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"How would I do this
if I were a fool?"
Herman Wouk
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for execution by idiots."
(Full Quote) On some level, he meant this as a compliment. When any system is brilliantly designed, it can be successfully run by any number of interchangeable, generic people.
On the other hand, some systems are so complicated, difficult, and illogical, you practically need to be a genius to run them. Unfortunately, many selling systems fit this category.
I'm Loving It
McDonalds illustrates this point perfectly. The typical McDonalds earns 15% operating profit selling a commodity product using minimum wage staff. The average tenure of their workers is five months.
First, let's look at what McDonalds is
NOT:
- The fastest burger chain (Wendy's is faster)
- The best tasting (Burger King beats them in blind taste tests)
- The cheapest (Many others are cheaper)
They are only the best in one category, profitability. A McDonalds franchise has been called "the closest thing in business to a license to print money". How do they pull this off?
They have the best
SYSTEM. Every process in a McDonalds is designed to be simple, easy, fast, and most importantly, executable by low wage workers. It works. You get essentially the same Big Mac if you buy one in San Francisco, Miami, Boston, or Tokyo.
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| JMU Grad: "You want fries with that?" |
You think the "Value Meals" are there to help you save money on meals? No way! They are designed to help "Einstein" behind the cash register type in your order faster and more accurately. Most of these kids can't even make change without help, let alone punch in a meal with more than three items.
How Good it Your Sales System?
Here's an easy way to tell how good your sales system is. Estimate the gap between the top 10% of your salespeople and the bottom 10%.
Is the gap small, big, or
GINORMOUS? Think about McDonalds again. What do you figure the revenue gap might be between their best, fastest cashier and their worst? Maybe 40%? Now, how big is the gap on your sales team?
In many I.T. sales organizations, the top 10% of the salespeople will each generate $1 Million in annual GP, and in many cases much more. The bottom 10% often don't sell anything at all. The biggest cause of this disparity is a poorly-designed sales system
A Bad Sales System
Bad sales systems can doom even talented people to failure. They are complicated, non-intuitive, and hard to learn. The processes aren't well documented, and people spend an inordinate amount of time getting simple things done. Most of these systems lack an effective New Business Development process, so the most successful people are the "survivors" who stick around the longest and scoop up loose accounts.
A bad sales system encourages each salesperson to conduct business his or her own unique way. This means the customer experience is different depending on which salesperson they happen to get.
It's kind of like walking into a hair salon where every stylist has a completely different skill set and approach. You take your chances, and you never know what to expect.
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"Your Haircut Today will Depend on
Which Stylist we Assign" |
A Good Sales System
Like McDonalds, a good selling system uses simple processes to deliver consistency and value. The stages of the selling cycle are clearly defined and delivered. Important metrics are monitored constantly. Feedback loops tell you immediately when something is out of spec
Good selling systems give all new hires a reasonable chance to succeed. Most importantly, a good selling system provides a consistent customer experience that delivers predictable results. That's the kind of sustainable advantage that builds profits and provides stability to your organization.
Don't leave your profitability to chance and good intentions. Work to make your sales processes simple, easy, and fast. If your sales process is so simple even a salesperson can execute it, you'll be creating your own license to print money.
