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Intellectual Capital Determines Business Success

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Written by Mark Hunter -The Sales Hunter
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Are There Best Practices for Salespeople?

I like to paint. I don't mean pictures. I mean walls and bedrooms and hallways. I enjoy the physical nature of it, and the resulting change in the feeling of the room. I've always liked to paint, and have done so for over 30 years. Once, for about two months, I actually made a living doing it. I think I'm pretty good at it.




One of the most debilitating myths about the sales profession is this: Salespeople can learn on their own, on the job, and eventually become good at their jobs. They'll eventually develop their own style, this myth implies, and that will bring them the maximum results.

That myth is true for about five percent of the salespeople in the world. For the other 95 percent, nothing could be further from the truth. The overwhelming majority of field salespeople perform at a fraction of their potential because they have never been systematically exposed to the best practices of their profession. Instead, they have been expected to "learn on their own."

I like to paint. I don't mean pictures. I mean walls and bedrooms and hallways. I enjoy the physical nature of it, and the resulting change in the feeling of the room. I've always liked to paint, and have done so for over 30 years. Once, for about two months, I actually made a living doing it. I think I'm pretty good at it.

Until a little while ago, when I was watching one of those reality home improvement shows. On it, a professional painter demonstrated the best way to apply masking tape, hold a brush and apply the paint. Yikes! I was doing it all wrong.

All this time I thought I was pretty good, in my own self–taught, learn–on–my–own sort of way. I guess I really didn't have any standard. But I almost always painted by myself, and had only my own opinion. I thought I was pretty good compared to what I thought was good.

Then, when I discovered the best practices of a true professional, I saw that my own ideas were not up to the standard. I wasn't nearly as good as I thought I was. If I'm going to become really good, objectively, verifiably good, I have to change my routines and incorporate the best practices.

So it is with sales as well. The world is full of salespeople who have learned on the job, pretty much on their own, and have never been exposed to the best practices of the profession. They delude themselves, as I did, holding the opinion that they are pretty good. And that delusion keeps them lingering in levels of performance considerably beneath what their potential would allow them.

Sales managers often share that delusion, and occupy themselves with other matters, unable or unsure how to improve the performance of their team. Typically, the sales manager was, in a previous incarnation, a high performing salesperson. He/she was one of those five percent who learned on their own, who studied the best practices, and who incorporated them into his routines. As a result, that sales manager, formerly high performing salesperson, expects every other salesperson to be just like him; to have the same motivation, the same drive, the same ability and propensity to learn. He, therefore, makes little effort to expose the sales team to best practices, because, after all, he did it on his own. Shouldn't they?

Here's where the theoretical conflicts with reality. Yeah, they should do it on their own. However, few do. Only the five percenters of the world can be counted on to invest in their own development. The overwhelming majority of the balance of salespeople haven't even spent $25 of their own money on their own improvement in the last year. The sad truth is that few salespeople see themselves as professionals and take their own improvement seriously.

That's too bad. Every profession in the world develops a body of knowledge about the best way to do that job. And every professional in the world is expected, if they are serious about the profession, to regularly study those best practices, and to incorporate them into their routines with a disciplined, methodical effort. That's why teachers have in-services, doctors go to conferences, nurses have in-service training, etc.

The job of the salesperson is no different. There is probably no other profession that is more written about, and to, than field sales. Over the last 50 years, there must have been thousands of books written, tens of thousands of articles published, thousands of audio programs prepared, and hundreds of newsletters and magazines published – all for the field salesperson, and all describing the best practices of the profession in various terms and methods.

Just as there is a set of best ways to paint a room, so there are sets of best ways to ask a question, seek an appointment, build rapport, make a presentation, close the deal, and follow up on the purchase. Astute salespeople understand this, and seek to continually expose themselves to the best practices.

Beyond that, they understand that it is one thing to know what to do, but quite another to develop the habits which regularly and reliably incorporate those behaviors. They continually work on incorporating the best practices into their routines, repeating them until they become habits. Excellent execution becomes a never-ending mantra.

Astute sales managers do likewise. They continually expose their salespeople to the best practices of the profession, and encourage every salesperson to improve by methodically incorporating them into their routines. Those companies that systematically and methodically expose their salespeople to the body of knowledge regarding best practices of the sales profession consistently outperform those who don't.

It is the path to improvement that the rest of the professional world understands. It's time for the sales profession to do likewise.

Let's no longer be deceived by the myth that most salespeople can learn on their own. Let's put to rest once and for all time the debilitating myth that every salesperson has his/her own style of selling. Let's expect, like every other profession in the world, that professional salespeople be accountable to incorporating the best practices into the routines, and be measured by the standards of the professional.



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“We’re forced to close because the bank will not loan us the money we need.”  Phrases like this have been heard too many times the last several years, and yes, it’s unfortunate, but here’s my perspective:  “Companies don’t fail due to a lack of financial capital. They fail due to a lack of intellectual capital.”

Let me put it in even simpler terms: Companies fail because people don’t think. It’s always easier to blame someone else for our problems. It’s what most people do, and besides, we all believe we’re brilliant. Any set back could not possibly be associated with us; therefore, it has to be somebody else’s fault, right?

Intellectual Capital vs. Financial Capital
Now I’m not going to say 100% of all failures are due to a lack of intellectual capital, but I will say the number is probably close to 97%. Let me explain why. Any business is in business to satisfy customer needs. If things work out correctly, they can fill those needs at a value for which customers are willing to pay and at an amount that is more than the company has to spend to prepare the item for sale.  It’s that simple – nothing complex, nothing behind the magic curtain. Just sell something for more than it costs to make it and you’re fine. Well, not quite.

Success or Failure of a Business
We all know there are numerous other factors that can and do come into play with regard to how a business operates, and it’s all of these other circumstances that require the proper use of intellectual capital.  The level of intellectual capital in any business is going to vary dramatically. More importantly, how the intellectual capital is ultimately used is going to determine the success or failure of a business.

In my role as a sales consultant, I’ve watched a great number of people with incredible sums of intellectual capital not being challenged at all to contribute. At the same time, I’ve watched people who are, for lack of a better phrase, “a few dollars short upstairs,” making all of the decisions without any input. 

Whenever I work with salespeople or any other business professionals, including CEOs, I love to challenge them with a few simple questions.  Here goes:

  • What did you learn yesterday?
  • How did you apply today what you learned yesterday?
  • What do you expect to learn today?
  • What will you need to change next year to stay ahead?


You get the idea. I love to challenge conventional thinking.  Some people say that’s not my place as a sales consultant, but I say that is my place. In sales, it’s all about fulfilling the needs people or entities may have, but many times these people or entities don’t know what their needs are.  Worse yet, they don’t understand what needs they may have tomorrow. This is my role as a salesperson – to not only help them today, but also to prepare them for tomorrow.

You might be asking how this ties back into the original idea of businesses failing due to a lack of intellectual capital rather than lack of financial capital. It is intricately related because no matter what our role is, it is our job to help those with whom we come in contact to fully use their intellectual capital.  This means we need to be fully using our own intellectual capital. And that means we have to ask ourselves the very same questions I listed above.

In my own company, we ask ourselves these questions on a regular basis. We also challenge ourselves to go outside of our comfort zone to seek diverse opinions and ideas. 

The opportunities before us have never been greater. I firmly believe due to advances in communication and the global business community, there are more opportunities for businesses (large and small) to grow and thrive.  I also believe the financial capital requirements are actually decreasing due to the advances in communication and the ability to grow a business.  These changes, however, mean the average business faces far more competition than ever before, and the natural lifecycle of any business is getting shorter. Intellectual capital is even more important today than it was yesterday.

One final thought: Who around you has intellectual capital from which you can learn?  What can you do each day to be growing your own intellectual capital?  And finally, what is the one breakthrough idea that truly defies gravity that you can work toward implementing in the next six months?


For more resources on successful selling, click here.

Mark Hunter -The Sales Hunter
About the author:

Mark Hunter, "The Sales Hunter," helps individuals and companies identify better prospects, close more sales, and profitably build more long-term customer relationships." Few people have the breadth of sales experience that Mark Hunter, “The Sales Hunter” has experienced.  His years of experience in senior-level positions and his years as a sales consultant has allowed him to experience every type of sales call imaginable across industries too numerous to mention.

 

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