Five Tips to Create a Killer Sales Pipeline

A quick overview of setting up a layered pipeline.

By Adam R. Miller with Insight from Kimberly D. Miller and Tim Supranowitz

Building a pipeline, or forecasting, should not be used to calculate your annual commission check instead it should be a guide to dictate activity. It’s is about being prepared, or proactive, and not reactive to unforeseen variables that could drastically change your sales performance. Have you ever seen a Navy Seal prepare for deployment? When they are packing, they are bringing items to cover them in any situation. Long range, short range and hand to hand weaponry along with explosives and masking agents like camouflage and smoke. Developing your pipeline, while way less intense or life-threatening, should take the same approach. Here are five things you should consider when reviewing your pipeline.

Short leads - High closing rate immediate sales and leads that are driven by baseline activity like cold calling.

Referral sources. Weekly activity should include touch on at least two of your best referral sources. If you have not identified what resources are useful for referrals that should be a top priority. (Kimberly) Knowing how to ask for referrals. Ask for specific referrals, a particular need or industry. Example, don't ask for a restaurant suggestion ask for the best Italian place in Chicago.

Make sure you are tracking your leads thoroughly. The noes and maybes of today are a future yes, but only if you know who to follow up with. 

Kimberly D. Miller

Existing client base. Every industry is a little different, but all sales executives have a base of past clients. You should touch on them for repeat business (did they open a second location), upsell or a referral. 

Industry partners. Developing a list of other vendors or professionals that operate within your same market is always advantageous. Maybe a supplier has the insight into a company expanding or hiring. A catch-up phone call or a cup of coffee will often time offer insight you were not expecting. (Kimberly) Within the industry don’t ask for referrals, ask for introductions. By researching your partners, think LinkedIn connections, you can make a list of potential people you would like to meet. Introductions are far more friendly than asking for leads. 

Networking and long leads. Networking events and conferences are not for everyone. They tend to be very B2B heavy, but are about developing relationships and resources. I don't suggest relying on these types of events to drive immediate action but could provide good connections and insight in industry trends and future lead mining.

Bonus tip. Gifts and thank you cards. Do not underestimate sending out holiday cards or a quick gift just to say hello. Often we get so caught up in the next sale we forget to continue to build a brand and personal relationships with past clients. (Kimberly) I would send a scratch-off ticket… "thanks a million." Clients would end up following up to thank me!

Kimberly’s Tips

Make sure you are tracking your leads thoroughly. The noes and maybes of today are a future yes, but only if you know who to follow up with. 

A customer's inconveniences of today become a catalyst for change tomorrow. Understanding what those catalysts will help you develop your voice and a list of targets. That might be a change in regulation, healthcare requirements, building code, etc. Know the outside influencers of your industry to be on the watch for the upcoming inconveniences. We saw this in a big way in Paychex with changes to overtime pay and tracking hours. It was a massive opportunity for us to reach out to our clients to make sure they knew the changes and verify they complied.

Tim’s Tips

One thing I tell every person on my team is once you know how to create robust pipeline you need to know how to manage it. What I mean by this is you need to have 100 people you can always call for an appointment. From there, maintaining it by prospective revenue associated with each prospect. And then adding or subtracting as needed but to still have 100 people to call. In your industry, maybe 100 names are too much but decide what’s a fair number of prospects to target.

Also, another area to add to your pipeline is people who looked at your service before but ended up saying no. They showed interest at one point; maybe they would be interested again. Half the time people say no because the timing isn’t right.

Happiness is something you need to become successful, not the other way around.

"It turns out that our brains are literally hardwired to perform at their best not when they are negative or even neutral, but when they are positive." - Shawn Achor, The Happiness Advantage

You are lying about being happy. We do it every day when someone asks how you are doing, or how your job is, or how the family is doing. “It’s great, thanks for asking.” Chances are you have already done it at least once today. I am not advocating diving into a monologue about why you are not happy when someone asks politely but asking that you do something to BECOME happy.  

Tony Robbins talks about your “state” and how we feel right now mentally and emotionally will determine how we look at life. If you are unhappy when you kids walk into the room, you might get short with them opposed to seeing love coming right at you.   

If you have ever read Mindset by Carol Dweck, you will see this same emphasis on positivity as she talks about “Growth Mindset.” The principle is that your outcomes in life are not fixed, but you always can grow. And “the view you adopt for yourself profoundly affects the way you lead your life.” With the growth mindset, you believe the hand you are dealt in life is the STARTING point for development.  

So the next time someone asks you how you are doing and you have to lie to say something positive take that as a starting point to develop happiness. It might not be there today, but that is ok if your mindset and your state are focused on developing into something better.

HAPPINESS is not the belief that we don’t need to change; it is the realization that we can! - Shawn Achor

Start Ups - The Birth of Bad Business

What is the difference between a small business and a start up?  Ok, I have the answer but this is one of those annoying rhetorical questions that a teacher asks to the class as the students stare in fear of saying the wrong answer.  Go to the most sophomoric way to define anything, the dictionary.  The start up is literally defined as ‘a new business’ and the small business “independent business...that is not dominant in its field…”.  In social context I think people generally see the small business as the coffee shop on the corner and the start up being a bunch of computer geeks in a garage.  The latter aiming towards some rapid ascension to stardom and unknown riches while the coffee shop lingers in profitable mediocrity.  In fact, 66% of small business will survive their first two years while their start up brethren have a 90% failure rate.  So then why is it that you hear about start ups being acquired for millions of dollars yet the coffee shop languishes in no man's land?  The simple answer is upside (and fame).  Tumblr, Twitter, Snapchat, Instagram, Shazam all have a much higher upside (potential profitability) than even the best coffee shop.  But you know what they don't actually have?  Profits.  Thats right, these million dollar organizations and acquisitions are not particularly profitable (or not at all) and show no clear path towards consistently being in the green, the fundamental quality any business is trying to achieve...at least I thought so.

So let’s bring up “the kids”.  Video games set a bad example for “the kids”.  Eating fast food is a bad habit for “the kids”.  Defining business based on some empirical value, and not profits, is also bad for “the kids”.  I never had a lemonade stand as a kid, I hated waiting for clients, but I did sell candy in middle school.  Turns out that is a punishable offense and I almost got into a lot of trouble as a teacher thought I was a drug dealer.  The sudden spotlight showed the model was a success along with one crucial element...I made money.  Mom and dad didn't buy my supplies, I was on my own.   When it came time to diversify my offerings I had to save money to buy more candy.  When distribution became an issue I had to recruit friends in other classes.  Upon discovering my profits were literally being eaten I had to pivot my model to ensure good returns.  (really good thing this wasn't drugs).  But you know what my first business never had?  Funding.  There was no candy VC.  No money from the Wrigley family to start a middle school distribution center.  I had to make money to spend money.  The baseline of most successful businesses.  

In the startup world this is not the case.  Businesses are funded with a fuzzy vision to profitability, no established business plan or growth strategy, no market research validating the model.  Now, I am not advocating that startups should not be funded or suggesting that businesses that are some what profitable will always be better bets.  But as we watch companies like WeWork, a $5 billion dollar (valued) organization, fall victim to the most basic business/ mathematics principle; if you put out more than you will take in you will net negative.  That is bad business, but the blinding lights of potential unicorn status can be enough to muddy the financial waters.  Yes, I am making some giant generalizations and there are bounties of smart VCs that a vetting their investments...bets...to ensure success...better odds.  But, the 90% suggests that the house usually wins so be careful how many trips you make back to the ATM.

Co-Branding; The Non Existent Line Between Work and Home

It’s my work anniversary this week, celebrating six years at Chicago Roof Deck and Garden.  The growth of the organization over the last six years has been tremendous moving from a role as a designer to an owner and design principal.  What has been the most impactful over that time is how much the brand of CRD has permeated my life and frankly how much my life and personality have been layered...or forced, ha, upon the company’s culture.  As one example, I became a father at home and have hired a young design team that I often times see as additional children.  Not that they need to be supervised like kids, but rather the paternal instinct is hard to break.  After six years it has become difficult to separate the work life from the personal life.  And so it goes the success or failure of one is reflected in the other.  So it becomes ever more crucial to be able to do personal things at work and work related things while out of the office.  One can not exist without the other.  

When looking at mainstream examples of this one would make a list that starts with Steve Jobs, Richard Branson, and Mark Zuckerberg.  Branson doesn't have an “outfit” but it is is hard to imagine Virgin without his white beard, Apple without the black turtleneck and grey shirt wearing Zuck.  The quintessential visible CEO, the face of an organization whose personal and corporate brand have no separation.  Im sure within the inner circle of the other top 100 CEOs in the U.S. you would find the same story, but with much less glam.  Forbes listed SAP, McKinsey & Co., Ernst & Young and Northwestern Mutual among the organizations with the most liked CEOs.  Steep drop in the “cool factor”.  All of these I would venture to guess that mainstream america finds it “acceptable” that these people are so intertwined within their organizations, but why does it seem so different when the ‘little guys’, the small business owners or just the sales rep blend their personal and professional lives so much?  Certainly the cool factor plays into what brands we find acceptable from a self promotional aspect, but when your friend jumps into…”I run a full service augmented platform for…” we almost can not stop our eyes from rolling.  Branson specifically has risen in popularity with the ‘love what you do and you’ll never work a day…’ platform.  You can’t find any story about or by him without the underlying ideologies of Virgin.  

Maybe we find this acceptable because we wanted to talk to Jobs about the next phone, or Zuck about Facebook live video and have little interest in hearing our neighbor talk about new designs of asphalt roofing shingles.  Personally, I want to be at an organization that so fluidly mirrors the things I find important.  I want to do something everyday that I am excited about telling other people about on the weekends and after hours.  We love hiring people that see a fuzzy line between work and home which translates into this co-branding effect.  Our office and personal instagram feeds are filled with people enjoying outdoor spaces both of client’s homes and on the go.  Our team loves reading about and visiting the latest roof decks in Chicago...because who doesn't like to drink outside?  Maybe again we are lucky that we get to do or talk about is something that is fun and has broad appeal (no asphalt shingles here) and most people seem interested in learning more.  So, I will just go on pretending that I am really interesting at dinner parties, and at the office, and promote my personal accomplishments along with the company’s team successes as one in the same.  We will push our co workers to have a voice that is powerful promotional tool for them and their family’s success and the organization’s.

Evolution is easier than Revolution

Business plans and strategy plans are great.  They can serve as a road map to the growth of a business and often time can help steer people away from making decisions that don't fit into the core of their model.  The problem with plans are they are often too rigid and they are often idealistic.  Planning for your business to be a unicorn is great for moral and ego stroking, but it is as realistic as predicting lighting strikes.  A good plan should outline short achievable goals that don't require giant disruptive shifts in operations and market presence.  The term minimally viable product (MVP) is the catchy phrase for startups launching new products in order to beta and review market reaction to a new product.  The same principle can be applied to a growing business, already viable business.  Yes, this is contingent on having a business that has already seen some success and is looking to expand, not a brand new business.  Dust off those 7th grade science books and you will read about this same basic principle known as the scientific method.  Variables and controls.  Keep the foundational items as your constants while you make small and controlled (and measurable) changes.  Baby steps.  We are making a big assumption here that you are tracking and measuring where and how you develop new business.  Try adding a service or product to an existing offering to gauge customer adoption.  If your wine bar doesn't offer food you don't have to build a gourmet kitchen, try offering light snacks or apps before ordering a year’s supply of steaks.  These small adjustments are not only easier for consumers to adopt but for staff as well.  Remember that staff adoption is almost as important as consumer adoption when you are asking people to take on additional workload and responsibilities without necessarily changing compensation.  Evolution is a process that takes time, but if done correctly can lead to healthy sustainable changes.  

The best way to get a promotion, hire your replacement.

Every leader and organization thinks about what will happen when great talent leaves the company.  Some chose to do something about it by developing a strong culture to retain people and some have open door policies to encourage people to talk about career goals in order to create specific jobs.  These both come back to a basic concern of losing talent and the time, money and energy it takes to replace good talent.  Ok, so what does this have to do with a promotion?  I am using this as a foundation to understanding the mindset of the organization and talent relationship.  How this directly relates to you in a super simple statement...your boss is terrified of losing you and having to replace your skill sets on their team.  Now really great leaders know this is a foregone conclusion that the chicks will eventually leave the nest and they need to prepare, but let's face it most bosses are not great leaders.  They have come to rely on your performance in some way to make their life and job easier and secretly would love to keep you there forever.  Here is the tricky part.  Identify the things that you need to improve upon to get a promotion at the same time you are helping someone fill in for the things you would no longer be responsible for completing.  The idea is to bridge the transition gap for your replacement so performance for the team/ organization does not suffer in your move.  Someone always has to file reports, make coffee, and clean the toilets.  

I did leave one minor but very important part out of this process.  Really the cornerstone to the philosophy and theory behind a promotion...you need to be good at your job.  If you haven't mastered your current position I would highly recommend against doing this as you soon might find that management likes your replacement more than you and the promotion is substituted for a pink slip.  

Last important part to this process.  This should be an open dialog with both your boss and the person that you are training.  All parties should be on board with the process as this should add value to each individual as well as the organization.  Set goals and milestones for what each person needs to learn and master to get to that next step in their career.  The transparency will be surprisingly refreshing and energizing.  Keep other staff members in the loop of the tasks that each individual is adding to their plate so they can adjust accordingly and you can avoid the snarky “I don't do that anymore, ask so and so to do that”.  

Just remember, in order to climb the ladder someone must hold the bottom.  

Why your next CEO should be a designer.

I need to clarify what I mean by designer as the term can throw a wide net that is going to catch some stragglers that don't really belong on the “must hire list”.  To name just a few my list of desireable designers are architects (arch, interior arch and landscape arch), industrial designers, fashion/ film designers and graphic designers.  I stick to this basic list because it encompasses professions that have degrees specifically designed to produce the professionals.  Meaning college isn't some arbitrary list of classes, but a program specifically curated to produce an end product...trained young professionals.  The list should also lean towards design professions that have options for becoming licensed.  

Ok, now that we got the boring crap out of the way, let’s talk about what makes these people such a great pool of leaders.  It’s really quite simple; process.  Any designer that has reached some level of success in their career has developed a process for identifying and evaluating problems and a clear path for finding a solution for said problem.  What this means is that as a business grows and problems need to be solved in general they will approach these problems pragmatically.  This is not a guarantee of success and I have actually considered writing the counter article to this on why designers could make bad CEOs.  Such is the foundation for a good design analysis is seeing the pros and cons of any solution.  After all there are no absolutes.  

It is really easy to jump to identify these people coming from shops we consider to be a good balance of creativity and business acumen.  Leo Burnett, Digitas, etc.  But often times within these walls teams are comprised of production vs client management personnel where you have to “cross aisles” to complete projects and work is divided into silos.  This is no indictment on any of those great organizations, rather trying to highlight the off shoot opportunities to find the owner operators, small business owners and leaders that have climbed the ranks from entry level positions.  Conceptually these are the people that have a foundation in design, but have found enough success to become leaders within their organizations.  This is the person that can talk gross margins, P/L statements and organizational charts, but still has a good old yellow #2 pencil and triangle within arms reach.  They understand the importance of time management to remain profitable, but also know there are times when a project just needs a little more attention.  Always ask and architect “does form follow function?” as this should give you some great insight to their foundations as a designer and potentially a leader.  

If you ever find yourself interviewing a designer (and you are not a designer) here are a few questions to ask:

What was the worst design mistake you ever made?

Tell me about a pitch meeting that went poorly?

Who is your favorite designer?  Ok, this one is a trick.  I can’t answer this question as I’m not a student of history, but it fun to watch a designer squirm.  

Kids these days, right?  This has nothing to do with millennials and work habits, but how technology has changed the entire design industry in the last 10-15 years.  

What you should come to expect from a designer as a leader is someone that is inquisitive and thoughtful.  Someone that will approach problems pragmatically and will deliver a critical thinking process to any problem.  Process is foundational to all design programs no matter the field and would be a welcome trait to any leader.  

Collaboration is the death of the ego and I don’t like it.

Self-appreciation is probably the longest standing design trend in human history.  No doubt the first two cavemen to design a wheel would still be arguing about who actually drew the first conceptual sketch.  Cast aside the influence the actual invention bestowed on the human race. The factual accuracy of who named it ‘the wheel’ might be the bigger story. 

What we fail to recognize is that nobody really acts alone in the creation of anything even though we love to lay the claim or blame solely at the feet of just one person.  This fact goes well beyond the creation of gadgets.  I am sure Steve Jobs didn’t actually create the ipod, any more than Lee Harvey Oswald worked alone, Rosa Parks started the civil rights movement, or Michael Jordan won six titles playing 5 vs. 1.  Most likely someone else was involved, we just conveniently remember the tallest, or loudest, person in the room. 

As a designer the lone wolf approach is enlightening.  It gives me hope that one idea conceived in a vacuum can be revolutionary and pushes me to think beyond my own means.  It is also terrifying that a failure to execute thoughtful design would result in the death of my productive creativity.  The edge is a wonderful place to live.  Collaboration will be the fool that will push me off the ledge into ‘think inside the box’ oblivion and the tape deck would reign supreme. 

My Ego refuses to allow me to believe I couldn’t solve a problem on my own without a ‘partner’ but I am a realist enough to acknowledge I don’t know everything.  It is a classic internal Spy vs Spy type debate of which I am destined to be the winner and loser.  What we love to hate most about our self-appointed titles of ‘designers’ is the air of superiority that comes with the distinction.   The cringe is reflextionary when someone tries to ask me about the flowers in their backyard.  I immediately tell them about the time I was the lead designer on a substantial project for the city of Chicago.  The statement is bound to leave an impression but the facts are rarely impressive.  To the aforementioned project I had the pleasure of working with a renowned architect, Jeanne Gang.  Pause for dramatic effect or self-reflection on your professional failures in life for not reaching such a high water mark.  Her talent was palpable and ego as distant as the boys and girls at a middle school dance.  Fully engaged in the collaborative process my ideas were embraced as equal and I was subjected to an intense session in executing humility and grace.  It was repulsive.  While I bragged to co-workers about our genuine exchange of ideas, as if we were equals, I longed for her to confidently place me under her thumb and bestow a cornucopia of knowledge that could not satisfy a Viking horde.

Today the project is hers and the lasting impression will be that Jeanne Gang designed a 91 acre park for Chicago known as Northerly Island.  You will find me in the 10th row of the ribbon cutting ceremony as an uninvited, unknown, and hardly welcomed guest.  My sole contribution to the project will be the emasculating financial donation I made to the project through a former employer, parking tickets and property taxes.  Maybe it was her grace as a collaborator that has lead her and other designers to such lofty perches.  Certainly Steve Jobs only ever shared the stage with the ipod/pad/ phone but even he hated the dual spot light and ultimately why he made the devices so small and eventually black as if to blend with his standard black turtle neck.  That is so “designer” of you.  I can only hope that one day I deliver a crushing blow to my collaborators and watch as they fall into a wasteland of middle management.  Let’s just hope that my assentation more closely follows Rosa Park’s and not Lee Harvey Oswald’s.  Someone find me a black turtleneck and Sharpie.