Tag Archives: Quality

How Do You Target CIOs of Large Companies? Six Suggestions

Situation: A company’s target customers are Fortune 1000 companies, some of whom are simultaneously clients and competitors. The key target is the VP/CIO. A prime concern of that individual is assuring that their IT systems never go down. What could the company do better to approach these target customers and reach the right decision-maker? How do you target CIOs of large companies?

Advice from the CEOs:

  • The approach must be tailored to reach corporate level decision-makers:
    • Conduct a direct marketing campaign strategically as opposed to using a high-volume mailing with a low cost-per-piece.
    • Mail relatively expensive dimensional mailers to a small number of highly qualified prospects. Look for high impact to the best targets.
  • Research and identify the key targets within prospect companies.
    • The best success will come from prospects who have tried other options from the large competitors but are unsatisfied with the results.
  • Consider and research prospects within the large consulting firms. They may have tried IBM or similar options, but weren’t happy with what was provided, either because of cost, time or quality.
  • Also look at next-tier players. Success with these customers can become valuable references to the larger firms.
  • Position the offering as the “safe choice.”
  • Closely monitor customers and their experience with the offering – both pre-installation, during installation and post-installation. The key variables will be quality and ease of installation and adoption of the company’s offering.

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How Do You Build an Effective Compensation Plan? Six Suggestions

Situation: A company hires and trains engineers from outside of their field. Their pay scale is typically below market for engineers in this field. Once the company trains them, these engineers are candidates for recruitment by other firms in the field that are considered premium employers. The CEO wants to address this situation. How do you build an effective compensation plan?

Advice from the CEOs:

  • In addition to compensation, a high-quality workplace and work experience are equally important.
  • Give the lead engineer or team compensation tied either to engineering charges or gross profit on successful projects. This can be a small percentage – but offers them a compensation upside that they are unlikely to find at another company.
  • Create a peer-recognition award like another company’s RAVE Award (Recognition, Achievement, Value, and Enthusiasm). On a regular basis – perhaps quarterly – the engineering team has the opportunity to select one of their members for this award. Components of the award may include a plaque, a free dinner or massage, or something that team members value. Ask them what they would like to see as rewards within the program.
  • A similar technique is a peer recognition box. Engineers nominate peers for recognition based on performance in a team project. At regular intervals, draw a name from the peer recognition box, with the winner receiving, for example, a gift certificate. The dollars are less important to the recipient than the recognition.
  • Focus on making the company “the place for talented engineers to work.” This can be as much a cultural situation as a place to make a great salary. The more that the company creates a fun and personally rewarding culture, the more it builds “stickiness” into the job. Ask the team for their input to shape the team and work environment.
  • Provide performance incentives for meeting quality objectives while exceeding time objectives. This beats existing cost estimates, so share some of the savings with the team working on the project.
  • Make special company celebrations a regular part of the company culture – for example, evenings out at premium restaurants and including spouses or significant others. By treating significant others well, the company creates a disincentive for the employee to leave.

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Is Burning the Candle at Both Ends Doing Harm or Creating the Legend? Four Points

Situation: A CEO fills nearly every minute of the day with activity. All are meaningful, and he enjoys the contribution that is made to each. Many activities involve his children and activities important to members of his family. However, because he asks the question there is something that is nagging at him. Is burning the candle at both ends doing harm or creating the legend?

Advice from the CEOs:

  • The priority is a positive, healthy lifestyle. Two answers to the group’s questions are in conflict with this.
    • Four to five hours of sleep at night is not enough to sustain the current level of activity.
    • Medical studies indicate that while some people can get along on 6 hours of sleep per night, most need 7-8. Those who get less than 6 hours on a regular basis are taxing their bodies as well as their psyches
  • What does your family think? Are there messages or hints indicating that too much is being taken on or that there isn’t enough time for them. If so, there may be too much on your plate.
    • The one person who does not seem to fit into the lifestyle described is your spouse. This individual needs attention – on a regular basis, not on a once-per-week evening out. Comments about too much activity are more likely a request for more quality time.
    • Given the importance of this relationship, not just currently but looking out 10-20 years, this indicates a need to reallocate proprieties.
  • Do what makes you happy. Each of us is the only person who can really monitor our activities, so each of us must set the metrics.
  • Create some monitors to assure that you are not over committing and that you are giving sufficient time to rest and your wife. After all, this is a marathon. It makes no sense to burn out in the first mile!

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How Can You Improve Your Time Management? Four Points

Situation: A CEO says that she fills her time with too much, leading to pressure. She is concerned that by thriving on pressure she may be sacrificing quality. Additionally, she wonders whether she is trying to do too much. How do you improve your time management?

Advice from the CEOs:

  • The real key is creating priorities, and concentrating on these. As Brian Tracy indicates in The Creative Manager, geniuses know how to concentrate fully on one thing at a time. As a corollary, multitasking is the enemy of genius and quality – it sounds neat to say that one can multitask, but the reality is that this is wasting both focus and productivity.
  • Many of the Forum members revisit their priorities daily.
  • Consider the Quadrant paradigm from Steven Covey:
Quadrant 1

Urgent + Important

This is where top CEOs spend 20-30% of their time

Characteristics:

Reactionary

Deadline-Driven

 Quadrant 2

Not Urgent + Important

This is where top CEOs spend 70-80% of their time

Characteristics:

Proactive

Planning Ahead
Quadrant 3

Urgent + Not Important (not on your high priority list)

Delegate These Tasks

 Quadrant 4

Not Urgent + Not Important

Do Not Do These Tasks

Be Aware of Them and Watch to See if They Become Important or Urgent
  • Quadrants 1 and 2 represent the highest priority tasks, and only the highest priority tasks. Quadrant 3 represents lower priority tasks. Quadrant 4 is self-explanatory.
  • As CEO, delegate many of the Q1 items to staff and spend more time in Q2.
  • Do Not spend any time in Q3 and Q4. There may be times when it is necessary to do some Q3 tasks, but keep these to an absolute minimum.
  • Use the quadrants to better manage time. Take the existing task priority list and categorize each task in the appropriate quadrant. Within each quadrant, prioritize each responsibility. Get together with the management team and delegate these tasks as appropriate. All of the Q3 tasks are areas to delegate to the team and supervise their work.
  • One of the responsibilities of management is to be the firewall for the CEO. This means keeping all Q3 and Q4 tasks off of the CEO’s plate, and handling as many Q1 tasks as possible so that the CEO can concentrate on Q2 tasks.
  • Completing this exercise should yield immediate ways to reduce existing time management pressures.

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How Do You Strike a Healthy Work/Life Balance? Three Points

Situation: A CEO fills nearly every minute of the day with activities. All these meaningful to him and the company, and he enjoys the contribution that he is making. However, he fears that he is beginning to burn out. Is burning the candle at both ends doing harm or creating the legend? How do you strike a healthy work/life balance?

Advice from the CEOs:

  • We are best at what makes us happy. We are the only individuals who can really monitor our activities, so we must set both our own priorities and the metrics.
  • The priority is a positive, healthy lifestyle. What may be getting in the way?
    • Getting enough sleep. Medical studies indicate that while some people can get along on 6 hours of sleep per night, most need 7-8. Those who get less than 6 hours on a regular basis are taxing their bodies as well as their psyches. Are you are not getting enough sleep to sustain your current level of activity? Is the recovery time from strenuous activity increasing? If so, your body is telling you something!
    • Quality time with significant others. Are you spending enough quality time with your spouse and children? On a regular basis, not on a once-per-week evening out. Is your family receiving the time and attention that they need, or are they sending signals that they need more? Given the importance of these relationships, not just now but looking out 10-20 years, perhaps it is necessary to reallocate proprieties.
  • Create monitors to assure that you are not over committing and that you are giving sufficient time to rest and your family. After all, this is a marathon. You don’t want to burn out in the first mile!

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Where Do You Focus to Build a Strong Company? Four Considerations

Situation: A company has just hired a new CEO. Historically the company has focused on high quality and good customer service but has lacked good financial management and has experienced financial difficulties. As a result, they could not support their staffing needs. Where do you focus to build a strong company?

Advice from the CEOs:

  • Critical areas where the CEO should focus:
    • Quality – assuring that the company continues to produce high quality products.
    • Customer service – assuring that the company continues to offer excellent customer service.
    • Quality and customer service must remain one and two, though they can be in either order.
    • Financial soundness; but not so focused on the bottom line that either quality or service suffer.
  • How do you achieve or maintain focus on these areas?
    • High quality and good customer service are already well established.
    • What has been lacking is sound financial management. Evaluate whether the right people are in place, and what financial and financial record systems are in use. If expertise is needed, bring in an expert to evaluate both personnel and systems and recommended changes that need to be made.
  • What other important factors should be the CEO’s focus?
    • Ethics – particularly when evaluating the company’s financial system, assure that both people and systems support a strong and reliable department. This may result in some hard decisions that are necessary to turn the situation around. If this is the case, be determined but fair.
    • Sustainable business practices – assure that any new practices that are instituted are sustainable. Look at case studies of similar companies that have turned themselves around.
    • Fun – an enjoyable workplace as far fewer issues than one that is difficult. It is important to build strong teams, and to give them the autonomy necessary to do their jobs well without overly taxing team members.
  • Build a company that has a good balance between the first 3 critical factors. When new hires are necessary look for people with an established track record and business background who also have strong ethics.

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How Do You Take Advantage of a New Technology? Two Foci

Situation: A company has had early success with a promising new technology that compliments the company’s strategic direction. Their objective is to become one of the top suppliers and servicers of this technology in their service area. How do you take advantage of a new technology?

Advice from the CEOs:

  • Leverage the company’s strengths to create an early advantage in this technology.
    • Create a low-cost delivery system to take advantage of opportunities available through this technology initially at a lower margin, then offer enhancements to build margin to company norms.
    • Investigate other markets and applications where this low-cost delivery system can generate you new opportunities.
  • It is early to assess whether the new technology will become dominant, or just the latest fad. It has been on the market for less than two years and is just taking off.
    • Take the next few months to dig into what is happening within vendors of the technology, and how they are perceived by their client companies.
    • Talk to CIOs about their perceptions of the technology based on the last few quarters of experience – quality of implementation, quality of service. Other providers add a layer to the cost – is the service worth the cost or do client companies save over time through overhead reduction?
    • Talk to other vendors from other market areas – learn from their experience selling and working with the technology.
    • How do the other vendors make money? Are costs to their corporate clients offset by savings implementing the technology? What margins are the others enjoying and does this come from the initial technology, from add-on services, or complimentary sales. What is the perception of the sustainability of this technology both within the providers and to the CIOs? What about the technology really irks corporate clients? Where is the soft underbelly of this technology? Research may assist in making future decisions on how to approach the technology and clients.

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How Do You Manage Growth in a Difficult Economy? Seven Suggestions

Situation: A CEO’s company has struggled due to difficult business conditions during the last year. Top among the challenges has been poor execution in hiring quality people, not because they weren’t available, but due to uncertainty. He is also concerned about infrastructure issues, particularly in IT. How do you manage growth in a difficult economy?

Advice from the CEOs:

  • Focusing on IT, a key element for success in IT is having a clear definition of company needs. How does IT serve the company? What are the goals and objectives of the IT system? What kind of load must it be able to handle? What aspects of the system are most critical to company success?
  • Finding quality talent with the necessary experience is a challenge; particularly if solid goals and objectives haven’t been developed.
  • One CEO shared success managing IT. The company hired two IT professionals and had them report to an internal committee. This committee then communicated effectively with management.
  • Another CEO observed that some IT people look at their job as a process rather than a function; they just show up and fix things. Management of IT was improved by establishing clear objectives and holding the IT staff accountable for their performance against these objectives.
  • Another CEO told the story of terminating their IT person due to lack of consistency. IT must operate under management oversight, with clearly defined goals and objectives, and accountability.
  • Outsourcing some IT functions can help if used with care. On-site staff can focus on system maintenance and fight the inevitable fires.
  • IT costs should be thoroughly reviewed. They can be expensive. Look at IT costs as a percent of sales and compare expenditures with others in the industry sector.
  • Take a similar approach with other functions needing attention.

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How Do You Pursue a Market Expansion Opportunity? Three Points

Situation: A CEO is considering expanding market reach to include an additional specialty niche in the market currently served. He sees the opportunity to diversify the current offering, to make significant money, and to grow the company. The principal challenge is finding a person to build this capacity. How do you pursue a market expansion opportunity?

Advice from the CEOs:

  • Without a leader to build the new capacity, an individual who already knows both the technology and the market, it will be difficult to build the new capability.
    • Bring in a heavy hitter with a proven track record in the market to develop the new capability. Someone who can build a team to offer the same quality / delivery package that has been the source of the company’s success.
  • Once this individual has been identified and is onboard, gather top management and develop clarity on the company and its values – why the company is in its current as well as the new business and what the company does for itself and its clients.
    • From this exercise develop or update the values statement and a vision / mission statement.
    • Consider hiring a consultant with proven experience in the market to help develop the value statement, mission, and some of the strategic and planning capacity that the company has not yet developed on its own.
    • Communicate these openly and reinforce them frequently with staff. This will help them understand the company culture as well as the vision for the company. It will also help them to understand the decisions made to guide the company.
  • Is there another firm – or an independent consultant – with proven expertise in in the new field to work with the company on the proposals that are being submitted for the new market?
    • This will help to evaluate the market and to get a taste of what is involved in this work before making a major investment to support the new capability.
    • It will also speed the development of expertise to address the new opportunity. If it goes well, the company can consider either a deeper joint venture, hiring the consultant, developing its own capability with internal resources, or a combination of these options.
    • In the short term, this will impact cost and margin but will substantially reduce risk.

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How Do You Best Test a New App Online? Five Perspectives

Situation: A CEO has a new app that her company wants to test online. The principal challenge is avoiding a “catastrophic success” – success that ramps so quickly that the company is unable to deliver the quality or responsiveness expected by users. How do you best test a new app online?

Advice from the CEOs:

  • The challenge is similar to that faced in the massively multiplayer game space.
    • Creators target a small number of known enthusiasts (sneezers) with the message that they are special. The creators ask them to preview a new game and provide feedback that will help the creators produce the best game possible.
    • Never apologize for an Alpha or Beta test. Let enthusiasts know that they are getting the first peek at what will be the greatest thing since sliced bread. Enthusiasts will tolerate Alpha conditions – as long as the company responds quickly to their suggestions for service or performance improvement.
  • For initial live tests hype the coolness and uniqueness of early availability and adoption.
    • Don’t lower expectations – manage them by responding very rapidly and fixing any glitches. This is why Web companies are 24-hour, eat and sleep in the office affairs during launch and for as long post-launch as needed to assure success.
    • Continually hype the coolness of being involved early.
    • Use the current version as the early test. When the company is ready to spread beyond the very first users, reward them for sneezing the app to other users.
      • For example, as a Beta Testers, users get 10 free 1-year plug-ins to give to their friends. For each additional user that they bring on-board, they get an additional 10 free 1-year plug-ins.
      • This technique supports the coolness of having been a Test participant because it makes the participants cooler with their close circle of contacts. The really smart ones will give free plug-ins to other sneezers and influencers. Reward this latter group for bringing on additional users.
  • Using lessons from the gaming market:
    • Shake out all issues pre-Alpha Test.
    • Conduct automated testing of the software via server farms that are set up for this.
    • Be prepared for upgrades – both in the software and in the server farms. Typically upgrades are conducted while the software and systems are live.
    • Create test localities to pre-test any upgrades to assess the impact on performance and service prior to deployment. This minimizes disruption to the broader audience.
    • Recruit, alert, and reward those who assist with these tests.
  • It is possible to conduct an unsophisticated Alpha Test, but this can’t be risked in Beta Tests.
    • Alpha testing is usually conducted as an internal exercise and lasts until all of the bugs have been identified and worked out.
    • The Beta test is then planned, with a known number of sites or users.
  • Concerning IP Protection:
    • Threats will come from two sources:
      • The iTunes types who may perceive the new offering as a threat to their markets – ones with deep pockets to keep the company busy defending its legal position.
      • International teams who rapidly clone any new technology that they find for a variety of motives. These groups tend to work from locales where IP protection is difficult to impossible.
    • IP is not secure until tested in courts. Often this involves the most innocuous aspects of the IP or software offering. In addition, big players may seek injunctions to halt service until courts resolve claimed IP conflicts.

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