What Are You Afraid Of?

Posted on by Scott

fear-1172407_640In the 1991 film Defending Your Life, Albert Brooks plays a man named Daniel Miller. Daniel dies in a car accident and finds himself in Judgement City, a way-station for the recently departed. It is here that souls are assigned a defender and, through a series of interviews, must demonstrate they have overcome the fears that govern most human behavior in order to be granted access into heaven. Those found to still be struggling with fear are sent back to earth, reincarnated so they can try again. Daniel is forced to relive several incidents from his life, played back on a large video screen, and attempts to justify his often less than heroic actions.

I don’t know what the afterlife might hold for us, but I am convinced that fear is one of our most formidable opponents here on earth. While motivation drives us forward, fear is what holds us back. The most exciting goals and meaningful activities can be easily thwarted by fear. It’s only by overcoming our fears that we can break through the barriers keeping us from realizing our fullest potential.[Tweet “It’s only by overcoming our fears that we can realize our fullest potential.”]

Some people have a fear of rejection. They fear their ideas will be deemed insignificant, insufficient, or even laughable. They worry about not fitting in. Rather than seeking to stand out, they seek to blend in. Their desire for acceptance overshadows their desire to grow and achieve.

Some people have a fear of failure. They fear falling short of the goal and ultimately decide it is better not to tempt fate. After all, if you never make the attempt, you don’t have to worry about losing. And for them, the potential pain of losing overrides the potential benefits of winning.

Still others have a fear of success. They fear actually achieving the goal. They’ll never admit it, but successfully attaining their goal is causes great anxiety. Reaching a new level of performance brings on a lot of pressure. You might be expected to continue performing at a high level. You might find yourself with a new set of challenges and responsibilities you don’t necessarily want. Pursuing a goal is often more comforting than actually reaching it.

These fears manifest themselves in various ways. Worry, anxiety, timidity, disengagement, lack of communication, procrastination, low performance, missed opportunities, decreased trust. Any of these sound familiar?

As leaders, it’s critical that we help team members overcome the fears that are holding them back; but that process has to start with facing our own. Those in leadership positions are often the most susceptible to fear. Their position adds a different dimension to the motivation vs. fear equation. It can be difficult to help someone else move forward when I’m being held back myself.

Overcoming fear is a process. It occurs to me that there are three key steps to mastering the fears that hold us back.

  1. Name it. When you feel yourself reluctant to take that next step, it’s important to identify exactly what’s causing that hesitation.
    • Why am I reluctant to take the next necessary step?
    • What negative consequences do I feel might result?
    • Why do I feel these negative consequences are likely to occur?
  2. Quantify it. Once you’ve named your fear, identify its impact on your progress.
    • What’s the cost to me should the negative consequences come to pass?
    • What’s the cost to me of not moving forward? What positive outcomes am I giving up?
    • What’s the worst case scenario? Do the benefits of moving forward outweigh the consequences?
  3. Address it. Assuming the potential benefits outweigh the potential negative consequences, identify the best way forward.
    • What steps should/could be taken to minimize the potential negative consequences?
    • Who can I confide in/work with to help me make the most of this opportunity?
    • How can I use this experience to propel my performance forward and lay the groundwork for even more success in the future?

Overcoming fear is a very real component of motivation. Without addressing the internal reservations that hold us back, we can’t fully embrace the challenges ahead. Without confronting that part of us that creates doubt, we’ll never realize our full potential. Ultimately, you may find that overcoming fear is the most motivating move of all.

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Dialed In or Checked Out?

Posted on by Scott

hand-977641_640Do you remember your first day on the job?

Do you remember the sense of excitement you felt? Perhaps you felt butterflies in your stomach or the rush of a quickened heartbeat. Every sense was alive as you entered that new environment. Every sight and sound was a fresh experience. You drank in every moment with a heightened sense of expectation.

What was it that excited you that day? Was it the prospect of a new job role? Certainly, the idea of taking on a new set of responsibilities (and possibilities) is an exciting one. Was it the idea of meeting new people? The first few days of feeling out a new team are always filled with anticipation. Or maybe it was something larger – being part of the organization’s larger purpose that fueled your excitement. Being a part of something significant has always been a source of motivation for me.

What about today? How have your feelings about your job changed since that first, possibility laden day? Does the work still excite you? Are you still energized by those around you and the work you accomplishing together?

Or is the thrill gone? Has your excitement given way to apathy? Has the pride in your mission been replaced by a daily feeling of dread? Are you still fueled by a sense of purpose or have you run out of gas? Have you simply quit and forgot to tell anyone?

A recent Gallup poll found that only 30% of American workers are engaged, meaning they work with “passion and feel a connection with their company.” That means seven out of every ten employees have lost their motivation to deliver their best. Of those seven, five (52%) say they have “checked out.” They sleep walk through the day, putting in their time, but not their best effort.  They’re simply going through the motions. Their mind is elsewhere. Their focus is on something other than improving efficiency, satisfying the customer, or growing the business.

The other 18% are what Gallup calls “actively disengaged.” These people aren’t just unhappy. Every day, they work to undermine the progress made by their engaged coworkers. Imagine that for just a moment. For every team of ten people, two are likely to be waging a war of sabotage – moving the opposite direction of everyone else.

How does this happen? How do excited, engaged, purpose-driven employees turn into saboteurs? Where did the passion go? What happened to their motivation?

There are any number of theories about what drives an employee’s motivation, but a lot of it comes down to culture. Culture has been described as the operating system of an organization. During a workshop last year, I asked attendees how they would define “culture.” The best response was the simplest: “It’s how things work around here.”

How’s the culture in your organization? If the members of your team were to answer honestly, how would they describe their level of engagement? Are they filled with passion? Are they checked out? Or are they actively disengaged?

As leaders, we are the keepers of the culture. It falls to us to protect and cultivate the type of work environment that attracts top talent and motivates them to continue performing at their best. It is, in fact, the essence of leadership.[Tweet “Leaders are the keepers of culture.”]

Great cultures are difficult to build. That’s why there are so few around. That’s why studies like the one conducted by Gallup revel such disappointing numbers regarding employee engagement. But the leaders of high performing organizations understand the importance of culture. They believe the struggle is an important one.

So, do you remember your first day on the job? It’s not too late to recapture that magic. Culture is a living, breathing entity. The energy and excitement that once drew people in may simply have gone dormant. Tap into the passion and energy you and your team long to feel and get to work. It may be the only work that matters.

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3 Ways to Hold Yourself More Accountable

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achievement-1238472_640During a recent webinar series, I likened managers who avoid accountability to the leader in Hans Christian Anderson’s tale “The Emperor’s New Clothes.” In this story, two charlatans tell the emperor that they are master clothiers. They offer to make him a beautiful suit like none he has ever seen. Furthermore, they say, the cloth they use is so light and soft that it actually appears invisible to anyone not smart enough to appreciate its uniqueness. The emperor, unable to see the non-existent fabric himself, parades through the streets naked; attempting to ignore the murmuring of the crowd and trying to convince himself that everything is ok.

Accountability is a huge problem for many people, especially those in positions of authority. Many are uncomfortable with holding their teams accountable, so they avoid dealing with issues in the hope that they will resolve themselves on their own. Of course, they rarely do. Meanwhile, employees grow more and more frustrated with leaders who ignore the obvious, convinced they are doing the right thing.

For the past few weeks, I’ve been exploring various aspects of accountability. I’ve presented the concept of conducting a team health check to get a feel for how the members of your team feel about the state of accountability. Remember, top performers thrive in an environment of accountability. [Tweet “Top performers thrive in an environment of accountability.”]

Then I presented the concept of the “former performer.” These are people who once set the standard for performance, but some reason have turned into speedbumps for the organization. Rather than take control of their own performance, they have become victims of circumstance, always offering an excuse for their lack of forward progress.

Last week, I wrote about the methods teams use to hold themselves accountable. Winning teams never rely on a single star to pull them through. It takes everyone committing to the vision and expecting the best from themselves and those around them to win championships.

Today, I wrap up this series on accountability by offering three ways individuals can introduce more personal accountability. We all want to do our best work. We all want to achieve our fullest potential. But too many times, we fall short due to a lack of personal accountability. We may find it easy to push ourselves appropriately in a group setting, but left to our devices, it’s all too easy to let things slide.

I personally fall into this category. Despite my best intentions, I often find myself procrastinating. I put off important projects and wind up struggling to produce at the last minute. Sometimes this works to my advantage (I tend to have my best ideas under a time crunch), but it is always stressful and I never feel like the work I produce is my best. I need to be held accountable. So for those projects where I don’t have another person whose job it is to provide external accountability, I use these methods to create it.

  1. Find a partner. During my sophomore year of college, I enrolled in a weight lifting class. I felt that this would be a great way to get in shape and develop an exercise routine. Unfortunately, the only class available was at 7:00 am – and I am not a morning person. I soon skipped enough classes to earn a warning form the coach. Another classmate received the same warning and we decided to become workout partners. We agreed to hold each other accountable for making it to class and making up those we’d missed. By working together, we managed to pass the course. Finding someone who shares the same goals, and even the same struggles, is a great way to create partnerships that help you both succeed.
  2. Create a competition. I like to win. I’ve found that a little friendly competition is great way to push myself into completing tasks I otherwise wouldn’t. My kids and I used to do this all the time when it came to housework. None of us enjoy cleaning house, but staging a race to see who could get their dirty clothes to the laundry room fastest makes the job fun. During camping trips with our Boy Scout troop, I’ll offer a reward for the person who picks up the most trash around camp. We always leave the place cleaner than we found it. Try creating a mini-rivalry with someone else and use the spirit of competition to boost your accountability.
  3. Go public. One method that has worked for me many times is to announce my intentions publicly. When I set a personal goal to reach 10,000 daily steps for the first three months of this year, I told a lot of people I was setting that goal. I gave them permission to check on my progress at any time. I knew that keeping that goal to myself was an easy way to let myself off the hook should an obstacle come along. Because I knew others would be asking to see my results, I did what it took to reach the goal. There were nights when I could be found walking in circles around my yard or a hotel room in order to get the last few steps in before going to bed. Without that accountability, I know I would have given myself permission to fall short. Thanks to that accountability, my streak continues well past the initial three month goal.

Like so many aspects of leadership, accountability is a skill. Some may have a natural inclination for it, but we can all develop it. Those who choose to ignore this critical aspect of personal and team leadership, never fail to suffer. Like the emperor parading around in non-existent clothes they become the object of contempt and derision. But those who commit to accountability, both for themselves and their teams, enjoy the benefits that only come from top performers consistently giving their best.

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The Keys to a Winning Team

Posted on by Scott

basketball-1263000_640Last week the Golden State Warriors made history. They set a new NBA record for most games won in a season by finishing 73-9. Their accomplishment, which tops the Chicago Bulls 72 wins during the ’95-’96 season (something many said could never be done), is even more impressive when you consider they didn’t lose back-to-back games. After each defeat, they found a way to rebound and retool in order to secure another win.

The Warriors were already a strong team coming into this season. They finished with the league’s best regular season record last year (67-15) and the NBA title. But the best are never content. The players and staff knew they could be better this year and they set out to prove it.

Some will say the key to their success lies in Stephen Curry, their marquee player. And indeed, he is a force to be reckoned with. Last year’s MVP is by far the NBA’s best scorer, averaging 29.9 points per game. He set a new record for 3-point shots this season with 402. No one else even reached 300. But a single great player doesn’t make for a championship caliber team. Oh, they may carry the day here and there, but it takes more to achieve greatness with any kind of consistency. [Tweet “The best are never content.”]

Others may say coach Steve Kerr is the catalyst. He’s definitely brought something different to the franchise. He was a player for the Bulls the year they set the 72-win bar and won the title. He certainly knows what it takes to be a champion. But Kerr missed the half of the season, recovering from complications with an earlier back surgery. He wasn’t part of the Warriors’ 24-0 start, the league’s best since ’93-’94 when the Houston Rockets kicked off their season with 15 straight wins.

There’s no doubt that talent and strategy are critical components of a championship team. What sets the Warriors apart, though, is the high level of dedication each member displays to the team. When the season gets long, and individual games devolve into a grind, it’s the quality of the team that gets you through. Here are three qualities of top teams that win championships. [Tweet “When the season gets long it’s the quality of the team that gets you through.”]

  • A shared mission. It became apparent early in the season that the Warriors wanted to go for the record. At one point, Curry had this to say about the team’ mindset: “Obviously, going to win a championship, that’s the main goal. But there’s a reason we’re still talking about that…Bulls team…. They were on a mission that year and ended up winning the championship as well. So that’s kind of where we want to be.”

The team created the mission. The idea may have started with one person voicing an idea, but everyone bought into it. Once the regular season record became the focus, winning became the only thing that mattered. Conserving energy for a tougher game was no longer a consideration. Coasting once a playoff berth was secured didn’t enter the conversation. The shared goal became a belief and that belief became a reality.

  • A personal responsibility. Games often come down to a single play, a single shot. Any given player can find themselves in a position to secure the win, spur a run, or create an opportunity. Members of the team knew they had to be at their best every single night or risk letting the team down. Everyone felt the pressure, and welcomed it. That’s what winners do.

Take Curry for instance. He was already the top scorer. He already took more shots and made more three pointers than anyone else. It would have been very easy for him to look for the others to improve, secure in the knowledge that he was contributing more than his fair share. But he didn’t. Curry has one of the most intricate warm-up routines in the NBA. He pushed himself to better his game. The guy just doesn’t let up. And his teammates have responded in the same way. They know what Curry brings to the table, but rather than using that as an excuse to be less than the best, they use it as fuel to improve their own contribution to the team.

  • An accountability mindset. Accountability is all about communication. Teams that communicate regularly, and openly, create bonds centered on expectations of each member’s behavior. When expectations are met, trust builds. When members slack off, trust crumbles. Championship teams know that depending on your teammates to do their part is critical to winning. So accountability is not only desired, it becomes everyone’s job.

The Warriors are a team that talks to each other. They communicate on the court, in the locker-room, and during practice. Players even use an online group chat room to connect between games and during the off-season. According to player Draymond Green, communication often focuses on where to go for the post-game meal, but it’s also used to share opinions, listen to each other’s advice, and reinforce expectations. Being accountable to each other builds trust.

Championship teams are a lot of fun to watch. Heck, everyone loves a winner. But few seem to know what it takes to achieve this level. NBA Commissioner Adam Silver does. He said this after Golden State’s record-breaking night: “The team held itself to a high standard throughout the season, playing with purpose every night and captivating fans around the world.”

How does your team stack up? Do you have a shared mission? Does each individual feel a personal responsibility to do their best? Is every member held accountable by the leader and the rest of the team? Are you on track to a record season?

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Are You a Former Performer?

Posted on by Scott

sad-597089_640Just about every workplace has one; that guy or gal who never delivers, but always has an excuse. It’s never their fault. There’s always some external reason that explains why the project wasn’t completed on time or the sales goal wasn’t met or customer satisfaction is down. Despite their best efforts, someone or something got in the way. And it’s too bad, really, because they would’ve hit a home run if not for the obstacle in their path.

But press these people on the details and you’ll find out there really never was a plan for success; just another string of excuses. You quickly start to deduce that they never really intended to perform at all. While others are working hard all around them, their goal is to expend as little effort as possible. They just show up every day doing the bare minimum necessary to collect a paycheck.

It’s always a tragedy when a top performer quits and leaves. It’s worse when they quit and stay. I call these people former performers. At one time, they represented the organization’s best and brightest. They were full of potential and full of passion. Others looked up to them, went to them for advice, and trusted them to show the way. [Tweet “It’s always a tragedy when a top performer quits and leaves. It’s worse when they quit and stay.”]

But something changed. Something caused them to lose their passion. The fire inside died and they’ve grown cold. Without that internal spark, there’s nothing to push them on, nothing driving them to succeed or challenging them to create something new. Now they’ve quit. They don’t perform, they just get in the way and slow things down – like a speedbump. And everybody hates speedbumps.

Some lose the spark following a big letdown. A major project didn’t go their way. They no longer occupy a key position. Someone else has risen up and stolen their limelight. They feel like they’ve fallen from the summit (or been pushed off) and the grapes are sour.

Others just get used to being told “no.” Their ideas have turned down so many times, it feels like death by a thousand cuts. Eventually, they start coming up with obstacles themselves. I guess it’s less painful to recognize a perceived barrier and abandon your idea than it is to have someone else squash it for you.

Perhaps for some, it’s a more natural degradation of passion. Their interests no longer align with that of the organization or the team. Industry changes have sucked some of the fun out of the job. Changes to their life situation has shifted personal priorities. Maybe burn out has set in.

Regardless of the cause, former performers hurt the team. Their passive aggressive approach sucks the energy from a room and steals the momentum from the team. The impact is even more profound when you consider that these individuals typically occupy leadership positions. That’s right, former performers are usually found in management – the perfect place to kill productivity while avoiding accountability.

Former performers talk a good game – in fact, they are often very good at fooling the executive suite – but they absolutely fail the test when it comes to personal accountability. They don’t perform. They don’t take responsibility. They don’t care. And because they don’t leave, others are forced to pick up the slack.

Here’s how you avoid becoming a former performer:

  1. Commit to always doing your best. Don’t give up or give in just because there are obstacles in the way. Remind yourself that the easy road isn’t always the right one and that the tough victories are always the sweetest. Keep in mind that giving yourself permission to stop caring, even for a brief period, is a dangerous step. Don’t go there. Just don’t.
  2. Align yourself with other top performers. Misery loves company, but so does success. If you’re not regularly working alongside people who seek excellence at every turn, then you’re likely hanging out with losers. Stick around too long, and you’ll become one yourself. Find the best and become part of that group.
  3. Work toward a vision. If you don’t have a vision of some better future state, then you are doomed to wander aimlessly. What do you want your job, the team, and the organization to look like a year from now? If you can’t articulate this, then what is it that’s driving you forward? Work with the other “A” players around you to create a vision of what could be and then push each other, and yourselves, to make it a reality.

Are you a top performer, or a former performer? Can you make an honest assessment? If you look in the mirror and see a former performer, it’s not too late for you. It’s not too late to reignite the spark and regain the passion that once fueled your best work. It’s there if you want it. So are the top performers around you. They’re waiting to add your passion and creativity to theirs. All you have to do is decide to join them.

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How Healthy Is Your Team?

Posted on by Scott

doctor-563428_640Like most people, I dread going to the doctor. I put it off for as long as I can before finally breaking down and scheduling an appointment. I usually blame this reluctance on my busy schedule. It can be hard to find the time. Sitting in waiting rooms and going through exams can feel like such a waste of time.

If I’m honest though, it’s not the interruption to my schedule that keeps me from going in sooner. It’s fear; fear that the doctor will find something wrong. Even if I have symptoms that suggest medical intervention is needed, I’ll resist addressing them. I try to convince myself that nothing is wrong; what I’m sensing is temporary or even imaginary. If I just pretend everything is ok, then somehow things will work out.

Ignoring problems rarely makes them go away. In fact, by not tackling an issue while its small, I may actually cause it to escalate. Small annoyances, left unaddressed, become big problems. What begins as a slight irritation can spread, impacting adjacent areas and threatening the entire system. Suddenly, I find myself battling something overwhelming, spending more time, money, and effort to correct an issue that could have been corrected easily had I caught it soon enough. Like I always say, you receive an abundance of what you praise or tolerate. [Tweet “You receive an abundance of what you praise or tolerate.”]

Teams and organizations, just like individual bodies, are living entities. They require a certain amount of care to remain healthy. They, too, are susceptible to injury and illness. If caught early enough, steps can be taken to correct problems before they become systemic and threaten the health of the group. Attentive leaders perform periodic check-ups to ascertain the health of the team and identify issues that need to be addressed before they escalate. I believe there are five areas that need to be evaluate during a periodic team health-check.

  1. Check the team’s vision. Is everyone clear on the mission? Does everyone know what it takes to achieve success? Do the individual members of the team possess a clear understanding of their specific role and how it relates to the overall strategy?
  2. Check the team’s circulation. Does information flow easily in all directions? Do team members have the knowledge they need to perform at their best? Are the right individuals involved in discussions of critical issues?
  3. Check the team’s appetite. How engaged are members of the team at any given moment? Are people eager to get involved in new projects? Do individuals actively seek out ways to improve the organization?
  4. Check the team’s mobility. How quickly do members of the team respond to challenges? How well do individuals work together to achieve goals? How smoothly and efficiently are projects completed so that new ones can be initiated?
  5. Check the team’s flexibility. Do members of the team (including the leader) respond positively to change? How readily do people accept different roles they may be asked to adopt? Are individuals able to assume the roles of leader and follower with equal enthusiasm?

Obviously, I could take the analogy even further, but hopefully you get my point. Healthy organisms don’t stay that way without paying close attention to the early warning signs that signal something is wrong. Consider elite athletes. The best of the best are so in-tune with their bodies that the slightest hint of a problem is enough to send them to the locker room. They know that a little bit of attention now can correct potentially career-threatening problems.

They say “an ounce of prevention is worth a pound of cure.” What do you say leader? Is it time to schedule a team check-up?

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3 Steps to Take After Receiving a Referral

Posted on by Scott

digits-705666_640I couldn’t believe what I was hearing.

A teller with a leading community bank (a former employer of mine) had sent me an email, saying she wanted to speak with me for a few minutes. She was looking for referral advice. Naturally, I expected her to ask for tips on making referrals. Perhaps she wanted help on identifying referral opportunities. Maybe she wanted some assistance in identifying the appropriate time to bring up the concept of a new product or service with her customer or acquaintance. Or maybe, I thought, she’s struggling to find the right words to use and wants to bounce some ideas back and forth. I certainly was not prepared for her actual request.

“Scott,” she said, “making referrals is hard. I’m shy and it takes a lot for me to speak up and suggest my customer consider an additional product.” I agreed. After all, making referrals is a leap of faith. You’re opening yourself up to potential rejection. Customers might not welcome the intrusion and, depending on how the conversation transpires, mistake the referral for a high-pressure sales pitch.

She continued, “I do it anyway, though. We all do. We love our customers and know a big part of our job is finding other ways the bank can help them.” I was pleasantly surprised at her level of commitment and encouraged her to keep at it. “So, what part of the referral process can I help you with?” It was her answer to this question that threw me for a loop.

“We’ve been sending a lot of referrals to the lender at our branch,” she said, “but he never follows up. I just spoke with a lady I referred to him last week. When I asked how their conversation went, she told me she’d never received a call from him. She wound up going to another bank for the loan that I suggested she look into. One of my coworkers told me that she has the same problem and has actually started sending her customers to a lender at another branch who always follows up. I hate to do this, but I also hate looking bad when my own go-to person doesn’t seem to appreciate the referral. What should I do?”

Referrals represent the holy grail of marketing. What better way to generate new business than to have other people selling for you? How better to qualify prospects than to have partners making one-on-one recommendations to people they’ve identified as great candidates for your product? And how much easier can it be to overcome the credibility barrier when the recommendation comes from someone the prospect already has a relationship with and trusts?[Tweet “Referred customers carry a lifetime value 16% higher than the norm.”]

Referrals are timely, targeted, and carry no upfront costs. Furthermore, referral leads convert at a rate 30% higher than those obtained through any other type of marketing. Add to that the fact that referred customers carry a lifetime value 16% higher than the norm and it’s easy to see why smart business owners attempt to leverage this strategy as much as possible. But sadly, 48% of referred leads never make it to the next step of the sales cycle.

Referral marketing only works when referrals are acted on. Without follow up, referrals don’t turn into sales. They turn into poor service experiences, disappointed customers, frustrated referral partners, and missed opportunities.

When you find yourself the fortunate recipient of a referred lead, take these steps right away.

  1. Act on the lead. 50% of buyers choose the vendor that responds first. The sooner you follow up on a referral, the more likely you are to actually get business from it. You need to act while the prospect is thinking about taking the next step, and the propensity to buy is highest right after a quality referral is made.
  2. Deliver exceptional service. Referral leads should be treated delicately. The expectation of performance is high – after all, you did come with a personal recommendation – so make sure to shine. Even if the sale doesn’t close, your interaction with the lead impacts your reputation as well that of the referring party and the organization. The way you follow up on any given referral can influence how many more come your way.[Tweet “The way you follow up on any given referral can influence how many more come your way.”]
  3. Follow up with the referrer. Thank them for sending someone your way, even if things didn’t work out. Let them know how the conversation went and, if necessary, provide any tips for better qualifying prospects in the future. The more you develop this partnership, the more likely you are to see additional referrals come your way.

Of course, if you’re not interested in referral business, simply ignore these steps. In fact, ignore any referrals altogether, just like this banker did. Feel free to thumb your nose at a strategy virtually guaranteed to provide a steady stream of qualified business to your doorstep. Just don’t be surprised when all that business winds up being referred somewhere else.

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10 Tips for Better Referrals

Posted on by Scott

human-763156_640re-fer-ral (noun) an act of referring someone or something for consultation, review, or further action.

Growing a business is hard. Unless what you have to offer is cutting-edge, standing out from the crowd can be a grind. And let’s face it, most of us aren’t selling something truly innovative. We sell commodities, a product or service that’s readily available from another provider. For us, finding a way to differentiate yourself from the competition can prove difficult.

There’s plenty of evidence to suggest that word-of-mouth advertising is one of the most effective methods of generating new business. It’s certainly the most economical. If generating referrals isn’t a significant part of your marketing strategy, then you’re missing out.

In my experience, people think of referrals in two ways. With the first, employees interacting with existing employees make note of an additional product or service the customer isn’t taking advantage of and suggests they take action to fill the gap. In the second, customers and business partners are encouraged to proactively approach members of their network on behalf of the organization, recounting their positive experience and suggesting their contact give them a try.

Both referral scenarios can add significantly to your pipeline, but in my experience, few people are comfortable with the referral process. They hesitate to make referrals and, when they open their mouths to speak, the words don’t come easy.

But it doesn’t have to be this way. Making referrals, like any other business activity, is a learned skill. All it takes is the right attitude, the right approach, and practice. Here are 10 tips to help you become a master at referrals. Let’s start with ideas for referring additional products to an existing customer.

1. Think of referrals as a service rather than a chore. Your customer or contact is missing out on a valuable product or service. You have knowledge that could help them solve a problem. Why are you holding back? Referring someone to a product, service, or colleague that could benefit them is not just good business, it’s a part of providing good service. What better way to take care of those who already trust you enough to business with you than to share information that could prove valuable to them?[Tweet “Making referrals is not just good business, it’s good service.”]

2. Study up on the subject of your referral. People often hesitate to make referrals because they aren’t confident in their own knowledge of the product or service in question. If you find yourself unsure of whether or not you are competent to speak to the quality of a product your own firm provides, don’t make the referral. Educate yourself first, make sure you know enough to speak intelligently before opening your mouth.

3. Refer to the expert. By definition, a referral is made by someone who cannot complete the sale themselves. If I can complete the sale, then my conversation with a prospect is a sales call, not a referral. Referring is the act of suggesting a connection between two other people, meaning you are not required to answer every single question the customer might have. That’s the expert’s job. While it’s important to know something about the product or service that sparked the referral idea, what you are really referring is someone else’s expertise. Don’t refer to people you don’t know. Make sure you can vouch for the expertise and character of the person you’re looking to send your contact to.

4. Refer selectively. Not every customer you come in contact with is a candidate for a referral discussion. Make sure the customer could actually benefit from the service you’re thinking of recommending. This is made easier if you’ve been listening for cues and looking for clues during your interaction. Don’t machine-gun spray your customer list. You’ll come across as insincere and lose credibility.

5. Speak to what you see. Something caused you to think about making a referral to your customer. Start by mentioning that trigger:

  • “Mr. customer, from what you’re saying, it sounds like you could benefit from …”
  • “According to our records, you’re not currently taking advantage of …”
  • “After our last conversation, I got thinking about your account. I think we may be able to help you even further…”
  • “You know, a lot of my customers have said they really appreciate the way we helped them with…”

6. Speak naturally. When the time is right to make a referral, speak as if you’re talking to a friend. Think about the last time you tried a new restaurant and shared that information with a friend. You didn’t slide into a fake, infomercial type spiel. You spoke on a personal level. You shared your experience and knowledge, then suggested your friend try it out for themselves. That’s what a referral should sound like – one friend trying to help another one out.[Tweet “A referral should sound like one friend trying to help another one out.”]

Now, let’s look at a few tips for encouraging referrals from others.

7. Educate your customers and business partners. You can’t assume that just because people know who you are and what you do that they will be comfortable referring business to you. Make a point to educate those around you. Share bits and pieces of information when appropriate so they feel educated enough to confidently speak to your expertise. Give them a story worth relating to someone else.

8. Make it easy for others to refer business to you. Most people like making referrals. Personally, I get a great sense of satisfaction when I connect two people I know in a way that helps them both out. As your customer, I’d like to refer business to you. The problem is, I don’t know everything about your particular product suite or the myriad of services you offer. However, there is one product I am intimately familiar with – the one you sold me. Make sure every new customer gets a couple of business cards and ask them to pass them on to people who could use the same service they are currently benefiting from.

9. Make referrals yourself. You have to give to receive. If you want business partners to send referrals your way, start by sending a few in their direction. Sending me a referral creates psychological pressure on me to reciprocate. When you help me out, I want (and need) to do something for you in return. Prime the referral machine by making a few deposits of your own. [Tweet “Prime the referral machine by making a few deposits of your own.”]

10. Ask for them. If you want more referrals, ask people for referrals. Business is rarely a case of “if you build it, they will come.” If you want something, you have to ask. “Hey, if you come across someone who could benefit from what I have to offer, do me a favor and hand them my card. I’d appreciate the referral.”

There’s one final tip I’d like to share for those seeking to earn more referral business. Be someone worthy of a referral. Do good work. Produce a superior product. Provide excellent service. Operate with integrity. Seek to be the kind of person others want to be associated with. If you focus on building solid relationships, you’ll have more referrals, and more business, than you can handle.

If you’d like to have a discussion regarding some specific referral strategies for your business, give me a call. If you have strategies that have proven successful for you, please share them on our Facebook page.

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Searching for Clues: Hone Your Powers of Observation

Posted on by Scott

detective-156647_640He can tell where you are from just looking at your shoes. He can guess your occupation after a brief examination of your hands. He can determine your next steps based solely on clues you’ve already left behind.

I’m talking, of course, about Sherlock Holmes. The world’s greatest detective has been solving mysteries since his introduction by Sir Arthur Conan Doyle back in 1887. I’ve personally been a fan since I first read The Hound of the Baskervilles as a kid.

Holmes possesses a number of traits that prove valuable as he works through each investigation. He’s a student of the physical sciences which aids his analyzing evidence from a crime scene. He is also a brilliant strategist, something that allows him to anticipate the motives and likely next moves of his opponent. The skill I most admire, however, is Holmes’ ability to decipher a great deal of information from a handful of seemingly meaningless clues.

Think about the impact this ability would have in the workplace, for instance. Salespeople could uncover unmet needs by simply observing the habits or appearance of their prospects. Service personnel could determine the source of a customer’s unhappiness by reviewing past account usage and analyzing communication patterns. Managers could better equip their teams by acting on clues gathered from mere observation.

Known as abductive reasoning, Holmes’ ability to infer huge amounts of information from tiny bits of data seems like something only a fictional character could be capable of. Recent research, though, would seem to indicate that this “Holmesian deduction” is actually an innate ability that each of us can tap into. The power of focus is formidable, and it’s within our grasp. We’ve just forgotten how to do it.

Holmes himself once told Watson “You see, but you do not observe.” That, I believe, is the problem all too many of us face. Our eyes function properly, but we fail to observe what we’re seeing. That is, we fail to process information in a meaningful way. The vast majority of what we see simply does not register as important. Although seen, it is almost immediately dismissed and, therefore, forgotten.

Another barrier to abductive reasoning is our inability to focus attention on any given task. Our desire to multi-task coupled with increasingly short attention spans has robbed us of our ability to focus. While conducting research for her book Mastermind: How to Think Like Sherlock Holmes, author Maria Konnikova attempted to counteract her tendency to shift focus so that she could see as well as observe. The pull of email and social media proved almost too powerful to overcome. She found herself fighting the impulse to look at each email that popped into her inbox.

I know that, even in my own house, achieving a state of Sherlock Holmes-like focus is extremely difficult. My family has a hard time sitting down to watch an episode of television without multi-tasking. My son studies for school while watching. My wife hops up to finish the laundry. I reach for the phone when it signals some type of update.

So how do we regain our super-powers of observation? It takes discipline and time. To become a great detective in our own right, we have to begin by making a concerted effort to block out distractions. It’s hard to focus on any one thing when others are competing for your attention. Konnikova found that she lacked the personal discipline to ignore the lure of online distractions. She actually downloaded an app to her phone that blocks access to certain functions for a predetermined amount of time.

Secondly, it takes practice. Blocking out distractions does nothing to keep the mind form wandering on its own. You have to train yourself to live in the moment – to fully immerse yourself in what’s going on around you. You have to reach a state where your brain actually observes what your eyes see. This doesn’t happen overnight. Like any skill, this level of mindfulness has to be practiced.

There’s another benefit to mastering this skill as well. Konnikova uncovered research that shows multi-tasking is counterproductive and damaging to your psyche. We’re actually more productive and happier in general when we allow ourselves to live in the moment and fully take in what’s happening around us. The constant distractions that we think keep us connected and efficient are actually having the opposite effect.

I’m going to give it a shot. I often feel frustrated at the length of time it takes me to complete certain projects. Something tells me it’s my inability to block out distractions that keeps me from focusing in a way that produces my best work. Stayed tuned for an update on my progress. Or just watch the news. You might see me listed as the man who solves the next big mystery.

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Lend Me Your Ears: How Listening Yields Additional Business

Posted on by Scott

buddha-statue-546458_640I was just about to nod off when I heard the noise. Instantly awake, I sat up in bed and strained my ears for any sound. As my mind settled, I became aware of every creek and pop. I could hear the even breathing of my dog, Spencer, at the foot of the bed. I could hear the ticking of the clock hanging in the next room. And I could hear the rustling of the branches on the tree outside my window. The sound that had startled me turned out to be a neighbor getting home late.

It’s surprising what you can hear when you stop and listen. Put aside all the distractions and suddenly even subtle cues come through loud and clear. What’s sad is that we rarely settle down enough to hear clearly. If we made an effort to listen more closely, we might pick up on a few things our customers are trying to tell us.

During any given interaction, a customer could be providing you with one or more cues – hints that, to the attentive ear, suggest opportunities for additional business. Customers are often ignored following their initial purchase. Oh, any subsequent maintenance is handled appropriately, but little attempt is made to determine additional needs. Attention has shifted to locating the next potential prospect.

Most salespeople chase transactions, not relationships. With such a narrow focus, it’s easy to overlook secondary cues and leave the relationship only partially explored. Listen carefully, though, and you’ll find that existing customers often have additional needs, responsibilities, wants, and dreams. Think about it, and you just might be able to help them.

The key to picking up on these cues lies in listening, but most of us have forgotten how. Real listening involves more than just our ears:

  • Listening involves eliminating distractions. You can’t really listen if you’re working on your computer while the customer is talking. You can’t listen if you’re checking for texts or updates on your smart phone. And you can’t listen if you’re eavesdropping on your coworker’s ongoing conversations. Listening requires turning away from competing noise.
  • Listening involves settling your mind. You can’t really listen if your thoughts are on other projects or interests. You can’t listen if your brain is busy trying to figure out the solution to some kind of personal issue. And you can’t listen if your focus is on determining what you will say next. Listening involves clearing your head of competing thoughts.
  • Listening involves focusing on the customer. You can’t really listen if your primary concern is completing the transaction. You can’t listen if your attention is on closing the deal. And you can’t listen if your more interested in what come next than what’s happening now. Listening involves being fully present in the moment – your customer’s moment.

I’ve certainly sleepwalked through my share of customer interactions. There’s no doubt in my mind that I missed a number of cues that would have led me to more meaningful relationships and additional business. Had I eliminated distractions, settled my mind, and focused on what the customer was saying, we’d have both been better off.

Going forward, I’m going to be more intentional about how I approach listening. It may take a while, but like any skill I’ll get better at it with practice. I owe it my customer and my business to do so. Hopefully, I won’t sit up at night wondering what I might have missed.

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