Are your targets realistic?

actual sales vs budget

Are your targets realistic?

The graph above is of a  business’ sales performance vs annual budget. The actual performance is shown in red, the budgeted performance for the next year is shown by the black lines.

The boss of the business believed in ‘managing by target’. Each year he set the sales budget at 120% of the previous years sales. But as you can see there was a disconnect. The company’s products had been superseded by new technology, the business was in decline. The sales manager prepared the graph above showing how previous year’s forecasts had worked out. The boss eventually realised that you could not manage by targets alone. The business was sold shortly afterwards. The sales manager got another job in the same company.

Are your budgets and forecasts founded on reality? Find out more about finance, planning and budgeting on one of the following Kent Trainers’ courses:

Finance Essentials for Non-Financial Managers

Financial Planning and Budgeting

Finance for Directors and Senior Managers

Senior Leadership Programme (2 days)

Team Leadership (2 days)

Kent Trainers Associate up for award

We are very pleased, but not surprised, to see that Jackie Barrie, one of our associate trainers who specialises in sales and marketing has been nominated for a ‘business book award’.

Jackie has an outstanding knowledge of marketing techniques and runs many of our sales, marketing and social media courses. If you would like to find out more about the networking, sales and marketing courses we run visit the Kent Trainers website click the links below.

• Making Social Media work for you – 29th February
• Sales Negotiations – 16th April
• Marketing Essentials - 21st May

A link to the details of Jackie’s book the ‘Little Fish Guide to Networking’ can be found on the Kent Trainers website.

10 mistakes made by new managers

You have just been promoted to your first management job. Possibly you are now managing the same group of people that you were working with the day before. But the relationship has changed. Here are 10 common mistakes that new managers make:

1. Taking too much upon yourself
   As a manager you are responsible for your team and for meeting its objectives, but that does not mean you should micro-manage and take everything upon yourself. If you do you will be perceived as overbearing and your team will think you do not trust them. Delegate, but keep overall control.
2. Delegating too much
   The flip side of point 1 is to delegate too much without maintaining control. Maintaining your authority is vital. As a manager, you can be cordial and respectful with your teammates, but you can’t be their best friend.
3. Forgetting about YOUR boss
   Now you are a manager, don’t forget about your manager. Just as before you were promoted, your job is to help your boss. Find out what your boss and your bosses boss want from you. Make time to talk to your boss and make sure that don’t surprise them with unexpected news if you can help it.
4. Making promises you can’t keep
   Before you accept a commitment, make sure you can fulfil it. As a new manager it is tempting to say yes to everything. Your team and your boss will not thank you if you fail to keep your promises. NO is a powerful word if used correctly.
5. Focussing on the task rather than people
   Before you became a manager your main job was to complete tasks assigned to you. Now your main job is to help others complete the tasks you assign to them so your team performs well. It can be difficult to make the transition from managing a task to managing a team. If you can show each member of your team that you care about them as individuals and help them to achieve their goals they will appreciate you and work hard for you.
6. Not appreciating your team
   You probably have worked with your team for years but that doesn’t mean you know them. Learn what makes them excited and how to motivate them. Get to know them as individuals. Make them feel appreciated. They are what will make you as a manager. Give them your attention and time
7. Failing to protect your team members
   From time to time members of your team will come under pressure from people outside your team. Other departments may try to blame them for perceived shortcomings. Your job as their boss is to stand up for them and make sure they are treated fairly. They will repay your loyalty.
8. Not admitting that you don’t know
   Just because you are the boss does not mean that you are suddenly expected to know everything. If you don’t know, say so, but if appropriate make it you job to find out. Take advice. You will grow in credibility if you are seen as someone who admits they don’t know and is willing to listen and learn from anyone.
9. Changing for the sake of change
   There is a temptation as a new manager to make your mark straight away and to change the way things are done. Resist that temptation. Observe how things are done for a while. Ask why things are done that way and listen and learn, there may be a good reason that was not immediately obvious. Make sure you have all the facts and only then consider change. Make sure you can explain any change to yourself and to others.
10. Forgetting to be human
    Even though you are the boss, you are still human. You can laugh, share jokes and make mistakes. Remember to be professional though. Being seen as too close to part of your team can be seen as favouritism and can alienate others.

It is tough being a manager for the first time. Experienced managers probably forget just how hard it can be. Don’t be afraid to ask for help and training from your boss and HR department. Managing people is both the most complex and most rewarding part of any managers job.

Learn more about how to be a new manager on our Supervisory Management course.

Are your customers irrational?

Looking at the TED Talks website, I came across a talk by behavioural psychologist Dan Arieley which made me think about how rational we all are in our buying decisions. As he points out, economic decision making is not hard wired into us in the way that other aspects of our behaviour are. This can lead to us making some seemingly odd decisions, and leave us open to influence.

One example Dan Ariely gave was of an advert he came across in the Economist magazine. The advert gave three options for subscribing to the magazine:

Option X – Subscribe to the online version for $59
Option Y - Subscribe to the print version for $125
Option Z - Subscribe to both the print and online version for $125

When he asked a group of his students which option they would choose, the answers were:

Option X - Subscribe to the online version for $59 – 16%
Option Y - Subscribe to the print version for $125 – 0%
Option Z - Subscribe to both the print and online version for $125 – 84%

Option Y seems to be redundant.  But is it?

Dan Ariely ran another experiment with his students, this time leaving out option 2. The results were:

Option X - Subscribe to the online version for $59 – 68%
Option Z - Subscribe to both the print and online version for $125 – 32%

So, it appears that a seemingly redundant option Y has influenced buying behaviour. Could it be that the contrast of having an option which appears to be poor value makes other options appear more valuable?

The full TED Talk by Dan Ariely can be viewed here.

Next time you see an offer which includes a seemingly undesirable option ask yourself  ’What would I do if that option was not there?’.

Can you make relative value work for you in your marketing? Find out more about the techniques of marketing and sales on our marketing essentials course.

The power of written commitment

Recently Radio 4 ran a series entitled Brain Science and Behaviour Change and in the third episode Matthew Taylor reported on Professor Robert Cialdini (author of the book “Influence”) who was charged with reducing the number of wasted appointments in a doctor’s surgery in Bedford, by patients who fail to attend for their appointments.

Three simple techniques were used in the pilot trial:-

i)              When the patient booked the appointment with the Receptionist, the patient was asked to repeat the date and time of the appointment – patients who verbally repeated the details were more likely to commit to the date and time when stated in public.  There were 7% reductions in the number of non attendees using this method.

ii)             The patient was asked to write the appointment date and time down rather than it being given to them by the Receptionist – patients who physically wrote the details rather than just being handed them, also re-enforced their commitment to attend.  Using this method, the non attendance figures decreased by another 18%.

iii)            There were signs in the waiting room stating the true figures that “98.5% of patients keep their appointment times” – it was found that subconsciously we would rather be in the majority group, than in the minority 2% who failed to keep their appointments with the doctor.

This study was found to improve the non attendance of patients by one-third during the length of the trial, and on cessation of the techniques, non attendance went back up.  As the programme points out, in a time of tight budget constraints, the ability to save money on this simple measure, without a cut in services, is a big positive.

At Kent Trainers we ask all delegates to complete an action plan at the end of their training sessions.  This identifies the areas they are planning to focus on when back in the workplace as a means of ensuring that the learning is put into practice and they commit to undertaking these actions.  We also recommend that these action plans are discussed and reviewed with their Line Manager as a means of further “public” commitment.

Find out more about getting your message across on our Communicate Effectively and with Confidence course at Chilston Park on 24th January. Learn how to manage your time more effectively and reduce waste on Manage Yourself and Your Time at Salomons, Tunbridge Wells on 26th January.

Are leaders born and managers made?

I often come across comparisons between leaders and managers. I have listed a few below:

• Managers do things right – Leaders do the right things
• Managers are concerned with this week – Leaders are concerned with next year
• Managers plan the way – Leaders point the way
• Managers coordinate – Leaders inspire
• Managers seek to stabilise – Leaders shake things up
• Managers embrace change – Leaders embrace complexity
• Managers are appointed – Leaders step forward

But are these comparisons valid? Are they important?

The reality is that the roles of manager and leader are not separate but a blend with different emphases on skills.

But aren’t leaders born and not made? This is probably the most common quotation about leadership. Actually there have been studies  done on the subject which indicate leadership is about one third genetic and two thirds learned*.

Unfortunately, many executives still believe that leaders are born, not made. This is dangerous for an organisation because it leads to wrong decisions. It leads to undue emphasis on recruiting people with the ‘right stuff’, ‘born leaders’ and it leads to the neglect of leadership development of existing staff. Sure, recruitment of leaders is important, but the evidence shows that the development of leadership skills is more important.

So what does this mean for your organisation? It means:

1. You should focus on the development of the leadership and management skills of you current staff first, selection second;
2. Don’t allow your existing leaders and managers to live off their past successes. No leader has learned all there is to know. Continuing leadership development throughout  a career is important; and
3. Make a plan to grow the leadership and management capacity of you organisation by looking within rather than recruiting externally.

Do you agree? Let us have your views!

Kent Trainers runs regular open and in-house courses on leadership and management. Our next open courses are:

Team Leadership – 26^th January, Salomons, Tunbridge Wells
Introduction to First Line Management – 31^st March, Chilston Park, Lenham
Management Programme (3 days) – starting 7^th March, Chilston Park, Lenham
Senior Leadership Programme (2 days) – 14^th March, Chilston Park, Lenham

*Leadership: Is it in the genes? Prof Richard D. Arvey, Head of the Department of Management and Organization, National University of Singapore http://www.iedp.com/Leadership_Is_It_In_The_Genes

Young Entrepreneur of the Year – Winner and Finalists – 2011

Sally Jones and Keith Merrin of Kent Trainers present the award to Peter Tweddell

The West Kent Business Excellence Awards were held at the Spa Hotel in Tunbridge Wells on 24^th November.  As sponsors of the Young Entrepreneur category, Kent Trainers were delighted to be involved with this year’s judging and were, as mentioned in our earlier blog and newsletter, highly impressed with the entrants and the ingenuity and determination within this category.

As previous winners and finalists in these awards, we were only too well aware of the time and effort put in to the entries and whilst it may be an old saying that “it’s the taking part….”, we can categorically state that to make it to the finals, is an achievement in itself.

We had 3 finalists in the Kent Trainers’ group:

• Berties Wood Fuel Ltd – Peter Tweddell
• Ditto – Hannah Griffin
• Desibox Homemade Indian Cuisine  – Jay Pitrola

3 very different businesses all with strong points to commend their entry into this category.

Keith and Sally spent two days in September visiting all the entrants, grilling them on the challenges and financial aspects of their businesses.  Whilst it may not have been “Dragon’s Den”, they all had to be prepared for some fairly rigorous questioning.

After careful consideration and debate, the worthy winner was Peter Tweddell of Berties Wood Fuel Ltd .  Whilst the business is in the early stages of development, there was strong evidence of significant revenue growth in a short space of time.  He has obtained contract with one of the large household retail giants and has a clear vision for developing the business further.

As with many small businesses in the current climate, Peter, along with his other finalists, have had to face difficulties with obtaining finance. Their enthusiasm for their products, determination and a strong desire to ensure they succeed in their field, together with their tenacity and their “can do” approach when presented with challenges and setbacks,  is an example to all in these difficult times.

We thoroughly enjoyed our involvement with the awards and were amazed and encouraged by the determination and character shown by these three young Kent business people.  Peter, Hannah and Jay are a testament to the gritty talent and resolute desire to be successful in business.  It was a pleasure to meet them and learn about their businesses and we wish them all every success and continued growth into the future.

The art of delegation

When working with managers, they so often say that they do not have enough time in the day to manage. Could this be you? Delegation is a great way to give you more time.

Managers justify not delegating as they:

• feel that they lose control
• enjoy doing that particular task
• say “It takes too long to explain”
• lack confidence in their staff’s abilities
• fear that the person they delegate to may do too good a job and show them in a bad light.

Remember delegation is not about passing on boring tasks, but about identifying tasks that can help your staff to develop and improve performance.

The benefits to staff of delegation are it:

• gives staff a new challenge
• tests out their ability and contribution to the business
• builds their experience
• increases morale and motivation
• makes them more flexible and efficient
• avoids boredom

The benefit to you is that it will ultimately create more time for you.

Join us on the 3 day Management Programme and we can tell you more, especially on how to effectively delegate.

Is failure a necessary part of success?

In his latest book ‘Adapt’, Tim Harford explores the role of failure in organisations. Failure is normally seen as something to be avoided in business but Harford finds that for most organisations it is a vital element for improvement and survival.

There are parallels between natural selection in nature and the way businesses evolve. Just as many species which don’t adapt to a changing environment risk extinction, businesses which fail to adapt also risk becoming extinct. There are exceptions of course, he identifies Coca-Cola as an example of an organisation where change is counter productive, but history is littered with examples of companies which have gone out of business because of their failure to adapt. The problem is that because they have disappeared we do not remember them!

Harford talks about a Russian engineer Peter Palchinsky who was working at the time of the 1918 revolution.  Palchnisky travelled outside Russia looking at successful organisation that could adapt to change. He identified three rules that all business that change successfully follow:

1. Seek out new ideas and try new things;
2. When trying something new make sure that you do it on a scale that if it fails, you can survive the failure; and
3. Learn from your failures and successes and record them

The above process is equivalent to natural selection of ideas. Step 1 is mutation/variation. Step 3 is selection, killing off the bad ideas and keeping the good ones. Step 2 is being sensible and not betting the whole farm on one throw of the dice.

So what does this mean for your organisation? It means allowing your staff to try new things out and accepting and encouraging experimentation. It means not criticising and indeed welcoming failure as part of the learning process. It means as a boss, biting your lip and getting out of the way. Above all it means recording and learning from the failures as well as the successes.

Failure is positive as long as you survive it and learn from it. What doesn’t kill you makes you stronger!

A lesson from history. Peter Palchinsky was ‘disappeared’ by Stalin’s regime for pointing out the flaws in the soviet ‘5 year’ plan. Some bosses don’t like feedback!

Courses from Kent Trainers for November and early December 2011:-

 

Managing Under-performance and Difficult Behaviour

Key Account Management

Effective and Confident Administrator

Introduction to First Line Management

Leadership Programme for Directors and Senior Managers

3 day Management Programme

Time Management

Increase Sales through Effective Marketing

Front of House and Reception Skills

Outstanding Customer Care

Team Leadership

Customer Care tip from Steve Torjussen, Kent Trainers Sales Trainer

I was working with clients the other week who were very focused on what they wanted as well as their success, so focused in fact that they missed the point!

In today’s environment people become uncomfortable being ‘sold to’; indeed when I come across a ‘traditional’ seller, I don’t enjoy the experience and rarely buy! And for me that’s the point. People buy.

In the 21st Century people are too educated and far too astute to fall for the old techniques and tactics. The more a sales person thinks about, listens to and fully understands the needs and wants of the client and/or customer, the more successful they become. The new definition of selling then must be ‘Helping People to buy’. How many actually genuinely help people to buy?

Learn about customer care on Kent Trainers Outstanding Customer Care course.