Inspiring story about my friend Jothy Rosenberg

http://www.myfoxboston.com/dpp/morning/staying-focused-on-your-goals

2010 Sales & PS planning for small Tech. Co.s

Would your planning be more productive if you had access to several other small technology centric companies's 2010 expectations?

Specifically, how SaaS, Cloud Computing, Web 2.0, outsourcing, and other new factors influence:

1) Required Sales to Sales Engineering ratios?

2) Inside sales to field sales?

3) The necessity of Proof-of-Concepts? Are they paid or not paid?

4) How much face to face communication will be required during the implementation process?

5) What role will channel partners play in sourcing and delivering new clients?

6) Will third party demand generation/appointment services be engaged?

7) What % of your hiring will be expansion versus topgrading?

8) What % of your sales and marketing budget will be dedicated to Social Networking marketing activities?

9) Will you be dedicating a whole, half, or quarter of an FTE to support Social networking marketing technologies?

If you could have the answers to these nine questions, would it be helpful in creating or rationalizing your 2010 plans?

If "Yes" please reply with your own answers to markrodman@xtraeffort.com . When sufficient feedback (ideally 50+ responses) is gathered, we will collect the data and send you meaningful information for improved 2010 planning.

All data will remain confidential and will only be shared in a summary fashion.

Your collective (as a group of 1400 CEO's and VP's) speed in answering the above questions will impact how fast you receive the results.

Thank you.

Mark
978-589-9700

Xtra Effort client hiring activity; Barometer?

If Xtra Effort's world of helping small technology centric companies hire Sales, Sales Engineers, and Professional Service people (nationally) is a barometer to economic health - things are improving.

We have seen a considerable uptick in hiring demand, including expansion slots.

Recent hires and new job requirements have included:

Companies that provide software or Software-as-a-Service solutions related to fraud prevention (insurance and elsewhere), risk management-compliance, data integration, data storage, marketing campaign management, web analytics, research, and GIS.

Locations have been the Northeast, Dallas, Upper Midwest, and West Coast (75% of recent hires have been West Coast; not as present in current hiring requirements).

Clients are still insisting on candidates meeting the majority of their exact criteria, including tenure, markets, technologies, and location. There remains intolerance to considerable job change or lack of a track record of sustained performance (quota, income, implementations, POC's) success for the majority of the last four years, with the exception of forgiveness for a recent "mulligan" during the recession. A candidate's core skills, experiences, and aptitude receive marginal consideration, but are often simply the ante into the game.

The trend is exciting, lets hope it continues! {Click here for viewing of actual job openings}

Xtra Effort's challenge is to inform as many suitable candidates as possible, while politely suggesting to those not suitable to trust our knowledge of client priorities.

Mark

Changes in Enterprise Sales: Interpretation, Ideas and Actions

Have you noticed the recent impact of the internet and market consolidation on Enterprise Sales -particularly on small technology centric companies?

We have, and wanted to summarize and interpret the impact with simple observations and examples.

Brian Geery, EVP of Quota Inc., a sales consulting firm, and I collaborated to produce an 11 minute, 10 second presentation.

How you may react:

"I know 90% of the content, but it stimulated worthwhile dialog with my team"

"I know 90% of the content, but it provides excellent context for team members who directly or indirectly support sales"
The result: you and your team give more attention to actions and ideas that you may consider to be critical.

Please click: http://www.brainshark.com/brainshark/vu/view.asp?pi=800696627

{do you need to "temporarily enable pop-ups" to see it?}

Thank you.

Mark

Hunters versus Farmers

Hunters need the stimulation of a transaction, and appreciate the associated visibility and recognition.
Farmers/account managers find prospecting to be laborious or are unfulfilled with a transaction unto itself. They prefer the potential of a quality longer term relationship (including a series of transactions, fulfillment of business needs, etc.)

Both profiles are motivated by compensation. In fact, some hunters can also farm, given the appropriate compensation structure. However, a strong hunter profile cannot tolerate the lack of peaks and valleys, and visibility.

Hunting has two components: 1) Prospecting 2) Qualifying/Closing. Many farmers could be good hunters if prospecting is not required (because of strong marketing or telesales support to create “leads”).

In summary, farmers are invaluable if your client base and solution portfolio are big enough to justify the role. Do the math, if you generate X% more business from our existing clients, does it justify the dedicated role? If not, tweak your compensation structure (and training) to motivate the hunters to “see the light” and give existing clients a little lov’n in return for a recognition and $.

Summer 2009 Client Hiring data

Many clients and candidates continue to frequently ask, "what are you seeing out there?" Xtra Effort client hiring demand was better than expected, particularly for the Summer season.

Data center, database, and application infrastructure companies seem to request the most hiring assistance, followed by niche SAAS companies.

Traditional client site installed business application software has generated less demand - no surprise. Solutions related to fraud prevention seem to capture candidates' attention.

What is a surprise is candidate resistance to change employers, despite being presented with more compelling companies, compensation, and solutions.

Hiring managers are just starting to more seriously consider portions of the unemployed population to be desirable. It's probably attributable to seeing high quality coworkers and neighbors be impacted by reduction-in-forces.

At least those currently not working don't represent the risk of delayed start times and counter offers, etc. :) Hiring demand for West Coast candidates has increased.

Compensation has not lessened, nor has it increased. It is flat. Equity is - once again (think 2002) - is considered gravy only, and not a reason to change employers.

We hope the data is a useful reference for you when reviewing your Sales, PreSales, and Professional Service hiring activity.

STATE: MA Web 2.0 for elearning and CRM Sr. Sales, Inside Sales $75k base; $130 OTE

STATE: CA Fraud Prevention Software Account Executive, Northeast; Fraud Preven. SW $125k base; $250k OTE

STATE: MA Open Source software Inside Sales Rep $60k base; $120k OTE

STATE: Major Hub Risk Mgt. Analytic Services for Ins. Industry Account Manager $80k base; $150k OTE

STATE: TX ETL Software Account Executive, Texas $100k base; $250k OTE

STATE: CA Data Storage Cloud Services Sales Engineer, $135k base; $165k OTE

STATE: CA Appliance for middle market Systems mgt. Sales Engineer $95k base; $135k OTE

STATE: Any Major Hub SW as a Service for Transportation Operations & CRM Systems Engineer $80k base; $115k OTE

STATE: MA Data DeDuplication Appliances Account Executive, Boston $100k base; $250k OTE

STATE: MA SW as a Service for secure document mgt outside the Firewall Account executive $95k base; $180k OTE

STATE: MA Web analytics Email Systems Administrator TBD

STATE: Central Midwest: SOA and application Integration technology Account Executive $95k base; $190k OTE

STATE: NY Treasury Mgt. software Sr. Account Executive $100k base; $250k OTE

STATE: NY Securities Trading application development platform Solutions Architect $135k+- base; $180k OTE

STATE: NY Securities Trading application development platform Sales $120k+- base; $250k OTE

STATE: CA Data Storage Cloud Services Sales $135k base; $260k OTE

Xtra Effort's current client hiring requirements: http://webconnect.sendouts.com/job-search.aspx?ID=XES&SiteID=WebConnect&Group=XES&Key=CN

Xtra Effort sees Software-as-a-Service/Cloud Computing as an important trend in recruiting.

Xtra Effort sees Software-as-a-Service/Cloud Computing as an important trend in recruiting. Examples would be Sales people possibly being attracted to a shortened Proof-of-Concept, without an onsite installation, but they maybe concerned about how commissions are paid out with a client only paying on per usage basis.

Some executives may see Cloud Computing as an exciting means to add further value to the enterprise and ignite new discussion, while others don't feel their employer's solution is yet sufficiently "real" to introduce the subject with a customer. VP's may have to spend more time selling their own employees and candidates on the validity of their cloud solution. Technical implementation people may see themselves as QA and product engineering, rather than PS people, if they don't perceive the cloud solution to be ready for prime time.

VP's don't want to overpromise their new value propositions to employees and candidates as a retention/attraction strategy, nor do they want to be too discreet about up coming plans because competitors can come knocking.

Implementation professionals may sense relief without having to perform as much custom coding and onsite integration work, but may feel diminished in their capacity to really help create customer specific solutions that represent competitive advantage for the enterprise.

Sales Engineers may appreciate the efficiency and liteness of an on-demand solution, but may feel less impactful without the customer commitment associated with a $1m dollar decision and massive integration considerations.

Your thoughts? What other considerations have you seen as VP's? As candidates/employees?

Please support my ride for ALS - Lou Gehrig's disease

http://web.alsa.org/site/TR?pg=fund&fr_id=5660&pxfid=138460

Book Suggestion: Beyond Positive Thinking; by Robert Anthony

I just finished the book, "Beyond Positive Thinking" by Robert Anthony. A must read. I particularly like his thoughts on finding your joy and living in the Now, in addition to MUCH more quality content.

See:
http://books.google.com/books?id=29Q40Wwm_rwC&dq=Dr.+robert+anthony+behyond+positive+thinking&source=gbs_navlinks_s

It just occurred to me that I should not confuse telling others about the book with actually IMPLEMENTING his ideas! :)

For me;

1) RECOGNIZE and rid OBSTACLES to your goals, i.e., just don't say Xtra Effort is going to make 'X' placements in 2010 over and over again, but review what has been getting in the way, and remove it.

2) Be in the Present, don't fret/obsess over the future or past, i.e., remind yourself, "what real problems do I actually have NOW?" The answer is likely to be none. When real problems occur, our natural intuition kicks in real-time and will solves it. Otherwise stay in the present. It is like untying an emotional anchor of BS, i.e., "who really cares what my boss, family, friend, customer, or employee said about me two months, or might think of me if I screw this up"

3) Find your joys and incorporate them into your work life, family, and friends. In other words, feel righteous about what makes you productive and jazzed. I was fortunate years ago to create Xtra Effort, it represents self expression, risk/reward, informality, and a non-political approach to work culture. I had to walk away from security, formal leadership, a big brand name, benefits, etc., but it was clearly worthwhile. Yes, I no longer coach my kids sports, and I do cycle for fours on a Saturday morning, but when I return, I am "in the moment" and more alive (AND OF VALUE TO THOSE AROUND ME) than living in accordance with someone else's standards.

commentary on Xtra Effort hiring demand

Companies with hiring demand this current month provide enterprise solutions related to fraud prevention software, marketing automation, data integration, outplacement services, data storage technology and services, and IT infrastructure consulting.

Solutions are more often being delivered through Software-as-a-Service and Cloud Computing, but installed software remains a common way to buy solutions.

We have seen an increase in hiring demand for West Coast positions, as well heightened interest in the healthcare segment.

See: http://webconnect.sendouts.com/job-search.aspx?ID=XES&SiteID=WebConnect&Group=XES&Key=CN

can you outsource Sales?

The below article from the Mass Hightech Times informs us that smaller technology companies are considering a near 100% virtual model, including the outsourcing of Sales. Their example is a hardware company with a seemingly low price point.

It is Xtra Effort's opinion that outsourcing of Sales is only viable if the product's price point is relatively low, the category mature, and the installation/integration simple. Otherwise it won't work.

Sellers need to have extensive knowledge of their customers, markets, and pain points to be effective in making a corporation feel comfortable to make a capital expenditure with a newer technology that requires a change in enterprise behavior (to adopt among users). Customer intimacy is also required to help the enterprise buyer mitigate political and financial risk.

Only Sales people who are 100% committed to an employer can develop this required mix of knowledge and relationships for an enterprise to embrace change that is externally initiated by a start-up.

Outsourced demand generation is the exception. Appointment setting and market intelligence gathering can be effectively performed by a third party.

Technology start-ups should only outsource their entire Sales cycles if their price point is relatively low, their solutions represent little risk to enterprise decision makers, their product category is mature, and solutions easy to integrate and adopt.

Can you imagine a CIO (or more likely, her subordinate's subordinate) adopting new wireless headsets or a blog widget from a third party Sales agent? Yes, probably.

However, can you imagine a sales agent from a third party being successful in convincing a CIO to embrace a $500k annual commitment to a new order entry system based on Cloud Computing? Probably not.


The Mass High Tech Times article: http://www.masshightech.com/stories/2009/06/15/weekly7-Limited-funds-drive-startups-to-contract-hiring-.html

you win some, you lose some

In the past month, Xtra Effort has helped three clients hire very accomplished sales people within clients' respective niches, i.e., "find me the purple squirrel".

Clients continue to insist on both functional skills and industry knowledge/experience. These hires represented long evaluation processes. The interview process is longer because both candidates and clients are cautious in today's market. Clients can't afford a bad hire because of the impact on cost, time loss, and customer perceptions. Candidates don't want to jump from one risky company to another because of lack of due diligence, and end up with too many job changes on their resume and have ineffective territory and customer momentum/traction or no substantial enhancement in acquired industry/technology knowledge.

In addition to the successful hires, we have had a couple of 4+- month evaluation cycles result with qualified candidates receiving a job offer but ultimately either staying with their current employer or accepting an alternative offer. Our candidates would have likely accepted our clients' offers had they been delivered less than six weeks from their initial meeting, but the lengthy client evaluation processes afforded the candidates the time to discover alternative choices.

Xtra Effort intends to be timely and professionally assertive with clients in communicating an old Western gun fighting adage "there is the Quick, and there is the Dead". 'A' player candidates still demand competitive wages and have lots of choice.

Overall, it is Good News!! We are seeing more clients hiring and more job offers being produced.

We commend the clients who are hiring because they believe in their company and its products they are selling solutions with a definable ROI and have an optimistic view of the future. However, we also have empathy for the clients who are taking a wait and see approach.

In the mean time, all of us: recruiters, clients, partners, and candidates, need to continue to flip as many stones as possible to find the right match, while also developing meaningful relationships for the long term - nobody said it would easy. But then again, an endeavor is only truly fulfilling if it contains challenges.

We are cautiously optimistic.

"When you are green you are growing, when you are ripe you will soon rot"

I was commenting to a fellow cyclist how difficult it is to get any of you to have the courage or initiative to help out with a comment on this terrific Xtra Effort blog.

He said: "be more provocative". I said to myself, "hmmm, how do I that?" and left it alone. We had too big a hill to climb and suffer to waste time pondering.

Well, since then Xtra Effort has been working with a few clients that represent financial stability, proven references, first class technology, equity, and strong career opportunities. However, candidates have chosen to stay safe, despite definite signs of rot on the leaves in their tree garden.

Similarly, clients have been sticking by their hope that their candidates who are 50% of quota for the past three quarters are suddenly going to change; or they are hoping new revenue streams will be coming from the same old territories, knowing full well investment in new sales geography or vertical is required.

Where is the guts?

It's best stated in the below article. CARE TO COMMENT? :) (I wish I wrote it!)

http://www.boston.com/sports/baseball/redsox/articles/2009/05/03/go_ahead_take_a_chance/

Easier or more difficult to discover candidates?

The escalated rate of unemployment gives employers more confidence about their ability to discover new candidates.

Nonetheless, many have found that the most suitable candidates are hunkering down and staying with their current employer because:

1) They don't want to risk their "safe" status with their current employers

2) They don't want to be the "last person in" with a new employer, in case the new employer has a reduction-in-force, making them the most vulnerable

3) Fear associated with change is heightened in an uncertain economy

Consequently, employers have become frustrated or surprised by the lack of suitable candidates.

Xtra Effort needs to be sensitive to these employees' concerns, and not appear self-serving in creating exaggerate fears.

However, we would be remiss NOT to share exciting new opportunities with potential candidates, while also gently reminding them of the inherent risk of staying still, missing out on new career opportunities, and being blind sided by an unexpected Reduction-in-Force from their current employer.

• Employees who are NOT looking for work, your comments? Our clients would like to know.

• Employers who are frustrated with hiring results, YOUR comments? Your peer hiring managers would like to know.

(anonymous comments are fine)

How did you discover your new job?

Candidates -and sometimes hiring managers - frequently ask Xtra Effort "what is going on out there?".

We sometimes answer with detail about the types of clients hiring and what they are looking for in candidates. Other times we simply say things are slowly improving. We are not quite sure what the inquirer REALLY wants to know, i.e., "are things improving and am I going to be OK?" or a polite way of asking "what specific jobs align with my background?".

An Xtra Effort service that may be of additional value would to have more specific answers about how and where candidates recently discovered their new jobs:

1) Through a recruiter, previous co-worker, friend, etc.?

2) Was the position budgeted an established, or was it as a result of the candidate's unique strengths and how they aligned with a company's current situation?

3) Was the position a replacement or expansion position?

4) Why the candidate was chosen instead of the #2 candidate?

5) The size of the employer, and what they make and sell?

I think you would agree this content could be of value. Xtra Effort will do our best to ask these questions and post the answers, but YOU can immediately help by POSTING YOUR COMMENTS (anonymous is fine).

Can you help us help you?

Please COMMENT.

Thanks!

Restaurants, the circus, the mall,and David Gergen

Another naive observation: have you noticed the increased attendance at restaurants and the mall? We were also at the circus over the weekend: there were a whole lot of people buying $4 popcorn. I know there are bigger GDP indicators than mall parking lots, restaurant waits, and circus popcorn - but it makes you wonder, could things be opening up, at least a little bit?

Separately, I saw David Gergen speak at a Umass alumni breakfast gathering. Among his many impressive comments:

1) Don't select people (political or employment) for having the least red flags or weaknesses, but instead for how their dominant strengths align with your needs. Dominant strength alignment is a greater predictor of success than weakness avoidance.

2) Today's younger workers respond better to frequent and candid communications (and feedback) than a centralized command and control culture

Both of these comments struck me as insightful.

Still hot: Data storage, virtualization, and data encryption

Although IT budgets are down, Xtra Effort's recent client discussions indicate Data storage, virtualization, and data encryption projects are still being funded.

This Computerworld article elaborates: http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9131321&source=NLT_NET

Killer Apps with undeniable and hard ROI's

By coincidence, Xtra Effort is working with two clients whose sales transactions are partially fueled by the down economy.

Our first client provides software that analyzes banking transactions and detects fraud.

The second client provides software that analyzes enterprise accounts payable, expense reimbursement, and procurement related activity on a real time basis. The outcome is cash leak prevention by stopping erroneous transactions (whether they are fraudulent or unintentional).

Both companies have hard dollar return on investments within six months of installation.

These solutions are not to be confused with more the common compliance, role segmentation, or audit technologies - although their customers receive this functionality as a secondary benefit.

In today's econonmy, enterprises' can't help but to investigate and often purchase their solutions because they provide a near definite means to drive more cash to the bottomline. What a way to create a hero out of your customer!

The challenge of course is getting the enterprise's attention, and proving vendor viability and solution legitimacy (no easy tasks). However, once the proper enterprise executives are engaged and due diligence is executed, the results speak for themselves.

Both clients have several globally recognized enterprise customers who serve as showcase references.

Separately, in the same spirit of ROI, Xtra Effort is also working with a company who specializes in helping the hospitality industry improve their e-mail marketing effectiveness. Although it does not have the same hard cash ROI as the above companies, hotels, cruise lines, and casinos are enjoying the superior cost effectiveness of e-mail marketing as compared to traditional print marketing only.

http://webconnect.sendouts.net/CN_main.aspx?key=cn&id=XES represents a link to specific Xtra Effort client career opportunities.

West coast versus Central & East hiring demand

This week's client dialog has repeatedly informed Xtra Effort of their being greater hiring demand for Central and East coast people than West Coast.

The reason is lack of enterprise scale projects or procurement activity, at least as compared to the other regions.

This data was derived from IT infrastructure solution companies, and from application solution vendors.

What are you seeing?

"Cloud Computing explained"

We have found "Cloud Computing" to receive mention with increasing frequency. This article represents an easy explanation. Althought it's likely to change, and have ten alternative interpretations.

http://tech.yahoo.com/news/nm/20090326/tc_nm/us_column_clouds

Excellent Article on the Status of Software as a Service

This Computerworld article does a terrific job of illustrating how Software As a Service ("SAAS") is not just CRM and HR any longer, but also ERP, BI, Supply Chain, data cleansing, contract management, marketing automation, etc.

In fact, 64% of the companies in their survey use some form of SAAS now, with the majority of the remaining 36% having plans to implement SAAS.

SAAS is now considered a means to gain strategic advantage, not just improve internal productivity.

http://www.computerworld.com/action/article.do?command=viewArticleBasic&taxonomyName=Software&articleId=334178&taxonomyId=18&pageNumber=2

As a business owner, recruiter, cyclist, and member of my local community, I speak with several hundred people per month.

 

What becomes evident is how many of us are hard working, intelligent, spirited, creative, and honest professionals who want to:

 

·      Add value to their clients, employees, employers, families, and community

·      EARN money without taking short cuts

·      Spend money on employees, family, vacations, health, books, golf, music, food, dining, theatre, hunting, fishing, cooking, charity, religious institutions, personal growth, and several other worthwhile endeavors

·      Invest in certificates of deposit, bonds, securities, property, technology, mutual funds, 401k, and educational funds

 

Our collective honesty, intelligence, goal orientation, and work ethic cannot be understated.

 

If this is a reflection of our general US population, I can't help but to think things WILL improve.

 

Xtra Effort is doing its part, including investing its money and energies in client and candidate communication, client dinners, productivity tools, web and in-person meetings, best practice surveys, etc. Our personal lives include modest vacations, electronics, bicycle service, dinners, home improvement, raising and spoiling children (although mine would disagree) and grandchildren etc.

 

I sense you are doing your part as well. As 21 century citizens at least the consumerism part comes easy :)

 

I was not around in 1929, nor was I Europe in 1945, but the photos and videos looked really scary. But somehow many pockets of these regions and cultures began to prosper within just several months from their worst periods. It did not start without a little faith in each other, a smile, and a positive step forward.

 

Perhaps I am naive, and I am certainly not the best read or informed, but I am suggesting we try to see these qualities in yourselves and your coworkers, employees, leaders, friends, and family members.  I bet it will make you smile; and further your investment in people, silly stuff, and important corporate and personal growth vehicles ...

"What comes around, goes around".

 

Many of us can only remotely influence our Fortune 500 boards and government leaders on the the short term, but LET'S NOT WAIT FOR THEM. Instead, let's believe in one another. Spring is here!