{"id":73907,"date":"2020-04-30t12:00:37","date_gmt":"2020-04-30t16:00:37","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=73907"},"modified":"2020-07-10t16:22:55","modified_gmt":"2020-07-10t20:22:55","slug":"dont-buy-a-rolodex-buy-a-process","status":"publish","type":"post","link":"\/\/www.g005e.com\/2020\/04\/30\/dont-buy-a-rolodex-buy-a-process\/","title":{"rendered":"don\u2019t buy a rolodex, buy a process\u00a0"},"content":{"rendered":"

how to hire the optimal business developer.
\n<\/strong><\/p>\n

by bill penczak<\/em><\/p>\n

if you\u2019re under 40, you may not be familiar with the rolodex. right after stone tablets, we used to keep track of our contacts in a really great contraption that was a rotating spindle on which business cards or handwritten notes of contacts were maintained. the \u201csearch\u201d function was you fumbling through trying to remember that prospect\u2019s name from two months ago.<\/p>\n

more: <\/b>the three r\u2019s for beating the corona crisis<\/a> | 6 reasons why your marketing sucks<\/a>
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when it comes to hiring a professional to build a practice, whether it\u2019s a full-time business developer or a practice partner or principal to grow the business, many firms make the mistake of \u201cbuying a rolodex.\u201d translated for today\u2019s vernacular, they are hired because \u201cthey know everyone\u201d or \u201chave contacts in bigger target companies\u201d or \u201care members of every organization.\u201d
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\nthe firms that follow that approach are likely to be sadly disappointed, because when the shiny new bd person burns through their contacts with \u201cchecking in\u201d lunches with everyone they know, the decline in meaningful activity \u2013 and more importantly, qualified leads \u2013 is imminent, guaranteed.<\/p>\n

here\u2019s a real-life story from one middle market firm in one of the flyover states:<\/p>\n

his credentials were impeccable: a director at a big four firm, managing director of a well-known national consulting firm, and an earlier stint at what is still the gold standard in the accounting industry, despite its untimely and as alumni would argue, unwarranted demise, arthur andersen. he was going to be the golden bullet to make inroads in a new internal audit practice for a large regional accounting firm.<\/p>\n

a hail fellow well met type, he said all the right things in his multiple interviews, and all were taken by his extensive network that would soon result in millions of dollars in new upmarket engagements.<\/p>\n

fast forward 15 months, and the rock star had not produced a single new engagement. he had billed fewer than 80 hours on some small engagements that others had sourced. when pressed to explain the paucity of new work, he was quick to point out that the firm didn’t really have a lot of credibility with larger companies, that he didn’t really have the support of the partner group to branch into consulting and that many of his contacts had moved to different positions at new companies.<\/p>\n

the firm reduced his base compensation and gave him a higher commission to mollify the sting of his base compensation haircut. three months later, he resigned to take a position in industry.<\/p>\n

so much for that “rolodex\u201d hire.<\/p>\n

what to consider in the optimal business developer<\/strong><\/p>\n

there\u2019s a naturally occuring chasm between the typical cpa and the typical pure bd person. in one of the personality tests we did at one of my prior firms, most of the cpas were in one personality quadrant, and the bd and marketing folks were typically in the opposite corner. good business developers tend to be outgoing (but the best ones listen more than they talk), tangential and varied in their curiosities, and unafraid to ask for the order. that last one is often a challenge for the practitioner who has a bd role as well \u2013 they sometimes believe the prospect should just see the benefits of the solution and be automatically drawn to them. it\u2019s an attributes vs. benefits discussion.<\/p>\n

here are five primary considerations for hiring someone to grow your firm in the market:<\/p>\n

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  1. hire for discipline, not contacts.<\/strong> like any well-organized effort, a firm\u2019s go-to-market approach should follow a prescribed process including a formal reporting regimen. many firms are finally adopting customer relationship management (crm) systems that track targets, prospects, qualified and proposed new engagements. with such a tool in place, firm management can view, in real time, progress against predetermined revenue goals. some pure bd professionals (and even a greater percentage of partners) resist that scrutiny and accountability. don\u2019t hire them. when interviewing a potential new bd professional, probe about how \u2013 and if \u2013 they have used a crm system.<\/li>\n<\/ol>\n

    in 2013 i assumed management of a five-person bd team for a $100 million firm. none of the bds were using the system on which the firm had invested tens of thousands of dollars.\u00a0 when i explained to my new team that the system was the only way we would calculate commissions, which accounted for 30-50 percent of the bds\u2019 total compensation, behavior changed almost overnight. and although the grumbling didn\u2019t, over time the team realized the value of an integrated system, and the fact that they could collaborate in the market together for greater mutual success.<\/p>\n

    there is likely to be resistance from some candidates about the scrutiny that a formal process begets, but by setting expectations at the outset and filtering out those who don\u2019t want to play by the rules, your bd will perform better and gain better internal buy-in.<\/p>\n

      \n
    1. uncover their true colors: lone wolf or collaborator. <\/strong>hunting alone is not a successful long-term approach. and you\u2019re more likely to shoot yourself in the foot. when a bd includes partners earlier in the prospecting process, they can all collaborate to identify more prospect needs and more firm solutions. this process does take more time, and some firms have even adapted account planning processes, whether they be informal or as sophisticated as miller-heiman, a sales pursuit template used by some of the larger firms. the conversation for a prospective new bd should include discussion about how they\u2019ve worked collaboratively with partners or practice leaders; a chronology of successful and unsuccessful pursuits; and listening for \u201ci\u201d vs. \u201cwe\u201d language. the lone wolf is more likely to convey their sales omniscience and that will only serve to annoy you, or worse your partner group, in pretty short order.<\/li>\n
    2. will they go to the greenfield? <\/strong>the rolodex bd relies almost exclusively on those already in their sphere of influence. in my experience, firms grow dynamically from both reactive (direct referrals from coi or clients) and proactive (targets for whom the firm can solve a specific need). the two most hated words for even the most seasoned bd person or firm partner are \u201ccold call.\u201d with an abundance of research tools such as linkedin basic, linkedin sales navigator or linkedin targeted advertising, and the ability to see who in your network is already connected to the target cfo or company owner, there should never be a cold call again. this process requires nimble research and tenacity. in the interview process for your new rainmaker, probe about the candidate\u2019s research prowess and skills in levering their networks for real action.<\/li>\n<\/ol>\n
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      1. knowledge of market dynamics. <\/strong>the most successful bds maintain a real-time pulse on the market:<\/li>\n<\/ol>\n