March Madness always gives me a chance to quote the late John Wooden, the college basketball coaching legend. During his tenure at UCLA, the Bruins won ten national championships in twelve years, establishing a record for excellence that will probably never be rivaled in college basketball.
As a skinny sixth grader competing in the CYO leagues of Upstate New York (not exactly the same as New York or Philadelphia basketball to be sure) I played for a grizzled former NBA player named Bobby Wanzer. Mr. Wanzer was also the basketball coach and Athletic Director at a local college, which made me wonder then what he was doing spending Saturday mornings and Sunday afternoons with us. I can only guess that Father Maloney must have twisted his arm after Mass and so for a year the Our Lady of Lourdes basketball team benefited from the wisdom of a man who was later inducted into the Basketball Hall of Fame. (No, I’m not making that up; you can check it out at http://www.hoophall.com).
I don’t remember much about Mr. Wanzer’s coaching philosophy. It’s probably because we didn’t have that many practices (his paying job often took him on the road during the basketball season) and most of our games were routs. I recall losing one of the first games of the season by the score of 44 to 9 to perennial power Sacred Heart, but the details of that and other defeats have vanished (thankfully) from my memory.
What I do remember was a comment that Mr. Wanzer made to my Dad about all the mistakes we made on the court. He said that he expected us to make bad passes and take bad shots and that it was OK as long as we kept trying. Now, that might have been Dad’s spin, but I don’t ever recall Mr. Wanzer scolding us for a basketball blunder.
Which brings me to Coach Wooden. It was about that time that I read an article about Coach Wooden in Look Magazine. He said that his college coach at Purdue, Ward “Piggy” Lambert (no, I’m not making that up either), constantly reminded players that, “The team that makes the most mistakes will probably win.”
That sounded bizarre to me—we made lots of mistakes and we never won—but Coach Wooden went on to explain that “mistakes come from doing, but so does success.” If you didn’t make mistakes, you probably weren’t trying hard enough.
That bit of coaching wisdom helped me through a long basketball season in 1964-65. And when I read it now in a compilation of Coach Wooden’s thoughts on basketball I have to think that both he and Bobby Wanzer were sending a profound message to all of us on what it takes to succeed.
See whether any of Coach Wooden’s “Eight Suggestions for Succeeding” apply to your team’s current sales efforts:
1. Fear no opponent. Respect every opponent.
2. Remember, it’s the perfection of the smallest details that make big things happen.
3. Keep in mind that hustle makes up for many a mistake.
4. Be more interested in character than reputation.
5. Be quick, but don’t hurry.
6. Understand that the harder you work, the more luck you will have.
7. Know that valid self-analysis is crucial for improvement.
8. Remember that there is no substitute for hard work and careful planning. Failing to prepare is preparing to fail.
Want more of my recent thoughts on March Madness? Check out:
March Madness 2015: What You Can Learn from Larry Brown
March Madness 1983: More 3 Pointers on Winning at Sales
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My wife does not like Larry Brown. When he was the coach of the New Jersey Nets and decided to depart for a coaching position at UCLA in 1983, leaving Buck Williams and the rest of the Nets in the lurch, Carol developed a lasting dislike for him.
When he ended up in Philadelphia in 1997, my wife's opinion did not change. Even after his success leading the Sixers to the NBA finals in 2001 he was still in Carol's dog house. And when the sportswriters in Philly began speculating in 2010 that Larry might return to lead the Sixers again Carol rolled her eyes in disgust.
I don’t think she knows that Larry Brown is back in the tourney hunt this year as head coach of the SMU Mustangs. The Mustangs are a number 6 seed in the NCAA South Regional and do battle with UCLA today at 3:15 PM EDT.
Now after being married for 37 years I am smart enough not to pick fights with my long-suffering spouse over stuff like March Madness. But I do really like Larry Brown and believe that he deserves his place in the Basketball Hall of Fame as a coach. (For what it’s worth, Allen Iversen—remember him? The “We’re talking about practice, man” NBA great-- agrees with me: he called Brown “the best coach in the world.”)
There are many things that bank sales leaders can learn from him. Here’s my list:
- Get the right players. Brown's last NBA team, the Charlotte Bobcats, was an unlikely combination of NBA castoffs and aging veterans. In the first year he made trades involving over 20 players. While generally perceived to be a player's coach, Brown wants his kind of players, and isn't reluctant to make changes to get them.
- Start with the basics. One of the first things that Brown realized when he took over the Bobcats in 2009 was that they did not know how to play team defense. Even the pros can learn new things. Coach Brown does not assume that professionals know it all.
- Don't look back. Brown's success with Charlotte—he took the team to the playoffs in 2010-- followed a disastrous stint with the New York Knicks in 2005-2006. If your team isn't performing well, it may not be entirely your fault. Brown was able to move on after his experience with the Knicks.
- Balance perfectionism and realism. Brown is known as a master teacher, capable of taking his players to a higher level. He stresses playing the game the right way, and attaches great significance to developing the right skills and habits in practice. His biggest fear is: “I haven't done enough as a coach where these guys encounter something I haven't prepared them for."
This last point is something all sales managers should consider. What kinds of things do you have to prepare your team for? What's the best way to do that? In our busy schedules when can we run the practices that will make our bankers better?
One last favor: Don’t show this piece to my wife.
Who is your favorite in this year’s NCAA basketball tourney? Root for your favorite in the space below.
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Check out our blog for tips for coaching sales performance in banks.
The number one issue in the bank peer data on improving banker sales performance is coaching. Most banks today have a reasonable level of accountability (goals, incentives, reporting) but are behind other industries in sales coaching.
The majority of commercial and business bankers still see themselves as "loan officers" and when they make the time to coach they primarily coach the credit process (getting the deal approved and closed). Sustainable growth in sales performance begins with the front end of the sales process (focusing on the right businesses, not wasting time with the wrong opportunities, using effective value propositions rather than price and structure, etc.). These skills take time, energy, and coaching to develop. A higher level of coaching significantly decreases the amount of time it takes a banker to become competent in these key skills.
Many community and regional banks use a Producing Manager sales leadership model. A Producing Manager typically carries a loan portfolio of between $40 and $70 million and manages 2 to 5 sales team members. A promotion from Commercial Lender to Producing Manager is often a clear signal that the bank values the individual’s credit and sales skills and can often lead to greater management opportunities in the organization.
The rationale for having them continue to manage their portfolios (“We have to take excellent care of the customers and you’re the best person to do that”) makes sense to the Producing Managers on another level; while it may be in the best interests of their customers, it’s also often perceived to be in their interest to hold on to their “meal ticket.” Many lenders see their customer relationships as a form of equity so they’re not averse to holding on to their book of business.
This model is common in banks where sales goals are relatively modest and where real estate-related transactions predominate. In banks where the sales performance expectations are higher the Producing Manager model can have a long-term negative effect on the sales performance of sales team members. Here are several of the problems:
- When Producing Managers carry more than a $10 million portfolio, the amount of time they spend coaching the front end of the sales process (lead generation and qualifying) is generally limited.
- They spend most of their time working their own portfolios and coaching credit (not sales) issues with their team members.
- They can compensate for the lack of sales coaching (growing team members’ sales skills) by "feeding" them deals and consequently helping them to make their goals.
- Producing Managers continue to build their own reputations in the community while their team members are less visible and less prepared for building their own network and customer following.
- Since Producing Managers spend less time coaching sales process (specifically the front end of the sales process) they don't fully develop competency in their skills as coaches and sales managers. This is especially true when they only manage 1 or 2 team members.
- The Producing Manager model is tenable in some situations but it significantly affects sales results when the number of sales team members reaches 4 or more. (If, however, the portfolio is reduced to less than $10 million and fewer than 5 relationships there is some increase in sales coaching.)
- Sales team members in Producing Manager teams grow their sales skills more slowly than those team members with "full-time" Sales Managers.
A common use of Producing Managers is in geographically dispersed teams (sales team members are 50 to 100 miles away). Yet there are many banks that have been able to build effective coaching processes with sales team members who are not in the same location. Sales Managers learn to use the phone, make regularly scheduled visits, and provide electronic delivery of reports and data (sales reports, underwriting information, etc.) to provide the coaching that team members need.
How do banks deal with the need for credit coaching in smaller or more remote markets? In some organizations, senior lenders take on a mentoring role for credit only, acting as advisors on deal structuring. The mentor is not the Sales Manager, though, and is not asked to coach on anything but credit. Regional Senior Credit Officers can also provide the needed guidance on complicated credit matters.
The data show that “full-time” Sales Managers with 6 to 12 sales team members (not including support staff) produce better long-term sales performance. (The number is lower [6 to 8] in commercial banking and higher in business banking and branch teams selling to businesses [8-12].)
It takes time and effort to build sustainable sales performance. Coaching is the key and full-time Sales Managers flat out are better coaches.
Do you agree or disagree? Send me your thoughts at email@example.com.
Interested in more insights on sales leadership? Check out our Sales Leadership Blog Posts.
4 Weekly Tasks for Bank Sales Managers
Quick summary for those of you who don't like watching videos:
1. Start every Monday off with a 20-30 minute sales meeting. Focus on lead generation and pipeline "pull-through".
2. On Friday have sales team members update their pipeline reports. Identify any things that you need to ask about in the coming week.
3. Get a list by close of business on Friday of the calls your team has scheduled for the coming week. See if you like the quantity and quality of the activity. Decide if there are any calls you would like to go on.
4. Repeat the process each week.
Bonus: If you would like to download a copy of a Relationship Planning Guide, click on the link below. It will help your team members identify opportunities with both clients and prospects and develop approrpriate strategies for targeted businesses. You can use it in your 1 on 1 coaching sessions and quarterly client reviews.
Download Relationship Planning Guide
The first holiday gift basket just arrived (Thanks, Bobby!) and I can’t wait to dive in to the goodies. There are other things (many) to look forward to in the next month and half. One of them is holiday parties sponsored by your clients and organizations in your community.
Most bankers I know buy in to the importance of attending networking events. Maybe as a result, sales managers don’t place as much emphasis on it as they should in their coaching.
I think they’re making a mistake. They need to help bankers learn how to work a room better, to become better networkers.
Here are five specific things sales managers can do:
- Get people to go to the right events. What might be right for Jill may not be the best use of Jack’s time.
- Make sure that people have a plan for each networking event. Maybe it’s a list of customers to talk to. Perhaps the goal is to connect with a particular prospect. Having clear objectives matters.
- Follow-up immediately afterward to see what your people got out of the event. Be curious about whom they talked to.
- Go to some events with them and observe how they operate. You’ll probably have some more things to talk about when you debrief the session.
- Ask people periodically whether the events they’re attending regularly are providing an appropriate ROI.
You don’t have to be a great networker yourself. But if you believe being active and visible at client functions and community and trade association events is important, you have to walk the talk. Enjoy the holiday season!
Planning a Sales Conference or offsite meeting in 2015? Our consultants are frequent speakers at banking conferences and bank sales meetings. They have a reputation for delivering sales and sales management "how-to's" in a dynamic, engaging manner. Offering a range of keynote, half-day and full-day programs, their approach helps salespeople and sales managers gain a competitive advantage in every step of the sales process. For more information about how we may be able to assist you at an upcoming sales meeting or conference, call Ned Miller at 610-296-4772 or email him at firstname.lastname@example.org.
I had dinner recently with the head of corporate banking for a regional bank. He was concerned that several of his new sales managers weren't getting the job done. As we talked, it became clear that the challenges they face are the ones that impact all sales team leaders.
To hear six challenges they face, click on the link below.
Sales Managers Need Coaching Too
Our next 3 live webinars are complimentary:
* “Q&A on Prospecting” with Buck Bierly on October 27, 2014
* "Is Cross-selling the Secret Sauce?" with Charles Wendel on November 3, 2014
* "What Small Business Bankers Can Learn from Moneyball" with Ted Triplett on November 24, 2014.
All webinars begin at 11 AM Eastern. To sign up go to http://mzbierlyconsulting.webex.com or call Susan Lersch at 610-296-4771. Space is limited to the first 100 participants. (If you can't make the live webinar, register now and we'll send you the link to the recorded versions.)
Looking for more ideas on how to engage your branch team in calling on businesses? Download a copy of a presentation on “Building Momentum with Small Businesses” by clicking here. You might also be interested in checking out our webinars on coaching branch managers. For more information email email@example.com
- Many Branch Managers know their communities and can find opportunities.
- Feet on the street matter.
- Some Branch Managers are pretty good at this. Others can be too.
- They don’t need to become commercial lenders to call on small businesses. You want your Branch Managers to become “conversationally competent” discussing credit and other business products.
- This isn’t just about identifying business loans and deposits—you’re trying to find consumer loans (and deposits and investments, etc.)
- You can get a lot of traction by coaching your coaches; if your Branch Managers get consistently good feedback and guidance from their Sales Managers, big things can happen.
- Small business owners want to talk to bankers.
- With all the revenue challenges you’re facing, what do you have to lose?
Your team is behind budget. Pipelines aren't exactly where you think they should be. So what do you do? Regular quarterly reviews give Sales Managers a chance to determine what mid-course corrections are needed. They are another opportunity to drive home the important message that top-line revenue growth is critical to the bank's success.
To download the full mp3 or a transcript of the recording, click on the link below.
Are Quarterly Reviews Micromanagement?
70% of the prospecting calls made in this country begin with questions like these:
- “Where are you banking?”
- “What products are you using?”
- “Do you have a loan at Wells Fargo?...Oh, no kidding, tell me about the price and structure on that loan.”
- “What are two things Wells Fargo hasn’t done for you that you wish they had?”
- “Can I have a copy of your statements to consider how we would handle your borrowing relationship?”
We are often leading with loans, but the client is not.
Many bankers are used to trying to lead with loans when prospecting. Bankers also lead with Treasury Services. They also lead with Institutional Trust.
We do surveys with all of our clients to help them analyze where they stand with their business prospects. Our conversations go something like this:
“Let’s look at your top prospects.”
- “What was the source of that lead?”
- “How many telephone attempts did it take you to get the first appointment?”
- “Did you get the first appointment?”
- “If you got the first meeting, did you get the second meeting?”
- “Did you get a third meeting?”
When we asked those kinds of questions with thousands of bankers here is what we saw:
- The first place the process breaks down is getting that first meeting. That is certainly understandable.
- The second place it breaks down is after the second meeting.
Typically, we hear that the first meeting went pretty well. We did a good job on this conversation and found a way to get back in the door a second time. During the second meeting we found out that the prospect is happy with their current financial institution. The prospect really appreciated the conversations in the last two meetings.
However, they end up saying, “I’ll tell you what; we'll keep you in mind. You stay in touch and we'll see what happens. We may be buying some new equipment and we may be looking for some additional treasury services down the road and we would love to keep you in mind.”
At the end of the second meeting, the banker walks away and starts to wait for an event. They are not creating an event; they begin to wait for an event. And while they may "check in" periodically, nothing really materializes.
Note: This is an excerpt from a recently recorded Q&A on Prospecting webinar. To download this excerpt of the podcast, click on the link below.
Where does the Prospecting Process Break Down?
Next live webinar: “Q&A on Prospecting” with Buck Bierly on September 15, 2014 at 11 AM Eastern. To sign up go to http://mzbierlyconsulting.webex.com or call Susan Lersch at 610-296-4771.
Interested in a series of fast-paced refreshers on prospecting? Check out any of our 10 archived webinars on Prospecting Strategies:
Building a Good Prospect List
Leveraging Your Network to Get in the Door
How to Use Your LinkedIn Network in Prospecting
Preparing for First Calls on Prospects
Industry Research as a Differentiator
Business Operations Meetings: Building Strong Relationships with Business Owners
Delving into Financial Operations: Selling to Financial Change
The First 3 Calls on Prospects
Following Up on Proposal – Persistent or Pest?
Getting the Most Out of Networking Events
Last week I received a call from a Training Manager at a community bank. She had been asked to put together a sales training program for their branch managers as part of the bank’s new small business initiative. Most had never had any formal training on how to call on businesses.
As more banks focus on the opportunities in the small business market, many line managers and training directors have been forced to rethink what skills and knowledge branch personnel need to be effective on outside calls. Where do you start? Is it just a training issue or is there more to it?
Based on our work with banks around the country, it’s clear that branch managers need training in three areas: business products, credit and sales. The goal in product training is not to turn the managers into experts, but to help them identify possible opportunities. Credit training is about creating a similar level of proficiency; what you’re really looking for is conversational competence in basic concepts. That, coupled with an understanding of how credit requests are handled internally, is usually enough to get branch managers comfortable discussing loans and lines of credit for small businesses.
What banks intent on developing a proactive small business calling program need to do is design a process that gets their branch managers in front of the customer and prospects with an intelligent plan. Bank sales leaders need to agree on a number of things before launching a training program:
1. What a good small business customer or prospect looks like from the bank’s perspective. Understanding which customers and prospects to pursue shouldn’t be left up to branch managers. A target profile that explains what you’re looking for can go a long way toward eliminating confusion and misunderstanding.
2. What resources the bank will make available to the sales teams. Industry information is valuable but isn’t free. Will you supply prospect lists? How about sample letters?
3. How much time you’d like the branch managers to devote to calling on small businesses. This may be when you decide whether to establish different expectations for different markets based on demographics, perceived potential, etc. It can also lead to a review of any potential infrastructure issues that may impede your bank’s overall progress.
4. The approach you want branch salespeople to take when they call on businesses. Are you emphasizing products or relationships? How should a branch manager prepare for a first face-to-face meeting with a prospect?
5. How the bank will define results. Some banks have fallen into the trap of counting only things like accounts opened or products sold, without looking at the P&L implications of the effort. If the balances never materialize and the fees are waived, what have you accomplished?
6. The role of the first-line sales managers. If you want your branch managers to change their behaviors, what adjustments will their sales managers have to make? Are they able to provide the ongoing direction, feedback and coaching the sales teams need? If not, what support and training will they require?
If you're interested in more of my thoughts on this topic, you can download the presentation I gave at a recent small business banking conference entitled “Can Branch Managers Prospect Effectively?” To get a copy of the presentation, go to http://www.mzbierlyconsulting.com/can-branch-managers-prospect-effectively.