Situation: A CEO senses that employees don’t have his sense of urgency regarding the business. A case in point is responding quickly to new customer inquiries in a competitive market. Too often, he takes over to assure that bids are submitted quickly. How do you get comfortable delegating to staff?
Advice from the CEOs:
Prepare for a meeting with staff by defining the key desired standards in advance.
Initiate the meeting with this message: “We have a company image. This is how we define it.” Work with staff to create standards that define this image.
Agree on standards with the team.
Discuss standards with the team but have them make the decision. Guide the conversation – through questions – to focus on the desired standards. Be open to using the language developed by staff to enhance ownership.
Examples of standards that may apply:
Response time to incoming calls, maximum number of rings before response.
Time to return telephone messages.
Time to return emails.
Invoices completed the day or the order, or whatever is appropriate.
Establish a response regimen – assure that response is professional.
Train all people who pick up the phone.
Assign rotating office days for salespeople with responsibility to answer the phones.
Emphasize the importance of speedy response with an explanation that everyone will understand.
When a customer calls, assume that they are also calling 2-3 other suppliers. The first responder can shape the conversation in favor of their company and offering – for example the company can offer both a solution plus design and logistics assistance.
As first responded, assure that the focus is on the company’s strengths – this puts the competition at an immediate disadvantage.
Enforce and maintain the standards
Once standards are set, make review and updates of performance against standards part of weekly sales meetings. Use large charts to track this.
Create friendly internal competition. Who got the most business last week? Who did the best with incoming calls? Have the team develop competitive goals.
Recognize top performers with $50 – $100 cash award, restaurant certificate, etc. Make it fun!
If “everyone” is supposed to pick up the phone this becomes “nobody” because nobody is responsible for picking up the phone!
Situation: To date, a company has performed a single set of services focused on collection and delivery of a stream of raw data to its clients. The CEO wants to add a consulting service based on the expertise that the company has developed over the years. The CEO seeks input on both how to position this new service, and how to organize it, either within or separately from the current business. How do you expand your business model?
Advice from the CEOs:
Consulting services can be offered at a premium to current services because the company will be offering analysis and recommendations for a solution, instead of just raw data. Intelligence is more valuable than raw data.
Offer the consulting service on a project rather than an hourly basis. For example, price a project at $10k for the consulting package instead of $200/hour for data collection and reporting.
To add weight to the consulting offering, provide final reports and recommendations as a professional, written document supplemented by a presentation.
Test the concept and early options for the consulting service with existing clients.
Create a new division for the consulting service so the customer sees it as an additional option and value that the company provides. This will change both the branding and image of the business.
To increase the opportunity for success, develop a full business plan for the consulting model.
Focus on the new consulting business with the same discipline as the current data business.
Situation: A company has a long relationship with its initial client, which provides the company with key intellectual property. This client handles all marketing, sales and distribution for the company’s principal products, but only accesses 20% of the market. The client is concerned about having its image associated with expansion into markets that the company wishes to pursue. How do you structure a deal that enables you to access the broader market without offending the client?
Advice from the CEOs:
The issues for the client are public relations and liability. They don’t want to be associated with certain segments of the larger market as it may compromise customer perceptions of their core business. Further, they want to be indemnified should they face damages from your forays into the larger market. It is important that you address their concerns.
Sit down with the key client. Pose a problem that will generate the solution that you seek and let them solve it on their own. Then seek an agreement with the client on carve-outs within the larger target market with which they are agreeable.
Build an external company with different branding to approach the larger market, without jeopardizing the relationship with the key client. If ownership and management of the two entities are the same be aware that this is a thin veil.
You may increase opportunity for success if you build your own successor product – one tailored for the larger market – while your key client is paying you for current business. Once the product is built, ask the client whether they want to be involved and if so, on what terms. This enhances your bargaining position and reduces your downside risk.
Expand your offering, where current products are part of a larger offering. You have two alternatives: go there anyway, or go there with the client. If the client decides that they don’t like what’s happening and opens the market this could be ideal for you.
Situation: IBM and others established the value of preaching FUD (Fear, Uncertainty and Doubt) within their marketing campaigns – “choose IBM, the brand that you can depend on, because who knows what others will actually deliver.” Is it still worthwhile to use FUD, or are we better off emphasizing the positive benefits of our services and keeping our image positive?
Advice from the CEOs:
When considering whether it is better to sell the time that your system or product is “up” or the time that it is “not down,” you need to understand your customer’s perspective.
If they are cautious and skeptical, then FUD may work. If they are positive and upbeat, then they will more likely respond to a positive, upbeat message.
Match your marketing message to the attitude of the key decision makers within your customer companies. Learn their hot buttons during ambassadorial visits.
Companies sometimes use FUD when they sell “the future.”
Being “in”: if you haven’t got our product/service you won’t be with it!
Insurance companies sell protection from the unknown.
Mix the message. Sell the positives, with an appreciation of the cost of the negatives to reinforce the positives.
Be the “Mr. Goodwrench” of your marketplace. Educate and reinforce.
Consider positive health care analogies in your marketing:
Rapid Response – mimic messages from urgent care.
The value of maintenance programs – mimic messages from wellness programs.
Develop metrics to substantiate what your customers are hearing from your message.