The little things

Most people have heard that little things make a difference but they never really stop to think about them, as they relate to their business or even their personal life. Do they really make a difference and if so, how?

Using the sport of baseball, here is a simple example. So, do you think that just getting on extra hit every week makes a difference in baseball?

My numbers may be wrong, but here is some information to think about, to make a point. In general an average hitter in baseball will probably make in the range of $1mil to $5mil each year, so let’s settle at $3mil as the number. That’s lot of money, right? A superstar hitter will make between $5mil and $20mil each year, so let’s settle at $12.5mil. That’s 4X what the average hitter gets.

In major league baseball a batter is considered a superstar if he has a batting average of .300 or more every year. An average hitter will be around .250, a difference of .050. There are roughly 500 at bats (AB) for day to day players over 25 weeks in a season. One hit more per week equals 25 more hits.

Let’s do the math:

• 500 AB with 125 hits = .250 batting average
• 500 AB with 150 hits = .300 batting average

Let’s stretch it a bit to 1.4 extra hits per week:

• 500 AB with 160 hits = .320 batting average…wow that’s 70 points above the ‘average Joe’

The slight difference of one extra hit per week or more means a difference in earnings of 4X, or roughly $9.5mil more each year! On a typical four year contract that’s $38mil. The difference between being a superstar and an average player is really not that much when looked at on a weekly basis.

The same is true for you and your business. Now, how can you apply this to your business? Well, in baseball it’s getting the extra hit and for many players that means extra work in the batting cage and willingness to experiment and change technique. It’s also a commitment to better results and it’s a mental focus on getting results.

In your business, examine what the real drivers of revenue and profit are. Sometimes these are obvious, sometimes they are not what you think they are. In sales, it could be the mix of business, the activities and focus of your outside and inside sales team, the contacts made, the number of opportunities for quoting on business, the quality and effectiveness of your sales conversations, the close ratio, etc. In your planning set realistic stretch goals and be super diligent in measuring and monitoring performance. Be all over the activities that lead to results, knowing that incremental and steady growth in performance will lead to much better numbers.

Small things do add up over time. Your job as a salesperson or manager is to figure out just what those little things are and be very intentional on getting better at them to grow revenue and profits. If you’re in production or logistics, it’s not any different. There are numerous small things that you do everyday that can be improved upon and will add up to increased productivity and reduced operational costs.

Sweat the small things, the details, because they really do matter.

© 2009 Peter E. McDowell

PERFORMA Business Development

Different View/ Different Results

pete@performabusdev.com

Web @ http://www.performabusdev.com

Blog @ http://petemcd.wordpress.com/

Find and connect with Pete on Linked In, Facebook, Twitter and Plaxo

The little things

Sweat the small things, the details, because they really do matter.

Headlines of Interest

Here is a one week snapshot of some recent headlines from local and national media:

01/8/2009 P-I STAFF AND NEWS SERVICES

Retailers report dismal December sales

01/8/2009 THE ASSOCIATED PRESS

Wash. jobless claims set record in December

12/28/2008 PUGET SOUND BUSINESS JOURNAL

SBA Loans Slump- Credit Options Shrink for Small Business

Tough Budget Forces Hard Choices at UW

01/08/2009 PUGET SOUND BUSINESS JOURNAL

Seattle hits Top 10 list for troubled real estate assets

Alki Condo-nundrum, Biggest backlog of sales in county

Seattle joins ranks of ‘double digit decline’ in home prices

Microsoft Landing? Many Concerns Loom in turbulent 2009

Slump hurts hotels

And finally…

State hopers additional liquor sales help balance budget

Amazon: holiday season ‘best ever’

Seattle ties for U.S.’s most literate city

Now, there’s an interesting mix of gloom and optimism.

Those of you who know me well know that I have been pretty darn pessimistic about the state of the economy for quite some time. I have been on record as saying that based on my study of a wide variety of experts, that I believe we’ll be in tough times for a few years…out until 2012 or so. I’m also on record as saying that I hope I am 100% wrong and that we’ll be going through a more normal recession cycle with a faster recovery.

The above headlines are just a sampling of what we’ve all seen for the past six months. Economic conditions are very difficult yet I find the bottom three headlines of interest.

One, and this is a bit humorous, Washington state is opening ten new state liquor stores to bring in additional revenue. This is the first time in my memory that any government has encouraged people to drink away their concerns and solve a budget issue at the same time. State officials don’t expect the recession to affect drinking habits- they expect sales to grow! Got a budget issue? Drink more booze! Visit your state liquor store and accomplish two things- reduce the state deficit and find temporary happiness…

Next, Amazon is proving that the new way of doing business over the internet (new in that this is a new marketing and sales channel evolving in the last ten years) is a great way to capture market share and grow. Their model and execution is the envy of any other company trying to sell large volumes of many products on the net. It’s instructive in that it reconfirms the power and promise of the ‘net. This power is available for both consumer and industrial product and service companies. If you’re not leveraging this channel then you are missing the boat. Confession: I’m nowhere near where I should be in leveraging the ‘net to drive more revenue and profit to my business, but I can assure you that it is part of my strategy for 2009. I have been lax here and if you have also, then rethink what you are doing with your marketing. I’ll be revamping my website in the next few months and will keep you posted when it is done. Admittedly, it’s a bit stale and sincerely, thanks to those of you who have been honest and pointed that out! It’s just one thing out of many that I need to be doing to get better positioned on the ‘net.

Third, there’s hope in Seattle and its environs. It’s a city in a region where there is a lot of intellectual capital- people with intelligence, creativity and entrepreneurial spirit. It’s a region where the power of innovative ideas will make a real difference in maintaining economic stability and driving future growth.

One other headline I saw recently had to do with Southwest Airlines, the best run airline company in history. Southwest is looking at the current market conditions and positioning themselves to grab market share in a down economy. They see failing competitors pulling out of cities that would be well served with their model and they are planning on moving into those cities. They are looking to grow. They are not retrenching.

Amazon and Southwest, two very different companies, are moving aggressively forward and we should be doing the same. But, don’t be reckless and don’t be lazy. The 2009 New Year is just beginning. If you haven’t already, develop a well thought out strategy for how you are going to grow and prosper in tough times. If you need help and would like a complimentary one hour consultation and assessment of your business, please contact me.

© 2009 Peter E. McDowell

PERFORMA Business Development

Different View/ Different Results

pete@performabusdev.com

Web @ http://www.performabusdev.com

Blog @ http://petemcd.wordpress.com/

Find and connect with Pete on Linked In, Facebook, Twitter and Plaxo

Headlines of Interest

A one week snapshot of some recent headlines from local and national media-an interesting mix of gloom and optimism.

Looking from the other side

A short missive today…
One of the hardest things for me to do is to look at a topic or conversation from another viewpoint, from the other side. Especially when dealing with a lot of people at one time…that’s multiple sides. If you’re like me, putting yourself in someone else’s shoes is not easy. Being empathetic is not easy. Yet, that is what it takes to be successful in sales, and probably in life.
This isn’t new- it’s always been that way. It has just manifested itself in different ways in different eras and different cultures. I maintain that getting truly connected to someone by earnestly and deeply seeking to understand their position and reasoning for a desired outcome is one major component for success. If you can’t do this to some degree your chances for success are diminished. Oh sure, you may be successful from a monetary standpoint because you can run all over people (point two below). But as most reasonable people know, success is way more than money and power. I won’t get into all the definitions of what success means, here.
There are a number of reasons why getting in someone else’s shoes is hard for people, but at least two are clear to me.
One, some people are too centered in their own thoughts. It may not be that they intentionally are ignoring the world around them or don’t care about others. They’re not trying to be distant or uninterested. They just have no clue that they are always operating inside their own head with no regard for or interest in the environment in which they are in- and that environment includes people. When they encounter others they are thinking only about what is in their mind. It’s not normal for them to naturally be interested in the other person and to really understand or seek out the other person’s viewpoint. Their emotional intelligence is turned off. They pick up on few or don’t pick up on any nuances of the people that they interact with. Verbal and visual clues just go right by…
Two, some people choose to dominate- they have no interest in learning about the other person’s view. They want their voice to be the one that is heard- loud and clear. They purposely block out everything to make way for espousing their own agenda. For them, it’s all about getting their way and accomplishing their objectives. So, the heck with what other people think or how they feel. ) Again, these types may make a lot of money but their legacy is ultimately badly tarnished and they have few true friends, the kind who will stand by them and tell it like it is when they finally need advice. That’s because they rarely, if ever, seek advice and operate with reciprocity.
To be honest, I’m not always interested in other people’s views. Some people bore the heck out of me. Most of the time I need to get my self-awareness turned on to where I get clear that I am blocking others out and that I need to focus hard to get into their shoes. I find it easiest when I meet with someone who is intellectually stimulating- then I zone in on them.
What’s it like for you?