Derby Management's "Competitive Edge" Blog

When I first began as a rookie salesperson, I had just been promoted to be president of the medtech company where I had moved up through the ranks from manufacturing and engineering and then to the corner office.  I had never sold anything and had zero understanding of what marketing did other than knowing they spent a ton of money on trade shows, conferences and producing whitepapers.  The second week into the job, our number two sales guy, Alan, showed up in my office and suggested that we take a sales trip together to his largest hospital in NYC.  A great guy...strong numbers, very affable, bright-but in a folksy kind of way- and a very hard worker.   I still remember that first call:

#1 lesson from Alan was to dress down from the plaid suit.  😎
#2 was to go in the hospital on the 2nd shift since it was less hectic and quieter. 
#3 was to bring a box of donuts to the nurses since they knew what was really going on.
#4 was to understand that knowledge was power, and the currency was just being human.

Today, we would term that process a "Discovery Call", and we would put it into the second step in our sales process funnel and allocate specific tools and checklists to the Discovery call wrapping all of that up in Hubspot CRM technology that would automatically remind us in three days after the call with follow up tasks and templates to complete.  Yes, it's mechanical, efficient, and highly disciplined, and, yes, it's not very human by itself, but it works.  The secret to successful sales is to add personality and trust to any sales process that's full of steps and metrics. 

Which is better-sales process or the human touch?

Alan was just a superb salesguy!  Always #1 or #2 in a team of 50 plus salespeople.  He had a superb memory and a built-in innate ability to drive sales "The Alan Way", and as a result he had his own process down to a science.  That's the good news. 

The unsettling news was that no one else could sell "The Alan Way" since his process came down to style on the attributes side of things and his own selling skills on the process side of the equation.  Plus, although he had a huge geographic territory, he only focused his time in the density of two very concentrated cities and then further pinpointed those to the specific hospitals where he knew exactly what was going to happen in in terms of replacement products given his closeness to the nurses using donuts as his currency   The bottom line in his "Streets-not-States" strategy was that by focusing on only 5% of the available hospitals in his entire geography, he always got to whatever the bonus number was above 100% of his quota. 

The majority of us are not Alan, nor do we have his discipline, so people like me need to "resort" to our "Process & Tools & Technology & People" solution to make sure that nothing falls through the cracks...and because I just don't the whole Joey BagaDonuts approach. 

The Joeys who are still in the sales game also do not have the skills or the style that Alan had...all they have are the donuts.  As a result, they rely on stupid and affrontive emails like this one below that I just received yesterday:  
Hello Mr. Derby,   I hope you're having a great Tuesday.
My name is xxx xxx, and I'm the CEO at xxx.  We are a new member of xxx. While browsing the member directory I came across your profile highlighting your company and wanted to make a brief introduction about our solutions.  We are a cost reduction and profit improvement company. We have had significant success working with venture capital, investment banking firms, private equity groups, and consulting firms seeking to create equity value within their portfolios or for their clients.  Attached are a few case studies of those successes. After doing some research, I'm interested in finding out more about your company. I look forward to hearing from you.

That's definitely a Joey BagaDonuts email, but unfortunately it came without the donuts! 

Just another example of a worthless marketing and a sales approach so bad, that I just had to blog about it this morning.  Messaging like this is especially affrontive now in this time of chaos when it's even more critical for all of us to focus on what it takes to provide true customer value while never using the words, "trust me on this!"

Right now, all of us are trying to figure out what the new rules for both Sales and for Marketing will be for whatever the new normal will be in 2021. 

• Today, there is no new normal, just 60-day sales tactics focused on survival. 
• First, we need to hit this month's number on Friday.
• Second, we need to get to July 4th and then take a long weekend-breather.
• Third, only then can we spend time figuring out what it takes to get to Labor Day. 
• Around that time, we should then know enough to begin to write the new rules for 2021. 

Have a great day selling today, tomorrow and Friday!

TUFTS FALL SEMESTER MARKETING PROJECTS

At Tufts where I'm a professor teaching Marketing in the Entrepreneurship Center, I am now actively looking for marketing projects for the fall semester. Yes, we will be teaching in the fall with a blended mix of video and visual content, distance learning and F2F-socially-distanced mechanics.  All safe-all the time!

The manner in which I teach is based on my practice of "Content in Context", where I and my guest lecturers provide the clinical teaching content and the real-life experience which is then taught within the structure of six teams of juniors and seniors delivering fully developed marketing plans to their host companies at the end of the semester.  The companies range from established startups with revenue to mid-size corporations.  The projects are often full marketing plans for the company or a marketing plan for the launch of a new product or service.

The results over the years have been just excellent both for the students and for their companies, and, for a couple of reasons, this semester's results were the best ever...just over the top.  Right now, I'm taking applications for next fall's course, so if you're interested, just connect with me by email at jack@derbymanagement.com, and I will set up a quick call to review the logistics with you and send you an outline of the program.  All of the applications need to be in no later than June 19th.  The syllabus and the projects go out to the students on July 5th.    

If at any time, you have a need for a confidential sounding board management coaching or for Sales or Marketing stuff, just connect with me at any time.  Text or email me, and I will quickly set up a call.  I'm a pretty good listener.  Obviously, no cost, just an opportunity to listen intently and make a few recommendations based on decades of experience.

Be safe, be positive and enjoy today and have a great Memorial Day Weekend!

Be IMPERATIVE, and not just Vanilla !

There's no such thing as a born salesperson

As most everyone knows, I didn't come up the management ladder through Sales or Marketing, but through  Manufacturing and Engineering, and then by luck...or mistake...got promoted to become president of a good size division of a major corporation.  As a result, the first day of my being president was also my first day of running a sales organization.  

It's been an absolutely superb summer !

At Derby Management we are big believers in constant education and focused networking to refine your skills, learn new strategies and grow professionally.  We strive to provide our clients superior service through our own knowledge and experience since all of our team has sat in the chairs-just like you-as CEOs, heads of Sales and heads of Marketing of both startups and middle market companies in a wide variety of industries.  

I have the privilege of living and working in a few interesting places in New England

Saturday morning found me at the Winhall General Store in downtown Bondville, Vermont (pop. 647) talking with Red, who was out reading the Brattleboro Reformer on the front porch bench, along with his yellow lab, Blue. 

Another perfect day in paradise, and for me a perfect day to "get things done".  "Getting things done", is what promoted me on Friday afternoon to load up the car with cats, equipment, bags of Home Depot garden rocks, and, most importantly cases of cheap red wine, and make the trek from the NH beach to the VT mountains. 

I used to have a cat named "Bean", and when I was spending a lot more time at the house in Vermont, she and I would go walking in my woodlot, Bean following dutifully behind me as the afternoon light filtered into the perfectly manicured woods.  For 40 years of living in this valley where I come from six generations of Vermonters living there before me, my motto always has been... "A clean forest is a happy forest".

A breakfast with customers or referral partners is always my favorite meal of the day, and one of life's little pleasures is my careful selection of raspberry or strawberry "jelly", or sometimes, just to feed my wild side, a spoonful of marmalade.  Simple pleasures for a complex life.

Back-in-the-day... MRP, ERP, Quality Circles, ISO900, DFM, KANBAN, and a myriad of other manufacturing productivity improvement tools and technologies were the structural keys to the success of the resurgence of quality and manufacturing superiority in the U.S.  

In the '70's and '80's, as a direct result of the new-age religions of processes, standardized tools, technologies and metrics preached by the High Priest, W. Edwards Deming, and national activities such as the Malcolm Baldridge Award, U.S. manufacturing steadily pulled itself back to worldwide superiority in such diverse markets as cars, appliances, in semiconductors and general electronics.  This refocus to massive productivity and quality gains, resulting in much higher levels of customer satisfaction, took a national call-to-action spread over a couple of decades, and it worked, and it continues to work today with US manufacturing productivity output doubling over the last 15 years.

And Yet, Sales Productivity in too many companies Sucks...

• In the last 10 years, selling costs rose faster than revenues.
• In the last 5 years, SG&A costs have increased 12.5% (Alix Partners 2013)
• According to Sales Benchmark Index, in the last 3 years, sales productivity declined for the world’s largest sales forces.  Only 41 of the SBI 100 companies increased sales productivity per employee.
• There's been an average productivity decline of 2.5 % over the last three years.

Joe Gusfaston, Chairman of Brainshark, the industry leader in Sales Readiness, who consolidated many of these stats, noted in an article published by Forbes that "Sales enablement is about how to improve productivity of sales by squeezing out inefficiencies and maximizing effectiveness,”    

Leaders like W. Edwards Deming, back-in-the-day, for manufacturing, and guys like Joe Gustafson today for Sales Readiness & Enablement, understand the sales productivity crisis and are actually doing something about it.
 

which is Why We've Teamed Up with Hubspot on March 20th For...

"Constructing a Winning Blueprint for 2017"

Most of us in our firm grew up on the manufacturing floors and in the engineering labs of our prior companies until we came to understand the reality of the simple business credo that..."Success in business is about just two things: Sales ! and other stuff" (Professor Howard Anderson, Harvard Business School).

We've also been devotees about everything Hubspot since the company was founded.  We use their tools, they are customers of ours, and we of them. 40+ of my Tufts alums (very happily) work there.  The Hubspot technologies are the backbones of my course in Marketing, and most recently my new course "The Art & Science of Sales".  Many of my class lecturers are my alums now working (very happily) at Hubspot.  All of this is very symbiotic, the process works perfectly and everyone benefits.

As a result of that partnership, we decided to co-host with Hubspot this "Constructing a Winning Blueprint for 2017" event on March 20th at the Hubspot headquarters in Cambridge, which is focused directly at the senior leaders (CEOs, and Heads of Marketing and Sales) of manufacturing companies. Kicking off with an introduction by Hubspot co-founder, CTO, and tech visionary, Dharmesh Shah, this unique event will outline the intersections of systems, processes and metrics between the rapidly evolving worlds of Sales & Marketing productivity and the productivity improvements being made on the factory floor.

The Agenda:

• 11-12 PM -Lunch & Networking
• 12-1 PM-Welcome and presentation from Dharmesh Shah, CTO and Co-Founder of HubSpot
• 1-2 PM Manufacturing CEO Panel, facilitated by Jack Derby
• 2-3 Q&A, Discussions and Networking

Questions?  

Just connect with me at jack@derbymanagement.com or with my partner, John Routhier, who, with Hubspot, is in charge of this event at john@derbymanagement.com, and we'll fill in the details.

Have a great day selling today! 

Head Coach