Management by objective....




Definition

Management by objectives is a dynamic system which seeks to integrate the company's need to clarify and achieve its profit and growth goals with the manager's need to contribute and develop himself. It is a demanding and rewarding style of managing a business.

Explanation

Since the best managers have always practised management by objectives, the cynic's view that it is merely old wine in new bottles is perhaps valid. However, it is timely and useful to restate basic principles and to demonstrate that there is a practical approach which will help all managers to improve their performance. Companies are meeting increased pressures of competition and rising costs and management’s task is becoming more complex with accelerating changes in markets, technology, and social environment. Yet, many companies are content to follow tradition based on past success. The explosive growth in knowledge had led to more specialization, with the result that fewer general managers and entrepreneurial types are being produced. Moreover, the time span and range of objectives set by companies is often dangerously restricted. Management by objectives must create a climate of opinion in which these and other problems are recognized as well as providing the framework of techniques for solving them.

Illustration

When a worthwhile system of management by objectives (MBO) is operating in a company there is a continuous process of:

1. Reviewing critically, and restating, the company’s strategic and tactical plans.
2. Clarifying with each manager the key results and performance standards he must achieve, in line with unit and company objectives, and gaining his contribution and commitment to these.
3. Agreeing with each manager a job improvement plan, which makes a measurable and realistic contribution to the unit and company’s plans for better performance.
4. Providing conditions in which it is possible to achieve the key results and improvement plans, notably:
   1. An organization structure which gives a manager maximum freedom and flexibility in operation.
   2. Management control information in a form, and at a frequency, which makes for more effective self-control and better and quicker decisions.
5. Using systematic performance review to measure and discuss progress towards results, and potential review to identify men with potential for advancement.
6. Developing management training plans to help each manager to overcome his weaknesses, to build on his strengths, and to accept a responsibility for self-development.
7. Strengthening a manager's motivation by effective selection, salary, and succession plans.

These techniques are interdependent and the dynamic nature of the system can be shown as in the diagram above. It follows that the development of managers, which is a matter of vital importance to every company, only makes sense if it is integrated with the purpose of the business. Looked at in this way, management development is a valuable by-product of running a business efficiently.

Chris Wilkinson.

Certified Business Behaviour & Attitudes Analyst.

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net

Statements that Influence the High ‘S’ Supportive (non aggressive) team buyer type….

*   “I feel you are open to a number of possibilities, and I want to recommend this plan of action.”

*   “There is so much potential success here in what you can do. It is important to keep abreast of what others

are doing.”

*   “Make some calls to others who have anticipated a similar change. I have a comprehensive list that will assist you in this activity.”

*   “While you will not change just for the sake of changing, you can readily see how this will add to your already effective system.”

*   “You will have an opportunity to see the way in which I work with the plan. That will provide you with an opportunity to get some additional clarification.”

*   “By accepting this system, you are really buying insurance for yourself and your family. There is a great deal of security involved.”

*   “A number of individuals and organizations have already found the system to be very reliable. Here is a list of those groups.”

• “The factual information and the conclusions will be of real interest to you. Check it over to see how it works.”

Presentation Tips for your presentation.

1. Take it slow and easy; if you go too fast, you’ll lose the sale.
2. Provide plenty of proof and statistics.
3. Earn their trust and friendship by visiting about family and hobbies.
4. May require additional visits for reassurances before the sale is made.
5. Emphasize your proven products.
6. Earn their trust with facts and figures.
7. Take it slow and easy.
8. Make repeat visits and be sure all questions are answered.

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net

Statements that Influence the High D-Dominant buyer….

• “No doubt you’ll want to try it out. You’re the type of person who will make it work.”
• “While it is difficult to accept just anything, you’ll be able to see both the advantages and disadvantages.”
• “Other people can carry on with the program once you have explained it. You’re the person who will get the credit. After all, you are the one making the decision.”

• “This is totally new—really, there is nothing that will compare to this idea.”
• “The nice thing about this plan is that you don’t necessarily have to do it all yourself.”
• “In a few minutes you can see the way it will serve your needs.”
• “This program sells itself. In just a few words I can demonstrate the practical advantages.”
• “This will provide an opportunity to get credit for what you do. It is something you can call your own.”

Presentation Tips.....

1. Don’t waste their time. They won’t want lots of facts and figures; just hit the high points and get to the bottom line.
2. You and the product must appear credible.
3. Can be difficult to switch from current, trusted suppliers. But, once switched will remain highly loyal as long as you provide service.
4. Will not want to see many testimonials, research, data, etc. May delegate this research to subordinates.
5. Will be impressed with an efficient, no-nonsense, business-like manner.
6. Will be interested in new products.
7. Be concise and business-like. Don’t waste time with idle talk. Get to the point quickly, solve their problems fast and make the sale.

 Working with you.

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net

Selling successfully to the friendly, outgoing buyer…. 

(AKA a ‘high I buyer).

 (Part 2 of 4).

Statements that Influence the High I buyer….

*   “Looking at the comparisons I’ve made will help you decide which approach is better.”

*   “You will want to delegate some of these tasks to others since your time is valuable.”

*   “Many people recognize the need. You would be the first person to recognize that. However, one individual has to lead the way, and I’m sure they can rely on your judgment.”

*   “By combining this idea with what you are presently doing, you have a combination for future profits, and you will be building on your present success.”

*   “You’ll want to try something that provides you an opportunity to expand your present operation.”

*   “This is an overall summary, which will be helpful for you to see the feasibility of the program.”

*   “It’s the kind of program that utilizes your skills in working with an innovative idea.”

 Presentation Tips:

*   Spare the details; they will not want to hear them.

*   The buyer will often buy easily from you with only a minimum presentation. But beware! The competition can steal the buyer away from you just as easily. So give plenty of follow-up service.

*   The buyer will be interested in new and innovative products. They will try almost anything under the right circumstances.

*   The buyer will want to talk a lot, socialize, etc. Buy him lunch or a cup of coffee and you’ll have him sold.

*   Eliminate lots of details. Just hit the high points. Show him new products, socialize and provide plenty of follow-up.

Working with you.

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net

First of a series of 4

Statements that Influence the High C (as in Cautious) buyer:

Aka: the fearful, cautious, careful, analytical buyer who does not want to make a purchasing ‘error’.

• “A program such as this should have standards which permit a careful evaluation of the quality. It will stand upto your high standards of operation.”
• “With something this important, let’s set up several sessions where we can clarify all the possible alternatives.”
• “There’s always the excitement of putting something like this to work. You are going to be around here a

long time, but I’ll be surprised if this system is not here when you’re retired and enjoying your leisure.”

• “Other people are doing it, and it works for them. You’ll probably end up doing it better than they are.”
• “You’re in a position to examine the facts, interpret them and draw the conclusions.”
• “I am sure you’ll take a very close look at the findings.”
• “Remember, we are discussing a planned change. You will be able to work with it over a period of time to see

how the system works.”

• “There has been a great amount of input into this idea, which ensures a quality program.”
• “You would be interested in knowing how thoroughly we have researched the entire operation. It’s been

written up in the literature, and we can carefully go over this together.”

 Tips for your Sales Presentation.

1. Client needs lots of proof, background information and proven results before making a purchase.

Needs to take time, absorb details and digest facts before going to the next step.

2. Highly suspicious of new and unproven products. Use testimonials or plenty of research information to back up your presentation.
3. Don’t rush, but don’t waste time with small talk. Get right to the point with plenty of facts and figures. Be sure that all the customer’s questions are answered.

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net

Have you ever hired someone (sales person) who didn’t meet your expectations?

Are you short on resources, money and time to spend identifying qualified candidates?

Would it positively affect your bottom line your recruitment process consistently delivered qualified candidates that have been strategically matched to the job?

If you answered “yes” to these questions, you will benefit from a job matching approach that benchmarks a specific job, not the person, in an interactive process. A recent case study revealed that by using Business Pilots patented job benchmarking process, two different sales teams were positively transformed:

Company A

Company A’s sales manager was having a major problem with his sales force -- 74% turnover. That high rate of turnover came at a great cost to the company’s bottom line. In fact, it’s estimated that it can cost upwards of twice an employee’s salary to find and train a replacement, not to mention the damage to morale in remaining employees. To address Company A’s sales force issue, the JOB itself was benchmarked using Business Pilot’s ‘Work Environment’, job-related process. The sales manager was then able to compare all current and new salespeople against the benchmark. Each and every salesperson was put on a personalized development and management plan based on the job benchmark. The results? Company A’s sales team experienced 0% turnover for the next 24 months.

Company B

At Company B, a new sales manager inherited a sales team that ranked No. 22 out of 22, or dead last. The new manager immediately benchmarked the sales position using Business pilot’s Work Environment process process, and he compared his current salespeople to that benchmark. He quickly discovered that a massive 75% of his sales force did not match the sales position benchmark. By replacing that 75%

with superior salespeople who did, in fact, match the benchmark, his team skyrocketed to No. 3 out of the 22 sales teams.

For both Company A and Company B, job benchmarking revolutionized their sales teams, increasing the profitability of each company. When you have the right people in the right jobs, you will create more dynamic teams with higher engagement, retention and development.

To learn how JOB benchmarking can revolutionize your hiring practices, contact Chris Wilkinson, Business Pilot at  (905) 275-2907.

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net

Are your salespeople making the same style of presentation to every buyer?

 People buy from people they like---BUT what do they like???

The following statements are True:

·         People tend to buy from sales people who have behavioural styles similar to their own.

·         Sales people tend to sell more to people with behavioural styles similar to their own.

·         Sales people who are aware of their behavioural style and learn to “blend’ with their customer’s style are able to increase their sales.

                

How many sales do your salesmen lose because of not ‘behaviourally” treating your customers in the buying style that the customer prefers?

PEOPLE BUY FROM PEOPLE THEY LIKE!

(ie: Birds of a feather, flock together)

Some buyers:

·         Like you to be direct                *   Like personal talk.

·         Like to have fun                       *   Like time to think.

·         Like new products.                  *   Like to negotiate.

·         Like proven products.              *   Like showy products.

·         Like a lot of data.                     *   Like traditional products.

·         Like to be touched.

                                           …and some DON’T!

                        

              There are 4  behavioural languages, ONLY 4, and every human being on Earth fits into one of them………..

·         Dominant.       )

·         Influencer.       ) 

·         Supporter.       )    Known as D-I-S-C.

·         Compliant.      )

                    If your salespeople do not understand these 4 styles of buying behaviour and how to adjust their selling style and sales closing strategy, ie. the DISC language, you are saying goodbye to valuable sales dollars. The single, best way for the company chief sales executive to increase sales dollars and customer satisfaction is to train the sales team in the DISC language and to apply the most effective techniques to close the sale successfully.

            Your salesman must know:

1.      His own behavioural style.

2.      Know his customer’s buying behavioural style.

3.      How to blend his selling style, with that of his customers, to eliminate friction in the sales process.

4.      To apply the type of sales close technique most successful for a specific buying style.

            A 3 hour seminar presentation to your sales force/customer service people at your next sales meeting.

            Interactive: each participant is supplied with a 20 page assessment of their personal selling style , a BENCHMARK ---- (10 minutes only to complete on the internet, 24/7, in advance of the meeting) plus 12 different closing strategies applicable to different buying styles.

          

           IDEA:  Invite your customer’s sales people to attend. An excellent opportunity to “bond” and show them that you care.

           Upon request, I will send you a 13 slide sampler of the presentation, plus an offer for a complimentary/no obligation selling style assessment, so that you can fully appreciate the powerful report and seminar content.

           I look forward to hearing from you with any comments/ questions that you may have.

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net

Discounts can easily destroy your profits....

If you sell your product or service at a gross profit of 40%:

• Offering a 5% discount means you need to sell 14% more volume to make the same dollar amount of gross profit.
• Offering a 10% discount means you need to sell 33% more volume.
• Offering a 20% discount means you need to sell twice as much!
• Offering a 30% discount means you need to sell four times as much!
• Offering a 40% discount means you don't break even no matter how much you sell!

These numbers also work in reverse. The higher your price, the less volume you have to produce for a given dollar amount of profit! Even a small price increase can generate significant additional profit.

We know what you're thinking: What if I increase my price so much that I drive away most of my customers? If you've done your homework and are providing more perceived value for your customers than you are charging, this won't be a problem. Even companies that have a monopoly in the marketplace are limited by that perception of value. When a business comes out with a new product or service and they are the first to market, they may be able to charge high prices initially. But those higher prices can't be sustained for very long. Other businesses will see those prices and develop their own lower-cost alternatives. Examples throughout history abound. And the higher the initial price and profit margin, the faster a competitor will come to market with a less expensive alternative. Don't let this possibility keep you from increasing your prices!

Instead, enjoy the additional profitability and reduced workload. Use that increased profit to BUY YOURSELF SOME TIME for the strategic work of reducing your costs, laying the foundation for growth, and researching new market opportunities. Reducing your costs ultimately allows you to reduce your prices while maintaining the same level of profitability, but you need time and money to create that value for your customers and for your business. Don't sell yourself short. You and your business are worth it!

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net

Strategy tips to sell more products on-line…..

Product pages, blog posts, social networks, and newsletters are the various distribution channels that brands can leverage with compelling content. Using these channels in innovative ways is what sets companies apart from their competitors and how consumers decide where to spend their money. Your website needs to convey trust, rank high on search engines for visibility and be found by people searching specifically for your products with intent to purchase. Here are eight important strategies to improve your website’s content and help you more products.

     Analyze your competitors content as well as your own – Create a list of criteria to review other websites so your research is objective-oriented. Becoming inspired by how relevant websites use content in creative ways may shine a new perspective on problems you’re facing.

1.                           Which products are top selling and how are they marketed?

2.                           Is there an outstanding use of content that helps demonstrate product value?

3.                           What is the personality and tone of their content?

4.                           How is content being used throughout the payment process?

5.                           Are there any product reviews? – note what customers talk about.

6.                           Once a product is purchased, are there actions a user can take in the confirmation email for more engagement?

7.                           Do they offer any promotions, giveaways or host contests?

8.                           How are they using blog posts and social networks to promote their products?

9.                           What content and products are most prominent on their mobile site/app?

10.                     What could be improved about their content overall?

User feedback is the most direct method of knowing if users are grasping the intentions of your content. When users embrace your website and are receptive of your brand, it’s more likely they’ll have intent to purchase.

Survey existing and potential customers and let them know you appreciate their time with an incentive like a freebie, discount, or coupon to ensure you have their full attention. Your goal is to ask them questions that gather their thoughts on your products and brand.  Some sample questions to consider:

1.                           Do they understand the value of your products?

2.                           Did they find all the information they were looking for on your website?

3.                           What do they enjoy about your brand, website and products?

4.                           Do they have any feedback or requests for your products?

5.                           Do they find your pricing reasonable?

6.                           Why did they choose your product over your competitors? (if this applies)

7.                           Have they read or created any product reviews?

8.                           Would they recommend your products to friends and, have they already?

9.                           Did they share your products on any social networks?

What other websites have they purchased products from?

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net