HBR: What Most Companies Miss About Customer Lifetime Value

Are you measuring your customers’ lifetime value? Are you investing in and enabling customer capabilities? Below is a blog from the Harvard Business Review by Michael Schrage.

What Most Companies Miss About Customer Lifetime Value

For managers and marketers alike, the power to calculate what customers might be worth is alluring. That’s what makes customer lifetime value (CLV) so popular in so many industries. CLV brings both quantitative rigor and long-term perspective to customer acquisition and relationships.

“Rather than thinking about how you can acquire a lot of customers and how cheaply you can do so,” one marketing guide observes, “CLV helps you think about how to optimize your acquisition spending for maximum value rather than minimum cost.” By imposing economic discipline, ruthlessly prioritizing segmentation, retention, and monetization, the metric assures future customer profitability is top of mind.

For all its impressive strengths, however, CLV suffers from a crippling flaw that blurs its declared focus. The problem is far more insidious than those articulated in venture capitalist Bill Gurley’s thoughtful CLV vivisection. In fact, it subverts how customers truly become more valuable over time.

When my book Who Do You Want Your Customer To Become? was published, five years ago, its insight was that making customers better makes better customers. While delighting customers and meeting their needs remain important, they’re not enough for a lifetime. Innovation must be seen as an investment in the human capital and capabilities of customers.

Consequently, serious customer lifetime value metrics should measure how effectively innovation investment increases customer health and wealth. Successful innovations make customers more valuable. That’s as true for Amazon, Alibaba, and Apple as for Facebook, Google, and Netflix. No one would dare argue that these innovators don’t understand, appreciate, or practice a CLV sensibility.

Pushing organizations to rethink how they add value to their customers stimulates enormously productive discussion. A fast, cheap, and easy exercise for clarifying the innovation investment approach emerged when I operationalized my book’s principles. The simple but provocative tool generates actionable insights. Having facilitated scores of workshops around it worldwide, I know it gets results.

Ask people to complete this sentence: ”Our customers become much more valuable when…”

The immediate answers tend to be predictable and obvious. For example, customers become much more valuable when “they buy more of our stuff” or “they pay more” or “they reliably come back to us” or “they’re loyal to our brand.”

There are no prizes for recognizing that these initial responses reflect the variables that go into computing traditional CLVs. While everyone agrees these things are important, participants in the exercise quickly recognize how limited, and limiting, those instant answers are.

It doesn’t take long before the answers start to incorporate an investment ethos that sees customers more as value-creating partners than as value-extraction targets. For example:

Our customers become much more valuable when…

  • they give us good ideas
  • they evangelize for us on social media
  • they reduce our costs
  • they collaborate with us
  • they try our new products
  • they introduce us to their customers
  • they share their data with us

Almost without exception, these follow-on answers are disconnected from how the firm calculates customer lifetime value. But, almost without exception, these responses push people to revisit and rethink how customer value should be measured. At one company the immediate response was to look for correlations between CLV and net promoter score. At another, the conversation led to discovering a core group of top-quintile CLV clients, who served as essential references for closing deals with firms identified as top-decile CLV clients. Those reference firms instantly won renewed attention and special treatment.

The more diverse and detailed the answers, the more innovative and insightful the customer investment. The most-productive conversations came from cross-functional, collaborative interaction — not just from marketing, R&D, or business unit leaderships.

For example, for a global industrial equipment provider, customers became more valuable when they performed more self-service diagnostics and shared that information with the firm. That led directly to the firm’s technical services teams offering cloud-connecting APIs and SDKs that let customers customize remote diagnostic gateways for their equipment. Customers embracing self-diagnostics inherently boosted their CLV. Not incidentally, information access swiftly redefined how the company qualified prospects and computed lifetime customer value.

By investing in and enabling new customer capabilities, firms create new ways for customers to increase their lifetime value. Making customers better truly does make for better customers.

But in keeping with the segmentation spirit of CLV, the question can easily be edited and modified to produce targeted insights. For example, at one workshop we used two versions of the sentence: “Our best customers become much more valuable when…” and “Our typical customers become much more valuable when…”

The innovation investment insights for one’s best customers proved qualitatively and quantitatively different from those for one’s typical customers. Forcing people to rigorously define the distinctions between typical and best frequently leads to even greater creativity around customer value.

My favorite CLV vignette emerged from a session at a global financial services giant in London. As the responses grew longer, richer, and more detailed, one of the participants called attention to an interesting fact. Some of the answers, he observed, began with “we,” as in, “Our customers become much more valuable when we do something.” The others, however, began with “they,” as in, “Our customers become much more valuable when they do something.”

“What is the difference between the potential customer lifetime value when we do something versus when they do it?” he asked. After a few moments of silence, the conversation went to a whole other level of engagement, around how the firm wanted to engage with and invest in its customers.

The best investment you can make in measuring customer lifetime value is to make sure you’re investing in your customers’ lifetime value.

HBR: What Creativity in Marketing Looks Like Today

“The changes happening in consumer behavior, technology, and media are redefining the nature of creativity in marketing. Do these changing roles require a new way of thinking about creativity in marketing?” Below is a blog from the Harvard Business Review by Mark Bonchek and Cara France:

What Creativity in Marketing Looks Like Today

What makes marketing creative? Is it more imagination or innovation? Is a creative marketer more artist or entrepreneur? Historically, the term “marketing creative” has been associated with the words and pictures that go into ad campaigns. But marketing, like other corporate functions, has become more complex and rigorous. Marketers need to master data analytics, customer experience, and product design. Do these changing roles require a new way of thinking about creativity in marketing?

To explore this question, we interviewed senior marketing executives across dozens of top brands. We asked them for examples of creativity in marketing that go beyond ad campaigns and deliver tangible value to the business. Their stories — and the five wider trends they reflect — help illustrate what it means to be a creative marketer today.

  1. Create with the customer, not just for the customer

Everyone likes to talk about being “customer-centric.” But too often this means taking better aim with targeted campaigns. Customers today are not just consumers; they are also creators, developing content and ideas — and encountering challenges — right along with you. Creativity in marketing requires working with customers right from the start to weave their experiences with your efforts to expand your company’s reach.

For example, Intuit’s marketing team spends time with self-employed people in their homes and offices to immerse themselves in the customer’s world. Through this research, they identified a pain point of tracking vehicle gas mileage. Based on these marketing insights, Intuit created a new feature within its app that combines location data, Google maps, and the user’s calendar to automatically track mileage and simplify year-end tax planning.

Brocade, a data and network solutions provider, created a “customer first” program by identifying their top 200 customers, who account for 80% of their sales. They worked with these customers to understand their sources of satisfaction and identify areas of strengths and weakness. Brocade then worked with sales teams to create and deliver customized packages outlining what Brocade heard is working or not working, and what they would do about those findings. Later, Brocade followed up with these customers to report on progress against these objectives. The results? Brocade’s Net Promoter Score went from 50 (already a best in class score) to 62 (one of the highest B2B scores on record) within 18 months.

  1. Invest in the end-to-end experience

Every marketer believes the customer experience is important. But most marketers only focus on the parts of that experience under their direct control. Creative marketers take a broader view and pay attention to the entire customer experience from end to end. This includes the product, the buying process, the ability to provide support, and customer relationships over time. That takes time and resources – and it also requires bringing creative thinking to unfamiliar problems.

Kaiser Permanente believes that as health care becomes more consumer-oriented, the digital experience becomes a key differentiator. The marketing team instituted a welcome program to help improve the experience for new plan members. Members are guided on how to register for an online member portal, which provides access to email your doctor, refill prescriptions, make appointments, and more. The welcome program required coordination with many areas of the business. As a result of this program, about 60% of new members register within the first six months. These members are 2.6 times more likely to stay with Kaiser Permanente two years later.

Like many retailers, Macy’s has traditionally spent 85% of its marketing budget on driving sales. Each outbound communication is measured individually for immediate ROI. However, recently they began to take a more holistic approach, focusing on lifetime value and their most profitable segment, the “fashionable spender.” This group looks across the business to gather behind-the-scenes information on the runway, newest clothing lines, and aspirational fashion content. The metrics also changed. Macy’s started evaluating engagement per customer across time and platform instead of per marketing message per day. The results? In the last year, customers in the top decile segment increased digital engagement by 15%, cross shopping by 11% and sales by 8%.

  1. Turn everyone into an advocate

In a fragmented media and social landscape, marketers can no longer reach their goals for awareness and reputation just through paid media and PR. People are the new channel. The way to amplify impact is by inspiring creativity in others. Treat everyone as an extension of your marketing team: employees, partners, and even customers.

Plum Organics gives each employee business cards with coupons attached. While shopping, all employees are encouraged to observe consumers shopping the baby category. When appropriate, they ask a few questions about shoppers’ baby food preferences and share business cards with coupons for free products as a gesture of appreciation.

For Equinix, surveys revealed that a third of employees were not confident explaining its company story. The company introduced an internal ambassador program for its more than 6,000 employees. This program gives employees across all disciplines and levels tools to educate them on the company, its culture, products and services, and how they solve its customer’s needs. More than 20% of employees took the training online or in workshops in the first few months of the program, and employee submissions to its sales lead and job candidate referral programs were up 43% and 19% respectively.

Old Navy has traditionally dedicated their media budget to TV, particularly around back to school. However, over the past few years, they’ve focused on digital content to engage kids around positive life experiences and giving back. Through this approach, the 2016 #MySquadContest led to 32,000 kids sharing their “squads” of friends for a chance to win an epic day with their favorite influencer, creating 3 million video views, a 60% increase in social conversation about @OldNavy, and a 600% increased likelihood of recommending Old Navy to a friend (versus those that viewed TV ads only). In addition, the program led to record breaking donations for their partner, The Boys & Girls Club.

  1. Bring creativity to measurement

The measurability of digital engagement means we can now know exactly what’s working and not working. This gives marketing an opportunity to measure and manage itself in new ways. In the past, marketing measured success by sticking to budgets and winning creative awards. Today, the ability to measure data and adjust strategies in real-time enables marketing to prove its value to the business in entirely new ways.

Cisco has created a real-time, online dashboard where the entire marketing organization can look at performance. The leadership team conducts a weekly evaluation to assess, “Is what we’re doing working?” This analysis can be done across different digital initiatives, geographies, channels, or even individual pieces of content. The result is an ability to quickly adjust and re-allocate resources.

Zscaler, a cloud-based security platform for businesses, created a Value Management Office. The Office helps each client define, quantify, and track their unique business goals associated with Zscaler implementation. Zscaler and their clients hold each other accountable to specific, measurable, time-based results.

OpenTable recently launched a companion app just for restaurants to make better use of the data they’ve been collecting through their reservation system. Restauranteurs can now get a handle on their business right from their smartphone, allowing them to easily answer questions like “How did your last shift perform?” The app can tell them if they are running light on bookings, and soon they’ll be able to activate marketing campaigns to increase same day reservations. More than 50% of restaurant customers on OpenTable’s cloud-based service are already using the app, visiting an average of 9 times a day, 7 days a week.

  1. Think like a startup

In the past, marketers needed to be effective managers, setting goals well in advance and then working within budget to achieve those goals. Today, creative marketers need to operate more like entrepreneurs, continuously adjusting to sustain “product/market fit.”

The start-up Checkr represents a trend we are seeing more of in the Bay Area in particular. Marketers are adopting the business practices of entrepreneurs such as lean startup and agile development. For its background check solution, Checkr wasn’t getting the results it wanted from traditional sales and marketing tactics as it expanded into new market segments. They realized they had to think beyond marketing as promoting an existing product. Adopting an agile method of customer testing and rapid iteration, they worked with engineering to rethink the product and bring a “minimum viable product” to market for these new buyers. As a result of this integrated, agile approach, the company easily hit some early 2017 revenue targets with conversion rates that are four times what is traditionally seen in the industry.

 

The changes happening in consumer behavior, technology, and media are redefining the nature of creativity in marketing. The measure of marketing success isn’t the input, whether that’s the quality of a piece of content or a campaign, but rather the value of the output, whether that’s revenue, loyalty, or advocacy. Marketers of the past thought like artists, managers, and promoters. Today’s marketers need to push themselves to think more like innovators and entrepreneurs — creating enterprise value by engaging the whole organization, looking out for the entire customer experience, using data to make decisions, and measuring effectiveness based on business results.

 

 

Original Page: https://hbr.org/2017/03/what-creativity-in-marketing-looks-like-today

 

 

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.

HBR: Sales Reps, Stop Asking Leading Questions

What is your approach to selling? Do you use a consultative sales approach? Below is a blog from the Harvard Business Review by Scott Edinger.

Sales Reps, Stop Asking Leading Questions

Most executives recognize a need for their sales team to act as consultants and sell “solutions.” But many CEOs would be shocked at how poorly their sales teams execute on the strategy of consultative selling. I recently had a conversation about this with the director of purchasing at one of my client companies who told me: “I can always tell when a rep has been through sales training, because instead of launching in to a pitch, they launch into a list of questions.” Too often, sales teams trying to “do” consultative selling don’t move beyond the rudimentary application of solution-sales principles: “Get the team to ask questions, and then match our capabilities to what the client has said.” So the sales force sits down and makes a list of questions designed to extract information from their prospective clients, in a kind of interrogation. I’ve sat through many sales calls like this, and trust me it isn’t pretty.

To maximize the power of consultative selling, we have to move beyond a simplistic view of solution selling. It’s not about grilling the buyer but rather engaging in a give-and-take as the seller and buyer explore the client’s priorities, examine what is in the business’s best interests, and evaluate the seller’s solutions. Asking questions is part of this engagement process, but there’s a right way to do it. Here are some important pitfalls to avoid:

Avoid checklist-style questioning. A few years ago I was working with a financial services firm that hadn’t seen much success in adopting a solution sales approach. When I watched a few meetings it was easy to see why. The sellers I traveled with did a decent job of asking questions and getting answers, but it felt more to me (and to the prospects, based on their responses and disposition) like they were going through a checklist. As a result, their sales calls felt mechanical and staid. While they gleaned some good information about clients’ needs, allowing them to dovetail the products they were selling into the conversation, there was little buy-in from the prospects they were talking to. There was no sense of shared understanding or that the client had confidence that the seller would be able to help them grow their business. I’ve observed this scenario with both beginner and experienced sellers, as well as senior partners in Big Four consulting firms: when they focus solely on asking questions, they rarely get the information they really need.

Avoid asking leading questions. Nothing falls flatter in a sales call than a question that is clearly self-interested, or makes the seller the master of the obvious. I joke about this in speeches using the example: “If I could show you something interesting, would you be interested?” The kind of questions sales professionals are taught to ask typically focus on drawing attention to client problems, pain points, and sources of dissatisfaction, so the client will then view the seller’s offerings as a solution. It can be useful to explore the buyer’s challenges, but when a seller asks a ridiculous question with an obvious answer such as, “What’s the implication of data center failure?” it can backfire. It’s counterproductive to ask patently manipulative questions because buyers immediately put up their defenses and will be skeptical of the seller’s intentions – and intelligence. Instead, ask questions that demonstrate genuine curiosity, empathy, and a desire to understand. Try to go deeper than uncovering a list of problems to be solved: ask what the buyer hopes to achieve with your product or service, and why this is a priority now.

Avoid negative conversational behaviors. When sellers are myopically focused on persuading a prospect or winning a piece of business, it creates a negative vibe in the relationship. In fact, when we look at what happens in the brain during this kind of one-sided selling interaction, we find that buyers may experience that negativity at a chemical level. In her article, “The Neurochemistry of Positive Conversations,” Judith Glaser highlights specific behaviors that contribute to negative chemical, or “cortisol-producing,” and positive chemical “oxytocin-producing” reactions in others. Among the behaviors that create significant negative impacts are being focused on convincing others and behaving like others don’t understand. Precisely the stereotypical behaviors that give sellers a bad name: being too aggressive, not listening, and going on and on about their offerings. Conversely, the behaviors that create a positive chemical impact include being concerned about others, stimulating discussions with genuine curiosity, and painting a picture of mutual success. Masters of the consultative sales approach apply these conversational techniques to their discussions with prospects and clients to create a collaborative dynamic with positive outcomes.

 

The consultative sales approach may seem simple, but it isn’t easy to execute well. Sales people cannot just go to training for a few days and gain mastery of this skill set, any more than an accountant going to a week-long course can emerge with the skills of a CFO. Consultative selling is a fundamental business strategy centered on creating value through insight and perspective that paves the way toward long-term relationships and genuine solutions for your customers. When sellers do it right, that strategy comes to life.

 

HBR: Organizing a Sales Force by Product or Customer, and other Dilemmas

Sales can be full of double-edged swords. How do you leverage the edge you want and blunt the ones you don’t? Below is a blog from the Harvard Business Review by Andris A. Zoltners, Sally E. Lorimer, PK Sinha.

Organizing a Sales Force by Product or Customer, and other Dilemmas

HP announced in March that it was combining its printer and personal computer businesses. According to CEO Meg Whitman, “The result will be a faster, more streamlined, performance-driven HP that is customer focused.” But that remains to be seen.

The merging of the two businesses is a reversal for HP. In 2005, HP split off the printer business from the personal computer business, dissolved the Customer Solutions Group (CSG) which was a sales and marketing organization that cut across product categories, and pushed selling responsibilities down to the product business units. The goal was to give each business unit greater control of its sales process, and in former CEO Mark Hurd’s words, to “perform better — for our customers and partners.”

The choice — to build a sales organization around customers or products — has vexed every company with a diverse product portfolio. It’s not uncommon for a firm such as HP to vacillate between the two structures. And switching structures is not always a recipe for success.

Let’s rewind the clock to 2005 at HP, before the CSG was eliminated. Most likely, those responsible for the success of specific products (say printers) were often at odds with the CSG. The words in the air may have been something like “Printers bring in the profits, and our products are not getting enough attention” or “The CSG people want customer control, but we have the product expertise.” And from the CSG sales team, we can imagine the feelings, “We are trying to do the best for HP and for customers. The printing people are not being team players.”

Especially when performance lags, people in any sales structure see and feel the disadvantages and stresses that their structure creates. But they often see only the benefits of the structure that they are not operating in. The alternative looks enticing. Unreasonably so.

HP’s dilemma illustrates one of many two-edged swords of sales management. These swords are reasonable choices that sales leaders make that have a sharp beneficial edge, but the very nature of the benefit is tied to another sharp edge that has drawbacks. Unless the undesirable edge is dulled, the choice cannot work.

Consider a choice like the one HP made recently to organize its sales force by customer rather than by product.

  • The beneficial edge: Salespeople can understand the customer’s total business, can cross-sell and provide solutions (not just products), and can act as business partners rather than vendors for their customers.
  • The undesirable edge: Salespeople will have less product expertise and focus. And it will be difficult for the company to control how much effort each product gets.
  • Dulling the undesirable edge: The company could create product specialists to assist customer managers (although this would add costs and coordination needs, and would work only if salespeople and the culture were team-oriented). It could also use performance management and incentives to manage effort allocation.

    Sales is full of such double-edged swords. For example:

  • If you hire mostly experienced people, they will become productive rapidly. But they will come with their own ways to do things and may have trouble fitting into the new environment.
  • If you drive a structured sales process through the organization, things will be more transparent and organized, and coordination across people will be easier. But out of the box thinking will be diminished, and managers might use the defined structure to micro-manage their people.
  • If you give salespeople customer ownership and pay them mostly through commissions, you will attract independent, aggressive salespeople and encourage a performance-oriented culture. But this will discourage teamwork and create a brittle relationship based mostly on money.

The effective sales leader recognizes the two edges of each of these (and other) choices. He or she works to sharpen and leverage the good edge, while dulling the impact of the other edge. The overly optimistic leader who sees the benefits of only one choice will lead his or her sales force into peril!

We have offered a few examples of double-edged swords of sales management. There are many, many more. Do add to our list, and tell us how you leverage the edge you want, and blunt the one you don’t.

 

HBR: 3 Ways to Make Time for the Little Tasks You Never Make Time For

How do you handle your low-value work? Below is a blog from the Harvard Business Review by Dorie Clark.

3 Ways to Make Time for the Little Tasks You Never Make Time For

We’d all like to spend our time at work on high-value activities: setting strategy, fostering innovation, mentoring promising employees, and more. But every professional faces a relentless deluge of niggling tasks — the overflowing inbox, the introductions you promised to make, the stack of paperwork you have to file, or the articles you really ought to read.

This low-value work is particularly vexing in light of the Pareto Principle, the adage — now gospel in Silicon Valley and many business circles — that 20% of your activities are responsible for 80% of the value you create. If you can jettison what’s least important, the thinking goes, you can double down on what’s driving your most important contributions.

Indeed, sometimes you can let go of these activities. But you have to recognize, and reconcile yourself to the fact, that there is a price. Tim Ferriss, author of the bestseller The 4-Hour Workweek, advocates this approach. After one extended trip abroad during which he avoided email, he wrote that he had missed a large number of critical messages, including a fulfillment center crisis that caused him to lose more than 20% of monthly orders for his business, media interview opportunities that had expired, and more than a dozen partnership offers. Rather than mourning these lost chances, however, he embraced them. “Oftentimes,” he wrote, “in order to do the big things, you have to let the small bad things happen. This is a skill we want to cultivate.”

Perhaps. Though if you work for someone else, rather than being self-employed, the tolerance level for these missed opportunities is a lot lower. If you can’t afford to ignore email or other low-value tasks entirely, and your options for delegating to others are limited, here are three techniques you can use to minimize the pain and get things done.

One possibility is to batch your less important tasks and accomplish them in one fell swoop, creating a sense of momentum. You can do this solo — I used to park myself at a local café and vow not to come home until I’d completed my to-do list for the day — or, in some cases, communally. New York filmmaker Jeremy Redleaf recently launched “Cave Day,” an event in which professionals pay a small fee to spend a Sunday at a coworking facility, plowing through tasks such as cleaning your inbox and writing thank you cards.

Another technique, for those who prefer an incremental approach, is the “small drip strategy.” This involves identifying small blocks of time in your schedule (typically 15–30 minutes per day) and matching them with low-value tasks that need to be accomplished. Yesterday I had to look up how much I had paid my virtual assistant last year in order to get the information to my accountant, so he could issue her tax forms in a timely fashion. That’s no one’s definition of “strategic” or “high value.” It’s a boring, but mandatory, task that would be easy to put off. But when I reviewed my calendar the night before and saw I had a 15-minute window between two calls, I slotted it in and accomplished it. You can look for these scheduling holes serendipitously, or deliberately schedule in a half-hour of grunt work every day, perhaps at the end of the workday, when most professionals’ energy is waning and your ability to do creative thinking has tapered off.

Finally, you could procrastinate strategically. This differs from simply ignoring all incoming email, Tim Ferriss–style. What you do is weigh the value of the opportunity and set your own timeline for handling it. If the timeline happens to work for the other person, it’s a happy coincidence; if it doesn’t, you’ve already reconciled yourself to the possibility of missing out. I’ll often take this approach when it comes to requests from miscellaneous bloggers. I respond quickly to inquiries from official journalists, but if someone is writing a post for their personal blog, I’d like to help them out, but don’t want to sacrifice an important task (such as finishing book edits) to do so. I always write back eventually, but it may take me a number of days, or even weeks. If they can still use my quote, fantastic; if they can’t, it’s only a minor loss.

 

No matter how productive we become, we’re never going to permanently rid ourselves of low-value work. By following these strategies, we can at least handle it more efficiently and leave more white space in our days for the projects that are truly meaningful.

HBR: Ineffective Sales Leaders Can Cause Lasting Damage

Is your vison or strategy going in the right direction? Are you retaining the right talent? Are you serving your customers? Or managing your sales team badly? Is your culture wrong for your vision and strategy? Below is a blog from the Harvard Business Review by Andris A. Zoltners, Sally E. Lorimer, PK Sinha.

Ineffective Sales Leaders Can Cause Lasting Damage

Success in a sales force requires having strong talent up and down the organization. A weak salesperson will weaken a sales territory, a bad sales manager will damage their team and dampen results in their region, and a poor sales leader will eventually ruin the entire sales force. For even the most seasoned among us, it can be difficult to recognize the signs of a poor sales leader and the possible damage the person can do — especially when they appear to do some good early on.

Consider two examples.

An education technology startup hired a sales leader who came from a large, well-respected firm. He had extensive market knowledge and a stellar track record. Although good at scaling and operating a sales organization, the leader was unable to succeed in a rapidly changing environment that needed experimentation and nimbleness. The mismatch between the startup’s need and the leader’s capabilities set progress back at least a year.

A medical device company hired a vice president of sales with an intimidating management style. He ruled by fear. Achieving goals was everything. He tolerated (and even encouraged) ethically questionable sales practices. Results looked excellent at first, but the sales culture became so unpleasant that good performers began leaving in a trickle, and then in a flood. The average tenure of salespeople dwindled to just seven months. The damage to the company continued for years after the VP was replaced.

The reasons that sales leaders fail fall into four categories:

  • Direction. Poor understanding of the business, leading to errors in vision and strategy
  • Talent. Inability to pick and keep the right people for the team
  • Execution. Poor processes serve customers and manage people badly
  • Culture. Inappropriate values damage the very core of the organization

When such failures are coupled with a leader’s egotism or lack of self-awareness, it’s unlikely that the leader can lean on others to overcome his own deficiencies.

Yet ineffective leaders can do some good in sales organizations. They can bring about needed change quickly. Leaders who lack sensitivity have an easier time eliminating poor performers. Leaders who are intimidating can use their muscle to implement difficult changes that past leaders avoided — for example, an organizational restructure that disrupts an existing power hierarchy.

But unless a poor leader can overcome or compensate for his deficiencies, eventually the bad will overpower any temporary good. A tyrant, for example, may fix some things in the short term but create other problems at the same time. For every gain, there are likely to be multiple missteps with the sales force’s vision, team, execution, and culture. A key and very visible marker of ongoing or impending trouble is when talented people on the leader’s team become frustrated and depart the company.

It can take years to repair the damage done by an ineffective sales leader.

First, it takes time to replace the leader and reconstruct the sales team. When a health care company hired the wrong leader for a sales region, it took more than three years to rebuild the team and recover from the initial error of putting the wrong person in charge.

Second, it takes time to reverse the questionable decisions that ineffective sales leaders make, especially decisions that affect sales force structure or compensation. Weak leaders at a technology company made a decision to restructure the sales organization using a model from their own past that did not match the current situation. Again, it took more than three years to undo the damage.

Third, it takes time to rebuild the culture a poor leader creates. Poor leadership at a medical device company had allowed an unhealthy “victim” culture to pervade the sales force. Salespeople had no confidence in their leaders, and managers were willing to accept salespeople’s constant excuses for poor performance.

Bringing about change required replacing the company’s president, followed by more than two years of sustained focus on transforming the sales force using the following process:

  1. Create a fresh vision, reflecting a culture in which salespeople trusted their leaders and in which all salespeople were held accountable for results.
  2. Communicate the vision using every opportunity, including sales meetings, videoconferences, and the company’s intranet.
  3. Rebuild the team starting with a new vice president of sales who had integrity and judgment, and was willing to replace anyone on the sales team who could not adapt to the new culture.
  4. Realign sales support systems and rewards by overhauling the systems for recognizing and rewarding performance and creating accountability.

These four steps are a good starting point for any company seeking to recover from poor sales leadership.

Bad sales leaders can sometimes bring about change in a broken environment and make temporary gains. But they will wreck a sales force unless they are replaced quickly.