What to Do About Drift, Scope Creep, Unfinished Projects & Ineffective Messaging

Don’t feel bad if your company has drifted away from its strategic plan. Tough economic times can do that. Recessions invite worried sales people to agree to whatever price they can get any prospect to accept. Uncertainty can lead product development initiatives down several paths only to end up with unfinished projects. Insecurity cues marketing messages to become broad based, safe, generalized and ineffective. Service minded employees trying to accommodate today’s demanding customers quickly leads to scope creep on contracts and reduced profitability.

The operative words are worry, uncertainty, insecurity, and accommodate. That mindset leads to drift, reduced effectiveness, scope creep, and lowered profitability. If you are experiencing this phenomenon, you are normal…and the good news is that it’s curable.

Convene your management team to review updated data about the various subgroups within your customer base. Your company’s “sweet spot” may have inadvertently shifted.  Maybe in the past, your company was most effective and generated the best profit from small business accounts. Perhaps now, you should focus on medium sized businesses.  Maybe in the past, you could handle five distinct industries; and realistically, you now need to drop one and focus on four. Maybe the range of products/services just needs to be brought back into a smaller range so you can be more efficient, handle the risk, and feel a sense of accomplishment.

These “Let’s Get Re-Centered” sessions need to happen more frequently during tough economic times. What’s going on in the European economy does impact customers in North America. The politics of the Middle East influences decisions in South America and Asia. Technology in Australia matters to companies in Africa.

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her current service businesses (strategic planning, executive advisory, growth financing, talk show, speaking, search) help privately held midsized companies achieve accelerated growth with sustained profitability™.  Ambler is wrapping up her 7^th year hosting a weekly peer-to-peer-to-peer on line talk show at www.Business.VoiceAmerica.com and www.growthstrategistshow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses are being emphasized in 2011. Ambler is in the process of launching her 8^th enterprise. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com. 

 

Should You Assume That ALL of Your Customers are Uneasy?

A pattern has been surfacing recently from the interviews we conduct prior to on-site strategic working sessions for/with the clients of my growth planning/strategic advisory firm. We are hearing from our clients’ customers that they:

• want to be contacted BEFORE a question would even come up
• don’t like the expectation that they will do the traveling for appointments
• don’t want vendors to get defensive or take their questions too personally
• want more one-on-one interaction and more individualized services/products
• expect more understanding, compassion and empathy
• are not very interested in the vendor’s feelings, needs, personal life or goals
• need bright vendors but won’t tolerate arrogance

It’s no longer enough to say that your firm is responsive and brag that you return customer calls quickly. They don’t want to have to call you. They want and expect you (and me) to PREVENT their ignorance, concerns, and uneasy feelings.

This extended period of uncertainty following the recent recession has had an adverse impact on just about every market.  The obvious sectors include construction, real estate, banking, and wealth management firms.  But uncertainty has been unsettling to customers in other industries.  We feel it. Even our most ambitious clients now want to review the details of our research findings, request multiple presentations of our recommendations, and need repeated fact based reassurance.  Some would like to demand guaranteed revenue growth and net profit levels.

If your business is related in ANY manner to the shifts in the economy, stock market, political winds, etc…take a fresh look at the tone and frequency of your communication with clients/customers.    

 

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her current service businesses (strategic planning, executive advisory, growth financing, talk show, speaking, search) help privately held midsized companies achieve accelerated growth with sustained profitability™. Ambler is wrapping up her 7^th year hosting a weekly peer-to-peer-to-peer on line talk show at www.Business. VoiceAmerica.com and www.growthstrategistshow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses are being emphasized in 2011. Ambler is in the process of launching her 8^th enterprise. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com

 

How to Move Your Market from Complaining to Placing Orders for Your New Product

Companies like APPLE® haven’t waited for customers to specifically ask them for completely different telephones or even faster, thinner, and lighter products.  Folks from that corporation observe how people work and communicate and then create products to address the problems and wishes before the customers even have a chance to complain about it.  APPLE® has been so good at innovation that their products haven’t just responded to a recognized need the products create a need.

But the reality is…most of us are not APPLE®.

We can’t all create a need, but if we wait until customers actually ask us to provide a new service or product, those customers have been frustrated for a long time.  We run the risk of competitors figuring out how to address the problem before we start to develop a product/service. The company that only provides a new product when it’s been directly requested is playing it safe, ends up with a smaller portion of the available business, and is viewed as conservative and reactive.

When it comes to product/service innovation, there is an important zone between “bleeding edge – create a need” and “reactive – wait to be asked.”                

If your company interacts with its customers, conducts focus groups, asks about where the clients are headed, listens to customer complaints and frustrations that are unrelated to your company’s existing products/services, you will have a sense of the “felt pain.”

The best products/services of tomorrow address today’s’ felt pain.

In addition to developing a product/service that fixes a problem, it’s important to invest in marketing.  During the complaining phase, customers aren’t asking you to provide a product/service….in part because they don’t believe anyone will address their problem. They don’t know you have the capacity to do anything. They have no idea that the new product/service exists. How can they request it from you?

I am now in the process of launching my 8^th enterprise. This one involves collaboration among several competitors who are industry leaders.  Why would customers believe that is even possible or know to request it?  The new business concept lowers the price of a mission-critical service so midsized companies can actually afford to have the excellent product/service that only major corporations have been able to afford.  Why would the customer ask for that when it doesn’t seem possible to them?

The strongest businesses introduce new products and services that truly address felt pain…and they do so boldly to move the market place from complaining to placing an order.           

 

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her own service businesses (strategic planning, executive advisory, growth financing, talk show, speaking, search) help privately held midsized companies achieve accelerated growth with sustained profitability™. Ambler is in her 7^th year hosting a weekly peer-to-peer-to-peer on line talk show at www.Business. VoiceAmerica.com and www.growthstrategistshow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses are being emphasized in 2011. Ambler is in the process of launching her 8^th enterprise. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.

 

When the “Internal Sale” is a Bigger Challenge than Winning Over Customers

The business development director speaks with prospects and customers and feels that folks have been candid with him. He is convinced he has heard a pattern of need.  He wants the company to provide a new product/service for the customers. And he is excited!

He comes to an executive team meeting enthusiastic about the new idea. But then he feels punched in the gut by the negative response.

How can we afford to do THAT?

I sure hope you didn’t promise anyone that we can do THAT right away!

How many people said they wanted it anyway?

Oh, THEM…they always want more and more.  And then they don’t want to pay more.

It can be more difficult to sell a new product/service idea within your own company than to convince customers to buy it. This problem exists in lots of midsized privately held companies, but is even more prevalent in family owned businesses.  Like most problems, the solution depends on the source of the problem.

If the negative reaction reflects a fear of failure, it pays for the business development director to take the new idea to each executive one at a time.  That way, each person can think through and discuss concerns and not feel put on the spot.  Plus the business development director can convey that his confidence in each person is one reason he is excited that customers have expressed an interest in something new.

If the negative reaction flows from concerns about money, discussing costs and ROI with the CFO before bringing a proposal to the executive team could diffuse worries.

Sometimes the negativity stems from long term memory about previous times when the business development director was excited…only to find out that customers didn’t really want what he was proposing.  Some executive teams hold grudges or never forgive past mistakes. If that’s true in your company, the business development director probably must directly and calmly convey how the current proposal is different (without being defensive).

Remember, negativity is often fueled by group dynamics.  No good idea is worth making your business colleagues look bad, feel incompetent, or become embarrassed. If you have an exciting idea for which you are invested in an affirmative response, take the time to do individual discussions, anticipate/ address objections, ask for assistance…and resist the temptation to become strident, adversarial or defensive.

 

Aldonna R. Ambler, CMC, CSP has earned the right to be called The Growth Strategist™. She has won over two dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across four recessions.  Her midsized B-to-B service, technology and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her own service businesses (strategic planning, executive advisory, growth financing, radio show, speaking, search, etc.) help midsized companies in Achieving Accelerated Growth With Sustained Profitability®. Ambler is in her 7^th year hosting a weekly peer-to-peer-to-peer online radio program Growth Strategist Radio Show, at www.GrowthStrategistRadioShow.com, that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy of the week. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.

 

 

 

When You Can’t Seem to Move Beyond “Business as Usual”

It has become apparent to just about everyone in your midsized family business that your customers want/need/expect you to utilize faster more customer-centered technology.  You may even know what hardware, software, and training will be needed.  But, where will you ever come up with all of the money that would be needed?  It’s difficult enough to handle what you are already doing, so the technology upgrade project gets put on the back burner and things keeps going …business as usual.

Sound familiar?

Chances are very good that technology isn’t your causal problem.

An inability to face the need to dramatically upgrade technology (or take on other similar strategic initiatives) is a symptom of poor communication, lack of accountability, and/or incomplete leadership development.

Think back about the last time your family business tried to do real strategic growth planning.  If your team couldn’t remain optimistic, constructive, and future-oriented, you might want to first bring in outside assistance to strengthen your executive communication, accountability, and leadership development.

 

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her own service businesses (strategic planning, executive advisory, growth financing, global radio show, speaking, and executive search) help midsized privately held midsized companies achieve accelerated growth with sustained profitability™. Ambler is in her 7^th year hosting a weekly peer-to-peer-to-peer on line radio program at www.WorldTalkRadio.com and www.growthstrategistradioshow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses are being  emphasized in 2011. Ambler can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com

 

 

 

Is the “Family Owned” Sign in Front of Your Business Actually a WARNING?

My sister likes jewelry, so I went shopping at a gemstone store recently.  Trust me on this.  The fact that this business is family owned was NOT a benefit to me as a customer.  The jewelry designer’s mother is clearly tired of catering to his demands.  But she is his mother and apparently feels STUCK there. His wife was equally miserable!  Apparently the purpose of this family owned business isn’t about gemstones, customers, money, or family.  It was all about a prima donna jewelry designer who had enslaved his relatives.

I know another company President who insists on paying all 7 of his offspring the same salaries despite the fact that one son is the full time CFO and one daughter is a part time marketing clerk. Can you imagine how non family staff members feel and how they view their compensation?

I know a Mid-Atlantic based company that has a Colorado branch now. They were sending so much money to support his snowboarding, why not throw a bit more money at it?

Sometimes the real purpose of being “family owned” is to provide jobs for otherwise unemployable offspring.

As the New Year starts, pause for a second and reflect on the BIG decisions made by your family owned business in 2010. Which ones were made to compensate for non-performing relatives? Which decisions were an attempt to force accountability and fairness? 

If the purpose of your being “family owned” translates into honesty, excellent customer service, informed employees who truly understand products/services, a sustained commitment to quality and innovation, etc…then the public will care that you are “family owned.”

90% of privately held companies view themselves as “family” businesses. So this year, I’ll be emphasizing growth strategies for family owned businesses and sharing ways to make sure that “family owned” is an attribute…and not a warning.

 

Thrive During Periods of Uncertainty

This year I was fortunate enough to interview several bright, accomplished executive leaders of midsized companies who were also generous and candid during my weekly radio show, THE GROWTH STRATEGIST™. (Feel free to download your favorite shows from www.GrowthStrategistRadioShow.com.)  I recorded a solo year end show and pulled out some of the gems these wonderful guests shared that seemed relevant to dealing with uncertainty.  Here’s a few:

Peter Colella is the Managing Partner of M&A specialists, The Colmen Group.  They started out in M&A and expanded into operational and turnaround consulting. Their competitors may have been seeing the same underlying problems in the business proposals submitted to them, but it was The Colemen Group that stepped up to improve success rates.  Are there problems that seem to be taken for granted in your industry?

Julie Levi, the President of Progressive Promotions, reminds all of us about the importance of going deep into large accounts.  They let “one offs” go about 10 years ago.  Progressive Promotions is also a good example of a commitment to complete change.  They hired. They changed the brand image. They invested in technology.  If you are too tired to even imagine dealing with rebranding, remember that a key team member may need the opportunity to lead that process, get it done while taking it off your plate!

Barbara Hemphill is the well known author of THE PAPER TIGER, and the leader of the ALMOST PAPERFREE movement.  Her interview reminded all of us that maintaining “a culture of innovation” can dramatically reduce the risks associated with uncertain economies. How much would it really cost you to build in time to turn customer complaints into new product ideas?

I enjoyed interviewing David Friedfeld, the CEO of ClearVision Optical.  He reminds all of us that there are good ways to stake a stand. During periods of challenge, it can feel like you are being held hostage by another. Taking a stand requires preparation, but it is important not to ever let a major vendor, customer, your employees, or your family OWN you.  Does it feel like anyone OWNS you and never paid to acquire?

Smith Yewell, the CEO of WELOCALIZE, Inc, exudes the commitment to running faster than your customers.  Think of what they need to do to provide instant wonderful translation of multiple languages for companies on their client list, like Google.  How fast are your customers moving?

 

The Journey from “Trying Not to Screw Things Up” to “Creating a Better Future”

It’s great to watch old black and white movies featuring Lionel Barrymore, and then look at the little girl in E.T.™ or the talented leading lady in movies like The Wedding Singer™ and Never Been Kissed™ or spot the lovely blonde spokesmodel in television advertisements for Cover Girl™ make up. Just imagine the pressure felt by Drew Barrymore when she was growing up. She comes from a long line of very talented famous actors. Or how about Michael, the son of Kirk Douglas? Or what about Nat King Cole’s daughter, Natalie?  The pressure of expectation, obligation, and legacy can be daunting.

This pressure isn’t just the purview of actors or singers. It happens in business as well. Imagine the pressure felt by Ivanka, Donald Trump’s daughter. She seems to be handling it fairly well, but “The Donald” casts a fairly large shadow. Actually that same pressure is felt by most second and third generation leaders in family businesses.  And it’s also felt by promoted-from-within Presidents/CEOs who aren’t blood relatives of the owners, but were long term loyal employees.

One might think that a newly promoted CEO will have a long list of pent up ideas he/she wants to implement right away.  Often, the first thing they do is implement cost savings measures.  That’s good, of course, but he/she probably could have done that as a Plant Manager or COO.

The newly promoted CEO sometimes knows a bit too much about the day to day operation. He/she will know the stories behind the last computer system upgrade. Memories about mistakes made during the last new product launch can be too fresh. The newly promoted CEO may like, trust, and value his/her co- workers/colleagues but often have difficulty envisioning greatness in these same people.

It takes concerted effort on the part of most promoted-from-within CEOs to look outside their companies for guidance about what is possible, how fast change should be paced, where the market is headed, and which products and innovations will be important.  The role of the CEO is not to maintain status quo.  The role is one of vision, discovery, and leading the way in the process of creating a better future.

 

You Could Be Inadvertently Losing Your Position as a Strategic Partner for Your Customers

Do you believe the premise that customers don’t want to be asked a bunch of questions these days? If you believe that assumption, when a customer places an order for twice as much product as they usually do, your salesman should just process the order, enjoy the little bump in the commission on the order and say nothing.

What if the customer was preoccupied, distracted, or in a hurry and simply made an error when s/he placed the order? Your company will be delivering too much, which ties up inventory and wastes money and time. The customer may become annoyed or may even jump to the conclusion that your salesman was trying to get more money from them (“pull a fast one”).

What if the customer recently landed a big new account? When your salesman doesn’t observe a change or congratulate the customer, your company seems less informed about its customer accounts or disinterested in their businesses. AND if your salesman doesn’t inquire about the customer’s business, your company misses an opportunity to learn what other products that customer may soon need.

Believing this assumption also leads some companies to not even offer to provide the needs assessment step of their normal process.  The customer must know what he/she wants, right? They called to buy a specific product.  Let’s not waste their time or seem like we just want more of their money.  Let’s just provide what they ask for, right?  WRONG!

You could be underestimating your value to your customers.  Skipping the needs assessment step is often a disservice to your customer and your company.  Many customers need more help thinking through important decisions during slowed economies…not less. Your customer could just buy a product online if s/he didn’t value interaction with you.

It’s easy to say you are your customers’ “partner” during good times.  If your working relationship is so weak that a slowed economy means you would be reluctant to ask questions, share stories, solve problems together, and find ways to attract business for one another… are you really your customers’ partner?

 

Collect and Address the List of Worries and Concerns

What would you do if you had recently invested time and money on

• obtaining absolutely current market research that revealed exciting opportunities despite and because of the economy
• recruiting, selecting, hiring, orientating and training two new executive positions
• upgrading management positions, including replacement, training, increased compensation and incentives
• participative strategic planning
• upgrading the physical plant for a few key locations
• updating your operating systems
• organization-wide training in marketing, sales, and customer service

Follow through!!! Right???

Yes, but what if you have recently seen doomsday reports in the newspapers and on television? And what if you attend an industry conference and the speakers suggest that this is the time to play everything safe?  And what if one of your long time friends just got audited and the IRS is after him?  And what if your executives and managers are feeling a bit overwhelmed or scared?  And what if you’re in a regulated industry and the government doesn’t feel like your friend at the moment?

YES…still follow through!!!!

AND

Compile a list of everyone’s concerns and worries.

Why not?  If folks are too worried, they might not follow through when you need enthusiastic execution on the plan.  A great strategy weakly implemented is set up to fail!  There may be a legitimate question your strategic plan missed.  Why not address it now?

Include board members, investors, executives, managers, line employees…everyone! Then ask your executive team to make sure that the strategic plan appropriately addresses each concern.  Write up the answers.  Make sure everyone knows you are listening, care, and are being thoughtful.  There may be a few areas where you are taking a calculated risk.

Collect worries. Make sure the strategic plan addresses each one. Convey how the strategic plan answers each concern.  Get back to people in a timely way.  And move on to implementation.  This is not the time for analysis paralysis or timidity.