A CEO is considering her exit strategy between five and ten years out. She
wants to do what is best both for her, the company and her employees, assuring
that both personal and company needs are met and the company is ready for
transition. What are your five- and ten-year plans?
from the CEOs:
personal side and the company’s future are closely linked. The solutions and
strategy must fit both the CEO’s priorities as well as those of the company. By
looking at the CEO’s role, the current and future needs of the company, and any
changes that need to be made, the CEO is preparing for an eventual exit.
CEO must decide what lifestyle she wants – both as she prepares for eventual
exit and as she prepares the company to continue under new leadership.
must decide what she wants to do with her time in an ideal world. What will
make her happy as she prepares for the future?
must be considered both for herself and her business partners. Have conversations
to align both business and personal expectations.
a strategic planning retreat on the future of the company as well as the
transition of leadership.
a talk with significant others to align personal expectations.
changes in leadership are necessary to implement the plan? What are the key
roles and who will fill them? What is the succession plan for each key role?
Are current personnel in place to fill these roles, or is additional hiring and
an ESOP or a virtual stock program to enhance employee incentives and sense of ownership
in the company’s future.
what exit means on a personal level.
from founder to leader gets the CEO more involved in the company.
on priorities and engage in ongoing discussions with key personnel to jointly
plan the future.
Situation: A company is having difficulty finding the right sales candidates for the opportunity that they offer. They have had good conversations with prospects, but once they present their offering the candidates reply that they’re not interested. How do they define their offer to attract good candidates? How do they adjust the conversation to produce better results? How do you define your sales offering?
Advice from the CEOs:
This is the same conversation that you have with your biggest client prospects.
Good people have options. If you have not convinced yourself that you have a great opportunity, you will never convince them that your offer is better than other options.
You are selling YOU.
Change early process.
Be sure that you are as passionate about your opportunity as you are about positioning your services with clients.
Divorce the conversation about the opportunity from the general screening interview.
Here’s the process:
Your recruiter does not sell.
Just ask the recruiter to identify potential; not to initiate the sale.
Do this sale yourself.
Aspects of the story – much of this is the same story that you present to your clients:
Your performance within your industry.
Strength of your people and brand name.
The quality of your clients.
The unique opportunity that the prospect has joining you at this stage of your business growth.
Situation: A company provides both contract staff and consulting services. They have a large client for whom they provide staff, but not consulting. The client routinely requests discounted rates on contract staff from the company. The CEO believes that the client requests lower rates because they, in turn, offers consulting to their customers, using the company’s staff, and want to offer these services at a competitive rate. How can the CEO better respond to the next requests for discounted rates? In addition, is there a way for the company to market their consulting services directly to the large client’s customers? How do you balance two businesses?
Advice from the CEOs:
Don’t avoid the conversation on your rates. Make sure that your client knows that they are getting top quality services and that this is reflected in your rates.
Make the issue a price / quality trade-off. If cutting costs is important to the client, offer lower quality options at a lower price and let the client decide what will fill their needs. This positions you as flexible and willing to work with the client, without losing margin.
Offer modest discounts for incremental business, but not current business.
Tell the client sooner, rather than later, that your prices are as low as you can make them. Don’t wait until you are in pain.
How can you promote your own business to end customers via the staff that you provide for this client?
Give them business cards to give out that reflect your business, not your client’s.
Provide them with wear nicely embroidered “Company” shirts to wear at work.
Be aware that your desire to approach the client’s customers directly with your services will be a threat to your client and may result in them firing you as a provider of contract staff.
Situation: A company has a long-term employee who has been growing in responsibility as Customer Service Supervisor. The CEO is considering giving this employee the new title of Production Manager at the same time that the employee receives an annual wage increase. How do you optimize a promotion?
Advice from the CEOs:
Any promotion or increase in responsibility must be consistent with the strategic direction of the company. What are the company’s current and future needs and, based on past performance, can this individual satisfy those needs? If so, this may be a good match.
In addition, it is important to consider the needs and career path of the individual. Does the new position involve an increased time commitment, additional skills and training, or other important factors, and is the individual prepared for this increased commitment? Will a higher level of commitment be rewarded financially? The only way to answer these questions is to have a conversation with the individual.
If as the first two questions are considered there is any doubt, a longer-term transition may be appropriate. Meet with the Customer Service Supervisor and set a series of goals and objectives that will demonstrate their ability to assume the new role over a 6 month time frame. The concept here is that you must work at the level of the new job before you get it.
Before embarking on the above recommendations, draft a job description and list of responsibilities for the new Production Manager position, consistent with the company’s needs as it grows. This will involve input from employees who currently handle these responsibilities. Also look at the reporting structure as it currently exists and as it may change.
Situation: A company’s client is furious at the service they received from the company, It turns out upon investigation that the source of the client’s difficulty arose from their own actions, not from anything done by the company or its employees. How do you tell a client that their assumptions are wrong?
Advice from the CEOs:
Ask open-ended questions in an attempt to “clarify your understanding” of what happened. You want the client to answer these questions so that they explain the situation to themselves. Always allow them to save face in this process. Some people are better at this technique than others.
Try to understand the client’s experience of the problem as opposed to focusing on the problem itself. This may reveal more deep-seated challenges facing the client that are just being expressed through the current situation.
Email communications often complicate these conversations. Call or visit to let the client know that you are responding personally to their concern. The best communication is person-to-person through conversation. Let them vent. Peel back the onion through questioning to reveal the core problem.
Be honest. Not negative but simply honest. Listen to gain understanding and repeat the facts, as stated by the client, to assure that you properly understand their perspective. If you need to present your own perspective, and it differs from the client’s, do this in a neutral, unemotional tone.
Sometimes you will find a win-win in these discussions, and sometimes you won’t.
Situation: A company has hired a new employee with excellent skills who reports to a Director. This person is a self starter who prefers little supervision. Friction is starting to develop between the new employee and the Director. How do you resolve this conflict?
Advice from the CEOs:
This person was hired for their talent. However a successful hire takes account of talent, but also role, cultural fit, organizational placement and the needs of the company.
For example, if this person is strong in operations but they are now in client services, is this the right role?
Similarly, if the culture of the office emphasizes teamwork, collaboration and support, is this the right culture for this individual?
Be cautious before tweaking the org chart to create a new role for this person..
Consider both your current staff and the new person. You may be creating additional conflict if your actions appear as favoritism.
The dominant factor is YOUR plan. If the employee is wrong, replace the employee.
If an employee can’t get along with others it is a difficult situation to repair.
When you meet with the employee what should be said?
First, don’t try to solve the situation before you have a clear strategy.
Question and listen. “You’ve been with us a short time, and I want to check in with you. What do you think of your role?” Let the employee talk, probe for clarification of what is said. Take note of what is said. Acknowledge any requests but indicate that you will put them under advisement.
Do the same in discussion with the Director.
The key is that you are in control. Look at your objectives, and where you fit resources best within the org chart. Once you have your plan, communicate it.
Situation: In traditional marketing, many marketers are more focused on activity than results. In the digital environment, top marketing organizations must become better at listening to their customers, watching them, and tracking their purchase decision behavior. What does this mean for the marketer?
The digital world has changed marketing.
The traditional marketing campaign was led by creative. Through the early 90’s marketing was directed by media players and large publishers. Once a campaign was developed the pitch was “buy lots of impressions and customers will come.”
During the dot.com boom and into the 2000s there was a shift to ROI – spend $x with Google, get y clicks that will yield z buying customers. This was very transactional and could be expressed relatively simply.
Behavior is now changing, and the model is becoming more collaborative:
A potential customer expresses interest and a need.
A supplier offers a solution.
The potential customer verifies and validates the offer through online communities, Twitter, Facebook or other resources, and eventually may make a buying decision based on what they find along the way.
The buying decision today is very different from the traditional offer-driven process.
All of this can happen in minutes.
For the marketer, this means moving far beyond the simple advertisement.
The marketer needs a presence on Facebook, Twitter, and many more sites, in addition to their website, to woo potential customers.
For marketers this is expensive and requires a different level of resource commitment. It is, therefore, important for them to attribute the appropriate value to each online presence that the customer engages as they evaluate their buying choices.
Only through developing complex metrics, which change real time as customer behavior changes, can the marketer track and understand customer behavior and adapt the offer to the needs of the customer.
As individual consumers increasingly engage employ new forms of digital technology the challenge to marketers only increases.
The digital marketer who will thrive will develop a sophisticated, metric-driven understanding of the multiple touchpoints and social interaction of a given transaction.