More B-Schools Add Sales Courses

Ronald Alsop:

A company’s sales force is its lifeblood. But you’d never know it by looking at the typical M.B.A. curriculum.

Because they’re lighter on theory and research than other academic subjects, sales courses are surprisingly scarce in M.B.A. programs. “It’s sad that something as important to the economy as sales shows up as a footnote in the principles of marketing course at most graduate business schools,” says Andy Zoltners, a professor at Northwestern University’s Kellogg School of Management, which has long offered a sales-force management class.

But the sales function seems to be slowly gaining more respect as a few other major schools, including Stanford University, the Massachusetts Institute of Technology and the University of North Carolina, create M.B.A.-level sales courses. Harvard Business School has taught sales management for many years, but lately it has been focusing more on the selling process itself, with lessons on making sales presentations to corporate customers, influencing people and closing the deal.

“Many people view selling as tactical and haven’t taken the broader view that you will need sales skills even if you aren’t managing a sales force,” says David Godes, an associate professor at Harvard. “If you’re going into banking or consulting, how do you get clients and how do you raise money?”

It’s about time. Superior salespeople are always in short supply. They succeed based on solid, long term relationships.

Godin on Financing Your Startup

Seth Godin:

I’m frequently asked (by friends, and sometimes, aggressive strangers) to help them find someone to fund their company. Often, but not always, these people are happy to hear the following answer.

1. If you fund your company, even a little, you’ve just sold it. Maybe not today, or tomorrow, but one day. That’s because rational investors are funding your company in the expectation that you are going to sell it and make them a profit. (sure there are exceptions, but not many). So, if you don’t expect that your company will be easy to sell for a big profit, or you don’t ever want to sell your company, it’s not a smart idea to raise money for it.

Dealer Activism for GM’s Embattled Chairman

Lee Hawkins, Jr., Monica Langley and Joe White:

Besides Mr. Fisher’s statement, Mr. Wagoner recently has won the backing of two prominent GM dealers. John Bergstrom, chairman of Wisconsin-based GM dealership chain Bergstrom Automotive, sent a letter to the board late last week to “share with you my total support and respect for Rick Wagoner…who has earned the respect of all of us in the retail network.”

Another dealer, Carl Sewell, who has 15 GM franchises in the Dallas area, recently began talking to other dealers to say, “We need to come to our company’s and Rick’s defense.” GM is providing his dealerships with “the best product we’ve ever had,” he said, adding that Mr. Wagoner is “a wonderful human being of intellect and integrity.”

Long Term Rates Creep Higher

Mark Whitehouse and Serena Ng:

After stubbornly resisting nearly two years of prodding by the Federal Reserve, long-term interest rates are on the rise, a trend that could eventually slow the nation’s expansion.

Yesterday, the yield on the 10-year U.S. Treasury note — the foundation for long-term interest rates — rose as high as 4.905%, matching a two-year peak set in May 2004. Some analysts believe the yield is on a run that will take it above 5%.

The upturn, spurred by deepening economic growth in the U.S. and abroad, is pushing up the cost of a widening range of consumer and business loans — including 30-year mortgages and corporate bonds — from extraordinarily low levels.

Google’s $2Billion Stock Sale

Blodgett:

It must want to buy something. No other conceivable explanation jumps to mind for why a cash-gushing monster with an $8 billion war chest would toss away another 5 million shares in tonight’s shelf filing.

Scheduled 2006 big ticket items are $1 billion to AOL for the search deal, $1 billion (rumored) to Dell for the Google Pack deal, and $1-$2 billion for capex, all offset by an estimated $2-$3 billion of positive cash flow. Add that together and you get a net 2006 cash outflow of maybe $1 billion, leaving $7 billion on the balance sheet–more than enough to compete with anyone except…

Making a Market in Talent

Lowell L. Bryan, Claudia I. Joyce, and Leigh M. Weiss:

Savvy companies understand the competitive value of talented people and spend considerable time identifying and recruiting high-caliber individuals wherever they can be found. The trouble is that too many companies pay too little attention to allocating their internal talent resources effectively. Few companies use talented people in a competitively advantageous way—by maximizing their visibility and mobility and creating work experiences that help them feed and develop their expertise. Many a frustrated manager has searched in vain for the right person for a particular job, knowing that he or she works somewhere in the company. And many talented people have had the experience of getting stuck in a dead-end corner of a company, never finding the right experiences and challenges to grow, and, finally, bailing out

UW Grad Carol Bartz Offers Tech CEO Advice

Carol Hymowitz:

Carol Bartz has outlasted most CEOs of big companies. She has been chief executive of Autodesk for the past 14 years, when the median tenure is just five years. She led the Silicon Valley software company through economic ups and downs. In May, Ms. Bartz will relinquish her CEO post and become executive chairman. But her longevity as CEO gives her a rare perspective on what it takes to weather mistakes and business cycles and to be an agent of change.

Don’t rest on your honeymoon-period laurels.

When she first became CEO, Ms. Bartz joked that her task was “playing Wendy to the Lost Boys of Autodesk.” The company had one product, profits were sagging and employees, who brought their dogs and cats to the office, weren’t used to answering to anyone. Even by Silicon Valley standards, the atmosphere was chaotic, choking creativity.

What’s the Biggest Change Facing Business in the Next 10 Years?

Fast Company:

In Fast Company’s first decade, we introduced readers to a lot of amazingly smart people. To launch our second, we asked 10 of our favorite brains what’s next–and how to get ready for it.

I think Malcolm Gladwell nails it, business will become much more active in political issues:

“Business has to find its national voice. It has to be engaged in the politics of this country in a way it’s not accustomed to. Right now, executives are very good at saying, ‘Cut our taxes, cut our regulations.’ And they’re really terrible at making far more important and substantive arguments about social policy. It’s time they stopped banging this one-note drum and started saying that a lot of the things that have been relegated to ideology are, in fact, matters of fundamental international competitiveness for this country.

Take, for example, health care. We are ceding manufacturing jobs to the rest of the world because we can’t get around to providing some kind of basic, uniform health insurance. Because of our strange ideological problem with nationalized health insurance, we’re basically driving Detroit out of business–which strikes me as a very counterintuitive, nonsensical policy. The simple fact is that GM and Ford and Chrysler cannot compete in the world market if they’re asked to bear the pension and health-care costs of their retirees. Can’t be done. It’s that simple.

Why Don’t More Businesses Use Prediction Markets?

Tyler Cowen:

Last week in The New York Times (TimesSelect), Joseph Nocera quoted Robin Hanson as saying private businesses had not made a breakthrough with the use of idea futures. It seems natural to let your employees bet on future business conditions, the success of product lines, or broader questions of corporate strategy. Microsoft and Google and a few other companies have played with the idea, but it does not (yet?) seem to be taking off. Why not?

  • Prediction markets threaten the hierarchical control of top managers. It would become too obvious that most managers are idiots, unable to predict the future.
  • Prediction markets make a big chunk of the bettors into “losers.” Yet within a company morale is all-important. Businesses proceed by soliciting feedback, and by reshaping their plans to pretend that everyone is on board and has an ego stake in the final outcome. Prediction markets make this coordination more difficult. Once people make bets, they start rooting for their bet to win and for the other bet to lose. They move away from maximizing the value of the firm and develop an oppositional mentality vis-a-vis other employees. Furthermore it is disruptive to have a running tally on who are the winners and losers each day.