverse Zeno
Effect to get results faster.
4. Choose 3-5 key metrics
Some salespeople have scorecards with 20 or more measurements
against which their performance is pegged. With so many
“priorities,” it makes sense that the efforts of such a
salesperson would be diffused as to perhaps become ineffectual.
By choosing the top 3-5 key metrics – that is, the top 3-5
measurements that have been proven to drive results – you will
put the attention in your organization where it belongs, rather
than creating Multitasking Attention Deficit Disorder in the
ranks.
5. Look forward, not back
Many businesses are hamstrung by the fact that they're always
looking at last month's numbers. Did we make budget or didn't
we? Reviewing the past has limited value. If the look back is on
a short enough timeline, a business may not even see the
valuable trend data there that would inform the future. Instead,
encourage salespeople to plan future growth in their businesses
in different areas by specific amounts in given periods, using
information gained from the changes you've made in the way you
apply your measurement system. Working those plans will return
greater results, because by making this shift in focus, you will
have inspired your staff with a vision of a better tomorrow.
Just like the physicists who learned that by measuring along the
path where they thought a subatomic particle might show up they
were able to entice it there faster, so, too, can your forays
into the future apply the Inverse Zeno Effect and help create
the outcomes you want.
Lastly, lead this change in your measurement system as if you
mean it. Changing it isn't enough to apply the Inverse Zeno
Effect. The context, the focus and the measurements have to be
concrete and consistent. Your employees won't buy into it if you
don't. If you're the member of an executive group, make sure
that your peers understand the importance of the initiative and
ask them to back it up fully. Challenge system limitations that
don't allow you to get to the measurements you need to create
success.
It may take a couple of periods for the Inverse Zeno Effect to
completely kick in, but when it does, both you and your sales
staff will be happier with the results.
Kim Marcille is an expert on strategic innovation, and an
internationally renowned speaker and consultant. Kim's 25-year
background in business ranges from Fortune 500 executive
leadership to small business ownership. Kim is founder of
Possibilities Amplified, Inc., and the author of the
forthcoming, “Amp It Up! And Other Secrets from Science for
Creating the Life of Your Dreams.” She is the former vice
president of new initiatives for the Miami Herald Media Company,
and the former CEO of Computer Experience Plus, Inc. For more
information, visit
PossibilitiesAmplified.com or e-mail
Kim@possibilitiesamplified.com.
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