Surviving the Downturn
April 14, 2008 10:55 AM
When doom, gloom and despondency reigns in business, the inevitable response is always to make cuts. No surprise here. The media resound with everyday stories of staff cuts, budget cuts and training and development cuts. And yet, at the same time, there is an astounding growth in job advertising for 'business development' executives of multiple shapes and sizes. It's a stereotypical and oh-so predictable response to tough times ahead.
During my last 15 years in private practice, I've seen at least 3-4 cycles of ups and downs, during which employers can be relied upon to boost the recruitment industry in their vain and often meaningless search for this mysterious 'holy grail'. The saviour with the Midas touch, who will single-handedly, with one giant leap, transform a struggling business into a successful one.
And why do they keep on repeating the same behaviour and get the same results time after time? For the same reason that we play the lottery, I suspect; if you don't buy a ticket, you can't possibly win. However, I submit that as much as the psychology is the same; so are the chances of pulling a winning ticket. And yet, businesses can be relied upon to keep doing it again and again; just so long as there's a chance, then it's worth the gamble. After all, it's only a small outlay for a potentially sizeable return. I can certainly see the lure and understand the thought processes which drive such decision-making. However, in much the same way as playing the lottery, it really has very little chance of success.
Business Development is not for the faint-hearted. It's a clear and definable skill which has its roots firmly planted in one-to-one relationship building. And yet, so misunderstood is this role and so misaligned has it become over the years, that the role has become synonymous with something which sits in the twilight zone between sales and marketing. A role which requires an incumbent to make repeated and unsolicited calls to leads and potential customers, armed with a brochure or sales pitch of the latest product or service offering. The ultimate door-knocker, if you will. The snake oil salesman of yesteryear; and if that's not bad enough, businesses which err towards a marketing bent, often swamp leads or potential customers with so much useless and confusing collateral, that they barely know what it is they are being asked to consider. Both approaches are about as useless as baling water out of the Titanic with a saucepan.
So, is there a better way?
Yes, there is, and one which is guaranteed to give every business the best possible chance of surviving and beating a downturn. Firstly, recognise that business development is a clearly defined skill, with purpose, clarity and definition; and secondly view it as a long-term sustainable investment, which, over time, will pay a steady and ever-improving return. Recruit and develop a talent pool of those who are the most natural and gifted relationship-builders, from whatever discipline they come from, and set them to work on forging long-term 'trusted partner' status with your key existing and target potential clients. Give them the freedom to operate outside of constraining and restrictive targets and work practices and reward them on their skill and ability in maintaining an ongoing dialogue with their clients. It's this dialogue which is key to sustainability and which, ultimately, propels them and the business into trusted partner status. The most successful business developers don't actually sell anything; they don't need to, because their clients are only too happy to buy from them, as and when the opportunity arises. And what's even better, is that they continue to buy, again and again and again. Just so long as there's trust, there will always be a return. It may not be immediate and it may not scoop the jackpot, but it will be consistent and reliable.
What value this level of consistency and reliability in the current economic climate? However, just like any solid and worthwhile investment, it requires time, patience and good judgement, which might well be a better bet than a weekly punt on the lottery.
Comments
A really good read. It seems all too easy for employers to put immense pressure on their sales teams for short term success. And that is all it will be short term success.
Relationships in a sales environment are built over time, not over night. Trust seems to be a word that is not used enough in the market place at the moment. There is little trust from some employee's to their employers looking for instant success and results and job security puts them under immense pressure. Because of this in some fields trust cannot be built with the prospective clients as the rep feels the need to sell and move on with the blink of an eye.
Relationships need to be made between employers and staff first then the rest will follow.
Thanks for the article
Colin Lynch - June 3, 2008 2:40 PM
Thank you Colin.
Charles Helliwell - July 30, 2008 11:01 AM
As a person who has been around in business and industry for quite a long time, I find it extremely amusing how the business gurus have swamped us with all sorts of long-winded terms for jobs and functions that were once quite happily labelled with 'words of one syllable'.
The subject of the article, 'Business Development', is one example. Years ago, we were all quite happy to just call it 'Sales'.
Here are some other examples:
'Personnel' is now called 'Human Resources'. (Actually this one is now in danger of being taken a stage further: to 'Organisational Development'.)
'Marketing' is now 'Product Management'.
'Training' is now 'Continuous Professional Development'.
And finally, horror of horrors, good old-fashioned 'Operations' has now been seriously expanded to 'Supply Chain Management'!
Will there ever be an end to this sort of nonsense!?
Andrew Gibbs - August 28, 2008 12:41 PM
Andrew
Many thanks for your insightful and grounded observations, amusingly packaged and constructively presented.
I do hope that you're not suggesting that I might fall into the category of 'business guru'. I'm just your ordinary 'Joe Blo' with a lot less hair, a lot more grey and plenty of rubber left on the road.
Business development is, of course, sales by any other term. However, it is not you or I who created this nomenclature, but organisations, striving to appear different from the masses. That they have been allowed to get away with complicating the simplistic is perhaps something that we should all take responsibility for. It is, of course, all nonsense as you say, however until we, the great unwashed masses start referring to them as they were intended, we are all collaboratively responsible for perpetuating this bizarre and irritating language of jargonese.
Yours aye
Charlie
Charlie - August 28, 2008 7:46 PM