Here’s the secret to selling managed services contracts without discounting!

Returning From Our First Stelzl – Platinum Inner Circle Coaching Meeting

Ft. Lauderdale FL.

I just returned from meeting with some of the members of the Stelzl Platinum Inner Circle and coaching group we run for our top clients – focused on scaling-up technology businesses.  One of the big takeaways (to my surprise) was the value of journaling…

The Journal Topic – a Big Hit This Week

I don’t know how many people actually keep a journal, but I’m always surprised to find, more have journaled at some point in their life than I would have imagined.

I started this practice years ago (1984 to be exact) when someone pointed out to me how many great historical figures adhered to this practice. Then, after having faithfully continued this practice through my career-building years, a neuroscientist explained to me why this is so important.

It would be impossible to do his explanation justice here in this simple blog post, but the bottom line seemed to be (at least what I got out of it) that our brains are always trying to make sense of life, and mental health has a lot to do with our brains properly and completely processing struggles – or what he called types A and B trauma (things you should have had but didn’t and those things done to you that create pain). When he says “trauma,” he’s not just talking about major life upsets…sometimes it’s just a lost deal, loss of a job, or some hurtful thing said to us.

The journal process then takes these traumas through 4 stages of the right-brain until a story emerges – a point where the brain can make sense of it all, at which time the event is understood by our logic center in the left brain.

He encouraged me to think through the challenges in life and business, relationships, successes and failures, etc. And then write about them…what would someone outside the situation see and hear if they were to observe me in this situation. What would it be like if they really understood the situation and were there to walk me through it? What would be said, what counsel would be given?

One of the coaches I work with in my business directed me to go through a similar process over some business growth related things I was thinking through. They encouraged me to focus on the issue I was dealing with daily for two weeks…and two weeks later, I came back with some major revelations…looking back, that year brought some major business breakthroughs! It was so simple – just working the process. At first it seemed almost like a waste of time but in the end it brought major change without much effort at all.

Time to Execute

Like all business conferences, you only benefit from those things you actually implement. Whether it’s stopping something you were doing (maybe someone else should be doing it, or it doesn’t really need to be done), or putting a new process or practice in place, all the great things that come from training, coaching, and seminars only help when you take them home and do them.

Our week is over…the next step is execution. I’m an implementor. When I leave a conference or coaching group, I go home with notes, ideas, and to-dos. I can’t do it all. I know that. So often on that last day I’ll take time to summarize what I heard, pick 1 or 2 things to do, and start working on them.

These small steps are what has allowed me to start and build a business, now running strong for 16 years.  My hope is, my coaching group members will return to business this week and implement!  The journal idea stood out to many of them – several had done it before, but lost sight of it. It’s a simple thing, takes little effort, and is highly effective. People like Benjamin Franklin were avid journalers.  More importantly, they were executors.

Look back at some of the great ideas you’ve heard over the years from coaches, seminars, experts…books you’ve read. Are there things you promised to start doing (or maybe even started) which you are no longer doing? Things you knew would make a difference but stopped when life got busy? What 1 or 2 things can you start up again in 2020 to make this a major growth year?

PS. Trying to build the security side of your business? The Profit RICH Side? Get my free risk assessment template.

Need more clients? Read The House & The Cloud – the only book I know of written specifically to IT Services/MSP providers on how to grow the security business FAST!

© David Stelzl 2020

Does your firm do security assessments? Why or why not? The security assessment (done right) just might be the start of your BIGGEST sale this year! (Download my free template here.) It might also be a major source of high-cost selling. Let’s take a look…

Defining “Assessment” – The IT Director

Assessments Come in Many Flavors. 15 Years ago I was leading a global reseller’s security team. We sold assessments (among other things). But we were leaving money on the table. If we had known what I know now, assessments would have doubled and tripled our profits!

“Assessment” can mean a lot of things. How you define this obscure animal will determine whether it works for you or against you. Alan Weiss, in his book Million Dollar Consultant teaches us an important lesson. It’s not the first sale that matters, it’s the forth. If you view this assessment as the end-goal, you’ll find assessments aren’t all that profitable. It’s the fourth sale that matters.

Consider the last time someone asked you about assessments. If you sell to IT / IT Directors and they’re saying, “We need a security (or risk or vulnerability or pen test) assessment,” this non-buyer might be asking for just about anything. The fact is, most IT directors have no idea what they’re asking for. Chances are, they don’t really know what they need.

Ask your director-level prospect why they need one and you’re likely to get a response that goes something like this… “We need to know if our systems are secure – or accessible to hackers.”

You (the technical expert) should know the answer without looking. “You’re not secure…hackers can always get in.” In one Wall Street Journal study I read, 2000 companies were assessed (using pen-tests) to see how many could be compromised. The white-hat hacker told reporters, only 13% represented some challenge to break into. All 2000 were compromised…but only 13% were challenging!

When I speak to business leaders on securing business data, I tell them, “If your pen-tester fails to break in, fire them!” They are simply incompetent.

While your IT-prospect might need an assessment for compliance purposes, or they’re just carrying out orders from above, the Director’s ability to understand true business risk is weak at best. In most cases, nonexistent.

If the director were to define assessment in their own words, they’d be picturing a list of vulnerabilities and a punch list to patch things up.

You can’t let the IT director define your assessment.

Defining “Assessment” – The CIO/CISO

The CIO, if asked, would likely define Assessment differently. CIOs are asked quarterly (by the board) to quantify business risk. Risk should be defined as impact and likelihood.  What is the impact of any major disruption to the business, and what is the likelihood it will happen in some predefined time period?

The Wall Street Journal once put it like this:

• What are our top 3-5 threats right now?
• What are the odds something will happen in a given timeframe? (E.g. Will system XYZ be compromised over the next 12 months?)
• How are we managing to these risks?

Can the CIO deliver risk to the board? No! Not without serious help from a security expert who understands how to quantify risk in business-leader language.  More coming on that later…But for now, understand, the chasm between a CIO’s definition and the Director’s is vast. One focused on technology and architecture (with little consideration for impact on profits), the other, all about giving the board members peace of mind – saving face and staying off the front page of their local newspaper.

In this stakeholder’s mind, threats are potential disasters striking at the core of their business, profits, shareholder value, and brand. Downtime is a cost – a disruption to business and customer experience. Ransoms are brand disabling shame messages propagating through national media. Data theft, a breach of customer confidence, potential fines, and lawsuits levied against the company – and perhaps the CIO himself!

Compare these to the Director, who’s goal in life sounds more like next pay raise, more time off, bigger office, more responsibility – you get the feeling Directors don’t have true liability in this equation. Sure, they might lose their job, but there’s another position around the corner… likely with a pay increase bigger than their upcoming annual review.

Defining “Assessment” – The Small Business Owner

For the small business owner, assessment is a cost they’d rather not incur. I speak at small business meetings often and always ask, “Who here has had their security assessed?” One or two in a crowd of 40-50 is normal.

Did they receive an actual measure of risk in their assessment? Not likely. In fact, in most cases they’re talking about someone scanning their perimeter, or perhaps the lame self-assessment required by PCI (Payment Card Industry). And yes, I mean lame.

As a small business owner myself, I can tell you first hand, my annual PCI required assessment is a joke. There is no measure of risk…even the security policy required by the PCI Police is a joke. Mine was sent to me via email by the company overseeing my annual audit. The rep on the line simply said, “Save this on your hard drive and you’re good.” Good? You mean I don’t have to read it, change it, or do anything with it? “It just needs to be accessible to your company,” he said. Funny – how does that have anything to do with how secure my systems are or how well protected my client’s credit card information is? It doesn’t.

To the small business owner, security is just another thing to do, distracting from business growth, customer service, and profitability. However, it’s no less important – they just don’t know it.

Don’t confuse this with an ambivalent attitude toward understanding risk. They just don’t know – so out of sight, out of mind. On the legal and financial side, you can bet they have some concerns. Even the business-ignorant owner is thinking risk, even if they have no idea how to manage it.

How Does Your Firm Define “Assessment”?

How does your firm define assessment? Probably depends on who you’re asking. But your entire team needs to know the answer if you’re going to leverage this amazing tool to grow your business. Everyone from the President, to sales leadership, to the engineers who perform the daily mundane administrative tasks, should know what the end-goal is when an assessment is in the works.

Does your engineering team think they lead the charge on assessments? Do sale reps disengage once an assessment is scheduled? Is “What scanner?” the first question being asked when you start out?

These are all indications of misunderstanding the role of assessment in sales. Assessments are the catalyst to business growth. They show the gap between what is and what should be. They open doors that would otherwise never be opened. They justify the expense of sophisticated security controls. They are the life-blood of your business. The very thing that will propel your company forward. And if your sales reps hate cold-calling and long drawn out sales cycles, this one tool should be their best friend.

Assessments are your most powerful marketing tool. They compel your prospects to take action, even when budgets are tight!

Is Your Prospect Giving You Pushback On Your Recommendation to Assess Risk?

This year, I’m urging your to drive toward assessments – in fact, I’m writing a book on it! More coming soon on how exactly to convince prospects to move forward. But to get us started, what happens when the prospect seems to resist this direction?

What do you do when your client/prospect sees your assessment as more cost, unnecessary, or is just too busy to take action? When I speak to business owners I expect them to be too busy, overwhelmed, and not focused on taking this next step. Yet, in almost every small, medium, or enterprise event I’ve spoken at in the past year (where we’ve offered some type of risk assessment) our conversion to an assessment has been nearly 100%. Meaning, if there were 43 business leaders in that audience, they all signed up to have their risk assessed by the hosting technology provider (my client)!

Did you catch that? 100%. Are these vanity metrics? Hyperbole? No! These are real numbers I track for every engagement I speak at. Understanding conversion, and how to measure and increase conversion numbers key to building your business, and with a qualified audience, you should be aiming high at this stage of the sales process. Everyone needs an assessment, few have had one, so it makes sense if the message is right – conversion should be high.

So don’t walk away when your prospect seems disengaged or hesitant. Instead, EDUCATE your prospect on what board members (or executive management) really need. Educate small business leaders on what’s at stake. And lead the way to safety.

The right education puts the deal back in your court.

In most cases, if someone has pitched assessments to your prospect in the past, they came from a technical frame of reference. Assume your prospect is there – thinking, network…

Your competitors tried to talk architecture, segmentation, router/switch configuration, encryption levels, wireless exposure, scans – inside and out, operating system (O/S) reviews (hardening, active processes, access rights, patches, etc.), and perhaps the website (code, SQL Injection vulnerabilities, etc.).

It’s all so technical…not at all interesting.

Only about 15% of the assessments I see ( and I see lots of them) convert to business (remediation and managed services). But over 90%, according to my friends on the security consulting side, reveal what they would call URGENCY.

This low conversion epidemic is like an oncologist, with a long line of patients, showing obvious signs on cancer in their blood work, but who are unwilling to enter any treatment plan!

Imagine such a doctor…he’s a failure!

He’s correctly diagnosed a deadly disease, yet his patients are failing to take action – even if the prognosis on treatment is good!

Security Breaches are Like Cancer!

They come on suddenly, are hard to detect, and left untreated, will kill the victim (your prospect). Understanding this makes all the difference. Every business leader you see is a possible cancer patient, ignorant of their fate. And your attitude has to convey urgency. Life and death.

What do you think? Leave your comments below…

PS. Trying to build the security side of your business? The Profit RICH Side? Get my free risk assessment template.

Need more clients? Read The House & The Cloud – the only book I know of written specifically to IT Services/MSP providers on how to grow the security business FAST!

© David Stelzl 2020

Happy New Year! Okay, Time To Get Serious About 2020!

Did You Have a Great Year? If So, I Hope You Celebrated…Now, It’s Time To Get Serious

But before we move into 2020, did you celebrate by encouraging your team? Did you reward those who contributed in big ways to your success? Do they know you love having them on your team?

Fact is, most employees feel under-appreciated, and with a new year in front of us, chances are they have their resume on the street in case a better opportunity comes up. Most people do – don’t kid yourself.

5 Things You Want To Do To Make Sure 2020 Is Better Than 2019…

There are probably more than 5, but let’s hit these biggies to kick the year off.

ONE: In case you missed the meaning of my opening paragraph, make sure you have the right people on the team (The Jim Collins proverbial bus), and in the right seat.  I was talking to my adult kids just the other day, comparing a company I ran in the late 90s to one where I served as a manager in early 2000.

Attrition in that first company was nearly zero. We let a few people go, but no one left of their own volition. We were a team and we produced big results. The second, more like a salt mine. People were treated as replaceable contractors and it showed. Your team is not going to give their ALL if they think of themselves as resources at your disposal.

TWO: What do you do?  It’s important to look back and check your own job description. I mostly work with business owners and leaders. I cringe when I ask them what they do and I hear “chief cook and bottle washer…” or some other sarcastic answer that says, everything from selling to taking out the trash. If you own or run the company, your job is business growth.

If your daily tasks look more like inside sales, admin, or book keeping, you’re doing it wrong. It’s easy to get lulled into thinking busy is good. Sometimes it feels good to be busy, but busy leads to non-strategic.

Four things – Business/Strategic (do this yourself), Admin/non-strategic (delegate this), Specialty/one time or infrequent – like building your website or launching a marketing strategy – (outsource this to an expert), Non-strategic/low value (consider stopping this). Lots of companies spend excessive time on busy work that doesn’t actually contribute anything to the long term success of the company.

(P.S. While you’re here, you should look out on your annual calendar and carve out some off-time. People who consistently take time off are more creative, more responsive, and just perform better. Get lots of sleep, exercise, eat well, and be ready for game-day, every day.)

THREE: Review Your Numbers. Do you know where your money came from last year? Where is it coming from this year? A couple of great exercises…

• Report your clients by Gross Profit… I bet you have a few big GP contributors. This isn’t margin, it’s money. How many clients are actually bringing in real money to your bottom line?  Then look at the low GP clients. I bet there’s a long list of single digit customers. Consider who you can grow quickly, or get them off your list. Todd Duncan, in his book Time Traps, points out spending lots of time cultivating these bottom feeders is a waste of time. Instead, spend your time on the top half of this list and ascend the profit ladder quickly. You’ll double your GP in no time.
• List your core offerings and what they’re worth on average. Go down the list and estimate realistically how much of each you think you’ll sell. If you know where you need to be to make a reasonable profit, a list like this provides a roadmap to get there.  But what if your estimates don’t get you there? Well, then you know you need to add something or change something.
• Review your operational budget. Not enough money? Marketing is not the first place to cut. Yet, that’s what happens. The problem is, your operational costs grow over time out of sloppy management, leaving you with a small bank account. Then when marketing comes up, there’s no money. Marketing is what drives growth, not a new sales guy.  So go through your monthly costs with a fine tooth comb and get rid of the waste. (Note: Less waste-of-time appointments will save gas and time, and if you’re spending a fortune on channel events that offer no real value, stop going.)
• Read Mike Michalowicz’ book, Profit First, and do what he says (except for his comments on debit cards – he’s dead wrong on this – and Mike, if you happen to read this, contact me or any security professional and we’ll explain why).

FOUR: Start thinking of your company as a marketing company…You sell MSP services or some other high-tech offering? Being technically great is important, however it won’t sell anything. Instead, have great tech-skills, but become marketing minded. This is how companies like IBM and Cisco did the things they did. Digital Equipment on the other hand was too technical. (If you’re young, you don’t even know the name – great technology! Bad marketing.)

And that means you need a great marketing plan. Hire someone to help you construct it. And remember, you can’t hire a full-time marketing person…they work for or own marketing agencies. Just like your top tech talent isn’t going to work for a small non-tech client, a real marketing person isn’t going to come work for you. If they say they’re a top marketer and they agree to work for you, they’re lying.

FIVE: Hire a Coach. That’s right, I’m a coach. So am I just selling here? No, because I hire a coach. I’ve had coaches throughout my 16 years in this business, even though I am a coach. Why?

Because when I launched this business, I sought out some very wise people, including my father. And here’s what he said: “You can’t get great counsel from your friends and peers – you have to pay for it.” He went on to tell me how his business struggled for years until he finally met the right mentor. Did it cost him? Yes, it was expensive…but, it made all the difference.

My father is 82 now, well invested, living out his remaining years in style. He’s able to help the people around him, care for his wife, and live comfortably because he made the money he needed, and invested it well. The lesson is, save your money and invest wisely – but in order to do that you need to earn the money. The mentor/coach is going to show you the shortcuts to earning, and keep you on track as you navigate the many hurdles that will come your way.

As Russell Brunson, successful entrepreneur and founder of ClickFunnels says, the pioneers who do it themselves are the guys with the arrows in their back.

Okay, time to get serious…pick a couple of these, comment with more ideas, and let’s get this year in motion!

PS. Trying to build the security side of your business? The Profit RICH Side? Get my free risk assessment template.

Need more clients? Read The House & The Cloud – the only book I know of written specifically to IT Services/MSP providers on how to grow the security business FAST!

© 2020, David Stelzl

Do this…Start making some notes right after the meetings you attend, and evaluate how effective they were.

Did you really need the hour or two you spent? Did all the people present need to be  there the entire time?  Probably not.

Lessons From Mr. Selfridge

Remember the TV show Mr. Selfridge?

Entrepreneur Harry Selfridge is building his department store in London. In one episode some of his staff come to his office for a meeting only to find there are no chairs. When asked, his reply – “I like short meetings.”

Stand up meetings are always shorter…

Why Are Meetings the Way They Are? A Few Observations…

Over 30 years in business, I’ve worked for really big companies (like Bank of America and Johnson & Johnson), and I’ve worked for really small companies…as well as mid-market.

I’ve also been involved in 3 start-ups, and my current privately owned business, now celebrating 16 years as of this month!  All that to say, I’ve been to lots of meetings.

There are different kinds of meetings. And there are some that deserve some time. For instance, the day-long facilitated planning meeting. Should it be all day?

If you have a professional facilitator, they can often get a month’s worth of things done in a single day. If you’ve never hired a professional facilitator to work out business strategy, direction, M&A activity, etc. it’s time you did…it will save you time in the long run. Aside from that, most meetings are just too long.

But most meetings aren’t that. They’re just meetings…

Some questions to consider:

• Why is every meeting 1/8 of your 8 hour day?
• How much is it costing you when someone shows up late?
• How often are people thinking out loud in your meeting vs. preparing ahead?
• How many of the attendees really need to be there?
• Did an agenda get sent out ahead?
• Are there specific goals?
• Are you meeting over lunch?

Things to Stop Doing…

Lunchtime meetings. Lunch is the only time you have to meet? Eat for 30 minutes, meet for 30 minutes.  Watch and observe – nothing really happens when the food comes. Don’t fool yourself… no one is actually accomplishing meeting agendas while eating.

Just Thinking Out Load. No! Stop…don’t think here with all of these people! Brainstorming, masterminding…these are all good exercises, but best kept for meetings specifically structured for them. In general, random thinking out loud wastes the group’s time.

Going Around the Room. Going around the room for status updates is extremely time consuming. What if everyone just submitted their update ahead of time in a short paragraph, and you used the shorter meeting time to give a brief update on things everyone needs to know, then ask any clarifying questions?

Allowing Late Comers to Waste Everyone’s Time.  How often are you sitting there waiting on people who really do need to be in the meeting? This happens all the time. It’s unacceptable. I know one company doesn’t allow the late comers in.

Got-a-Minute Meetings. (The GAM). And finally, stop the GAMs. This is possibly the biggest meeting time waster of all. The guy who wanders the halls, not really knowing what he’s trying to accomplish today, but insists on stopping in on people with the Got-a-minute greeting…no agenda, no goal in mind, mostly bored. It’s okay to say, “No, super busy today.”

Setting Meeting Times

I schedule 30 minute meetings…in fact, I have someone managing my calendar, keeping guard over how much time each meeting is set for. I notice when I let someone outside my organization send a meeting invite, it’s 60 minutes, no matter what the agenda is.

I’ve told my office manager, don’t accept anything over 30 minutes unless there’s justifiable cause. Aside from a training session (whole different kind of meeting) there rarely ever is…

Then at the start of the meeting I say, “I have a hard stop at ______!”

Are There Goals? Try this…

Before the meeting, write down the 2 – 5 things that have to be accomplished.

Can any one of them be accomplished without a meeting? Chances are the answer is YES.

So complete them before you meet. If you need approval, come with the completed goal to get the final stamp – might take 5 minutes if there are questions.

Sales meetings?

Even sales meetings should be short. If you have something valuable to say, come prepared to say it. Your close rates don’t go up with more time spent per meeting.

Track this, test it…see if I am right. In fact, your prospect will see you as more valuable, more important, in demand, if you let them know up front, you just have 30 minutes. (Check out Pitch Anything by Oren Klaff – a favorite of mine – he’s down to 20 minutes.)

Accomplish the goal, thank the group, and dismiss…even if you’re early.  Send out an email recap on what was accomplished and what action items need to be completed.

Is There a Meeting Agenda?

Goals defined – All meetings should have an agenda. Will there be introductions, different people presenting something, a vote? Accepting a meeting without an agenda is just asking to waste the hour.

Starting a meeting with, “Let’s see, what do we need to accomplish in the next hour,” is a good reason to excuse yourself from the meeting.

All of this should take place before meeting, be sent out, and reviewed by anyone attending.

Were People Prepared to Meet?

Preparation. The key to great meetings is preparation. How often is the person leading the meeting starting out shuffling papers, talking to themselves, or talking about last night’s ball game?

This too is a waste of time.

Social interaction is important – schedule time to socialize, or shorten meetings and finish work early so you can go out and socialize. Schedule a longer lunch for social occasions. But don’t make meetings your social hour.

With your agenda, make sure it’s clear in the meeting invite, what people need to do to prepare.

• Things to think about before you come.
• Things to write up or send me before the meeting.
• Specific numbers or summaries – send them ahead for review.

Who Has to be There?

How often have you sat in a meeting to hear someone reviewing stuff no one cares about? This is big at large company meetings.

My observation – few are interested or need to know all the details of what someone else is working on. If there are people who will have to complete certain action items coming out of the meeting, it doesn’t mean they need to be in the meeting.

Consider who really needs to hear what. Who will actually contribute? The more people you have in a meeting, the longer it takes.

This is Not Personal

Finally, don’t think I’m not social. I love social outings, parties, group activities, team building, even facilitated meetings. In fact, I professionally facilitate meetings! This is not personal…

It’s time management – to allow for more time on things that are important. More family time, more vacation time, more social time, even more selling time!

When I started at Bank of America, one of the first people I was introduced to told me, at Bank of America we meet all day and do our work at night.  What? And she was right…looking back, few of the meetings I sat in actually made any difference, and most didn’t need me to be there.  But I sure did attend a lot of them.

What meetings can your shorten right now or totally cancel to free up your day?  Let’s kick off the New Year with a new meeting mindset, and save a ton of time.

PS. Trying to build the security side of your business? The Profit RICH Side? Get my free risk assessment template.

Need more clients? Read The House & The Cloud – the only book I know of written specifically to IT Services/MSP providers on how to grow the security business FAST!

© 2019, David Stelzl

Too Many Clients? Here’s How You Can Get Rid Of Some…Just Start Acting Like My Local Cable Provider…

I recently relocated, switching my Internet service and shutting off the old. I might have been continuing with Spectrum – They didn’t bother to ask, but here’s what happened…

You know the black box sitting on your desk or table (or perhaps the floor behind the desk)? It’s the cable provider’s in most cases…leased to the customer. And it has to be returned when the service is shut off…

In my case I was simply transferring the service to another name.

However, as it turns out, I had shut the service off and just started over…so after relocating, the modem did have to be returned after all…Just drop it off, right? Simple…

But no… I wasn’t sure what they wanted me to do with this thing, so I called…

20+ minute hold time!

At least they told me up front. Maybe they should install one of those systems that lets you enter your number for a call back…they didn’t have one of those either.

So, I’m not going to sit on the phone for 20 minutes…

I could have Googled this, but since I was headed in their direction, I threw the modem in the back seat and stopped by the store.

Walking in, I noticed one attendant at the counter, one customer being helped, and about 25 people standing around looking at displays or sitting on a couch (very limited seating).

Feeling confident, I marched up to the counter, at which point another guy showed up to help out…I asked him, “Can I drop this off here?” His reply, an unenthusiastic, “Yeah, you need to sign in…”

Looking over at the crowd of 25 I asked, “Are all these people waiting?” …”Yeah,” he said flatly.

“That looks like a 2 hour wait!” No response…

So I left, fully intending to file a chargeback if they tried billing my card for this thing.

Feeling energetic, I decided to Google this issue at home…and sure enough, you just drop the box off at UPS, they pack and ship, and there’s no charge. Simple! Why couldn’t the customer service guy at the store just tell me that?

The truth is, few people really care unless they’re paid on commission or relying on net profits from their company…Jack Eckerd (Eckerd Drugs) wrote a great book years ago, Why America Doesn’t Work, where he points out, few customer-facing employees have any skin in the game and almost no reward for doing it right.

What are you doing to make sure your team is customer focused, well rewarded for doing the right thing, and on the hook when communicating disinterest – or even worse, down-right poor customer service? Comment below!

PS. Trying to build the security side of your business? The Profit RICH Side? Get my free risk assessment template.

Need more clients? Read The House & The Cloud – the only book I know of written specifically to IT Services/MSP providers on how to grow the security business FAST!

© 2019 David Stelzl, CISSP

The Strength of Your Team Depends On the Quality of Each Person You Bring On – Here’s How to Make Sure You Attract the Right People…

This past week one of my clients and I were brainstorming on talent acquisition – attracting GREAT TALENT.

(Note: This post is not about vetting – something I’ve written about in the past and requires some serious thought in addition to initial attraction.)

What Are You Offering? What Should You Be Offering?

It’s no surprise – finding top talent is hard. The media can go on about unemployment stats forever – like there’s lots of people out there (although unemployment rates are at a 49 year LOW right now!)

No matter how many millions of people are out of work – finding great consultants and sales people is just plain hard! Just finding someone who shows up on time and actually works can be a challenge.

That said, it’s common for the small business entrepreneur to skinny down salaries and benefits to make ends meet. It’s also common for larger companies to have bureaucratic policies that prevent hiring managers from offering top talent an attractive package.

Your people are one key asset you can’t skimp on, so here are some things to consider in the ATTRACTION phase…

• Salary plus commission…Pay people more! In my past IT-Services leadership role I used commissions to give systems engineers and consultants a way to boost income – their personal contribution to the bottom line drove their salary up. Of course those who didn’t bring in money were left with smaller incomes…as it should be.
• Vacation and Sick Time…Here’s an easy one. Do you really need your employees to earn their vacation? Next year they get the entire vacation, so get used to it and just give them the weeks on day one.  Let’s take it a step further…did you know people perform better when they’re rested? Work life balance isn’t just a wanna-have, it helps your employees be better employees. So what would it cost you to give them more time off? 3 weeks, 4 weeks…I have one client who offers 5 whole weeks on day 1!
• Training…more certs, more experience. What do systems engineers really want? Money? Well, we all need money, but career advancement is so much more important to the kinds of people you really want. So do you help your engineers grow? Most companies don’t. Be one that does.
• Team Building…identity. Turns out (according to the brain science people I study) that identity is a key factor – people want to belong to something – a movement, success, something… don’t treat your people like replaceable contractors. Do you have a team? A true identity group going in your work place? Again, this takes some work, but it pays off in long term commitment, harder workers, and the attraction of top talent.
• What else can you add here?

Okay, You Have Some New Benefits – What Can You Do To Attract?

Especially in smaller companies, it’s expensive to recruit – recruiters charge a lot and don’t often come up with great candidates. But you need just that – great candidates (Plural!) to compare….

What does your website say? We’re hiring? Pretty boring, and not at all differentiating… So how can you take your benefits (above) and turn them into a lead magnet for recruiting?

Let’s rephrase…can we create comparisons on the things a candidate would really want?

• We offer 50% more vacation days than most of our competitors….and you get them on day one, without earning them!
• We offer comp plans paying as much as 3X what our competitors pay. (You can do this if you have a few SEs making big commissions – because they are big producers!)
• We offer 75% more training and certification opportunities than our competitors…
• Our company invests X% more in leadership training, team building, and… opportunities…and we include our technical team in achievement rewards such as quota club trips (which your competitors probably don’t even have!).

Make it Look Great…Use it!

Remember this is marketing…so get a copywriter to PUNCH IT UP! I’ve said this so many times – copywriting is an art – a skill that takes years of study and practice, coaching, mentoring…so stop trying to do it yourself and outsource this one page.

When it’s great…forward it to your recruiter contacts. They aren’t marketers either…so do the heavy lifting for them. Just like you need marketing materials from a manufacturer or cloud services provider in order to really sell their stuff, recruiters will come up empty unless you provide the resources they need to market your firm as the go-to work place in town!

What else are you doing – comment below and let’s exchange some ideas!

© 2019, David Stelzl

PS. Trying to build the security side of your business? The Profit RICH Side? Get my free risk assessment template.

Need more clients? Read The House & The Cloud – the only book I know of written specifically to IT Services/MSP providers on how to grow the security business FAST!

Learning to Do Hard Things…

(Yes, it’s raining and seriously muddy)

Joe DeSena, founder of Spartan Races, writes in his book about doing the hard things. Finishing, not taking the shortcut, not giving up when the going gets tough.

It’s actually a brain skill we either learn or don’t learn in our early development years, writes Dr. Jim E. Wilder, in his book, Joy Starts Here. A skill we lose by age 12 if not properly fostered.

The Spartan Races were developed for those who didn’t necessarily get that brain skill in the first 12 years of life – or if they did, keeping it going. Building a new identity that is willing to keep going.

It’s no different in business. Starting a business is easy, keeping it going is hard.

Making it past the first year is a challenge, making it through the second, even more so. As businesses change and commoditize, reinventing can be even harder.

This race pushed me to my limits – 13+ miles of rugged terrain, 5 hours of constant rain and drizzle, in the 40s all day.  Many dropped out by the 8 mile marker…

What does it take to keep going when things aren’t going well? Part of our success was my team…My oldest son and I pushed through together. I couldn’t have done this alone.

Not that he physically carried me or anything – we encouraged each other to keep going, kept talking, sharing stories of past experiences, and kept our spirits high, focusing on joyful things, not the mud and rain.  Second, we had our coaches. We trained for this, consulted videos, practiced in earlier races, and trained to succeed before showing up on race day.

This is why I use a business coach, and it’s why I entered the business coaching business 16 years ago.  Like with the Spartan Races,  I believe in coaching – it takes more than sheer will power to push through hard things…it takes learning, learning the brain skills, the strategies that work, and getting the push to keep going.

© David Stelzl, CISSP – 2019

P.S. Happy Thanksgiving Everyone!

Calling on small business? Your prospect’s IT is being managed by their nephew, brother-in-law, or some other relative.  Can you win this business? What should you do?

I get this question all the time. They’re related, but you know the IT guy isn’t qualified to handle today’s IT demands. You have people, certs, vendor relations, and a strong track record in MSP services. But winning this deal seems impossible. What should you do?

First, Don’t Compete Head to Head…You Can’t Win That Way

Trying to get the nephew fired never works. So don’t.

Instead, change the rules…

This is where security really shines. Their nephew (or cousin, brother, mother’s sisters’s son’s brother-in-law…I could go on) isn’t going to say, “you’re better”, and they probably don’t want to destroy family  relationships (even if they see your value).

However, getting them to admit they could use a third-party security review (where you include, not stomp on, the relative) isn’t hard…

Next, Introduce The Stuff They Can’t Provide, But Need

From there, your best bet is to work alongside to remediate, but introduce MSSP technology – not available to that relative. (Use my assessment template below and you’re sure to uncover some urgent stuff!)

An endpoint security solution, backed by a SOC (Security Operations Center) can’t be easily matched, but does complement that IT person’s role. If the company’s big enough, a SIEM solution can be added. While label someone else’s solution unless you’ve made a big investment to build one of these…

Years ago, while running a technology services company, our small firm managed to break into Michelin, Visa, First Union, and other whale-size accounts, by keeping our eye only on those security niche offerings others weren’t providing.

Over time we crept into product and services sales, showing the client savings by working with one provider capable of doing the entire IT thing.  (Some patience pays off here).

Will they always let you expand your business? No…

However, the money is in the high-valued services, not patching Windows machines. And if their server ever does crash, you just might see them becoming one of the 55% – those who can’t actually recover from a backup.

© David Stelzl, CISSP – 2019

P.S. This all starts with the security assessment – check out my simple high-conversion template here. It’s free just for reading this far!

Need help selling high-margin security? Read The House & The Cloud…

Live Events…These 15 companies couldn’t say thank you enough after my client hosted this live event. Did  they know it was a sales call? Well, we did make an offer – and they did sign up!

If you’re not providing super-value to your clients – before they buy, you’re missing the mark…and hosting live events with a speaker (Not your local channel manager) is part of it…Business leaders like learning when it’s relevant, focused, high-value, and entertaining.

You can find out more about how this event went down on today’s podcast on SoundCloud, listen and subscribe…  https://soundcloud.com/stelzl/ep-101-v2a-the-event-marketing-strategy-that-works

© David Stelzl, 2019