Tag Archives: Services

How Do You Establish Sales Accountability? Three Approaches

Situation: Several CEOs have experienced difficulty establishing accountability within their sales teams. Sone sales reps consistently come up with excuses for not generating new accounts or meeting their sales objectives. The impact of lost sales had significant effects on revenue performance. How do you establish sales accountability?
Advice from the CEOs:
• It is vital to understand who are the best customers and most profitable products and services for those customers. Establish regular sales meetings to discuss customers, products and services, to identify promising sales opportunities and to coordinate sales efforts.
• Work with both sales management and individual team members to determine desired outcomes:
 Set sales targets – work with the team to establish firm expectations on reasonable and achievable sales targets. Agree on a tracking system to measure progress toward those targets. Encourage members of the team to work together to achieve the targets.
 Customer type – who are they, what are their priorities and expectations, and how can the company best address these.
 Product(s) – work with the team to determine which products best fit each customer type and develop creative ways to position those products to increase sales.
• Establish measurable behaviors which if done will result in success. For example:
 Calls per week and results of those calls.
 Relationships with key decision makers and development of additional relationships within existing and potential customers.
 Thorough qualification before quoting, presenting, demo, and so on. The who, what and why that connects with successful sales..

[like]

How Do You Optimize Your Product Offering? Four Points of Focus

Situation: A CEO wants to take better advantage of his company’s product offering. There are many opportunities available, but the company needs more focus on optimizing these opportunities. How do you optimize your product offering?

Advice from the CEOs:

  • Brand – Where has the company been? Where is it going? The world is constantly changing – what’s the company’s new brand? The brand identifies the company and both your customers’ and business partners’ identification of the company and its products and/or services. In a changing world with increased competition and “noise,” having a strong handle on the brand and brand message is critical to remaining at the top of customers’ and partners’ awareness.
  • Education/Customer Advocacy – An underutilized source of marketing strength includes both customer education and customer advocacy. Customer education allows the company to better position its product and/or service to the customer and helps the customer better meet unrecognized needs. Customer advocacy positions the company along with its customers in an area of mutual interest and strengthens both bonds and loyalty.
  • Diversification & Channels – In a changing and rapidly diversifying world, being open to new opportunities and channels through which to reach the company’s stakeholders is a source of sustainable advantage.
  • Partnerships to Take Advantage of Diversification & Channel Opportunities – Partnerships are an underutilized resource to creatively diversify and open new channels to stakeholders. They require less investment than doing everything on your own and can form the basis for key alliances and strengths going forward.

[like]

 

How Do You Unlock Your True Profitability with Sound Cash-Flow Trade-offs? Six Points

Situation: A CEO has her company on a positive growth track. The company has a solid customer base. Their products and accompanying services are increasingly well-accepted. She is ready to take the company to the next level of growth and profitability. How do you unlock your true profitability with sound cash-flow tradeoffs?

Advice from the CEOs:

  • Profit is different from cash flow. Make this distinction clear and act to boost cash flow.
  • Tracking Cash & Forecasting:
    • Watch the company’s bank balance. Frequently track cash inflows and outflows by period.
    • Carefully assess and project the pattern of customer buying habits and payment performance to develop sound revenue assumptions.
    • Compare the company’s margin dollars and billings with norms for peer group businesses.
  • Issues to consider in forecasting:
    • Hiring means commitment of future cash outlays. Consider contingent work force options.
    • Project and plan for future large payments (equipment, technology, marketing, loans, etc.)
    • Differentiate between investing in ongoing business capacity as opposed to incremental add-ons.
    • Look at cyclical trends and issues. Understand your customers’ purchase habits and patterns.
    • Develop likely “what if” scenarios (good and bad) and develop plans to reduce the impact of surprises.
    • Analyze the company’s business model and determine exactly how cash flows through the company’s operations.
  • Analyze important upcoming decisions: hiring equals investment; outsourcing equals expense. Evaluate needed support for each.
    • Differentiate investment versus outsourcing decisions. Smooth cash flow through selective outsourcing – especially when dealing with sudden or cyclical peaks. Avoid the risk of committing long-term resources by staffing up to address short-term peaks.
  • Focus on the opportunity cost of money. Add this focus to both planning and assessment.
    • Operate with a mix of other peoples’ money and ownership funds. The latter are more expensive than bank interest because the trade-off is what you could earn through alternate investments.
  • Fine-tune the company’s planning tools. Analyze budget and cash implications of alternate plans through detailed budget projections and follow-up by tracking cash expenditures.
    • Use Cash Flow Statements to analyze and project trends in investments, operations and financing and how each of these affects cash balances.

[like]

How Do You Improve Your Company’s Website and Internet Presence? Seven Suggestions

Situation: A company has not updated their website for some time. As it considers making changes, how can the company optimize their web site for marketing purposes? What have others found to be most effective? How do you improve your company’s website and Internet presence?

Advice from the CEOs:

  • Look at how the company is currently using their website and Internet to reach clients.
    • The company currently has email addresses for 80% of their clients.
    • They have been sending an annual survey clients through either mail or email and get a 40% response rate. The best response comes from email. Assure that the survey can be completed in 5 minutes or less unless the respondent wishes to provide more detail as an option.
    • The company has a web page that comes up prominently on Google.
    • They mail or email a quarterly commentary on company performance and initiatives to clients.
  • What are the advantages of print media and mailings versus email blasts.?
    • Does the company have the capacity to automate both envelope addresses and letters for clients without email addresses? If mailings are created manually it makes sense to invest in software to create automated mailings.
    • For more personalization, use stamps instead of meters.
    • Both factors make mailings expensive to prepare versus email communications.
  • The home page of the company website should focus on:
    • Who you are.
    • What you do.
    • Who you serve.
    • Why you do it better than others – what significantly differentiates the company?
  • Invite and include clients in volunteer work to deepen relationships.
    • The company is dedicated to volunteer work.
    • Extend volunteer work opportunities beyond employees to clients who are interested in the particular project.
    • Publicize this on the company website, and send personalized thank you letters – “We built it together as a family.”
  • Create forums on the site for individuals with interest in particular topics related to the company’s offerings and activities.
    • The value of honest discussion is better than no discussion at all.
    • This also keeps the company abreast of changing attitudes and priorities of clients.
  • Create resource lists on the company web site of firms or individuals offering services which complement the company’s offerings.

[like]

How Do You Maximize Company Value & Strategic Positioning? Five Points

Situation: A CEO has a young company in a very favorable strategic position. The Founders have bootstrapped the company and it is currently on the “blade” of the growth hockey stick. How can the Founders maximize the value of the company as they grow it? How do you maximize company value and strategic positioning?

Advice from the CEOs:

  • What are company’s principal challenges and goals?
    • Over time, as the market begins to mature, there will be more competition and margins will drop.
    • Before this happens organize the company for maximum value, and build additional products and/or services that will maximize company value.
  • Hire managers to manage on-going business while devoting top management time to strategic market expansion and building new products and/or accompanying services.
  • Perform a strategic analysis focused on the long-term plan and building equity value. Plan a future that will optimize the company’s strategic position while increasing cash flow and equity value.
  • Anticipate, plan and organize for the he most likely coming changes to the market.
  • Consider starting a second company to compliment the value and products of the current company. For example, if he company is best at a key technology, start a second company to provide accompanying services that will enhance the value of the technology. Having done this, future options open up to either combine the two companies or to let them grow on complimentary paths.

[like]

 

How Do You Position a Company for Value and Growth? Six Points

Situation: A CEO wants to set up her company for long-term growth in value. The business has favorable margins relative to competitors and high cash flow. It is currently single-site but has a good model that could be expanded to multiple sites. How do you position a company for value and growth?

Advice from the CEOs:

  • Paint a picture of growth and cash flow. Use this picture to inspire both the home site and remote sites as they are developed.
  • Develop and demonstrate a Growth Model. It is important to demonstrate the success of the model so that it can be replicated in remote locations.
  • Get multiple sites up and running as proof of a profitable growth model.
  • As the company moves to a multi-site model, assure that each site manager has a financial interest in the success of the site. Develop a compensation system that rewards the manager for both growth and profitability. Develop a complimentary system that rewards key site personnel.
  • Develop additional products and accompanying services. These can be sold to current customers as well as new customers at the home and remote sites to boost growth.
  • As the model grows use the improved cash flow to buy other companies that are complimentary or expand the capacity of the existing company.

[like]

How Do You Expand into a New Market? Four Points

Situation: A company is interested in expanding into new market. The CEO notes that they have little experience in this market, but it is lucrative, and they believe that their technology has effective applications in this market. How do you expand into a new market?

Advice from the CEOs:

  • If the new market is technical it is important to identify the standards that govern production in that market. Examples include ISO 9000 processes and 13485 ISO Medical Standards. Start work on these now to assure that the products and services under development meet market standards.
    • While it will take effort to become ISO compliant, this investment will bring significant benefits in terms of regularizing all the company’s processes and procedures.
    • There may be some early resistance, but the long-term benefit is worth the pain.
    • Being ISO certified helps the company to sell its services. Many clients will not consider the company as a serious vendor unless it is ISO certified.
  • Pull in an outside consultant to do a quick gap analysis between where the company’s current procedures are and where they need to meet the standards.
  • Will ISO certification provide a competitive advantage?
    • It will never disadvantage the company and may provide a competitive advantage with customers.
    • Use Blue Ocean Strategy to create a new advantage for the company around ISO certification.
    • Industry will eventually require vendors to increasingly become ISO certified. If the company is already there it will be ahead of the curve and may be able to gain a premium price for its products and services by being there ahead of others.
    • European and International companies increasingly insist on ISO certification – they are ahead of the US.
    • Create a Market Road Map. Identify the markets that the company could serve. Look at the requirements for doing business in these markets. It may be possible to find additional leverage in ISO certification that will allow the company to enter additional markets with minor incremental additional cost.
  • Will ISO certification add an additional cost structure to the company’s services?
    • Under ISO, a company can have both ISO and non-ISO projects. Company standards will simply identify which projects are which and when non-ISO standards apply. Standards can be changed under ISO as new non-ISO opportunities arise. It is just a matter of updating procedures.

[like]

How Do You Sell an Onsite Business? Five Perspectives

Situation: A company has several locations for its operations. One is onsite at one of their principal customers where they perform services for the customer. The rest of the business is pursuing a different direction, so the CEO wants to sell the onsite business and focus all efforts on the main business. How do you sell an onsite business?

Advice from the CEOs:

  • Do onsite business (OS) personnel identify themselves as part of the company or the customer’s company?
    • The older personnel themselves as part of the parent company; the new engineers see themselves as tied to the customer which is far larger and enjoys broad and positive brand recognition.
  • Now may be the time to sell from a price perspective. Companies are hungry for revenue sources and experienced personnel. The price that they would pay for the OS business is small change for them.
  • The decision comes down to price – can the company get the right price at the right terms?
  • Consider this alternative – break the OS off into an independent entity. Make it a separate company with own managers.
    • This allows the sale of the OS to be set up with its own operating rules and incentives, independent of the company’s other operations.
    • This move queues the company up for whatever is possible – ongoing operation or possible sale to a buyer. It also simplifies the sale scenario as OS would be a stand-alone unit, with its own personnel and management structure. There may be some shared infrastructure services with the company’s other locations, but these are services that would be taken on by the buyer using their own systems.
    • An option is to give stock to the managers of the OS – a piece of the pie to encourage them to stay on.
  • Given the company’s strategy and direction, investing additional funds in the OS doesn’t make sense. Selling and keeping the money makes more sense if the company is ready for this and feels that there is little or only a limited future for the OS business.

[like]

How Do You Shift the Sales Mix? Five Suggestions

Situation: The CEO of a professional services company wants to shift the focus of the company from emphasis on service of existing customers to new customer development. Historically they have counted on repeat sales, but these have lagged. The CEO wants to develop new customers to build current and future revenue. This is a mentality shift. How do you shift the sales mix?

Advice from the CEOs:

  • The objective is to move the current customer to new customer mix from 80/20 toward 40/60.
    • As an example, the CEO has shifted her focus day to day management to long-term planning and strategy over the last two years.
    • Now it’s time to motivate others to make a similar shift in customer development.
  • Make the shift to sales – to rain-maker – a requirement for Partner Track. Let those who want to pursue Partner Track know that this is a key part of their qualification for Partner.
  • Make cash flow analysis an integral part of new project proposals and current project tracking. Have project managers devise their project analyses to show return but review these to assure that their analyses are accurate. Require them to sell their analyses to the Partners. This will help them to see the value of correctly bidding new projects up-front.
  • Ask them – what do you want to be doing in 10 years? How will you be contributing to the goals of the firm? What are you doing to get there? Communicate the critical metrics that will be evaluated: sales, new account development, profitable bids and project cost control. Focus cost control on keeping options presented under control and minimizing rework.
  • Reserve Partner Track for those who can produce both sales and effective delivery of services. In employee reviews make this distinction clear.

[like]

When Should You Bring in External Resources? Four Suggestions

Situation: A company provides market research, technical assistance, and related services for clients. It receives most of its work from proposals. Both writing successful proposals and carrying out the work of accepted proposals are critical capabilities. Should they bring in external resources to increase the number of proposals submitted? Where should these resources be focused?

Advice from the CEOs:

  • Identify the most critical tasks that contributed to proposals that have been awarded.
    • Determine, between writing and editing, which tasks are most critical. Focus internal resources on these tasks and seek outside resources to assist with the less critical tasks.
    • Provide incentives to those who write grants that are awarded.
  • What portions of the proposals could be written using external resources?
    • Background information, including corporate history, tends to be repetitive between proposals. However, this material is also difficult for an outsider to master.
    • One option is to secure outside resources that will commit to the company for a long time. These resources would have the time to learn and master the historical data.
    • Another option is to use the company’s database to store and code historical data. These data could then be managed by a less expensive internal resource and collected with appropriate filters for each new proposal that arises.
  • Codify the repetitive source material in a database. Secure software that makes it easy to filter and recall selected data for the writers of new proposals.
  • An alternative to using outside resources is to develop an internal coordinator who is master of this database and who is responsible for gathering appropriately filtered data to support the efforts of the company’s proposal writers.
    • By taking care of this portion of the proposal writing task, it will be easier to find enthusiastic project leaders to take on the more creative aspects of new proposals.

[like]