April 8, 2008
The 30% Rule of Leadership and Communication
Posted by Gretchen Anthony under Business Communication, Everyday Communication, Management, MarketingSo, last week I argued that effective leaders function as individual, walking, talking sales and marketing teams for the interests they represent. To make my argument I referred to a post by John Jantsch, author of Duct Tape Marketing and the Duct Tape Marketing blog titled, “Those idiots in marketing just don’t get it.” In it, Jantsch provides his personal definitions of marketing and of sales. He writes, “marketing is - getting someone who has a need to know, like and trust you. Now let’s blend in my definition of sales: sales is - taking know, like and trust and converting it to try, buy, repeat and refer.”
So, how should the leader as communicator plan to balance their marketing and sales efforts? It goes without saying that I have a theory on this. Shoot for 30%. If you’re effective with the group you lead, you shouldn’t have to invest more than 30% of your time maintaining a sense of like-ability and trustworthiness. But invest less than that and you’ll run your well dry.
Take a look at what I mean (finally, a chance to chart!).
Getting Swampy
The leader who spends the majority of his/her time getting known, being liked and
gaining trust doesn’t have much time left to motivate others to “buy” their concepts, to move on their ideas. Concentrating on the relationship is perfectly appropriate during certain leadership phases such as taking on a new group or a new role. But once they know you, you’ve got to get selling. You’ve got to use the capital you’ve earned. Like water in a pond, too much attention spent on being liked (and not enough on putting ideas in motion) and you’ll overrun your borders, turning the fertile farmland of your relationships into a swampy slog.
Forecast: Drought
Just as being overly concerned about relationships can dampen your influence as a
leader, a lack of concern for them can drain your well of influence dry. No matter how established and successful a relationship, asking someone to invest their time and energy on your behalf is ultimately a one-sided proposition. People who hold great amounts of trust and respect for you may occasionally be willing to act and take risks on your behalf without asking much in return. But even the greatest devotion is finite. Spending time to understand how others stand to benefit from acting on your requests keeps your relationships well-irrigated and tended.
As Goldilocks said, This One is Just Right
So, how did I settle on my 30% rule? Primarily because it just feels right. But there is a little more to it. As a general rule, companies looking to grow their sales and market
share spend about 25-30% of their operating budget on marketing. As a business professional, you’re not likely looking to stay in your current position for the rest of your career. You’re probably looking to grow, and in order to do so you must increase your level of recognition, power and influence within your organization. That means a good 25-30% of your time is marketing. But let’s face it, a business isn’t a business if it doesn’t sell and a leader isn’t a leader if he or she doesn’t get things done. So, what’s not spent on establishing and maintaining relationships has to be spent on selling.
Like I said, 30% — it just feels right, doesn’t it?