Knowledge versus Know-how

Once, I was asked to help an existing company recruit some sales help by their VP of Sales and Marketing. They needed someone who could grow a new software product they were developing, and who had both a technical expertise and business savvy about them. We had narrowed down the field to two people. One guy was in his forties, and had a 15-year track record of substantial sales and marketing experience and success. He actually was an electrical engineer, who during his career had migrated into sales and marketing. He understood the product perfectly, and both the VP and I felt that he would be an excellent fit. He was driven, self-assured, personable, and hungry.

The other candidate had just graduated from a pretty prestigious MBA B-School program, but did not have any direct selling experience. He did know all the latest buzzwords and jargon, and was very knowledgeable on all the latest strategies in selling. I felt that while this guy was personable and knowledgeable, he did not really have any real sales experience and would not be able to carry the load of this new position. He 'knew' a lot, but he did not yet prove he could do a lot.

Needless to say, the CEO of the company was more impressed about this guy's pedigree than actually what he could do for the company, and the guy with knowledge but no know-how was hired. Fast-forward 1 year. The guy they hired was an absolute disaster. He could not and did not sell anywhere close to the quota he established. The other guy went on to help another startup grow to $25 million in sales in the SAME time period! Why did this happen? The company that ended up hiring the wrong guy eventually went out of business and was backed by some pretty prominent investors.

So, if you where in that position what would you do? But first, let me ask the question another way and in a different scenario: baseball. If you have bases loaded, two out, one-run down, in the bottom of the 9th; who would you rather have in the batter’s box, a guy who is a perennial all-star, has 10-years of major league experience, has been an MVP a few times, and is hitting .330? Or someone who knows everything about the game of baseball, every statistic or every player, and the odds of any player hitting off any pitcher; but who has never seen a 90 mph pitch? Simple, yes! Everyone will answer that question correctly, but the majority of people hiring someone for a sales or marketing or engineering job will not. You cannot substitute know-how for knowledge when you need real execution. Most people are afraid to hire a person who knows how to get things done. Instead, they often think they are taking the 'safe bet' and hiring someone from a prestigious school. That is why as companies grow, they usually grow worse.

As the saying goes, “I would rather surround myself with a few very talented people, than with a plethora of mediocre ones.” Even though what someone has done in the past is no indication of what they can do in the future, it is better to know that a person has the know-how than not.

The Moldy Middle

While taking statistics during my quest to get an MBA and while earning my engineering degree, the professors always emphasized the importance of finding the statistical mean of any population by using the Central Mean Theorem (a.k.a the highest point of the Bell Curve). As an engineer, this was essential in order to maximize throughput, minimize cost and waste, and ultimately make a better, faster, cheaper widget. A funny thing happened on the way to the dark side of marketing. I discovered that the only thing in the middle of the road was quite literally dead road kill. I do not know if you remember stores like Bradlees, Ames and Service Merchandise (just to name a few), but they all folded because the environment changed and they were caught trying to service the mythological “average customer.” Part of that change came when Wal-Mart began its juggernaut with the discount department store. Wal-Mart did two things right: 1) Focused on “mobile” consumers, and 2) Fo

The Saleman's Litmus Test

If your goal is to become a great company or even improve your existing one, every employee in you company should be able to “sell” the product or service that you are merchandising. Since that is usually not the case, you are forced to hire sales people to help implement the objectives laid out by upper management. A national study indicated that less than 3% of the population has an inherent penchant for sales, and as much as 50% of all salespeople really do not know how to sell. During my 20 odd years in sales, I have hired, worked with, and observed great sales people (yes, both men and women). Being the observant type and believing in best practices, I have complied a listing of questions you should ask any salesperson before you hire them, and should use this Litmus Test to review of your existing sales force to determine whether to keep them or cut them loose. I hope you find it useful. Psyching Out the Test : People always try to answer questions the way they think yo

Traits of an Entrepreneur

I will begin and end this article with two quotations. The first is from Edward Rogers: "You don't deserve to be called an entrepreneur unless you've mortgaged your house to the business." --Edward S. (Ted) Rogers This one sentence pretty much says it all. Entrepreneurs are not necessary gamblers, but they are willing to put everything they own, or go all in, in order to make it happen. In the classical sense an entrepreneur is define as anyone who has possession of a new enterprise, endeavor, venture or idea, and assumes significant accountability for the inherent risks associated with the development, growth, and outcome. He or she is an organizer who combines land, labor, material resources, and/or capital to create and market new goods, products, or services. The term "entrepreneur" is loaned from the French and was first defined by the Irish economist Richard Cantillon, where the term was applied to the type of persona who was willing to take upon th

The Profit Prophet

Search This Blog