| Recent legislation enacted by the State of | | | | average time spent on cold calling was an hour |
| Maryland forces employers with more than | | | | per day. They were also very pleased to learn |
| 10,000 employees to spend a minimum of 8% on | | | | the number of prospects and hour of cold calling |
| health care. Known as the Wal-Mart law, because | | | | would unveil. Dollar signs pierced their cranium as |
| Wal-Mart is the only employer in the state directly | | | | they thought about the prospects to their agency. |
| affected by the law, it seeks to recoup dollars | | | | Obviously it had to be mandated that every |
| the state contends Wal-Mart is costing their | | | | agent spend an hour a day, preferably between 9 |
| Medicaid fund. Thirty other states are considering | | | | and 10 each morning.In the case of my client this |
| similar legislation.The 8% figure was arrived at | | | | cold call period was a time that he normally was |
| because that is the "average" being spent | | | | intensely involved in networking. The demand of |
| nationally by large corporations.Throughout the | | | | being in the office to make the cold calls required |
| years, Wal-Mart worked very hard at keeping | | | | that he spend his primetime at networking to |
| prices low. As an executive with Kmart, I met | | | | make cold calls. His talents and personality lent him |
| Wal-Mart executives at many conferences and | | | | towards networking. In fact he was excellent at |
| seminars. With every product they sold their | | | | networking. However he struggled with cold calling. |
| desire was to find a way to increase efficiencies | | | | Actually "struggled" is too mild a word. He hated |
| so that they could reduce the cost of every item | | | | cold calling. He came off as cold, scripted, and |
| they sold. Most of the efficiencies were in the | | | | uncaring. He rarely was able to close a deal when |
| distribution channel, however at the same time | | | | the initial contact was via cold calling.On the other |
| they were finding ways to keep overhead low. | | | | hand, while networking he was in his comfort |
| One such way was to keep employee costs | | | | zone. He was able to get strong leads and even |
| down.The mystique of Wal-Mart and how they | | | | encourage the lead-givers to introduce them to |
| grew to be the universe's largest business, with | | | | the prospect. Once he had to take his time away |
| an economy greater than all but 20 nations, is | | | | from networking to make cold calls he fell from |
| that Wal-Mart is consistently the lowest priced | | | | being one of the top five salespeople in his office |
| retailer. This means that from a percentage | | | | to a bottom dweller. Sure his cold calling was now |
| viewpoint Wal-Mart is spending less on many | | | | at the average of one hour a day. However it |
| items including total employee cost, the cause to | | | | was his networking that put black ink on the |
| move merchandise, the cost to transport | | | | bottom line.The sad part is that the agency |
| merchandise, expenditures on real estate, and | | | | thought they had a win-win. The cold call average |
| much more. Once any of those elements changes | | | | went up. Because they were focused on the cold |
| significantly, Wal-Mart must seek another way to | | | | calling, they did not realize that his sales had gone |
| keep prices low or to raise prices.The latter is | | | | down. What they thought was a success was a |
| what the Wal-Mart attackers are seeking. The | | | | failure in my client's eyes. Soon he became |
| two largest groups battling Wal-Mart are | | | | discouraged and moved to a different |
| comprised of individuals from organizations that | | | | company.ConclusionWhen we focus on the |
| have much to gain if employees are unhappy or if | | | | average, we tend to focus on the fact that we |
| Wal-Mart prices were higher. By raising Wal-Mart's | | | | are improving below average statistics. We tend |
| expense on health care Wal-Mart will be distracted | | | | to overlook that we are also reducing the |
| by finding other ways to keep their prices low. | | | | performance of our best performers. So it is with |
| The hope is they will be unable to do so, making | | | | every aspect of an organization. We must look at |
| Wal-Mart a less fierce competitor.Obviously if | | | | the entire picture. If we do not look at the total |
| Wal-Mart is large enough to be Maryland's only | | | | personality of our organization, our competitors, |
| large employer spending less than the average, | | | | and most importantly our people, we will |
| once they begin to spend the average, the | | | | constantly be seeking to drive to the average. If |
| average will go up. To be consistent this would | | | | successful we will be just that, average. The bad |
| require new legislation to raise the threshold, thus | | | | news is that inter-organizational and interpersonal |
| creating a never ending cycle.The sport of hating | | | | competition does not allow those that are |
| Wal-MartIn some circles, hating Wal-Mart has | | | | average to be successful. To succeed one must |
| become a sport. However this overlooks recent | | | | be above average, particularly in the areas that |
| studies that have shown the American economy | | | | our customers and employers are most |
| has a lot to be thankful for when it comes to the | | | | interested.In the case of Wal-Mart and healthcare, |
| mega-retailer. The studies show that Wal-Mart has | | | | if Wal-Mart spends more on health care than the |
| been instrumental in keeping consumer prices low | | | | average, the average will be driven up. Then using |
| across the board. Certainly Wal-Mart is the | | | | the "average" as the barometer, those below |
| low-price leader. When Wal-Mart first enters a | | | | average will come up to average creating a never |
| town the local mom-and-pop retailers think that | | | | ending spiral. Wal-Mart will not give up their price |
| they must compete with Wal-Mart on a price | | | | leadership, making this game of playing averages |
| basis. This price distraction is the real culprit when | | | | with healthcare expenditures will result in higher |
| it comes to local business failure following the | | | | prices for everyone.Rick Weaver is an |
| Wal-Mart grand opening.As with any business | | | | accomplished business executive with a wealth of |
| strategy if you can recognize your competitor's | | | | experience in retail, market analysis, supply chain |
| strengths and weaknesses you can develop a | | | | enhancement, project management, team building, |
| plan to overcome those strengths and | | | | and process improvement. Building on a strong |
| weaknesses. There are many things that | | | | retail background, Rick moved to full supply-chain |
| Wal-Mart will not do. For example, the need for | | | | involvement, working with hundreds of companies |
| high volume prevents Wal-Mart from carrying | | | | to improve sales, processes, and bottom-line |
| specialty products. Local retailers with the insight | | | | results.As Rick's interaction in varied industries |
| to focus on the consumer need Wal-Mart cannot | | | | expanded, he became troubled as he increasingly |
| meet are the local retailers that thrive off of the | | | | noticed that people and companies had untapped |
| increased traffic created by the low-price | | | | or unfocused talent.Coupled with Rick's passion for |
| discounter.Why below average is good for | | | | training and development, popular style of |
| salesThere is nothing inherently wrong with | | | | interactive workshops and seminars, and strong |
| seeking to raise "below average" to "average" | | | | desire for continuous improvement, he founded |
| performance. Sometimes a focus on one | | | | Max Impact Corporation to be singularly focused |
| "average" may distract an employee or an | | | | on helping individuals and organizations achieve high |
| organization from another "average", or even an | | | | performance.Rick is a popular speaker at |
| "above average".Last year I was coaching a | | | | seminars, workshops, and conferences. He has |
| financial planner. His organization noted that not all | | | | spoken in 43 states, including Alaska and Hawaii, |
| of their planners were doing their cold calling to | | | | and in Canada and Puerto Rico. He is available to |
| find new clients. Their research showed that the | | | | speak at groups of all sizes. |