Lessons in Leadership
A story of two salespeople
A praiseworthy value system makes the difference
By Robert L. Bailey
I have in mind two salespeople. One is unmistakably a very successful person whom any salesperson would want to emulate. The other is, well, average.
They operate in the same community—with the same economy, the same competition, the same products and services, the same prices, the same everything.
I wish I could bring these two salespeople into a room with you right now so you could visit with them for a while. After the visit, I would like to ask you to identify the salesperson who has achieved superior results and the one who is average.
Salesperson No. 1 has a fantastic “sales personality.” He has a winning smile; he’s friendly; he’s courteous. He has many people-person characteristics that are essential in sales and leadership. He would be comfortable visiting with you, and you’d enjoy going to lunch or playing golf with him.
Salesperson No. 2 isn’t unfriendly as such, but he comes through as being a little shy. He’s friendly but not as outgoing as Salesperson No. 1. He’s not especially good with small talk.
Which salesperson is the huge success? Chances are your guess would have been wrong. It’s Salesperson No. 2. No. 2’s success involves something much deeper—and much less obvious—than having a winning personality or being an excellent conversationalist. He always shoots straight. His word is solid gold. He does what he says he’s going to do—when he says he’s going to do it. Always. He exemplifies integrity to the core.
Although it may not be obvious in an initial conversation, over time customers detect the differences between Salesperson No. 1 and Salesperson No. 2. If Salesperson No. 1 has to stretch the truth a bit to make a sale, he might be inclined to do so. And he may become just a little careless in following through on what he had promised—or he might violate other principles of integrity, perhaps just slightly, if a sale depends on it, a quality that will eventually become obvious to his customer base.
Salesperson No. 2 has a value system that any of us would admire—an inner quality that he would never compromise. His clients have learned over the long run that they can trust him totally.
The record speaks for itself
Now let’s look at the sales records of Salesperson No.1 and Salesperson No. 2—who, once again, operate in exactly the same market, with the same competition, the same economy, and even the same products and prices.
Salesperson No. 1’s record of new sales isn’t exactly shoddy. Typically each year he has an impressive record of new sales, some years up by 40% of more. Most sales people would walk through glass for new sales like that. Salesperson No. 2 normally has more modest new sales.
Over a period of years, however, Salesperson No. 1’s commission income has remained relatively level while Salesperson No. 2’s income has skyrocketed. Why? Over time Salesperson No. 1’s customers have become disenchanted with his “service after the sale,” a critical dimension of the property and casualty business. When some customers begin to question his integrity or lack of personal service, they move to another agent.
Salesperson No. 2, on the other hand, has persistency of 95% or higher. His customers stick with him because they are impressed with the value he provides. His customers want to do business with a person they like and can trust totally.
Do the right thing
The successful salesperson has a genuine relationship with customers; is truthful—always; never lies or deceives; always delivers what’s promised—when it’s promised; has integrity to the core. The same holds true for leaders.
Customers will know soon enough about the ethics, trustworthiness, character and integrity of any person with whom they’re dealing without being told. With ethics abuses so far reaching today, it’s easy to get the impression that no one cares. But some one does care. Your customers care.
Successful salespeople, and leaders of successful organizations who remain successful year after year are ethical people—who do the right thing in their dealings with others—always. Ethical people and ethical organizations tend to be successful over the long haul, while unethical people and organizations are likely to fail ultimately. Although at times it appears otherwise, “everyone” does not violate ethical standards.
A specific culture permeates every business organization. It’s a philosophical framework that guides the actions of every person associated with an organization.
You can name companies for which you would not want to work. I know I can. Every person who works there says it’s a lousy place to work. That’s a philosophical framework—one that you would not want to emulate. I know one company that takes apparent pride in calling itself a Burn ’Em and Churn ’Em Company. I know several people who work there and make good money, but many of them tell me that it isn’t worth it. Interestingly, this company made the news recently in a corporate scandal. It was not a surprise.
Likewise, you and I can name companies that are good places to work. They have a reputation of treating their people well. That’s a philosophical framework—one that would be well to emulate.
We can name companies where we don’t want to do business. They have a reputation of taking advantage of customers whenever it might improve the profit picture. That’s a philosophical framework—again, one we would not wish to copy.
And we can name companies where we enjoy doing business—because they give customers good service and good value. Always. That’s a philosophical framework we should admire and emulate. And that’s the kind of a culture and philosophical framework that successful leaders and salespeople build and operate within.
Back in my corporate days I regularly met with new employees. I would tell them, “Regardless of the circumstances, regardless of what the contract says, we always want you to do the right thing. Do you know what it means to do the right thing?” I would ask.
After asking this question hundreds of times, I found that most people have a pretty clear idea of how to define it. In nearly every case there is full agreement on what the right thing is.
“If your actions are described on the front page of our local newspaper or U.S.A. Today, will most people read the account and say, ‘I think they did the right thing.’? That’s the kind of action we encourage and expect,” I always point out.
The values demonstrated by Salesperson No. 2 are the values the public expects of highly successful people. This is the behavior all successful people must demonstrate in all personal actions and business transactions.
That should be obvious. But it’s overlooked too often. *
The author
Robert L. Bailey is the retired CEO, president and chairman of the State Auto Insurance Companies. He is now a speaker and consultant on building successful businesses and is the author of Plain Talk About Leadership. Visit www.bobbaileyspeaker.com, or contact him at (941) 358- 5260 or bob@bobbaileyspeaker.com.