Japan is a very hierarchical society. I am getting older, so I appreciate the respect for age and stage we can enjoy here. Back in my native Australia, older people are thought of having little of value to say or contribute. It is a youth culture Downunder and only the young have worth. “You old so and so, you don’t know anything” is reflective of the mood and thinking. As a training company in Japan, we have to be mindful of who we put in front of a class and in front of clients. If the participants are mainly male and older, then it is difficult to have a young female trainer or salesperson allocated to that company.

That young woman is going to be talented and effective as a trainer because our trainer development system is so demanding. She is also going to be highly skilled in sales, because we teach sales. It doesn’t matter. The HR people or the line manager complains, because the class members don’t feel young people have anything to teach them or are qualified to sell them anything.

I was reminded of this recently when trying to allocate trainers and salespeople for certain companies. We have a lot of internal trainers and salespeople who are under 35 and a few who are over 45 and so there is an imbalance. One of my senior guys has suddenly quit. He was performing both functions, so it is a double loss. As our older team members age, they have seen their kids leave the home and then have their aged parents to worry about. The life of a small business owner is always like this. There is never an equilibrium or a period of extended stability with staffing. Just when you think you have it working like a smoothly oiled machine, in goes a wrench and the whole thing comes to a shuddering halt.

The transfer of responsibilities for clients between staff is not that easy. It goes both directions too. We have staff who build strong personal relationships with counterparties and then their interlocutor is moved to another function and a replacement appears. Often, this can mean the end of the relationship with that firm, as the new broom have their preferred suppliers and you are not one of them.

You also imagine that within the client big firms there is a seamless transfer between their staff for that part of the business. Not so. I was dealing with a big multi-national and to my amazement the new person had absolutely no knowledge of what we had been doing for them in terms of training. Obviously there was no hand over of the tasks and things have been going less smoothly as a result.

Normally in Japan, we try to recruit younger people, however we have to also be flexible and look to hire older staff, the venerable grey hairs who can gain the respect of the clients. Trying to maintain the right balance between the generations is not that easy. Also, anytime we have to replace someone as a salesperson, then we can draw a big red line diagonally across each month of the calendar for the next 18 months. They will not be particularly productive for that period of time. Learning the business, really understanding the products and our methodology takes a lot of time. They also have to build their own client base and that doesn’t happen in a hurry.

It takes about the same period of time to see someone make their way through the Dale Carnegie labyrinth of trainer certification. It is an arduous, challenging process and not everyone is suited to become a trainer. The skills for selling and training have similarities but there is also that X Factor of personality needed to become accepted by clients.

The infamous and elusive Plan B needs to be dusted off and then we can move into action. The problem is we don’t spend any time thinking about negative circumstances that require a Plan B. Also, the mix of possibilities across the range of staff is so complex, how can you effectively anticipate what happens next. Nevertheless, I quickly realised I need multiple Plan Bs ready to go, in case of changes in the team complexion. I usually spend a minus amount of time thinking about those myriad possibilities, because I am too busy doing other things in the business.

I will need to do better in this regard and have an update process scheduled throughout the year, rather than leaving it to surprise announcements of staff departure, to stir me to action. How about your case? How are your multiple Plan B development scenarios going?

When we read commentary about how we should be recruiting A Players to boost our firm’s performance, this is a mirage for most of us running smaller sized companies. If you are the size of a Google or a Facebook, with massively deep pockets, then having A Players everywhere is no issue. The reality is A Players cost a bomb and so most of us can’t afford that type of talent luxury. Instead we have to cut our cloth to suit our budgets. We hire C Players and then we try to turn them into B Players. Why not turn these B Players into A players?

This is a contradiction isn’t it, because we always striving and thrusting for the best possible results. If we invest and take a B Player to A Player status, there is a very strong likelihood someone else will admire our handiwork and poach them from us. We have all heard that truism about “what if I develop my people and they leave”, countered with “what if we don’t invest in them and they stay?’. This is correct up to the point of your cash flow reserves. We are not talking about having useless people staying on, sucking up our cash resources.

B Players are very capable and are worth investing in to become even more capable. The additional investment to turn them into A players though, if they have that capability in the first place, may be a case of over investment. Having large portions of your revenue centered around a very small number of clients is recognized as a very dangerous position to be in. In the same way, having one or two people accounting for a disproportionate amount of firm income or expertise is also dangerous.

When the top performers leave it can be very disruptive. Most bosses do not sufficiently explain their departure to the remaining staff. In this vacuum, the other members of the team worry about what the A Players know that they don’t. Is the firm going down and are those most capable of getting another job jumping ship? Will an exodus of A Players introduce fragility into the business? The loss of the contribution of A Players is bad enough, but their departure can be interpreted by staff in ways bosses would never imagine. That is why no matter who leaves, leaders always need to carefully reassure everyone else, that the firm is fine and this was a personal choice by one individual. Don’t allow rumours, imaginings and guesswork to creep into the equation. We need to own the narrative every time.

I have a very carefully designed spreadsheet which allows me to track my sales team’s performance. It includes all of their costs and related costs, to give me a clear picture of what each sales person’s contribution to the company actually is. This allows me to see the amount of leverage they represent. I want to know what is the multiple of their revenue return against their total cost. The bigger that multiple the better, up to a point.

If the multiple is fantastic, but the overall income volume generated is too low, then we can go broke in short order. So there has to be a balance between raw volume of funds coming in and the effectiveness of return on their efforts. This is where B Players can excel. They produce multiples which work for the business and generate a positive profit result. The A Players can have bigger numbers, but their multiples may not be that outstanding. They also point to their big numbers and say rude things like “I want more money”. That pay rise to keep them will hammer the attractiveness of their multiple pretty quickly.

A Players are like an oasis in the desert. The vision through the heat haze can lure small business owners to invest, when that may not be the best idea. It can be better, over time, to build the ranks of the B players from the within the ranks of the C Players. This is the classis bootstrap approach to building companies. We all do it at the beginning don’t we, but then with some success comes hubris and we start to imagine we can extrapolate our genius. Before you know it, the multiples have swung in the wrong direction. For this reason, it is wise to track the multiples down to the last cent and determine to keep on tracking.

When you are small, love your B Players and hold them close. Invest in them, but don’t over invest. Where is that elusive line of demarcation? Experience watching newly minted A Players, who were once your B Players, heading for the exits and more money, helps to establish it in your mind. Monitoring the multiple components will create an algorithm indicating how much is enough and how much is too much. We won’t always get it right, but we can get pretty close if we pay careful attention to the issue. Remember this is art, but with big servings of science tossed into the mix.

If we try to hide the bad news for the buyer will that work? How long with it work for? Bernie Madoff died in prison, his wife left in a perilous state, one son dead from suicide and the other from cancer. I call that family devastation. He got away with his lies and cheating for quite a while. He offered modest, but steady returns. He told people he had no capacity to take their money, then rang them back at a later stage to say there was an opening. They were grateful for the chance to give him their money. The 2008 recession showed who was “skinny dipping” in the markets, as Warren Buffet termed it and Bernie could no longer sustain the fraud.

If we are loose with the facts and the truth with our buyers, how will that go toward fostering the re-order culture we want to create? The usual ploy is to downplay the costs by offering the best case example and not offering the most realistic case. I was reminded of this the other day, while watching a video from the President of this particular organisation. He wanted more money, a lot more money for this project. Let’s park the fact he was a hopeless advocate for his case, bumbling his way through his pitch. The examples he offered were very carefully culled to make the pain look miniscule. The obvious problem with that though was the vast majority of the stakeholders did not fit into that minimum damage category.

He was trying to avoid the pain, but that came across as dodgy and duplicitous. We have to reach for our financial calculators and work out the damage for ourselves and we are left to our own conclusions. It would have been much better to meet the elephant in the room head on and explain why the bigger number was a good decision. That way the seller controls the narrative, not the buyer. Call out the number, then justify the living daylights out of it. Talk about the long term benefits and the opportunity costs if we take no action now. Pile on the value of the proposition in the context of the number.

Trying to talk about the value proposition unrelated to the number doesn't fly. We need to connect them together as we explain the value. We unveil the ugly number but wrap the pain up in the value to come, to the glorious future, to the sunny uplands, the better days hereafter. Context is everything here. Our hero didn't do that and I believe he missed a great opportunity to get people to back his proposal.

When we are selling there is a number attached to the service or good. Actual tangible objects are easier to understand from a pricing point of view. Services though are nebulous. I was selling some training to a major corporation and the people I was dealing with were HR folk located outside Japan. If you live here, you understand the cost of living and all the relativities which apply around pricing. If you are in Hong Kong or Singapore you don’t. Living in these low tax, low cost environments makes Japan’s numbers look stratospheric.

They told me our pricing was much higher than this Hong Kong located from who delivered for them in English speaking countries in Asia. I asked them why they didn’t use them for Japan. Of course, they didn't know Japan, had no capacity to deliver here in cultural and linguistic contexts, so that is why they were talking to me. Yet the expectation was my pricing would fit in with this other vendor, based in Hong Kong. Who were these people? I checked them out and they are nobodies. They are not global, they don’t have 109 years of credibility or 60 years on the ground in Japan.

In the end, I had to do a demonstration of what we would deliver. It blew them away because the value proposition was so much greater than the other firm. Now the cost, the higher price, the bigger ask, that larger number made sense. I didn't fold on the price for two simple reasons. I know our value and I know what companies here will pay for the value we generate. Yes, it is Covid and yes it is perilous for training companies at the moment, but you have to believe in your value based pricing and you have to be prepared to fire the client.

Don’t run away from the hard conversations. Instead find ways to demonstrate and show your value. Keep honing your persuasion skills to sustain the narrative about why they should buy from you and buy from you now and keep buying from you.

If we try to hide the bad news for the buyer will that work? How long with it work for? Bernie Madoff died in prison, his wife left in a perilous state, one son dead from suicide and the other from cancer. I call that family devastation. He got away with his lies and cheating for quite a while. He offered modest, but steady returns. He told people he had no capacity to take their money, then rang them back at a later stage to say there was an opening. They were grateful for the chance to give him their money. The 2008 recession showed who was “skinny dipping” in the markets, as Warren Buffet termed it and Bernie could no longer sustain the fraud.

If we are loose with the facts and the truth with our buyers, how will that go toward fostering the re-order culture we want to create? The usual ploy is to downplay the costs by offering the best case example and not offering the most realistic case. I was reminded of this the other day, while watching a video from the President of this particular organisation. He wanted more money, a lot more money for this project. Let’s park the fact he was a hopeless advocate for his case, bumbling his way through his pitch. The examples he offered were very carefully culled to make the pain look miniscule. The obvious problem with that though was the vast majority of the stakeholders did not fit into that minimum damage category.

He was trying to avoid the pain, but that came across as dodgy and duplicitous. We have to reach for our financial calculators and work out the damage for ourselves and we are left to our own conclusions. It would have been much better to meet the elephant in the room head on and explain why the bigger number was a good decision. That way the seller controls the narrative, not the buyer. Call out the number, then justify the living daylights out of it. Talk about the long term benefits and the opportunity costs if we take no action now. Pile on the value of the proposition in the context of the number.

Trying to talk about the value proposition unrelated to the number doesn't fly. We need to connect them together as we explain the value. We unveil the ugly number but wrap the pain up in the value to come, to the glorious future, to the sunny uplands, the better days hereafter. Context is everything here. Our hero didn't do that and I believe he missed a great opportunity to get people to back his proposal.

When we are selling there is a number attached to the service or good. Actual tangible objects are easier to understand from a pricing point of view. Services though are nebulous. I was selling some training to a major corporation and the people I was dealing with were HR folk located outside Japan. If you live here, you understand the cost of living and all the relativities which apply around pricing. If you are in Hong Kong or Singapore you don’t. Living in these low tax, low cost environments makes Japan’s numbers look stratospheric.

They told me our pricing was much higher than this Hong Kong located from who delivered for them in English speaking countries in Asia. I asked them why they didn’t use them for Japan. Of course, they didn't know Japan, had no capacity to deliver here in cultural and linguistic contexts, so that is why they were talking to me. Yet the expectation was my pricing would fit in with this other vendor, based in Hong Kong. Who were these people? I checked them out and they are nobodies. They are not global, they don’t have 109 years of credibility or 60 years on the ground in Japan.

In the end, I had to do a demonstration of what we would deliver. It blew them away because the value proposition was so much greater than the other firm. Now the cost, the higher price, the bigger ask, that larger number made sense. I didn't fold on the price for two simple reasons. I know our value and I know what companies here will pay for the value we generate. Yes, it is Covid and yes it is perilous for training companies at the moment, but you have to believe in your value based pricing and you have to be prepared to fire the client.

Don’t run away from the hard conversations. Instead find ways to demonstrate and show your value. Keep honing your persuasion skills to sustain the narrative about why they should buy from you and buy from you now and keep buying from you.

Confidence sells. We all know this instinctively. If we meet a salesperson who seems doubtful about their solution or unconvinced it is the right thing for us, then we won’t buy from them. The flip side is the con man. They are brimming with brio, oozing charm and pouring on the surety. They are crooks and we can fall for their shtick, because we buy their confidence. They are usually highly skilled communicators as well, so the combo of massive confidence paired with fluency overwhelms us and we buy. We soon regret being conned but we are more cautious thereafter every time we meet a salesperson. By the way, there is a good chance we are that next salesperson.

So how do we navigate the rapids and the rocks here of coming across as confident and being skilful in describing our solution, without tripping the client’s internal con man alarm system”? Ultimately it comes down to your kokorogamae. This Japanese compound word can be translated as our “true intention”. What are we on about with this sales lark? Who are we showing up for – ourselves or the client’s best interests?

With con men it is always their self interest. They keep moving like a shark, swimming around constantly in motion, always looking for something to devour. If we sit down and examine ourselves we can make a decision. Are we in sales as a profession – yes or no? If the answer is no, then please get out of sales immediately. Go. Do something else, because the rest of us, who want to be professional, don’t want you polluting our waters. If the answer is “yes”, then examine what does “professional” actually mean to you?

We can get caught up in the finer points of sales technique, but what I am asking is please look at sales and ask what is my true intention here? If it is to serve the best interests of the buyer then we are getting on the right track. If the answer included to serve the buyer forever and to be aiming for the reorder, rather than the sale, then go to the top of the class. That mentality is the antithesis of the con man who knows they have to leave town after the sale, because they have cheated the buyer and can’t expect any further business – ever.

There is a successful businessman I know, who told me a story about his early days in sales. He sold an inferior product and the client would only come to realise that reality following the purchase, when the product itself was consumed. He had to have a big territory from his company, because he could never go back to a town he had sold into. I had liked him but after hearing that story I liked him a lot less. He knew the product was inferior and was not matching the claims he was making. He was confident and fluent. In other words, he was a con man. His kokorogamae was incorrect and I am wary of him because I am not sure about his mentality in business today. Maybe he has reformed, but I am in no hurry to find out at the cost of my own personal business.

If our true intention is correct, then being confident and fluent come into their own. The way we think about the business changes. We see the lifetime value of the business rather than a transaction. That means the effort we make to serve the client changes. The follow up is done in a different and superior way. The client feels our commitment to their success. We obviously ask particular questions which would only be of interest to someone who was committed to serving the buyer. We are thinking as if this was our business and we are looking for ways to build it higher. The questions around that aim are a lot different to discussions of the features of the widget and the needed logistics to supply it. We are thinking and talking beyond the initial sale.

So ask yourself – what is my kokorogamae? What types of questions am I asking – are they transactional or long term oriented? Am I communicating well enough my commitment to help this buyer succeed or am I only operating at a very superficial, order taker level? Am I thinking about potential buyer problems down the track and how to fix them? Have I wrapped my confidence up in truth? Record your presentation and have a good listen to it. Are you coming across as (A) a very basic provider of transactional solutions (B) a con man or (C) a true sales professional who has sorted out their kokorogamae? If the answer wasn’t (C) then there is a lot of work to be done on you by you!

Buying from people we like and trust makes a lot of sense. Sometimes we have no choice and will hold our nose and buy from people we don’t like. Buying anything from people we don’t trust is truly desperate. So when we flip the switch and we become the seller to the buyer, how can we pass the smell and desperation tests? How do you establish trust and likeability when you are on a virtual call with a new potential client? What do you do about those new buyers who won’t even turn on their camera during the call?

The best defense against buyer scepticism is to be professional. You will be well presented whether face to face or online. In the latter case, you will have a background that advertises your firm and hides the background of your home, because this reduces the distraction factor. You will use gestures which are in front of your body, so that your arms are not suddenly cut off by the fake background. You will be sitting up straight in your chair and looking straight at the lens on the computer camera, which you have cleverly arranged to be at eye level.

In a face to face meeting, we are communicating quite a lot through our body language, so we are going to be sending out messages of confidence, credibility and trustworthiness. We are going to be well dressed for all meetings regardless of the medium. That means put on your business battle dress, which means a jacket and tie for men in the online meeting as well, so that we are not looking too casual.

We are going to be precise and clear in our language, with no filler words like ums and ahs diluting the message and annoying the buyer. Online, the body language factor can be tricky, especially if we are showing any documents or slides on screen. In these cases, we are reduced to a tiny box on screen and so is the client. The lesson here is to not show too much information on screen such that the size of the faces is maximized, so that we can each read as much body language information as possible.

What about those Japanese clients who only turn on the sound? We are now at the equivalent of a phone call, except that they can see you and you cannot see them. We have a couple of choices. I don’t match them with turning my camera off to even out the stakes. I still want to exude credibility and the camera gives me more scope to do that, than the audio only.

We have to grab the opportunity of the sales call and we, not the buyer, have to run the meeting. Right from the start, I ask them to turn their camera on. This is difficult for our Japanese staff to do, because for them the buyer is God. If the omnipresent deity doesn’t want to reveal themselves to mere mortals, then what right has the lowly supplicant salesperson to demand that of God?

Nevertheless, we have to train them on how to do that. We need to say to the buyer, “Thank you for your time today for this meeting, I appreciate it given I am sure you are very busy. Over the last few years, I have done a lot of these meetings online and they always seem to be more productive for both sides, when we both turn the cameras on, so let’s both turn our cameras on today for this brief meeting”. Now what comes next is the key component. Shut up and do not say one word, no matter how much awkward painful silence ensues. Sit there and wait for them.

Isn’t this risky? In my view, if they won’t even come on camera, how successful do you imagine you are going to be selling them something? By definition they are not a buyer and you are better to go find someone who can turn their camera on and can buy. What happens if they say they prefer not to turn their camera on? Mentally reduce the prospects of a subsequent positive outcome to a substantial negative integer and carry on as best you can. A non-buyer is a non-buyer, online or in person but in sales you often have to grit your teeth and just plough on.

All very depressing isn’t it. To just to end on a real downer, let me relate a recent story from the sales trenches here in Tokyo. My salesguy cold calls a company here. The person answering the phone says, “we do not deal with people we are not already dealing with”. Being the supreme optimist from sunny Australia, I encourage him to go once more into the breach and call again at a different time. Potentially he might encounter a different person and hopefully receive a better reception. He did just that and he got exactly the same response from another member of staff, “we do not deal with people we are not already dealing with”. As we say here, “welcome to Japan!”.