Sunday Email - Activites and Results / Luck or Skill

Read time: ~6:45 minutes

Happy Sunday!

Every Sunday I offer strategies for the week ahead and a thought to fuel your action.

Always be closing. 

This mantra is a staple in the sales world, symbolizing the relentless pursuit of growth and success. 

Sales, in its essence, is an infinite game. Unlike games with a clear end, sales is a perpetual challenge, resetting to zero each year, demanding constant vigilance and effort.

In sales teams, there's a prevailing "what have you done for me lately" mentality. As advisors, we pivot our focus towards nurturing relationships, and this strategy has indeed borne fruit. Referrals, thanks to this focus, have become our primary source of new business.

However, firms across the country, regardless of their size, speak to the pursuit of growth as a core challenge. Despite referrals leading the pack, there's an insatiable desire for more. As businesses transition from first-generation to second-generation ownership, this clamor for growth will only intensify.

But let's face it, sales is tough. 

It demands more than just deepening client relationships. And here lies a common trap that many in wealth management, and other sectors, fall into, leading to a struggle in sustaining sales.

Take, for instance, Cole Cash Financial Planners, a hypothetical firm eager to supplement its referral-driven growth with additional strategies. They decide to venture into digital marketing, targeting their ideal client profile — the 9-to-5, blue-collar worker with a pension, who spends an hour daily on Facebook.

The team at Cole Cash is buzzing with excitement. 

They've meticulously planned a Facebook campaign encompassing content, paid ads, and organic posts by team members. The strategy hinges on showcasing the firm's human side via their team members' engagement on Facebook, not just relying on ads.

The campaign launches, and the team's engagement on Facebook is phenomenal. 

The team sets up a separate Teams channel for internal discussions on progress, and soon, the results start showing. Engagement spikes, newsletter sign-ups increase, leading to more prospect meetings. 

Six months in, due to the success of the campaign the team shifts their focus to hiring. They need more team members to serve the growth. 

As this shift occurs, Facebook engagement starts to wane. But new client growth continues to move higher. But as the focus of the organization has shifted to hiring, they have made the Facebook campaign more on auto pilot due to a lack of resources. 

A few months go by and ultimately the metrics on new clients starts to wane. And management starts to ideate on why. Yet, the fate of this metric was determined when the shift in focus occurred a few months prior. 

This shift in focus, while logical, was the prelude to a common pitfall — the results trap. It's the lag between peak activity and peak results. As outcomes improve, activities slow down, unwittingly setting the stage for future declines.

Several cognitive biases play into this. Initially, the novelty of a new campaign is exciting, but as it progresses, goal fatigue sets in. The sense of accomplishment reduces urgency, fostering a mindset of reaping rewards for a job well done. Moreover, as success becomes apparent, attention diverts to newer business areas, leaving successful strategies on autopilot.

So how do we sidestep this results trap and keep our teams inspired?

Firstly, make the infinite game finite. Set short, tangible goals with clear metrics, celebrating each achievement. 

Inject creativity and innovation into the process. Monotony breeds disinterest, so keep things fresh, maybe with a new presentation slide, technology, or video integration in emails.

Healthy competition also works wonders. It's a natural motivator. Make it fun and engaging to spur continuous effort. 

Lastly, don't forget to take breaks. After achieving a short-term goal, relax a bit. Go out as a team or pause before diving into the next objective. This gives everyone a chance to rejuvenate.

Growth in sales is an infinite game. 

Each year starts anew, and to succeed, the lights must always stay on, with continuous, unrelenting activity. This is the secret to sustainable growth and avoiding the pitfalls of short-lived success.

A Thought To Ponder This Week

I'm a big fan of Guy Raz’s podcast, “How I Built This.”

The stories of business builders inspire me. 

At the end of each episode, Raz poses a thought-provoking question: “What percent of your business success comes from luck, and what comes from skill?” 

What an incredible question!

I see the journey to success as a three step process. It starts with beliefs, which fuel decisions, leading ultimately to outcomes.

In the gap between belief and decision lies uncertainty, often due to incomplete information. We can never know everything. Then, between decision and outcome, we encounter the unpredictability of luck.

Even the most calculated, seemingly perfect decision can lead to unexpected results, and sometimes, a seemingly random choice can bring success.

This raises an intriguing point: Is success more about luck or skill?

So here is a thought to ponder as we enter a new week, consider Guy Raz’s question: In your journey, has luck or skill played a larger role?

The best is ahead!

-Matt