Posted by Martin Harshberger on Thu, Jun 17, 2010 @ 04:08 PM
I get asked this question often, and it’s confusing because some people use the terms interchangeably.
The best way I can describe the difference is to explain what I do with my clients.
A consultant is hired to study a process or specific issue within the company, whether it’s cycle time reduction, cash flow, or whatever. He of she comes into the business, conducts interviews with the appropriate staff, and learns how the process is being completed now. The consultant then looks at what the outcome is expected to be, compares it to what it is now, and develops recommendations.
A business coach on the other hand does not take the time necessary to become a subject matter expert. He or she believes that the company management knows more about their business that he or she will be able to learn in a reasonable amount of time. The business coach facilitates a process that brings the management team together to solve the problem or issue.
Which way is better? A consultant is actually better if the problem is new to the business and the expertise, skills or experience doesn’t exist within a business. An example would be perhaps converting to a Lean Manufacturing System where outside guidance is needed for initial development and training. Hiring a consultant for a general business issue or strategic planning is perhaps not the best way to go. The consultant will need to take the time to study your market; your industry, your product and depending on the complexity this could take a lot of time. You as the business owner are paying for that time while he or she learns what you already know for the most part.
A business coach uses proven tools and processes to facilitate the outcome by using your internal knowledge and challenging you and your staff to defend your assumptions and directions. An experienced business coach will use his or her knowledge gained from other markets or industries to lead you toward new and different ways of looking at your business. This is usually much faster and less expensive. In addition the solution to the problem or the development of the strategic plan is yours, you own it and you’ve developed it with outside help. It’s not something that is presented to you in a formal document and left with you as someone else’s solution.
I do both coaching and consulting depending upon the application and the problem. If the business doesn’t have the knowledge internally I, or one of the members of my network will help them develop it. I till try to facilitate ownership of the solution to insure better execution.
For things like strategic planning, diversification, improving bottom line profits I take a coaching role. I use the knowledge available internally and provide my experience and tools to help them look at things differently and to develop custom solutions that are right for their organization.
Be careful when choosing with a coach or consultant. It’s relatively easy to get business cards printed and call your self one or the other. Look for background and a solid track record.
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Posted by Martin Harshberger on Thu, May 06, 2010 @ 01:54 PM
In nearly all of the companies I talk with the need to improve sales results is one of the top three issues. Either sales results are lagging behind plan, or sales are being made for the wrong reasons. I know, how could there be a wrong reason to close a sale, right? There are actually many:
- Selling too low and cutting into margins
- Selling with unreasonable delivery times driving up production costs.
- Selling using rebates or “freebies” to get the sale
Those are just a few of the reasons I can think of.
Why then do companies allow these sales to happen if they aren’t a win / win for the company and the client?
The main reason I see is the sales force isn’t performing as well as it should and the company has few options. Bad sales are better than no sales, and “at least they cover overhead”. While that may be a good argument for the short term, you are setting expectations with your customers that are hard to break.
The real answer is increase overall sales effectiveness to have options to take or leave business that may not be desirable.
To do that you need to understand why the sales organization isn’t performing as needed. It’s easy to blame the sales reps, and many companies cycle through numerous people and get the same poor results. In my book, Bottom Line Focus I used the term “everybody sells”, and that concept must be understood and accepted to solve the problem.
The chart below illustrates the concept well.
The organization must have a clearly defined and documented strategy that everyone understands and buys into. If your sales force doesn’t get it, or doesn’t own it, they will invariably let it show to the prospect.
The organizational culture must visibly support sales. All functions have to be aligned to focus on delivering customer value.
The organizational infrastructure must support the sales goals and be aligned to be effective in delivering the product or service.
The sales rep must have the knowledge to sell the product or service. Have they been trained on the benefits to the customer of buying your product or service of do they simply sell features and price? Do they understand the axiom find the problem and sell the solution?
The sales person’s attitude must be positive toward the company, the product, the and the market. Are they a reflection of the organizational culture? (good or bad)
The sales person must have the skills to relate to the prospect in an articulate manner that fits the market. Can they deliver the message clearly why your product or service is the best value for your prospects money?
Sales effectiveness is an organizational responsibility. Management must develop a product that meets the customer’s needs at a price that fits the market and allows a fair profit to the company. Manufacturing must provide a quality product and deliver it undamaged and on-time. Administrative support must make the buying process seamless and hassle free. Customer service must treat every customer problem as an opportunity to show the company cares about the business.
Only when you understand the term everybody sells can you develop better sales results.
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