The Book / Elioz Rabin / Opus Publishers
Published in The Marker
Magazine, Fabuary 2008, in "The
Management Bookworm" column written by Ari Manor, CEO of ZOOZ.
Elioz Rabin has extensive marketing and sales experience. Among the rest, he previously served as Head of the Life Insurance Department at the Phoenix Insurance Company, as VP of Marketing and Sales at Bituach Yashir, and as CEO of Neviot, Yedioth Communications and Autoserve. Elioz, an unconventional manger, has now written a new book published by Meter, which is a practical guide to anyone engaged in management, marketing and sales. Elioz wrote his book out of a great love for marketing, and mainly out of enjoyment, humor, and to shoot from the hip.
For example, he gives his book the pretentious title “The Book” (and designates it to anyone wanting to work “by the book” and never knew where to find this “book”). He also combined humor and nonsense in the book, and obviously fictional and fallacious quotes and references (in accordance with his belief that words do not need to be based on facts, but the opposite – they create a new reality). Elioz even entices the reader the develop new insights and not to devoutly follow what is written in the book. In this context, he quotes Groucho Marx: “These are my principles! If you don’t like them, I have others!”.
The insights in the book are challenging and surprising. For example – in the field of sales management: Elioz asks the readers not to pay salespeople that meet their goals commissions and bonuses! Why not? In principle, Elioz claims that a salesperson with a handsome fixed salary will be happy to do his part for the organization, while paying commissions disconnects and alienates him from the organization. At the practical level – objectives actually lower the sales averages… a clear goal will only energize the salespeople that approach the goal in any case, while those with much higher achievements will sell less (and leave available sales for next quarter’s bonus) and those with much lower achievements will only be discouraged by the goal and subsequently harm their performance.
According to Elioz, it is better to measure salespeople according to activity and not results. For example, to measure the number of meetings per day, the number of sales per day, and the average order size. And if they are already being rewarded for results – it’s better to do it as part of a weekly promotion (marathons) – without setting a clear goal – so that they will really make an effort because it is not clear when the goal was met. An entire chapter of the book deals with managing sales marathons with an emphasis on inventing a fantasy world (without clear objectives) that will challenge the salespeople. Elioz, who himself developed the first sales marathon in Israel, shares with the readers the lessons learned from several successful marathons, in which the sales rate was increased by tenfold or more.
Another chapter in the book explains why it is preferable to invest in processes and not in employees. A good and effective process provides customers with a satisfactory solution, making the need to train employees to handle complaints and serve customers superfluous, for example – Automatic Teller Machines (ATMs) enabled bank customers to withdraw money almost instantaneously, using self-service, instead of waiting 15 minutes in line and being served by the bank tellers, as good as they may be. Customers, claims Elioz, are definitely prepared to serve themselves if it makes the process more efficient. As evidence, the Arcaffe chain requires its customers to stand in one line to order, and in another line to receive their orders, and still provides a good service experience in the customers’ opinions. Similarly, if the insurance company automatically returns incomplete policies to its agents (lacking all the required information) – the insurance company saves an entire department of finance managers, the agents get their commission, and the policy becomes effective and reaches the insured parties within a day or two instead of within weeks.
The Book includes insights that are no less important about marketing communication (for example – how to appeal to customers in a language they understand, instead of using professional jargon), about how to energize employees by depriving them of the satisfaction they so desire (for example – whoever craves prestige should make an effort so that he can be rewarded with a private meeting with the CEO), about how to develop a brand (without paying millions to a branding company), and much more.
From next year, The Book will be a compulsory read for Business Administration students at Tel Aviv University, and I recommend reading The Book even if you are not a student. This is a special book that is thought provoking, even if it is studded with humor and despite the fact that some of what is written in it is controversial and won’t always work. Don’t be fooled – the book is based on a significant amount of practical experience, and can change the way you work and add a great deal to your line of profit. This management bookworm enjoyed itself, grew wiser and has already changed a bit. Now it is your turn to think, internalize and profit.
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