Posted on Thursday 23 January 2014 by Ulster Business
The financial pinch seems to be releasing it's grasp on consumer confidence, and the commercial landscape continues to build energy month on month. There's no better time to take a fresh broom to your operation and use this first month in the new year to press a 'reset button' on some of the areas that have room for improvement.
I've loved the experience of writing for Ulster Business, and as every month goes by I receive more and more emails from readers asking for more information on how the techniques can be used to motivate their teams, sell more, and generally improve the way they work.
Even if you haven't sat down and listed them explicitly, we all have a few resolutions that we'd like to get off the ground in our personal or professional lives. Unsurprisingly, research shows 92% of such resolutions fail, usually because they are too complex or ambitious to have longevity. This month's article aims to offer you a 'cut out and keep' opportunity to improve your personal and professional performance by summarising some the most impactful content from the last year in bite sized chunks.
Less is More
Most businesses build a vast product range to offer their clients a rich choice and varied range, but research has shown that having fewer products in your range than competitors can dramatically increase your sales.
Every decision we make involves a certain amount of mental effort, and those that involve spending money arguably require even more. Few of these decisions are simple; prices vary, specifications are unequal, and everything from availability, size, postage, warranty, and build quality factor into the process.
By concentrating your sales offering you simplify the decision making process for prospective buyers, you achieve better scale economies, develop more specialised expertise in house, and according to studies an organisation that has less product choice can have a conversion rate up to 10x greater than a competitor with more on offer.
It really is better to give than receive, especially when you need something in return. You might have questioned why charities send free pens and gifts in the mail while soliciting donations. When we unexpectedly give our clients or prospects something that is of value to them, they feel an incredibly strong obligation to reward us and are doubly more likely to buy from us. The key, though, is that the 'gift' is unexpected, and unconnected to any perception of an ulterior commercial motive.
Like it or not, we are herd animals. As human beings, we all tend to believe that we are unpredictable, when in fact our penchant for believing that we are unpredictable is in fact one of our most predictable traits. We are compelled to behave in a manner that is consistent with 'the crowd', so when we are told 'most people' behave in a certain way we tend to change our actions to match the crowd.
So whether you need to get deposits in sooner from clients, or to have more staff engage in an out of hours CPD programme – simply telling them that 'most people' are already doing so will dramatically increase their likelihood of engaging.
In an increasingly competitive commercial climate, an organisation's ability to effectively motivate their troops has become essential.
In one experiment, a group of individuals were divided into two basketball teams; half were told they were naturals with an innate gift for the sport, and the other half were told they weren't quite up to muster. The truth is, they were divided randomly with no attention paid to their competency in the sport, but the impact was astonishing. The team that were told they were naturals dramatically outperformed their counterparts.
The applications for this technique alone in your organisation are vast. Talk of 'a difficult year ahead' and 'a market that's stacked against us' may be honest, but it could be having a damaging effect. When people believe they 'can' do something, their likelihood of making significant strides towards achieving that goal increases exponentially.
Small Teams get Big Results
The more complex the problem the more man power we should throw at it, right? This may not be strictly true, and a fast growing body of research shows that when it comes to teams, bigger is rarely ever better.
Amazon CEO Jeff Bezos famously said that he wanted his entire organisation to be made up solely from "...two pizza teams: if a team couldn't be fed with two pizzas, it was too big". Bezos gave oxygen to the argument that in modern business, maybe one head might just be better than two. It's true to say that larger groups offer a larger collective capacity in some respects; they'll have more combined personal and professional experience, they can certainly manufacture goods in greater quantities. On more qualitative tasks though, like creating a strategy, developing a brand, or implementing change, there are a lot of reasons why taking people to the job at hand might equal a lot more results.
The research shows that levels of personal performance reduce and individuals become dramatically less engaged when they see themselves as just one tiny cog in a complex organisation.
Back in The Office
New year resolutions fail virtually every time, mainly because we don't see the impact of our efforts immediately and subsequently lose interest. Instead of trying to start a revolution, you'll see much more impactful results if you make small changes here and there that – when added together – create a result that's greater than the sum of its parts. So start 2014 the right way by cutting out this article and refer back to it every once in a while – and maybe you're resolution will start a revolution!
Find out more about David's work on www.davidmeade.co.uk and follow him on twitter @davidmeadelive