Our enrollment conversations are likely the first substantial experience our potential clients have with [...]]]> One of Steve Chandler’s 18 Disciplines for enrolling coaching clients is to “sell the experience, not the concept.” Rather than abstractly describe what you do, actually do it so that the client’s decision is to “continue, not to start.”

Our enrollment conversations are likely the first substantial experience our potential clients have with us. Of course we want them to be positive. But be aware that positive does not mean pleasant.

Positive means moving the client in the direction of their true goals – their heart’s desire. And of course it always means being professional, respectful, compassionate, and service-oriented. But positive in this context generally requires that we raise the client’s tension level – which very often is unpleasant for them. Unpleasant, yet ultimately in service to them.

Early in my coaching career I conducted many enrollment conversations that were pleasant and even filled with energy and enthusiasm. Sometimes that energy and enthusiasm carried the day and the client signed on – but many times they did not. I spent hours wondering why this was the case.

As I’ve learned through extensive study, my own coaches, and trial and error – the enrollment conversation actually must be unpleasant for the client. It is essential to raise the client’s tension level so that they really experience the gap between where they are and where they want to be. The future consequences of their current path must be brought into the present. It is not enough to discover the client’s pain – you actually have to magnify it so that they can really see it – and from there help the client generate the commitment to change it. Without this level of tension – which is not pleasant for the client – the commitment to work with you is usually not there.

Raising this kind of tension is a skill and an art that must be mastered. It is not about a script or merely asking certain questions, although that is part of it. It is not about conducting an interrogation or manipulation – it is a compassionate, consultative diagnosis of the client’s true opportunities and challenges. Most importantly, it requires a willingness to take a stand for your client in the middle of this tension.

The problem for many coaches is that we yearn for the client to like us. That’s our first problem – and actually the root of many of our sales problems. So if we raise the client’s tension level and see them become uncomfortable, we start to feel uncomfortable. We want them to like us, so we diffuse the tension rather than allowing it to magnify. Yet this is exactly the opposite of what needs to occur to help the client step into their bigger vision for themselves.

Not only does this not allow the client to get really clear on their current reality, it also diminishes you as a coach. Deep down, clients do not want a coach who goes easy on them. They want a coach who brings out the best in them, even if they have to experience difficultly in the process.

So for my readers who are coaches and consultants, the biggest issue to master is yourself. How masterfully can you raise the client’s tension level? What goes on inside of you when you start to feel this tension? Do you try to diffuse it and run back to safety, or do you allow it to unfold and hold that tension for the client to see?  When you learn how to master this part of the process, you step up into a much greater level of service to your clients. While it may be unpleasant for the client right now, they will thank you for helping them make the breakthrough.

If you want to really learn how to master these conversations, check out my upcoming 2-day intensive on Mastering Client Enrollment. I’m only working with SIX people because the focus is really on learning how to create that tension within your client and how to master your own discomfort in the service of your clients.  Note, if you experience sticker shock at the investment, ask yourself this: How many more clients would I have to convert to recover this investment? And if I really master this skill, what is it worth to me over the rest of my life? And if I don’t, what is going to occur to change the trajectory of my coaching career? How’s that for a little unpleasant tension?

My practice is doing ok, but I don’t have enough ideal clients.  I have a few clients who are great, although they aren’t paying me what I’m worth.  I have several clients who are total energy drains and not worth it.   Obviously I’ve been successfully in signing up these clients, so [...]]]> A business coach asks:

My practice is doing ok, but I don’t have enough ideal clients.  I have a few clients who are great, although they aren’t paying me what I’m worth.  I have several clients who are total energy drains and not worth it.   Obviously I’ve been successfully in signing up these clients, so I don’t think I have a sales problem.   What should I do?

First, recognize that Yes, you do have a sales problem.  Want more clients?  You need sales.  Want different clients?  You need sales.  Want higher paying clients?  You need sales.    Want ideal clients consistently?  You need a good sales process.

When you are first starting out, you often don’t know exactly who your ideal client is.  As you work with various clients, you learn, you grow, and you figure out where to focus your best work.   So it is completely normal to find yourself in this position. In fact, as long as you continue to grow, you will continue to evolve your understanding of your ideal client.

What does a good sales process look like?  A good sales process is one that matches up your ideal client with your business.  A good process brings in the ideal prospective clients who really do want what you offer.  Also, if the prospect is not your ideal customer, you both want to figure it out quickly.  It is much better to disqualify a client early in the sales process than waste either of your time.

Coaches/consultants struggle with finding ideal clients because often the definition of ideal depends on how the client behaves during the engagement itself.  When I mentor coaches/consultants and ask them to describe the ideal client, they use words like “committed”, “inspiring”, “passionate”, “willing to grow.”  Yet often times these qualities are not revealed during a sales conversation.  We only find out after the fact once the work begins and we realized that they are not, in fact, a good match.

So to really create a practice with ideal clients, I need to design my sales process to attract the right clients AND filter out the wrong clients.

• If I want a client who is committed, then I can ask them to do some work during the sales process.  If they aren’t willing to do even a small amount of work, will they really be willing to do big work once they are a client?

• If you really want a client who is inspiring, then design a two-call process instead of a one-call process.  In a one-call process, you talk to the prospective client and then have to decide on the spot whether they are a good fit.  But if you have a two-call process by design, you not only can add more value to the client during the process, but you have time in between the two calls to consider if this client really is a good fit – and inspiring to you.  If not, you can graciously bow out on the second call.

• You may also design your actual work in stages.  Instead of long-term engagements, start small.  That way you can figure out in stages if the client really does fit the ideal profile.

There is no single formula – only thoughtfulness on your part to design the right process.  The right process serves your clients as well by ensuring the right fit and great outcomes.

The other part of the sales problem relates to raising your fees.  As soon as you have the desire to raise fees or the feeling that you are undercharging, you have a sales problem.  Most of the time it is an internal mindset problem, (see Pay to the Order of Fear), often accompanied by a sales skill problem.

The skill gap lies in your ability to diagnose the client’s needs such that they, not you, see the value.  If you want to double your fees, are you confident in your ability to conduct a conversation with a client so that they see the value at that level?  (Stay tuned for more teaching on how to conduct a good diagnosis.)

The key to overcoming this fear and/or skill gap is rehearsal.  You must operationalize exactly what you will say and become comfortable stating your new fee just like you are reciting your phone number.  If you are hesitant, clients will pick up on it.  I actually had a client even tell me once about noticing my hesitation.  He said “You are so confident when discussing my business, yet hesitant when discussing your fee.  Why is that?”  I thanked him for the feedback.  Very few people will actually tell you this – even though they definitely notice it, at least subconsciously.

Want more ideal clients?  Design a good process and practice it.

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What is your biggest sales challenge?  Leave your answer in the comments section below – or submit your question by clicking here: Ask Ron.

Over the past week, much attention in the political media has focused on Mitt Romney’s role at Bain Capital, a private equity firm. Opponents have characterized Bain and other private equity firms as “vultures.” Politics aside, why do vultures exist?  And what are the lessons for leaders?

Vultures, while perhaps grotesque, serve a [...]]]>

Over the past week, much attention in the political media has focused on Mitt Romney’s role at Bain Capital, a private equity firm. Opponents have characterized Bain and other private equity firms as “vultures.” Politics aside, why do vultures exist?  And what are the lessons for leaders?

Vultures, while perhaps grotesque, serve a vital purpose in the ecosystems of the world. Vital, as in, necessary for life. These birds do not kill. They simply eat the remains of an animal that is already deceased. Did they cause the animal to die? No. The animal is dead because of age, disease, starvation, or predators. Vultures evolved to occupy a particular niche which enables the dead to give life by returning their biomass to the ecosystem.

Much has been written in the past week to clarify what private equity firms actually do, so here’s a quick summary.

Private equity firms raise money from institutions like pension funds and invest this money in struggling companies. Then they institute changes in strategy to turn the company around. These changes in strategy generally involve exiting underperforming businesses and selling off non-core assets. By saying “no more” to these businesses, the private equity investors enable the company to focus on the core opportunities to grow profitably. Since the firm is already struggling, this is a high risk investment that is likely to fail and the company may still go under. Yet if it does succeed and the company is restored to health, the payoffs are substantial, as the company can be later sold or taken public at a much higher price. Further, the private equity firms are investing in equity, meaning they are last in line to get paid. High risk, high reward.

It is easy and politically convenient to demonize private equity firms as “vultures” for causing layoffs.  These decisions imposed by private equity investors to exit underperforming businesses inevitably impact workers who bear the brunt of these decisions through layoffs when plants or stores are closed or sold.

But we must ask what is causing the underperformance and impending death in the first place? Not the private equity firm.  VULTURES DO NOT CAUSE DEATH.  LACK OF LEADERSHIP CAUSES DEATH.

Specifically, a lack of leadership that must counteract elements of human nature. Here’s what I mean. Human beings start business enterprises with a positive intention to serve customers and create wealth. Yet humans, while possessing tremendous intellectual abilities, are not able to forecast the future with any kind of accuracy or precision. We cannot possibly know all of the changes among customers, competitors and technology occurring around us much less predict exactly how these changes will impact our business. We are also fallible. Even if we could forecast perfectly, we would still make mistakes in execution. We are frequently blind to changes around us through the powerful force of denial. And we are often driven based on a psychological need for the approval of others.  In organizations, just like families, we often do what is necessary to get along rather than speaking the truth and requiring change.

In businesses without strong leadership, these forces of human nature, combined with relentless competition and technological change, will accumulate until the organization is not sustainable – think Blockbuster, Borders, IBM before Lou Gerstner, or the Big Three US automakers. Organizations become more focused on sustaining their existing businesses and internal structures than on adapting to meet the needs of external customers. Competitors attack their good businesses. And the natural tendency of human beings in organizations is to go into denial and approval seeking such that important changes are avoided and resisted. So now the company is on a path towards death. Death is just a matter of time and the only question is who will bail out first. Customers are always the first to go, followed by key employees and then investors who pull the plug.

Enter the private equity firm to one of these failing business.   While often portrayed as cold-hearted and ruthless, the private equity firm actually brings two primary attributes that give them the possibility of turning this situation around:  they are not in denial and they are not seeking the approval of others.  So they can come in from the outside and impose necessary changes.    They are willing to say “NO.”  They are willing to stop funding underperforming businesses and marginal projects.  The point is that resulting layoffs are an effect, not a cause.  The cause is the existing weak leadership at the top that has been unable or unwilling to overcome denial and their own need for approval as the company is floundering.   This leadership has said “YES” to everything and “NO” to nothing.

I am currently coaching a client on preventing and overcoming exactly these types of issues in his company.  Just as an exercise, we’ve taken a private equity lens to look at the business.  We stand around a whiteboard and contemplate what would happen if a private equity firm came in from the outside with no attachment.  What would they do?  Not to say that it is what this company should do, but it does provide a helpful perspective.  This process has helped illuminate what really needs to happen to move the company forward.  The company must be willing to say no to certain projects that are not going to be successful and say yes to those that will.

A strong leader must understand that these forces are at work inside every organization and it is your job to overcome them.   The hard part of leadership is persevering to overcome the organizational culture that will resist these decisions.   To get right to the heart of it, you must be willing and able to look your colleagues, direct reports, and associates in the eye and tell them what must be done and why, even as they resist.  You must be willing to say NO and not care about their approval.

This reality means that the psychological health and capacity of the CEO is the ultimate determinant of long-term company performance and its ability to navigate changing conditions. The CEO must continually address the root causes of sustainable high performance.  Be the kind of leader that never needs to entertain the possibility of bringing in private equity investors. For more on specifically how to do that, check out Aligned Action: Key to CEO Effectiveness.

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Have you ever faced a leadership challenge where you had to overcome organizational denial or the risk the disapproval of others?  How did you handle it?

If a private equity firm were to examine your company, what adjective would they use to describe it?   Why?

Leave your comments below.

In my book, Aligned Action: The Key to CEO Effectiveness, I wrote about the importance of aligned action – of making sure that everyone in the company is working on the right things in the right way.

But I realize [...]]]>

In my book, Aligned Action: The Key to CEO Effectiveness, I wrote about the importance of aligned action – of making sure that everyone in the company is working on the right things in the right way.

But I realize now that I did not explicitly address the LEVEL of ACTION. How much action do you really need to take to achieve your goals? Probably a lot more than you think. Here’s an example.

Last summer I was leading a seminar on consultative sales when my voice gave out mid-way through the morning. I made it through, but for several months afterward I experienced pain and tiredness whenever I talked for any period of time. For someone who makes a living speaking, teaching, and coaching people, losing your voice is scary. It took me a while to get a good diagnosis, but I ultimately figured out that my voice problems were triggered by a combination of diet, allergies, incorrect speaking patterns, and a coincidental sports injury that caused tension in my neck.

My goal all along was clear – to restore the health of my voice. I tried a variety of treatment methods, therapy, and rest. Sometimes these methods would help – sometimes not. When I did start to improve, I would lighten up on my treatment and then backslide. My voice problems were getting worse.

I was still struggling into the fall when I discovered a book called The 10X Rule by Grant Cardone. Cardone defines four levels of action that we can take in pursuit of a goal:

1. Do nothing.
2. Retreat.
3. Take normal levels of action.
4. Take massive action.

He argues that most people never reach their true goals because they operate at level 1, 2, or 3. To really succeed, you need to act at a 10X level.  You must take massive action.

I realized that I had been taking normal levels of action, followed by periodic retreat. No wonder I was still having voice problems. I was doing the bare minimum.

So I made a decision to go ALL IN. I made immediate and radical changes to my diet and lifestyle. I eliminated wheat, alcohol, coffee, caffeine, carbonated beverages, and acidic foods. I started doing twice-daily voice exercises. I changed up my daily calendar to ensure rest periods for my voice.  After several months of this new approach, my voice has made a complete recovery. (Until I allowed the dietary restrictions to relax a bit during the holidays – and noticed minor irritation resuming. So now I’m back on the program.)

The point of this story is that if you really want to create a breakthrough in your life or business, then you need to take a LOT more action than you think. For me, it took a major shift in consciousness – my entire mind was focused on both the goal itself and the magnitude of action that is required.  Every choice and action was in this context.  Once I started acting at a 10X level, I got very good results.

As one of my mentors says, “If you want to change your life, then you have to change your life.”

I think the real problem for many of us goal-oriented people is that we’re taking normal levels of action – 1X levels – and expecting big results. We set a goal, plan what we think is required to achieve it, and then get to work. When we fall short, we wonder “what happened?”

Figuring maybe we just needed to do a better job at estimating 1X, we sharpen our pencils the next time, but may still fall short.

The problem with this 1X normal level approach is that we are aiming to do the bare minimum level of action necessary to achieve a result. What’s the minimum number of push-ups to do? What’s the minimum number of sales calls to make? Just figure out how little I can do and still get the job done.

But this approach is not going to work to create a major breakthrough. So many change efforts fail because they radically underestimate the level of action required. Why? We underestimate the power of inertia, of habit, of our subconscious mind trying to keep us in our existing paradigm, and of our existing relationships which may also try to keep us locked in the same patterns.

Therein lies the wisdom of the 10X Rule. We have to take massive action to create a breakthrough. If you are at one level in your life and business and want to get to the next level, normal levels of action simply don’t get us there.  We must go all in.

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How about you? Ever take 10X massive action? What kind of results did you get? On a scale from 1 to 10 – how were your results?  Let me know in the comment box below.

What goes through your mind when you hear that? Fear. Doubt. Worry. Anxiety.  Maybe they will think I’m not good if I have no clients. Maybe they will think that my [...]]]> One of the most dreaded questions that new coaches and consultants potentially face when just starting out is “How many clients do you have?”

What goes through your mind when you hear that? Fear. Doubt. Worry. Anxiety.  Maybe they will think I’m not good if I have no clients. Maybe they will think that my fee is too high if I’m just starting out. Maybe they will think I’m not experienced enough.

So maybe I’ll fudge the truth here. “I have a couple of clients.”

Bad idea. Perhaps the conversation moves on and you get the client. But what if they ask for references? Now you are in a deeper hole.

So how do you handle this question, when the true answer is zero?

You welcome it. Even better, you preempt it and turn the question to your advantage.

First of all, there is no shame in having zero customers when you are first starting out. Every new business starts out with zero customers. The focus is on getting the first customer. The first customer must come first – before the second or millionth customer. Somewhere out there is the first customer of the iPhone or the first person to place an order on Amazon. Pretty cool to be that person. So who will be your first client and how cool will that be for them?

In this post, I want to address several underlying MINDSET principles that you can use and then give an example of specific LANGUAGE that you could apply in this situation. (Please note: the timing of when to use this language depends on where you are in the process and needs to fit into the skeleton of the sales conversation.)

Here are the mindset principles at play here: flushing out objections early, turning perceived weaknesses into strengths, and the value of scarcity.

Let’s start with flushing out objections early. Most sales training teaches you to establish rapport, probe for problems and pain, demonstrate your solution, and then deal with objections during the close. The old-school approach is to avoid bringing up anything problematic and then hope that the customer doesn’t bring it up.  If they do, you use various techniques called “objection handling.” The major problem with this approach is that potential deal-killing objections surface very late in the sales process – and only after you’ve invested a lot of time and resources on both sides.

For example, let’s suppose that you’ve created a new software application but it only runs on the PC and not on the Mac. You wouldn’t want to spend a lot of time selling the application only to discover late in the game that the customer uses the Mac. Now you have an even bigger hurdle, which is getting them to switch platforms. So early on in the sales process, you’d want to ask a question to flush out this concern: “Just to save us both some time, I wanted to let you know that our offering currently only is available on the PC. Are you using a PC or a Mac?”  If they say PC, proceed. If they say Mac, then you can let them know when you’d expect the Mac version to be available and arrange to speak with them at that time. You could even ask them if they’d be interested in being a beta customer for the Mac version.  So even the seeming dead-end gets converted into an opportunity.

So as a new coach/consultant, how does this apply to you?

The deal-killing objection you fear is that they would absolutely not hire you if they knew that you do not have other clients – that they would not want to be your first customer.

Some clients may care. It is not your job to convince them otherwise. Just accept it and move on. But figure it out first.

Here’s what you could say: “I’m starting a new coaching/consulting practice and am working to find the ideal first client who I can really serve.  If we have a conversation and it turns out we are a great fit, would it concern you that you’d be my first client?” Listen to their concerns, if any. If they do have concerns, then ask “Would those concerns be a deal-killer or could we address them?” In other words, “Should we continue to talk?”

All you are trying to do is flush out the objection early.  Much better to find out now. You can use this principle to deal with any potential deal-killer that you are concerned about. For example, I once was coaching a consultant in the UK who was approaching large companies to help them with team-building and conflict resolution.  She was concerned that these large companies would not buy from an independent consultant – that they would have pre-established relationships with larger firms. When we explored the fear further, she was afraid that these clients might even have formal procurement policies that would prevent her from getting the business.

So I asked her “Suppose they do in fact have such a policy. Let’s take it even further to the absurd extreme. Let’s suppose they have a policy that specifically names your firm as an off-limits vendor, even though, as you say, they haven’t really ever heard of you.” She laughed. “When would you like to find out about such a policy if it existed?” Right away.

In my coaching session with her, we crafted a question that she could ask in her exploratory conversations with her prospective client. “Let’s suppose we get through our conversations and we are a good match. Is there any corporate policy that would prevent us from working together, since I’m a small firm?”

She asked this question on the next call. The answer? No. In fact, the client then said that he preferred small firms since he felt that he got better service and was dealing directly with the key people – not being sold a project that would then be staffed by newbies whom he never got to meet or approve.

Which leads to the next principle. Turn perceived weakness into strength. If you are just starting out and looking for your first client, make sure your new client knows that you are even more committed to their success because it will in fact be your first client. Your entire business depends on their success since you want a highly successful client who will be a great reference. You are going to do whatever it takes to make this client successful.  They won’t get lost or be just another account number on an invoice.

Which leads to the third principle: the value of scarcity. Focus on the value that they will create in their life and business by working with you – and that you only have one opening right now. This fact is especially true if you are working a full-time job and starting your practice on the side and you also have a family and outside interests. But it is also true if you are not working another job and are totally focused on getting your first client.  Your first client will have a very special place in your business, so choose wisely.  If you are making many invitations to have conversations, then you will not feel needy about any single one of them.

What about offering a lower fee for your first client?  You may fear that the client will think your fee is too high. They may ask for a discount or lower fee since you are just starting out.  Do not succumb to this pressure.  I advocate setting a fee that will secure the client’s commitment and will be profitable for you from day one. If you really get that the fee is only based on the value of the results to the client, then there is no reason to start out at the very bottom of the ladder and climb your way up. Pick a good strong fee and start from there.

Here’s an example of what you could say: “I’ve been doing this type of work for several years in my professional career and have completed extensive training as a coach. Now I am committed to building a full-time professional business to help people achieve these outcomes in their lives and businesses. (Make sure to insert the outcomes that you help clients achieve).  My first client is going to get a huge level of commitment from me, so I need to make sure that my first client is hugely committed to getting results.  Let’s talk about the results you’d like to create and how committed you are to getting these results. I know what I’m committed to. And if you are not, that’s ok, since I am really searching to find the right match for this one opening I have.“

Imagine if Steve Jobs had these fears when selling the first iPod. But he wouldn’t. He’d say – “If you don’t want to be the first one to get it, that’s fine. I’ll sell it to someone else. You can come back later.”  To your potential client, if they don’t want to be the first one to get something very exciting but not officially proven, fine. Go right on to your next conversation.