Situation: A CEO wants to increase awareness of company products and services. They have a strong customer list and a long history of successful projects. How to they increase awareness among potential customer decision-makers? How do you boost awareness of your products and services?
Advice from the CEOs:
There are three stages to a good awareness strategy:
The company already has great products and services. Hire a quality PR Firm and have them highlight this for company trade shows, blogs, YouTube, etc.
The objective is not broad awareness but getting to specific decision-makers – what will get to them?
Generate broad awareness of company capabilities through entertaining videos to excite the team members of prospect companies who report to the decision makers.
This is a complex strategic sell. If recommenders think that the company’s stuff is cool they will pass the word – create a campaign to encourage this.
The priority is to close more business. Why not brand or co-brand and promote the company’s products? This may ease reaching the target decision makers.
The PR advice is good – but how will this play to the crowd that’s writing the check?
What makes current customers comfortable working with the company? Is it repeatability? Credibility? Creativity? Referenceability? Decide which it is and highlight it.
Everything that the company is doing on the “cool” side falls under the marketing strategy. Efforts in PR and sales must support this marketing strategy.
Consider a campaign on YouTube – How do the parts of “Sally” work? How did we design it? This attracts a smaller audience, but it may be the right audience.
Within company capabilities, there are two distinctions to clarify – both are important but require different emphasis:
Situation: The CEO of a specialty company that is a leader in their market asked the group to review the company presentation. The members of the group were asked to put themselves in the place of a potential customer or investor. How do you improve your company presentation?
Advice from the CEOs:
Don’t assume that the audience has a sophisticated understanding either of the company’s market or its technology. In any pitch either to a new prospect or for funding there will be individuals in the audience who are not experts. The pitch needs to deliver a message that any listener can easily translate to any colleague.
Give brief examples from the experience of current customers to make the technology and its advantages concrete.
What is the problem that the company solves?
State up front: What is the pain – why is it there? How does the company’s solution address this pain? What’s the impact?
Show market potential and explain why the company’s solution will be a home run.
What makes the company’s solution unique and gives it a sustainable advantage?
Assume Ignorance – KISS – Keep It Simple Silly!
The presentation should be high level, easy to understand, and crystal clear in 5 minutes.
Establish credibility by summarizing current success and list the names of current customers.
For presentations to investors have ready answers for the following questions:
How the funding sought accelerate development, and what is the expected return that this will produce?
Assure that timelines are realistic, particularly for a ground-breaking technology.
Do not be vague in answers to questions like “what is your market share?” Answers must be crisp and believable. If additional documentation is required to validate company estimates have a back-up slide in the presentation to address this. Keep the explanation in the back-up slide simple, even if the analysis is complex.
Add an expectation of return on investment. What equity will the company give for an investment of $X. State the company’s pre-money valuation as a believable number. Then give an estimated 3-year post money valuation with $X investment. Investors will discount anything number given but will not want a range.
Situation: The head of a small service company wants to become more strategic – more like a CEO. Ideally, he wants to create a small samurai team to help him expand. He prefers working with a range of clients to develop creative, out of the box solutions. How do you transition from boss to CEO?
Advice from the CEOs:
The eMyth Revisited by Michael Gerber is a valuable primer on how to bring in more clients and revenue. The critical question that this book helps to answer is “what do I want to build?”
The book walks you through the critical questions that will help to answer whether your true ambition is to be a Picasso with helpers or a company. The answer may be either, but how you build each is different.
The more that skills can tied to a tangible outcome the easier it is for clients to hire a company. Quantify past successes. Make it easy to justify hiring your team.
To add to your pipeline:
Help friends help you. Make it easy for them to refer you. This can be simple: YouTube videos or improving the company website to highlight past successes.
The company web site can’t be just OK – it must be the all-important credibility builder that the company needs. Recreate the site to wow the visitor and tell the company’s story. Make it fun and compelling.
Participate in groups or forums that your targets attend. Create presentations, webinars, etc. Establish the company as an expert with the answer and as a trusted resource.
Also present to professional organizations to establish expertise and credibility.
Testimonials are powerful – particularly if backed by metrics.
Collaborate with people with similar depth of experience who can help develop the pipeline. Offer them a cut of total job revenue.
Situation: A CEO has hired an individual who is currently working on projects for the company. The CEO likes this person and anticipates that he could eventually become General Manager. There have been a few rough spots but, overall, objectives are being met. How do you bring in a new General Manager?
Advice from the CEOs:
Transition the individual from their current responsibilities to GM in small steps. This will allow him to develop relationships and credibility with the rest of the team. These relationships and credibility are what he will need in the more senior position.
Coach the individual about any behaviors that you may observe, or which may be reported to you by others within the company, which are contrary to your culture. Understand, from the new individual’s perspective, what motivates these behaviors. Encourage the individual to develop alternative behaviors that are more consistent with your culture. Be open to the possibility that some of the behavior may be addressing flaws in the current culture.
Maintain open communication with your key managers who will be impacted as the new individual gains responsibility. As the individual gains authority within the organization, be clear that you support your new manager.
Your current culture is always in flux, and will continue to change as you bring in the new GM. This will create natural resistance as people adapt to the new situation. Be patient and stick with the plan. When others complain be honest and up-front that you support the new manager, and that everyone will have to adapt.
Situation: A small technology company has a handful of major customers. They are very good at what they do and want to expand and diversify their customer base. The challenge is that they don’t have the funds for large-scale marketing. As an additional twist, for now they prefer to stay under the radar of their largest competitors. How do you build market awareness on a small budget?
Advice from the CEOs:
Start with the basics. Define your market niche and build from there. Create a beachhead in this niche and generate strong testimonials from your current customers. Segue to tradeshows and broader marketing opportunities as you build marketing strength.
You already have several marquis clients. Look for opportunities in other divisions within these client companies. The work that you have done for existing divisions makes you credible.
Network with your current clients to develop other opportunities. They won’t want to help their competitors; however, if you can improve what they receive from their other vendors they may provide introductions for you.
As a small company, focus on a single market where you have strength and credibility. You don’t want to spread yourselves too thin.
Find a good customer and solve their problem well. Create an evangelist who will tell others about you.
Look for speaker opportunities at high visibility events within your market niche.
Consider webinars, these are inexpensive and if you promote them to decisions makers in your target niche you can quickly build credibility.
Situation: The Board of a company has asked the CEO to generate to forecast of revenue for this year. Their primary technology is new and the company has just started receiving orders. An achievable revenue forecast my not please the Board. However, the company may lack manufacturing capacity to meet a higher level of demand. How do you forecast revenue for a new technology?
Be realistic in your forecast. While the Board may not like your number, the impact of setting the goal too far out of reach is potentially significant, including discouraging the team, and impairing credibility with the Board. However, if you aim realistically and significantly exceed the target you will be heroes.
How is it best to approach this in discussions with the leadership team?
Create a set of objectives and revenue targets and put probabilities around each. Also look at the obstacles to hitting the higher numbers, including manufacturing capacity and the cost of increasing capacity.
For examples if your most likely forecast is $X, then put probabilities around achievement of multiples of this number:
$X – 95%
.75X – 99%
1.5X – 75%
2X – 60%
Once your determine the objective, think through everything that must be covered to meet that goal, from sales to production, and start developing plans and contingencies to address these.
Share your probabilities with the board, as well as your plans and contingencies that may increase likelihood of reaching the higher targets. Ask for their input and assistance hitting the higher targets.
Situation: The CEO came into a company as a engineering consultant. Three years later the Board asked him to take on the CEO role. This created a credibility issue with staff because the CEO is a duck out of water, though a duck with better business sense than most others within the company. How do you manage a company outside of your technical expertise?
Advice from the CEOs:
The staff credibility issue may just be one of self-confidence. You have already demonstrated competence in revising company processes and improving profitability. In fact, your non-industry perspective may have contributed to your success to date.
Near term, in what areas should you focus?
Focus on building bridges which will give you more leverage to address key barriers, particularly within the more entrenched groups in the company.
Look at how the company communicates and exchanges information with clients. One thing that customers want is more self-service options and access to data. You have the opportunity to develop Web 2.0 capabilities which will to set the company apart in what is historically a very conservative and paper-oriented client culture.
These actions will help you to increase your credibility as an effective leader and CEO.
Longer term, what should be the plan?
Keep the ship running smoothly. This by itself will help to build appreciation for your talents.
Use any free time to create business plans of your vision for the future. Share these interactively with key staff members and incorporate their input into the plan. Involve them in disseminating the plan within the company.
As you develop your vision and plan, look for opportunities to attribute success to others. This will be a breath of fresh air to staff and will strengthen the bridges that you have worked to build. They will start to see you as a key ally who shares credit instead of hoarding it.
Interview with Sai Gundavelli, CEO, Solix Technologies
Situation: A company has top talent and a better technology solution. However their large competitors continue to compete by discrediting them – “nobody was every fired for choosing IBM!” How do you compete effectively against large incumbents?
Advice from Sai Gundavelli:
Invest in your product.
Work to attain best-of-breed status in your industry with a constant focus on and investment in building a great technology. Solix’s constant goal is to be the technology leader in information lifecycle management and Data Privacy.
Be organic and focus on integration, smooth operation and scalability. Build your system from the ground up. An organically designed solution where the pieces work seamlessly offers higher and more efficient performance.
Invest in alliances.
Solix continually invests in our partnerships, including our OEM relationship with Oracle Financial Services, and we have more such partnerships in the works that will help us expand our presence in the market. Partnerships increase your presence and visibility as you scale your own organization.
Focus your efforts.
We at Solix are 100% focused on our product, whereas our large competitors are juggling multiple priorities, like a juggler trying to keep a large number of balls in the air. While we are smaller, this allows us to more effectively focus our efforts without lots of conflicting priorities. We focus exclusively on information life cycle management and Data Privacy.
Have others talk about you.
Solix’s answer to our competition is let our customers speak for us. We have many happy customers such as Honeywell, Duke Energy, American Tires, who are happy to participate in joint webinars and customer case studies. We work closely with them on the latest developments and direction and use their feedback to guide future product direction.