We know value propositions are critical to our success with our customers. Without a differentiated value proposition, perhaps the only way we can win is on price. And we know that competing only on price is an unsustainable strategy.
We know that value propositions are not just an “end.” “Buy our product, you will see these results……”
We know that we have to create value in every interaction with the customer.
And that value accumulates, builds trust, and confidence. And doing this, consistently, through the relationship enables us to grow and expand the relationship with the customer. We know the importance of creating outstanding customer experiences throughout the relationship.
This is fundamental to our success with our customers, and in growing our businesses! No one would argue against the importance of creating and sustaining differentiated value with our customers.
But do we think about our value proposition for our people?
Just like our products, we compete with other organizations to attract the right/best people to our organizations. They can choose between many alternatives.
And we have to sustain that value creation, over time, creating great experiences to retain and grow our people.
Part of that value creation is attracting and engaging the right candidates, helping them choose us. Then we invest in training, tools, technologies, coaching (hopefully) and other things to keep them engaged and performing at the highest levels possible.
All of this takes time, but the accumulated investment creates greater returns for us. Our people build experience and expertise. They gain deeper knowledge in what it takes to engage customers, how to get things done with customers and within our organizations. And this enables them to continue to improve their performance.
We see survey after survey confirming the importance of creating strong value with our people. We know the costs of turnover, the costs of lack of engagement, the costs of employee dissatisfaction.
As I look at organizations we work with, the consistent high performance organizations have longer tenure’s, lower attrition. Recently, I was speaking to a friend, the CRO of a multi billion organization. The company had a track record of 135 quarters of growing profitability and 15.5% CAGR through that period. Stunning performance for any organizations. One of the secrets is their attrition. They had 2-3% voluntary/involuntary attrition. That, despite over 17 acquisitions during that period.
Consistent high performance with all our people is key to our continued growth and success.
Yet we seem to have lost sight of this. We seem to have lost sight of the billions in opportunity costs. Attrition is one of the most critical issues facing too many organizations. Current data for sellers and sales leaders shows average tenures of 11-15 months.
Just as our people are starting to ramp their performance, they leave. Leaders are limited in the change initiatives they can put in place, because they are not around long enough to make them succeed. And a new leader comes in, inflicting a different strategy and new change initiatives.
And we see performance plummeting. By whatever measure one looks at, we are failing!
We have failed to create workplaces where people feel heard and cared for. We have failed to create workplaces where people see they can learn, develop, grow and succeed. We have failed to create workplaces where people are proud to contribute and be a part of.
In the failure to create value for our people in those areas, the only thing left for us is to compete on price. But now it’s the best comp plan, the highest OTE. And we know that competing on price is an unsustainable strategy. If the only thing retaining these people is OTE, then anyone offering more becomes their new employer.
We struggle to succeed, scale, and drive profitable growth. We do everything we can to differentiate company and offerings to our customers. Imagine what might happen if we looked at our people and started thinking about the value we create with them!
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