The History of Sales: Dale Carnegie is Still with Us

I've recently been hearing sales companies talkchallenges (slowdown, recession, people taking a
about how they are 'helping their buyers buy' withlong time to decide to spend money). It has
a system that is the 'next thing' afterdifferent skills, a different premise, and different
Consultative Selling. After becoming familiar withresults. It does NOT use the Carnegie thinking, or
their concepts and methods, I've come to believethe consultative methods. It does NOT use the
they are correct: they are definitely on to thetypical product pitch, probing techniques, closing
next iteration. But of what?The next iteration ofstrategies, or questioning approaches. Most
How to Win Friends and Influenceimportantly it operates on a totally different set
People.Interestingly, Dale Carnegie's beliefs andof premises:1. only a person working or living
sales models continue to capture the mainstreamwithin a culture/system can understand that
audience for sales professionals, complete withculture/system.2. people will do something
the beliefs and behaviors he put into place indifferent only when they are assured that there
1937.Let me take a moment and enumeratewill not be chaos (or they know how to manage
them:1. Although the buyer has input, the seller isthe chaos) when they make a change.3. a seller is
the product expert and therefore knows whatin a unique position to be a brand manager for his
the buyer needs.2. The seller's job is to influence,her company.4. a seller is in a unique position to
convince, or persuade (the word Carnegietruly serve a buyer by helping them discover how
preferred) the buyer to buy the seller's product.3.and what and when and where and why they
By careful information positioning - appropriateneed to solve a problem within the parameters
pitches, presentations, ads, campaigns, marketingthat exist in their unique culture.5. a buyer is the
strategies, layouts, commercials - a buyer willonly one who can navigate the decision system s
recognize that they need a product.4. The sellerhe lives within - the seller has no political capital
can see what is missing from a buyer'sand truly can only take a macro view since s/he
environment by virtue of his/her knowledge ofdoesn't reside within the buyer's team/family
the product, and is at fault when s/he fails atcompany.6. a buyer must be able to recognize
selling the product where it is needed.5. If thethe differences in competitive product offerings
seller can get it right the buyer will be ready tobefore they make a purchase: it is only when
buy in the seller's time frame using the seller'sthey have recognized precisely what a solution
sales criteria.ADDING QUESTIONS TOneeds to entail are they ready to understand
TRADITIONAL SALESOnce Consultative Sellingproduct data and differences.7. the seller's job is
came along in the mid 80's, thanks to Larryto help people understand their systems in order
Wilson, Linda Richardson, Neil Rackham, and Davidfor change and before product information is
Sandler, sellers began realizing they needed to getrelevant.8. the seller does not initially need to
input from the buyer. Thus the inclusion ofknow or understand the buyer's needs, and,
'questions' into the selling process.And what wereduring the first phase of the Buying Facilitation(R)
the questions? Information-based questions thatprocess, functions purely as a neutral
led the prospect to admit just WHERE they had anavigator.The most significant difference in thinking
problem and just HOW they could solve it usingis that the buyer is the only one who can
the seller's product. These questions ultimatelyunderstand their own needs, given their
were a manipulation to get the buyer to concedeunderstanding of all the elements that go into their
that yes, alas, they had a problem, and no, theyunique decision and culture. The seller is taken out
weren't handling it as effectively as they might.of this aspect of the equation, until the buyer can
Obviously, went the theory, once they realizedspecify what they need and how. Only then is it
the error of their ways, they would know it wastime for the seller to pitch and present their
time to buy the seller's product.But did they doproduct in terms of what the buyer needs to
that?Given that the questioning system was usedhave happen in order to buy.So, to summarize:
to 'create a need' and was therefore manipulative,Buying Facilitation(R) is NOT a new way for sellers
buyers ended up not being totally honest; theyto glean the data they need in order to make a
knew they were being set up for a sales pitch.sale. It is a decisioning process that teaches
And, after all, why should they share privatebuyers how to recognize all aspects that need to
information with a stranger - especially a strangerbe included in a decision in the area of the seller's
that would use the information against them.product benefits, with the seller being the neutral
David Sandler coined the term "Buyers are Liars".navigator to help the buyer think it all
The implication here is that sellers, still, have thethrough.Here's a personal story that would be
answer and know the real truth behind buyer'sfunny if it weren't so sad. A visionary sales
needs. Indeed, sellers create their ownmanager from a large multinational hired me to
objections.But it's a bit more complex. Buyerstrain his group. It was an easy sales process for
have lived in their unique culture - and indeedme, since the person with the checkbook was the
helped create it - for so long that it feelsbuyer, and the Facilitative systems questions I
comfortable. Things are 'done that way' becauseposed were (in his estimation) not relevant since
they always have been, and it seems to be fine.he was a single buyer.As the training progressed,
And, if you remember the 3-part series on WhatI discovered that the entire company had been
is Buying Facilitation(R) (newsletters October,opposed to him bringing in a visionary sales model.
November, December, 2002), buyers have aFolks had had meetings with him, threatened him,
very microscopic view on their piece of theirtraveled long distances to get him to listen to
environment, and sometimes have difficultyreason, etc. because they were unwilling to
recognizing the entire picture. They intimatelychange the system. Since this man had his own
know the systems around them and they tend tobudget, he went ahead, but did not bring his
respond to questions using this micro view as theannoyed colleagues into the process.By the time I
basis of their answers. [If you have not yet readgot there, it was too late: they were lying in wait
the above series, I recommend you do so, as thisfor him. During the brief post-training coaching
is a very important piece of understanding whenphase, the sales numbers lagged. That was it.
helping buyers make decisions.]So, given that theThey began a lethal campaign that led to the
job of sales continues to be defined as a processredeployment of the trained reps, and a new job
meant to move product into the hands of buyers- for another company - for my client. Oh. The
(using whatever methodology that can move it),figures for the month the sellers used the Method
using Dale Carnegie's precepts will continue towere 600% over their projected revenue. It was
reap the same problems they always have:more important for the system to be stable than
slower-than-necessary sales cycles - while buyersa huge increase in revenue.Contrast this to the
figure out their internal issues; multiple decisionsuccess of the Buying Facilitation(R)
makers appearing seemingly out of nowhere -implementation at California Closets. When we
while the internal systems get organized aroundbegan the training and discussed the possible
change; tough price deliberations - because buyerspoints of disruption and chaos, the entire
don't know how else to evaluate one offeringexecutive management team got on board to
over another; seemingly unnecessary time delayscreate strategies to contain any chaos. As soon
- while buyers attempt to solve the problem usingas it began, the team put into place their action
familiar resources; rejection - because buyersplan, and mitigated the problems. Now, after five
don't know how to justify change.In other words,years, they continue to use Buying Facilitation(R)
the problems inherent in the conventional salessuccessfully internationally. The rewards include
methodology have become standard businesseasier collaborations amongst all stakeholders, as
problems, occurring across contexts, independentwell as increased revenue and long term client
of product or price or delivery system.SALESrelationships.Remember this: until buyers take into
ENVIRONMENTS - HOW BUYINGaccount all of the 8 points above, they will drag
FACILITATION(R) CREATES SUCCESSLets looktheir heels, or do something to recreate the
at two extreme forms of sales environments andstatus quo. Change is too costly.The results for
how they have designed their business strategysellers when using Buying Facilitation(R) are:1.
around conventional sales practices andgreatly reduced sales cycles;
problems.At the low end of the spectrum are the2. sales people become brand ambassadors for
telemarketers and call center reps: they have athe company;
script, push the features, functions, and benefits3. long term loyal business relationships;
of a product, and play a numbers game. They4. the decommoditization of products (i.e. no price
aim for a closing ratio of one half of one percentcompetition);
of the calls they place. That process defines a5. easy differentiation with the competition;
huge multinational industry: hire a specialist to6. alignment of all stakeholders in a short time
create a great script, find plenty of people (inperiod.ALIGNING DECISION FACTORSHelping
almost any country) who are willing to work forbuyers find solutions by thinking through and
low wages - and train, train, train (there is a 70%aligning all of the decision-making factors that
turnover due to the sheer boredom and abusecreate their culture is obviously different than a
the job bears).These sellers get 'no's' because'sales' philosophy (although people buy as a result).
they don't know how to engage the prospect inBut it seems to be a hard bridge to cross to get
rapport and don't help them examine theirsales people to understand that their job hinges
systems problems - not to mention treating allon the actual decision process rather than the
people like numbers. They base their entirestrength and relevance of the product.Because
process on finding those people who are actuallythere is now so much access to data, sellers
seeking that particular product, with that particularactually think they have all the 'data' they need to
price tag and description, on that specific day. The'help' a buyer know how to buy. And while they
process actually is one of the most inefficientmight have all the data, unless they live with that
sales processes imaginable. With just a few smallfamily, or sit in on team meetings and share
changes, they can increase their response rate toprojects and phone calls and gossip with a team
2% using Buying Facilitation(R). But since thefor months and months, they will never
people they hire are such a cheap commodityunderstand HOW buyers make their decisions, and
(especially in countries like India where a lot of thisthe criteria they use in order to choose to make
is taking place), they just keep aiming for the onea change.Indeed, buyers might not consciously
half of one percent close, and keep hiring newunderstand the 'hows' either. But make no
people when their agents burn out.I recentlymistake: until they do, they won't buy anything.
trained call center reps at a software company.They need to do it with you or without you: it
Although they were receiving incoming calls, theymight as well be with you.Buying Facilitation(R) (for
were able to increase their per-dollar sale fromthose of you needing a refresher) is a questioning
$300 per call to $2000 per call. By using Buyingmethodology that uses systems thinking to help
Facilitation(R) they taught their customers how tobuyers figure out what a solution needs to look
take a rational look around their business culture,like:- so they don't have unmanageable chaos;
recognize problems, and be willing to purchase- so they don't step on political toes;
new products to solve the problem, all in one call- so they assemble all the relevant criteria of the
and five extra minutes.At the other end of theplayers;
spectrum are the Senior Partners of large- so all the players are on board;
accounting and consulting firms. Although they- so they link all of the history and politics with a
consider themselves above sales, that's exactlynew solution.It's not about the product; it's about
what they do. They just do it smarter, with an airthe norms of the buying culture. And the seller
of greater expertise, more money, more peoplehas NO WAY OF KNOWING the buying culture.So
involved in the sale, better presentations, and witheven though you have the exact right product, if
nicer ties. Buying Facilitation(R) has helpedthe buyers can't make sense of their own norms
companies at the very high end of the spectrumand values and beliefs and history and future and
bring multi-year sales cycles down to months bystakeholders, you can't sell it.I recently spoke with
teaching the buyer how to bring in all thesomeone who is running programs in one of the
stakeholders immediately, and giving themnew sales methods, purported to be the 'next
decisioning strategies so they can coordinate thestep' from Consultative Sales. What have they
whole picture - micro and macro - easily anddone? They've added questions that help sellers
quickly.Most people in sales truly care about theirhandle the anxiety brought about by pushing a
customers, so I'm being a bit unkind, but only asolution from the seller's perspective.Sellers are
bit. Sellers would be happy to do it morerecognizing the problem - they can't make a sale
efficiently if they knew how, but unfortunately,unless a buyer makes a buying decision; but they
the method that Dale Carnegie created lives onhaven't figured out how to handle that problem
and is still considered the norm, even thoughusing the original thinking that Carnegie gave us.
we've added a few bells and whistles to hisThey continue to use the same methods with the
original concept. Ultimately, once a sale is based onsame basic beliefs. In fact, the person I spoke
one person having the answers and finding a waywith said, "Buyers don't know what they need.
to impress their solution on the other, it becomesWe take care of that by helping them work
an exercise in power, control, and ego.PROBLEMthrough their anxiety."Nice. But imagine if you
VS. SOLUTIONBefore I clarify how Buyingdidn't try to sell. Imagine if you led buyers of any
Facilitation(R) gets rid of the inherent businesstype of product, in any market, through a simple
problems created by conventional sales methods,process that taught them:1. how to look at their
let me digress and discuss the reasoning behindenvironment with (their own) new eyes;2. how to
the continued use of the sales methods asstop and consider all of the political and historic
Carnegie defined them.The thinking goesfactors that not only got them where they are,
something like this: since buyers haven't solvedbut are planned to be used into the future;3. how
the problems that face them (in the area theto fix it themselves if they can (so they know it's
product resides), obviously they can't or theytime to seek a different solution if they can't);4.
would have already done so. One of the reasonshow to understand and align and handle all of the
for this oversight, the reasoning goes, is that theystakeholders and policies that have kept the
weren't even aware of the capabilities of thestatus quo where it is.Until or unless a buyer does
seller's product. Once they are made aware ofall of the above, they will not buy. Remember: the
them, and see how the product solves theirtime it takes people to come up with their own
problem, obviously they will be smart enough toanswers is the length of the sales cycle.Dale
buy it.I can't tell you how many thousand timesCarnegie's methods (including Open, Probe, Pitch,
I've heard a seller say that the buyer was a jerk,Close) taught sellers how to sell. There are no skill
or stupid, or worse, because they didn't buy thesets within his belief set that support buyers in
product they obviously needed. Obvious to thediscovering the unique, idiosyncratic solutions they,
seller, of course.It's becoming a known fact thatand all their stakeholders, need to create in order
buyers want a solution, not to solve a problem.to make a new purchase that involves more than
So the sales community has learned the new lingoone person.Given our economy is at such a
about helping buyers discover their solution. Butdifficult juncture, it might be time to apply Buying
they don't use skills that will support thisFacilitation(R) and help support those
discovery, and continue to use problem-solvingdecisions.Sharon Drew Morgen is a thought leader,
techniques (information push, product-focused) asand the author of New York Times Bestseller
a way to sell.In reality, the only people that canSelling with Integrity, Sales on the Line, and Buying
know how to fix a problem are the people thatFacilitation: the new way to sell as well as over
have a stake in the solution - those on the inside.400 articles. She is the pioneer behind the
And all the information that sellers collect or sharevisionary sales paradigm the Morgen Buying
will NOT address the systems necessary toFacilitation Method(R). As the architect of a wholly
support a new solution on a seller's site. People dooriginal sales model, Sharon Drew has provoked,
not buy based on information; they buy based oninspired, and motivated thousands of sales
their ability to align all of the systems that needprofessionals world-wide. With a history as a
to be included in a solution. And often, the datamillion-dollar producer and 30 years in sales, an
that sellers collect is just the top-of-mind data -entrepreneur of a successful start-up, and a sales
not the intricate systems data that creates a finalconsultant in many Fortune 100 companies, she
decision.SALES VS. BUYINGbrings field knowledge as well as innovation to her
FACILITATION(R)Buying Facilitation(R) is a newaudiences.
sales paradigm, and it fits with our new economic