Archive for Business
The Day Consulting Was Born
It happened on a sunny day in the mid Paleolithic. The glaciers had disappeared for some time. A man was working outside to create a stronger, more piercing point on his stone spear. He thought it would be helpful to have a better tool for hunting and fighting enemies. His father, his uncles and all his brothers did it on a regular basis. And they did it the same way. They all abraded the sides of the point on a larger stone. This took a while. But nobody seem to know any better. It was part of being a hunter.
That day a stranger appeared. Nobody knew him. He didn’t seem to have a clan. So, they all kept an eye on him. The stranger watched the hunter for a while in his attempts to sharpen the point. Then he walked up to him and put his hand on the hunter’s arm suggesting to stop the work. He indicated to the hunter to follow him. They went to a stone field and looked for stones. The stranger tested numerous of them trying to find a harder rock. After a few minutes he found one. He gave that rock to the hunter. They walked back. The hunter restarted his work. And indeed, it was much easier now. The spearhead became sharper in less time.
The hunter was very pleased. The stranger had just safed him a lot of time and energy. He wanted to return the favour. He fed the stranger well and offered him an amulette made out of tiger teeth. The stranger gladly accepted and continued his journey. That was the day consulting had been born.
Blogs and Blurbs on BFBG
Bob Sproull’s “Focus and Leverage Blog”
Jack Vinson’s “Knowledge Jolt with Jack”
Kevin Rutherford’s “Silk and Spinach”
Momentum in Business
Here is how it feels to have momentum. The phones are ringing. We don’t have time to read the morning newspaper because we have a tough time keeping up with the proposals we need to review and the contracts we need to read. Our delivery teams are busy. At the water cooler people talk about their premier airline status. We try to squeeze more functionality into the next release to make clients happy. We look at new hires, we even find more office space. The company is buzzing.
Here is how it feels if momentum is slipping. Customers are tough to get hold of. Deals are postponed. There are sudden departures from your own ranks. All and all, it’s quiet.
We all like to see the former, and we all dread the latter. The recession is over, but we are very far away from a booming economy. What are the lessons learned from the last few years operating in an economy that is trending sideways at best? How do you create momentum? What can we do to make our customers believe in our company and our solution? What can you do to make your own people believe they can make the “impossible” possible?
Here are my five lessons learned while operating successfully in a tough market environment.
1. Messaging – In any economy, our messages should be customer-focused, not product-focused. We need to know what the pain points are of our customers and how we can address them. Keep in mind that in a tough economy, customers’ needs and concerns change. We need to adjust our messaging accordingly
- Demonstrate value and return on investment. This can be done by pointing out that customers can do more with less, by simplifying a process or enhancing the value of our client’s offering. For example, if our product is exceptionally easy to use, we can demonstrate how the improved ease translates into savings.
- Decision-makers are increasingly wary about their jobs now. They need to understand how to enter a relationship with us safely.
2. Laser focus on target markets – If business gets tough the natural inclination is to chase every opportunity in order not to miss out. Someone drowning in the ocean flails frantically trying to keep his head above the water. I would recommend the opposite approach. Use coordinated strokes to keep your company’s head above the waterline.
-
Have laser focus on the core companies and industries that can use your products or services. Make sure that you truly provide value and then pursue these markets relentlessly. Instead of simply increasing the “shots on goal” increase the quality of your company’s pipeline.
-
In tough times, businesses will enter a relationship with our organization if we provide them with good reasons. (e.g strategic reasons, operational efficiencies, ROI).
3. Pricing – Take a look at your approach to pricing. This doesn’t mean you should enter deals at steep discounts, but here are some options to consider.
- Update pricing models. If we have been selling bundled products, consider un-bundling and offering products/solutions in smaller chunks. A number of smaller deals is better than no sale at all.
- Consider try-and-buy offers. Give customers a taste of the solution and, assuming the product or service is as irresistible as you know it is, you will only defer revenue briefly. This also helps to reduce the perceived risk of your customer betting her career on entering a relationship with your company.
4. Engage customers – Focus the marketing on “conversations” with customers. The days of one-way marketing are over. Customers want to talk with you on their terms, so narrow the gap. Make it personal. Be accessible.
- Nurture prospects until they are ready to do business.
- Encourage customers to be part of the conversation by building online communities that provide value to them while keeping you front-of-mind.
- Stay close to existing customers and maintain the relationships. Customer events such as user conferences are a great way to accomplish that.
5. Internal communication – Make sure that the people in the organization share your convictions. They get the news, too. Some will have doubts about the company’s future. Others are afraid of rising prices and a stagnant economy. As much as you are convinced of the viability of your strategy, your people need to be convinced as well. They need to believe that the goals for the company are achievable. And they need to see the path. Be authentic in the way you deliver your strategy within the organization.
