Working with such varied cultures is quite an experience; especially when language becomes a constraint.

Personally, I have always refrained from working with clients that I am unable to speak with due to language barrier. Does that mean that I have seen companies working with people who neither speak, write or understand even a word of each other’s language? Yes; and if you are NOT shocked, I am not amazed

One of my portfolio companies had an Italian client whose project was a little too off the projected timelines (about 2 months and hence, lagging payments). To top it off, I realized that the only way of communication with this client was through emails and Google! Are you confused? Let me elaborate…

The client emailed their concerns in their native language (Italian), which we translated to English to comprehend (using Google Translator). Then, we sent our responses in English, which they translated to Italian (presumably).

I am still trying to figure out how we managed to secure this project

Needless to mention, this account had become quite a burden and we had scheduled an internal meeting to decide the ‘FATE’. A quick history – there was a never ending chain of emails where our PM and the client’s CTO wouldn’t agree on some supposedly ‘pending’ work. Our PM actually deemed these as ‘change requests’ / ‘NEW SCOPE’ and refused to do it within the existing project (scope)!

I could see the Project Manager and our CTO planning a wrap up. Though a bit confused, I managed to mumble, “Have we tried speaking with the client on the project issues?”

As expected, I got an echo from both, ‘Well, they don’t speak or understand English and we have really wasted a lot of effort in writing ‘lengthy’ explanation emails”.

My next question was if they had tried to schedule a call with them, to which they remarked that the client had declined on two occasions when contacted by one of our EX-Account Managers! Was this a clue? Somehow, I felt that we should write one last email to this client stating that we need to discuss before we could continue the project.

Within an hour of my email, the client responded with a yes! It took me 2 hrs to resolve the discussion because of the language barrier but my company learnt a really GOOD lesson – Communication is key!

I guess even I wasn’t expecting this, but the client himself exclaimed that why didn’t we (both my company and his own) tried to sort things over a call before. Trust me, we could have actually averted this disaster if this initiative could have been taken long ago!.

Anyway, as a result, this ITALIAN client has become one of the biggest accounts (yeah, a surprise) that will long be cherished by my employer.

2010 was quite an eventful year for me and hence, my disappearance from the Blogging circuit!

Anyway, I am back and ALIVE with my next post coming soon…

So, let me start with a discussion I had with an ex-colleague that I met on the very first day of 2010! This ex-colleague is a technology guru and has had a great record with all the companies he has been associated with. He took to entrepreneurship about a couple of years ago and has managed to build a company with 20+ employees. Indeed Impressive! What next? He just hired a BD Specialist and unfortunately, is worried.

I always thought that a BD’s performance is measured by the business he generates but my views got a severe blow after the discussion with this ex-colleague!

In his words: “My BD guy seems to be working fine, but I am really worried about the time he spends in office. He is only spending 6 – 7 hrs in the office which, I am afraid, will impact the culture I have built in the company!”

Empathizing with his concern, I had to ask: “Haven’t you spoken with your BD about this?” to which he replied, “Oh yes! I did. But he claims that he has to work 2 -3 hrs in the night (mainly telephonic cold calls) as our prospective clients are based in US (while we are in India). Why does he have to call them, can’t he contact them through emails?”

I have to mention this, but I was totally shocked by my ex-colleague’s attitude. 2 years in start-up, 20+ employees, willingness to expand business, but stuck with company culture and (what the#$###) why cold calls??!!

With this post, first, I am not advocating that one should ignore company culture in order to expand business; and second, are cold calls dead? I really pity the plight of the BD guy. If he is sincere to his work (which we had to agree upon since he did manage to get some deals) I am sure he is going to move out frustrated from this job, quite soon!

How difficult is it for other employees in the company to understand the role and efforts of a BD? As in most of my previous posts, a BD always likes his independence and can only then perform to his best. Holding your own BD team just to excercise control never helps the company or the BD!

Moreover, my main concern here was the second point, which was – “Why does he have to call them, can’t he contact them through emails?” It’s a pity that people have started thinking that the traditional method of cold calling is of no importance. If you are a regular LinkedIn user, you can see the same question over and over again in BD focused Groups (Is cold calling dead?). In my opinion, Cold Calling is not dead and neither has it taken a back seat; it has just taken a different form coupled with other forms of modern marketing methods. The introduction of SEO, SMO, SMM has just made “Cold Calling’ more effective as it is backed by them.

I have to mention that I really laugh at people who think that it is possible to get great business by ignoring the traditional methods of client acquisition! They are certainly headed towards DOOM…

With this, I also promise (also my New Year resolution) to be more regular with my posts. So starting Jan 2010, I should have at least 1 post every two weeks and slowly up to 1 post a day (by 2011)!

Really looking forward to achieve this..

To give an insight on their backgrounds, one of them has been working in the Mobile (VAS) domain while the other is an entertainment evangelist! The duo have actually joined hands to come up with a stealth product combining their expertise.

Anyway, our discussion was more oriented towards how the three of us had taken steps to grow and get/give the best to the companies that we worked with! Like me, they too were into BD role in their respective domains and had worked with many startups . The one thing that was most strikingly common was that all of us had been through a phase in these startups where even after working day and night (like owners of business), we were made to realize that we were dispensable. We had our list of achievements, had moments where these startups gave us recognition & rewards and then, once the markets and priorities changed, we reached a stage where the best possible way was to part with them and look for another!

Why do such stage arise, especially in startups? Even with successful BD track records and numerous client recommendations, why do many BDs face such wrath?

Let us think back and check if it is the startups to blame or is it the BDs?

Before a blame game debate can arise, I think it is more about the way a startup BD works and his key driving factor. A startup BD is a mere entrepreneur in disguise (at least I feel so) and loves complete ownership of his work. The worst comes when the startup BD fails to draw a line and takes his ownership too seriously trying to change the company’s vision as per his views. I have spoken with several BDs like myself and it has always been that we are quite stuck in time. We like to work independently without any fixed responsibilities and are always willing to shoulder that extra bit of work that gives us a chance to know and experience new horizons!  This slowly gives a sense of extreme ownership and then, we start molding the existing business based on our feel and plans (read dreams).

Henceforth, when a startup starts growing and reaches a stage out of its infancy, like other companies, it gets fixed to its vision and becomes quite self sustaining. For them, this is required as it was ‘their’ main idea and they had always planned to reach this very stage. I guess this is actual time where the startup BDs are unable to cope up with the company’s new found / transformed needs. Thereafter, with growth (of startups), comes the structured functioning, leading to defined roles, specialized departments etc. which in-turn reduces workload for the ambitious Startup BDs. Mostly, at this point, these companies are out of the ‘startup stage’ and get back to the 9 to 5 job culture without much options unless the company is exploring new horizons. Unfortunately, even if they do, now, they have the money to hire a specialist.

I strongly feel that this is the key reason for startup BDs like me to move out of any company at this stage. I think my experience with several  startups is triggered by the fact that once I decide to leave one (when they have grown), I always end up joining another in its early phase!

Let me know if you guys share this view….

It is indeed important to regularly mix both ‘stealing’ and ‘creating’ customers as, for any business, it is really difficult to survive with just either one of them! Most companies in outsourcing follow the pattern of first ‘stealing’ the customers as they (customers/clients) are known in the domain (easy revenue generating targets) and once this is achieved, they move to creating customers. This is also due to the fact that creating customers is quite a tedious task unless a product is completely new, targeting an untapped market. A good instance is Apple’s iPhone bringing multi-touch, accelerometer like features in the market that did not exist or at least their needs weren’t highlighted before.

But, the market was an existing smartphone market, hence, lead to ‘stealing’ customers from other competing brands!

1) Advertise at the right place
The link to any porn site will always be within a related content. From other adult sites to porn images, videos, articles you can reach out to tons of such sites with every site displaying a fresh content. At least, they always know where and how to find target customers!

2) Put the most eye-catching content on homepage
The homepage will always be full of flesh, celebrities and the ‘amateur’ models. The better the pics and preetier the models, the more are the chances of hooking the customer.

3) When you pay for more, you really get more
So, missed out that celeb home video that just leaked. Sign up and get the access. Address the right concern and that will make your customer pay satisfactorily for the service!

4) Always update and fill website with latest content
Nobody will want to look at the same pics and videos for years. Henceforth, same product, testimonials, features, achievements are always a NO. Keep you website full of NEW content and see your customers drool on your website.

5) Adopt latest technology to retain interest.
From computers to mobiles, the content of these sites is readily available. It has never been denied that porn and technology have always walked hand in hand but this is something most other industries lack. I have come across mobile companies whose content is not even optimized for mobile platforms that they boast being experts on!

A week ago, we had a tryst with a UK based client who was looking to outsource some development work. After having several discussions with him, we realized that most of his work was on a technology that we did not have much expertise in. Even though we could have still taken the contract (to possibly further outsource it and eat commission), we decided otherwise and apprised the client of the same. Furthermore, we gave him a detailed analysis on how the product could be developed as per his needs and also referred to him ‘a best bet’ for such a project.

Today, we received a thank you note along with a referral fee from this client who has also promised to have his next project completely outsourced to us! Are we happy? You bet!

And this isn’ t the first time a prospective client has guaranteed to give us work. We have a number of such clients in the past who just wouldn’t let us go even if they get the same service at a cheaper price (Exception – Unless they are actually going bankrupt ). So, what is the key that has held them so tightly that we don’t even fear loosing them?

Yes, it is indeed honesty!

Our priority while working with a client is to tell him beforehand what he should and should not expect from us. This is definitely very impressive for the client as he never feels blind-folded. Being blind-folded implies being at risk and that is the last thing any client looking to outsource will have in mind.

So, to conclude, set your cards straight and enjoy the game!

Related Quote – Under promise and over-deliver…

Any instance of your honesty winning you a new client? Please share…

Have you ever come across a client that you regretted to work with? If your answer is a ‘Yes”, you might want to read more..

The first few years of my industry experience were quite eventful. I started off working as a customer service rep when I was trained on the ‘A to Zs’ of customer service. It was then when I learned (or was forced to learn) that, ‘Customer is king’. Quickly transitioning to a core Business Development profile thereafter, I graduated myself to learn that even Client is King (This was an acquired learning, from my past experience). So, every time I had to deal with a client, all I had in mind was: going that extra mile, pleasing the client, client retained is a client earned etc. However, what I missed all that while was an experience / opportunity to segregate a promising ‘good client’ from an exploiting ‘bad client’.  Therefore, I learnt it the hard way…

Anyway, here are 5 categories of some ‘not-so promising’ clients worth avoiding:

1) Dictator

This client always starts his sentence with ‘Budgets are tight’ or ‘No Money’ and ends with “The bottom line is – I need quality.”

Everyone has the tendency to expect more and more by spending less, however; there is always a limit and everyone has to respect it. I’d like to share a joke that my father usually cracks when he comes across such clients.

A guy walked up to a cab with a post on the window – Price per 10 miles: $ 35, $ 20, $ 10

Surprised, the guy inquired the driver about the significance of the three different prices, to which the driver replied – “It’s all about service. $ 35 is when I drive very carefully avoiding any road bumps, following traffic rules taking care of your luggage WHILE $ 20 is when you have to hold on to your seat belt and preferably, have your eyes closed while I drive”. Shocked, the guy asks “what about $ 10?” to which the driver, with a raised eyebrow hints, “Well! It’s the same as $ 35 ride but just that you will drive and I shall be resting at the backseat!” Guess, this explains everything – At one stage, you can either talk price or quality..

2) Comparer

Your every quote to this client is acknowledged with – ‘I have other vendors quoting much less, do you want to revise?’

This is another trap! Here, you would need to step back and compare if other clients too echo the same when you send quotes to them. If so, well, it’s an issue with your pricing and not the client, but if it is only this client, you better pull up your socks!

3) Middleman

This client is not the actual client!

Most of the time you will come across clients who are in-turn serving their clients with your product. This model is completely fine to work with, however, always has a word of caution. Whenever you work with such clients, it is really important for you to know about your client’s relationship with his client. Many people tend to ignore it in the beginning which always results in no fruit to their hard work thus leading to disappointment.

4) Bigmouths

This is your pompous client!

These are one of those who would always speak millions or billions but would never part with even a penny. The best way to identify them is, either they will be too friendly in the first go, or they will start promising huge pipeline of work without even starting a work relationship. You need to avoid such clients as they are sheer time waste and bound to dupe.

5) Collectors

These collect quotes and samples (always target anything that you can offer for free)!

Somehow, I had been quite fortunate (rather unfortunate) to come across this category, frequently. These clients would always approach with a requirement, then wait for the quote or prototype and finally vanish! Yes, you might feel that they left genuinely because of faulty sample or overpriced quote, but the point is they should give a feedback! I am refering to those who just disappear as those are the ones who are just testing the waters…

Do you have any more to add?

This is an IT Staffing company which has two separate Sales Teams focused at the same market. Both these teams are managed by their respective ‘Team Managers’ who are increasingly pressurized to achieve targets. Both the teams are very aggressive and really competent, however, there is always a sense of heightened tension in every member of the team.

THE PROBLEM
Both the teams have one star performer each who are really great in selling services to their clients. However, their aggression and motivation to earn incentives breaks all codes of conducts. No, they do not cheat their clients, but what they do is even worse, which is, that they try to hunt down (or steal) each other’s clients. To give a clear picture, they reach out to each other’s clients and then offer them their service at lower prices which in turn eats up the profit margins of the company. Moreover, their respective managers too support them in this endeavor, obviously, to have their targets in line.

How would you manage such a problem, because in the long run, it is the company that suffers!

SUGGESTED ANSWERS
Here is what my friend has in mind:
1) Lay off either one or both, as they are ruining company’s culture.

My thoughts:
1) I agree with the above, but I personally would take it as the last resort! This does not imply that I am not worried about the company’s culture and practices, but I guess it’s a little late to address the situation.
2) Have them focus different exclusive areas/clients – (Given their expertise, I would love to put them where they fit best…)
3) Have both of them work together so that they can build a great team!

Any suggestions?

Here are 2 of my favorite comments that I got from my LinkedIn Network:

(By Paul Egan – http://www.linkedin.com/pub/paul-egan/6/881/535)
This is a constantly re-occurring issue when you have motivated and effective sales people. The issue here is not necessarily the behavior of the sales people, but the looseness of the rules which management have not defined according to the company’s real requirements.

The solution is actually very simple – just ask yourself what motivates sales people. The answer is closed sales = achieved/exceeded targets and monetary rewards. If the system’s rules allows them to poach sales then they are not breaking any rules. The management just never defined the rules in the desired fashion in the first place.

The solution is
1. Assign clear territories and/or client lists to each team
2. Any and all sales made to a client are ONLY attributed to the sales rep/team that is assigned that client. This will very quickly stop the poaching of clients as you will have removed the incentive for poaching.
3. As an extra incentive, it may be wise to create rules that open a client to the other team if (a) no sale is closed within a defined period or (b) no communication is logged with that client for a defined period.

Don’t fire your best people. Highlight them as examples for the rest to learn from. However, the management must 1st decide on the business rules for the sales teams to follow.

(By Michael Hoffman – http://www.linkedin.com/in/mrhoffman)
Comp plan drives behavior for best sales people and drives where they spend their time. Pay for behavior you want and remove rewards for unwanted behavior.

This also seems like a hunter farmer issue where hunters, new business sales professionals, are poaching what should be farmers, upsell/cross sell, internal sales, opportunities.

Guns versus rakes is never fair and compensation should be different for new/new business. This may also be a relationship management strategy issue since it is a new company. This will become a more serious issue/opportunity when the company introduces partner and indirect sales.