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  • Grow your business by hiring Alpha-style superstars

    How can you make your staff an Alpha “superstar” staff?  The answer is not to put the right people in the right seats.  It’s putting only superstars in those seats.  Here’s how you can make that happen…

    Your staff is second only to what you sell in defining how successful you will be at growing your business.  As an employer, I have had great teams; I have had almost great teams; and I have had mediocre teams (thankfully, only in my early days as a business owner).  The difference in results was dramatic, as a focus upon hiring excellence increased. 

    Employee teams who are committed, talented, persistent, and ready to do whatever is needed can accomplish almost anything.  Employee teams that have to make up for even a few weak members have a much harder time even accomplishing the minimum.  Any company aspiring to become an Alpha has to address this issue early and with a commitment to not give up even after your entire team is superstars.

    I was at a conference a week ago, and I heard John Bisnar, a very successful “Alpha” attorney in California, describe how he gets and keeps the best employees.  His process for getting and keeping “superstar” employees is a worthwhile model for any aspiring Alpha to look at.  It’s certainly a strategy that has merit for any business of any size.  In fact, a version of this is used by Andy Grove at Intel, one of the few long-term Alpha’s still maintaining its Alpha position today.

    The strategy is pretty simple in concept, but, like most things that really work, it is hard to stick to and implement consistently.  Here’s how John’s version could be applied to your company:

    Start with a clear definition of what a “superstar” employee would look like in your company.  Write a list of the specific attributes and behaviors you would expect from someone you would consider an “outstanding” performer you would not want to lose to someone else.  This is not a job description.  This is a description of how a superstar employee works and acts.

    For instance, your list might include things like…

    • extraordinarily skilled
    • anticipates needs
    • arrives early and is already working at “start” time
    • works well as a team participant
    • never says, “That’s not my job”
    • thinks creatively “outside the box”
    • models how all employees should behave
    • extremely productive
    • understands and is committed to the company’s mission

    John Bisnar’s team came up with 25 attributes that they believed describe a “superstar” employee in their company, no matter what specific job title they hold.  When they hire, they only hire someone they believe will become a superstar, as defined in that list.  They look beyond just how much experience the person has or what success they have created in the past.  They look for signs that this person has what it takes to become a superstar.  

    That means that they look at how the person is motivated, and how that matches with the company’s environment and motivational system.  It means they look at potential as much as past experience, as long as the skill sets are already in place for the job being filled.  It also means that they are weighing how a person likes to please others and how well that fits within the model the company follows with its customers and other employees. 

    If they don’t see a clear indication of a superstar, the person doesn’t get hired.  There is no hiring for a “B” team.  

    Everyone is held to the same standard of excellence.  When a person proves that he is not going to become a superstar, he is gone as quickly as is practical.

    Why this obsession with excellence?  Because in order to become and stay an Alpha, you have to be absolutely committed to having the right team driving your company.  The difference is not just how much people enjoy coming to work and working with each other.  It is also a matter of how much horsepower you are efficiently putting to the wheels of your daily efforts.

    More gets done with more effectiveness and greater return on investment, because every great employee spurs on every other great employee.

    How many times do you hear employees complain about how another employee is not contributing as much to the team as should be expected.  Certainly, as the employer or manager, you don’t hear it as often as they are telling it to others.  Mediocre or lazy employees are a drag on the entire organization, both in direct efficiency an in poor morale created.

    So how do you implement such a process, when you already have “B” or “C” team employees on staff?  John Bisnar’s plan is a good one.  When he instituted this, he divided all employees into three groups:  

    • those who were already superstars
    • those who might become superstars
    • those who would obviously never become superstars

    The last group was replaced as quickly as possible.  The second group was challenged to become superstars and given a clear definition of what that looks like (that’s where the list of superstar attributes really comes in handy).  If they didn’t make it in a short period of time, they too were replaced.

    Then, here is the most important part:  How do you keep your superstars?  Certainly, every other employer out there would love to have more superstars.  So, the superstars you have need to be continually “loved.”  That simply means that they want to recognize that the company (and especially top management) sincerely appreciates what they are doing and the effort they are making to help the company reach its goals.  You want them to not even consider an offer from a competitor.

    That doesn’t have to mean money, although that might be the motivation for some.  Actually, many research studies over the years have shown that being valued as an employee is demonstrated by being clearly noticed by top management and by being included in hearing what is going on, what the company is planning to do, and being invited to participate in that process.  

    As the Alpha model has proven over and over again, money is never as big an incentive as is feeling “successful” in what you are doing and knowing that others notice and care about you.  Those are the employee versions of the “self-satisfaction” and “personal significance” factors of the model.

    Can you succeed without following a superstar-only model?  Certainly.  It just takes longer and costs more.  

    There are Alpha companies now and in the past who did not have superstar teams.  But that typically became more of a problem after they became Alpha’s, because once a company gets comfortable, it often loses sight of what got it there.  

    What I have seen is that having a “B” team staff makes it a longer and more expensive process than having an “A” team.  There are just too many stumbles and too much pressure on the superstars that are on staff to enable the kind of sustainable success that should be anticipated as you move toward Alpha status.

    You can become an Alpha.  If you are an aspiring Alpha and don’t already have a copy of The Alpha Factor – a revolutionary new look at how to really create market dominance and self-sustaining success, you can get a copy at www.thealphafactor.com or at almost any online bookstore.

    If you would like to know more about John Bisnar, visit his website at www.bestattorney.com.

     

  • Dominate Your World

    I just started a new blog this week, called “Dominate Your World.” (http://alphadomination.blogspot.com/)  

    Unlike the longer articles I publish here on The Alpha Factor and The Ball Group websites, the new blog will be shorter posts that focus upon the process of becoming an Alpha in your category. 

    Why would you want to subscribe to “Dominate Your World?”  This gets beyond the theory.  It will be providing far more of the nitty-gritty that so many of my Alpha Factor subscribers regularly request.

    If you are serious about learning how to become an Alpha, this is the place to be.  And I will be answering questions in far more detail than I do on the the regular website.

    Come join me for some interesting discussion, and you will be on your way to Dominating Your World.

    If you still don’t have a copy of The Alpha Factor, you really need one.  Without understanding the science and psychology behind customer decision processes, you really don’t have much hope of becoming an Alpha.  You can get your copy either at www.ballgroup.com or through any of the online bookstores.

    Best wishes for even greater profit in 2009,

    Wes Ball

  • Discounting Kills… especially in a recession

    This is the best opportunity most of us will ever see to leap-frog past stronger competitors.  But it is being squandered on discounting.

    How much benefit has discounting had for all the marketers using it to save themselves from the current slow economy?  Not much.  Sales are down, profits are REALLY down, and the future of those who discounted has been significantly harmed 

    Retail sales are down 2.7% according to a recent Wall Street Journal article.  That’s not really all that bad in the bigger scheme of things.  But net profits are down over 20% in many cases.  Discounting may have slowed the total dollar volume decline, but at a terrible cost.  And not just short-term, but also long-term, as well.

    But this is no big surprise.  It’s what happens whenever discounting is the strategy over value-based demand creation.

    The problem

    Our long-term research into the use of discounting and coupons repeatedly showed that neither has any positive net effect (even in good times), except as a tie-breaker between two or more products that end-users cannot clearly differentiate.  It never seems to lead to long-term loyalty growth, even among the most price-conscious end-users.  It never seems to lead to an increase in profitability. In fact, it only increases totalprofit, if sales geometrically increase to make up for the lower margins.  

    What discounting always does, however, is undermine the value end-users put on your product or service.  The long-term result of the almost hysterical discounting we are seeing right now will be to undermine the ability of most marketers to get a fair price for their products in the near future.  This is already starting to happen. 

    Auto dealers are finding customers expecting 20%-25% discounts off of sticker prices.  The heavy discounting being offered by a few manufacturers and dealers has many people believing that they have been cheated by all car dealers for years, and they won’t accept anything but a “steal” right now.  Grocery consumers are doing similar things.  They are allowing their pantries to be depleted as they wait for prices to go even lower. Corporate buyers are feeling the same kind of price empowerment.  They are expecting their suppliers to provide them with products and services at no profitability, simply because someone might actually do that.

    And the problem is not that customers don’t have money to spend.  After all 93% of employable Americans are still employed.  (And that’s not that much different from the normal 96% employment rate we have experienced for the past two decades.) Most employees also have not even experienced a reduction in income.  The problem is that marketers have grown to believe that they have to maintain total dollar volume without regard to either short-term profitability or long-term ramifications.  So, instead of recognizing that periodic slowdowns happen and the real trick is to not harm yourself during them, they use discounting to artificially maintain gross dollar volume.  The result is that they harm their current and future price leverage.

    Just how easy will it be to raise prices again back to “normal” profitability when things get better?  It will really depend upon how you respond right now.

    The answer

    So, what’s the answer to survive the downturn and not harm yourself long-term? The Alpha model points the way.  The answer is not in reducing price to match a lower perceived value.  Rather it is in increasing perceived value to the price point you wish to achieve.  Increasing perceived value is most easily achieved through fulfilling ego-satisfaction needs.

    My wife just ran into this a few days ago.  It is a simple example, but it shows how easily Alpha thinking works even in tough economic times.

    My wife hates to spend more than necessary for anything.  She is the person most marketers fear, because she says she wants to lowest price on everything.  In this case, she needed some paint for a remodeling project. She planned to just run over to the large local warehouse home improvement center to get what she thought would be the lowest price, even though she really hates going there.  She would rather have gone to a specialty paint store she used once before, but she feared that she would pay more for essentially the same thing.

    At the last minute she decided to pull into the specialty paint store.  The person there helped her so thoroughly, even to the point of offering to carry the paint out to her car for her, that she didn’t stop talking about it for 20 minutes after arriving back home.  Then she called a friend to tell her.

    This was much more than good “customer service.”  Tis retailer helped her feel smart, knowledgeable, appreciated, empowered, in control, more capable of doing the job, and thoroughly cared for.  The large home center would have made her only feel “smart” for buying what she believed would have been the lowest priced product.  

    The only problem for this retailer is that he is not letting more people know about the great experience customers will have when they shop there.  Word of mouth is a slow marketing mechanism, especially when times are already tough.  The best part is that he now has a much more loyal customer, simply because he did not lower prices.  If he does this with every customer, he will not have to work nearly as hard coming out of this recession to raise prices, as the home center will.

    This specialty retailer did not lower its price to what it feared might be the lower expectations of a customer in tough economic times.  Rather, it helped raise expectations so high that the home center will have to lower its prices even more in order to attract my wife. 

    The rule of thumb has always been that every dollar discounted requires at least three additional dollars in sales to just break even short-term.  Long-term, the loss is closer to hundreds or thousands of dollars for every dollar discounted. 

    The vision

    This economic downturn is a unique opportunity that most of us will never experience again to leap-frog past much stronger competitors.  The largest and most fearsome competitors in almost every category are pulling back, pulling in, and hiding out until things get better.  That leaves lots of room for smart Alpha thinkers to make significant gains.

    The secret is in understanding the basics of the Alpha model:  Satisfy ego-satisfaction over function (or price). Ego-satisfaction will overcome inferior product performance (as long as it still meets the minimum expectations of performance), higher price, lack of availability, or just about any other factor you have learned is critical to marketing success.

    People will pay almost anything to fulfill their ego-satisfaction needs.   You just need to be the one discovering what those needs are, and how customers want you to fulfill them.  Once you have that, you have the key to owning your category and becoming the sustainable Alpha that everyone else follows.

    Stop assuming that people only want the lowest price.  Start assuming that they want to feel appreciated, cared for, smart, knowledgeable, empowered, in control, more capable, and generally ego-satisfied and that they will pay more to get that.  Also assume that they will remain more loyal through good times and bad times, because that is almost always the case.  Customers really want to be loyal.  Most marketers just don’t make it easy for them to do so.  

    Also assume that you need to let potential customers know what you are doing to satisfy their ego needs. Assuming that others will do the sales job for you is always a mistake.  Word of mouth is grossly over-rated, because it almost always under-delivers.

    The result of following the Alpha model will be that you will come out of this downturn more appreciated, more cared for, appearing more knowledgeable, more powerful, more dominant, and a whole lot happier than your competitors who believed discounting would save them.

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Wes Ball, President & Founder of The Ball Group.

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Learn what we discovered through a 15-year research project into what realy creates sustainable market dominance. What we discovered was the basis for creating billions of dollars in new growth for companies ranging in size from the Fortune 100 to mid-sized marketers.

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Since 1982, the Ball Group has been focused on forward-looking research and strategic innovation. We have helped organizations ranging in size from the Fortune 100 to medium-sized regional companies create dramatic new growth, even when no growth had been experienced in more than a decade.

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