สำเนาบทสนทนา 🔗
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no one cares the way the owner does.
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No one understands the pain.
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When they go to sell the business, they have so much invested.
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And it's why if you're approaching a CEO or an owner for equity, you need to understand, you are asking them, like you're saying, Hey, I think I should be the godfather of your child.
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Right?
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Or, or like, you should write me into the will.
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Like you don't know the suffering they went through.
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You just see it as equity.
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Welcome to The Scalability Code, the podcast that helps you get out of the sh*t show and start growing your business.
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A few times each month, you'll hear stories and commentary from visionary entrepreneurs, EOS implementers, and fractional COOs about how they've taken businesses to Level 10.
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And now for your host, Matt Haney.
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How we doing folks?
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Thanks for joining us on another episode of the Scalability Code.
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Today we're joined by an old friend of mine, Adam Boyd.
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Adam, nice to see you again.
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Adam is the owner of Trinity Training and Development and, is one of my favorite sales ninjas and leadership development people I've come across.
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So Adam, thanks for joining me.
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Matt, so good to be with you.
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I remember you working at Trigger.
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Yes.
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That was a minute ago.
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2012.
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and then there was, you were, you were with Denver,
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Yep.
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right?
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But before you guys, I still have those sand bes.
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When you guys worked together on that and then you guys did the,
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thanks for coming on, Adam.
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We start this the same way, every time I ask my folks to go back and think of some of their earliest entrepreneurial memories And uh, I want to know if you can think back to when you either were impressioned by an entrepreneur or someone you know, lit a fire under you that said, Hey, you can do this whole entrepreneurial thing.
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so anybody come to mind?
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Any stories, any people, any times in your life where you're like, I can do this
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I will tell you a couple stories, but I wasn't the kid who was trying to start a business.
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I wanted to make some money, but I always had
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a, like, I always had a, a use for that money.
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And when I was 12 I loved buying comic books.
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And by the way, back then it wasn't cool.
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Now it's cool.
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Back then you were kind of a dork.
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But I would work at this comic book store and I was there every Saturday.
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Finally, the people behind the counter who owned it said, Hey, do you just wanna come help us?
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Do this stuff like we'll pay you in comics.
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and I loved it.
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And I was there Friday night, all day Saturday and they would just gimme a big stack of comics and send me home'cause they had all this inventory that wasn't gonna move.
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I could price things.
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I knew what things were.
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I think I ran the register a little bit.
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And that was this really sweet season in my life.
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And then this isn't about money, but I then.
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Started and I'm learning who I am, kind of in my mid forties.
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I, I played high school football and I really wanted to be good'cause we had really sucked.
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We were oh and 10 my sophomore year we got shut out four times and as I kind of became a senior, I started saying, Hey, we are gonna organize our own practices outside of the coaches.
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And we started doing that in the summer and I said, our stadium looks like crap.
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We need to clean it up.
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So I started like.
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Galvanizing people around that.
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And I'm not necessarily the most charismatic.
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I just have a vision.
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I'm like, dadgummit, we're gonna do this, and what do I need to do to get it done?
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And then I did something similar in college with our fraternity.
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It was more like, how do we really build this thing?
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How do we raise more money?
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and then in terms of like really imp impressing me about entrepreneurship, the person who is really.
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Stamped me and I don't have anything close to his level of genius, effectiveness, or, or success, is Jeff Sandifer, who, guy who's done a lot in education, oil and gas and energy, and when I was at Acton, he just impressed upon me so much certain thoughts.
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That if you knew what he taught, you would hear it spilling out of me left and right, and I'm just trying to move our business in those directions.
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Well,
I know Jeff, I don't know him as well as you do.
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Actually ran into Jeff in a hotel in Aspen 15 years ago, and I think it's about the time you were in, uh, the Acton program, which I still laugh about.
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I got denied twice.
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And then the next year is when Robin Weekly Bruce started.
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Do you know Robin?
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Yeah.
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Yeah, so Robin and I laugh about this all the time'cause her kid and my kid are in the same grade at school.
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So she's like, Matt, you're not a failure.
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You're not.
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I mean, you didn't get an acton if I was there, you'd have gotten in.
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You're not a failure.
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She's hilarious.
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So anyway, I got to hear Jeff speak at one of your Acton events and then I ran into him at a hotel and we chatted for a sec.
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He's an incredible entrepreneur and a giver has done a lot of great things for a lot of
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Oh yes.
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I, I think they brought me into that class just to kind of like, see if they could help make me get through it and just, they're like, how much hard work can one person do who
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Adam, he's like a passion project, you know, I mean, we're just gonna see if we can
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I was, I think I was, I think I was.
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So
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Alright.
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So I first met you when you were taking, I think it was during the Sandler days.
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tell me about those times and sort of how that impression where you, where you are today.
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And give us some backstory on what is
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Alright.
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So Sandler is a, worldwide sales training business and, they operate through franchisees.
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Started in the early eighties by a guy named David Sandler back then they were kind of a hotel business.
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You would show up whenever Sandler would come through and then it turned into weekly classes and then it's expanded.
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They went through an acquisition several years ago, and so they've updated their brand and some of what they're doing.
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But, Carl Siebel had come to Acton He had taught a session on sales and he had said, Hey, I do this assessment on people.
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If you're looking at sales as a career, come talk to me.
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I can run this assessment on you and we can give some feedback on yourself.
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And, I was at Acton, didn't know what I was gonna do.
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Everyone else was like, had a plan and a vision and I was like, I don't know what I'm gonna do.
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I was just trying to understand the financial modeling.
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So I get out and I meet with Carl, and he runs me through the assessment and he says, you, you're not gonna, this is gonna be really hard for you.
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You shouldn't do this.
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You should go do something else.
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But he says to me, and I'm like, well, can I work for you?
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Like, I'll empty your trash and I'm about to sneeze, so gimme a minute.
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right in the middle.
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Adam Boyd, the trash emptier, but such a testament to you, for you to say, I'll do it all.
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I'll work harder than anybody else in the room.
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Just gimme a chance.
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Well, and what he said, he was like, bear in mind I had an MBA at this point.
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He said, I'll pay you$15 an hour for everybody that you book.
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Every business owner you book into this event.
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I'll pay you, I think it was$200 or a hundred dollars.
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And he said, and if I close it, I'll give you I think 10%.
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And so I sat with him like by myself.
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Sat in a windowless room.
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I just had a book and a phone and there were some posters on the wall
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It's called a
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cold called, it's what it felt like, and I just cold called for him.
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And so, that was brutal.
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And, but we, I thought I'd be there three months, maybe six months.
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I'd learn a lot.
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And you, that's sort of a misnomer I learned, but through pain and then.
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I ended up, not because I liked it, but because I'm too stubborn to quit.
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I just stayed nine years and we, we trained people, we sold to CEOs, we consulted and we, we got connected a lot of people in Austin, throughout Texas, and that was very formative for how I think about a lot of challenges in sales, probably similar.
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I probably have similar mental frameworks that you do to operations and working with CEOs, and I would love to hear about that at some point.
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Yep.
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One of the things I remember, you came in and helped us train a couple junior salespeople, at hyper wear, and it was the time I learned about the cookbook and I think that was a Sandler term or something around the fact that you would build your outcome and
work backwards into what it took to get to that outcome
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like a manufacturing
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It's exactly right.
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It's like, what's the end output?
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What are the ingredients required to get to that output?
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And I'm not gonna lie, I still use that technique today a lot on holding people accountable and managing expectations.
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It's like, I don't know how to get to the end.
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It's like, well, you don't start at the end.
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You get the end goal and then you work backwards into it.
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what's an example?
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It's, I think it's really simple and sort of self-evident sales.
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How do you use that concept when you're working like below the CEO with a bunch of people on the operational side?
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What are some examples of how you get them operationalizing and measuring, like creating measurable activities that they need to engage in?
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So one of the things that I really enjoy doing is when we're looking at all of our quarterly projects, when I work with leadership teams, we develop these 90 day projects or goals or rocks, and then we establish milestones for each one of those.
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So if you look at the rock, is the end goal, the recipe, the cookbook that it takes to get there.
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Are the 10 milestones, five milestones along the way that says I'm on track to getting those.
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And if you can't get to two, if you don't start with one and you can't skip through it, and we meet on it weekly in terms of accountability that says, Hey, in 90 days from now, we're gonna have an end output.
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Okay, Good.
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What are the 10 things we need to do in order to get there?
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So that's one thing that I use, which is very simple, but it's effective.
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And then another thing is we do, scorecards or measurables for each department.
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We have three to 10 measurables per department.
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Every department has to have it that says, how do we know we're on track on a week to week basis?
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Again, we're not looking at the end goal.
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We're looking at every single week we're measuring something.
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It could be.
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Cold calls for sales.
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It could be cash in the bank for accounting.
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Who knows?
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but you're looking at it and it has to move.
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It has to change.
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There has to be some sort of variable associated with every metric.
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Otherwise, you're just measuring the same shit every week and nothing changes.
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How do you help entrepreneurs and, and the people who work below them?
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Because I think this is very important, find the work.
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'cause in that measurability there are things that people are gonna do better, but even you, like, you're really gifted, you have an interesting connection of relationship and operations.
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Like some of the operations people are like, leave me alone.
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It's kinda like Shrek.
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how do you help, is there any thought to like.
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Getting people into the place where they're thriving because they love the work and they're in a state of flow.
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I mean, you've seen this in your sales leadership world and your leadership entrepreneurship world.
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It's like when you get the right person in the right seat, they immediately start to thrive.
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and unfortunately for a lot of visionary entrepreneurs that go out and create this business and wake up tomorrow and figure out how to do it.
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They don't necessarily go back and ask that person, Hey, are you fulfilled?
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Yes, it's a job, but you wanna show up every day and do what you're doing.
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Or have we put a square peg in a round hole here and you're just doing it because you need the work.
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So to your point on relationships, I get to go back and ask those questions with people not being feared of being the boss.
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They're gonna tell you something different than they tell me.
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They do it every single time, and that's less than fortunate.
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But that's the relationship Part of it is, are you in the right seat?
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and by the way, if you're the right person, we can generally, we can find you the right seat.
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So I think it's being humble and curious, Adam, and understanding, if these people want to do what they're doing every day or they're are hitting a paycheck.
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I love it.
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I want to go back.
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so Trinity Training and Development spun outta Northwood or there somehow Tell us about Trinity training and development.
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Give me the understanding of what it is, who you're targeting, sort of what the business model
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Robert Winter had a background in, working in the college system with corporate clients doing leadership training.
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--> 00:11:57.477
built this company, really great program called Frontline Leadership, and he largely worked with, More of a blue collar industrial clientele who needed frontline supervisor training.
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So if I talk to you about leadership training, you're gonna think about like Covey, you're gonna think about Lencioni and a lot of the stuff is amazing.
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There's some really good stuff out there.
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What they don't do is have anything that's very, very practical for the front line.
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And so you get a lot of people who are doing the work and the next day they're promoted from welder to team lead and or
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So, hold on.
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I wanna ask a question.
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Frontline leader, what does that mean to you?
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That term, because I got follow up, but I wanna make sure.
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Now they are the people like doing the work who actually then start to manage the people doing the work.
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It's not someone on the 40th floor who's looking at spreadsheets.
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It's actually the people really close to the assembly line.
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It's people really close to the project in the field.
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Who touch, feel, smell, work side by side with each of the workers every day.
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That's a frontline leader.
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And those people, there's almost nothing that's available for them.
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And if there is, it has to be tailored to their world.
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Right.
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They don't need to be thinking about regression analysis.
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They've gotta think about precision and manufacturing.
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They need tools that, Hey, when I work with Bob over here, I can help connect with him and understand him, but I don't need to look at like some 16 point chart to understand his motivation.
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I need to understand some general thoughts about.
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Engagement and be able to connect with him and find out what's important to him.
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So we provide that.
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Sometimes we train it, sometimes we train the company to train it and we provide that leadership.
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And, Northwood, which has been our sales training and sales consulting business, is being rebranded into Trinity training.
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'cause it doesn't make sense to have two brands out there and one of which no one really knows.
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so distill down Trinity trainings deliverable are what the service offering is to this.
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I'm guessing it's blue collar service based industry businesses based on the reference that you just gave me.
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But I could have made that up.
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Hey, it's front.
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It's very practical.
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Frontline supervisor training, first
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And that's on not not on everything, any type of, just how you operate as an individual, how you manage people accountabilities.
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We, the things that we're gonna cover are, do you understand your role as a leader?
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Do you understand how to manage different personalities?
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Can you adjust to those?
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Can you communicate coach, hold people accountable, manage change in conflict, and that framework is built and taught.
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We have clients who take some of our frameworks and they have them in the break room on the walls
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awesome.
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to help remind people of this, almost like you do with E Os.
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Yep.
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So you have a series, and how often are you, I mean, is a program, is it a class?
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Is it quarterly?
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Am I getting, can I get one-on-one coaching with you on a weekly basis or how does that
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So we have a group of 10 trainers.
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We're actually expanding the bench'cause we need to go deeper.
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I.
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They go and sometimes every client has its own set rhythm of working with us.
00:15:00.008 --> 00:15:04.717
It's usually somewhere between two and four weeks that they have training going on.
00:15:05.288 --> 00:15:07.418
And our current program is 10 modules.
00:15:07.778 --> 00:15:10.238
Some of them we work with a casino in Arizona.
00:15:10.717 --> 00:15:13.748
They actually work it up and a two hour modules.
00:15:13.748 --> 00:15:19.957
And so they run about 20 trainings and they actually have a big graduation for people when they're done big dinner, whole deal.
00:15:20.297 --> 00:15:22.366
We work with clients around their schedule.
00:15:22.366 --> 00:15:25.576
'cause you can't just shut down a manufacturing line just to do some training.
00:15:25.875 --> 00:15:29.926
It's funny you said something earlier that made me chuckle'cause I hadn't heard this term before.
00:15:30.056 --> 00:15:33.475
I was working with the mechanical contracting firm up in Cedar Park, Texas.
00:15:33.475 --> 00:15:41.794
They're a awesome firm, capital industries, great group of people that, uh, do mechanical contracting work for large, commercial buildings.
00:15:42.154 --> 00:15:43.384
And I got to be friendly.
00:15:43.434 --> 00:15:47.490
after working with them I I did a year deal with them as a fractional COO, and it was great.
00:15:48.075 --> 00:15:53.815
One of their, plumbing techs was a turned inside manager, and he used to have this joke.
00:15:53.904 --> 00:15:59.384
He would say, uh, man, I think that guy's more of a, an outside dog than an inside dog, because
00:15:59.504 --> 00:16:01.484
house cap versus a house cap versus, yeah.
00:16:01.649 --> 00:16:01.828
Yeah.
00:16:01.828 --> 00:16:02.489
How's Cat?
00:16:02.788 --> 00:16:04.379
So I thought that was so funny.
00:16:04.379 --> 00:16:08.339
And he said, my job's to turn the outside dogs into the inside dogs.
00:16:08.639 --> 00:16:10.198
And I thought that was funny as shit.
00:16:10.229 --> 00:16:11.458
'cause it's like, it's so true.
00:16:11.458 --> 00:16:17.078
But those people don't have a ton of, experience or training or background in leadership.
00:16:17.078 --> 00:16:18.369
They need to get it somewhere.
00:16:18.578 --> 00:16:20.229
Well, and here's what you gotta think about.
00:16:20.288 --> 00:16:22.089
A lot of people are really gonna get the work done.
00:16:22.208 --> 00:16:23.798
They have a native skillset.
00:16:24.619 --> 00:16:30.499
and I'll correlate this here in a minute to the other side of our business, but now are asking them, get work done through people.
00:16:30.994 --> 00:16:31.504
Mm.
00:16:32.028 --> 00:16:34.999
You can't just do that through sheer force of will.
00:16:35.239 --> 00:16:41.359
So like in sales, one of the things that happens is you get somebody who's really good at starting new things, finding new deals, working'em.
00:16:41.928 --> 00:16:45.528
That native skillset does not necessarily translate to management.
00:16:45.979 --> 00:16:48.288
So when we work with CEOs, it's like, whoa.
00:16:48.379 --> 00:16:54.198
Before you promote your best sales person to a leadership role, you need to consider you're gonna lose your best rep.
00:16:54.739 --> 00:17:03.288
Unless they're just gonna close everybody's deals, in which case you're not actually getting a leader, you're getting just someone who closes and other people prospect for them.
00:17:03.288 --> 00:17:04.519
And we can set that structure up.
00:17:05.209 --> 00:17:10.189
But once people go into leadership, they need to learn a new skillset.
00:17:10.578 --> 00:17:17.868
So sales leaders who have all the degrees and titles in the world, they have to learn to operate differently.
00:17:17.929 --> 00:17:19.249
They have to hold people accountable.
00:17:19.249 --> 00:17:23.778
Something you and I talk about, they have to learn how to coach, and it's sort of Groundhog Day.
00:17:24.409 --> 00:17:28.128
While they built some systems and some structure and all the other fun stuff.
00:17:28.306 --> 00:17:30.526
We also used to say he can't take off the tool belt.
00:17:31.840 --> 00:17:39.550
Because you think about it, if you go from, you know, screwing and drilling and banging and cutting, all of a sudden that's your, you've done that for your whole career.
00:17:39.730 --> 00:17:45.580
Taking the tool belt
off and setting it aside and having to teach people is a foreign skill to a lot of people.
00:17:45.580 --> 00:17:50.855
But they show promise, they need lead, they need a path, otherwise they're gonna burn out or retire or whatnot.
00:17:51.501 --> 00:17:53.164
You are listening to the Scalability Code.
00:17:53.164 --> 00:18:01.335
I'm your host, Matt Haney, founder of Sinclair Ventures, and we help visionary entrepreneurs like you get out of the shit show and focus on growing your business.
00:18:01.473 --> 00:18:07.874
We offer fractional COO and leadership coaching services that free up that brain of yours to focus on what's next.
00:18:08.364 --> 00:18:10.104
Learn more about us at SinclairVentures.
00:18:10.104 --> 00:18:10.453
com.
00:18:10.473 --> 00:18:11.094
Now back to it.
00:18:12.733 --> 00:18:13.544
And, and here's the deal.
00:18:13.574 --> 00:18:14.144
Think about it.
00:18:14.473 --> 00:18:20.054
The most credible person is not somebody who has a degree.
00:18:20.114 --> 00:18:22.243
It's the person who's done it, right?
00:18:22.243 --> 00:18:26.844
So one of the things we're thinking about is when we hire trainers, can we hire trainers who have an operational background?
00:18:27.503 --> 00:18:34.334
Because there's this thing in them that you sense, like you've done it, like you've been in a small business and run it day to day.
00:18:35.084 --> 00:18:37.844
There's a certain thing that I sense in you that I trust.
00:18:37.844 --> 00:18:40.243
And so with sales leaders, there's, we could talk about this all day.
00:18:40.453 --> 00:18:44.443
You want to find sales leaders who've kind of gotten beat up doing it.
00:18:44.473 --> 00:18:51.253
They don't have to have been the best salesperson, but they have so much more credibility if they can say, this happened to me.
00:18:51.314 --> 00:18:52.604
They don't need to have all the answers.
00:18:52.653 --> 00:18:54.334
there's a relatability they need.
00:18:54.753 --> 00:18:55.084
Yep.
00:18:55.114 --> 00:18:56.284
No, you gotta miss payroll.
00:18:56.284 --> 00:18:57.094
If you've been an entrepreneur.
00:18:57.784 --> 00:19:04.354
If you hadn't missed payroll, you've never been an entrepreneur, you know, and I think it's one of those things that you just can't teach that skill of experience.
00:19:05.013 --> 00:19:06.394
It, it's, it's a crucible, right?
00:19:06.394 --> 00:19:14.554
And I was telling people recently, like, you know, the entrepreneur lays awake at night and says, laser lies.
00:19:14.554 --> 00:19:15.394
I was an English major.
00:19:15.394 --> 00:19:15.634
I forget
00:19:15.695 --> 00:19:15.965
Sure.
00:19:15.996 --> 00:19:17.375
We'll go both, both lay and lie.
00:19:17.375 --> 00:19:17.645
Sure.
00:19:18.486 --> 00:19:21.884
They're in their bed wondering, am I gonna go bankrupt?
00:19:22.003 --> 00:19:22.993
No one else has that concern.
00:19:22.993 --> 00:19:23.804
Other people go get a job.
00:19:23.804 --> 00:19:26.743
The entrepreneur is sitting there going, is this gonna, I, it's funny.
00:19:26.835 --> 00:19:27.375
Quick story.
00:19:27.875 --> 00:19:28.894
I was at a Christmas party.
00:19:28.954 --> 00:19:35.315
And I was standing next to two entrepreneurs, one of whom they just sold their business for a billion dollars.
00:19:35.375 --> 00:19:37.894
Another one, the business does over a billion in sales.
00:19:38.404 --> 00:19:42.095
And they were talking, and this was fascinating.
00:19:42.575 --> 00:19:46.234
And I thought, oh my, I was like, got a front row seat to like just something insane.
00:19:47.075 --> 00:19:48.184
Great, great guys.
00:19:48.454 --> 00:19:49.625
Really successful.
00:19:49.654 --> 00:19:51.484
And they said, one of'em said together.
00:19:52.025 --> 00:19:55.984
When did you stop worrying that the business was going to make it?
00:19:56.045 --> 00:19:57.065
How big were you?
00:19:57.440 --> 00:19:57.769
Right.
00:19:58.519 --> 00:20:00.859
And I didn't know what he'd say.
00:20:01.069 --> 00:20:02.480
10 million, 20 million.
00:20:02.480 --> 00:20:09.950
One of'em said, you know, at 50 million I knew we could cut back and still survive.
00:20:10.339 --> 00:20:14.900
And I just thought, you know, the fear that an entrepreneur has like, oh, when I get here.
00:20:15.545 --> 00:20:17.825
It doesn't go away, it just changes.
00:20:17.825 --> 00:20:18.605
And you learn to live with it.
00:20:18.605 --> 00:20:20.525
And the other guy said, yeah, it was about the same for me.
00:20:20.525 --> 00:20:21.934
And then he said, then we got to a hundred million.
00:20:21.934 --> 00:20:23.105
And the game completely changed.
00:20:23.644 --> 00:20:25.714
And then we worried, is the market gonna shift?
00:20:25.744 --> 00:20:39.169
And for any entrepreneurs or CEOs listening to this, it's like you just kind of make peace that the challenge is gonna be there and you're the person called to go attack that challenge and you make peace and you just get really good at adjusting.
00:20:39.618 --> 00:20:42.318
And no one in the business is gonna feel that.
00:20:42.469 --> 00:20:43.398
But the owner.
00:20:44.028 --> 00:20:45.409
Yep, that's exactly right.
00:20:45.558 --> 00:20:47.778
I helped a client, who's become a close friend.
00:20:48.119 --> 00:20:52.508
Uh, he's actually an Aggie, who, uh, ran an incredible business.
00:20:53.032 --> 00:20:53.423
by the way.
00:20:53.423 --> 00:20:55.073
I love that you had to put that
00:20:55.432 --> 00:20:56.482
I had to do it for you.
00:20:56.482 --> 00:21:09.803
I know you're not an Aggie, I know where you lie, but he's an Aggie and he'll laugh when he hears this, but, I was fortunate to help him run his business for a year, year and a half, and he gets ready to exit and we're getting payroll by the dollars dollars clear in the bank.
00:21:10.192 --> 00:21:17.153
He sells the business the week before Thanksgiving turns over the operating account with$2,000 in it, literally.
00:21:17.678 --> 00:21:18.698
$2,000.
00:21:18.998 -->
00:21:25.238
And for him it was a challenge to see how he could run that down yet keep this thing, he's an engineer.
00:21:25.337 --> 00:21:35.877
so it was funny, but to your point is we were always a little concerned about whether or not, every two weeks, that number and as, and you grow yourself right outta business, you literally grow yourself outta cash.
00:21:36.087 --> 00:21:41.782
Contracts coming in, you're hiring, everything's going together except the cash balance, which is always a challenge.
00:21:42.478 --> 00:21:43.107
So good.
00:21:43.133 --> 00:21:53.817
all right, so I have an interesting question and I dealt with this in this mechanical contracting firm that I, uh, was involved in and former project manager and contracting spins out, starts his own mechanical firm.
00:21:54.086 --> 00:21:55.152
He is the face of the business.
00:21:55.842 --> 00:21:57.342
He is the head sales guy.
00:21:57.432 --> 00:22:04.461
He has all the relationships with every one of the, of the general contractors, and he's the one generating sales.
00:22:05.092 --> 00:22:24.051
We had to transition a sales director, a sales leader into the business, getting that visionary owner to stop focusing 110% of his time on revenue and pipeline, and allowing and trusting this person to then also take over pipeline is a terrible process for an operator to watch.
00:22:24.501 --> 00:22:32.932
Because every single time when you have a visionary owner running revenue, transitioning revenue over to someone else is fucking painful,
00:22:33.471 --> 00:22:38.031
Because you're afraid that they're not gonna care like you, they're not gonna be as hungry as you.
00:22:38.112 --> 00:22:41.652
You're thinking all the time, like, that lead costs me$500.
00:22:41.741 --> 00:22:43.211
Are they actually gonna follow up?
00:22:43.692 --> 00:22:48.491
Because the truth is, no one cares the way the owner does.
00:22:48.491 --> 00:22:49.842
No one understands the pain.
00:22:49.842 --> 00:22:52.942
And this is why, you know, you've helped people through sales.
00:22:53.481 --> 00:22:57.261
When they go to sell the business, they have so much invested.
00:22:57.261 --> 00:23:08.392
And it's why if you're approaching a CEO or an owner for equity, you need to understand, you are asking them, like you're saying, Hey, I think I should be the godfather of your child.
00:23:09.051 --> 00:23:09.321
Right?
00:23:09.321 --> 00:23:11.189
Or, or like, you should write me into the will.
00:23:11.189 --> 00:23:14.608
Like you don't know the suffering they went through.
00:23:14.608 --> 00:23:15.659
You just see it as equity.
00:23:16.019 --> 00:23:16.288
Right.
00:23:16.348 --> 00:23:16.588
And it's a
00:23:16.723 --> 00:23:16.993
to you.
00:23:16.993 --> 00:23:18.223
It's, It's, it's, yeah.
00:23:18.374 --> 00:23:19.663
No, that's so well said.
00:23:20.074 --> 00:23:35.903
I, uh, I was talking to a woman yesterday and she's through acquisition and just sheer force of will, she's gotten a company about 250 million, and I told her, I said, and she's, she, you know, she's like, she's still doing a lot of the sales, a lot of it, and they're trying to figure out the sales question, so they're talking to us and.
00:23:36.144 --> 00:23:40.463
One of the things I tell CEOs is, one, you need to understand sales.
00:23:40.463 --> 00:23:45.894
Whether you come from an engineering background, a product background, a finance background, you need to understand it.
00:23:45.894 --> 00:23:47.963
So you can call BS two.
00:23:48.233 --> 00:23:49.374
You need to be involved.
00:23:50.034 --> 00:23:54.054
Doesn't mean it's your all day, every day, but you need to be involved.
00:23:54.354 --> 00:24:02.064
Three, you definitely need to be brought in on deals to help bring a certain level of reassurance.
00:24:02.064 --> 00:24:03.203
So if it's a large deal.
00:24:03.459 --> 00:24:07.808
And your sales director, your head of sales, your CRO is not leveraging you.
00:24:08.169 --> 00:24:14.558
That person is an idiot, Look, there are exceptions, and when there's an exception, let's call it an exception.
00:24:15.159 --> 00:24:22.538
Like if Matt's my CEO and Matt's the name in this space and I don't know how to use him, we have a problem.
00:24:22.898 --> 00:24:26.769
It's either competence or trust, but I think a leader.
00:24:27.459 --> 00:24:29.739
On a situation like this, they've grown the business.
00:24:30.219 --> 00:24:37.894
They need to start handing things over in phases and seeing that this person can do it, and then they move to developing that leader.
00:24:39.038 --> 00:24:39.909
To grow the company.
00:24:39.939 --> 00:24:43.929
'cause who knows that sales leader may end up being the CEO one day or the president.
00:24:44.378 --> 00:24:48.979
But you have to kind of give it to'em like, Hey, let's talk about how you're managing pipeline.
00:24:49.128 --> 00:24:50.598
Let's talk about how you're running those reports.
00:24:50.648 --> 00:24:55.898
And you just slowly get that CEO down to 20% of their time is on sales and pipeline.
00:24:56.818 --> 00:25:01.233
God, everything I, my hair just sticks up on the back of my neck because I spend a lot of time.
00:25:02.003 --> 00:25:19.773
With sales leaders and just leaders in general, helping them understand the relationship that they have with this visionary that hired them and trusted them, and how our job is to deliver information up to that person so when they do roll over at night and have a question about something, A, they can access it, and B, we're comfortable and confident delivering.
00:25:20.209 --> 00:25:24.288
Like to your point earlier, if you're hiding something, you're immediately not the right person.
00:25:24.318 --> 00:25:25.219
Because guess what?
00:25:25.548 --> 00:25:33.769
That visionary, who figured out how to run a business to get it to five, 10, 50 million, they're gonna figure it out, and you're instantly gonna lose credibility.
00:25:34.038 --> 00:25:40.249
So I
spend a lot of time in that hiring and onboarding process, just setting expectations for what it looks like to work for an entrepreneur.
00:25:40.638 --> 00:25:51.078
And, and to your point earlier on equity, which I hadn't heard said so articulately the way you have, which is it means a thousand times more to them than it does to the person receiving it.
00:25:51.199 --> 00:25:58.858
And generally the person receiving it feels entitled to it, But, CRMs have become, my best friend and I continue to talk through these.
00:25:58.949 --> 00:26:05.528
Anybody who's managing projects or dealing with sales calls, the best sales leaders I know brag about their activity.
00:26:06.278 --> 00:26:19.269
They're so proud of the fact that they're moving the ball forward, that they're having the touches, they're setting their objectives for themselves, and they're following up on it to go through a pipeline review meeting and have all the information be in there.
00:26:19.449 --> 00:26:22.838
It's like I just kinda, I'm like, yes, we did it.
00:26:22.838 --> 00:26:23.558
We did it.
00:26:23.618 --> 00:26:25.028
All the answers are there.
00:26:25.449 --> 00:26:32.465
Well, and then where you want to take them next, and this is for, for anybody listening and for you is, alright, great.
00:26:32.496 --> 00:26:33.846
We have this amazing activity.
00:26:35.195 --> 00:26:39.006
It's not that we need more activity, like once it's dialed in, it's more of.
00:26:39.560 --> 00:26:41.691
Who are the right people to do the activity with?
00:26:42.171 --> 00:26:44.601
Can we get more of the right people?
00:26:45.020 --> 00:26:55.260
Because I was talking to, a guy on our team who's starting to handle sales, and I said, Hey, look, long term where we're gonna move is we need more of this type of prospect.
00:26:55.830 --> 00:26:57.181
That's gonna convert better.
00:26:57.300 --> 00:26:58.381
It's less effort.
00:26:58.480 --> 00:26:59.891
it's higher margin for us.
00:26:59.891 --> 00:27:01.030
It's a bigger deal size.
00:27:01.090 --> 00:27:01.810
They're happier.
00:27:01.810 --> 00:27:02.530
We're happier.
00:27:03.131 --> 00:27:06.161
So it's not, can you just put more in there?
00:27:06.221 --> 00:27:10.030
Because that costs money and it's time and it's really your attention and focus.
00:27:10.451 --> 00:27:17.681
But over time, can you start thinking, how do we over time start moving to more of just the right type of customer or prospect?
00:27:18.371 --> 00:27:22.780
Because that starts to make everything operationally and financially work even better.
00:27:23.201 --> 00:27:24.971
And then the salespeople work less, right?
00:27:24.971 --> 00:27:26.346
Because we're getting more of the right people.
00:27:27.171 --> 00:27:35.961
So in that individual contributor to, to, you know, transitioning to a team member, I'm just thinking, oh, I mean, this has been a common theme in the last three clients I've had.
00:27:36.240 --> 00:27:44.926
and I know there's no right answer, but I'm just trying to get an understanding of it and, and the two scenarios I'm mentioning, mechanical contracting firm and engineering software services firm.
00:27:45.237 --> 00:27:49.564
The visionary owner of the business is also was the sales leader.
00:27:49.653 --> 00:27:52.713
what's the right amount of engagement to have with that person?
00:27:52.894 --> 00:27:55.594
I mean, every owner of every business thinks about revenue.
00:27:56.013 --> 00:27:56.913
It's on their mind.
00:27:57.094 --> 00:28:02.733
How when you bring him in, like without losing credibility with your sales leader who's like, I don't need this guy.
00:28:02.733 --> 00:28:03.723
I can do it better than him.
00:28:03.723 --> 00:28:07.223
It's like, yeah, but you know, you wouldn't take Tom Brady off the field if he wasn't Tom
00:28:07.423 --> 00:28:07.693
Right.
00:28:08.294 --> 00:28:08.534
Yeah.
00:28:08.534 --> 00:28:12.770
So are you asking how much does the sales leader need to work with the owner or
00:28:12.861 --> 00:28:21.346
Right, and, it's a fine line because if that sales leader engages the entrepreneur too much, then all of a sudden that entrepreneur's run in the sales org and you don't need the sales leader.
00:28:21.401 --> 00:28:22.171
I think so.
00:28:22.171 --> 00:28:28.601
I was talking to a CEO and he really wanted, from his sales leader, he didn't come from a sales background, the CEO.
00:28:29.201 --> 00:28:32.621
And what he really wanted was the sales leader to be a true strategic advisor.
00:28:32.830 --> 00:28:37.631
Not all of them could do it, and you have to think about where you are by stage.
00:28:37.990 --> 00:28:39.730
So if you're a one to$5 million business.
00:28:40.661 --> 00:29:03.881
the odds that you're gonna hire someone in the role to do the work, to be a strategic advisor are low because sometimes a strategic advisor, they've played at a higher level in a different type of company, and they would really struggle at that smaller stage because they're having a do it all and maybe it's really ambiguous as they move up.
00:29:04.270 --> 00:29:14.151
That sales leader needs to, I tell people we're working on a recruiting gig for a client and they want somebody who's taken a company from 5 million to 75 million.
00:29:14.151 --> 00:29:20.691
And I said, look, you might get somebody who's gone from five 20 and then you may need somebody to go from 20 to 75.
00:29:20.691 --> 00:29:21.861
Just understand their different people.
00:29:21.980 --> 00:29:30.411
Now, early on, if we're talking small business to build a relationship, that sales leader and that CEO need to talk every day.
00:29:31.236 --> 00:29:33.336
And this is, I don't know how long that lasts.
00:29:33.336 --> 00:29:34.536
Three months, four months.
00:29:34.536 --> 00:29:36.365
And a lot of CEOs are just like so stressed.
00:29:36.365 --> 00:29:37.086
They're like, just take it.
00:29:37.836 --> 00:29:42.425
But it's about getting what's in their head
into systems and into process.
00:29:42.425 --> 00:29:46.175
And it shouldn't be too rigid early, then maybe it goes to three times a week.
00:29:46.776 --> 00:29:47.165
Right?
00:29:47.405 --> 00:29:52.536
But if you're growing and the sales leaders doing their job and they will grow.
00:29:53.405 --> 00:30:00.306
You're now gonna need to work with a CEO or the COO to start thinking about, alright, we need to think about delivery, we need to think about capacity.
00:30:00.786 --> 00:30:04.086
And so now we have a different set of issues and now the team's growing.
00:30:04.536 --> 00:30:07.086
So I don't think that those touch points matter.
00:30:07.086 --> 00:30:08.135
It's who's doing what.
00:30:08.955 --> 00:30:14.496
I don't wanna minimize, like, I'm not trying to say, Hey, you can become an owner who steps back, but eventually you gotta find a new CEO.
00:30:15.096 --> 00:30:18.306
But the CEO and the head of sales need to be talking regularly.
00:30:18.635 --> 00:30:20.586
What does a pipeline review meeting look like?
00:30:20.586 --> 00:30:22.115
What's a solid pipeline
00:30:22.326 --> 00:30:24.816
Oh, well there's what they look like and there's what they should look
00:30:24.891 --> 00:30:32.517
Well, that's what I'm asking because for me, you know, I've seen a hundred of'em and I've led 500 of them.
00:30:32.737 --> 00:30:34.051
what is the, what's a
00:30:34.162 --> 00:30:35.422
Lemme give you a handful of questions.
00:30:35.632 --> 00:30:36.652
Here's what it should look like.
00:30:37.041 --> 00:30:38.926
I don't like going through the CRM and doing it.
00:30:39.652 --> 00:30:40.521
I like this.
00:30:40.571 --> 00:30:49.842
I literally want a spreadsheet or a sheet filled out with here's what we expect to close in the next, you pick your timeline, two weeks for 30 days, right?
00:30:50.471 --> 00:30:52.122
The next 45 to 60 days.
00:30:52.122 --> 00:30:57.701
And then beyond that, and here's what I wanna know on every deal, I want just the headlines.
00:30:57.731 --> 00:31:05.471
Salespeople love to give you a good Jack Ryan story and that the twists and the terms and the history and how we got here and why, and it's like.
00:31:06.237 --> 00:31:08.277
And you're sitting there going, I just need this answer.
00:31:08.696 --> 00:31:09.386
A couple things.
00:31:09.507 --> 00:31:14.396
I think anybody from management should be able to attend a pipeline meeting, right?
00:31:14.517 --> 00:31:18.626
C-E-O-C-F-O, operations delivery people.
00:31:18.626 --> 00:31:20.666
And everybody needs to be able to ask questions.
00:31:20.997 --> 00:31:24.297
And some of the things I wanna know are, first question on this deal.
00:31:25.916 --> 00:31:28.826
Why are they going to choose us?
00:31:29.547 --> 00:31:32.936
They have to be able to answer that, You gotta say no, no, answer that question.
00:31:33.446 --> 00:31:39.086
Then you wanna know what's the highest level at which we are having a real conversation.
00:31:39.807 --> 00:31:44.366
I don't wanna know that the CEO was on an email.
00:31:44.487 --> 00:31:47.336
I wanna know where's the highest level we're having a conversation.
00:31:48.372 --> 00:31:50.652
What's the conversation we've had around money?
00:31:53.201 --> 00:31:57.521
And then I wanna know what is the clear next step that both sides have agreed on?
00:31:57.612 --> 00:32:06.961
Sending a proposal is not a next step we are going to have a proposal review and there'll be a decision at the end of that if you can do that one, you can get through your pipeline meeting really quick.
00:32:07.247 --> 00:32:07.997
Right.
00:32:08.176 --> 00:32:12.856
And what you're trying to just get at is like, Hey, you tell the salespeople we love you.
00:32:12.886 --> 00:32:14.267
You're great, you're working hard.
00:32:14.717 --> 00:32:15.856
I just don't need all this detail.
00:32:16.037 --> 00:32:20.626
I mean, I need like, give me the bottom line up front on these deals.
00:32:21.106 --> 00:32:25.247
And it takes about three or four times of doing this for them to learn how to do it.
00:32:25.297 --> 00:32:28.057
are you a fan of applying probability percentages?
00:32:28.896 --> 00:32:30.936
Yeah, but the way we do, it's different.
00:32:31.086 --> 00:32:37.146
So one, I want to, I wanna lay over two things, and you and I were talking about assessments before this got going.
00:32:37.507 --> 00:32:40.237
I don't think any one assessment is the, is the whole thing.
00:32:40.237 --> 00:32:41.317
I like to stack a couple.
00:32:42.517 --> 00:32:51.866
So one buy stage in the pipeline and that's a, in the sales process, That tells me something, if they've hit the milestones, not just'cause they had a meeting.
00:32:52.436 --> 00:32:55.436
The other thing that we do, and this is really important, is creating a scorecard.
00:32:55.856 --> 00:33:04.106
Now, the scorecard, and you'll like this is not it's, it's not necessarily about the sales pipeline or the process.
00:33:05.096 --> 00:33:08.426
Lemme say it's not about the process, it goes into the pipeline.
00:33:08.817 --> 00:33:13.467
It's based on objective criteria that are predictive of a win and dependent of the rep.
00:33:14.517 --> 00:33:14.936
So lemme give you
00:33:14.967 --> 00:33:15.987
Ah, hold on.
00:33:15.987 --> 00:33:16.541
Say that again.
00:33:17.332 --> 00:33:28.682
it's about identifying objective, not opinion, not feel, not, thinks, not seems, criteria, completely independent of the rep's work.
00:33:28.741 --> 00:33:30.211
So lemme give you an example.
00:33:30.622 --> 00:33:31.172
it might be.
00:33:32.241 --> 00:33:33.461
They've worked with us before.
00:33:34.102 --> 00:33:35.031
That's a yes or no.
00:33:35.031 --> 00:33:35.961
That's true or false.
00:33:36.291 --> 00:33:43.521
It might be they have a new CEO who needs to make a splash that's objective and that is predictive.
00:33:43.521 --> 00:33:52.011
Because if you start looking at deals, you start finding these things that tell
you when these five or six factors are true, we win.
00:33:52.461 --> 00:33:55.132
if three of'em are false, we lose.
00:33:55.672 --> 00:33:57.561
And so people will say, well, every deal's different.
00:33:57.561 --> 00:33:58.321
No, no, no, no, no.
00:33:58.432 --> 00:33:59.362
Across a large enough.
00:33:59.721 --> 00:34:01.162
Sample size, we get averages.
00:34:01.612 --> 00:34:01.942
yeah.
00:34:02.182 --> 00:34:05.321
So we look for things like, I'll give you an example.
00:34:05.476 --> 00:34:06.855
do, they use EOS.
00:34:06.855 --> 00:34:16.365
So if I am talking to a prospect who uses EOS, I haven't actually done the math on this, I have a much higher likelihood of one getting hired and two, having success.
00:34:16.936 --> 00:34:23.715
So you start putting grades on these things and now you're like, oh, these are the 18 deals we need to focus on.
00:34:23.715 --> 00:34:23.896
These
00:34:24.001 --> 00:34:29.206
so so moving from subjective to objective measurements and there's you one.
00:34:29.311 --> 00:34:31.849
And, it, and it's not about what the rep thinks.
00:34:31.849 --> 00:34:32.958
It's this is true,
00:34:33.333 --> 00:34:34.864
Yeah, it's a yes or no.
00:34:35.344 --> 00:34:43.143
Interesting Interesting because so much, and I know you've heard this and seen this, it's like, well, I feel like this is gonna that and feel and this and that.
00:34:43.143 --> 00:34:43.324
and I
00:34:43.639 --> 00:34:44.179
us.
00:34:44.284 --> 00:34:45.423
I like, and I had a beer with a
00:34:45.469 --> 00:34:46.248
No, no, no, It's a no.
00:34:46.248 --> 00:34:48.389
It's, Hey, they've worked with us before.
00:34:48.449 --> 00:34:49.528
They hire a consultant.
00:34:49.889 --> 00:34:54.719
They've done these things, and it's literally, everybody can look at it and say, all right, this is a deal.
00:34:54.809 --> 00:35:00.628
We might lose it, but our odds here are 30 times greater than this deal over here because.
00:35:01.048 --> 00:35:03.208
It's, you know, let's go back to my examples.
00:35:03.478 --> 00:35:05.329
Former, CEO's been there 20 years.
00:35:05.809 --> 00:35:08.418
they don't use EOS two, three other factors.
00:35:08.418 --> 00:35:16.139
It's like those people never, so in the next conversation, if you're gonna convince us this deal's gonna change, you need to go get hard proof from them that they are gonna buy from us.
00:35:16.139 --> 00:35:16.559
And why I,
00:35:16.824 --> 00:35:17.333
That's right.
00:35:17.333 --> 00:35:20.423
But take those subjective things to a measurable that says something.
00:35:20.514 --> 00:35:23.393
'cause otherwise it's all warm, fuzzy feelings.
00:35:23.554 --> 00:35:24.634
alright, last question.
00:35:24.664 --> 00:35:26.724
Tell me about, your ideal client type.
00:35:26.784 --> 00:35:29.634
Like, what is, what is, what does some of the people come to you like?
00:35:29.634 --> 00:35:30.324
What do they look like?
00:35:30.324 --> 00:35:30.384
I.
00:35:30.643 --> 00:35:41.414
Yeah, so I'm gonna give you two'cause nobody likes this, but, so on the frontline leadership side, this is typically a, a blue collar company that really cares about their people and they know that.
00:35:42.298 --> 00:35:52.199
Leadership affects quality, productivity, safety, that if you have turnover, there's a massive expense there and they're saying, Hey, we need to invest and like develop our people.
00:35:53.039 --> 00:36:01.748
On the other side, it's typically a CEO and I use this phrase mid-market, but there at like 15 20 million a year up to 200 to 500 million a year.
00:36:01.748 --> 00:36:02.768
And the CEO says.
00:36:03.469 --> 00:36:13.068
we need to move sales out of the nineties or early two thousands to the next level, and they're trying to figure out how do we make sure our forecast is believable?
00:36:13.278 --> 00:36:14.628
How do we develop our people?
00:36:14.688 --> 00:36:19.938
I can't completely rely on like two or three Supermen or Wonder Woman to solve my deal.
00:36:20.449 --> 00:36:24.619
What can we do in our market to make sales a competitive advantage?
00:36:24.679 --> 00:36:26.208
Those are the two folks we're talking to.
00:36:26.929 --> 00:36:29.728
And, um, one's on the sales side, one's on the leadership side.
00:36:29.759 --> 00:36:32.518
So Matt been so much fun, man.
00:36:32.744 --> 00:36:34.003
Always good to hear from you.
00:36:34.003 --> 00:36:35.492
And had never even thought about.
00:36:36.246 --> 00:36:50.670
turning a pipeline into more OB objectives because you always, it's always such an elusive conversation and that's field-based and I love the idea of finding indicators that may not directly indicate a yes, but they're facts that we can track and use our
00:36:50.835 --> 00:36:51.135
Yes.
00:36:51.721 --> 00:36:52.141
Awesome.
00:36:52.170 --> 00:36:53.521
Yeah, let's talk about it some other time.
00:36:53.610 --> 00:36:54.481
Adam, you're the man.
00:36:54.481 --> 00:36:55.260
I appreciate you, sir.
00:36:55.260 --> 00:36:57.391
Have a great afternoon and I'll talk to you soon.
00:36:58.021 --> 00:36:58.440
See buddy.
00:36:58.664 --> 00:37:00.733
Thank you for listening to The Scalability Code.
00:37:00.764 --> 00:37:06.253
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