This is an 8 minute video on failure from Honda via JustSell.com.  The 8 min. may change your perspective:

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That is a tough question since I think values are primarily hardwired into each of us.  We assess this trait in sales candidates – call them motivations.  Each person tends to have two of these motivators that drives their behaviors (some people have 3 primary motivators).

We have assessed salespeople who were in slumps, who were unemployed and who were candidates.  These are stressful situations that should impact their values.  When we had the opportunity to assess the same people at a later date (years later), we did not see an appreciable change in their values/motivations.  Granted, this was no scientific study, but rather a consistent observation.

BusinessWeek.com provides this article – Value-Based Motivation – that discusses how values change in a recession.

One thing that makes motivation particularly difficult to manage is that individuals differ significantly in what they value and events can change what they value. What is very rewarding for some individuals, say, a day of golf with the boss or even an all-expenses-paid vacation trip to Hawaii, may not be seen as a reward by others. The same thing goes for praise by the boss and most forms of recognition.

Recessions can have a significant impact on what people value. Not surprisingly, job security, and financial rewards tend to become more important in periods of recession. It is particularly important that organizations skillfully manage these two drivers of employee motivation during recessions. How they manage them needs to be fine-tuned to the business strategy and how a company is affected by the recession.

Interesting point in that recessions have a global impression – the recession is outside of my control so my motivations are influenced towards monetary and security rewards.  That seems like a logical assumption…perhaps a macro-level influence like a global recession can sway motivations.

As a manager, it is important to know what motivates your salespeople and what rewards them on an individual basis.  This point is valid no matter what the economy is or isn’t doing.  These two factors provide the beginning of a roadmap to gaining the most production out of your sales team.

If you haven’t discovered these motivators in your current team, may I suggest a test assessment?

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The news stories are flowing about layoffs, downsizing and closing in this brutal economy.  One such story from abcnews.com shares stories from readers regarding extreme situations for being let go.  This one was amusing:

After a traditional face to face layoff session, my company tried a new kinder gentler approach. They called a big meeting and announced that every employee had e-mail back on their computer that would tell them if they still had a job. I didn’t!

I’ve been let go during layoffs before and there isn’t any easy way to do it.  However, it seems to me that if your communication strategy is to use some form of electronic notification (like Radio Shack from a few years ago), you are probably taking a bad approach to it.  Just a thought.

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Inc.com is celebrating its 30th birthday with some fascinating articles including an interview with Jim Collins.  The interviewer asked for his definition of entrepreneurship which involves a paint-by-numbers vs. blank canvas analogy.  However, the follow up question and answer was notable:

It has to do with your ability to handle risk, no?

Not risk. Ambiguity. People confuse the two. My students used to come to me at Stanford and say, “I’d really like to do something on my own, but I’m just not ready to take that much risk. So I took the job with IBM.” And I would say, “You’re not ready for risk? What’s the first thing you learn about investing? Never put all your eggs in one basket. You’ve just put all your eggs in one basket that is held by somebody else.” As an entrepreneur, you know what the risks are. You see them. You understand them. You manage them. If you join someone else’s company, you may not know those risks, and not because they don’t exist. You just can’t see them, and so you can’t manage them. That’s a much more exposed position than the entrepreneur faces. But there’s lower ambiguity on the paint-by-numbers path: very clear but more risky. The entrepreneurial path: very ambiguous but less risk. Of course, the truth is that it’s all ambiguous, anyway. If you think you can predict the future, you’re crazy.

That ought to get your mind racing this Monday morning.  As being someone on both sides of the proverbial fence, I know exactly what he is saying.  The key component to managing risk is seeing/knowing the risk.  Ignorance of the risk is tolerable to those who don’t possess the entrepreneurial spirit.

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Cuts, layoffs, workforce reductions…the stories are everywhere in the media today as this economy takes it’s toll on business.  Clearly it appears that more cuts are underway in March and will be reflected in the next labor statistics report.  This approach is needed during a recession so no company can be blamed for taking this drastic move.

But how far should companies cut?

There are no easy answers to that question, but I think there is a general principle companies should follow.  Reduce only enough to make your company agile in this marketplace while minimizing your gaps in performance.

Here is an excerpt from last week’s Herman Trend Alert (sorry, no link):

Recently the Human Capital Management Division of the IBM Institute for Business Value released a white paper with its recommendations for leaders coping with the global economic crisis. Implementing this advice, IBM believes that “organizations can use this downturn . . . to position themselves for future opportunities.”

First, they advise organizations should make informed resourcing decisions. Base those informed decisions on capabilities and gaps, including the costs of rebuilding resources, costs of lost productivity associated eliminating training, and even the opportunity to acquire entire divisions or companies.

Second, and this suggestion echoes our book “Lean & Meaningful”, focus on “core” versus “non-core” activities. Look for opportunities to outsource and in-source, concentrating on what the corporation does particularly well. These moves may, in fact, improve agility by creating a smaller organization that is better able to respond to changing market conditions.

Facing imminent layoffs, organizations are most vulnerable to lose their best performers—those in the highest demand in the labor marketplace. These are people the enterprise can not afford to lose at this critical time. A clearly defined performance management process, coupled with “stay interviews” will help tackle this issue.

I have seen some companies cut too deep in the wrong areas which left a tremendous gap in their business.  As you may expect, the company was not aware of this potential liability.  Cutting to improve agility is the best method for this economy.  This approach requires an objective view of your team and a manager with the understanding that there are no sacred cows.  An effective layoff may mean letting go of someone who would not be considered in any vein during a robust economy.

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These are skittish times, aren’t they?  I have seen this among reps and myself – every little item is scrutinized.  Communication, email, reports…I find myself looking for subtle clues in all of them.  Is a layoff coming?  How bad is it?  What is going to happen next?

These are not productive thoughts.  As a manager, how do you quell these fears?  There isn’t one move, tool or approach that will cure it, but a concerted effort will help to minimize your team’s anxiety.

Selling Power offers up an article that has some feel-good points that I question.  However, there is something in the article that caught my eye:

Don’t make promises you can’t keep. Your mother probably told you this growing up and it’s just as important today. Manning says she often sees managers make the mistake of promising a desired outcome rather than acknowledging uncertainty. For instance, don’t tell your staff there won’t be any layoffs at your company because you can’t possibly make that guarantee. “Make no promises,” says Manning. “Don’t build up false expectations because that just creates more fear.” Instead, be honest about what you know, even when – especially when – the news isn’t good. Your reps would rather have the hard truth than a pleasant lie.

Those last two lines are straight-up truth.  The best way to allay these fears is to be forthright with your team.  I believe managers often error in thinking their employees cannot handle the truth of the present situation.  This is a leadership mistake that creates distance between the manager and the employee.

I will close with the next suggestion from the article – it is a good one:

Start a blog. Blogging is a great way to keep your people updated because it has an informal, conversational feel and reps can check it at their convenience. Manning says she knows of several CEOs who are having “tremendous success” with blogging right now, using it as a vehicle to keep employees posted on what’s going on, answering their questions and correcting rumors. Sales managers, she says, could expand those topics to include sales successes, news about products and so on.

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I think in this economy you could simply state “any” as the best.  Well, that may be a bridge too far, but you get my point.  Fortune magazine released their annual list of the top 100 companies to work for.  Here are the top 10:

10. Nugget Market
9.  Goldman Sachs
8.  Methodist Hospital System
7.  Genentech
6.  Cisco Systems
5.  Wegmans Food Markets
4.  Google
3.  Boston Consulting Group
2.  Edward Jones
1.  NetApp

How about this excerpt on the number 1 company NetApp:

Typical of its down-to-earth management ethos, NetApp early on ditched a travel policy a dozen ­pages long in favor of this maxim: “We are a frugal company. But don’t show up dog-tired to save a few bucks. Use your common sense.” Rather than business plans, many units write “future histories,” imagining where their business will be a year or two out.

I’m green with envy over that travel policy.  Oh, and the company has over $2 BILLION of cash on hand.  It is a new employment world these days and I would say the management team at NetApp has it figured out.

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Selling Power provides another good article – Expert Advice for 2009 – that makes 4 relevant suggestions for this year.  Clearly the economy is foremost on everyone’s mind and is affecting sales in a negative way.  As they say, the show must go on.  You can read the article for the 4 suggestions from 4 different sales trainers, but I especially noted these two:

Shift to opportunity mode. Are you in survival mode or opportunity mode? A survival response to the economy is rooted in the “we just need to stay afloat” mentality. Leaders in this mode react by reducing head count, decreasing employee development, and controlling expenses, resulting in employee cynicism and a sacrifice of the company’s long-term ability to sustain growth. Leaders in opportunity mode, on the other hand, view the economy as a chance to improve their business. In times like these, they typically focus on upgrading the work force and on strategic cost cutting. The result is greater employee commitment and a strengthened ability to sustain growth. When “opportunity” leaders must cut head count, they eliminate their “C” & “D” performers. Lee Colan, president, The L Group, www.theLgroup.com.

Focus on leads. Sales organizations that bolster dedicated investments in lead quality and demand generation will be rewarded with significantly higher sales productivity. That goes for 2009 and beyond. The typical company is struggling in the area of leads. The length of time it takes to close a deal is longer than ever and an increasing number of opportunities are culminating in a “no decision” outcome. Moreover, marketing support has already dropped about 20 percent and may go deeper in 2009. That drop in support means sales teams will need to do more work on their own to fill up the front of the pipeline at a time when the number of leads required to close the same amount of business is going up. The good news: by honing in on this one area, you’ll see a significant impact on your results. Lee Levitt, program director, IDC Sales Advisory Service, www.idc.com.

Leads and opportunities are the key in this economy…in any economy really.  The importance of this topic is heightened during a downturn.  I was on the road last week and can tell you that there are still deals occurring, companies are still growing and new opportunities are available.

I agree with the author’s statement that companies need to be in opportunity mode right now.  Survival mode is similar to the prevent defense in football – usually it prevents you from winning.  Survival mode may lead to death.  It is important to stay aggressive and move forward.  One benefit is that some of your smaller, less financially stable competitors may disappear.  But be wary for the last move of a dying company is a desperately low bid.

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The Herman Trend Alert touches on the ever-popular Gen Y/Millennial trends and traits in their most recent email (sorry, no link).  The perception of this generation still needs some improvement…drastic improvement (emphasis mine):

Recently JobFox.com conducted a poll of recruiters with predictable results—Millennials were judged to be the least effective performers of the four generations now in our workplace. A paltry 20 percent of the responders characterized them as “generally great performers”. Compare this statistic to the 63 percent who said Baby Boomers (43 to 62 years old) were great performers and 58 percent who gave high marks to Gen Xers (29 to 42).

True confession – I have a general perception of Boomers being stagnant, almost stuck in a 1980’s mode.  I apologize now, it is just a perception.  Yet, you can understand my surprise when reading survey results such as the aforementioned quote.  Instantly, I found myself thinking, “I bet they interviewed mostly Boomers for this survey.”

The email progressed to show how misguided the Millennial perception is.  The author supplies 4 major motivators for Millennials:

The most sought-after motivator is balance. The Millennials do not embrace the value of the Boomer-created nine-to-five work week. They work best when they can set their own hours.

Second, they want to be on the leading edge. Millennials understand that technology is changing rapidly. If not updated continuously, their skills promptly become obsolete. “They have seen their parents and neighbors downsized and right-sized out of jobs.” Staying marketable is justifiably very important to them. Even though in a recent JWT survey, 60 percent of Millennials agreed that “an employee owes loyalty to their employer “,companies that do not provide new learning experiences will see this generation seeking job opportunities elsewhere.

Third, they do not want to be treated “as junior anything”. Millennials want to begin contributing right away. Companies must do a better job of helping younger workers see how their work is vital and how that work relates to the bottom line of the company.”

Finally, Millennials are looking for stability—especially now. Gen Y workers can be loyal team players as long as they can balance work and life goals, gain new learning opportunities, and feel like they are supporting company goals. The employers that will be the most successful over the next two decades will be the ones that can best inspire and engage this challenging generation.

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The Herman Trend Alert offers up some expected predictions, some insightful ones and some surprising ones for 2009.  Here is one that falls in the expected/not surprising category:

1. Certain Skill Sets Continue to be in Short Supply.

In spite of the global economic slowdown and massive layoffs, certain skill sets are in short supply. All but the most short-sighted employers will continue to respect talented workers in all fields for their contributions.

I don’t think that is surprising at all, but not all companies subscribe to that approach.

Here is an insightful prediction:

3. Fear and Apprehension Reduce Productivity.

As we have written about some months ago, there is a significant percentage of employees who are worried about the future. Unless addressed, this fear will reduce productivity and employee morale. Wise employers will show their appreciation for their workers and reignite passion and excitement with activities and contests that challenge employees to achieve high performance levels.

Absolutely true.  I have seen this bunker mentality developing over the past few months and it definitely impacts productivity in a negative way.  The consistent “depression” drumbeat of the hyperbolic mainstream media doesn’t help.

And here’s one that will make recent Gen Y grads groan:

10. Older Workers will be Particularly Valued this Year.

To get the work done without resorting to hiring expensive contract help, some employers will begin mining the rolls of their retired workers and hiring them back on a part time basis. These seasoned professionals have a lot to offer their former employers. The companies will probably need to conduct less training and most certainly will have a more reliable workforce than recruiting Millennials.

What do you think of that last line?  I would say that is a bit of a shot, and not a fair one at that.  I understand the approach of rehiring retired workers and it that is a valid approach.  However, I have seen companies that are set in their ways – the energy, vitality has almost disappeared from their company.  The culture has settled into this lethargic, phlegmatic style…and it is dangerous in a slow economy.

My experience has been that young workers help change this culture.  They bring energy, ideas and, well, a fresh approach.  I’ve seen younger workers invigorate a stale company.  Yes, you have to train young employees, but I think this prediction greatly discounts the upside of hiring Millennials in this economy.

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