Sales in an Age of Falling Multipliers: Training Scientists and Engineers to Develop New Business Posted by nick_niesen on October 28th Cheap Julién Davenport Jersey , 2010
Over the past 30 years, the consulting engineering business has become increasingly competitive. Advances in technology from Fed Ex to Fax and, of course, in all aspects of computerization have allowed almost unimaginable increases in efficiency and the speed with which information can be analyzed and delivered to clients.
The 聭hazardous waste boom聮 in the 80聮s and the increasing need for infrastructure in growing economies led to more entrants to the market and increasing, more efficient competition in consulting engineering.
As competitive pressures increased Cheap Zach Cunningham Jersey , hourly rates for services were forced downward. The multiplier of raw salary to billing rates continued to free fall from numbers on the order of 3.5 in the late 70聮s, to the high two聮s in the 80聮s, to the present range which is on the order of 2.5 or less. The net result of falling rates has been increasing pressure to keep billability high and overhead low.
The largest firms (those with over 1,000 employees) can do more with lower overhead because of efficiencies gained from having the same internal services distributed over larger numbers of employees and gross revenue. Mid-sized firms (those with 500 employees or so) still need internal services such as dedicated senior management, human resources Cheap Deshaun Watson Jersey , marketing, accounting, etc. but must distribute these costs over lower revenue. Very little overhead money is left for people dedicated full time to developing new business. To control overhead, almost everyone has to be billable.
Given this situation, it聮s become increasingly necessary for technical staff 聳 otherwise billable scientists and engineers 聳 to develop new business. Unfortunately Cheap Whitney Mercilus Jersey , scientists and engineers seldom see themselves as 聭salespeople聮 and are seldom trained and coached in business development skills. Their daily routine is not geared to visiting potential clients they聮ve never met 聳 and they are usually very uncomfortable doing this. So, it doesn聮t happen.
What can be done? How can mid-sized consulting engineering firms give their technical staff the skills necessary to become effective 聭seller doers聮? Even more important, how can scientists and engineers be motivated to make business development a key part of their professional life?
Our work at MBDi, where we specialize in teaching scientists and engineers to sell technical services, has shown that several factors are critical. Most of the problems that people have in business development can be characterized as either 聭mechanical聮 (they don聮t know what to do) or 聭conceptual聮 (they know what to do Cheap Johnathan Joseph Jersey , but they won聮t do it). In our experience, the vast majority of people (60%) that fail in the role of business development fail because they cannot overcome conceptual problems. Because of this, we find that it聮s important to work on these 聭conceptual聮 problems first.
The first task is enabling technical people to understand that building a professional practice is the key to their success in consulting. We can give them all the business development skills they聮ll need, but if they don聮t believe in it, they won聮t do it.
The first thing that scientists and engineers must understand is that as 聭professionals聮 it聮s necessary for them to develop a 聭professional practice聮 like the other professions 聳 attorneys and physicians Cheap Jadeveon Clowney Jersey , for example.
Second, developing a professional practice gives them the ability to manage their own destiny. They will be able to 聭take care of themselves聮 rather than putting their future in someone else聮s hands.
Third, the key to security in a mid-sized consulting business is the ability to bring in new business. Unpaid work that may be required is an investment in one聮s self and in one聮s security.
Finally, and probably most important, is that business development is ethical. Their purpose in business development is to help their clients get the services they need 聳 they should never have to 聭push聮 anything that won聮t help their clients.
Engineers and scientists must truly believe in these principles or they won聮t choose to take on the role of business development. If they accept this Cheap Lamar Miller Jersey , training can begin.
Once past the 聭Conceptual Problems聮 we can start working on the four 聭cornerstone聮 competencies that are essential for success in business development: Technical Knowledge, Money Knowledge, Business Knowledge and People Knowledge.
聲Technical Knowledge is understanding the problems that the services we offer can solve for our clients. It is the ability to translate what we provide into the specific issues and concerns that the client has.
聲Money Knowledge is understanding how your client makes money, how their business develops a profit, and the issues that affect that profitability.
聲Business Knowledge is understanding your client聮s business as well as understanding your client聮s customers聮 business. It is knowing their business strategically and tactically from their perspective.
聲People Knowledge Cheap DeAndre Hopkins Jersey , in addition to understanding ourselves, is organizational and client knowledge, understanding why the organization is structured the way it, assessing the leadership capability of the individuals and understanding the issues that drive the behavior of those in a leadership position.
In our experience, the least understood of these cornerstone competencies is 聭People Knowledge聮 Cheap J.J. Watt Jersey , but it聮s essential for success. It聮s much more important to know how and why clients buy services than to learn how to sell services. So, it聮s important to train people in the 聭psychology of the sale聮.
We believe that it聮s the one who best understands a client聮s problems from the client聮s perspective who will win the business. Therefore we also concentrate our training efforts in the skills necessary to elicit
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