THIS IS MY 63RD BLOG ON UNDERSTANDING MONEY TOOLS
In this blog we are going to discuss the relevancy of “real”
versus “perceived” value. Then, we will hit some practical sales applications
that should benefit you in finding employment, raising money or being a better
manager.
Real and perceived value can exist separately or somewhat in
unison in the art world, everyday life and where we are heading in the business
world. Hopefully, this will help you in finding employment, raising money,
hiring employees and more.
Of the two, the most important to me is perceived
value. In every financial
prospectus and red herring (that precedes the prospectus) there is a disclaimer
that goes somewhat like this, “past performance does not guarantee similar
future results”. All too often
decisions are made based almost entirely on past performance or what I refer to
as “real” value. Real value is the historical time frame to the current time,
really nothing to do with the future. The benefit of real time is that it is
accounted for. “Perceived” value/perception of value only exists in the “mind
of the beholder” and every individual is different. The real genius comes into
play when you need to take the history of a business and carry it forward into
the future with success. Like an engineer who takes the whole and breaks it
into parts and pieces, the good businessman will separate out the parts of a
company and look at the positives and negatives. Using this information to an
advantage he/she can create a new perception of themselves or their company.
Whether it is you trying to get a new job or perhaps trying
to sell your business idea or company to a private party, venture capital firm
or bank it is all about perception of value. If it is a new job you are
interviewing for know the problems and weaknesses of the company where you are
applying and tell them how you can solve their problems, add value and make
them more money. In reality there are no guarantees of this, but the perception
that you can do this is all-important. It is about “painting the future
picture” of where you are going. Yes, your past is important but as we know
there are so many variables that affect business there certainly are no
guarantees of future success.
Let us relate this to the business world. In 1996-97 Apple
Computer was failing, hitting a low stock price of $4-6/share. I remember
talking with two young men who were working for Apple and they were out looking
for other employment. The
perception of value and success were very low and real. In steps Steve Jobs to
again head up Apple. He had new perceptions as to where the company was going
and Wall Street followed. Stocks
are a prime example of perceived value. Count the number of companies selling
for many times their earnings, Google, Amazon included here; all perceptions of
value.
All too often higher level management jobs go on the basis
of history, big salaries included. That is all based on current real time, few
managers hold up to what was perceived of them.
There are many stories of Wall Street people who were paid a
ton of money because of their family names or education and employers had a
perception of value. High-level jobs go on the history of the individual, and
sometimes “the good old boy” network. Many times, in both these cases, the end
results are not good.
You need to convert perceived value of yourself or your
company into real value. I have worked with certain techniques to accomplish
goals mainly in sports and the best is “visualization”. Get your hands on a book called
“Psycho-Cybernetics” written by Maxwell Maltz in 1960. The effects of mind over
matter and visualization in sports and life is tremendous. A person who
visualized themselves doing a particular movement versus one who actually did
the maneuver had very similar outcomes. Using this technique in business and
making money will be similar. See the end result and how you get there. Since
Maltz’s writing his book several modern day gurus have used the same techniques
including Tony Robbins and Zig Zigler.
Their books are very good.
Let me delve into other business related areas and examples
that might help you. First, I have little respect these days for most corporate
management and frankly feel they are missing the boat; may I say stupid? Many companies are unattached and
impersonal when it comes to employee relations. That is what they want. They
get the same in return, an employee who is not faithful to the company, fearful
of losing their job and not reaching full potential. In my many years in top
management with companies and owning companies, it has been my experience that
you get much more productivity with happy employees who want to be at work and
are team players. When I worked at
Energetics, Inc., a very successful oil and gas exploration company, we
contracted with a consulting psychologist to work with employees at all levels
to accomplish this. It works. Good employees need to feel wanted, need to be
happy and content with their work, and then production follows. We all have
problems and issues, however if you can take a problem and not be afraid of it,
but welcome the challenge and see it in a friendly manner we will overcome the
problem and resolve the situation. Don’t hide from the problem, face it. One technique is to close your eyes,
picture the problem as a big balloon. As you concentrate more on the problem
and the balloon it becomes smaller and less meaningful in the scope of
life.
In sales this is really so important. I see fearful sales
representatives, fear of failure, not meeting quotas and fear placed on them by
sales managers. Wow, the wrong way to go. Customers can feel these “vibes” and
pull away, sales go down, not up.
Customers do want professional attention, but they also want the
experience to be fun, happy and satisfying….a win/win situation. They enjoy the day, you enjoy the day.
Have you ever heard of the “Peter Principle”? The term used
to exist, not sure it does today. Essentially you can take an employee and
raise him through the corporate ranks. At some point, you end with a barrier.
The person is no longer happy at what he does, or is not capable of doing the
best needed in that position. Let me give you an example. I was running a
company in Denver year’s ago. Analyzing sales reports one individual just was
not making expected sales quotas. We had very good sales training by an
individual in the company, so training was not the answer. (Normally, I don’t
blame an individual for not performing but management for lack of good
training. I am only of average intelligence, the same holds true with most
employees. Each individual learns differently and at different rates of speed.)
In this case, I asked the employee to join me in my office. We got into a real
heart to heart. He was middle aged, two kids at home, married and needed the
income. What was wrong? He hated
his job and what he did for a living but needed income. So many like him today.
Here is how we resolved the matter. When I found out he would be better in a
different type of sales and product I told him I would get on the phone and
help him get new employment through my contacts. The gentleman actually was so
relieved to spill his guts out to me on this, that he started crying. It is so
sad we don’t all work together for a better corporate environment and happier
world! Each individual has “transferable” skills, and therefore this person
needed a new product to better support his skills.
In sales some people are better with tangible products and
others can sell intangibles. Let me explain this. A good example of an
intangible product is life insurance. As long as a company is A rated and
highly respected there is little difference between one company and another.
The numbers are calculated on actuarial statistics so one company should not be
much higher or lower in cost than another. It’s a tough sell. A person needs
lots of relatives, friends and country club contacts!
The other type of sales is the selling of a tangible
product. The closer you can get to a unique product, one of a kind with
quality, the better. You may have to do an explanation of features of the
product and benefits to the customer, but you hopefully have a very good
product without much competition.
As long as I am on the stupidity of corporate America permit
me to continue. One of my favorite topics! Many corporations don’t want to hire
employees who have been trained by other companies or have certain mindsets.
They want to train the person exactly how they have been doing business in the
past and want a “robot”, or someone who thinks as they do. This is a perfect
business plan for failure. You need a balance of left brain and right brain
thinkers. I went to school grades
1-12 with this mindset so I know: “you will do as I say”, no free thinking….only
there was more of a German accent connected to it! There is a very successful
and wealthy Japanese businessman who has been written up many times. He likes
to hire young people who have not been tarnished by business, but positive,
free-thinking young souls who bring fresh ideas to the table. Companies need
new ideas from the outside to stay ahead.
I believe a good company let’s their employees have freedom.
Management needs to monitor actions and only rein the employee in if they have
overstepped boundaries. People want to be independent, feel like they are
contributing with new ideas for the company’s advancements, success and have a
feeling of accomplishment.
Here’s both a life and sales tool that could perhaps help
you. As we have grown into the
“New World Order” many of the millennials have forgotten about old traditional
respect. I have a good friend in sales in his mid-30’s. He is quite successful
in sales and uses “yes sir, no sir”, and the same with “miss and ma’am”. People respect him for this and above
all remember him as it is unusual in this day and age of curtness.
Don’t forget the journey though life is what is important
not the end. If you reach the end you are either dead or wondering what is next
and that will leave you unfulfilled.
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