Soumyajeet Mohanty ran Edu Solutions, an educational consultancy service in Bhubaneswar Odisha. Initially he started Sunrise Coaching Solutions providing tuition to engineering students. As the venture did not yield much returns, he ‘moved up the value chain’ by providing ( fake) admissions to students wishing to get into medical colleges. Continue reading
One of our clients in Pune had invited me to diagnose the problem of their poor margins. When I asked the VP-Sales he said,” We are facing this problem for the last three years, so last year we have launched an attractive incentive scheme, but still it is not producing results.”
Most of the sales managers intuitively feel that incentives lead to higher margins. However the research carried out by Edward Deci and Richard Ryan at the University of Rochester and Adam Grant at Wharton say that the effectiveness of motivation varies with the task. There are two types of tasks: Algorithmic and Heuristic tasks. Continue reading
In your social network you have two types of ties:
- Strong Ties: These include your close friends whom you know well and with whom you interact frequently.
- Weak Ties: These are the acquaintances who know you superficially and your interactions with them are rare.
Between the two of them who should support you more in propagating your service? The intuitive answer is obviously the former, that is the strong ties. Let us look at a hypothetical scenario. You (A) have strong ties with B & C with whom your total strength of the network is 28 connections whereas with X & Y you have weak ties and the total network among you is 25 connections. Which one should give you more mileage? (refer figure below)
Let us look at it mathematically.
You will observe that in strong ties there are lot of common connections which lead to a great deal of overlap. Whereas in case of weak ties, the overlap is less and the distributed network is high.
You will observe that your message will spread to 7 new connections with strong ties whereas with 18 connections with weak ties.
Let us look with two examples:
- My book, Contextual Selling was published a few years back. I had conducted a few sales training programs for Rittal India, a leading manufacturer of IT enclosures. When Jacob Chandy, the Vice president Sales and Marketing went through the book, he immediately ordered for 80 copies. In the last 5 years I might have met him hardly 3-4 times.
I was delivering a Keynote address for Metrology Division of Carl Zeiss in 2014. After seeing the book, Mr. Wolfgang Schwarz, VP Sales based in Germany ordered for 30 copies. Our interactions over mail and linkedin are hardly 3-4 in the last two years.
I suggested Sunil my good old friend (strong tie) who was in sales about the book. He said, “I need a complimentary copy.”
- Last week I was conducting a program for Bruker Analytics in Mumbai. I had interacted with Dr. Shreeram Oak CEO, only once in 2012. After that meeting the second time I met him was while conducting the program.
In Mumbai I have two close friends, Amar and Ramesh (names changed) who are CEOs of companies in similar field and competing with Bruker. Both of them know me for the last 25 years. (We were working in the same company earlier ) Whenever we meet, they regularly complain about the poor quality of their salespeople and the need for a training program But training program to Rajan , no way!
- They know you too well. ( familiarity breeds contempt?)
- They move in almost similar circles
- There is a considerable overlap in their networks.
- They know you enough about your professional competence.
- More novel information about you can move into this network.
- There is a less overlap
The concept paper on Weak ties was developed by Mark Granovetter a Harvard Theoretician in 1972 as a part of his Ph. D. thesis. The Strength of Weak Ties is considered as a most influential sociological paper.
Quite often life is illogical and counterintuitive, do not ignore the weak ties,make the best use of them to improve the strength of your social network. Wish You a Very Happy and Prosperous New Year!
Rajan Parulekar|Paradigm Trainers Private Limited| #7, 7th Main, Binny Layout, Vijaynagar, Bangalore 560 040| T: 080 23207930, M: 98450 14098| email@example.com
Natasha, a sales manager from a renowned hotel in Goa interviewed a candidate called Moin, a B.Com graduate for the post of a trainee sales executive. Moin was a tall, fair and handsome guy who spoke fluently during the interview. Natasha felt he was an ideal candidate for sales. When asked about his strength, Moin replied his strength was manipulation. Save for this ‘minor’ aberration he looked OK on other fronts.
He was shortlisted for the next interview, where he repeated the same answer when asked by the GM. The considerate GM said, “young man, please go home and refer the dictionary and check the meaning of the word manipulation. You should not give such answers. Elsewhere you would have been rejected straight away.”
After joining, Moin started throwing tantrums . When asked to usher a guest in the restaurant, he said, “I am graduate, I do not do such things.” Natasha once asked him to follow up for payment from one of the regular guests of the hotel. Moin fired the guest saying that if the latter does not pay immediately, he may have to face dire consequences. Luckily Natasha, the manager overheard the telephonic talk, seized the receiver and apologized to the guest. Within two months, Moin resigned without giving any reasons.
The manager had spent her precious time of hers as well as of others including the GM. It is very rare for someone to contribute significantly during the first six months. Precious time and money of the organization were wasted. Some of the mistakes managers make while recruiting are:
- Selection Bias for common traits: The candidate revealed his interest in being a DJ which was a common interest for the manager too.
- Emphasis on external appearance: Selection of candidates is based on appearance, personality as well the hearing the expected responses. For example when asked why would you like to join our company, the typical response from candidates is: “I would like to take challenges and grow with a growing organization.”
- Ignoring the Obvious: Listen to what the candidate says and also what he does not want to tell. Here Moin went on harping his manipulation skills which was ignored.
- Mistaken Competencies of a Job Role: Most of us feel that a good talker is a good salesman. It may be true for low-value sales. However for high-value product or service like premium hospitality, the converse is true. It is not the glib talker but the effective listener who fits the bill for a good salesperson.
For more details please refer the chapter, Why do Salesmen Love to Talk in my book Contextual Selling (for more details http://www.paradigm-info.com)
“I tried to get an appointment with my client for six months, I could not succeed”, said Shashi, my friend in an Omani Company. “However the moment my Scottish counterpart sitting in the next cabin called him, he got an appointment the next day”.
Two Caucasian ladies, one French and the other a Polish, sang an average composition on peace & harmony in Bangalore for 2-3 minutes. After their recital, there were hordes of people from the audience who wanted to get photographs along with them. The singers were neither celebrities nor accomplished singers, but the colour of their skin made all the difference! Let us look at the different types of perceptual biases most of us have.
- Blind-Spot bias-: Your own cognitive bias is a bias in itself. People notice cognitive and motivational biases much more in others than in themselves. We have a positive bias towards the Caucasians but may discount brown or dark-coloured skin executives.
- Anchoring bias: People are over-reliant on the first piece of information they hear. In a salary negotiation, whoever makes the first offer establishes a range of reasonable possibilities in each person’s mind
- Availability heuristic: People overestimate the importance of available information. A person might argue that smoking is now unhealthy because they know someone who chain smoked and still lived upto 100. Quite often the information is taken out of context or only a sample is selected by ignoring the other data.
- Bandwagon effect: The probability of one person adopting a belief increases based on the number of people who hold that belief. This is a powerful form of group-think and is reason why meetings are often unproductive.
- Choice-supportive bias: When you choose something, you tend to feel positive about it, even if that choice has flaws. Like how you think your dog is awesome – even if it bites people every once in a while.
- Clustering illusion: This is the tendency to see patterns in random events. It is key to various gambling fallacies. Like the idea that red is more or less likely to turn up of a roulette table after a string of reds.
- Confirmation bias: We tend to listen only to information that confirms our preconceptions – one of the many reasons it’s so hard to have an intelligent conversation about climate change.
- Conservation bias: Where people favour prior evidence over new evidence or information that has emerged. People were slow to accept that the earth was round because they maintained their earlier understanding that the planet was flat
- Information bias: The tendency to seek information when it does not affect action. More information is not always better. With less information, people can often make more accurate predictions.
- Ostrich effect: The decision to ignore dangerous or negative information by “burying” one’s head in the sand, like an ostrich. Research suggests that investors check the value of their holdings significantly less often during bad markets
It is not possible to eliminate all the biases, but the least we can do is to be aware of them and in mindfulness the chances of our decisions going wrong can be minimized.