Showing posts with label Millennials. Show all posts
Showing posts with label Millennials. Show all posts

Friday, February 15, 2008

Decision Process Management

Many deals are lost because the sales organization was either unaware of the true decision process or overconfident of their value in this process. Often sales people get trapped in the notion that the decision process is more or less linear. There is a hierarchy of groups or individuals, which ultimately report to single person with total authority over the decision. This is very seldom true. There is a person who has been given the responsibility to sign the contract. That person may have tremendous leeway in making the ultimate decision. But most of the time the one given the responsibility to sign the contract does not feel they have the total authority to sign it. Most of the time responsibility and authority are two totally different processes.

To get to the bottom of this complex transaction, one must first understand the nature of the business problem. As an example, the IT manager who is trying to buy a new processor has been given the specifications, budget and responsibility to acquire the needed resources. But he or she does not own the business process that is driving the need. The value the IT manager puts on the purchase is driven by competition and budget. The value to the functional manager responsible for the business problem is something entirely different.

A big part of decision process management is the ability to understand the needs and responsibilities of everyone involved in solving the business problem. The IT manager is involved in a formal process with defined rules designed to be impersonal to the organization. This process is several steps removed from the functional business needs assessment because the business understands that the IT manager does not need to fully understand the ultimate reason for acquiring the data processing equipment.

The informal decision process is soft and pliable and is based on factors which change from deal to deal. The informal process is very self-motivated. Informal decision makers have “skin” in the game. They generally have a target return on investment that they must deliver. He or she generally has the ability to make decisions for solutions that are outside the box of traditional thinking.

How many times has the IT manager either dismissed a creative solution as not within specifications or “bumped the idea upstairs for review.” The decision of your sales team to engage any set of players in the decision process is an important step in getting the deal. Don’t make the decision process more complex than it needs to be. But understand there can be other forces involved, and make an effort to determine exactly where they stand. Make every effort to know the entire process so that you can make an informed decision as to how to proceed, keeping in mind the true influencer might be a mentor who is not directly involved in either the business process or the formal decision process.

There are three fundamental levels of resistance when it comes to making decisions. The first level is the logical process of understanding the need. When you see a person’s eyes glaze over, eyebrows furrow, or head tip slightly to one side or the other, he is sending you an unspoken message: “I don’t get what you’re saying.” That’s your cue to slow down and touch base with the person before he or she gets so confused or lost in the morass of your idea that he or she loses interest altogether. After all, if he or she doesn’t get your idea, there’s no chance they’ll support it. The consultative approach to selling will help overcome this.

The second level is s based in the emotion of actually implementing change. Concern that something about your idea will make the other person look bad or lose status in the eyes of others, worry that your idea will cost the person his job or endanger his financial security, Nervousness that your idea will cause the person to fail, perhaps as a result of—and in the wake of—your success. Much of what we have discussed here should help to understand the personal risk involved with moving forward.

The last level is the lack of a trusted relationship. Focus on conversation, not presentation. Ask questions to find out what’s going on in the other person’s mind and why he or she opposes the idea. Find ways to connect with others. Paraphrase their concerns to show that you’re listening, embrace suggestions that piggy-back on your idea, and make it clear that there’s room—and opportunity—for others to join you as you move forward to implement the idea.

Take time upfront to understand this thoroughly. It will improve your chances of success and streamline the sales process.

Thursday, May 31, 2007

The Next Great Generation?

Running the risk of being viewed as single threaded in my posts I have decided to take this generational issue one more step. Our future lies not with “The Greatest Generation” or the “Baby Boomers”. It can be argued that they have done their part from an economic standpoint. It could also be argued that they fell short when it comes to real social change. The inventions, achievements and discoveries are extraordinary. Just to name a few:

  • Quantum Physics
  • Proliferation of modern computing power
  • Transistors and nano-engineering
  • DNA mapping for science and crime fighting
  • Commercialized Nuclear Reaction
  • Space Travel (manned space flight, Mars landing)
  • Lasers (light wave transmission and fiber optics)
  • Massive Government entitlement programs (from farmers to urban dwellers)

So what about the future? Who will carry the flag into the next battle? The Millennials as they call themselves? Now Neil Howe and William Strauss would have you believe that they’re the ones. I for one hope it’s true. In their book Millennials Rising: The Next Great Generation“ Howe and Strauss would have us believe Millennials are part of the generational cycle of four. That means that they will, according to the authors, as part of their rebellion, emphasize manners, modesty and old fashion courtesies. They will bring trust to politics, rebel against individualism and social ennui. Fundamentally right almost every wrong.

I don’t know that I would go that far. What I do believe is that in every generation there are those who stand out. My parents thought that long hair and rock and roll was going to end civilization, as they knew it. To some extent it did. But out of that rock and roll era came great minds and leaders. I expect that the Millennials will have the same impact. Some will rise to the top while most will continue along their chosen path without really giving much thought to the future, other than their own. I am just as concerned about this generation as my parents were concerned about mine. I was as outspoken about my parents as the Millennials are about theirs. Sure they irritate me at times, I irritated my elders. The key to their fame is in their passion. What are they passionate about?

American Millennials face a growing challenge to their greatness with competition from Asian and Indian Millennials. Overseas they are studying Physics, Math and Engineering in greater numbers. We are not. I have heard it said that their schools are not as good as ours. They will be. In the mean time they will just go to ours. Think about this, every year, China produces more university graduates than the US and 60 percent of them cannot find a job. The massive growth in their capitalistic societies will mirror the Golden Era of Capitalization in America during the 1950’s through the 1970’s. Every year since 2004 China has been building enough power plants to supply a major European country. They will gobble up every natural resource they can consume. Suppliers will be looking east for trade not the west. Currently the United States annually imports $200M worth goods more then it exports to China.

China has a population of about 1.3B. India has a population of around 1.1B. The combined population of Europe, Canada and the United States is only 1.1B. There is already a 350 million English-speaking, educated Indian workers. In China, an estimated 200 million people are learning English. There are only 250 million English-speaking Americans.

Millennials can meet this challenge. They must start to take control of their future. They will need the help of all of us. We need to nurture this generation into greatness. I don’t see a “rebellion to the light”. I see the natural evolution of a generation.

How wonderful it is that nobody need wait a single moment before starting to improve the world. - Anne Frank