The 4th meeting is again held off-site, as most are, for reasons previously stated.
During this meeting, the environmental scanning continues, but this time it moves from the external to the internal for the focus. Simply put, you take stock of those factors outside your organization that individually add up to influencing your success or failure.
Three processes are commonly used to assist you in identifying & discussing these outside influences:
1) Porters Five Forces - this looks at market entry barriers, customers, suppliers, & product elasticity, & their competitive relationship with each other.
2) SWOT analysis - strengths, weaknesses, opportunities, & threats. We looked at this in meeting #3, but only from the internal standpoint. During this meeting you will look especially at this outside the organization, and with your competitors.
3) PEST Analysis - political, economic, social, & technological factors that especially influence the opportunities and threats of the SWOT analysis. These are generally outside your competitors.
Finally, in the "taking stock", the team will use all or some of primarily four tools. They are surveys, questionnaires, focus groups, & open forums. In discussing these, you will: develop a common perception; identify not only strengths & weaknesses, but trends & conditions; and create honesty and openness to changing conditions. Your facilitator will be able to recommend the right tools for you.
Having outlined all of this, it is extremely important on how it's presented and discussed. As I've said many times before, the answers lie within the organization. The trick is to bring them out, especially when trust may be lacking. A facilitator is invaluable here, a third party with no agenda.
I was talking to an executive in a nonprofit recently who was charged with bringing together two "opposing" sides of the organization. One wanted to build the engine, one was charged with making it run. Without communication and focusing on the "customer", serious flaws emerged; the "disjoint" developed to the point that the future was threatened. He realized, because he was too close to it, that he needed to go outside to a facilitator to help handle the delicate situation.
As a rule of thumb, when you're hearing every thing's fine, & only positives and not problems, you're in trouble. If you check your ego at the door, keep centered on getting better no matter who's challenged, and use help when appropriate, you'll be fine. It may not be what you expected or wanted, but it'll be the right thing.
Thursday, February 18, 2010
Wednesday, February 17, 2010
The Most Important Thing in Our Life is . . . ??
A very powerful book has recently come out called Counterfeit Gods, by Tim Keller. It takes a religious approach, but certainly would stand alone as a business book as well. It begins by asking us what we work for; what can we not do without; what do we absolutely live for?
A modern, succinct answer might be success, money, true love, and the life we've always wanted. Throw in a great sex life and one might have the bases pretty well covered!
Why then are there suicides like we've seen at Bear Stearns, HSBC Bank, & others? Why did Madonna write, "My drive in life is from this horrible feeling of being mediocre? My struggle has never ended & it probably never will."
Andrew Carnegie wrote, "Man must have an idol. The amassing of wealth is one of the worst species of idolatry." But money is only the most visible; there are many others. Even good things, like a successful business, our children, or even volunteer work, can be our idol if carried to an extreme. If we can't function well in a given area without perfection, something's wrong.
No one thinks they're greedy; we think we're entitled. The problem is that we as humans are built with insatiable "wants" (not needs). Stop and think. Don't you tire of even a good thing? That boat that I bought was so cool when I first launched it. But then, over time it didn't seem as special; there were other things to do, newer & more unique. We all remember the Law of Diminishing Return in Econ 101: the first chocolate bar is great, the second good, and by the time you eat four you get sick!
Balance is a terrific antidote. Without it we become fixated and irrational. We must keep everything in its perspective, & control our craving for things that end up being empty promises, hollow achievements, and controlling.
So who or what should be at our pinnacle? Tim maintains it's God, who said, "You are the ones who justify yourselves in the eyes of men but, I know your hearts." Tim maintains, and I agree, that there is only one way to change what's in your heart: by giving Him yours & asking for His help.
To some of you, I know this seems radical, but know one thing: God is one terrific businessperson!
A modern, succinct answer might be success, money, true love, and the life we've always wanted. Throw in a great sex life and one might have the bases pretty well covered!
Why then are there suicides like we've seen at Bear Stearns, HSBC Bank, & others? Why did Madonna write, "My drive in life is from this horrible feeling of being mediocre? My struggle has never ended & it probably never will."
Andrew Carnegie wrote, "Man must have an idol. The amassing of wealth is one of the worst species of idolatry." But money is only the most visible; there are many others. Even good things, like a successful business, our children, or even volunteer work, can be our idol if carried to an extreme. If we can't function well in a given area without perfection, something's wrong.
No one thinks they're greedy; we think we're entitled. The problem is that we as humans are built with insatiable "wants" (not needs). Stop and think. Don't you tire of even a good thing? That boat that I bought was so cool when I first launched it. But then, over time it didn't seem as special; there were other things to do, newer & more unique. We all remember the Law of Diminishing Return in Econ 101: the first chocolate bar is great, the second good, and by the time you eat four you get sick!
Balance is a terrific antidote. Without it we become fixated and irrational. We must keep everything in its perspective, & control our craving for things that end up being empty promises, hollow achievements, and controlling.
So who or what should be at our pinnacle? Tim maintains it's God, who said, "You are the ones who justify yourselves in the eyes of men but, I know your hearts." Tim maintains, and I agree, that there is only one way to change what's in your heart: by giving Him yours & asking for His help.
To some of you, I know this seems radical, but know one thing: God is one terrific businessperson!
Thursday, February 4, 2010
Meeting #3 for Strategic Planning
The third meeting is scheduled off site close to headquarters from 9-4 so that each member is able to handle their daily routine (e-mail, phone calls, 1 to 1's, and paperwork) before and after. If you find it difficult to begin on time because of this, you may find 7:45-3 easier. Respecting their time & responsibilities will reduce their concerns and thereby increase participation.
The goal is to get everybody on the same page regarding some basic marketing issues. It may seem elementary but, believe me, if you have truly put together the diverse team needed for maximum value, you must take the time. They, by definition, will approach things differently.
An effective way to begin is to have a discussion as to why customers buy from you. Consensus should center around providing a unique product/service better than your competition. Whether it's faster, lasts longer, more cost effective, or one of a kind, if you are the winner, you have provided something unique: unmatched value. Your core competencies make this possible.
How do you provide value? Introduce & discuss core competencies. Examples in the print industry might be special substrates, large format, file manipulation, specialized bindery, or 2-day turnaround. And WITHIN each of these areas you've probably exceeded expectations further, such as within a product line like insurance, advertising, or health care. There are many more, but the idea is that whenever we can focus to the point where few or no one else can do the same, we win.
What follows next, much of the time, is that you discover you're not unique enough, or you're a "me too". If so, no wonder you've experienced declining margins, lost volume, or are unable to compete on large opportunities.
The discussion should then lead to what your customers want that you're not providing. This may start out rather broad, and may be unpleasant to hear, but it should not be suppressed. Because you are now thinking like your customers, this is a time where a discovery of weaknesses can lead to a positive vision of your future success. Worry about HOW you'll do it later, and concentrate on the value that your customers will pay to get.
This is a natural time to talk about your ideal customer, and opportunistic vertical markets you may want to explore. This must be discussed thoroughly & documented carefully. If you don't have everything you need to meet these needs (almost always), then it's productive to talk about your customers (prospective as well as existing), and products needed (new as well as existing).
The Four Quadrants should emerge here. Make sure all understand why targeting existing customers with existing products is easier than new customers with new products. Here, the foundation should be laid upon which future decisions are made.
Now that the realization has sunk in that you have much work to be done, the direction you take needs to be based on data. This is where your internal scanning is introduced. One way or another, you must take stock, from as many of your employees as possible, of where you stand objectively. Questionnaires & focus sessions are very helpful here. They can be purchased or you may choose to create them internally.
The feeling in the room as you complete this 3rd session can manifest itself in many ways. Don't worry if many seem overwhelmed with what's needed to be accomplished. Others may be very excited with the challenge ahead. This diversity of attitudes & approach is part of what will make you better; it facilitates them coming together as, & appreciating the team.
The goal is to get everybody on the same page regarding some basic marketing issues. It may seem elementary but, believe me, if you have truly put together the diverse team needed for maximum value, you must take the time. They, by definition, will approach things differently.
An effective way to begin is to have a discussion as to why customers buy from you. Consensus should center around providing a unique product/service better than your competition. Whether it's faster, lasts longer, more cost effective, or one of a kind, if you are the winner, you have provided something unique: unmatched value. Your core competencies make this possible.
How do you provide value? Introduce & discuss core competencies. Examples in the print industry might be special substrates, large format, file manipulation, specialized bindery, or 2-day turnaround. And WITHIN each of these areas you've probably exceeded expectations further, such as within a product line like insurance, advertising, or health care. There are many more, but the idea is that whenever we can focus to the point where few or no one else can do the same, we win.
What follows next, much of the time, is that you discover you're not unique enough, or you're a "me too". If so, no wonder you've experienced declining margins, lost volume, or are unable to compete on large opportunities.
The discussion should then lead to what your customers want that you're not providing. This may start out rather broad, and may be unpleasant to hear, but it should not be suppressed. Because you are now thinking like your customers, this is a time where a discovery of weaknesses can lead to a positive vision of your future success. Worry about HOW you'll do it later, and concentrate on the value that your customers will pay to get.
This is a natural time to talk about your ideal customer, and opportunistic vertical markets you may want to explore. This must be discussed thoroughly & documented carefully. If you don't have everything you need to meet these needs (almost always), then it's productive to talk about your customers (prospective as well as existing), and products needed (new as well as existing).
The Four Quadrants should emerge here. Make sure all understand why targeting existing customers with existing products is easier than new customers with new products. Here, the foundation should be laid upon which future decisions are made.
Now that the realization has sunk in that you have much work to be done, the direction you take needs to be based on data. This is where your internal scanning is introduced. One way or another, you must take stock, from as many of your employees as possible, of where you stand objectively. Questionnaires & focus sessions are very helpful here. They can be purchased or you may choose to create them internally.
The feeling in the room as you complete this 3rd session can manifest itself in many ways. Don't worry if many seem overwhelmed with what's needed to be accomplished. Others may be very excited with the challenge ahead. This diversity of attitudes & approach is part of what will make you better; it facilitates them coming together as, & appreciating the team.
Wednesday, February 3, 2010
Should Your Company be Whale Hunters?
This will be the third, and last (for now) article regarding the book, "Whale Hunting: How to Land Big Sales & Transform your company." As remarkable a strategy this is to rethinking your Sales approach, it is not for everyone. This is not only my contention, but clearly stated by the authors as well. What follows here is a compilation of some of their concerns reinforced, with the addition of mine.
Here are the areas you should evaluate before plunging forward with the enthusiasm of a new convert. They are intended to foster questions & discussion with your team of potential hunters, not to advocate a negative decision. They are in no particular order.
Financial Resources. Are you solvent & healthy enough to withstand the "fall & winter"? Preparation is time consuming & costly. Although it is not truly an "all or nothing" approach, it is probably much closer to it than you've previously experienced. Remember that business cyclicality is one of the worst problems faced within the printing industry. In the short run, this could add to the challenge.
Culture. How big of a cultural change will you need to begin the hunt? Have you been team oriented, or have you been a group of individuals? I have seen a strong Sales group carry an organization, and while I don't believe it's the way of the future, the leap away from that approach will most likely be a difficult one.
Competency. Do you have the talent within your organization to fulfill all the roles? If not, can you train to improve it, or must you acquire some of it outside? Talented harpooners, for example, are extremely rare. Take a realistic look at what you have before you move ahead without it.
Commitment. Are you ready, as CEO or President, to give & command support from the top? Just as with Strategic Planning, the passion for the Vision must come from you.
Diversity of Skills & Personality. Do you have the proper mix and balance of differing views and skills to make the PROCESS successful? Without debate & the resultant improved methods & consensus, the meticulous nature of the approach is lost. Remember, the devil is in the details.
Change. Are you ready to change the game, rather than just try to play it better? Whale Hunting is all together different than what most people have been doing. Change is not easy; there will be push back from customers as well as your employees.
Margin Erosion. Whales like the best possible price. And because you may not be totally ready yet with your cost reductions when you land your first, you may have to temporarily cut your price as admission to the continuing hunt. This is a corollary of Financial Resources.
Pride. Are you willing to be told how you will do business? Whales are very demanding and have a penchant for thinking they know it all, which in some cases is true.
Whale Hunting is certainly here to stay. These questions are not meant to dissuade anyone; just keep your eyes wide open and do your homework. Good Hunting!
Here are the areas you should evaluate before plunging forward with the enthusiasm of a new convert. They are intended to foster questions & discussion with your team of potential hunters, not to advocate a negative decision. They are in no particular order.
Financial Resources. Are you solvent & healthy enough to withstand the "fall & winter"? Preparation is time consuming & costly. Although it is not truly an "all or nothing" approach, it is probably much closer to it than you've previously experienced. Remember that business cyclicality is one of the worst problems faced within the printing industry. In the short run, this could add to the challenge.
Culture. How big of a cultural change will you need to begin the hunt? Have you been team oriented, or have you been a group of individuals? I have seen a strong Sales group carry an organization, and while I don't believe it's the way of the future, the leap away from that approach will most likely be a difficult one.
Competency. Do you have the talent within your organization to fulfill all the roles? If not, can you train to improve it, or must you acquire some of it outside? Talented harpooners, for example, are extremely rare. Take a realistic look at what you have before you move ahead without it.
Commitment. Are you ready, as CEO or President, to give & command support from the top? Just as with Strategic Planning, the passion for the Vision must come from you.
Diversity of Skills & Personality. Do you have the proper mix and balance of differing views and skills to make the PROCESS successful? Without debate & the resultant improved methods & consensus, the meticulous nature of the approach is lost. Remember, the devil is in the details.
Change. Are you ready to change the game, rather than just try to play it better? Whale Hunting is all together different than what most people have been doing. Change is not easy; there will be push back from customers as well as your employees.
Margin Erosion. Whales like the best possible price. And because you may not be totally ready yet with your cost reductions when you land your first, you may have to temporarily cut your price as admission to the continuing hunt. This is a corollary of Financial Resources.
Pride. Are you willing to be told how you will do business? Whales are very demanding and have a penchant for thinking they know it all, which in some cases is true.
Whale Hunting is certainly here to stay. These questions are not meant to dissuade anyone; just keep your eyes wide open and do your homework. Good Hunting!
Monday, February 1, 2010
Similarities (& Differences) Between Whale Hunting & Strategic Planning
This article will continue to address the currently popular book, "Whale Hunting: How to Land Big Sales & Transform Your Company." Previously outlined was a brief synopsis of the approach of aggressively pursuing large account (Whales) acquisition & development.
As I use and study several of its methods and perspectives, it becomes more & more apparent that there are many similarities between Whale Hunting(WH) and Strategic Planning(SP). In fact, one complements the other.
Both SP & WH are processes very specifically defined, requiring a commitment from the top, and both require significant data gathering. Similarly, knowing yourself and your competitors is required by each. Both require extensive knowledge of your potential and existing customers, although WH demands a more meticulous effort.
Each touches every area in the organization, but again, WH is more thorough , and stresses understanding & contribution from literally everyone. Again, subjectively, I would say that SP at least begins a bit more internally based, with taking stock of who we are & where we've been, while WH is driven by the Whale, around which everything revolves.
The internal & external scanning of SP is similar to the target filters of WH, but here again, WH takes it a step further with weighting & analysis. At the same time SP, if it chooses to, can get very detailed in the gathering and analysis of data.
One of the most congruent approaches is in the identification of the company's unique competitive advantages. This understanding of core competencies, both current or perhaps desired, is crucial to the success of both. And both realize the importance of understanding your culture & changing it if necessary.
The most obvious dichotomy is the "all or nothing" attitude of the WH. Although it is not as extreme as it seems (existing & smaller accounts can still be pursued), it definitely is more intense. SP is a bit more about consistent performance over time yielding the results we want.
Another difference is that of changing the game; it is critical to WH, whereas with SP, it's a bit more important to understand and play the game. Additionally, there are more roles to learn with WH than with the more traditional approach of SP. Finally, WH does not tolerate incremental growth where SP does.
Areas that at least somewhat differ are the potential of customers, how we actually grade each actual & potential customer, & a smaller team approach with SP versus the wider team (the entire company) with WH.
When all is said and done, OR, at the end of the day, they each offer the other a great deal. One really does complement the other!
As I use and study several of its methods and perspectives, it becomes more & more apparent that there are many similarities between Whale Hunting(WH) and Strategic Planning(SP). In fact, one complements the other.
Both SP & WH are processes very specifically defined, requiring a commitment from the top, and both require significant data gathering. Similarly, knowing yourself and your competitors is required by each. Both require extensive knowledge of your potential and existing customers, although WH demands a more meticulous effort.
Each touches every area in the organization, but again, WH is more thorough , and stresses understanding & contribution from literally everyone. Again, subjectively, I would say that SP at least begins a bit more internally based, with taking stock of who we are & where we've been, while WH is driven by the Whale, around which everything revolves.
The internal & external scanning of SP is similar to the target filters of WH, but here again, WH takes it a step further with weighting & analysis. At the same time SP, if it chooses to, can get very detailed in the gathering and analysis of data.
One of the most congruent approaches is in the identification of the company's unique competitive advantages. This understanding of core competencies, both current or perhaps desired, is crucial to the success of both. And both realize the importance of understanding your culture & changing it if necessary.
The most obvious dichotomy is the "all or nothing" attitude of the WH. Although it is not as extreme as it seems (existing & smaller accounts can still be pursued), it definitely is more intense. SP is a bit more about consistent performance over time yielding the results we want.
Another difference is that of changing the game; it is critical to WH, whereas with SP, it's a bit more important to understand and play the game. Additionally, there are more roles to learn with WH than with the more traditional approach of SP. Finally, WH does not tolerate incremental growth where SP does.
Areas that at least somewhat differ are the potential of customers, how we actually grade each actual & potential customer, & a smaller team approach with SP versus the wider team (the entire company) with WH.
When all is said and done, OR, at the end of the day, they each offer the other a great deal. One really does complement the other!
Whale Hunting for your Biggest Accounts
If you've not already done so, add this book to your reading list: "Whale Hunting: How to Land Big Sales & Transform Your Company". It's been out for a couple of years now, achieving popularity because of using the Inuit Indians (Eskimos) of Northwestern Alaska to teach us the importance of capturing large accounts.
Much as the Inuit understand the significance of harvesting even one whale, compared to an elk, seal, or polar bear, so we should realize what landing an account 10-20 times our average would do for us. One whale will feed 30 Inuit for an entire year. What would it mean to your company to land a whale?
The Inuit prepare all year by making and honing their gear, selecting people for specific roles, & training for the hunt. This takes complete commitment, patience, and a team effort. The children even participate as scouts to spot the whales when they first begin to appear in the early spring.
A successful hunt brings the whale to the beach where it is harvested by the entire village, processed, and preserved. Everything is used except the head, which is taken back out to sea in respect for the whale. The oil, food, and clothing are distributed according to who performed what, and the needs of the village itself. After a celebration, the process begins again for the next year.
The similarities to the sales process for landing a "whale" account are impressive.
1) Leadership must focus the organization top to bottom.
2) Employees must be willing to learn new roles, and to perform them flawlessly.
3) Everyone must agree to do the hard work.
4) The process must be managed meticulously.
5) Results are everything; everyone wins & loses together.
The book is a good read because of the story line which is easily related to our businesses, and the changes & challenges we've encountered in the marketplace. The effort however, approaches overwhelming. Accordingly, the result must truly be a whale!
Although whale hunting isn't for everyone, which I will address in a separate article, it is more than worth a look. As with most things, there is a great deal to be learned by examining and evaluating the process.
Much as the Inuit understand the significance of harvesting even one whale, compared to an elk, seal, or polar bear, so we should realize what landing an account 10-20 times our average would do for us. One whale will feed 30 Inuit for an entire year. What would it mean to your company to land a whale?
The Inuit prepare all year by making and honing their gear, selecting people for specific roles, & training for the hunt. This takes complete commitment, patience, and a team effort. The children even participate as scouts to spot the whales when they first begin to appear in the early spring.
A successful hunt brings the whale to the beach where it is harvested by the entire village, processed, and preserved. Everything is used except the head, which is taken back out to sea in respect for the whale. The oil, food, and clothing are distributed according to who performed what, and the needs of the village itself. After a celebration, the process begins again for the next year.
The similarities to the sales process for landing a "whale" account are impressive.
1) Leadership must focus the organization top to bottom.
2) Employees must be willing to learn new roles, and to perform them flawlessly.
3) Everyone must agree to do the hard work.
4) The process must be managed meticulously.
5) Results are everything; everyone wins & loses together.
The book is a good read because of the story line which is easily related to our businesses, and the changes & challenges we've encountered in the marketplace. The effort however, approaches overwhelming. Accordingly, the result must truly be a whale!
Although whale hunting isn't for everyone, which I will address in a separate article, it is more than worth a look. As with most things, there is a great deal to be learned by examining and evaluating the process.
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