Milestone Group Quarterly: April 2008
Articles
Milestone POV:
It's a Groovy Time for the Wireless Sector by Gary Cohen,
Milestone Group Principal
I've just spent seven full working days at the World's two largest mobility conferences. (Trust me, that's a very short timeframe.) It equated to a massive amount of bonding with exactly 100 thousand of my closest industry colleagues. Over the years we have been a good bunch for comparing conquests, commiserating collapses and celebrating successes. This has all been done with the aid of corporate sponsors who graciously host libations at the world's premier venues, through both the good and the great times.
This year began like all previous years for the cellular industry. Rumors of mega-mergers, threats from outsiders and revolutionary technology are whirled up through the trade rags like another American Idol season premiere. However the conferences (GSMA World Congress in Barcelona & CTIA 2008 in Las Vegas) did not unfold as they had in years past. There were no grand announcements, no groundbreaking technologies, and no corporate collapses. And yet, these two gatherings were, in my mind, the most optimistic and exuberant conferences of this decade.
I don't remember the high school teacher that introduced me to "Maslow's Hierarchy of Needs". Nor can I recall the names of the 8-10 college professors that either chose to include it in their curriculum, or were obliged by virtue of the required textbook. What I do know is that, like Newton and gravity, Maslow formulated one of those theories that holds true as a constant.
In a nutshell, Maslow formulated that we all have basic needs (physiological & safety). Only after these needs are met can we concern ourselves with higher level needs (love, belongingness & self esteem). Ultimately, when these are satisfied, we reach "self actualization" (an understanding and appreciation of our place in the world that transcends human needs). Who would have thought that all those repetitive exposures to this Hierarchy of Needs would have a real world benefit?
I hired nearly 500 sales people over the past 18 years and think that over time I developed a pretty good sense of what is required to build successful teams. However to find the key to that success, you have to both interview thousands and thousands of candidates and then watch the performance of your hires over many years.
Ultimately, one of the secrets to finding sales people with the right stuff turned out to be the answer to this question: How well does the candidate truthfully know where he or she resides on Maslow's Hierarchy? It would be ideal if everyone were self-actualized and had the world by the tail. But in truth, the uncertainties of life mean that we move up and down the hierarchy with no predictable pattern. Nevertheless, inherent in every true sales professional is the desire to move past basic needs and get recognition leading to higher self worth.
The goal of a sales leader is to identify where their salespeople reside in the pyramid, and provide the guidance and tools to move them higher by satisfying each layer of needs. If you have a team full of high esteemed, confident individuals, chances are good you will do well as a sales organization.
So why is the Wireless industry (a collection of individuals), one sector of the telecom space that has enjoyed double-digit growth for nearly 23 consecutive years so pleased with itself and its 2008 prospects? Subscriber growth has not been markedly different for the past 3 years, so why weren't they dancing in the aisles in 2007? Aren't a lot of countries over 100% penetrated? Haven't voice minutes (especially in the US) become commoditized? Don't they know that there is global economic turmoil?
As I have done so many times, I reflected on Maslow's insights for the answer. The cellular industry is a collective comprised of individuals from sub-segments and they communicate a lot. Therefore, the ability for an idea to rapidly coalesce around several pockets of thought is intrinsic to this industry. And now, among the various pockets or segments of the wireless industry a common realization has occurred. After being told for the past nine years that each year was going to be the "year of wireless data" and being disappointed for the previous eight of those, this year was different.
The "pockets" had money in them for the first time. Most are starting to see some real money trickle in and a few have quite a bit of revenue flowing. As the pockets compared notes in Barcelona with each other, they realized that convergence is finally happening. There was no overt convergence fanfare, but the troika of devices, networks & applications was in place and generating real revenues.
This awareness that "Wireless Data" is finally here carried over to Las Vegas. Many companies with specifically wireless data DNA have met their basic survival needs through the long journey to convergence are now maturing towards mid-level needs like belongingness (becoming an accepted part of the wireless system). They are generating cash; they have real customers. Other weaker players have dropped out and there is attention for what they are offering.
Still other companies are becoming brands. This equates to corporate self-esteem. When conventioneers pass by Booth A and say, "Companies like B & C are trying to compete or catch up with Company A", Company A knows that their struggle is paying off. Wireless communication is ubiquitous on every spot of the earth and is the de facto communications technology carrying more minutes of voice use than landlines.
Collectively, the industry has moved up the Hierarchy. It is on the path to becoming self-actualized. To be sure, confidence, achievement, and innovation leave no doubt that esteem is not lacking in this group. As a result today's macro economic issues, technology announcements and corporate maneuvers take a back seat to the realization that the intersection of computing, Internet and communications is happening in a big way for this industry.
As Austin Powers says: "It's a very groovy time". You bet it is for the cellular industry that is just shy of 25 years old. Where were you at 25 in your development as a well-rounded part of the world? Were you feeling a little self-actualized at that age? Coincidence?
Gary Cohen is a recognized pioneer in the US Cellular/Wireless industry who has built and led high performance sales teams, opened new markets, innovated channels of distribution and launched evolutionary products. Gary has a prolific history of strategic management success for early to mid stage companies needing leadership.
At Verizon Wireless, he created satellite sales facilities and built major national account teams that closed the first governmental and multi-state corporate accounts. As VP/GM for AT&T Mobility, he managed the Central Pennsylvania region in growing direct and indirect distribution. Gary also created the mid-tier syndicated research practice for Telephia (now Nielsen Mobile), and spearheaded Oslo-based Birdstep Technology's entrée into North America.
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