05:21 PM Friday August 14, 2009

By John Baldoni

The first time I heard department stores referred to as dinosaurs (e.g. facing extinction) was at least twenty-five years ago, and even then it was old news. So when Terry Lundgren, CEO of Macy’s, gave an interview to the Wall Street Journal talking about how he was using the downturn to improve operations, I thought it wise to pay attention.

First and foremost, Lundgren is a realist. When asked if he “worried about” customers holding out for discounts, he replied: “I’m not worried about it. I’m counting on it.” Leaders need to face facts and adjust expectations to those realities. That is something that Macy’s, along with every other retailer, does. In other words, you don’t count on a turnaround, you make a turnaround happen.

How you do that varies from business to business. Leaders such as Lundgren teach us how you can use the downturn to your advantage. Not overnight, but over time. Here’s how:

Make tough choices. Now is the time to get rid of anything and everything that does not add value to the bottom line. Adhering to the principles of value engineering will help an organization optimize operations, but that is not enough. A leader must look to kill old habits. Reduce practices that “feed the monster,” that is, projects that inflate egos rather than earnings. For example, reduce the number of staff and skip-level meetings. Let people do their work rather than prepare for meetings with senior staff.

Look for the up and comers. When times are flat or in a downturn, look for new ideas. Challenge your best and brightest to make suggestions to improve operations, attract new customers, or work more collaboratively with vendors or each other.

Live resilience. This is the first significant downturn that younger employees have faced. Keep spirits high by emphasizing self-determinism. Show them how seasoned leaders respond to tough times by focusing not simply on the business, but also on the people propelling the turnaround. Good leaders use these opportunities to describe what is going right as well as what is going wrong. Acknowledge the obstacles, but show people how to go around them or climb over them.

Reality dictates that business turnarounds require economic rebounds. No leader can tweak his operation into success; you need customers to buy what you offer. But if you do not improve what you offer and how you offer it, you may miss the upswing.

Preparation for the upturn should be well underway at most organizations, but turnarounds cannot rely upon what those at the top tell financial journalists and analysts. Leaders must shepherd the spirit of the turnaround through every level of the organization so employees not only see the possibilities, but more importantly, discover what they must do to make them real.

• From: BUILDER July 2009
• Posted on: July 7, 2009

Brave New World

After the bust, builders might be surprised at what future shoppers will want to buy. What they’re building, though, doesn’t always match with what future buyers say they want.

By:

John Caulfield

The homes that sold like gangbusters during the good times-to the tune of nearly 1.4 million in 2005 alone-are not what the buyers of tomorrow say they are looking for.

That is the unsettling conclusion Builder drew from our recent “Builder/American Lives New-Home Shopper Survey” as well as interviews with buyers in the three groups-immigrants, Baby Boomers, and Millennials-that are likely to drive most of the demand within the housing industry for the foreseeable future.

This Special Report outlines the real and daunting challenges that lie ahead for home building companies that must try to accommodate several buyer segments with a tapestry of preferences that, in the past, builders might have deemed incompatible with their business models.

Immigrants, 40 million strong and counting, still see their American Dream in a big house with enough space for their extended and visiting families. Boomers approaching retirement are still inclined to downsize, but without sacrificing quality or comfort. However, their buying decisions now often reflect serious concessions to financial and health events many hadn’t anticipated or chose not to think about.

And Millennials-the generation born between the late 1970s and early 1990s-are buying earlier than their predecessors and are looking for urban (or at least higher density), affordable, well-designed, and uncluttered dwellings that complement their lifestyles.

It’s becoming clear that builders’ old, one-size-fits-all marketing and product approach won’t work on any of these buyer groups whose interests and borrowing requirements differ widely, not only from the buyers of the recent past, but also from each other.

How to Make People Passionate About Their Work
02:29 PM Thursday July 16, 2009

By John Baldoni

I know two CEOs: one in publishing is a friend; the other in manufacturing is an email correspondent. There is a common bond between the two; both are in their sixties and both act as if they are closer to twenty-two. Their sense of vitality springs from their passion for what they do.

Each feels a sense of pride in the businesses he leads; more importantly, each is pushing his respective organization to new heights with a vigor found typically in much younger men. Their can-do attitudes seem almost corny, as if sketched from an earlier age or at least from musicals like The Music Man. But both men are in exactly the right positions at the right time.

Generating enthusiasm, or passion, for what you do is essential. It is doubly so in perilous times. When everything around us seems to be coming apart, a leader who has a passion for what he does is essential. Such a spirit fuels the engine of enthusiasm needed to spark the enterprise. More importantly, such passion is vital to convincing others that the work matters. It is easy to get discouraged by today’s market news and so it is vital that someone, be it the CEO or another senior leader, serves as the organization’s designated cheerleader.

Ultimately instilling passion for the work is not an exercise in rah-rah; it is a search for meaning and significance. So how can you cultivate passion for work in others and do it in ways that have significance? Here are some suggestions.

Focus on the positive. Passion in leaders can be palpable; you know in an instant that the executive cares about the company. In my experience, those senior leaders who stroll through the halls with a nod or good word to say to all are those executives who get things done. And it is because they are out and about, not cloistered in their offices on mahogany row. Rather, they are meeting with employees and customers, vendors and investors, getting to know issues and concerns. They also use these times to talk up the good things.

Address the negatives. Passionate leaders are not Pollyannas; they know the score, precisely because they spend so much time out of their offices. They see firsthand what is working and what is not, and because they have a relationship with people in all levels of the company, they can more readily mobilize employees to solve problems.

Set high expectations. Those who care about the work and set a high standard challenge others to do the same.

As much as generating passion for the work matters, it is no guarantee of success, or even survival. Radiating passion is no excuse for ignoring attention to the fundamentals.

Yet successful organizations are more than the sum of fiscal prudence. Good ones are the collective values and aspirations of dedicated men and women who have made a choice to work there. Such organizations, be they in healthcare or manufacturing, consumer goods or government, ultimately depend upon the commitment of individuals pulling together to make things work. That’s why you need leaders who have a passion for what they do and are able to spread that passion to others so that people feel better about what they do, and ultimately, what they can do better.

09:37 PM Thursday July 09, 2009

By John Baldoni

Once upon a time Ernest Hemingway was challenged to write a story using only six words. Impossible, some thought. Not for Papa, as Neal Conan explained on NPR’s Talk of the Nation. The next day Hemingway produced this: “For sale. Baby shoes. Never worn.”

Clare Booth Luce, according to columnist Wall Street Journal columnist Peggy Noonan, once told President John Kennedy that “a great man is one sentence.” Noonan writes that Lincoln’s life could be summed up as “He preserved the Union and freed the slaves.” My colleague, Scott Eblin, adapted the concept to summing up one’s leadership legacy. “It takes time and effort to boil down the essence of what you’re trying to do to a short and memorable idea.”

Reducing one’s life to a handful of words is a mighty challenge. Creating a six-word memoir, a concept inspired by a project conducted by Smith College’s magazine, can be a useful exercise in self-analysis, particularly if you apply the process to reflecting upon your goals and your results. Did we achieve what we set out to achieve? Did I help them and the team to succeed? Did our results stand the test of time?

The million dollar question for any leader is this: did you leave the organization in a better place than when you found it? Sadly we have discovered that the great recession we are enduring was in part due to senior executives who did not leave their companies better off, even though they themselves exited with pockets full of cash.

For leaders, this six-word exercise works well as a form of aspiration, that is, how do I want to be remembered? So if you are early or mid career, you have time to make changes so that you can become the leader you are capable of becoming. Consider the following three questions to help you consider how you would sum up your work life in six words or less.

What gets me up in the morning? A very basic question! What do you do and why do you do it? For some, the answer is the opportunity to work with others on a project that has real meaning, that is, improves the quality of life for others. If this question throws you, then you need to consider what you don’t like about what you do. Is it possible to change something, or must you change careers?

How can I help? We humans are motivated to work for goals greater than ourselves. Leaders achieve through the efforts of others. It is imperative that they create conditions for others to succeed. They help others achieve intentions that enable the team, and by extension the organization, to succeed.

What is my influence? Line authority over someone on your team is a point of leverage but its effect may be limited. For organizations, particularly in challenging times with dwindling resources, leaders need to exert their influence. Such influence is built upon good example but transmitted through effective persuasion rooted in trust.

You can adapt the six-word memoir exercise to fit other needs. For example, how might you describe a challenge facing your team using just six words? “Tough job. Committed people. Keep working.” Or “Need ideas. Sooner than later. Help.” You can even make a game of it at your next staff meeting. Encourage your people to contribute their six words as a means of getting to think about the issues, the challenges, and the opportunities you face.

Summing up your career in six words may not produce a eureka moment of sudden clarity, but the exercise challenges you to think about what work means to you and how you influence the way others work. “Big idea. Profound thoughts. Truthful moment.”

1. Leaders must invest in themselves to be personally proficient. Effective leaders manage their physical, emotional, intellectual, and spiritual selves well. They learn constantly. They are capable of quick, bold actions as well as great patience. They constantly deepen their insight about themselves. This is especially true in tough economic times when people look to their leaders for hope and confidence.

2. Good leaders know how to be strategists and are able to answer the question “Where are we going?” They test their big ideas pragmatically, and they work with others to find the path from the present to the desired future.

3. Effective leaders are executors. They ask: “How will we ensure that we reach our goal?” They understand how to make change happen, assign accountability, delegate appropriately, and make sure that teams work well together.

4. These leaders are talent managers and engage people to get things done now and in a manner that generates intense personal, professional, and organizational loyalty. They help people bring their best to the job at hand.

5. Finally, they are human capital developers who build the next generation. They make sure that the organization has the longer-term skills, knowledge, behaviors and attitudes for future strategic success.

The sales script is a strategically planned sales approach that is applied to all aspects of the site sales team’s correspondence from email to the sales center presentation.  The concept of the script is to ensure that the highest quality sales messages are consistently communicated to prospects in a manner that is highly personalized and leverages the personality traits of each sales representative.  While sales representatives will naturally personalize scripts, it is important that sales management continually works with the site sales team to keep their presentations timely, fresh, relevant, and on message.

The concept of following sales scripts is not new in the field of residential project sales.  Since the inception of new construction site sales methods, the planned presentation has been a fundamental precept.  Sales trainers have routinely taught site sales representatives how to use specific key phrases; even demonstrating intonation and body language.  The sales stories and examples of scripted presentations taught by top trainers are reinforced with methods such as sales representatives writing their scripted presentations in workbooks and role-playing sales exercises to help polish their presentations.

Every “touch” the site sales team has with a prospect must have an objective and accurately represent the project.  Starting with the very first email reply and phone greeting, the sales team’s communications will either reinforce and enhance the prospect’s impression of the project established by the marketing message or potentially lessen the prospect’s interest.  A well planned and effectively communicated script is important for the site sales team to establish a positive first step in the sales process.

The sales team’s initial communication objectives with prospects are to establish rapport, learn more about the prospect, reinforce the attributes of the project, and motivate the prospect to visit the sales center.  These objectives are actually basic to successful selling, yet far too often the sales team’s communications may stray from these primary objectives.  The sales script is an aide that helps sales representatives maintain focus and achieve their primary sales objectives.  A high quality sales script also helps elevate prospect’s perception of sales representatives by demonstrating a high level of professionalism and knowledge of the market and the project offering.   When the sales team establishes their value to the prospect they take an important step in building a relationship, which then nurtured over time with well-planned communications that are highly personalized to appeal to the prospects motivations and needs will positively impact sales performance.

The most effective method to develop sales scripts is through a collaborative process that includes site sales representatives, sales management, marketing, and the development team. Analysis and reports derived from primary and secondary market research; registrant responses in the project database; and website data collection improve the team’s understanding of consumer behavior and buying preferences, which in turn stimulates the collaborative process.  The result of data analysis and the team’s collaborative creativity will produced sales scripts that feel authentic and relate to consumers.  This process requires a team leader conversant in analytics and the creative process to guide group collaboration to establish a strategic sales strategy, tactics, and scripts that are aligned with consumer demand and meet prospect expectations.   

Scripted email and voice communication to prospects over time play an important role in nurturing initial prospect inquiries to an eventual visit to the sales center.  The prospect’s experience with their first visit may be the catalyst that ultimately results in a decision to buy, therefore the entire site sales team must always be at the ready to flip the switch to their “showtime” personas when a guest arrives.  Every element of the guest’s experience in the sales center needs to follow a plan and script starting with the visual impact in the arrival area and a warm greeting through the entire sales presentation.  The sales presentation is most effective when the sales representative’s script feels fresh and is interactive; transforming from a presentation into a dialogue.  Skilled site sales professionals naturally use closing techniques throughout their presentation; however, brining the prospect to the point of sale will normally require post-visit follow-up and repeat visits to the sales center.

Personalized correspondence from site sales representatives to each prospect with periodic targeted HTML messages, special events and other creative methods to maintain meaningful engagement with prospects are examples of effective post site visit follow up tactics.   Follow-up requires a strategic plan to ensure that the messages and follow-up tactics are positively perceived and valued by prospects.  Far too often follow-up methods do not recognize the importance of being timely and relevant to the prospect; the old “touching bases” form of follow-up is not valued by prospects and eventually leads to less engagement and the prospect’s loss of interest.

All communications with prospective buyers from the advertising message to site sales presentation form impressions in the mind of prospects about the value of the project, the reliability of the developer, quality of the product, and how their lives will improve if they purchase at home at the project.  Team collaboration to create scripts designed to optimize the value of all the project’s attributes and the collective discipline to adhere to and continue to refine scripts are the best assurance to maximize the return on marketing expenditures.