The Human Dynamic Factor: The Key to Increasing Top-Line Sales and Minimizing Bottom-Line Costs

By Steve Gavatorta

In consulting with clients, I find that there is one constant empowering them to achieve their objectives. That constant is what I call the human dynamic factor. By that I mean the ability to successfully leverage relationships with others through mastering the art of effective communication. This includes understanding and aligning to communication styles and knowing how others behave, communicate, are motivated, make decisions, and deal with change, risk and conflict. If you can connect with others by better aligning in these areas you’ll be much more successful in any endeavor. Whether you’re in sales or a leadership, managerial role, or are a business owner, your ability to effectively interact, connect and communicate with others is the key to success.

There are other external factors that hinder the ability of a company to achieve its goals – many of which are within the span of control while others are not. However, the one that is definitely within control is the human dynamic factor.

The two key areas where the human dynamic factor most influences an organization are in increasing top-line sales and minimizing bottom-line costs.

• Increase Top-line Sales - In organizations, the ability of sales personnel to clearly understand their customers’ needs and then to effectively provide and communicate solutions to meet those needs is crucial. These companies differentiate themselves to grow top-line sales. However to do that, sales personnel must be effective communicators, first by drawing out true customer issues and then effectively delivering and communicating relevant solutions.

• Minimize Bottom-Line Costs - Many organizations have highly unproductive employees and incredibly high turnover. The cost of turnover can be staggering, reaching as high as 8% - 12% of base salary. Now, some turn of poor employees is good. But when the turn is extraordinarily high it really digs into costs and affects the overall stability of business. So if managers and leaders are not effectively connecting and communicating with their staff there could be some very unhappy, unproductive employees. If the environment is full of turmoil, confusion and ambiguity, this can hurt morale, increasing turnover, which is devastating to the health of the business.

To illustrate my points, I’ve listed two industries where there is a direct correlation between effectively leveraging the human dynamic factor and successful top-line results and/or minimized bottom-line costs.

Pharmaceutical Sales – Like most sales companies success includes connecting with the end user, in this instance the physician. But there are many dynamics that go along with connecting with that physician. It includes physician office personnel that may act as a barrier to physician access. My clients focus on three areas where success is achieved with effective communication.

o Office Penetration – When sales personnel are able to connect with all gatekeepers, nurses, administrators and staff, they have better access to the physicians and secure better, overarching results.

o Getting Time – When you effectively communicate and connect with the physicians you in turn get more “face-time” with them to educate and sell them on your product. o Building Market Share – When you get more face time, you can build rapport, understand their needs and sell them to write your product…which builds market share and sales.

• Hospital Systems – In hospital systems, human interaction and communication is vital and can affect both top-line and bottom-line.

o Improving Patient Safety – When nurses better communicate and connect with patients, they are better able to improve patient safety. When patient safety is strong, results and outcomes are improved. This creates a word-of-mouth result that entices others in the community to use that facility…growing market share

o Improving Patient Outcome Surveys – When nurses and physicians are connecting with patients and their families the hospital stay will not only be productive from a health perspective, but also from a satisfaction perspective. This positive experience, along with patient safety, can have a positive response on outpatient surveys which leads to more patients selecting the hospital for future use…again growing market share

o Minimizing Unwanted Nurse Turnover -- If nurse team leaders are effectively communicating, connecting with and motivating their staff, overall morale will improve, minimizing unwanted turnover of quality nurses. Turnover of nurse staff is very high in hospitals and the human dynamic factor plays a huge role in keeping the talent…a benefit for the top and bottom-line.

These are just two industry examples where the art of positively leveraging human capital has great value. Now think of the business, industry in which you work – are you effectively leveraging your human capital? Are your sales personnel effectively communicating with ALL key decision-makers and gatekeepers to accurately find out their issues, delivering and communicating solutions to meet those needs? Are your managers and leaders effectively leading, coaching and motivating staff to create a healthy productive work environment – which in turn will increase productivity and minimize unwanted turnover? These are important questions to ask yourself because they will determine the long-term sustainability of your business.