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August 7, 2015 By Pensare Group Leave a Comment

Case Study: IT Services Government Contractor

Industry Focus: IT security and risk management, system development, design and integration, program management

Client Need: “Sales hesitation” at the middle management level was resulting in lost growth opportunities. President’s priority was to ensure the successful implementation of a new account management process by developing BD skills for project managers, while consistently delivering service beyond expectations for every client.

Pensare Contribution:

Design, implementation and tracking of customized development program for project managers located across the country
Weekly interactive sessions with PM teams to directly tackle “sales hesitation” while developing actionable strategies to further develop customer loyalty
Individual assessments and one-to-one action planning support for high performers (addressing behavioral patterns, individual motivators and decision making skills)
Post-program support (strategic planning and team sessions) to ensure ongoing implementation of the action strategies developed during the course
“I have seen a tremendous improvement in the knowledge and focus on Business Development throughout the organization! More importantly, I am seeing results.”
(VP Operations)

Results:

Increased Capture Capabilities
Improved Integration of BD in Daily Delivery of Services
Independently Formed Internal Initiatives to Sustain Progress and Drive More Results
Bonding of Middle Managers Intent on Improved Sharing and Collaboration
Better Flow of Information Between Departments and Across Locations
Improved Individual Confidence to Lead, Stretch and Grow
“The two things that stood out in every facet of this program are that success is based upon relationships and the need to be intentional about each aspect that influences our relationships with our customers” (Project Manager)

Filed Under: Pensare Case Study

August 7, 2015 By Pensare Group Leave a Comment

Case Study: Association Management Firm

Industry Focus: call-center providing back office support for hundreds of non-profits and associations, warehousing, logistics, fulfillment services.

Client Need: Client retention rates needed to increase– regular re-competes of services led to lower margin and unexpected client turn over. Management estimated $10M company could have been $15-$20M with higher retention and account growth over last 5 years. Senior management did not have sufficient management bench strength (or time) to work with 170 staff across the firm to accomplish two critical outcomes: alignment of teams behind key corporate growth goals, and delivery on their absolute commitment to high quality customer service.

Pensare Contribution:

Strategic action planning sessions with senior management team to ensure high level critical goals were cascading down to middle management and staff
Designed, implemented and tracked customized professional development program for 170 staff members at every level with singular focus of every class: meeting customer needs and exceeding expectations
Subsequently worked with 50 members of management team to develop leadership, relationship building and business development skills
“We’ve always worked hard to build a positive work environment within the company. It’s all about our people, and our 2009 results prove that investing in each employee to strengthen customer relationships makes good business sense.“ (CEO)

Results:

No client has left as a result of poor customer service delivered over the past year ($150K estimated annual revenue impact)
Voluntary staff turnover reduced by 65% from 2008 to 2009
Process improvements resulting from weekly team discussions resulted in immediate savings of tens of thousands of dollars, with projected annual savings for 2010 well into the six figures
Engaged staff at management and service delivery level, with demonstrated commitment to delivery of “big promise” to clients
“I have seen my fellow employees work together so well in the classes that we attended every Wednesday for the last couple of months so I know we are able to accomplish great things outside of the class sessions.” (Operations Manager)

Filed Under: Pensare Case Study

February 26, 2015 By Pensare Group Leave a Comment

From Strategic Plan to Execution – The Grand Canyon of Business Gaps

gears_3Have you ever noticed the similarity between strategic planning and a dental visit?

Both fall into the category of “must do” (or for some – “should do”), and both activities are strongly disliked due to a very normal human instinct called pain avoidance. For many leaders, planning means pain – which is unfortunate given the very high return on investment that is possible when planning is done well. Why is the experience painful? (A question we like to ask new clients about their previous strategic planning experiences.) “Boring”, “Uncomfortable drawn out process”, and (the real kicker) “No impact/outcomes as a result of two days in a boardroom.”

Is it any wonder that busy leaders and executives avoid an activity that leads to no outcomes after two days trapped in a boardroom?  The biggest challenge our clients share with us about their previous planning processes is the enormous gap between the plan on paper and the action required to make the plan “real.”   Recent PMI research (Talent Management – Powering Strategic Initiatives in the PMO) confirms that 88% of executive leaders consider strategy implementation important, yet 61% say their organization are struggling to bridge the gap between strategy formulation and day-to-day implementation.  This is, without question, the Grand Canyon of business gaps.

A few ideas on how to bridge that gap, based on our work with clients across multiple industries and varying size/maturity:

Address the “discomfort” issue head on.  Without absolute engagement from your leadership team at the outset, the plan stands virtually no chance of becoming reality in the weeks/months ahead.  Discuss the fact that a really good strategic plan requires some suspended disbelief (envisioning a future that is fundamentally different from today), and a high degree of comfort with the “grey” area of business.  There are no right and wrong (black or white) answers in planning – at least – no recognizable correct and incorrect planning options.  Share this insight from Roger Martin (Business write/academic) who sums up the issue extremely well: “The problem with smart people is that they are used to seeking and finding the right answer; unfortunately, in strategy there is no single right answer to find. Strategy requires making choices about an uncertain future. It is not possible, no matter how much of the ocean you boil, to discover the one right answer. There isn’t one. “

Link every strategy with an action.  Ensure you have someone leading the discussion who will push you and your team towards action.  For example, you decide as a team you would like to break into a new market, or develop a new service offering.  A good strategic planning facilitator will work with you to explore “what does that mean”.  What can we reasonably do in the next 3 months, 6 months, 12 months that helps us make progress towards that goal, and is realistic given our current operating environment? What needs to happen (next) to start to see that goal realized, and who is responsible for taking those first steps?

Understand the difference between plan and planning. If you have been in business for any period of time, you have likely experienced the “beautiful” large strategic plan document, full of graphics and forecasts and visionary statements about what the future will hold, which is then shelved (literally and figuratively) as everyone returns to the daily whirlwind for which they are responsible.  The record of the discussion amongst your leadership team is “the plan”, and it can take many forms. (Believe me – the format does not warrant the level of attention accorded it.)  The missing piece for many teams is the “planning” – the process by which you regularly revisit the goals, assess progress, adjust and move forward.  This is what is meant by an evergreen planning process, which does not require another two days in the boardroom – a one hour monthly or three hour quarterly check-in will keep your plan fresh and more importantly your team engaged in planning.

Filed Under: Action Planning, Alignment, Execution, Planning, Strategy

February 20, 2015 By Pensare Group Leave a Comment

Conventional Wisdom: Truly Wise or Dated Advice?

“You can’t manage what you can’t measure.” – “The customer is always right.”
–  “Lowest price wins!”

We’ve all heard the tried and true adages that govern our business environment.  These knowledge nuggets have been around for decades, and continue to be quite widely accepted as “truth.”  Yet, the business environment we experience today bears very little – if any – resemblance to that of the previous millennium when these insights were initially shared.

Believe me, I’m not yearning for the good old days.  The technological transformation we experienced in the last several decades is nothing short of incredible and brings so many new opportunities within reach that we would never have thought possible.  These new opportunities bring more change rendering the “status quo” an outdated concept.

CEOs and their leadership teams constantly shift, adjust and move on to the next great idea, next competitive threat, or next innovative approach.  Clients regularly tell us that the speed of change is breathtaking and that teams today work harder, faster AND smarter, yet barely seem to keep up with the changing environment and shifting client expectations.

So, change is our new norm.  Why, therefore, do we so often fall back onto “conventional wisdom” when examining our business and contemplating strategic initiatives for the year ahead?  What do I mean? Here are a few examples.

“If you can’t measure it, you can’t manage it”

As a trained economist and someone who believes vehemently in goals, action plans and tracking for accountability, this particular conventional piece of wisdom should be my favorite quote.  This is one of those classic business “truisms” that is indeed true for many aspects of operations, quality control, and financial processes.   Unfortunately, this concept has been extrapolated by some (many?) to mean “if you cannot measure it, it isn’t happening.”

We deal with C-level executives who understandably need to know the potential outcome of their investment in their people.  Sure we can, and should, measure business results and remain extremely focused on outcomes.  However, those tricky “soft skills” (and that even more elusive “attitude” element) will always and forever remain key to success and very, very hard to measure.  We know we have succeeded in our work when senior executives tell us that they can “feel” the change in the environment, and they can “sense” the enthusiasm of their team.  By definition, these are outcomes you cannot measure, but you surely do try to manage because these “soft skills” significantly affect measurable outcomes.

“Customer satisfaction is key.”

More truisms with great validity – up to a point.  But if interpreted literally, these can profoundly limit organizational growth.  For example, if the goal is to deliver exactly what the client expects on time and within budget, do you get a satisfied customer?  Yes.  A loyal repeat customer?  Not necessarily.  Ensuring teams go to the next level, lead with value and truly exceed expectations is how to develop truly loyal customers – those who keep coming back and continually refer you into a new client base.

In our view, loyalty is a huge differentiator that creates an engine of growth that protects a company from their competition and secures their spot on the leader board for years to come.

“Lowest price wins!”

Sales is full of “truisms.”  My least favorite is “Lowest price wins.”  There is no argument that having a lower price helps you close in most situations, but in today’s environment where time is one of the of the most precious commodities – who out there can afford to re-do a project if the “lowest bidder” fails to do the job right the first time.  Come on – we’ve all been there.  Have you ever hired the cheapest contractor to fix the basement, and then had to hire the higher priced contractor anyway?  If you truly believe “lowest price wins,” then how do you explain success phenomena like Starbucks, Apple, the Red Door Spa, or more locally – the Inn at Little Washington?  In our experience, customers want the highest value possible, and that is a combination of price and outcomes (both measurable and unmeasurable).

Isn’t it time to shift the conversation beyond “conventional” wisdom and think creatively about the current environment we face (challenges and opportunities) then develop some new absolute truths to guide our decision making for today’s ever changing environment?

Filed Under: Customer Experience (CX), Customer Loyalty, Focus, Performance, Value

June 11, 2014 By Pensare Group Leave a Comment

Customer Experience and Customer Loyalty – $B Dollar Insights from Oracle and Sprint

“Customer experience (CX), customer loyalty… honestly Lesley I cannot keep track of the buzz phrases.  Isn’t this just customer satisfaction presented with different language?”  This was a question posed to me recently from the CEO of a growing government contracting firm who was genuinely convinced that the management consulting practitioners had created yet another “paradigm” to capture the essence of what we already know.  Fair enough – there is no shortage of old ideas dressed up as new insights when it comes to business advice!

But sometimes the language really does matter.   Listening to senior leaders from Oracle and Sprint at a recent CXPA* conference in Atlanta further underscored that conviction.  Jeb Dasteel (Oracle’s Senior Vice President and  Chief Customer Officer) shared fascinating analysis that demonstrated exactly how a strategic focus on the quality of the customer relationships has led to a significantly higher customer spend – 8 times higher to be precise.  How did they do this?  “Relentless focus” on customer and employee engagement, truly understanding what drives your customer’s loyalty and engaging directly with your customers were just a few of his keys to success.  (Reach out if you would like to hear more about the “how” – it was a rich discussion.)

And if significant revenue increase is not sufficient justification for investing in strengthening customer experience and customer loyalty, listen to what Bob Johnson, the President of Sprint Retail, had to add.  By focusing on customer experience (and in Sprint’s case – intense focus on first call issue resolution as opposed to “hold while I transfer you to my colleague), 74 call centers have become 40, operating expenses have been reduced 50%, and Sprint has saved roughly $1B annually since 2009.   Using a motto of “serve, solve, satisfy”, Sprint is realizing enormous financial returns without even taking into account the reduced “churn” of customers and the positive impact that is having on their bottom line.

In our experience, the difference between satisfied and loyal customers can represent millions of dollars in revenue, reduced sales and marketing costs, and lower operational/customer service expenses.  Understanding why is the simple part – stronger customer relationships results in more repeat business, new sales into existing customer accounts and last but never least – referrals to new customers.  That is not a new insight for senior management and executive teams. Where it gets interesting is when you transfer that knowledge down into your organization and ask the teams who actually deal with the customers on a daily basis – “How do you provide value to our customers, and how can we strengthen those customer relationships?”  Sprint and Oracle are deservedly proud of their CX turnaround – what are you doing to shift from good to great, and create loyal lifelong customers?  We’d love to hear.

*CXPA – Customer Experience Professionals Association (yes – there is even an association now…)

Filed Under: Customer Experience (CX), Customer Loyalty, Focus, Sales

January 22, 2013 By Pensare Group Leave a Comment

Exceeding Expectations – Giving Too Much?

loyalty_street“Here is a simple but powerful rule … always give people more than they expect to get.”  -Nelson Boswell

We talk about the importance of creating loyal customers.  It’s certainly one of the most important goals of any company because a loyal customer will return to you again and again.

And, more importantly,you’ll have a loyal customer who will tout you to others – providing the most effective … and inexpensive … marketing there is.

So what do you do to create loyal customers? We know that it requires much more than providing satisfactory goods or services. And while doing it faster or better than the competition will help build loyalty, it simply is not enough.

The key to loyalty is to surprise your customers. Give them more than they expected to receive – and be consistent about it.

Exceeding expectations is more than just going the extra mile … its taking customers down a road they didn’t even know existed. In other words, it’s not a formula, rather an ability. An ability for members of the organization to actively listen, empathetically understand the situation, and wisely deliver a response that the customer values. Surprise your customers. Give them more than they expected to receive – and be consistent about it.

A few years ago I was planning a trip for my family to Italy. As this was a major excursion for us I decided to meet with a travel agent who specialized in Italian vacations. She spent a great deal of time with me, chatting about what I was looking forward to doing and seeing and the kinds of experiences that my family valued. We planned to focus our limited time on the major destinations – Rome, Venice and Florence. But as I talked with the travel agent about our love of the countryside and how we hoped to avoid tourist traps, she came up with a completely different itinerary that included small towns and seaside villages I’d never even heard of. We had the time of our lives, and the travel agent had a client for life … and the word of mouth exposure that goes with it.

Surprising your customers requires thinking outside the box and being creative.

But most of all it means listening to their needs and wants and adjusting your offering to provide them with the best possible experience. And if you don’t have the decision power to deliver, find someone who does!

Do this and you’ll create loyalty … and a lifelong customer who will bring others who value being listened to and understood.

Filed Under: Alignment, Performance, Productivity

December 20, 2012 By Pensare Group Leave a Comment

First Hear to Be Understood

“Intellectuals solve problems; geniuses prevent them”  – Albert Einstein

listen_clip_artHow often have you worked through a sales discussion, building in questions, getting clarification and buy-in from the prospective customer along the way, only to face hesitation when you ask for a commitment?

Even if the prospect understands the value of your product and recognizes the benefit, sometimes he or she won’t be willing to commit. Why does this happen? There are many possible reasons. The prospect might be the type of personality who needs to investigate every option before coming to a decision, or be someone who fears making a mistake. She  might simply be gun-shy after a recent poor decision.  It’s your job to find out long before you ask for a commitment.

It is far too common for someone in a sales situation to create problems and concerns by focusing on issues that don’t interest the prospect – ever seen someone prattle on about what he thinks you want to hear without using standard illustrations that don’t apply to your  specific needs and interests.

To prevent objections you must first question and then listen so you can later be heard.  Seek to know your potential customer, his specific concerns (those that keep him up at night), and what he actually wants. Remember they don’t always make this easy. You have to work for this level of detail. Use “open-ended” questions to gain as much information and insight as possible.  Look for personal needs or wants – those issues that have personal meaning, and therefore will have personal value (not just organizational value).  Also, look for clear measures like time savings or cost savings.  If you’re using your “open-ended” questions, properly, you should have a good understanding of what they need versus want. And you’ll recognize what is organizationally motivated and what is personally motivated.

Once you begin to understand, think before you speak.  First, pick out the key items that have value to the customer and confirm you picked the right ones.  Her feedback loop often surfaces latent needs.

Next, mentally map out how your offering addresses the issues she values the most. Structure your dialog to discuss how your capabilities address the most important issues.  Now, test your theories through possible outcomes.  “So, if growing the topline by 25% is your key goal, would it benefit you by having access to [fill-in-the-blank]?”  What happens if you’re not able to get access to good, quality [fill-in-the-blank]?”

This is how to prevent objections. Think about it.  If you don’t fully understand the prospect’s issues and the value of resolving them, then you haven’t asked enough questions and you become just another vendor.  The customer probably doesn’t believe you’re hearing him, and therefore concludes you can’t help him – like everyone else who doesn’t understand his needs.  That’s why cusotmers raise objections or create pushback. They make you work for it.

Following our approach not only removes barriers in your dialog, but also raises your credibility and creates competitive differentiation in the sales process. You’re different and they like it.  This approach also increases your ability to deliver an outcome the customer actually values, instead of an outcome you believe she values.

Filed Under: Active Listening, Objections, Questions, Sales, Value

November 18, 2012 By Pensare Group Leave a Comment

When Objections Give You an Advantage

“Obstacles don’t have to stop you. If you run into a wall, don’t turn around and give up. Figure out how to climb it, go through it, or work around it.”  -Michael Jordan

wall_as_obstacle

 

Michael Jordan is right, of course. But in the sales context, let’s take that one step farther. Don’t just think about how to overcome objections … figure out how to use it to beat the competition.

Objections can come at any point in the sales process. An objection is a legitimate concern about you, your organization or the product you are offering. And it’s important for you to anticipate and unearth objections as early as possible to turn them to your advantage

Here’s an example. Let’s assume your service is significantly more expensive than the competition because you provide follow-up customer support others don’t offer. Most likely your prospect knows the competition is cheaper.

Confront the objection head on and early on by introducing the issue first.  If you put it on the table, you recognize the concerns and are able to openly position around the objection.  Use questions like “What have you experienced in the past buying [XYZ]?”  “What have you seen in the market that you like?…Don’t appreciate?”  Listen and learn. Then, you’re ready to address the common objections that might rise in their context.

Once you understand someone’s experiences – good and bad – you can begin to anticipate what the prospect is thinking and position how your approach brings value.  In some cases, you can shift your approach to address his concerns. For example, if someone finds it difficult to swallow $50K because once he took the risk and the vendor didn’t deliver. Maybe you can work on options that reduce the prospect’s risk– he might even pay more for the peace of mind!

It helps to contrast benefits of having what you offer with the consequences of not having it. In the example above, you might make the case that your approach saves the prospect frustration and staff time, thereby making your offering more cost-effective in the long-run. If you really want to bring the point home, use a strategic bragging story to bring it to life. Be sure to use concrete data when relaying how your service saved another customer time or money.

Use questioning techniques to get information on possible objections first. Ask what the prospect thinks are the biggest obstacles to make sure you’re not assuming but listening.  Confirm that your understanding of the obstacles is correct – this often surfaces new information you would not otherwise get.

Most importantly, control the objections dialog by putting objections on the table as early as possible rather than waiting for the customer to bring them up at the end.

These tactics are more likely to yield the response you want:  a positive decision when you ask for a commitment.  By anticipating the prospect’s concerns you have simplified her ability to commit. By connecting solutions to objections to value that’s prized by your prospect, you’re building credibility demonstrating you anticipate her needs, understand the value of her time and anticipate the sunk cost and frustration of wasted staff time.

Filed Under: Objections, Obstacles, Questions, Sales, Uncategorized

November 1, 2012 By Pensare Group Leave a Comment

One Good Question is Worth a Thousand Half Baked Answers

mp900387691It was roughly two years ago when a highly intelligent, and successful prospective CEO client of ours slammed his papers on the boardroom table and pronounced “I cannot lose one more client to the competition”.  Imagine our surprise, given the only question we had asked at this early point in a preliminary meeting was very simply this: “What has been critical to your success and growth over the last few years?”  Naturally, questions raced through our heads: Were we having two entirely separate conversations?  Had we lost him to an unrelated train of thought?  It can be a challenging moment for a consultant, when it appears your prospect has left the station, so to speak, without you.

That concern proved entirely unfounded. This well timed question prompted some serious thinking and a response that went straight to the core of the main challenge facing this CEO.  How do we strengthen the value we bring to our clients and retain ALL those customers we fought so hard to land in the first place? Our query about success drivers had led the CEO to quickly make the connection between his core values surrounding customer service, his company’s track record in the early years in meeting client needs and delivering beyond expectations, and the company’s more recent experience with service delivery challenges and client loss.

We have had the good fortune of working with this CEO and his team from that day to this, implementing a customer focused, management driven, employee supported strategy with one end goal in mind: customer loyalty.  We have worked with every member of the company (from the front desk, to the management team to the warehouse fork lift operators) and it has been a real joy to watch that culture of “service beyond expectations” lead to rapid revenue and profitability growth.

This change does not happen overnight however.  In working with their operational managers who deal with the clients every day, we worked extensively on asking questions with one major obstacle to overcome. Questions are harder to deliver than answers. Why? First, because many believe that when we ask questions, we somehow undermine our own “expert” status and we may (even worse) look stupid.  Solving that resistance to questions can be worth millions (literally). Ask yourself this question – how many questions do I ask in a conversation with my prospective (and current) clients?  Then ask yourself, when I am preparing for a meeting, how much time do I devote to preparing what I am going to say as opposed to questions I might ask? You’ve heard this before – God gave us two ears and one mouth, and they should be used in that proportion. Implementing this pearl of wisdom and strengthening your questions will have a lasting and highly profitable impact on your business!

Filed Under: Customer Loyalty, Performance, Personal Development, Productivity, Purpose, Questions

October 21, 2012 By Pensare Group Leave a Comment

Satisfaction Guaranteed – So What?

Did you know it’s time to throw out the old notion that having satisfied customers is the path to a successful business?

Think about it. If you’re merely satisfying your customers than you’re earning about a “C” grade.  You provided a product or service, and got paid for it. It was a tit-for-tat exchange and that’s the end of it. There’s no certainty of return business. Customers are just as likely to use someone else the next time if all you have done is fulfill their request and deliver what they think they paid for.

Think about the restaurants you return to again and again, or your regular drug store or dry cleaner. Sure, price and location have something to do with where you spend your money. But chances are you frequent these businesses because they go out of their way to create an emotionally positive experience for you. I stick with my pharmacist because he takes the time to talk to me about all of my medications and any possible side effects when my prescriptions are being filled. And why did I choose my grocery store from a handful of options that are just as close and carry the same items? It’s the little things like the cashier who hands me an extra store coupon from behind the counter and the stocker who addresses me by name then shows me where he just stocked the unblemished apples.

These interactions have something in common: they create a positive and personal experience between me, the customer, and the store representative – Joe (the cashier) or Sally (the stocker).Personal attention with a giving attitude creates a relationship resultinng in my loyalty to the individual and, ultimately, the store.

Loyal customers come back … again and again. In today’s tough economy that’s critical.  By definition the loyal customer comes back to use your business repeatedly, which in turn produces a much longer and stronger income stream.  In fact, businesses that emphasize customer loyalty tend to grow about twice as quickly as those that do not.

Here’s another benefit. The loyal customer feels vested enough in your business to tell others about their positive experiences. That’s not only free advertising, but also the most effective advertising there is! Recommendations from friends or colleagues are far more effective that any advertising campaign – and it works to drive business. Think about how you came to select your favorite doctor or dentist and you’ll know exactly what I mean. More than likely it was a recommendation from a friend, rather than a splashy ad, that guided your selection.

If customer loyalty is the goal rather than customer satisfaction, you might ask, “How do get there?” It can’t be an afterthought; it has to be part of your organization’s culture.

That means everyone in the organization needs to be on the same page — valuing customer loyalty and aiming for that with every personal interaction.

Filed Under: Customer Loyalty, Performance, Sales

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