Bias as Usual: Beware of Representativeness

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Are you an ideal salesperson? Do you possess the right habits and personality traits? Before you critique yourself, consider you may be battling an unseen enemy- representativeness

Consider the following hypothetical scenario: 
You’ve just learned your getting a new next-door neighbor. All you know is she will be one of two salespeople.  Salesperson A drives a BMW.  Salesperson B drives a BMW, has a confident personality, and travels extensively for work. Who is more likely to be your new neighbor, person A or person B?  If you chose person B you would be… (drum roll please) wrong!

How is this possible?  By definition, people like Salesperson B are a subset of people like Salesperson A.  Therefore, the group of people who comprise all BMW-driving salespeople has to be bigger than those with the same car who are also self-assured road warriors.  This means the likelihood of your neighbor being Salesperson A is higher.   The reason it’s so easy to chose Salesperson B is because, in our minds, the extra details provided make them more representative of a typical sales rep.

According to Daniel Kahneman, author of Thinking Fast and Slow, representativeness is a mental shortcut. We use it to judge probability by looking for patterns.  As a result, it’s easier to believe the validity of comparisons between reps when one meets our stereotype of the ideal rep and the other doesn’t.   

In real life, high performing salespeople are a topic of great interest. Leaders, often set out to find what makes these overachievers unique. In doing so they often mistakenly settle on the traits they expected them already to have. And, rarely do they look any further. Rushing to judgement, leaders may neglect factors, like the local economic climate, that can have a strong influence on sales.

As we know, the comparing of salespeople is serious business. For reps themselves, it can determine not only their income but their overall job security. Given the stakes, sales reps and leaders both need to slow their thinking and look deeper into the validity of their measurements.  It’s time to value representatives over mere representativeness.

Meaning2work.com

Bias as Usual: Illusion of Control

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There I stood, spandex clad and heart pounding, at the start line of a bike race.  BAM!  The gun went off and I was going. Call it the ultimate test, me vs. the other riders vs. the muddy trail. Despite all my preparation, I got to the start line late and had to start in the back of the pack.  To make up ground, I put my head down and focused on passing other riders until I was – in the front?  

That NEVER happened before!  I was in CONTROL!  I no longer heard the other riders, just the rush of the air through my helmet and the pounding of my pulse.  That day, I finished a respectable 3rd out of 20 racers.   Despite leading most of the way, victory was snatched from me at the last minute. 

It didn’t matter, from there on, I was hooked! I spent 2 years training and racing to replicate that result.  It never happened.  Later, I learned that another big race took place that fateful day and many of the skilled riders attended it. Sadly, my ability to control a race was a mere illusion.  

Psychologist Ellen Langer named this fallacy the Illusion of Control.  It’s the belief that we control things in our lives that we don’t.  Imagine a gambler thinking she’s “on a roll” and can’t lose or a day trader thinking he can make a stock price rise just by buying shares.  It’s not hard to see their folly.

However, are we able to spot this illusion in our own jobs?  Do we in sales control what our competitors do?  Do we set the purchasing budgets of our customers?  We know these and other factors heavily influence customer behavior but ignore them after we’ve had a good year.  THAT accomplishment came from us alone!  At the same time, when our numbers are sub-par, we point to a multitude of factors out of our control.  And, leadership often suffers from the same bias, no one wants to tell their team a dose of luck may be essential to achievement.

Therefore, we need to acknowledge that control of anything requires time and effort – two resources we MUST use wisely. When we stop straining for things out of our reach we free ourselves to be accountable for the things we DO control – our thoughts, actions, and skills.


Chris Pawar

Meaning2work.com

Bias as Usual: Mistaking Luck for Skill

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As I ascended to the stage for my sales award, I glanced over to my sales manager.  It was hard not to crack a smile. There I was, six months at the company, with the skill to outperform people who were years my senior.

It went to my head. For the rest of that year, I didn’t hesitate to offer my opinion at sales meetings. I was all too happy to help others improve and, you know, be a bit more like me.

Little did I know, I was a text book example of someone with Illusory Superiority.  Otherwise known as the Dunning-Kruger Effect, it’s the tendency for unskilled people to overestimate their abilities.  In the years to come, I was to learn what I mistook for skill was a merely dose of good luck and timing. 

Oddly enough, this illusion of internal assessment can take place in reverse. Skilled people often underestimate their abilities compared to others.  Psychologists David Dunning and Justin Kruger demonstrated both sides of the phenomenon and published it in a study. They surmised that experienced people, knowing better their own limits, often take for granted the skills they use every day, ones that others may not possess.

So, how good are you? If your answer is relation to others, it pays to reconsider. You may be exaggerating due to the Dunning Kruger effect. Instead, why not make the unbiased choice to compare yesterday’s you to today’s?

Chris Pawar

Meaning2work.com

The Stoic Salesperson: You Lost! Why it’s Not Your Fault

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You didn’t win President’s Club!

In your place onstage stands someone else shaking the hands of senior leadership claiming to be better than you.  In this moment you want nothing more than for it to not be true. No, you can’t change the numbers from the past and you don’t have to fall back on excuses or bitterness. Instead the key to your come back may lie in Stoic Philosophy.

First, ask yourself, was it your name etched onto the sales trophy at the beginning of the year?  Was winning this year’s sales contest a simple matter of obtaining what’s rightfully yours? Obviously not. So how then can you lose something you never owned?  

Every sale requires a choice, one made only by one person, the customer.  If you don’t believe me call your biggest account and ask if you can make buying decisions for them.  As you can see we in sales exert influence, not control, over our customers.  

A core tenant in Stoic philosophy is knowing what we do and don’t control. In the end your sales results are the output of many decisions for and against your product.  How many of these choices do we control? Zero. Come to think of it, how many customer decisions did our higher-performing co-worker control this year? Zero.

Unfortunately, most of us aren’t evaluated directly on our influence, but on our sales results.  One of these data points is easy to measure; the other is not. And again, if customer influence and sales results were one in the same, we’d sign the sales contracts ourselves. Is it unfair to be judged based on decisions of out our control? Maybe, but Stoicism teaches that feeling upset by this fact is also, our choice. 

Therefore, instead of personal wins and losses, you now have permission to focus on customer wants and needs. After all, isn’t that what we’re here for?

Sincerely,


Meaning2work.com

For a free and inspiring lessons on Stoicism, check out Ryan Holiday’s podcast, The Daily Stoic.  

Sales Incentives: Love The Game, Not The Trophy

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Many parents, including yours truly, have made the same mistake.  Let’s call it the Ice Cream Effect.  “Score a goal junior, and we buy you an ice cream cone!”, we might say.  Score two and you get a hot-fudges sundae!  Sooner or later, we find our child needs an ever-increasing supply of ice cream (or trophies, or other incentives) just to play the sport.

Why does this happen? Isn’t generous pay for a hard day’s work, an effective tradition? In the short term, yes. When our sales numbers are good and we’re getting praised, we love sales. Can we blame our leaders for dangling trips, bonuses, and other rewards in front of us?

But, hurry and enjoy your sales incentives quick, before they melt away!  Soon, a new fiscal year arrives and we’re back to square one. Impossible objections, indecisive customers, and service issues, they’re all part of life in sales.  All of a sudden, we not in love anymore. Instead, we’re the kid who hates baseball until he hits a home run.  Here’s the problem: to our employers, our job is to sell.  To our customers (you know, the people who pay for everything), it’s to solve problems.  They don’t care how many rewards we rack up.

And, it’s solving problems that gets us the sales we want.  We need to take the leap of faith required to focus on the job itself, not sales incentives, or even job security. Soldiers, who risk much more than a pink slip, want to see live battle.  ER doctors, who can easily handle patients with sinus infections, want to treat traumatic injuries.  These people want to do the hardest parts of their job.

Perhaps we in sales can learn from them.  

Sincerely,
Meaning2work.com

Big Rewards: Why They Make Us Less Happy

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Bigger salaries?  Better commissions?  Bring ‘em on! Whoever coined the phrase “less is more”, was clearly not in sales where rewards reign supreme.

A few years ago, I interviewed for a sales job with a prominent IT company. The realistic pay expectations offered were multiples higher than my current salary.

You can imagine my elation after both learning this AND being put into the company interview process. What would this new lifestyle mean?  A better house, car, or schooling for my kids?  “Be realistic!  The job’s not yours yet!” I would tell myself.  However, a couple of interviews later, I had myself fooled. The job was mine to lose.

Weeks went by with no answer.  Then, BAM!  Hearing the regretful words from the elusive hiring manager felt like a botched skydive. And, on came the guilt.  How could I have gambled away such a bright future?  It was past 9pm with a cold, pouring rain outside.  I went for a run.

On a smaller scale, big sales rewards can have the same debilitating effect.  Managers often want 100% of the sales force to believe they can win a prize given to only the top 5%.  And, who can blame them?  Inevitably, some us take the bait and chase the dream.

Salespeople need to remember that luck is, and may always be, part of our results.  It’s nice to have the opportunity to win big.  We just need to remember the money isn’t ours until the check has cleared.

Sincerely,


Meaning2work.com

Outsiders Change Companies, the Rest of Us do What We’re Told

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 “When I’m in charge, things will be different.”

We’ve all thought it at some point. Either we forget or ignore the truth: it takes a hefty dose of conformity to obtain power within most sales organizations.  This diminishes anyone’s ability to enact change, unless they get to the top of the pyramid.  By then, few understand the challenges of the front line.  In your last sales meeting, did the sales managers question policy or promote it?  Yes, there are people paid to offer innovative ideas. They’re called consultants.

Even the noblest among us, when setting out to cure a company’s ills, can become infected.  The status quo is the conscious choice of your current leadership.  Chances are, they’re not inviting you to question it.

Instead, try changing what’s in your power to change:  yourself.  Want your boss to be less critical?  Be less critical of yourself.  Want to have more money? Spend less of it. Want to help others?  

You get the idea.

Sincerely,
Meaning2work.com

Want to Enjoy Sales? Think Creativity Before Closing

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Seth Godin (referring to human nature):

“If it’s work, they try to figure out how to do less, and if it’s Art they try to figure out how to do more.” – from his TED Youth Conference talk, “Stop Stealing Dreams

So, by Seth’s definition, what is sales, merely a job or an art? For most of my career, it’s been the latter. Obviously, our quotas and deadlines don’t allow for such silliness. Only recently did I learn that I approached sales non-creatively by choice. Following Mr. Godin’s logic, throughout my career, I naturally did the least amount of selling required. Fortunately, this was not always true. There were times, albeit few, when I liked the job itself, not just the reward.

Surely salespeople can’t be artists? Consider for a moment, that artists, essentially use creativity and skill to express unique ideas. Contrast this with sales, where we find solutions for now and seek to repeat them for other customers. This process works – until it doesn’t.

When a sales solution stops working, tradition is to wait for management to acknowledge the problem and tell us how to revise our approach. As we grow, we learn to use our creativity and communication skills to overcome challenges ourselves. Creativity and skill. Sound familiar? This approach, when effective, can be more enjoyable than copying someone else. Not to mention, it also results in more business and resume-building experience.

Still, it’s easier to grab someone else’s answer to an objection than to formulate one. If being “artistic” in our sales approach is so great, wouldn’t everyone do it all the time? Unfortunately, the following barriers block us from doing so:

Ambitious Insecurity*

Salespeople are often capable of delivering tremendous value, provided they don’t act like box-checking robots. Without knowing it, we can fall victim to the assembly-line mindset. Yes, many of us sell tangible products, but what we work ON, is people. We can’t simply repeat what we say or do expecting the same result from them. Still, we insist on explaining lost sales in terms of adherence to set procedures. As a result, salespeople win promotions based on their deference to current processes instead of their ability to improve them. Even worse, this mentality pervades up the chain of command making creativity a privilege of a high-ranking, ill-informed few.

Learned Greed

The culture of sales overtly uses tangible wealth as a measure of success. The more we sell, the more we make, and the better we are. Therefore, we learn that the act of selling has no value, unless accompanied by money. Again, it’s just a job. To make things worse, American culture pressures parents to have high incomes. We acknowledge the need for family time and communication, and answer it with expensive youth sports and vacations. Ironically, these require us to work more and be away from our families. If we simply raise our tolerance for mediocrity, we may find we’re Ok with not having the best of everything. We may even gain more freedom in the process.

Self-Centeredness

Years spent focusing on survival can change us, if we allow it. Quid pro quo is at the heart of the traditional sales mentality. And, more and more of what we do in sales is measured. It’s no wonder salespeople become calculating in their customer, work, and personal relationships! Ironically, this incessant need for fairness robs us of finding it. It’s a problem of mental real estate. The less time we spend measuring ourselves and others, the more time we have to be creative in our jobs.

Outcome Hyper-focus and Irrational Fear

Are you like most others in believing that earning a lot of money automatically makes you a good parent, spouse, or person? In contrast, some of the most popular historical figures (ie. Gandhi, MLK, Rosa Parks), are known for their bravery in doing something new, for the betterment of others, and not for wealth. If you lost your job today, would you instantly become a loser? If you don’t believe you’re worth more than the wealth you generate, why should anyone else? When we’re free from fear, we’re free to create. It’s that simple.

For better or worse, the purpose of salespeople will continue to be revenue generation. We can’t change how others will measure us. Still, it’s impossible to lose a game we refuse to play. We can let others judge us while we continue to work creatively. Jobs, like salespeople, are replaceable. Artists are unique. Therefore, we can ask more of our current employers and the ones we chose to join. This may mean seeking flexibility and freedom over money.

In order to change the current, perform or die culture of sales we must first loosen its grip on our minds. Let’s release ourselves from factory work and embrace creativity. Sales will be nothing more than a job until we do.

Sincerely,

Meaning2work.com

*This an adaptation of the term “Insecure Overachievers” used by author, Laura Empson in her Harvard Business Review article entitled “If You’re So Successful, Why Are You Working 70 Hours a Week?”.

4 Reasons to Love Selling (And Why They’re Making You Less Effective)

Do you like your sales job for the wrong reasons?

“Pride cometh before a fall” – Biblical Proverb

Many of the stereotypes of salespeople are unfair. Not all of us are the money-hungry, hyper-competitive, egotists portrayed in movies like Boiler Room. Still, some grains of truth can be found in the way we act when times are good. Consider the following reasons why, as a salesperson, you might love your job:

You love the money and all it brings
The fit of a new suit. The sparkle of a new stone. The smell of a new car. Who doesn’t savor these things?

You enjoy the respect you receive from mangement and co-workers.
You just finshed a great sales year. Your name mentioned multiple times at the sales meeting. Co-workers are asking for your secrets. Life is good!

Your customers love you!
Obviously they do. They buy from you, don’t they? Being liked is much better than the alternative. No doubt, a salesperson can make the difference when choosing between two similar products.

You play to win. And, more often than not, you do.
You’ve never shied away from a fight. You take pride in how focused you are on achieving your goals. Other salespeople aren’t as effective because they’re less confident or they get distracted with customer concerns.

“Yes? So what’s the problem?”, might be the response of a typical salesman at this point. Read on, if you dare, and see how your love for sales may betray you.

Big Money, Bigger Problems
The joy of spending money is in all things new. Alas, like the sales contest you won last month, all things new become old. After a long day of enticing customers with new things, we often, ourselves fall victim to them. Sometimes we make them the very purpose of our work.

Do we expect physicians to work soley for the money? Of course not. They take an oath to put a patient’s welfare before themselves. Teachers consistently say they teach for the joy of teaching. Yes, there are others, perhaps a vast majority of people, for whom work is strictly a means to a paycheck. Sales is different. Salespeople are enticed with wealth.

“Glittering prizes and endless compromises, Shatter the illusion of integrity.”Neil Peart

In the place of taking serious oaths, salespeople jump and cheer at sales meetings for the new goodies that define next year’s success. Houses have house payments. Expensive jewelry needs to be insured. Luxury cars have luxury repair bills. As years tick by, a salesperson’s “success” accumulates until she wakes up to working for a company she hates, just to pay the bills.

The price of fame
One month after finishing on top of the salesforce you receive the new year’s sales goal. You now have to sell 30% more than you did last year! Within a span of weeks, the intense effort you put in last year becomes “not enough”. Following traditional (and de-motivating) sales management logic, you can never be allowed to feel too confident. Why? Because confident salespeople are lazy! Salespeople respond by working harder to regain that original feeling of confidence. There is another group of people who live in constant pursuit of an original good feeling. They’re called drug addicts.

When you work for the respect of your co-workers you give up something much more important. Respect for yourself.

Your customer is cheating on you
The result of basking in too much customer praise is, however, blindness. We get so wrapped up in being charming that we fail to realize our customers have jobs to do and lives of their own. Salespeople who believe they are loved are often not listening to their customers. Take away the product they sell and away goes the romance. Relationships are important. Still more important is the problem you solve for your customer. That’s why you’re getting their time and attention. If you’ve done your job correctly, your customer is in love with your product, not you.

Playing to an empty stadium
However effective in short-term scenarios, theres a problem with focusing on competition in sales. Customers don’t care. When buying a car, do you want to work with the Salesman of the Year to wait on you or someone who needs your business? Customers like what you and your company do to help them solve problems. The more difficult their problems, the more creativity is required. When we’re in competition mode, our brains can only focus on a few things. To customers, this makes you appear single-minded. This isn’t helpful when an innovative solution is required.

Should salespeople fear success instead?
No. Don’t fear success. Fear the all-consuming need for success. It’s easy to love something when it gives you immediate rewards. A new car never looks (or smells) better than the day you drive it off the lot. Romantic relationships feel great when we haven’t been with the other person long enough to have a disagreement. Being a salesperson feels great when you’re on top. What matters is this, do you have a reason to go to work when times aren’t good? Don’t let what feels good now set you up for disappointment in the future.

Sincerely,
Meaning2work

What’s The Right Salary for You? Ask the Salary Happiness Calculator.

What’s The Right Salary for You? Ask the Salary Happiness Calculator.

You’re in sales and that means you’re money-motivated. You don’t shy away from challenges – you seek them out! After all, that’s where the big rewards are found! By rewards, I mean recognition, gifts, and most of all – money.
Given that you know yourself and what you want so well, I’m sure you wouldn’t hesitate to prove it by performing the following three-step excercise I call the Salary Happiness Calculator:

Step 1 – Beginning as early in your career as you like, add up your yearly salary up all the way up to today. Benefits? You can estimate their value or even leave them off if you like.
Step 2 – Ask yourself if you feel any lasting happiness as a result of all that money. Again, think about lasting happiness. You may remember how you felt the day you moved in your house or bought a nice car. I’m referring to how you feel today.
Step 3 – For Experienced Sales People: Are you surprised to see such a big number? Where did it all go? Kudos to you if you stashed a significant amount in savings. For most Americans, the lion’s share of the money in gone. Is it fair to say most of the things spent it on were intended to make you happy? Yet, they haven’t. Sure, you enjoyed them short period of time, but now you need more. In addition, your monthly bills have probably kept pace, limiting what jobs you can take in the future. Was it worth it? Consider letting go of your current lifestyle and pursuing something that you feel gives you a purpose.
Step 3 – For Newer Sales People: For you, this number may be no surprise. In fact, it may be an annoying reminder that you just aren’t where you want to be, yet. What may be a surprise is that even the older, more successful, sales people doing the same calculation aren’t any happier than you. Sure, they appear to be more confident. Inside, you’re both thinking the same thing: “If I could just make more…”. While you’re still young, consider replacing income goals with purpose goals. You will never have enough things or make enough money and you can find yourself feeling trapped by bills later on.

Should you be judged for wanting to have a comfortable lifestyle? Would being homeless make you happier? Of course not! The moral of the story: we blame our employers for not paying us more money while knowing, beyond basic comforts, the extra pay won’t make us any happier. We give our autonomy away by choosing the higher-paying, micro-managed sales job, over the interesting one.

But of course, none of this applies to you. A little more money is all you need. Feel free to lie to me, your friends, and even yourself. The number on your calculator tells the true story.

Sincerely,
Meaning2work

Ps. This post was inspired by the writings of Joshua Fields Millburn and Ryan Nicodemus. They are authors of a book and documentary both entitled Minimalism. Learn more about the documentary by clicking on the following link:
Minimalism
Also, you can check out their website at theminimalists.com.