Planning – Need a Game Changer? Ford, Seahawks Are Good Case Studies

 

If your business is performing in a mediocre fashion, chances are your company needs an overhaul. A culture change, if you will. For positive case studies in change-management for a game changer, take your pick – either Ford or the Seattle Seahawks will suffice. Such best-practices in cultural change-management work for nonprofits, too.

Game-changing requires an assertive, strong administrator, especially because all such organizations go through humbling experiences. Strong visionaries know how to profit from ego-destroying events.  Effective managers have been the catalyst for Ford and the Seahawks.

First, let’s consider one of the salient Ford headlines, such as: “Ford Makes Comeback From the Brink to Billion-Dollar Profit.

Actually, Ford’s fortunes began to improve when it looked outside the carmaker for solutions to its challenges. The automaker recruited Alan R. Mulally from Boeing.

The irony is that Mr. Mulally had his own ups and downs, of sorts. He had been bypassed twice by Boeing for the CEO’s job. But he was able to put his full talents to work at Ford. 

Not to oversimplify, Mr. Mulally has notably installed a competitive, sustainable business model. He simplified production processes. Managers, in effect, were told to change their perspective on change. He inspired a positive balance sheet by taking strategic steps on Ford’s cash flow. 

Unlike Chrysler and General Motors, he didn’t seek a government bailout. This meant Ford was able to focus on being proactive, for example, development of new vehicles – cars consumers would buy. Ford would not be hamstrung by bailout cash-flow constraints. Chrysler and GM became beholden to the government – bureaucrats called the shots. Ford didn’t have to resort to discounting and incentives to attract car buyers.

Ford’s brand image skyrocketed as Chrysler and GM suffered from poor images – they were only able to survive with the help of bailouts and bankruptcies.

In other words, Ford’s success was summed up by this headline: “Ford Says Culture Change Has Led to Success.”

Seahawk lessons

So why are the Seahawks a good case study? For starters, let’s consider the headlines, such as: “Seahawks stun defending champion Saints.” There were more than 2,800 such headlines on the Internet referring to the Seahawks upsetting New Orleans, 41-36, in the first round of the National Football League playoffs in the 2010 season.

Just as Ford’s comeback was launched when Ford hired Mr. Mulally, the Seahawk comeback started when owner Paul Allen hired Pete Carroll as head coach. Mr. Allen has a good eye for talent.

Previous, Mr. Allen astutely hired Green Bay Packers Head Coach Mike Holmgren. Among his many accomplishments, Mr. Holmgren won at Green Bay, and he’s credited with the development of quarterbacks Steve Young and Brett Favre.

The management mistake, however, was that Mr. Allen installed Mr. Holmgren as both his executive vice president/general manager and head coach. As a Biz Coach, I wrote then that Mr. Holmgren couldn’t adequately handle executive and coaching responsibilities – a classic case of the Peter Principle – people rise to their level of incompetence. Mr. Holmgren is very talented in coaching and developing quarterbacks, but being an entrepreneurial chief executive requires much-different skill sets.

It’s not just a matter of knowing football. Many businesspeople make the same mistake. They only consider hiring people from their industries without regard for all the necessary skill sets. Mr. Mulally didn’t have automotive experience, but his management and manufacturing skills were transferrable from the aircraft industry. Simplly put, solid business principles are applicable in all industries.

It wasn’t until Mr. Allen removed the executive chores from Mr. Holmgren that the Seahawks finally made it to the Super Bowl in 2005 to play the Pittsburg Steelers. Only bad officiating kept the Seahawks from being world champs.

Meantime, Mr. Holmgren appears to be making the same mistakes. He’s been president of the Cleveland Browns since late 2009. Press reports indicate Mr. Holmgren is searching for a new head coach, and may consider being the team’s coach, too.

Mr. Carroll’s initial 7-9 season was judged to be lackluster, at best. But all was forgotten when his team, a 10-point underdog, upset the New Orleans Saints in the first-round of the playoffs. Most fans consider the game to be one of the biggest playoff upsets of all time.

True, I’m located in the Seattle area, but my Biz Coach sense is that the Seahawks are the most-dangerous team in the playoffs. Why? They continue to evolve and will continue to be under-rated, even though the playoffs are, in reality, a new season.

It’s obvious Mr. Carroll, like Mr. Mulally at Ford, has adroitly installed a change in the team’s culture. With the general manager, John Schneider, Mr. Carroll has overseen 275 roster changes on the 53-man squad.

Despite his sub-.500 2010 record, Mr. Carroll is not embarrassed and motivated his team to great heights. Twice, the Seahawks trailed the Saints by 10 points but didn’t give up and stayed with a resourceful game plan. They put 41 points on the board against a superb defensive team.

Not to overlook everyone’s play, among the highlights: Matt Hasselbeck, a 12-year veteran, had his first four-touchdown playoff game. To ice the game Marshawn Lynch delivered the team’s first 100-yard game this season in breaking eight tackles in his miraculous 67-yard touchdown.  

Much has been written about the cacophony of the Seahawks’ twelfth man – their raucous hometown fans at Qwest Field. But guess who motivated the fans in the week leading to the playoff game?

Mr. Carroll made good use of his Twitter account (or at least his representative did) in inspiring fans to be loud and vocal at the game. His boyish enthusiasm is fun. Mr. Carroll’s attitude is contagious and worth catching.

Such passion begins with enlightened management. That’s what I’d call Messrs. Mullaly and Carroll.

Steps to success

Here are the basic ingredients for a business game-changer:

Management – True leaders are strong, knowledgeable, and manage risks. They oversee all fundamentals but delegate – finance, marketing, operations, product management and customer service. Executives must also have a team spirit – an environment of collaboration.

Vision – Top managers possess skills in analyzing their strengths, weaknesses, opportunities and threats in strategic planning. They avoid complacency and must continually fine-tune the company when appropriate. That means habitually practicing the Principle of Contrary Action, which is a process of learning how to keep an open mind.

Focus – Managers must outline their master plan, stay focused and inspire the staff – the frontline responders to the marketplace – where the proverbial tire meets the road. Nothing great has ever been accomplished without enthusiasm and passion.

Best Practices – Senior management must inspire best practices for quality in all areas. Creating value is job one.

Mobility and flexibility –The 21st century marketplace requires quickness and mobility. This also means empowering all workers in decision-making and in being proactive.

Listening skills – Effective managers are approachable. In a proverbial sense, they walk the floor twice a day to interface with their employees. They hire managers and staff members who, too, are effective in listening skills. That’s the first step for a motivated staff and creating profits. Without even looking at financials, an astute outside participant will always be able to ascertain the success potenial of a company merely by watching the interactions between management and staff.

Communication – Good, open communication is required internally with the team members and with the customers and marketplace. In this way, you’ll take great steps in inspiring loyalty from customers.

From the Coach’s Corner, here are related topics:

Solutions to Rejuvenate Yourself and Business

Leadership, HR, Marketing Lessons from HP’s Executive Turmoil

How to Get Results from Your HR Training Investment

Business Got You Down? Tips for a Morale Boost

Leadership Strategies to Profit from Employee Respect

How’s Your Strategic Planning?

Strategic planning suggestions that work for nonprofits and businesses

 

Are you ready to compete? Is your company like many that need to rethink their strategic plans? Here are some tips in strategic-planning basics.

Cash flow for companies is a common problem. Some businesses have grown too fast. Others have fallen short in due diligence. Many failed to plan for a roller coaster ride. No matter the reason, as a result, many are cutting muscle in human resources and marketing.

History shows the organizations that keep pressing forward do better in the short term and dramatically increase market share as the economy improves.

In a weak economy, successful companies know employees are a key asset and they stay on the attack in marketing. In this way, they’ll maintain market share and develop opportunities for growth at the expense of their competitors.

And, instead of waiting for a transforming event to rescue them, successful companies don’t miss opportunities to grow. They recognize opportunities and seize them by launching and periodically fine-tuning their strategic plans.

Do you know when should you create a new strategic plan?

Here are the five reasons to create a new one:

1. When your company is new.
2. If you’re looking for breakthrough results.
3. If your firm is failing in cash flow or customer satisfaction.
4. If you have a limited budget in choosing options.
5. If you need to set short and long-term goals.

Here are some tips in strategic-planning basics:

Schedule blue sky sessions to make a plan. Ask lots of questions, such as: What are your financial goals? What are your biggest challenges? What is the desired footwork? What will be the required investments? Develop a vision of what you want to achieve and then draw your road map of how you can make that vision a reality.

Make choices based on your return on investment. Some opportunities are positive, but some aren’t. Record and analyze how you spend your time and money. Determine your ROI on each before moving ahead. Not every idea is a good opportunity.

Acknowledge that perfection is not attainable. Procrastination results if you’re looking for perfection. Don’t be afraid to act.

Brace yourself to stretch your comfort zone. Remember the definition of insanity: “If you keep doing the same thing time after time, but you’re expecting new results, then…”

Be assertive – make a commitment. Once you make a decision, don’t engage in self-doubt.

Here’s an example provided by one of the world’s great entertainers:

As a youngster growing up in Palm Springs, one of my neighbors was Bob Hope, who passed away in 2003. So I was especially motivated to interview his grandson, Zachary, regarding the comedian’s business philosophy.

He confirmed his multi-millionaire comedian grandfather wasn’t joking when he used to say to his family and associates: “Get it done.” He said it was the comedian’s most-used phrase.

In summary, here are the basic components of a strategic plan:

• Mission. This is where you reason why your firm exists and where you list the contribution of your principal players along with your core values and priorities.
• Strengths and weaknesses. Evaluate your resources, including your employees’ skills and facilities.
• Opportunities and threats. List factors, such as changes in technology, employees’ abilities, available resources to help you achieve your mission.
• Forecast your capabilities. Anticipate any upcoming budget, resources and personnel changes before you forecast opportunities.
• Goals and objectives. Remember that goals need to be specific, measurable and developed by consensus of all principals. Then, outline your tactics to achieve your goals.
• Implementation. As you carry out your tasks, continue to evaluate the results and fine-tune your plan as necessary.

From the Coach’s Corner, for more on planning, see this site’s Planning pages. Meantime, don’t give up and as Mr. Hope used to say, “Get it done!”

“You’ve got to be very careful if you don’t know where you’re going, because you might not get there.”

-Yogi Bera

 

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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?

 

Solutions to Rejuvenate Yourself and Business

 

How’s business? Are profits meeting your expectations? In reading this column, you probably feel chained to a heavy weight.

If profits or cash flow are subpar, chances are you also have these symptoms and stress factors:

• Boredom – you’re tired of the same tedious routine.
• Clutter — your office and home need cleaning and organization.
• Disappointment – perhaps you lost a bid, a customer or a major client.
• Emptiness – you’ve successfully reached a threshold or acquired a major piece of business only to feel let down.
• Fear – you fear some challenges. You feel paralyzed.
• Personal problems – a troublesome, prodigal child or lack of support from your mate.
• Reading — you haven’t read an inspirational book or article lately.
• Sense of betrayal — an employee embezzles money or your spouse starts drinking or finds a lover.
• Tired – you’re demoralized when you fail to make progress in being overworked.
• Too few options – you can’t find enough customers or projects.

By the way, FEAR (an acronym for frantic effort to avoid responsibility) is the root-cause of all the symptoms.

Whether it’s a personal situation or professional, there are solutions.

My friend, you need to develop some hope. That’s what you get from developing options.

This means you need to take time for reflection or some deep strategic planning. Yes, I know — lack of time is one of the biggest complaints of businesspeople – they’re too busy putting out fires. So, that’s why it’s vital to budget the time whether you plan a big block of time for reflection or just an hour a day. But you can do it.

If you’re a small-business owner, yes, it’s difficult to set aside the time. To paraphrase Reggie Jackson when he was hitting homeruns for the New York Yankees, you’re the straw that stirs the drink. You’re the sparkplug.

However, you can’t afford not to get the job done. Your work suffers from stagnation. Clients and customers become resentful. Your income will drop.

Do you have employees? Your employees need your leadership. They look to you as the role model. You can influence their performance simply by being energetic and positive.

But what to do?

Here’s a business principle to remember: “No matter what there are no big deals. No matter what.” Remember this axiom to take the emotional sting out of your problems. You’ll be better prepared to deal with issues.

Here’s another: Budget your time so you can better understand your problems.

Here’s how to get going:

1. Write about your situation. Analyze your problem with a piece of paper and pencil
2. Get help from an outside participant. Find a consultant or coach.
3.  If you can’t afford help, and don’t have a mentor, find one. Even in college, I’d call a successful person in my chosen field and ask for a brief appointment. Once, as a junior I was offered a job as a TV announcer in a Top 50 market. After my career was underway but I was laid off, I called the founder of a major broadcasting company. He met with me three times and provided outstanding counsel.
4. Clean and organize. Refrain from using post-it-notes and put things away.
5. Create a vision – some goals. One page will work.
6. Then, develop a balance sheet – pros and cons of the possible solutions.
7. Can’t get things done? Start a to-do list. Do the most-challenging project the first hour of your day. You’ll start experiencing some energy.
8. Take other actions. Even if it’s only going for a walk, take baby steps. Then, accelerate your footwork.
9. Start reading — something helpful each day.
10. Periodically review your goals. Do you want to remain an entrepreneur? Do you need more money? Do you need more time?

Especially during the holidays, excessive drinking is a pressing problem — whether it’s an employee or spouse.

The best-known, least-expensive solutions for problem drinking:

• For friends, relatives or associates of drinkers, Al-Anon (www.al-anon.org) provides free tools. There’s even a program for youngsters. It’s called Alateen.
• For the alcoholic, Alcoholics Anonymous (www.aa.org) is the proven free solution.

Don’t be discouraged. Alchoholics will be hesitant to consider AA until they’re sick and tired of being sick and tired…or until a judge requires AA attendance after a drunk-driving incident.

If you’re the boss, but still don’t feel like working, perhaps you’re burned out. It can happen to anybody – whether it’s procrastinating on difficult decisions, paying bills, or dealing with difficult employees and customers.

So, take some time off. If you can’t get away for 10 to 21 days, then plan a series of mini-vacations. Get some exercise.

Remember: You can’t afford not to relax and exercise.

Good luck in your rejuvenation!

From the Coach’s Corner, you might want to read 30 Time Management, Stress Reducing Skills.

Profits: How and Why to Align Marketing with Sales

 

If marketing isn’t synchronized with sales, a company doesn’t enjoy optimized profits. So why is it so many companies don’t align their marketing with sales?

A 2010 study by Northern Illinois University and consulting firm Miller Heiman reveals some noteworthy data – companies that strategically align marketing with sales are more successful – even during the downturn.

Among 2,000 responding companies surveyed in Asia, Europe and the United States, about 33 percent orchestrate marketing and sales. However, another 33 percent say their two departments are in a “state of neutrality,” and the remaining third do not align the two functions.

In comparing 2oo9 results to 2008, the results are eye-opening for aligned companies:

• 12 percent stronger sales and 5 percent more qualified leads.
• 8 percent higher probability of conversion rates of 40 percent-plus.
• 29 percent conversion rate compared to only 24 percent for “low-aligned sales teams.”
• Aligned firms had a higher probability of success – 19 percent and at least a 5 percent sales increase. They also enjoyed a 3 percent growth in new business. But poorly aligned companies suffered from a .5 percent decrease in new business.
• In retention of customers, aligned firms were 11 percent more likely to enjoy 5 percent or higher success for highly aligned companies.
• In billing, their odds were eight percent higher for an increase and at least 5 percent higher than poorly aligned firms, which experienced a 3.5 percent decrease. Sales for aligned companies dropped 1.2 percent.
• In revenue, aligned firms were 4 percent more likely increase 5 percent. Lowly aligned companies had a 2.9 percent revenue decrease. Highly aligned firms decreased 1.2 percent in revenue.

But it isn’t necessary to examine financials to see missed opportunities.

Here are three examples:

• Many marketing campaigns are perceived as ostentatious. The copy is clever but doesn’t appeal to the five value-buying perceptions that motivate people to buy. (The value perceptions are in this column, The Seven Steps to Higher Sales)
• Marketing collateral boasts of professional salespeople, but salespeople fail to match the message in the marketing. When customers call to buy, the salesperson doesn’t fully understand the product, doesn’t develop a rapport, and is not enthusiastic. The salesperson fails to treat the occasion like it’s an event for the customer. If the customer doesn’t have a change of heart, in the end the salesperson fails to say thank you or to prevent buyer’s remorse.
• Or note the lack of enthusiasm when marketing campaigns are introduced to sales staff – the salespeople appear bored or they’re superficially attentive.

In the three scenarios, profits aren’t optimized. Sometimes, it’s because the wrong people are on the sales staff or the marketing creates images that can’t be met by sales. But, it’s also safe to assume the marketing and salespeople aren’t on the same page. They often don’t speak the same language.

That’s ironic for professionals who are supposed to be good communicators. Instead, there are often turf battles. Marketing people think they’re the only ones who are strategic thinkers. They think salespeople can only see to the end of their noses and are only concerned about their monthly sales quotas. Salespeople feel marketers aren’t carrying their own weight in generating sales leads. And so on.

The solutions:

1. Everyone needs to get on the same page. Starting with the senior executive, there needs to be a commitment for collaboration. The chief marketing officer and sales managers need to meet regularly, especially over lunch. Good things happen when people break bread together. The philosophy must filter down both staffs.
2. The two sides should continually work on talking the same language.
3. They should proactively look for weaknesses and breakdowns in communication.
4. Everything should be tested. There should be an agreement about prospect leads and quality.
5. Establish an ongoing reporting dialogue – input and feedback between marketing and sales.
6. Review and develop metrics for efficient accountability for both functions.

Good luck!

From the Coach’s Corner, for the above reasons by design, this Web site combines marketing and sales into one business-coaching category, Marketing/Sales, where you’ll find dozens of business-coaching columns.

Profits: How to Save on Sales Opportunity Costs

 

If your sales efforts aren’t leading to your desired results, here are a couple of questions: How many times have you been burdened by so-called prospective customers who waste your time without buying? How many times has a business or government agency asked for information on projects but used your ideas without paying you?

Ouch. That’s a waste of time and other resources.

Candidly, there are four plausible reasons why people don’t buy from you:

• You haven’t done a good enough job selling your company.
• You’re dealing with habitual tire-kickers.
• You’re trying to sell to customers who are too price-conscious and are not value-minded.
• Not to be gauche, but you’re dealing with parasites or thieves who will try to replicate your ideas without paying you.

Regarding the latter, remember these two adages: 1. “What goes around comes around.” 2. Sooner or later, they’ll get theirs.”

Don’t get mad. Get even. Getting angry only hurts you. It’s usually a waste of time and energy, and often creates negative PR images.

When you point your finger at someone, there are usually reasons why you have three fingers pointed back at yourself. So before you start pointing fingers, remember to assess your role and processes, and make the necessary improvements.

There are five basic dos and don’ts for productive selling:

1. Review your branding and marketing. Here are the 10 best marketing tips for growth even on a tight budget, and here’s how to get top results from your marketing plan A strong marketing program will prevent such problems by pre-selling your products and services, and will minimize the footwork required to close sales.
2. Distribute informative sales collateral and upgrade your Web site – pique the visitors’ interest — without divulging too much information.
3.  Improve your customer service and sales processes. Make sure that you and members of your team are using the techniques. Basically, this means remembering when and how to use the Golden Rule – empathy; incisively qualifying and researching your prospects; asking the right questions; listening; providing strong value propositions; showing an attitude of enthusiasm coupled with gratitude; preventing buyers’ remorse; and providing added value whenever possible. Always be prepared to engage customers with the top 11 tips for a great elevator pitch.
4.  Become a better student of human nature. Remember the basic law in economics 101 – know when to cut your losses. On the other hand, understand when it’s important to persevere and not give up prematurely. There are seven steps to higher sales.
5.  Maintain your mental acuity and balance when dealing with prospects. Don’t be desperate to make a sale to a prestigious-looking customer or company. Don’t allow them to use you or your intellectual property. Use the 22 do’s and don’ts for successful negotiations. As a prospect deliberates, keep moving and prospecting. Don’t spend your profits before the customer buys, and remember the adage: “A sale ain’t a sale until the money is in the cash register.”
6. Be loyal to customers who are good to you. This will make you feel better and you’ll enhance your odds for repeat business, which will also cut your sales opportunity costs.

Remember the essence of productive selling and you’ll save on sales opportunity costs. It’s all about wisdom in creating a happy buying environment and developing relationships.

From the Coach’s Corner, if you’re a small company, here are the 11 sales strategies to outsell your big competitors.

“When dealing with people, remember you are not dealing with creatures of logic, but creatures of emotion.”

-Dale Carnegie

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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?

 

Strategies for Maximum Customer Loyalty, Profits

 

If you’re finding it a challenge to create profits, you might appreciate knowing that you’re not alone. Profits in this Great Recession are elusive  for other businesspeople, too.

A case in point: 50 percent of the members in a Seattle-area business-networking group admit to selling products at below cost to remain in float. That’s according to a survey by Washington State University and the Seattle Executives Association (Feb., 2010).

The leads group, with about 100 member businesses, is comprised of one business per category throughout the greater Seattle area.

They described their employment, financing, inventory and sales situations as “stagnant to declining.” However, they were optimistic about their prospects.

Obviously, it’s important to do a profit analysis to determine your strengths, weaknesses, opportunities and threats. Then develop a strategic action plan and implement it.

Another factor affecting profits is customer retention. American businesspeople and consumers have become cost-conscious and look for opportunities to save money.

Many companies are slashing prices and making the mistake of focusing on price in their sales messages. That means your customers are constantly hit with discount offers. And they are tempted to change to your competitors because of price, quality and service.

But it isn’t a permanent switch. Such customers will gravitate to the next low-ball offer. So advertising to attract such customers is simply not cost-effective.

It’s true that many customers base their decisions on price, only. That’s 18 percent of buyers. So, it’s key to target the other 82 percent who can be persuaded to buy based on their five perceptions about value.

My research also shows that you have to reach a prospect with five positive messages before the decision is made to buy your product or service.

Why companies lose customers

When devoutly loyal customers shop elsewhere, 70 percent of the time they feel taken for granted.

Customers will leave you for a myriad of reasons, including failure to properly answer questions, treating them abruptly, making the buying process inconvenient, failure to solve problems quickly and subsequently failing to provide added value to assuage an unhappy customer.

Losing customers also means blown opportunities for word-of-mouth advertising and customer referrals. Plus, social networking and blogs – positive and negative – have changed the marketplace even more.

That’s why listening to customers is so vital – to gather information, to analyze it, and to develop answers.

In large cities, the advertising opportunity costs are high – usually $300 to $400 or more per customer.

If you lose a customer, it will cost you more to attract a replacement. Then, you have to factor in the sales curve – how long it takes for a new customer to become profitable.

So profits suffer in a down economy if you lose customers and can’t easily replace them. That means layoffs, which will hurt you even more.

Fifty-two percent of a customer’s value-perceptions motivating them to buy from you hinges directly on what they think about your people – spokespersons, sales reps and other personnel. (For more on value perceptions, see “The Seven Steps to Higher Sales.”)

So it helps to have ongoing discussions with your staff on these topics: Why customers buy from you, perceptions about poor customer service, and the factors about your service and products they like the best.

Meantime, be proactive in other ways.

Continually query your customers in formal surveys and in casual conversations using open-ended questions to get solid answers, not “yes” or “no” answers.

Take action steps and make improvements when feasible.

After you get great feedback and measure the results of improvements, tell your customers and express your appreciation.

When customers make purchases, don’t forget to thank them and prevent buyer’s remorse by tactfully reminding them of the value of their purchases.

And explain to your employees why it’s important to stop using the most-trite phrase on the planet: “Have a nice day.” Instead, your employees need to focus on providing an attitude of service and gratitude.

You’ll be creating a happy buying environment for repeat business and customer loyalty.

From the Coach’s Corner, here’s more on how to profit from word-of-mouth advertising and customer service.

“Well done is better than well said.”

-Benjamin Franklin 

 

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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?

 

How to Create Luck and Fly High with Profits

 

Despite higher costs and a weak economy, some businesses are lucky in increasing profits. Often, it’s a result of success from competing in a zero sum marketplace. Companies survive and gain market share when their competitors fail. But that’s often because successful firms know how to create luck.

Fear is a factor when companies underperform.

But fear is also an acronym: FEAR, frantic effort to avoid responsibility. Fear is often the reason why people fail to perform.

Consider these typical situations:

• Do you let fear lead to paralysis from too much analysis?
• Do you give away your power when you encounter rude customers?
• Do you allow rejection in sales presentations to get you down?
• Do you idly sit as public officials create policies that harm your economic and political freedoms?

To create profits with strategic planning in a competitive marketplace and business adversity, here’s how to eliminate fear and create luck:

Create balance with an analysis and strategic plan. Don’t go overboard in planning, but look at your role in capitalizing on your strengths and weaknesses and identify opportunities and threats. Your best plans can go awry but you can minimize any challenges with the right amount of reflection for the performance of both you and your business, and execute with courage.

So, my question is how’s your strategic planning for the next 12 months?

Invest in your education. Learn from others how they deal with uncertainty in business. I’ve had literally thousands of telephone conversations with great mentors. That’s right, just a few personal meetings and countless telephone calls.

I love the business philosophy of “Rich Dad, Poor Dad” author Robert Kiyosaki. Perhaps he’s been justly criticized for some of his investment approaches, but his anecdotal lessons are inspirational. For example, his ideas on networking are insightful and he’s got an unusual take on the Golden Rule: “He who has the gold makes the rules.”

Focus on marketing and sales simultaneously. Marketing is vital in creating a brand image. That might include public relations, a Web site, online prominence in social media and trade shows. Sales includes prospect and customer contact. Here are more tips to get strong results from your marketing plan.

If time and budget issues are taxing and you don’t have the right staff, consider alternatives:

To make a productive sales call, good marketing materials are an asset. And marketing results are stronger if your salespeople are effective. But sales and marketing usually requires two different skill sets. So consider a part-time independent contractor for marketing and commission pay for results-oriented salespeople.

Remember sales require an “inside job.” If you’re selling value, and speaking and acting with conviction, you’re destined to attract the right customers.

Create opportunities with partnerships and centers of influence. Develop relationships with influential people or groups and ask them for referrals. Look for ways to reciprocate. Rotary Clubs and chambers of commerce are good places to look for people who can be instrumental. They’ll help when you need it the most. I got my first two consulting gigs after being laid-off as a newscaster, and started meeting businesspeople over coffee. Using football as examples, here are nine steps for strategic alliance success.

Create great PR. My favorite PR example is my second client, the Utah State Fair, which was part of state government. After leaving the airwaves as a newscaster, I was hired in a 1988 Utah recession to get a $2 million state appropriation for repairing deteriorated historic buildings. At the time, asking for $2 million would be like asking for $65 million today adjusted for inflation. Legislators had been ignoring the fair and even rescinded funds they appropriated the prior year.

Effective marketing is both public and private. Following the lead of every dignitary who visits Salt Lake City, I advised my client to make a call on Mormon Church officials. Officially, the church didn’t influence public policy, but as a relative newcomer to Utah, I realized the head of the church was Ezra Taft Benson, who had been Secretary of Agriculture under President Eisenhower. Soon, a Mormon-owned newspaper published the headline: “Our Crumbling Fairgrounds.”

We scheduled events nearly every day, for example:

We took horse-drawn carriages to the state capitol “to take lawmakers for a ride.” Every newspaper published pictures with the caption, “Utah State Fair takes lawmakers for a ride.” (Actually, the veteran lawmakers ignored our invitations but the rookie lawmakers eagerly climbed into the carriages. But after the old-timers saw extensive pictures of the rookies, they eagerly cooperated on other PR efforts.) We hand-delivered bouquets of flowers donated by a grower to the morning DJs at the top 10 radio stations on Valentine’s Day to entice them to “Love a Fair.” During lunch that day, we delivered bouquets and messages to every state legislator and capitol employee.

The result: $2 million. (The following year lawmakers appropriated another $1 million without even being asked.)

We promptly issued a press release detailing how the appropriation was efficiently being invested so lawmakers wouldn’t change their minds again. If you need PR, but don’t have a budget? Here’s how to leverage the news media.

Cost-effective Internet options. Advantages in online marketing include: 1. Low overhead. 2. An opportunity to list a mega selection. 3. The Web is a great equalizer in competition. 4. International trade keeps getting bigger – remember you have the ability to sell outside the U.S.

A good barometer for advertising trends is national politics and how political candidates influence voters. Broadcast yourself. Check out YouTube. You’ll see an endless potpourri of video sales pitches.

Blog, publish or use online E-newsletters as options. Create effective press releases for your local media and don’t forget inserting them on the Internet.

There are numerous local e-marketing opportunities from Yahoo local listings to Craigslist. But if you want to reach prospects who are good citizens with positive cash flow, my preference is a good local media Web site. Here’s more on how small businesses can capitalize on cyber strategies for profit.

Face adversity with courage and detachment. Many great strategies will trigger vindictive opposition. The competition in Utah for legislative funding was intense. We were victims of dirty tricks by other special interest groups. But we had fun and ran the race without ever looking over our shoulders.

Stay focused like Ichiro. Practicing good habits makes for good performance. Respect your opponents. Be defensive — like Ichiro – with your prospects and customers – do not take them for granted. When businesses lose customers, my research shows 70 percent of the time it’s because their customers feel taken for granted.

Good luck with your strategies for creating luck to fly high with profits!

From the Coach’s Corner, don’t ignore your employees as opportunities for growth.

Pay your employees well. Be as generous as possible. Recognize them publicly. Employees are often more productive when they have a life – or job flexibility.

Treat your productive workers like you would a good customer, such as baseball or football tickets, nice dinners or their birthday off with pay.

Enhance organizational moral by making certain employees are best-suited for their responsibilities.

Look for opportunities to create a culture of personal growth. You’ll inspire loyalty and minimize turnover, which is a profit-destroyer.

So don’t forget your profit drivers – here’s how and why to partner with your employees.

Recruit employees on the four A’s of Hiring:

1. Attitude — look for positive attitude. Will they go the extra mile and create opportunities to blog about your company on the Internet?
2. Appearance — make certain they inspire confidence with a professional appearance.
3. Ability — make sure they have talent.
4. Angle — research their empathy skills – will they work well with peers and understand your customers’ angle or point-of-view? Do they know how to say thank you  – instead of the boring phrase, “have a nice day.” Do they how to prevent buyer’s remorse with customers?

“Luck is what happens when preparation meets opportunity.”

-Seneca

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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?

10 Scholarly Solutions for Selling More Products

 Part one of a three-part series: How to grow your small business

 

Small business owners face more predators than ever, which makes decision-making about growth seem very challenging.

If you’re trying to grow a small business, you’re very familiar with these challenges:

• Product returns
• Weak cash flow
• Ineffective or disloyal employees
• Rapidly changing consumer tastes
• Customers with insatiable appetites for instant products at deflated prices
• Increasingly astringent laws and regulations
• Local, state and federal tax burdens
• Marketplace competition
• Poor-performing vendors

In order to minimize the likelihood of entrepreneurial migraine headaches during bad-hair days, a business owner needs to perform like a masterful clairvoyant when decision-making about growth. Each financial decision seems like a life or death matter.

So, to help you match your assets and strengths with the right strategies, it seems fitting to turn to Neil Delisanti.

He retired as a professor of business at two colleges in Washington: University of Puget Sound and The Evergreen State College. He also counseled more than 2,000 small businesses while running Tacoma’s Small Business Development Center (SBDC). That’s the complimentary counseling service underwritten by the Small Business Administration and Washington State University.

He was hired to help small Northwest businesses, but financial institutions and economic development officials have also respected his forecasting acumen. He can be direct in his constructive criticism; the self-effacing analyst proved to be knowledgeable about countless.

In focusing with him on small business products, there is some overlap with marketplace and management issues, which we’ll primarily discuss in two future columns. To keep things simple, we’ll use the term product in referring to both product and service.

Two key questions

Mr. Delisanti says there are two salient questions a new business should be able to answer about its products: “Is the business making money off them? Where on the product life cycle is the product – the stages a product goes through from introduction until off the market?”

In other words, remember the plight of Pontiac’s Bonneville. It first hit the market in 1958. It was great car, but it has ended production because of declining sales for many years.

So, the question is: Did Pontiac wait too long before introducing its exciting new models – the G6, GTO, and Montana SV6?

Even though franchising is popular, Mr. Delisanti often recommends against buying a franchise. “Unless they are well established, the risk may be greater than starting your own business,” he said. They also go bust and often you really aren’t your own boss due to the restrictions by the franchisor.”

What does he feel are the key elements in the creativity of product?

“One has to think of the utility of the product and how some attributes enhance the product in the marketplace. Be cautious on getting too far out of the box. It may take customers awhile to get used to the product. Creativity is looking at how your product can better serve its purpose,” he believes.

He says every small business needs to focus on specific facets to develop a commercially viable product: “It needs to have a market – customers, clients, patients, etc., of sufficient numbers – to provide sufficient sales to cover costs and expenses and to produce a profit.”

Target niche

Small businesses should analyze their product differentiation. His recommendation: “Find out why customers buy the product, what they use it for and what they are looking for. Then provide it better than the competition. Remember people don’t buy flowers at a florist shop, they buy warm fuzzies.”

He, of course, is referring to every consumer purchase being based on emotion. As for determining the price of products, his principles are simple: “Anywhere between the market price, which is what the product is usually selling for, and the price that will cover costs, expenses including taxes and profit.”

In picking suppliers and vendors, when making a product-supplier assessment and evaluation, Mr. Delisanti advises caution: “Make sure that your alliances are based on good business practices. Make certain they can provide the increased products, in a timely manner and at an acceptable cost. Often, your old vendor, one that may have been based on a personal relationship, may have to be replaced by one that is better qualified for your new operation.”

He agrees diversity plays a role: “This is a key in expansion. There are two generic factors in increasing sales: sell what you have to new customers or sell something new to current customers. And selling complementary products helps, such as coffee with munchies.”

Mr. Delisanti says this also means product mix is important, too: “A product line is also important – having deluxe, very good and good – keeps a larger market served. That’s a safe way to expand.”

Often, the fastest way to grow is to acquire other companies. When does he suggest small business owners consider buying other companies to maintain product dominance? “They must look very carefully, using due diligence, at the company. If the pricing and terms are right, it can be a quick way to expand. A caution: the owner must be capable of running that size of business. One key is to be sure your current company is running well.”

His reminder about knowing when to apply for financing: “As soon as you’ve done your business plan to see if you are financeable.”

There are two other columns in this series, how to grow your small business:

Marketing Essentials on a Shoestring Budget

Management and HR for higher performance

From the Coach’s Corner, if you need free counseling for your entrepreneurial idea or small business, contact your nearest SBDC. You won’t find Neil Delisanti, but you’ll get some great help and the price is right.

P.S. Mr. Delisanti provides an analysis why women receive less angel funding than men.

“The greatest good you can do for another is not just to share your richesbut to reveal to him his own.”
 

-Benjamin Disraeli

 

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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?

Need Sales? Use Old School/New School Marketing

 

A reader, who was a marcom professional, once asked me for help with her employer.

“I’m new to my company as a Marcom professional, but my boss already has high expectations and is pressuring me to generate revenue fast. That includes attacking our competitors. Help!”

It appeared to me her boss was desperate and expected miracles in marketing and communications. If you are in a similar situation, consider until you develop trust and respect from your new employer, you’ve got a tough job.

Otherwise, you’ve got two choices: Find another job or develop a successful strategy and market your ideas to your boss.

Also, the value of marketing is often underestimated and it’s the scapegoat when other factors should be blamed for poor sales. Marketing professionals often complain about a lack of senior management respect or lack of access to the CEO.

What’s more, marketing budgets are the first to be slashed during tough times. Ironically, that’s the time to increase marketing. A marcom professional needs to know how to sell ideas inside the office as well as outside. 

Accelerate sales by asking yourself these four questions:

1. What in my past has prepared me to deal with this challenging situation?
2. What is needed short-term and long-term?
3. How can I maximize customer loyalty?
4. What new initiatives are needed?

In other words, use old school/new school thinking.

Del Sharbutt, the legendary broadcaster with a cavernous voice, was one of my radio mentors in the mid-1970s. (Del Sharbutt, 90, a Broadcast Announcer – The New York Times; Del Sharbutt – Entertainment News, Obituary, Media – Variety.)

He was retired when I met him. I was news director at an all-news radio station.

Del’s career included being a news anchor for the Mutual Broadcasting System, which had been the world’s largest radio network. He was an emcee for Frank Sinatra’s big band concerts, and was the creator of two hugely successful advertising slogans: “LSMFT, Lucky Strike Means Fine Tobacco” and Campbell Soups’ “M’m! M’m! Good.”

When he spoke I listened. Even though my radio station had jumped from last in the ratings race to second place in just one year, it had challenges attracting young women in a competitive California market. Del suggested I interview elementary school kids about what they wanted for Christmas. It was an old idea but the results were astounding.

One of his responses still pays me dividends: “Kid, every experience is a learning experience.”

Hence, the question: What in my past has prepared me to deal with this challenging situation?

For challenges in customer loyalty, I turned to my interest in sports. Defense in sports is a good metaphor for effective customer loyalty programs. Baseball teams win the World Series essentially because of great pitching and error-free play in the field. So protect your turf with a strong customer loyalty program while you also strategize for new opportunities.

A case study of a high-tech company

One of my firm’s clients, a life sciences imaging company, contracted me to analyze why its sales were flat. The marketing manager was frustrated so I suggested that I interview a cross section of their customers. One of the keys was to ask open-ended questions to get comprehensive answers instead of  yes or no answers.

The marketing manager liked my research approach, but he only wanted me to talk with the disloyal customers. My goal was to get a snapshot of the big picture – an overview of what all the client’s customers liked and disliked. I persuaded the client to allow me to interview high-volume satisfied customers; second-tier customers; and customers who stopped buying altogether.

The client sent letters to 25 of its worldwide customers to expect a telephone call from me. The most helpful solutions evolved from an interview with one of my client’s biggest customers, who told me: “We like them a lot.” When I asked the customer what he liked the least, he said: “They’re great people and we like everything about them.”

But in a follow-up question, I asked: “If you had a magic wand, what would you change about the relationship?”

The customer answered: “When we have a problem, their customer service is a nightmare.”

Also, my recollection is that the client’s technicians and customer service reps rarely – if ever – said thank you to their customers.

The nightmarish quote was a shock to the marketing manager. He asked me to present my findings to the company’s board of directors. The board was astounded.

For a solid foundation, these areas need to be addressed for an effective customer loyalty program:

1. Make certain that everyone in your company has an attitude of gratitude and says thank you to customers either for their purchases or for even just considering your company’s products.
2. Enhance trust by soliciting feedback from your customers. Act on their comments quickly.
3. Make certain customers are fully aware of your full line of products.
4. Develop a customer rewards program and value-added programs to multiply sales.
5. Develop a customer-privacy policy. Communicate it with customers.

Avoid Comparison Ads

Regarding your boss wanting to attack competitors, you never want to be known for such tactics. Always take the high road. When the media or customers ask you for a comment on your competitors, immediately respond with a compliment. Then, toot your company’s horn. Otherwise, you will turn off customers and you’ll find yourself in the unfortunate position of having to cut prices.

So when I was a young dedicated journalist, Mr. Sharbutt also stunned me with another tip: “Radio is not a music medium or a news medium. It is an advertising medium.”

That was also true for TV and newspapers. The same could be said today about the Internet – an estimated $22.8 billion sector in 2009.

Video ads are particularly effective in targeting young adults and teens. For a case study, here are campaign samples that were successful in synergizing TV with social networking:

• 15 Expo
• Sample of Social Networking Video

So, remember: If you use old school/new school thinking, good things will happen.

From the Coach’s Corner, here is a source for good tips on leveraging the Internet: Entrepreneur.com, visit Online Advertising Strategies for Small Businesses. 

 

Profits Down? 7 Quick Tips to Get a Competitive Edge

 

Are you an apprehensive business owner? The struggling economy is a sign of declining profits everywhere.

But in Google News, surf the key word “profits” and you’ll see there are many articles about companies making money. You, too, can get a competitive edge and overcome economic uncertainty by increasing sales and improving efficiencies.

Here are seven quick tips to get a competitive edge:

Retain your best employees. Employees with the best potential quit when they don’t feel valued foseveral possible reasons: Lack of career opportunities, chilled relationships with their bosses unhappiness over wages, health care benefits, and flexibility in work schedules. So, money is not always the main issue. Workers feel more appreciated when they are engaged with periodic positive communication. This includes giving workers a sense of control over their careers and explaining possible options for professional growth.

You want employees who will push you up the ladder.

Planning. The biggest misstep for small business owners is failing to plan for the big picture. They’re so busy with daily emergencies that they don’t believe they have time for planning. They see such time as a luxury. The solution is simply to budget the time in order to strategize specific actions and timelines. An old-fashioned SWOT analysis – evaluating your strengths, weaknesses, opportunities and threats – will help you create a strategic plan. Also consider 10 basic tips — leadership for business profit.

Entrepreneurs can’t afford not to take the time to plan. And remember backup options and equipment are needed for contingencies.

Pricing. The tendency now is to slash prices. However, small business owners needn’t give away their power to the big chains by price-cutting. People appreciate outstanding customer service. For most products and services, price isn’t the most important concern for about 80 percent of all consumers.

Customers are like employees – they want to feel special.

Daily prospecting and marketing. Solicit “centers of influence” or strategic partners to attract customers. Look for opportunities to obtain publicity. Advertise to remain in contact with customers and prospects. Sales follow-up, with phone calls, personal visits and note cards will pay dividends. Don’t forget to ask for at least two referrals from each satisfied customer.

For most small businesses, job one for the boss is contacting customers and prospects. If you’re fortunate to have sales reps, each should contact 15 prospects per day— in-person, as much as possible.

Delegating. Most struggling entrepreneurs usually fail to delegate. You’ll grow by learning to delegate. Good employees appreciate opportunities for teamwork and to make contributions to the business.

A smart boss knows how expensive it is not to delegate.

Operations and procedures. Develop formal procedures along with checks and balances. To ensure standards of excellence, make certain that you and employees adhere to policies from bookkeeping to operations. This way, there will be no glitches in your receivables.

Like you, your customers don’t like surprises either.

Other professional relationships. When you’re able, get proper financing and make sure you have a plan to repay funds. Additionally, develop a rapport with a bank manager, good accountant, lawyer and insurance agent. And don’t forget there are affordable group health plans for small businesses. The secrets to getting a competitive edge in small business are planning and execution. As a result, a third dynamic, also known as luck, will mysteriously appear from seemingly nowhere to benefit your company.

I love this quote by chemist Louis Pasteur: “Chance favors the prepared mind.”

From the Coach’s Corner, like great football teams at halftime, good entrepreneurs adjust quickly to fast-changing conditions.

At the end of every day, do a report card. Review the events affecting your business as well as your response to each situation. Evaluate how you performed and how to move your business forward. Then, take the night off, especially after your daily assessment on a bad-hair day.

And tomorrow – keep on trying. Don’t give up.

“A business absolutely devoted to service will have only one worry about profits. They will be embarrassingly large.” 

-Henry Ford 

 

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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?

 

 

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