Wednesday, 29 June 2011

HR Still Failing in the Performance Game

New research suggests that HR is still failing when it comes to meeting the performance management challenges consequent to demands for growth from CEOs in the UK.

According to HR Magazine UK CEOs have set bullish growth targets for 2011, and are demanding significant increases in workforce productivity to meet them.  Reporting on a study by Hay they claim that UK firms are targeting an average 5% growth for 2011. This outstrips the latest IMF growth forecast for the UK economy of just 1.7%.


Two thirds of UK business leaders admit this is a significant challenge - which will demand an unprecedented productivity uplift from already stretched workforces - but that they lack the effective performance management required to deliver this.

The study also states that almost half (46%) employees are already too stretched to deliver current business objectives.  83% of business leaders agree that individual performance management is an important driver of overall business performance. Surprisingly only 39% believe performance management makes a difference to the bottom line.

But less than a quarter (22%) of firms align their performance management approach to company strategy, whilst more than a third (36%) of business leaders describe their performance management process as a mere 'tick-box exercise'.  Only 17% tailor performance management to both strategy and culture.

This a a very strong and somewhat disturbing indicator of the state of HR's influence in the UK Boardroom.  It sounds like there is work to do here...there must surely be some exemplars that the profession could learn from out there? 

Tuesday, 28 June 2011

The Magnificent Seven Personality Traits of Successful Sales People

Perhaps the most difficult aspect of my role as a business consultant is selling.  Generally the difficulty comes from achieving a balance between quality and quantity i.e. it isn't too difficult to sell yourself if you have a particular brand but when it comes to selling others as you have to do if engaged by a corporate consultancy, selling becomes a another challenge all together.
I've been researching this aspect of business as part of a development event I'm developing and came across the following factors in a piece in Harvard Business Review by Steve W. Martin.  I find this research fascinating as not only is it counter intuitive but it is also counter experience. What follows describes the key personality attributes of top salespeople and the impact of the trait on their selling style.

1. Modesty. Contrary to conventional stereotypes that successful salespeople are pushy and egotistical, 91 percent of top salespeople had medium to high scores of modesty and humility. Furthermore, the results suggest that ostentatious salespeople who are full of bravado alienate far more customers than they win over.

Selling Style Impact: Team Orientation. As opposed to establishing themselves as the focal point of the purchase decision, top salespeople position the team (presales technical engineers, consulting, and management) that will help them win the account as the centerpiece.

2. Conscientiousness. Eighty-five percent of top salespeople had high levels of conscientiousness, whereby they could be described as having a strong sense of duty and being responsible and reliable. These salespeople take their jobs very seriously and feel deeply responsible for the results.

Selling Style Impact: Account Control. The worst position for salespeople to be in is to have relinquished account control and to be operating at the direction of the customer, or worse yet, a competitor. Conversely, top salespeople take command of the sales cycle process in order to control their own destiny.

3. Achievement Orientation. Eighty-four percent of the top performers tested scored very high in achievement orientation. They are fixated on achieving goals and continuously measure their performance in comparison to their goals.

Selling Style Impact: Political Orientation. During sales cycles, top sales, performers seek to understand the politics of customer decision-making. Their goal orientation instinctively drives them to meet with key decision-makers. Therefore, they strategize about the people they are selling to and how the products they're selling fit into the organization instead of focusing on the functionality of the products themselves.

4. Curiosity. Curiosity can be described as a person's hunger for knowledge and information. Eighty-two percent of top salespeople scored extremely high curiosity levels. Top salespeople are naturally more curious than their lesser performing counterparts.

Selling Style Impact: Inquisitiveness. A high level of inquisitiveness correlates to an active presence during sales calls. An active presence drives the salesperson to ask customers difficult and uncomfortable questions in order to close gaps in information. Top salespeople want to know if they can win the business, and they want to know the truth as soon as possible.

5. Lack of Gregariousness. One of the most surprising differences between top salespeople and those ranking in the bottom one-third of performance is their level of gregariousness (preference for being with people and friendliness). Overall, top performers averaged 30 percent lower gregariousness than below average performers.

Selling Style Impact: Dominance. Dominance is the ability to gain the willing obedience of customers such that the salesperson's recommendations and advice are followed. The results indicate that overly friendly salespeople are too close to their customers and have difficulty establishing dominance.

6. Lack of Discouragement. Less than 10 percent of top salespeople were classified as having high levels of discouragement and being frequently overwhelmed with sadness. Conversely, 90 percent were categorized as experiencing infrequent or only occasional sadness.

Selling Style Impact: Competitiveness. In casual surveys I have conducted throughout the years, I have found that a very high percentage of top performers played organized sports in high school. There seems to be a correlation between sports and sales success as top performers are able to handle emotional disappointments, bounce back from losses, and mentally prepare themselves for the next opportunity to compete.

7. Lack of Self-Consciousness. Self-consciousness is the measurement of how easily someone is embarrassed. The byproduct of a high level of self-consciousness is bashfulness and inhibition. Less than five percent of top performers had high levels of self-consciousness.

Selling Style Impact: Aggressiveness. Top salespeople are comfortable fighting for their cause and are not afraid of rankling customers in the process. They are action-oriented and unafraid to call high in their accounts or courageously cold call new prospects.

Monday, 27 June 2011

Not All Heros Are Tainted

Every now and again I get pretty annoyed with people in the spotlight acting like twits.  Whether it's taking drugs, cheating or spending what is equivalent to another persons annual salary on hair implants, the news seems full of such transgressions.   The problem is bad news travels much quicker than good news with the media being instrumental in overlooking positive stories for the latest smut or embarrassing mistake my whatever sportsperson.  Just this morning I was reading about one of my heros, Craig Thompson, who has been convicted of two charges of lewd, libidinous and indecent behaviour over the internet, towards girls aged 12 and 14.  Craig plays for the team I support and I have admired him for years.  Hearts have given Craig a second chance and we can only hope that the two young girls are ok and that they are left alone and allowed to grow up safe from such ridiculous behaviour.

This whole event reminded me of a British runner called Derek Redmond who showed, in defeat, just what it is to be a hero.  If you have never seen this before make sure you have some tissues handy.

Tuesday, 21 June 2011

How To Tie A Shoe Lace

A delegate of mine sent me this brilliant TED talk that really makes the point - you are never too old to learn something new.  Brilliant