Top Consultants Rant About 2009
Last December we asked some of the nation’s top sales and banking consultants to weigh in with their thoughts for the coming year. We had so many articles submitted we had to save two for the first issue of 2009.
Sales Motivation? Yes, But What Kind?
By Charles H. Green,
President & CEO, Trusted Advisor Associates
The late comedian Chris Farley had a Saturday Night Live routine in which he proclaimed, “I’m a motivational speaker. I live in a trailer down by the river.” For the SNL audience—which sees itself as hip, skeptical, and not exactly pro-business—it was a shared conceit, a condescension about a certain approach to sales.
I once had a client who asked if I was a motivational speaker. I’d never heard that one before and said, “well, I hope what I have to say is motivating to people, though that’s not what I’m setting out to do.” That client heard nothing after my first clause; I lost the job on the spot. Probably an SNL fan…
At the same time, there are hundreds of motivational speakers out there who are proud of that term and plenty of clients who are proud to hire them. Many of those clients are sales organizations. And if you ask most sales organizations whether motivation is important, they’ll say ‘yes.’ But exactly what are they saying yes to?
As another comedian, Jerry Seinfeld, might say, “What is it with motivation and sales meetings?”
I think there are three answers. And one is better than the other two.
Three Kinds of Motivation
One type of motivation people seek is defensive. A pep talk fits in this category. Someone who speaks about overcoming tremendous odds. The amputee who learned to throw a football with the other hand. The war prisoner who endured, even learned.
This kind of motivation is an antidote to salespeople who are tired: tired of rejection, tired of not making quota, tired of being turned away. It gives them hope that their turns are just around the corner and the energy to keep on keepin’ on. Don’t give up hope. Your dream will come true, just don’t let go of it. I made it with even tougher odds—you can do it too.
Another type of motivation is aggressive. Get out there and win one for the team. Yay for us, we’re gonna win this battle, then the rest of the war. The underdog team plays big in this type of motivation. Only the lead dog has a change of scenery. No one remembers who got second place. You are part of a winning team. We’re number one. And so on.
Those kinds of motivation have their place, but they also have their limits. Both of them set up “us against them” mentalities. Defensive motivation pits us against our customers: I’m not gonna let them wear me down! I’ll just keep banging on the door until they have to let me in.
Aggressive motivation is about competitors, not customers. Customers are simply the chips in a competitive poker game, the means by which we score the contest.
But there is a third kind of motivation, call it: relationship motivation. It is about reminding us that we can accomplish great things for our clients. And it is inherently positive. Relationship motivation is about reminding ourselves that we can improve our clients’ lives and their businesses, that we are, in fact, uniquely suited to do so.
The mantra of defensive motivation is “the clients can’t hurt me.” The mantra of aggressive motivation is “I can beat the competition.” But the mantra of relationship motivation is, “I can help my clients—and I can’t wait to start doing so.”
Both defensive and aggressive are primarily zero-sum games. Winning a job just means you finally won and someone else lost. Beating a competitor doesn’t add value—it just declares a winner.
By contrast, relationship motivation is open-ended. By focusing on how to improve the client’s lot, we are open to value-adding ideas which can only come from joint, collaborative thinking. Relationship thinking leads to better economics than me-vs.-you thinking.
Generating Relationship Motivation
There are, of course, motivational speakers and they cover all three types of motivation. All have their places. But if your financial services firm and your sales are complex, if you think of your organization as mainly relationship-driven, and if your sales process is high-ticket and takes time, then you should over-emphasize relationship motivation in speeches.
Of course, motivation is hardly limited to speakers at events. Another area of influence is your choice of motivational rewards. Over the past few decades, we have seen a movement towards thinking of “motivation and rewards” as largely a function of monetary incentives arrayed against metrics. Salespeople will always pay great attention to sales numbers—as they should. But there are important cautions.
First, monetary incentives are extrinsic rewards—secondary results of doing something else. If your entire motivational system is based on extrinsic rewards, you will reduce the importance of intrinsic rewards. Intrinsic rewards include pride, professionalism, peer respect, and client focus—direct results of doing the thing itself. Alfie Kohn has written extensively about the negative consequences of excess focus on extrinsic rewards. It has the same corrosive effect as does focusing on aggressive or defensive motivation in speeches. It separates us from our clients, making client service only a means to a monetary end, rather than seeing our customers as ends in themselves.
Secondly, focusing on extrinsic motivations alters our view of time. If your business development efforts are all aimed at this quarter’s numbers, if your metrics are primarily short-term, if you track inputs rather than results, then you are encouraging a non-relationship kind of motivation. Longer-term metrics and rewards more genuinely link client and professional and better align the greater rewards that can come with collaboration.
Relationship motivation produces the best economics. Intrinsic rewards do the best job of encouraging relationship motivation. When extrinsic rewards are used as well, it is best to make them long-term. There’s nothing wrong with measuring short-term results, the problem comes from managing short-term. The best short-term results come about from executing a long-term strategy, driven by a relationship motivation.
In 2009, to answer Seinfeld’s question about motivation: it depends on which motives you’re talking about. And some are better than others.
About Our Trusted Friend Charles Green
Charles Green makes the concepts of trust and trustworthiness come to life. Whether in his is daily blog, Trust Matters or his
bestselling books, The Trusted Advisor and Trust-Based Selling, readers benefit from his expertise and his wisdom. Charles’ practical, down-to-earth approach benefits his audiences worldwide. He says he is not a motivational speaker, but this information should motivate us all to continue down the client-focused pathway. You can reach Charles Green at: www.trustedadvisor.com or 973.898.1579.
Shifting Paradigms in Middle Market Banking…The Emergence of Emotional Factors Driving Client Banking Behavior
By Bob Neuhaus and Glenn Staada,
TNS Financial Services Practices
The worst financial crisis since the Great Depression has created a seismic shift in the U.S. banking landscape. Failures, bailouts, consolidation, and frozen credit are leaving Middle Market banking clients feeling extremely vulnerable about the security of their deposits and the availability of desperately required credit. Recen surveys of the TNS Commercial Banking Momentum Monitor and the TNS Bank Advisory Board suggest that the greatest shift in Middle Market banking relationships in decades may be upon us. Savvy Middle Market bankers are only able to seize these opportunities if they understand and manage to the shift in client decision-making drivers.
Recently, one in five senior financial executives at Middle Market businesses admitted their firm is seriously considering making changes to the banking providers they use. This is considerably higher than the recent historical average of 4% change per year. The most commonly cited reasons were concerns related to the financial stability of the banks, diversifying funds to maximize FDIC protection, and an attempt to seek out banks willing to extend credit.
Separately, executives were asked to select the five most important factors in gauging current commitment to their lead banks. They were provided a list of fifteen attributes, some rational in nature, some more emotionally focused. By far, the two most important factors were the financial stability of the bank and the willingness of the bank to extend credit. The top five are listed as follows with the percentage selecting it as being the most important factor.
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The financial stability of the bank (39%)
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The willingness of the bank to extend credit (15%)
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The strength of the relationship between the client and the relationship manager or primary contact at the bank (8%)
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The pricing on all products and services (7%)
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Security measures that the bank offers to protect client’s sensitive information (6%)
Executives also confirmed the conventional wisdom that financial stability of the bank and willingness to extend credit are much more important to their firms now as compared to one year ago. Relationship management, pricing, and data security remains as important as they always have been.
The importance of the bank enterprise in relation to the banker has never been as level as it is today. Six in ten Middle Market executives agree with the statement that “the bank is as important to them as the banker.” Only 9% disagree with this statement. This ushers in a new environment in Middle Market banking that requires strategic management of the enterprise-level commercial banking brand. While the individual banker’s “brand” is still important, in 2009 it is no longer enough to sustain Middle Market relationships, at least for the foreseeable future.
The shift in the environment is also paramount in the solicitation of prospects. Financial stability, willingness to extend credit, and pricing are the top three factors that executives use to evaluate prospective new banking partners. However, factors relating to a feeling of confidence in the bank and the degree to which the bank can provide customized solutions are also important (more so than in evaluating current providers). Middle Market bankers must understand that acquisition and retention attempts in the near-term must be built on a foundation that satisfies client and prospect emotional needs. Frank disclosure about the bank’s financial situation is a must. Frequent communication and guidance, not only from relationship managers but also from senior management, helps ease feelings of fear, vulnerability, and doubt. Demonstrating the bank wants to extend credit as soon as it is financially responsible to do so creates a feeling of partnership with the client.
In 2009, banks must satisfy these emotional needs before they will be able to connect with customers and prospects on the rational utilities that they are offering.
About Our Friend Bob Neuhaus and TNS
We met Bob Neuhaus when he was a young banker at M&T in the mid-1990s. One conversation with Bob revealed his unique ability to link the emotional and technical sides of the sales equation. TNS is one of the top research firms in the world serving banking and many other industries. You can reach Bob Neuhaus at 203.653.9556 or via e-mail at bob.neuhaus@tns-global.com.
Public Workshops - Chicago / Indianapolis / Phoenix
These open-enrollment workshops have almost hit our maximum number of 30.
Prospecting Playbook
February 11, 2009
Chicago Marriott Northwest
Hoffman Estates, Illinois
8:30 A.M. - 4:30 P.M.
Instructor: Jack Hubbard,
Chief Experience Officer
Prospecting Playbook
February 18, 2009
Crowne Plaza Indianapolis Airport Hotel
Indianapolis, Indiana
8:30 A.M. - 4:30 P.M.
Instructor: Jack Hubbard,
Chief Experience Officer
Sales Execution in a Challenging Economy
March 3-4, 2009
Embassy Suites
Phoenix, Arizona
8:30 A.M. - 4:30 P.M.
Instructors: Ron Buck, President SMH Consulting Group and Jack Hubbard, Chief Experience Officer
For detailed information and registration information click through to our website: www.stmeyerandhubbard.com.
Annual Open Enrollment Sales Management Seminars in Chicago
Sales Management Seminar: April 21-22, 2009 - limited to 25 delegates
Here are just some of the tools and best practices participants receive:
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Retail Skill Builder and Huddle Meeting templates
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Check-ins a powerful, unique approach to one-on-ones
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Joint Calling and Commercial Pipeline Meeting guides
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Dynamic Branch Observation and Coaching strategies
There’s more–much more, like:
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A networking dinner on the 95th Floor of the John Hancock Building
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A one-hour 5 Cs of Trust-Based Selling session with Jack Hubbard
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Tom Doherty, Senior Vice President, First Chicago leads a Lunch ‘n Learn session about Prospecting and Onboarding
Finally, each banker receives a copy of Conversations with Prospects.
To register, click on the link:
http://www.stmeyerandhubbard.com/workshops/public.html
or contact Kathy Kruzich at 630.845.4676 or kkruzich@stmeyerandhubbard.com.
Talking Business with Small Business…limited to 25 delegates Complimentary Preview Session April 23, 2009
Talking Business with Small Business helps bankers:
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Understand the dynamics of business and financial issues
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Ask high payoff questions to uncover cash flow needs
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Connect cash flow and operating challenges to solutions
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Uncover borrowing causes, loan purposing and repayment sources
Using an interactive simulation, Talking Business with Small Business builds confidence, reduces call reluctance and allows branch managers to execute discovery conversations that lead to second and third visits and ultimately more closed business.
This one-day overview of Talking Business with Small Business includes:
- Facilitation by Julie Ruffolo, Executive
Vice President
- High-Level Participant Handout
No more than two participants per bank please. For more information contact Kathy Kruzich at 630.845.4676 or kkruzich@stmeyerandhubbard.com.
Building Your Community Bank Performance Culture in 2009
Part One: Definition, Consistency,
Action Take
Worn-Out Sales Cultures to the Next Level
By Ron Buck, President,
SMH Consulting Group
When we started St. Meyer & Hubbard in 2000 we introduced the term “Performance Culture” to the financial services industry. The goal was to make sales less bank-centric and more customer-focused—a win-win situation for everyone involved. In non-anthropological terms, a culture is defined in the beliefs and behavioral characteristics of those within a workgroup. A performance culture could then be defined around the beliefs and behaviors relative to the execution of work. Simply stated, it’s: “how we hold sales conversations here.”
“Performance” is an interesting word. It can be used with many adjectives like poor performance, average performance, high performance, or lack of performance. Each defines the type of culture we are referring to. Perhaps the best way “Performance Culture” should be used in banking is relative to improving performance. This definition then can be tied to an organization’s belief that while not everyone can be a high performer, everyone can continue to improve performance. Community banks have this conviction that everyone can improve and because they are not caught up in the short-termism of the market, they can be more patient with associates and nurture the improvement process over time, not overnight.
Performance improvement is the precursor to high performance. When every employee improves his or her individual performance by 10% the organization’s performance improves by 10%. This is a new way to think within a “Performance Culture.” Previously, banks tended to measure and coach every employee to hit the same sales goals and perform at the same high level. This is unrealistic and potentially toxic. Banks engaged in a “Performance Culture” individualize goals and coach each employee based on strengths and improvement needs, understanding that not everyone can be a high performer, but that everyone can improve performance.
Performance Improvement is the Foundation - Behaviors are the Change Agents
During the past five years we have tracked, measured, and recorded over 100 Key Performance Indicators at 1,100 retail branches and with over 300 business bankers. These data have provided us a unique perspective of high performance and transformational banking.
Best-of-breed banks share one common characteristic: whatever the operating model, high performers focus rigorously on managing constant incremental performance improvement. This enables them to sustain growth, profitability, and local market differentiation.
High performing banks focus on an observational coaching model which isolates individual goals, individual behavioral change, and continuous incremental performance improvement. Figure 1 illustrates a graphical scorecard for a frontline employee that is performing below the minimum performance level established by the organization. During February and March the coach works with the employee to have early wins and to create a plan to perform at a level equal to the minimum performance standard. During the next 90 days the employee is coached to make incremental improvement (perhaps 10% each month).
Figure 2 illustrates the “motivation curve.” Transformational coaches (those building a “Performance Culture”) understand that many employees fail to improve performance when goals are either too easy, too difficult, or undefined altogether. High performing coaches recognize the importance of setting goals that maximize motivation, which varies from employee to employee.
Coaching behaviors supported with a transformational incentive program helps keep motivation strong which tends to drive better performance. Most banks compensate employees for absolute performance and fail to reward performance improvement and recognize the behaviors that drive performance improvement. Transformational banks (those with a “Performance Culture”) reward performance improvement and vocally recognize use of the behaviors that caused success, not simply the success itself. These new organizational and coaching behaviors are the cultural lever—the cultural change agent the industry has been looking for.
Stephen R. Covey defines a habit in his book, The 7 Habits of Highly Effective People, as the intersection of knowledge, skills, and desire. Knowledge is the “what to do” and “why.” Skill is the “how to do.” Desire is the motivation or the “want to do.” Desire is a critical measure of motivation and engagement. Figure 3 illustrates how transformational coaches segment their employees—with a goal to continuously improve the behaviors of every employee to a higher level. Figure 3 illustrates the measures of an employee’s performance (Key Performance Indicators), the fulfillment of building trust and helping customers meet their financial goals. B employees are typically new employees that are totally engaged, fulfilled, and excited about their jobs, but don’t perform at the highest level yet. C employees perform well, but are not engaged; they tend to be transactional versus relational bankers. D employees are disengaged and their lack of performance is a constant battle for everyone in the organization.
Figure 3 illustrates how knowledge, skills, and desire (motivation) are applied to form the new behaviors (or habits) for each segment. Transformational coaches understand that each employee segment requires a different “Covey” approach and a focus on different behaviors that result in incremental performance improvement.
Watch your February 2009 edition of Conversation Signposts for part two of this Performance Culture overview. You’ll learn about the Bridge to Performance Success, the people, process, technology, leadership and other drivers that can make this year and every year a performance year. To contact Ron Buck about your performance strategies, call 480.212.6082 or e-mail him rbuck@stmeyerandhubbard.com.
ABA School of Bank Marketing and Management
The profit panic in our industry will be short-lived. Providing education dollars for associates provides a long-term return. The ABA School of Bank Marketing and Management gives marketing professionals the training they need to drive profitability and growth.
At the ABA School of Bank Marketing and Management, bankers enter as marketers and emerge as financial marketing experts. Graduates lead powerful and results-driven marketing departments. Discover how
the marketing function can provide
business-critical outcomes by effectively working with senior leadership and delivering
measurable return promotions, campaigns, branding, and much more.
Instructors (all are ABA School graduates) include: Bruce Clapp, Bill Hippensteel, Jack Hubbard, Kent Stickler, and Lance Kessler. Jack returns for his 25th year as a faculty member!
Banks are facing increasing challenges these days. Tough economic times are testing the mettle of even the strongest institution. Successful banks understand how to leverage sound marketing strategies to navigate this rough period and strongly position themselves for growth. The ABA School of Bank Marketing and Management offers valuable long-term benefits to marketers who seek to build the bottom line. To register, contact JP Stephenson at jp.stephenson@aba.com.
Thanks for Five Years of Reading Conversation Signposts
In the fall of 2003, Brian O’Connor, a great friend of our company, suggested we start a newsletter. Who knew how brilliant the suggestion was? Conversation Signposts has gone from less than 100 initial subscribers to more than 13,000 in the past five years. We appreciate Brian’s foresight and we thank you all for the way you respond to our rants and articles and for allowing us to enter your e-mail boxes every month.
In 2009 we’ll continue to make you think as well as help you grow and provide resources to help your people help their customers.
Register below: it’s FREE!
http://www.stmeyerandhubbard.com/signup.html
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