HBR: How Smart Managers Build Bridges

How do you manage conflict?  Are you improving your relationships with your directs? Below is a blog from the Harvard Business Review by Charalambos Vlachoutsicos

How Smart Managers Build Bridges

What do you do when the other person simply won’t budge from an entrenched position in which they have a great deal of personal and professional commitment? How do you bridge the gap between your position and his?

Most people try to win the other person over to their point of view by argument. The trouble is, in many cases they don’t have all the facts to fully understand why the other person doesn’t agree. What’s more, the gap may be down to differences in values or cultures that are not particularly amenable to reasoned arguments. Whatever the source of the differences or gaps, when you can’t win by reason, you start to get angry at what you see is the other person’s lack of it, which gets mirrored, and so the gap only gets wider.

The key to avoiding this dynamic is to stop trying to get the person to change and instead get them to open up. The information you get may well encourage you to moderate your own position and thus open the way for a mutually advantageous cooperation. Make them understand your constraints and get them to see what they have to gain by what you propose.

Of course, sometimes, no amount of understanding is going to get the other person to budge and you’re going to have to force progress. At this point, you have to work to bridge the gap in such a way that their main concerns are accommodated so that you can communicate and cooperate productively in spite of and within the limits of your differences. Typically, this involves talking responsibility for the action you wish to make while being prepared to share the payoff and the credit.

Once the gap is actually bridged and you move forward you will pretty soon see that your interactions generate change. Through the give and take of communication, all sides come to feel that at least some of the differences between them are actually smaller and easier to live with than they appeared to begin with.

I built perhaps my first managerial bridge when, fresh out of HBS, I joined our family’s business. Immediately on joining I realized that our warehouse constantly remained out-of-stock of at least five of the thirty-odd products our company carried. This not only caused a loss of sales of the items missing but also had negative repercussions on the sales of all of our products because it drove many customers into our competitors’ arms.

I went to our warehouse and met with the manager who was a very loyal, trustworthy person who had worked with us for many years. He was about 60 years old, knew all our clients personally and had a wide network of potential clients in the market. I asked him why he believed we faced this problem.

He answered that it was because our suppliers took a long time to deliver our orders and, given the global nature of our supply chain, there was nothing we could do about it. I talked to him a little about the notion of forecasting what amount of each product we would need to carry as minimum stock, in order to cover our sales during the time required between the date of placing our order and the date it would reach us.

His reaction was fierce: “If you want predictions go to the Oracle of Delphi,” he told me. “In Greece we do not know what will happen from one day to the next, so we cannot make predictions of how much of each product we will sell.” He would not budge.

Faced with this attitude, I stopped trying to get him to change. Instead, I asked for a worker, some red paint, a brush, and a wooden ladder. I obtained from the accountant the average monthly sales of each product, added a security margin of 20%, converted this quantity to the volume of space required for each product, and drew on the wall a thick red line at the point where the pile would probably be enough to cover sales of the product until our next order arrived.

I assured the manager that I respected his view that predictions in Greece were risky and — this was critical — assured him that the head office would take responsibility for whatever risks were entailed by my attempts to forecast “All you have to do is, whenever you see a red line appearing on the wall behind the stack of any product, is inform me”. Finally, I promised him a bonus for each day our warehouse carried stocks of all our products.

The immediate impact, of course, was fewer stock-outs. But the longer-term and more important benefit from the improvement was that the warehouse manager and I started talking more. He took to visiting me at my Athens office and to ask my opinion on other problems our Piraeus shop faced and to make useful suggestions on how best to address them. Thanks to my action in bridging I had been able to move from talking to the manager to talking with the manager.

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Why She Buys: The Lesson of Ryland Homes

Why She Buys: The New Strategy for Reaching the World’s Most Powerful Consumers by Bridget Brennan is a fascinating book which provides a different perspective on selling to women. Below is an excerpt from the book:

The Lesson of Ryland Homes: If the woman doesn’t want it, the man doesn’t get itWhy She Buys.jpg

Myth: Men drive all the big decisions in married households.

Reality: Women are the deal breakers.

You’d be hard-pressed to find an industry more male-dominated than home building. The average home-building company is staffed like a World War II aircraft carrier, at least in its management ranks. But times are slowly changing. While most senior executives are still white and male, these companies are waking to the fact that their real customer are women, and that they’ve been leaving money on the table by creating and selling homes from a male perspective, from underdesigning closets to using sell sheets that focus purely on technical data and architectural blueprints.

The Ryland Group is a $2 billion, publicly traded home-building company-one of the top in its industry-that has changed the way it designs houses, based on a new understanding of who rules America’s roosts. In one of the world’s biggest housing downturns, the company is leveraging its knowledge of the alpha consumer ever way it can.

If you’ve never thought of a home as a product before think again–a new home is the ultimate consumer lifestyle product. For most people, there is no bigger purchase, literally or figuratively. As is the case with all major consumer product categories, women dominate.

“Women influence 91 percent of new home purchases,” Eric Elder, the senior executive who has championed most of Ryland’s female-focused efforts, For several years now, single women have been the fastest-growing segment of the home-buying market, buying twice as many homes as single men. I worked with Ryland on a two-year research project to understand what: women want in a new home. As a result, the company implemented a variety of covert, female-friendly efforts across the company. The goal was to make these changes imperceptible to home buyers, so that women would feel drawn to Ryland’s homes but men would not feel excluded.

DESIGNING WOMEN

As discussed in Chapter 3, when a woman goes off to the workforce, she changes her personal traffic patterns, along with those of everyone in her family. As such, working mothers were the biggest catalyst for modifying Ryland’s floor plans. The company redesigned the common areas Of many of its models so that multitasking moms could keep one eye on the kids and eye on the stove. Windows were built over kitchen sink to provide a direct line of sight to the backyard. Open kitchen/family room layouts were designed with nooks for decks, so that kids could do their homework on the computer or watch TV while Mom looked on from nearby. These designs were an acknowledgment of the “time compression” that occurs within families when both parents work. Instead of parents spending an hour or two helping kids with homework and then making dinner, both activities are now likely to happen at the same time.

Time compression and the blurring of boundaries between work and home means that home isn’t quite the sanctuary it once was. With cell phones, BlackBerry devices, laptops, and the Internet, work is “part of the furniture” at home, too. In an effort to replace what’s been lost, Ryland redesigned its master bedrooms as oases for stress relief. New master suites were designed as retreats for the adults in the house-and in particular, women. “A private, relaxing, reenergizing space is especially important to single mothers, who don’t get much time on their own,” says Elder. Many of Ryland’s master bedroom suites now feature a coffee bar, mini fridge, and lounge area.

WELCOME TO THE NEIGHBORHOOD

Modifications to Ryland’s floor plans were just the beginning. The company also embarked on design changes to its neighborhoods. It learned that women don’t view themselves as buying just a house with four walls; they feel like they’re buying an entire community, a neighborhood, a school district, and a lifestyle. Women believe a new house is going to improve their life, along with the lives of everyone in their family. If it won’t, they might as well stay where they are. Subsequently, Ryland began creating more female-friendly amenities in its neighborhood designs, including cul-de-sacs, better street lighting, pocket parks, electronic garage doors as a standard feature, better lighting around home entryways, and secure gated entries in townhouse communities.

EMBRACING PERSONALIZATION

As part of the female-friendly process, Ryland completely overhauled its design centers, the places where customers pick out their options and upgrades after signing a contract for a new home. These centers had a history of being housed in the bare garages of model homes.

“In our industry, picking out home options and upgrades used to be a back-office function,” says Elder. “We’d have a hodgepodge of display cases given to us by random suppliers, with a few samples of products here and there; bad lighting … the whole experience was an afterthought.” It couldn’t be more different now. “We actually embrace the personalization process, when we used to fight it,” explains Elder. “It’s one of the biggest changes that’s occurred at the company, and it’s wholly driven by women.” A senior female executive at Ryland, Diane Morrison, was the force behind the company’s new design centers. She recognized that for many women, the appointment at the design center is the most exciting part of the home-buying process: it is here that they get to pick out all the things that will make the home distinctly their own.

Ryland also broadened the color palettes on its home exteriors, to help women feel that their new home has a unique, personal identity, and to diminish the dreaded “cookie cutter” effect. Instead of offering three exterior colors in a one-hundred-house community, Ryland now typically offers from nine to fifteen.

LESSONS FROM THE COVERT APPROACH

Ryland is a great example of a masculine industry that’s responded to women with subtle design changes that benefit both sexes.

“Every architect that’s designed homes throughout the history of this company has been a man,” says Elder. “Closets used to be leftover spaces that were essentially a door and a hole. Now they are a design element of the home, with functionality built into them. Our sales lobbies, which used to be fairly bare, now have places to sit down, with inspirational reading materials, like home design magazines, and toys for kids. And we’ve changed our merchandising displays so that they are more emotionally charged and filled with pictures of people.”

When the covert approach is done right, men don’t even notice the design elements that have been added for women. , It turns out that men like the idea of having a hot cup of coffee in their master bedroom, too. “From a consumer stand-point, men would live in the garage if they had to,” says Elder with a grin. “Women want the home, and men want the women to get what they want. The great thing for us is that the changes we’ve made have been driven by women but are appreciated by men, too.”

When you appeal to women in a covert fashion, the men find themselves on the receiving end of things they never knew they wanted but are happy to get-and maybe even pay more for the next time. The lesson is this: when you make women happy, you make everyone happy. Women are the leading economic indicators of what people want. Key learnings from Ryland include:

  1. Never underestimate the influence of women in a couples” purchase. Women are the veto vote for buying decisions large and small, from deciding what home to buy to where to eat. The individual who conducts the financial transaction (which can often be the husband) is not always the primary decision maker. If you sell to a lot of couples, figure out the “hot buttons” for both your male and female customers. They may be very different.
  2. Study how the divorce rate and the increased spending power of single women may be impacting your industry. The phenomenon can open new opportunities in product design, as it did with Ryland and its master bedroom retreats, and also in the services that support your product offerings.
  3. A well-crafted, subtle approach attracts women and pleases men, too.
  4. It’s socially unacceptable for men to buy products that are overtly feminine. By being subtle in your appeal to women-through a covert approach-you have the ability to attract both sexes without alienating either one. Married women never want to see their husbands alienated or emasculated. (Not if they’re happily married, anyway.)

HBR: The Most Common Reasons Customer Experience Programs Fail

What are your Costs-to-Acquire, Customer Penetration, and Customer-Lifetime Value? Do you have a Customer Experience strategy? Below is a blog from the Harvard Business Review by Ryan Smith and Luke Williams.

The Most Common Reasons Customer Experience Programs Fail

Most customer experience (CX programs) are positioned as strategic, but quickly veer away from business objectives and become simply about tracking CX metrics. Time passes slowly, data continues to mount, and paralysis sets in. Big, strategic goals evolve into score improvements and incrementalism instead of gleaning useful insights that allow change with confidence.

So where does it all go wrong?

Most CX programs are broken in similar ways:

  1. They are not designed with change or innovation in mind.
  2. They have “soft” metrics rather than real business goals.
  3. They move slowly and without purpose.

Mistake #1: Forgoing change and innovation

Ask your CX program leader about the purpose of the program. If the answer is something other than, “So we can make intelligent changes that benefit the customer and the business,” you may have a serious issue. CX programs must be about change.

At the most rudimentary level, basic programs track performance over time. Yes, that’s useful, but why is it important? Because you want to improve over time. This means you must do things differently than you did them before. While it’s not complicated, this is a frequently overlooked premise to having a CX program—it’s about change.

Effective CX programs prioritize the importance of what gets measured and stack those data against your desired outcomes—what’s called “driver analyses.” Good driver analyses unlock the method for having the most change in the fewest possible moves.

While executing driver analyses enables change, it’s not actual change. It’s just more data until you do something with it. The reasons change doesn’t often happen are reporting paralysis, the lack of “think time,” and failure to collaborate.

Reporting paralysis can occur when teams are so wrapped up in distributing data, ensuring data quality, or writing up insights that they forget the purpose of data. If you “measure everything and report everywhere,” you’re not being strategic with your data.

Building in “think time” can help with this. Instead of just measuring, manufacturing, and distributing, build in time to understand the implications and applications of the data. This will give you clarity and confidence in what you’ve seen, how the pieces of the puzzle fit together, allow hypotheses to be formed and plans for change to be made.

Collaboration is also important if CX is going to result in any real change. CX experts must work with other departments and stakeholders to push the agenda for customer-focused improvement. Yes, it’s hard to do this when no one has time to meet, much less collaborate. But the CX program is uniquely positioned to try to make this happen anyway. They own the customer, they’re the advocate, and they have the analysis. Most importantly, the CX program reminds everyone else why they have to make time for the customer, above all else.

Mistake #2: Linking metrics to business outcomes

Most CX programs use their own tracking measures as emblems of success or failure. If a score improves, that number is heralded and CX teams use it as evidence of innovation and improvement by the team. Often, these results are accepted at face value.

But the problem with this approach is you really can’t control for all other things that could cause scores to rise, and you can’t assume that a rise in scores is good for net revenue. When it comes time to set key performance indicators (KPIs) for the program, be sure to match them up against input from both your CMO and your CFO.

What are the kinds of things you might want to consider? Here are some examples:

  1. Cost to Acquire and Serve a Customer (CAC and CSC): The better you understand your customer and prospect base, the more you build experiences and services they crave, the lower your CAC and CSC should be.
  2. Customer Penetration and Share: Customer penetration is simply increasing the number of customers you have. Share of wallet is the ultimate measure of how they spend their money when the ultimate point-of-sale (POS) decision occurs. Study the drivers and barriers of both to optimize here.
  3. Customer Lifetime Value: This is the net present value of all future customer revenues with account for attrition and your discount rate. It’s a complex measure, but the best firms understand it and make it a central part of their scorecard.
  4. Customer Churn: A well-run CX program can contribute to gains against customers shifting away from your brand (attrition) or abandoning it altogether (defection).

There is place in the world for performance benchmarking survey metrics like net promoter score (NPS). Many firms aren’t sufficiently sophisticated with respect to the above measures, so measuring NPS or other metrics may be the only empirical evidence available. When this is the case, though, be certain to study KPI success or failure with caution. A satisfied customer is not necessarily a profitable one.

Mistake #3: Moving slowly, without purpose

A CX program is a living, breathing thing. It’s either in a state of growth, peak productivity, or decline. CX programs are like mountain climbing — if you aren’t confidently moving through the problem, you may be wasting valuable energy trying to figure out where you’re going.

While it’s critical that CX programs be well designed and methodologically sound, sometimes wasteful activities are allowed to creep into the design process and bog down the program. Lack of momentum and sluggishness spell doom to a CX program, and leadership must propel the program.

True CX leadership comes from:

  1. Ownership. There must be a program owner: a single person who is ultimately responsible for the success and quality of the program.
  2. Expertise. The leader doesn’t have to know everything about the business, research methods and analytics, or strategy to be effective. But the more they know about each, the more effective the program will be.
  3. Resources. Multi-million dollar budgets aren’t necessary to create or capture value. Start with a basic budget commensurate with those of an IT program. Let them demonstrate value to earn more resources.
  4. Empowerment. Give your leader the authority to be successful.

Going slowly when you don’t intend to is clear evidence that the program has slipped into neutral in the leadership camp.

There are many obstacles and detours that can prevent full ROI from your CX program. In our experience, these three are the most common. To avoid them, remember that CX programs are not merely about watching scores go up and down. The goal is to create experiences that add value to the customer and the firm simultaneously, and this requires constant change. So think about what ideal experiences you want customers to have, and work backwards from there. Work quickly. And re-invent as needed.

Original Page: https://hbr.org/2016/12/the-most-common-reasons-customer-experience-programs-fail

 

HBR: A 2×2 Matrix to Help You Prioritize the Skills to Learn Right Now

Take time to reflect on the mix of activities in your working day. What would help you the most? Learning to write more clearly, improving meeting skills, or learning to manage your time more productively? Below is a blog from the Harvard Business Review by Marc Zao-Sanders.

A 2×2 Matrix to Help You Prioritize the Skills to Learn Right Now

So much to learn, so little time.

The world is bursting with learning. There are several million business books, 3,000 TED talks, 10,000 MOOCs, hundreds of thousands of e-learning courses, and millions of self-published articles on platforms such as LinkedIn and Medium. The article you’re reading right now is just one of thousands of articles on HBR.org. Picking the best and most relevant from all this is hard.

Yet it’s essential. The modern worker has very little time for learning — less than 1% of their time, according to Bersin, a division of Deloitte. And it’s more important than ever to learn continuously as the shelf life of skills shorten and career paths meander and lengthen.

So there’s a significant pressure on us all to learn the right stuff. How do we identify what that is?

One approach is to apply a time-utility analysis (similar in form to a cost-benefit) to the subjects you’re interested in learning. “Time” is time to learn. It’s effectively the opportunity cost to you of achieving competence. “Utility” is how much you’re likely to use the desired skill. For example, today’s manager spends a lot of time emailing, gathering data, running meetings, and making spreadsheets, so the utility for improving at these activities is especially high.

Combine time and utility, and you get a simple 2×2 matrix with four quadrants:

  • Learn it right away: high utility, low time-to-learn
  • Schedule a block of time for learning it, ideally in your calendar: high utility, high time-to-learn
  • Learn it as the chance arises — on a commute, lunch break, and so on: low utility, low time-to-learn
  • Decide whether you need to learn it: low utility, high time-to-learn

2x2 Learning.png

Once you’ve decided what you want to learn, you can use this same framework to zero in on specific skills to focus on.

Let’s illustrate the method with a single workplace activity with high utility: spreadsheeting. Knowledge workers spend almost half an hour in a spreadsheet every day. And in major corporations, this is almost synonymous with using Excel: there are almost a billion users of Microsoft’s spreadsheet program, and more than four-fifths of businesses globally use Excel. A time-utility analysis might suggest you want to get better at it.

But Excel contains over 500 functions and many more features; that’s a lot to learn. Where would you even begin? For a time-utility analysis to be of any use, we need it to help us at this level, down here in the weeds. To get a sense of utility, we reviewed dozens of articles written by Excel experts about their preferred Excel features. We used this analysis to compile a list of the 100 most useful Excel functions, features, tips, tricks and hacks, ordered numerically by utility. We combined this with our own data on how long each of these features takes users to learn, and plotted the two against each other. (Yes, we got a little excited about this project. Don’t worry, you don’t have to delve into this level of detail when you’re prioritizing your own learning.)

Exel Learn.png

As you’d expect, there’s some correlation (r=0.3), so the more useful items take longer to learn in general. But the scattered effect gives rise to some useful, tangible pointers for prioritizing what to learn.

You’ll find the quickest wins in the bottom-right quadrant, which we’ve labeled “Learn it right away.” In here we have time-saving shortcuts that can be applied frequently, like Ctrl-Y (redo) and F2 (edit cell) and a nice combination formula that cleanses your spreadsheet of errors (IF(ISERROR)).

The quadrant “Schedule a block of time for learning it” hosts the highly useful but more complex features, such as conditional formatting and pivot tables — these were deemed the two most useful on the entire list.

Bottom-left is those less useful but quick-to-learn items like Ctrl-5 (strikethrough) and Show Formulas (Ctrl¬).

Finally, in the top-left quadrant are the theoretically least appealing items, such as Get External Data and Text to Columns.

But for all of these, you, the individual learner, will impose your own opinions and experience on an analysis like this: “Actually, I already know Ctrl-Y, and I’ll never need to get external data.” And that helps filter out even more items, leaving you with an even more manageable list.

How would you apply this to your working, learning life? You probably don’t want to learn only about spreadsheeting, and you’re unlikely to have the kind of data we’ve used above at your fingertips. But you may have an idea of some of the skills you’d like to acquire or develop.

Consider the mix of activities in your working day. What would help you the most? Finally being able to use Photoshop, getting a grip on Agile or Waterfall, learning to write more clearly? Are there meta-skills that would help you do all of these things better — like coming across the way you intend to in meetings, or learning to manage your time more productively? You could assign approximate scores for time (to learn) and utility for each of these and plot a scatter chart like the one above. Or you could just estimate: Classify the skills on your list as either low or high in utility and time to learn, and place them in the corresponding quadrant. Either way, what shows up in the bottom-right quadrant? You may discover some learning bargains.

You can use this approach just for yourself, or across a team, department, even your entire company. Since you probably don’t have much time to learn, learn to make the most of what you have.

 

S+B: Three Promises Every Sales Team Needs to Make — and Keep

Are you focusing on what matters to your customers? Are you providing value to build profitable, lasting relationships? Below is a blog from s+b Blogs by Elizabeth Doty:

Three Promises Every Sales Team Needs to Make — and Keep

Customer loyalty has always been the holy grail of organic growth. The fastest way to increase revenue and margin is not to push sales and marketing teams to land new customers, but to stop leaking customers. In their classic study, W. Earl Sasser Jr. and Frederick F. Reichheld found that reducing customer churn by just 5 percent could increase profitability between 25 and 85 percent, depending on the industry. Loyal, satisfied customers usually cost less to serve, are willing to pay for quality, bring more of their business your way, and are more likely to refer other customers.

Today, however, as the sales model shifts further toward subscription-based services, longer-term relationships have become more critical than ever before. Under a traditional, product-driven model, suppliers receive all their revenue up front. But with subscription-based services, customers pay as they go and can usually switch suppliers easily. In many cases, accounts are not profitable for suppliers until the second year. This means suppliers need to ensure they keep customers happy just to maintain their revenue streams over time.

To reduce customer churn, many experts promote techniques for convincing unhappy customers to stay. But what they should be asking is: Why do customers want to leave in the first place? Often, it’s because they feel the company has not delivered the value that was promised. Despite the current focus on continual innovation, what customers tend to value most is reliability, as Reg Price and Don Schultz wrote about in their book, Reliability Rules: How Promises Management Can Build Your Company Culture, Bid Your Brand, and Build Your Bottom Line (Racom Communications, 2009). And, as marketing legend Christian Grönroos has explained, building relationships requires making and keeping promises throughout the process of engaging your customer. The next logical question thus becomes: Who makes promises on behalf of your firm?

Ultimately, it’s your own salespeople who are responsible for your company’s promises. Marketing may craft your brand promise, but your sales team makes the commitments that count for specific customers — what your company will deliver, when, and with what level of quality. In the past, faced with pressure to meet a quota, salespeople might have been tempted to say whatever they thought it would take to close a deal, then move on to the next customer. But sales strategy expert Steve Thompson, who coaches both buying and selling organizations, suggests that “in a world of relationships, a different kind of salesperson succeeds.”

To win in this new world, sales teams need to focus on whether customers are receiving the value promised — and whether their firm is getting credit for the value delivered. Thompson proposes three specific promises that can help any direct-sales business build longer-term relationships.

  1. “I will focus on what matters to you.” The sales process begins with an exploration. What outcomes are your customers trying to achieve? How will they measure success? Without this context, you cannot advise them on the right solution. Unfortunately, customers often find this exploratory phase frustrating. They invest time and share information, but too often, reps do not listen or focus only on the products or services they want to sell. In this type of situation, you can differentiate yourself by taking a serious interest in your customer’s business and aiming to create value throughout the sales process. Thompson explains that “90 percent of the time, the buying organization isn’t clear about what they need. Right off the bat, a sales team can create significant value by helping them clarify their needs.” And if their desired outcomes are not ones you can deliver, you build credibility by telling them who may be able to.
  2. “I will craft the right deal.” The next phase involves crafting and presenting the right solution, and negotiating an agreement. “When salespeople focus on features, the discussion often devolves to price,” warns Thompson. “We turn our products and services into commodities by the way we sell them.” Instead, design a few possible solutions, each tied to a customer outcome. Make sure you can articulate exactly how each component is necessary. Then ask the buyer: Which option do you like best? How could it be improved? Now you are negotiating, but not as opponents. As you work together to adapt your solutions to their priorities, they will gain confidence that you can deliver, and pricing will be based on a win-win division of value. Crafting deals in this way also helps suppliers avoid the need to discount to close a sale to meet a quarterly deadline. For example, as one sales manager told me, “Our most successful sales reps are focused on the customer. These reps do not rush to recommend products until they are sure they would truly meet the customer needs. They are in it for the long term. And that means they can set their own prices.”
  3. “We will focus on delivering these outcomes.” If you want to keep a customer for life, stay invested after the deal closes. This is the moment when most sales reps move on to the next prospect, leaving customers anxious about whether they made the right decision, and operations staff in the dark about the details of delivery. The sales team, which consists of your organization’s promise-making units, needs to be joined at the hip with the delivery team, your promise-keeping units. The sales team, your organization’s promise-making arm, needs to be joined closely to the delivery team. Sales staff can dramatically improve delivery reliability by involving service staff early in the process, which helps service staff know the customer and why they are buying. Once you have delivered, you solidify the relationship by self-reporting on the outcomes achieved. This demonstrates accountability and protects the buyer from a superior who might ask, “What did you spend all that money on?”

Focusing on what matters to your customer, crafting a deal you can deliver on, and providing outcomes all help you build profitable, lasting relationships. Of course, sales teams alone cannot make this shift. It requires organizational changes in management focus, delivery processes, and technology tools — with an eye toward customer retention, revenue, and relationships, not just costs. Sales compensation may also need to change, to reward reps for the long-term relationships they develop. Moreover, as your company delivers more reliably and self-reports, you earn the right to ask customers about new needs. “There is a whole lot of sales pipeline sitting there that companies don’t know about, because buying organizations are not voluntarily offering up the information,” laments Thompson. What richer source of leads could there be than your own happy customers?

 

Hillbilly Elegy

Hillbilly Elegy: A Memoir of a Family and Culture in Crisis by J.D. Vance is funny and deeply moving. He also talks about the struggles growing up as part of the in Appalachian working class. I would recommend this book to anyone. Below is an excerpt:Hillbilly elegy.jpg

Hillbilly Elegy

Today downtown Middletown is little more than a relic of American industrial glory. Abandoned shops with broken windows line the heart of downtown, where Central Avenue and Main Street meet. Richie’s pawnshop has long since closed, though a hideous yellow and green sign still marks the site, so far as I know. Richie’s isn’t far from an old pharmacy that, in its heyday, had a soda bar and served root beer floats. Across the street is a building that looks like a theater, with one of those giant triangular signs that reads “ST___L” because the letters in the middle were shattered and never replaced. If you need a payday lender or a cash-for-gold store, downtown Middletown is the place to be.

Not far from the main drag of empty shops and boarded-up windows is the Sorg Mansion. The Sorgs, a powerful and wealthy industrial family dating back to the nineteenth century, operated a large paper mill in Middletown. They donated enough money to put their names on the local opera house and helped build Middletown into a respectable enough city to attract Armco. Their mansion, a gigantic manor home, sits near a formerly proud Middletown country club. Despite its beauty, a Maryland couple recently purchased the mansion for $225,000, or about half of what a decent multi-room apartment sets you back in Washington, DC.

Located quite literally on Main Street, the Sorg Mansion is just up the road from a number of opulent homes that housed Middletown’s wealthy in their heyday. Most have fallen into disrepair. Those that haven’t have been subdivided into small apartments for Middletown’s poorest residents. A street that was once the pride of Middletown today serves as a meeting spot for druggies and dealers. Main Street is now the place you avoid after dark.

This change is a symptom of a new economic reality: rising residential segregation. The number of working-class whites in high-poverty neighborhoods is growing. In 1970, 25 percent of white children lived in a neighborhood with poverty rates above 10 percent. In 2000, that number was 40 percent. It’s almost certainly even higher today. As a 2011 Brookings Institution found, “compared to 2000, residents of extreme-poverty neighborhoods in 2005-09 were more likely to be white, native-born, high school or college graduates, homeowners, and not receiving public assistance.”  In other words, bad neighborhoods no longer plague only urban ghettos; the bad neighborhoods have spread to the suburbs.

This has occurred for complicated reasons. Federal housing policy has actively encouraged homeownership, from Jimmy Carter’s Community Reinvestment Act to George W. Bush’s ownership society. But in the Middletowns of the world, homeownership comes at a steep social cost: As jobs disappear in a given area, declining home values trap people in certain neighborhoods. Even if you’d like to move, you can’t, because the bottom has fallen out of the market-you now owe more than any buyer is willing to pay. The costs of moving are so high that many people stay put. Of course, the people trapped are usually those with the least money; those who can afford to leave do so.

City leaders have tried in vain to revive Middletown’s downtown. You’ll find their most infamous effort if you follow Central Avenue to its end point on the banks of the Miami River, once a lovely place. For reasons I can’t begin to fathom, the city’s brain trust decided to turn our beautiful riverfront into Lake Middletown, an infrastructural project that apparently involved shoveling tons of dirt into the river and hoping something interesting would .come of it. It accomplished nothing, though the river now features a man-made dirt island about the size of a city block.

Efforts to reinvent downtown Middletown always struck me as futile. People didn’t leave because our downtown lacked trendy cultural amenities. The trendy cultural amenities left because there weren’t enough consumers in Middletown to support them, And why weren’t there enough well-paying consumers? Because there weren’t enough jobs to employ those consumers. Downtown Middletown’s struggles were a symptom of everything else happening to Middletown’s people, especially the collapsing importance of Armco Kawasaki Steel.

 

HBR: Become a Better Listener by Taking Notes

Are you taking notes during meetings? Sabina explains why taking notes makes you a better listener. Meeting notes will help you make better decisions. Below is a blog from the Harvard Business Review by Sabina Nawaz:

Become a Better Listener by Taking Notes

Team dynamics can make or break a meeting. Have you ever been in a meeting where people interrupt each other, introduce new ideas when they should be building on the conversation, and repeat someone else’s point just to be heard? These communication issues waste time and energy, and usually lead to more meetings to correct misunderstandings, reiterate decisions, or soothe hurt feelings and interoffice tensions.

But there is one thing you can do that can make a significant difference to improving the quality of time you spend in meetings: Listen. By improving the way you listen and understand others in meetings, you can make that time more productive by reducing repetition and misunderstandings.

If simply listening can solve so many problems, why is it so hard to practice? One reason is we’re listening to interrupt with our ideas or rebuttals. We listen so we can jump in with our perspective. Or we’re worried we’ll forget what we want to say if we listen for too long. We focus on our own communication, rather than listening to understand others.

Through my work with executive teams, I’ve developed a simple technique that can help anyone listen more effectively in meetings. I call it Margin Notes. You may already take notes during meetings, but unless you’re using them wisely to understand others and plan your response, you may still fall into the same trap of speaking before you think. Margin Notes allows you to think, process information, make connections between points of discussion, and ask effective questions instead of blurting out the first thing that comes to mind.

Here’s how it works:

  • Set your page with a wide margin and take notes when someone else is talking. In the main body of your notes, capture only what the other person is saying. These don’t have to be verbatim; just jot down the key points. You can accurately quote individuals later.
  • In the margin, capture your ideas, judgments, rebuttals, and questions to each of the points you’ve written down. By marking them to the side, you separate your own thoughts from what others say. It lets you set aside (literally) your own voice and gives you space to listen to others. For example, when your boss excitedly outlines idea after idea for a product launch, you might note in the margin, “Ask about budget” or “Remind about CEO memo.”
  • When you speak, only bring up items from your Margin Notes that haven’t already been addressed and are the highest priority, and cross them off as you go. If you’re unable to raise some topics during the meeting and the items are important to you, tag them for follow-up.

For example, Ari is chief of staff to Brenda, the CEO of a 200-person scientific organization that was struggling. Its main source of funding had been favoring its competitor, and some key people had left to start their own ventures. Tensions were high, and some of the remaining team members were trying to one-up each other in discussions. Others were desperate to take any action as soon as possible. The ensuing miscommunications, high-stakes decisions, and panic led to conflict and unproductive meetings.

Brenda gathered her direct reports to discuss how they might sharpen their efforts in the face of dwindling resources. Ari took these notes following the Margin Notes model:

***

Ari assessed his Margin Notes and focused his questions during the meeting on the most important issues he had jotted down: What are the decision criteria for budget cuts, and should cuts be spread across projects, rather than cutting projects in their entirety? He waited until the end of the meeting to also ask about cuts in infrastructure and marketing.

Then, in a one-one-one with Brenda, Ari tackled some of his other concerns: “We’re an action-driven culture. Do we need to slow down? Do we lose possibilities by not questioning assumptions?” He also noted, “The team doesn’t question you; they just jump into action. Are we relying too much on your judgment alone? Should some of these decisions be passed on to others in the team?” Lastly, Ari observed, “I worry we may not be fostering a culture of healthy conflict. Jennifer seems nervous whenever Josh and John seem to argue, and tends to turn to your guidance.” There were also several points that Ari chose not to raise because they were low priority at the moment. He marked these comments, so if they continued to be an issue, he could raise them later.

Ari’s Margin Notes enabled him to make a considered decision on how to guide the conversation more strategically toward business outcomes, rather than further fuel the competition between John and Josh. He was then helpful to Brenda by reflecting some of the dynamics he observed in a separate meeting. This allowed Brenda to approach the next meeting’s agenda more thoughtfully and adjust her own behavior. Based on Ari’s comments about the team’s culture, at their next leadership team retreat, Brenda facilitated a discussion about their implicit cultural norms. They collectively brainstormed changes to become a higher functioning team during these lean times.

As you take these notes, don’t just write down the facts of the discussion. Here are some things to consider when taking Margin Notes so you can listen better:

  • Write down themes from your main notes. When you listen across topics, what is a common theme? How are they related to each other? What’s the bigger story they’re telling? For Ari, his observation about culture was one of these themes.
  • Capture questions and flag them to ask at the appropriate time. Ari held off on asking the question about cuts across infrastructure and marketing in addition to projects until the end of the meeting so as not to take the focus off the hard trade-offs that needed to be made on projects first. He also took some of the personal dynamics to a private one-on-one with Brenda, rather than openly critiquing other team members in the meeting. This helped him to avoid calling out or embarrassing his colleagues, while also providing an opportunity for Brenda to create conditions for better communication in future meetings.
  • Test assumptions. When someone makes a general statement for the first time in a meeting, examine it from all angles before considering action. Ari considered several assumptions about how the budget cuts could be implemented and whether there were ways to expand funds instead of simply cutting the budget.
  • Pay attention to what’s not said. There’s rich data in both what’s unsaid and what is said nonverbally. In Ari’s case, he noticed that no one asked questions or challenged assumptions; they immediately jumped into discussing specific projects and implementing the budget cut. What’s more, he observed some nonverbal behaviors. When John and Josh talked about their projects, they made eye contact with only Brenda and never looked at each other or other team members. It made Ari wonder if John and Josh were competing to lobby Brenda to consider the merits of their projects over others. He decided to raise this concern with Brenda separately so she could look deeper into these projects.
  • Be discerning about what you ultimately share. You don’t have to share everything from your Margin Notes, especially in a meeting setting. Ari simply asked three questions which shifted the tone of the session. He later followed up privately with Brenda about some of his other concerns, and noted some points that could wait until high-priority items had been completed.

 

Capturing others’ words helps you track what they’re saying, and by writing down your thoughts next to each point, you can ensure you won’t forget important follow-ups while still digesting the conversation. Allowing yourself to listen more deeply to meetings gives you the opportunity to connect the dots, present your ideas more convincingly, and get more real work done in meetings.

Irresistible

Irresistible: The Rise of Addictive Technology and the Business of Keeping Us Hooked by Adam Alter explores behavioral addiction, how it compares to substance addiction and what causes it. There’s a good mix of research and anecdotes in this book. Below is an excerpt from the book that you might find useful:

IrresistibleIrresistible.jpg

Gamification is a powerful tool, and like all powerful tools it brings mixed blessings. On the one hand, it infuses mundane or unpleasant experiences with a measure of joy. It gives medical patients respite from pain, schoolkids relief from boredom, and gamers an excuse to donate to the needy. By merely raising the number of good outcomes in the world, gamification has value. It’s a worthwhile alternative to traditional medical care, education, and charitable giving because, in many respects, those approaches are tone-deaf to the drivers of human motivation. But Ian Bogost was also wise to illuminate the dangers of gamification. Games like FarmVille and Kim Kardashian’s Hollywood are designed to exploit human motivation for financial gain. They pit the wielder of gamification in opposition to the gamer, who becomes ensnared in the game’s irresistible net. But, as I mentioned early in this book, tech is not inherently good or bad. The same is true of gamification. Stripped of its faddish popularity and buzzwordy name, the heart of gamification is just an effective way to design experiences. Games just happen to do an excellent job of relieving pain, replacing boredom with joy, and merging fun with generosity.