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Continuous Improvement, Growth Mindset, and an “Attitude of Better”
This was originally posted on LinkedIn.com/in/chipn
When I had my own company, we focused on providing the absolute best services in a few niche areas. Our goal was to succeed in the spaces that were important yet underserved. We identified those areas, validated the need, evaluated the competition and our competitive positioning, determined the market potential, and then made an informed decision based on that data.

But this was not a plan for winning. It was a roadmap to places we could win, but nothing more. What would our strategy be? What specific problems would we solve? How would we create awareness around the potential impact of those problems? And how would we position ourselves as the best candidates to address those business needs? In short, what was our real purpose or raison d’etre?
Recognizing that void led to a couple of powerful revelations –
1. It is great to have a goal of being the best at something, but don’t use that as an excuse to procrastinate. Learning and improving is an iterative process, so that goal alone wasn’t enough.
2. Adopting an “Attitude of Better” became a game-changer. We focused on continuous improvement and winning. We became customer-obsessed, driven to provide better service and better results for every customer. We gauged our success by customer satisfaction, repeat engagements, and referrals.
3. But it wasn’t until we adopted an intentional Growth Mindset that our business evolved and improved.
· We leveraged every win to help us find and create the next one.
· Our team constantly pushed each other to raise the bar of knowledge, expertise, and performance.
· Just as important was what occurred next. They became each other’s safety net. Failure for one meant failure for all, and nobody wanted that. They became a high-performance team.
· We created standard processes and procedures to ensure consistency and maintain the highest levels of quality. This applied to everything we did – from working on a task to writing trip reports, status reports, and proposals. It also reduced our risks when we chose an outsourcing partner to help us take on more concurrent projects.
· Whenever possible, we automated processes to maintain consistency while increasing efficiency, repeatability, scalability, and profitability.
· We measured and tracked everything, analyzed that data, captured lessons learned, and continuously worked on improving (and documenting) every aspect of the business.
· A byproduct of this approach was that we could offer leaner pricing based on accurate estimates with very small error margins. Our pricing was competitive, we could fix the price for much of what we did, and our profit margins were very good. This allowed us to invest in further growth.
Our “attitude of better” also came across as confidence when selling to and working with new customers. Not only could we tell them stories of our success with tangible metrics, but most of our customers also became references willing to talk about the value we added. Their stories included discussions of how much better things became because of our work.
Better became the foundation of what we did and the foundation of those customer success stories.
Could a New Channel Model Lead to Sales Amplification?
Over the years, I have helped successful companies and start-ups improve and strengthen their Channel and Strategic Alliances programs. The results have been good, but could they have been better? Keep reading to learn about the benefits of enhanced business ecosystems.

Most traditional channel models support Distributors, Resellers, OEMs, and ISVs. The business mainly flows upwards to the main vendor. If that vendor has popular, widely used products (think Microsoft and Oracle), partner business can be good because the demand stays consistent. But sales pipelines suffer when that is not the case.
Sales Channel business is not the main source of revenue for most companies, but it can become the largest and most scalable revenue source for nearly any business. Just think about the money left on the table by not adopting a growth mindset and executing a new and better strategy.
In the summer of 2016, I attended the “Sage Summit” in Chicago. It was impressive to see the Sage Group’s efforts to build, strengthen, and protect their Customers and Channel Partners community. They tried to foster higher levels of collaboration between the various types of partners – implementation services, consulting, staff augmentation services, complementary product vendors, etc. They had created their own highly successful Business Ecosystem, which is an excellent proof point.
When designing a channel partner program, my focus has always been on balancing promoting and protecting partners’ business with ensuring end customers have the best possible experience (and some recourse when things do not work out as expected). I have used a variety of methods to accomplish those goals, including creating a systematic approach to seeding relationships between partners’ complementary offerings and facilitating even greater business activity.
Nearly a year ago, I began working with a management consultancy run by Robert Kim Wilson, whose business vision is based on his book, “They Will Be Giants.” Links for this book and other relevant resources are provided at the bottom of the post. Kim asserts that Entrepreneurs with a Purpose-Driven Business Ecosystem (PDBE) are more successful than those without one, and he provides examples to support his point. Having experienced Kim’s PDBE, I see how purpose fosters trust and collaboration.
As I did more research, I found that thought leaders in this space have increasingly focused on Business Ecosystems and Business Ecosystem Organizers (such as Sage in the earlier example). Those findings reinforced the PDBE approach, and external validation like this is always good.
From my perspective, it was just as important that this concept apply to businesses of any size – especially for small to midsize businesses. The fun part for me is exploring a specific business, analyzing what they do today, and quantifying the potential benefits of adopting this new strategy.
So, how does this new type of Business Ecosystem work?
- The Business Ecosystem Organizer expands the overall network, vets new “Business Ecopartners,” and provides a framework or infrastructure for the various Business Ecopartners to get to know one another, exchange ideas, and discuss opportunities.
- This can become an incredibly sustainable revenue source for companies willing to invest time to collaborate and share ideas in order to grow and support the Business Ecosystem.
- Business Ecopartners will have access to trusted resources to augment existing business and take on new, bigger projects by leveraging the available expertise.
- Suppose that you have products or services that work with commercial CRM (Customer Relationship Management), ERP (Enterprise Resource Planning), or SCM (Supply Chain Management), and have seen a growing demand for functionality that relies on highly specialized technologies like:
- Cryptocurrency support.
- Blockchain for financial transactions and things like traceability in your supply chain or IoT data.
- AI (artificial intelligence) and ML (machine learning) to detect patterns and anomalies – such as fraud detection, Deep Learning/Neural Networks for image recognition or other complex pattern recognition.
- Graph databases to better understand a business and infer new ways to improve it.
- Knowledge Graph/Semantic databases to create deeper meaning and understanding with data from multiple sources – assisting in deeper understanding and Transfer Learning (which also has an AI tie-in).
- Building these practices in-house would not be practical or cost-effective for most businesses, so partnering becomes very attractive.
- This type of business relationship can also be very attractive to a Business Ecopartner because someone else handles prospecting, sales, billing, account management, etc.
- Suppose that you have products or services that work with commercial CRM (Customer Relationship Management), ERP (Enterprise Resource Planning), or SCM (Supply Chain Management), and have seen a growing demand for functionality that relies on highly specialized technologies like:
- Other Business Ecopartners can leverage your products or services for their projects and engagements, expanding their addressable market and creating additional revenue sources for the other ecopartners.
- By actively participating in this network, any business can now compete on imagination and innovation – providing a more comprehensive solution that could become a major source of differentiation from their competitors.
Value realized from this New Business Ecosystem model:
- These new sources of business and talent can become a real competitive advantage for your business.
- This becomes the source for Sales Amplification because each business is, directly and indirectly, expanding its reach and growth potential.
- The weighted (based on capabilities, capacity, responsiveness, and Ecopartner feedback) Business Ecopartner network model could lead to exponential business growth – a winning strategy for any business.
Next Steps
If this sounds interesting and you would like to discuss how it could look for your business, contact me to schedule an exploration call.
References:
- https://kimwilson5.wixsite.com/theywillbegiants/the-book
- https://www.bcg.com/publications/2019/emerging-art-ecosystem-management.aspx
- https://www.gartner.com/smarterwithgartner/8-dimensions-of-business-ecosystems/
- https://sloanreview.mit.edu/article/the-myths-and-realities-of-business-ecosystems/
- https://www2.deloitte.com/us/en/pages/operations/articles/business-ecosystems.html
- https://www.accenture.com/_acnmedia/pdf-56/accenture-strategy-your-role-in-the-ecosystem.pdf
- https://www.bain.com/insights/shifting-from-assets-to-ecosystems-video/
- https://hbr.org/2019/09/in-the-ecosystem-economy-whats-your-strategy
What are you Really Selling? (Hint: Solutions)
Understanding pain and need comes from asking good, targeted questions, listening to the response, and confirming or drilling down to make sure you understand the problems, their impact, and what would be better if those problems were resolved. This is the foundation of solution selling.

Once you understand what your prospect needs and why they need it, you can connect with them meaningfully to increase your win rate by providing a solution to their problem.
It is interesting to see Sales and Marketing people focus on features, performance, cost, and even value without linking them to a company’s specific business impact. That often goes hand in hand with showing 20 slides and focusing on every major feature, which is a great way to alienate your prospect.
A sales adage from the 1940s (source) asserts, “No one wants a drill. What they want is the hole.” Today, that basic understanding of why people and companies buy is often lost in sales and marketing messages. Sales success is all about solving problems and satisfying needs.
Several years ago, my team and I were selling a new Analytics Database that was genuinely different. Still, our message was identical to every other database vendor – “70% – 100% faster than every other product.” It is nearly impossible to differentiate your product using a non-differentiated message. Don’t treat your product or service as a commodity if it is not one.
I flipped the messaging to focus on business needs. We created a weekly webinar focused on Why Fast Matters. Query response time is important, but responsiveness to customer needs and requests is essential. What if they didn’t have to wait a week or two to create new indexes or a month to update a Star Schema? They could just run queries as-is, maybe wait a minute instead of a second or two, and have what they need then and there. That message resonated; we sold the first 50% of that product globally. When the Australian team began using our messaging, their sales also increased. Funny how that works.
Effectiveness is all about results and intended outcomes. Efficiency is about achieving those results with the least time and effort invested. It doesn’t mean that we are looking for a lazy approach to find a win. Instead, it is about identifying repeatable patterns that cut out unnecessary activities, speed up the sales cycle, minimize related costs, and maximize wins.
To help yourself understand what you are selling, view things from your prospect’s perspective. What struggles are they likely facing? Where are the greatest opportunities to help their type of business? Are you analyzing data to attempt to assess their unmet needs? Your insight can become a huge differentiator, especially if you can teach them different and better ways to do something (ala the Challenger Sales Model).
What is the difference between your prospect company and its main competition? This analysis requires a general understanding of the problem space and a more specific understanding of the prospect company, its history, and 2-3 main competitors. It also requires an honest account of how your company and products compare to the competition so you can play up your strengths and limit investment in areas where the fit is weaker.
The next item to focus on is messaging. Below are a few examples from my career –
- Analytics & Big Data – The focus here is often on data volume, data currency, query speed, cost, maintenance, and downtime. Those things become essential later in the sales discussion, but initially, companies want to know what problems their product or solution will solve.
- Some of my fastest deals sold because I showed them how to make better decisions faster and/or identify minor problems before they became major problems. Avoiding problems and unplanned outages were critical elements of the messaging.
- In one case, I closed a significant deal in less than three months by focusing on how a company could provide customers with five years of transactional data. Those customers could use the data to make better purchasing decisions in less time than it took the current system to analyze six months of data. Their sales increased after implementing this modernized system. The winning message was helping customers make better buying decisions faster.
- Embedded Products – While many companies focus on APIs, features, or cost per unit, I focused on how the product made things better and easier to manage, improving customer support and Customer Satisfaction.
- I closed a $1.1 million deal in less than two months to a medical device company by focusing on the life cycle of those devices (often 10-15 years) and how their customers needed consistency from machine to machine. Consistency over time was the winning message here.
- After being approached by a Defense Contractor for a relational database product for a new Flight Simulator system, I changed the discussion to the complexity of flight control systems, the need to correlate 30+ operational systems in real-time, and the importance of taking a verbal command and translating it to specific commands for each related system. That led to selling a NoSQL product ideally suited for this complex environment. Letting our software handle the highly complex workload helped us win this deal.
- Consulting Services – These were not contracting or body shop services (commodities) but actual Business and Technical Consulting services with high visibility and impact. In these cases, our expertise, experience, and track record of success in different but demanding scenarios provided confidence. These were often multi-phase engagements to prove our value before making a significant commitment.
- In a bid against two well-established competitors, we won a deal with a large Petroleum company worth nearly $500K. The proposal included information we uncovered about the system and use case and later verified with the prospect, a section on our people and past projects, and a high-level project plan with firm-fixed pricing. We won the bid, and I later discovered that our cost was $50K higher than the largest competitor and $100K more than the other competitor. The customer told me, “Your proposal demonstrated the understanding of who we are and what we need, and that confidence provided the justification to select your company and pay a premium to have the job done right the first time.”
- My first million-dollar deal was with a company where we demonstrated our ability to solve problems. They knew they needed assistance but were not exactly sure where. I created a “Pool of Days” concept that provided flexibility in the work performed (task, deliverables, and scheduling) but had minimum monthly burn rates and an expiration date to protect my company. The winning messaging this time was that flexibility and the ability to accommodate changing needs without introducing significant risk or additional cost were better ways to buy consulting services. This approach led to many other similar deals with other companies.
The common theme across these examples is helping companies solve their specific business problems. Even when technology was central to the message, focusing on better outcomes for that prospect and their customers was essential. Value matters, but positive results and better outcomes matter even more for purchasing decisions.
Nobody wants to take a chance on a new vendor and be responsible for a high-profile failure. Instilling confidence early makes a huge difference, and following through to successful implementation results in happy customers who become loyal customers who provide references and referrals.
Success starts with selling what you can do for your prospects from a business perspective. You solve their problems with the solutions they need and avoid getting lost in the noise of unfocused messaging from most of your competition.
Good Selling!
Shouldn’t Sales Forecasting be Easy?
Of course it should… or maybe not.
First, what are you measuring? The answer to this seemingly simple question is something that anyone with a sales quota should be able to succinctly answer, since this is what you are being paid on.
But context matters, too. People at different levels of the business are likely reviewing multiple forecasts for multiple reasons. So, the first rule is to never assume.
So, what are you measuring?
- Bookings – Finalized Sales Orders
- You have a PO, but has the deal really been closed? What else is needed in your business to finalize an order?
- Billings – Invoicing Completed
- This includes dependencies that may introduce unexpected delays and/or be outside of your control, such as a deal that bills on October 31st versus November 1st. Are they still part of the same period (October)?
- Revenue – An in-depth understanding of Revenue Recognition rules is key.
- How much revenue is recognized and when it is recognized varies based on a variety of factors, such as:
- Is revenue accrued or deferred? This is especially key for multi-year prepaid deals, or when services are packaged with software as part of the deal.
- Is revenue recognized all at once – such as for the sale of Perpetual Software Licenses? (even this is not always black and white)
- Is revenue recognized over time – such as with annual subscriptions that are ratable on a monthly basis?
- Is revenue based on work completed/percentage of completion? This is more common with Services and Construction. How is that percentage determined?
- Are there clauses in a non-standard agreement that will negatively affect revenue recognition? This is where your Legal team becomes an invaluable contributor to your success.
- Cash Flow – Is this really Sales forecasting?
- The answer is ‘no’ in terms of Accounting rules and guidance.
- But, if you have a start-up or small business, this can be key to “keeping the lights on,” in which case the types of deals and their structure will be biased towards cash flow enhancement and/or goals.
- How much revenue is recognized and when it is recognized varies based on a variety of factors, such as:
- Profitability – In this case, what expenses are factored in that offset revenue?
- Cost-Volume-Profit (CFP) analysis tends to be one of these exercises where you learn that there are often several takes on what is or is not a related expense.
When I was a VP running two global regions, I would meet with the CFO prior to the end of a quarter to discuss what mattered most for the coming quarter. Sometimes the goal was more upfront cash; other times, it was guaranteed multi-year revenue. Sometimes it could be both, and I would be authorized to provide additional discounts on prepaid multi-year deals. The goals would change based on our banking covenants (revenue, investments, cash on hand), investor goals, valuations, etc. I often tracked multiple goals at once for various reasons.
My advice is to work closely with your CFO, Finance Team, Sales/Revenue Operations Team, and Legal team to understand their goals and guidelines, then take that one step further by creating policies approved by those stakeholders and share the highlights with the Sales team to avoid any ambiguity around pricing rules, process changes, and expectations. Great communication and a common understanding of the goals and rules help you and your team win.
So, now the hard part is over, right?

It could be that easy if you have one well-established product, a stable install base, no real competitive threats, a steady, predictable growth or decline rate, and consistent pricing and average deal sizes. I haven’t seen a business like that yet, but I’m sure at least a few exist.
Next, what are you building into your model to maximize accuracy? Every product or service may be driven by independent factors, so a flat model that evenly distributes sales over time (monthly or quarterly) is likely to be inaccurate when you have royalty revenue or progress-based billings.
For example:
- One product line that sells perpetual licenses may depend on release cycles every 18-36 months to maintain a steady revenue rate, with peaks and valleys within that window.
- A second product line may be driven mainly by renewals and expansion on fairly stable timelines and billings. In this case, annual uplifts may be needed to maintain profitability.
- A third product line may be new with no track record and in a competitive space – meaning that even the best projections will be speculative and likely optimistic.
- Finally, services could be associated with each product line and driven by more dependent and independent factors (new implementations, upgrades, implementing new features, platform changes and modernization, routine engagements, training, etc.) How and when are the revenue and expenses recognized, and what impact could they have with related items sold with (or close to) that deal?
Historical trends are one important factor to consider, especially because they tend to be the things you have the greatest control over (i.e., they should not change that much). This starts with high-level sales conversion rates and goes down to average sales cycle, seasonal trends, organic growth rates, churn rates, and more.
Having accurate sales and customer data over time that can be accurately correlated is extremely helpful. But factors such as Product SKU changes, licensing model changes, new product bundles, etc., increase the complexity of that effort and potentially decrease the accuracy of your results. These self-inflicted issues are often introduced without considering downstream implications. Fun!
Correlating those trends to external factors, such as overall growth of the market, relative growth of competitors, economic indicators (inflation metrics like CPI, interest rates, foreign exchange rates, corporate indicators (profits, earns per share, distributions, various ratios, ratings, etc.), commodity and futures prices (especially if you install base tends to skew towards something like the Petroleum Industry), specific events, and so forth increases the complexity of the model but can add an extra level of accuracy.
The best case is that those correlations increase your forecasting accuracy for the entire year. In all likelihood, they provide valuable inputs that allow you to dynamically adjust sales plans as needed to ensure year-over-year success. But making those changes should not be done in a vacuum, and communicating the potential need for changes like that should be done at the earliest point where you have a fair degree of confidence that change is needed. Simple, eh?
Unexpected events will always negatively impact your forecasts and plans. Changes to the competitive landscape, reputational changes, economic changes, etc., can all occur quickly and with “little notice.” That is especially true if you are not actively looking for subtle indicators (leading and trailing) and nuances that highlight potential problems and give you time to do as much as possible to address them proactively. The best advice is to anticipate the unexpected and have a contingency plan!
Forecasting accuracy drives confidence, which helps you secure funding for new campaigns or initiatives. Surprises, even positive ones, are generally disliked because the results differ from expectations, which can fuel other doubts and concerns.
Confidence comes from understanding, good planning, helping everyone meet a quota, and supporting teams to do what is needed, when it is needed, to optimize the process. This also assumes you can determine whether deals are really on track and intervene with guidance before deals slip or are lost.
It may not be easy, but it helps drive companies to the next level through a predictable, sustainable growth trajectory. In the end, that consistency often matters the most to the owners and stakeholders of a business.
IoT and Vendor Lock-in
I was researching an idea last weekend and stumbled across something unexpected. My view on IoT has been that it provides a framework for a rich ecosystem of hardware and software products and their use. That flexibility and extensibility foster innovation, which in turn leads to greater use and adoption of the best products. It was quite a surprise to discover that IoT was being used to do just the opposite.
My initial find was a YouTube video about “Tractor Hacking” that lets farmers make their own repairs. That seemed like an odd video to appear in my search results, but it made sense about halfway through. The video discusses not having access to software, replacement components not working because they aren’t registered to that tractor’s serial number, and the only alternative being costly transportation of the equipment to a Dealership to have a costly component installed.

I initially thought there had to be more to the story, as I found it hard to believe that a major vendor in any industry would intentionally do something like this. That led me to an article from nearly two years earlier that contained the following:
“IoT to completely transform their business model” and
“John Deere was looking for ways to change their business model and extend their products and service offering, allowing for a more constant flow of revenue from a single customer. The IoT allows them to do just that.”
That article closed with the assertion:
“Moreover, only allowing John Deere products access to the ecosystem creates a buyer lock-in for the farmers. Once they own John Deere equipment and make use of their services, it will be very expensive to switch to another supplier, thus strengthening John Deere’s strategic position.”
While any technology – especially platforms – has the potential for vendor lock-in, the majority of vendors offer some form of openness, such as:
- Supporting open standards, APIs, and processes that support some degree of portability and third-party product access.
- Providing simple ways to unload your data in at least one of several commonly used non-proprietary formats.
Some buyers may deliberately implement systems that support non-standard technology and extensions because they believe the long-term benefits of a tightly coupled system outweigh the risks of being locked into a vendor’s proprietary stack. But there are almost always several competitive options available; always consider all viable alternatives.
Less technology-savvy buyers may never even consider asking questions like this when purchasing. Even technologically savvy people may fail to consider IoT as a key component of everyday tools and services – thus failing to recognize the implications of a closed system relative to their purchase.
It will be interesting to see whether deliberate business strategies like these change because of competitive pressure, social pressure, or legislation over the coming years. In the meantime, the principle of caveat emptor may be truer than ever in this age of connected everything and the Internet of Things.
