business – Page 5 – understand-culture

Business leader cults

The concept of cult is common in American society. A cult figure is a popular individual who has strong appeal, someone whose reputation is inflated in contrast to their success. The cult of personality or charismatic authority arises when an individual employs mass media in order to establish an idealized image of oneself to the public.

Many American companies – especially those operating globally – link their CEO personally with their products and services. These CEOs are the first and most important salesperson of the company. They maintain a personal dialogue with investors, customers, and key suppliers. They are a constant presence in the media. CEO as CMO – Chief Message Officer.

Some strive for and achieve a kind of cult status. See the late Steve Jobs – Apple, Bill Gates – Microsoft, Jeff Bezos – Amazon, Sergey Brin and Larry Page – Google, a few years back Jack Welch – General Electric, Lou Gerstner – IBM, further back Lee Iacocca – Ford.

The American comedian Bill Burr challenges this in a humorous and entertaining way:

Still a Priority

An additional purpose of follow up in the American context is to signal to the other parties that the agreement is still of high priority. No or late follow up can be interpreted as a signal that the agreement is no longer important to the other party.

Americans place a very high value on flexibility, on the ability to respond to the needs of the market, of customers, of changing situations. Big decisions are broken down into smaller ones. Isolating individual decisions allows for rapid reaction as well as rapid revision. Up to the minute overview of agreements is essential.

Follow-up is omnipresent in American life. The preference setting of email programs, social network accounts, as well as information sources can be set so that information is pushed immediately to the user.

Most doctors offices send out reminders to patients of their upcoming appointments via traditional mail, email and even voicemail. When one turns on the television five minutes prior to the show they want to watch, one sees a reminder indicating that the program they are want to watch is about to be shown. Banks offer depositors the option of immediate notification via email or text message of any changes to their balance.

Follow-up is in many cases simply a reminder.

Optimal e-mail frequency

Under the title Optimum Follow-up Frequency for New Leads Samuel Smith, a consultant and blogger on business and online marketing, posted the following advice:

„A good e-mail marketing effort doesn’t inundate your customers with hard sales pitches. Following up quickly is the first step. Schedule your first follow-up email to go out two hours after your customer submits his or her information.

From here, you may want to gradually slow your e-mail frequency and aim for about three content emails for one purely promotional email. Depending on your budget, you could aim, at the high end, for sending four emails a week, but with a smaller budget, you can send an email every two or three days and have similar success.

Once a potential customer has been receiving email from you for a couple of months, it’s okay to drop off the number of emails to once a week. The optimum e-mail frequency reminds customers several times over that your product has value to them.“

They’ll remember your product.

frequent follow-up

Interestingly, typing „frequent follow-up“ into Google leads to 179 million results. The first ten pages with ten results each all refer to healthcare:

Long-Term Follow-up of Asymptomatic Healthy Subjects. Frequent follow-up as data gathering and continued care. Colonoscopy Overuse A Result Of Frequent Follow-Up. Follow-up see eMedicineHealth. Is There a Benefit of Frequent CT Follow-up After EVAR?

The term follow-up in the medical space is about: care; staying on top of a problem; remaining proactive; constant monitoring; reacting to a changing situation.

Ten Slides

Imagine the same task given to ten different Americans, in ten different companies, in ten different business sectors. A thousand people. They’re asked to use a maximum of ten slides in a presentation in order to persuade an audience of fellow Americans about the virtues and value of their product, service, idea, concept, recommendation.

On average, how many slides would the Americans use to explain the present (current situation), the past (how the present was arrived at), and the future (the desired situation)?

Closing Techniques

Wikipedia lists the following kinds of closes (asking for and making the sale, getting the order):

Alternative Choice

Alternative Choice close, also called the positive choice close, in which the salesperson presents the prospect with two choices, both of which end in a sale. “Would you prefer that in red or blue?”

Apology

The Apology close, in which the salesperson apologizes for not yet closing the sale. “I owe you an apology. Somewhere along the line, I must have left out important information, or in some way left you room for doubt. We both know this product suits your needs perfectly, and so the fault here must be with me.”

Assumptive

The Assumptive close, also known as the presumptive close: in which the salesperson intentionally assumes that the prospect has already agreed to buy, and wraps up the sale. “Just pass me your credit card and I’ll get the paperwork ready.”

Balance Sheet

The Balance Sheet close, also called the Ben Franklin close, in which the salesperson and the prospect build together a pros-and-cons list of whether to buy the product, with the salesperson trying to ensure the pros list is longer than the cons.

Cradle to Grave

The Cradle to Grave close, in which the salesperson undercuts prospect objections that it is too soon to buy by telling them there is never a convenient time in life to make a major purchase, and they must therefore do it anyway.”

Direct

The Direct close, in which the salesperson simply directly asks the prospect to buy. Salespeople are discouraged from using this technique unless they are very sure the prospect is ready to commit.

Indirect

The Indirect close, also known as the question close, in which the salesperson moves to the close with an indirect or soft question. “How do you feel about these terms” or “how does this agreement look to you?”

Minor Point

The Minor Point close, in which the salesperson deliberately gains agreement with the prospect on a minor point, and uses it to assume that the sale is closed. “Would the front door look better painted red? No? Okay, then we’ll leave it the colour it is.”

Negative Assumption

The Negative Assumption close, in which the salesperson asks two final questions, repeating them until he or she achieves the sale. “Do you have any more questions for me?” and “do you see any reason why you wouldn’t buy this product?” This tactic is often used in job interviews.

Possibility of Loss

The Possibility of Loss close, also known as the pressure close, in which the salesperson points out that failing to close could result in missed opportunity, for example because a product may sell out, or its price rise.

Puppy Dog

The Puppy Dog close, in which the salesperson gives the product to the prospect on a trial basis, to test before a sale is agreed upon.

Sales Contest

The Sales Contest close, in which the salesperson offers the prospect a special incentive to close, disarming suspicion with a credible “selfish” justification. “How about if I throw in free shipping? If I make this sale, I’ll win a trip to Spain.”

Sharp Angle

The Sharp Angle close, in which the salesperson responds to a prospect question with a request to close. “Can you get the system up and running within two weeks?” “If I guarantee it, do we have a deal?“

Pharma Sales Reps

According to a recent estimate, American drug companies spend $4 billion a year marketing directly to the American public, and an additional $24 billion marketing to health care providers. In 2014, a poll showed that 9 out of 10 big pharmaceutical companies spend more money on marketing than on research and development.

The median annual pay for pharmaceutical sales representatives in the U.S. is $66,814, compared to $37,316 for research technicians, $47,279 for research associates, $60,951 for civil engineers, $64,853 for mechanical engineers, $65,388 for physical therapists, and $66,823 for product development scientists.

How fast?

The American tendency to work at a fast pace and aim for rapid results continues to confound Germans. They have difficulty identifying a logical and structured plan for action amongst their business dealings, and where Americans see hard work and flexibility in action, they suspect only chaos. When Germans feel overrun by American ‘decisionism’ and see their standards of quality and the rhythm of their own style of working as becoming endangered, this confusion can quickly transform into irritation.

“A bad decision is better than no decision.” There are few Americans likely to disagree with this popular saying. Germans, however, would tend towards saying the exact opposite. Sometimes even a good decision will find no supporters.

From the American perspective, it is the client who is the most significant factor in determining the deadline for a given decision. Americans value a client-oriented business model. Because Americans tend to operate under the assumption that this same dynamic exists in in Germany as well, they find it difficult to understand why their German colleagues would risk upsetting a customer over time wasted during the decision-making process.

Priorities and time factors can change during the process of making any decision. Americans prefer to divide this process up into multiple sub-processes or steps. The sequence of these steps must remain flexible – meaning that it should be possible to change their order, or even skip a step or two in between if necessary. From this point of view, the structured discipline of the German decision-making process can appear exceedingly rigid and in-flexible – occasionally appearing as though it would directly conflict with the purpose of the decision itself.

It is almost as though the decision-making process would be more important than the final decision. To Americans, the German approach of assigning so much importance to the process of making a decision as to possibly loose perspective of the final decision itself can seem rather paradoxical. For this reason, one might suspect that simple indecision is being masked by a seeming concern for ‘attention to detail’.

Of course the German understandings of process and customer relations play a role here (according to the motto: ‘The client wants a solution from us. Our processes guarantee a solution, so the client knows that he can wait.’) But surely there must be something more involved; Germans can see that during the process of making an important decision one must also make a series of decisions which are smaller, but not insignificant to the bigger picture. These decisions are key elements of a systematic (or self-perpetuating) approach, each de facto requiring more time for consideration.

Ultimately, whether or not the rebounding American approach – making quick decisions, then revising them just as quickly – is actually faster typically depends on the related events. ‘Wir haben mit Äpfeln und Birnen zu tun’ – you can’t compare apples and oranges (or pears). Nevertheless, there will always be those colleagues who will continue do do so, and continue to bicker.

All the way or not at all

The appreciation that Germans have for individual competence and their aversion towards incalculable risks sometimes set the condition of a certain degree of caution used when working with innovations.

Therefore, it fits the bill that German companies always approach the execution of updates and improvements in a cautious and well thought-out manner. All of the pros and cons must be carefully weighed, and all influential factors taken into consideration before a critical decision is made.

In this case, a qualified expert will often be called in to assist. “Professional quality management is often the condition for the commissioning of tasks. This is often bound together with unnecessary effort, especially in the case of small businesses; often the incorporation of external consultants is better”, explained an expert from the Chamber of Crafts in an article.

And so there exist a plethora of external experts, consultants, institutions, and established norms for German business owners to turn to in case they should lose perspective in the tangle of modern innovation.

These exist to help to make well-founded and analytically grounded decisions. It has even developed into its own field of study at many technical and business colleges: studies to the systematic approach of solving problems and to the development of complete solutions have begun to fill textbooks and lesson plans.

These approaches help to calculate multiple types of risk in advance, thereby countering the deeply rooted nervousness that comes together with risks and unforeseen situations.

Limited, but Relevant

Americans prefer gathering limited, but highly relevant, information, and fast. Comprehensiveness costs time, and must be justified by its value. All information sources should be considered, provided that there is sufficient time. Americans also accept subjective (non-quantifiable) information sources, such as personal references. Their credibility, though, is judged based on experience (track record) and reputation.

For Americans, however, information gathering serves the pragmatic purpose of information analysis, which in turns serves decision making. Information gathering, thus, is seen early in direct connection with the end goal. If enough information has been collected in order to perform good analysis, there is no reason not to move on to the information analysis step in the decision-making process. Information gathering is not an academic exercise.

Because Americans also see the complexity inherent in many decisions, they prefer to break down decisions into sub-decisions, into particulars. This allows for more focus on key elements of the broader decision. The analysis of the information should then be quick and pragmatic. Objective tools are helpful and should be used, but also combined with experience and common sense. Americans are willing to trust their intuition.