Archive for May, 2012

30
May
12

Destroying Your Company

This week I am attending the annual Nashville homeschooler’s conference…while here, I also have on my list to complete my preparations for next week’s Xchange event in Charlotte – Unlocking the Secrets of High Priced Consultants. The point of my talk centers on building the kind of team that does more than sell products; they work alongside the asset owners of a company.  This of course requires that VARs have the right kind of people on their teams…

In last night’s sessions, one of the speakers gave an amazing talk on resolving anger – this also came up in last week’s business conference…apparently the number one issue in personnel problems is angry employees.  Managers and Sales people (and I guess anyone) bringing anger problems to the office from home, or having them develop at work, can kill an organization.  The speaker gave many great illustrations as to how this pushes people to seek revenge, and will actually drive people in your office to make decisions that can ultimately destroy customer relationships, disrupt projects, and undermine the entire organization.  In other words, anger takes control of this person’s life to the point that they no longer care who knows or what destruction occurs. Their total focus is overtaken by irrational behavior…don’t let this thing get in the way of success…let if go and move on.

2012 2012, David Stelzl

29
May
12

Are You Relevant?

The Solution Provider 500 Conference (formerly VAR500) kicks off just a week from today.  I am looking forward to this event because I can drive to it.  Actually, it’s just about 30 minutes from my house!  (By the way, that looks like my long time friend Chris Squier, of Ingram Micro, on the landing page!)

As I prepare for my Wednesday morning session (9:15 if you are planning to attend – in Charlotte at the Weston), I’ve been reviewing notes from many of the resellers I have worked with over the past year.  One of the questions that must be addressed is, “How do resellers remain relevant to the businesses they serve in the coming five to eight years?”  In case you missed the HP article I linked to several days ago, it’s worth reading.  But one paragraph strikes me as urgent – the one that compares HP to IBM over the past decade:

“Two visiting consultants are waiting for the elevator at a big company’s headquarters. One is from HP, the other from IBM. The consultant from Big Blue pushes the up button to visit the CEO on the top floor. The HP man, by contrast, hits the down button to see the IT guy in the basement. The message was clear: IBM was consorting with kings while HP was on hands and knees, fixing the plumbing. It wasn’t just a metaphor either: IBM’s pretax profit margins, just under 20%, were more than double the 8.7% HP achieved in Hurd’s last year.” – Fortune

This issue is central to my topic – Unlocking the Secrets of High Priced Consulting (See page 2 of the agenda)…Are your sales people consulting or vending?  How will your sales people remain relevant as technology continues to evolve?  Do you look more like HP, or are you pushing the “UP” button in the elevator lobby?  With cloud technology, virtualization, security, and mobility trends; increased competition (EMC brought on 5000 mid-market focused partners in the US last year); and greater scrutiny on price and cost containment…what do successful VARs look in the coming years? Do you can them VARs, or are they really IT consulting companies? Will your sales people make the next wave of technology sales?

© 2012, David Stelzl

28
May
12

Back from the Chicago Business Leader’s Conference

Over the weekend I met with (SMB) business leaders in Chicago to discuss principles of running a successful company.  My topics included Hiring Principles of Successful Companies and a session on Time Management.  We also heard from experts from the World Trade Center on setting up international trade relationships, methods of reducing company healthcare costs, establishing systems for success, negotiating skills, and a lot more.

A few points from my talk on hiring:

1. One of the best firing decisions I have ever made – a system engineer who thought that his skill set was so important that he could repeatedly show up for work late without excuse.  He told me our company would fail if we fired him since our current projects required his skills.  I let him go, hired a guy with half the experienced, and within a few months that new hire passed him in ability and went on to generate more profit for our company than any other engineer on the team at that time.

2. One of the biggest hiring mistakes I have ever witnessed (not in my company – but a close work associate), ended with that newly hired financial officer essentially taking over the company, selling it, and cutting the original owner out of the deal.  This guy was clever, experienced, and a professional criminal.  I shared with the attendees how it happened, and how to avoid it – bottom line, make sure you know who is managing your money.

3. One of the best hiring decisions I have ever made involved a school teacher looking to enter the IT consulting world.  He came on at an entry level salary – but eager to learn and happy to have a salary that exceeded his teaching income.  Within a short period of time he proved himself capable of taking over our support center, recreated the entire system including terms and conditions, SLAs, and pricing, and oversaw the entire operation.  Very patient with troubled clients, and doing well today, still working in this industry!  Of course his earning potential multipled quickly.

Hiring and firing – it’s not always obvious what to do, but it pays to learn how to identify great potential.  It also pays to look beyond a person’s current skill set.

© 2012, David Stelzl

23
May
12

The Roof Top Experience

When I have a great sales experience I take note!  How often does a sales person do a great job calling on you?  We’re all selling, learning how to sell better, etc.  But sometimes its fun to be sold to, just to see how others are doing as they do what we do…today was one of those days.

This morning, a rep from Paragon Construction came by to look at my roof…I have several companies coming by to review the project and deliver a quote, but he’s the first one in the process.  It was a great experience – a few points on my experience are worth noting:

1. It turns out that Chris Nguyen is not only selling, but he is one of the owners.  The thing that impressed me here was his passion for the business.  He didn’t show up with his “President” title – in fact, he doesn’t have a title on his card.  Only after he demonstrated a high level of expertise and customer care did I care who he was.

2. He took at call from his wife while here – this may seem unrelated, but his attitude towards his family was exceptional.  That tells me he isn’t just putting on a show to make a good impression – there’s some character in there.

3. His approach was completely educational.  No pressure to “act now” and no marketing manipulation tactics.  He spent his time collecting relevant data, educating me on what matters most, and giving me some recommendations on what to do about it.

4. By the time he was done, we had become friends.  My wife will tell you – I have a high degree of sales resistance.  I don’t cozy up to the sales person who pushes a friendship to get the business.

5. At some point his passion for his business was evident.  This wasn’t a sales gimmick, but rather a chance to share his vision with a potential customer.  In this end, people buy into your passion and excitement long before they buy into your product.  In a commodity business, which he is in, there are few points of differentiation.  In my opinion, Chris provided them.

© 2012, David Stelzl

18
May
12

Reflections On Developing the Go-To Market Strategy

It’s not often that I get to Chicago and the weather is just right – low 70′s, low humidity, clear skys, and best of all, no traffic to or from the airport!  It’s been a productive week.  Some lessons from this week’s strategy meeting are in order…

1. It’s never about the product.  We spent two full days on strategy, only naming product in passing, or by accident.  Marketing strategy that builds on features and functions is destined to fail.

2. Synergy among the leadership is so important.  We had this, and it showed…Jim Collins is right (of course), when he says, “Get the right people on the bus, others off, and make sure everyone is in the right seat before getting started with strategy.

3. Most of the resellers are competing on the same items – this makes everyone look the same, reduces margin across the business, and pushes up the cost of doing business.  There is a better way – in fact we discovered several.

4. Many of the things vendors are pushing VARs to do with MDF are useless…again, there are better ways to spend marketing dollars, and I believe we found some that will change the course of business over the coming months.

5. A clear vision of where the company needs to go is essential – it is the filter that everything else gets measured by.  We started here, taking the time to come up with a clear, concrete, unified vision, and it paid off through the two days.

PS. Note the photo taken from my window seat…down town Chicago.

 

© 2012, David Stelzl

17
May
12

Chicago, Day Three – Marketing Strategy

It’s my last day in Chicago, at least for this week (I’ll be back next week).  Last night when I returned to my room I looked at the front page of the Wall Street Journal – Headline, Meet the Meeting  Killers.  Keep in mind, I’ve just spent 8 hours meeting with a group of business leaders, discussing business and marketing strategy; everything from “who we are” to “what we need to become” as the tech market continues to evolve.  Unlike this article, which is the norm, our meeting was highly productive.  In fact, we didn’t have any of the problems highlighted in the picture to the left…why?  Here are some things we did to avoid problems:

  • The premeeting, meeting; First, I did take the time to talk with all of the participants before coming up here. I wanted to understand each person’s needs and goals for this meeting before having the meeting – this makes for an effective, highly focused meeting.
  • Our agenda is highly structured.  Not that we don’t have brainstorming and flexibility in our meeting – just the opposite.  But we have planned times to create and think outside the box in an organized way; we have a way to organize and consider ideas – and ways to stretch the imagination of each participant.
  • We have a facilitation process that works.  Rather than just talking, I use a process called The 6 Thinking Hats, developed by Dr. Debono.  Of all of the facilitation programs I have seen, this one really works.  I learned this method from a certified 6 Hats Trainer; I’ve also studied more than one book on the subject. If you want to run effective meetings, you need something to move people from spectator to involvement, but with order.  But you also need a way to draw out ideas from those who might not see themselves as creative.  You need positive perspective from the naysayer, and you need the optimist to consider the cautions.  You need a way of getting everyone in the group to consider things from many angles.  Debono refers to this as, “Lateral Thinking”.

By planning, structuring, and using a great facilitation tool, I believe the group would agree, we’ve accomplished in one day, what many groups take weeks to sort through.  And by the end of today, we’ll have a plan to execute on.

© 2012, David Stelzl

16
May
12

Real Chicago Pizza

After the four month diet, a 25 lb weight loss, and no pizza during that time, I was excited to be able to dive into a Gino’s East pizza – my first official stop on this trip to Chicago. Not that I am going right back to my old habits of eating junk food, but an occasional pizza gives me something to look forward to after many salads, no sweeteners, no gluten, and nothing that has preservatives, dairy or cheese in it. In other words, my four months consisted mostly of salad, veggies, all-natural chicken and beef, and rice – and lots of water.  The great news is, my  triglyceride count went from 500 to a little over 200 in the first 2 weeks of the diet – without any medications.  I’ll have the new numbers within a week, which will include my cholesterol numbers as well.  I expect some pretty good readings.

All of that aside, you haven’t had Chicago pizza if you haven’t been to Chicago.  Having traveled all over the world, I have yet to find a city that has a real Chicago style pizza.  Knoxville has a pizza place advertising it, but it’s not real (I think it’s called Stephens).  Then there’s the Chicago pizza chain, which is also a far cry from the real thing.  Charlotte, my home town, has just recently made it to authentic NY style pizza with Tony’s.  I expect it will be a while before we have Chicago pizza.

Now that I’ve had my pizza fix, it’s time to go to work…

© 2012, David Stelzl

15
May
12

Hiring and Firing – Thoughts as I Prepare to Speak

Hiring great people – next week I will be speaking to business leaders in Chicago on the subject of hiring great people, along with a few words on when to call it quits.  While preparing, I was going through hundreds of interviews I have conducted with college graduates, sales people, technical people, and those I interview now through my mentor program.  So much of an interviewer’s time is spent on analyzing skills (which are important), yet most of the firing I see, happens as a result of character flaws.

The skill set is important, but when I think of the superstars I’ve hired, (and perhaps some of you are reading this right now,) it was a character trait that drove them to excellence, whether they had the skills or not.  One hiring decision comes to mind; a person who had very little in the way of technical expertise, but a strong determination to learn and excel.  I hired him as an entry level SE, but within a year (just 12 months) his billable revenues exceeded every other engineer on the team (and the clients he was serving were extremely happy).  His appetite for learning was so great, he pursued the certifications, learned how to sell and manage, and went on to run a very successful technology company after working with me for over five years.

I remember another hire I was involved with.  He started out as an entry level technician, but he was ready to do whatever was required to find new business, with aspirations of becoming a great seller.  He was eager to learn and to master the art of selling.  While his eagerness lacked some of the skills and understanding, he was willing to read the books, listen to instruction, attend some classes, and practice he presentation skills. Today he closes most of the business his company sells.  I can honestly say, he is an excellent sales person, and it didn’t take him years to master selling.

On the other hand, I think of many who road upon their certifications, but refused to work as team members.  Some didn’t show up to meet their commitments, others were slack with their sales efforts, and many just couldn’t work alongside their peers.  In the case of great character, there is always a chance to help that person get what they need or move to a position they can master, if their current job isn’t a fit.  But with those who just can’t get along; can’t acknowledge authority, or who are just too lazy to get moving in the morning, their just isn’t much hope.  Character isn’t something you are just born with.  It might have a lot to do with your upbringing, but it’s never too late to start building character.  For a list of essential character traits to look for in your next hire – check out the section on character in my latest book, From Vendor to Adviser.  The adviser must have great character if they are to win.

© 2012, David Stelzl

10
May
12

Meeting w/ Business Leaders In Richmond Va.

Nearly all of those who attended today’s seminar in Richmond received complementary assessments through Sklar, the sponsoring reseller, along with Continuum (the company who recently acquired part of the Zenith Infotech managed services company). Just before speaking I had the opportunity to review some of the latest security trends – many of these are highly relevant to small/medium business owners.  A few sound bites that made their way into my keynote:

  • 760 iBahn customers (companies in including Marriott) have been compromised through the iBahn network…
  • Hotel hotspots are under fire using a sort of “Man in the Middle” attack that install bots on one’s computer – this would also apply to any hotspot including those free networks at Panera and Starbucks.
  • An alarming number of Android apps containing bots
  • Unsecured smart phones
  • Recent hacker activity developing between China and the Philippines (This will be interesting to watch as pressures grow).

Also, consider the number of recent reports coming out of China, alerting us to efforts to steal US intellectual capital!  This should cause every business owner to feel a sense of urgency, to make sure their company secrets, new inventions, and business strategies are kept in a safe place.  The biggest issue I see as I visit different cities is simply that business leaders are unaware of how urgent these threats are, and are assuming they are safe when they don’t see evidence of cyber attacks on their own computers.  The best attacks are stealth – company leaders need to know this, while consulting companies must develop the tools and skills to accurately assess security risk.

© 2012, David Stelzl

09
May
12

Lessons from a Recent Webinar – HP and What Not to Do.

About a month ago I presented via Webex – an Ingram Micro sponsored session on how to sell security and other risk related projects. The content was focused on the security sale, but the truth is, Risk Mitigation is a powerful motivator to buy.  I offered people a free copy of my House & Cloud book (in PDF format).  Today I received an email from one attendee who is reading The House & the Cloud as a result, and has also picked up my new book, From Vendor to Adviser.  I was encouraged to read, “This is totally transforming my business.”  In the email, he attached an article on HP, a company who has failed to apply the concepts I bring out in both of these books.  Here’s the article – it’s worth reading if you aim to stay in business.

“For a decade now the company has sometimes seemed more like a tawdry reality show than one of the world’s great enterprises.”  Check the link for more on this…

© 2012

 




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