Success is a "Values" Thing

Success waits for no one. Moreover, everyone needs to value success for it to be attainable and sustainable.

Dispel immediately the myth that the Global Financial Crisis is behind us and that we will all profit from the evitable cyclical upturn which is bound to arrive shortly.

Nothing is inevitable! Just ask the players from the soccer (football) teams which were eliminated early from the World Cup series in South Africa. Similar lessons were had for the 127 losers in each of the respective men's and women's Wimbledon Tennis championships.

The best laid plans of men and mice, complemented by analysis of each competitor, account for little if one's strategies are too predictable, risk averse and mainstream. Some else was at play.

KEY ATTRIBUTES

The fundamental attributes of success in the contemporary, dynamic marketplace are flexibility, malleability, responsiveness, anticipation, assertiveness and above all else, spontaneity and a better understanding of the values of those with whom one wishes to deal.

In short, set game plans have limited application. Centralised decision making is slow, cumbersome and disadvantageous. Delegated authority is a virtue.

Deftness of foot and mind are to be valued, for it will be rewarded.... on the football ground, around the tennis court and in offices, shops and plants throughout the world.

STRONG FOCUS

The fluidity of current market forces has been instrumental in an orientation to the “Why” and “What”, rather than the “How” focus in business transactions.

Confidence in one's team members enables leaders to address the desired, optimal and minimal “bottom line” and outcomes. Look no further than the Italian and French football (soccer) teams for examples of the relevance and importance of the team cohesion and shared values.

How the goal is achieved is less important, subject to adherence of accepted and established corporate philosophies and principles, together with respect for the prevailing social mores.

An acid test in the measure and comprehension of both the “Why” and “What” and the “How” is the ability of all team members to honestly and accurately respond with, “I understand”.

Many instances of suboptimal performance or inappropriate behaviour arise because teams, groups and individuals “do not understand”.

FAMILY BUSINESS VALUES

The essence of the ongoing success of family based businesses is not ownership, nor appointments to senior positions of family members.

It is the underlying values and sense of family that most contribute to cohesion, stability among the employees, customer satisfaction and sustainable competitive advantage.

People, stakeholders if you will, value and respect a sense of belonging, regardless of the ownership and shareholding structure.

Therefore, more care, attention and effort are needed by business leaders to promote and inculcate family values throughout an entity. The emotional and emotive rewards and returns will be reflected in the attainment of key performance indicators.

Members of better “families” talk, share, support, contribute and exhibit pride in being part. Titles and positional power account for little. Everyone knows who is the boss.

What matters most is doing the right thing ......for everyone. In business parlance that is a “Win-Win” situation.

A POSITIVE PRECEDENT

Within one week of Julia Gillard being installed as Prime Minister of Australia, media reports appeared with the headlines:-

“PM TO CLEAR THE DECKS”

Very astute!

The new incumbent identified the need to finalise or remove from the political agenda the issue of financial stimuli, centring on home insulation, the Better Education Revolution building program and the Emissions Trading Scheme proposal. She also declared intent to negotiate a mutually acceptable resolution with the mining industry regarding the contentious Resource Super Profits Tax legislation. A deadline of 10 days was set for the finalisation of the negotiations.

The expressions and actions reflect the words of a nationalistic song:-

“We are one, we are Australians”

Those are great values.

It is typical for Australians and those of other nationalities to come together in support of their respective national Olympic Games competitors, football, basketball, netball, cricket and general sporting teams. Consequently, it seems little to ask for everyone to “do the right thing” and contribute to the sense of and enjoy the benefits and advantages, which are innate to a “family” sentiment in business.

STARTING POINT

Sustainable success in business often begins with effective recruitment processes.

In “tight” labour markets, where employment rates are at or near full, it can be difficult to attract appealing job applicants. A strong focus on the available position, its duties, responsibilities, salary and employment conditions can elicit an enormous response from a non selective audience of aspirants.

Astute companies and Human Resource managers are tending towards marketing the company brand and its innate characteristics as a means for people to “self- screen” their appropriateness for the entity and its values, rather than their aptitude and qualifications for the position.

The process continues with the induction of new recruits into the values of a business. Many mining companies have a strong emphasis on, and commitment to safety, better manufacturing entities promote the importance of occupational health and safety. Clearly, respect for and adherence to values ensures a “better fit” of people into a business.

A GLARING GAP

Internationally, marketers are conducting studies into the relative recent declines in the effectiveness of advertising, marketing, merchandising and promotional campaigns.

Research findings have isolated key casual and contributing factors, which of themselves have been the catalysts, for a new field of market research. “Sentiment Mining” involves the isolation and review of the use and application of key words.

Careful analysis of key and common words used on Facebook and YouTube has actually enabled marketers to develop new, unique and effective profiles of existing and prospective clients and customers.

Insights on word-usage, emotions and specific expressions has enabled improved effectiveness and response rates from advertising, marketing and broader communications.

A better understanding of the values which influence and determine interest in and demand for products and services reinforce and endorse the contention that success is a values thing.

Six Degrees Of Separation

It is a sobering realisation that we are each, potentially, just six contact points away from personal conversations or private audiences with the likes of Nelson Mandela, The Pope and President Barack Obama.

Australian Prime Minister Kevin Rudd may be another proposition, with questionable value for the effort expended!!!

The reason why most people and entities do not enjoy and achieve being in the presence of such luminaries is a lack of planning, sequencing, focus and intent. Most things are possible.

Success in marketing, particularly in the current volatile marketplace, requires similar discipline and the application of a like disciplined framework. The six degrees of separation, from ordinary to exceptional, in the current business arena are:

1 ST DEGREE - TARGET AUDIENCES

For sheer efficiency, effectiveness and economy, diligent and discrete targeting of primary, secondary and tertiary target audiences is imperative.

The term “mass media” is to a large extent now an oxymoron, a contradiction within itself. Media channels are fracturing. Broadcasting is to some considerable extent a thing of the past. Today, the reality is narrow-casting. Reliance on the use of a single medium is limiting.

Communicating to and interacting with those who are outside the profile of prospective, current and immediate past customers and consumers can, and typically does involve the expenditure and investment of considerable time, money, people and other resources, often for little return.

Particular care needs to be taken in the differentiation between customers (who buy) and consumers (who utilise). The needs, preferences, actions and roles in the buying process of both subsets differ appreciably.

Women remain the prime and key influential buying agents in up to 70% of instances for consumerable, durable and, to a lesser extent, capital goods and services.

There is a rich vein of gold to be mined among existing customers, who are largely unrecognised and not exploited. Develop and exploit the relationships.

The mantra, “share of wallet” in preference to pursuit of share of market has great potential for more immediate and significant returns.

Thus, seek out, communicate personally with, service and satisfy those whom you know best.

2 ND DEGREE - PRODUCT / SERVICE RANGE

Hundreds of millions, possibly billions of dollars of under-performing products and services reside within the inventories of retail, wholesale, and manufacturing entities, big and small.

There is little or no scope for sentiment, nostalgia and inertia in business decision making in the prevailing marketplace. Opportunity costs, an impost borne, are not entries on traditional asset and liability statements.

Obsolesce is a further burden which impinges on and limits performance.

Stockturn ratios, sales conversion rates, internal rates of return and stock ordering lead times are not of themselves guarantees for better business performance levels and success. However, they are benchmarks to enable effective monitoring and measurement of absolute, relative and comparative progress to ultimate goals.

Recognition of the need for specific action is the first step to an improvement and success.

Individually and collectively they provide meaningful insights and sound bases for responses to the ubiquitous question:

“How are things going?”

Without objective and accurate measures things may not be going at all. They may be “sticking”……. to the shop and warehouse floors.

An integral part of the success of the complex and diverse product range of the 3M Corporation, is that at all times a minimum of 60% of the product/range has been introduced into the marketplace within the past 5 years. That implies a strong dose of dynamism. In short, clean out, shape up and move forward.

3 RD DEGREE - SUPPLY CHAIN

The disturbing and disappointing attrition rate of the new and innovative products and services is a sad testament to poor and inadequate supply chains and distribution networks which operate globally and throughout Australia in particular.

Effective chains and networks deliver products, services and above all the key points of consumer appeal, convenience.

Inadequate distribution facilities are the primary source of failure in up to 70% of product launches.

Sophisticated, discerning and “now” oriented consumers and clients demand immediate access to those items they most need or want. There is a noticeable lack of tolerance in the marketplace. Offers of “rain checks” in which the products or services are guaranteed to be available at the same price at another nominated time are typically declined.

Short lead times, on-line real-time interface between the computer software of manufacturers, distributors and retailers, and paperless invoicing and ordering through automated imprest inventory systems are no longer ideals. They are increasing mandatory, for entities to minimise costs and to return to competitiveness.

It is noticeable that market leaders like Woolworths in Australia, Wal-Mart in the USA and Tesco in Britain have invested heavily in upgrading their supply chains over the past decade. Significantly, there is no slackening in the pace of such investments and innovations.

Which raises an interesting question. What industry are you in? Today, there is only one answer. Supply chain management, regardless of the related disciplines, products and services.

4 TH DEGREE - DIFFERENTIATION

The recent public announcement by the Australian Federal Government of the introduction of legislation to remove differential labelling and branding in the packaging of cigarettes is an important lesson for all.

Too little attention is given to the art of effective branding. It is not an overstatement to contend that over 80% of entities, products and services available in the marketplace throughout the world suffer from being labelled rather than branded.

Commodization reduces, if not eliminates, the inherent value and thus satisfaction which is and can be attributed the uniqueness to a recognised and preferred brand.

A perusal of the real estate section of a weekend newspaper confirms the expenditure of considerable monies in a cavalcade of colourful signage and graphics. Real estate advertisements broadcast on radio stations present a similar cacophony of sound, with little effective branding.

Health specialists forecast that as a consequence of the removal of branding on cigarette packages in Australia (and as a result of 25% increase in taxes on the product range) 100,000 Australians will cease smoking within 12 months. Significantly, it is projected that in the same period of time more than 70,000 adolescent Australians will not take up smoking. Brand switching among existing smokers will be reduced.

More than ever before the cigarette companies will need to develop strategies and tactics which differentiate their market offerings centred on actual product presentation and below-the-line (non mass media) communication.

Little wonder there has been renewed and increased interest in our exclusive customised keynote presentation,

“It Is Better to Be Different

Than It Is To Be Better”

5 TH DEGREE - PRESENTATION

For the past two years cash flows have been adversely affected, budgets have been reduced, financial institution lending policies have been tightened and outlays have been understandably constrained.

Business owners and managers have been confronted with the challenge to do more with less.

The scope of options which are viable, attractive and effective has narrowed.

Two lessons which recur across a broad spectrum of sectors and entities are:

•  PREMISES AND COMMUNICATION PRESENTATION UPGRADES WORK

No one aspect of the 20 elements of the marketing mix achieves greater traction than enhancing, remodelling and modernising one's presentation in the marketplace. That reality reflects the importance being assigned by many retailers, precincts and communities to establishing an appealing, safe ambience. Obsolescence, or a sense of such, impedes endeavours.

Subtleness can be a virtue. Relevance is the objective.

Having a “good” place to visit and to work in, inspires confidence, imagination and demand.

•  MULTIMEDIA MESSAGES ARE IMPERATIVE

It is one thing to upgrade premises. However, without informing, educating and encouraging prospective and past clients to visit, to enjoy and to become involved, the potential for increases in consumer/client traffic, revenue and profits remains latent.

6 TH DEGREE – SALES AND SERVICE

Sadly, too many business leaders and practitioners separate sales and service into two distinct practices and disciplines.

A preferred philosophy integrates the two into a compelling, unified presence of conspicuous benefits and advantages.

During the boom years prior to the Global Financial Crisis (whose impact was universally evident from August, 2008) considerable difficulty was encountered by businesses in the recruitment and retention of qualified, experienced and engaging staff-members. High employee mobility was a common and exasperating experience. Loyalty was isolated, stability a thing of dreams.

Management attitudes hardened. Investments in training were understandably considered to offer little and only short term benefits. Many training budgets were curtailed and in some instances eliminated.

As a consequence, customer satisfaction plunged. Significantly, the primary causes seldom related to the actual products or services, quality, availability and maintenance. Rather it was the poor attitudes, inadequate product knowledge and poor presentation of staff members.

Cuts in training and the lowering of standards in recruitment proved to be false economies.

Leaders in the broader retail sector have been quick to embrace the prioritising of a “positive ambience” and a “great shopping experience” as the imperatives necessary to optimise revenue potential and profits.

Enthusiasm, pride, urgency and a sense of theatre are contagious emotions. Moreover, individually and collectively they are effective counter weights to a prevailing feeling of dullness, indifference and apathy which impede the realisation of attractive sales potential. Let me be emphatic. Good and great customer service costs. Poor and awful service costs more.

Greater emphasis needs to be assigned to upgrade the service experience for a sales advantage to be achieved and sustained. Price sensitivity will then be rightly assigned its ranking of the fourth, fifth or sixth most important purchase criteria by customers and clients.

THE NEXT STEP

Progression through the six degrees of separation is simple, but not easy. Hard decisions cannot be made to be easy decisions. However, addressing progressively each of the six degrees detailed above does make it easier to make the hard decisions. There are not short cuts. In the current marketplace one wins and retains business by degrees…. six, in fact.

To Get Business.... Get Pumped

The thrill of the chase………

Emotions are highest and the adrenalin pumps fastest in the pursuit of striving to achieve a goal.   The uplifting sentiment is infectious .

Look no further than nature, with a sudden flight of birds or a flock of wildebeest in the savannahs of an African game park. It is a clear manifestation of the “fight or flight” phenomenon.

In business, marketing and sales the same principles apply and the lessons learnt are parallel.

It simply takes a leader and leadership for a sense of purpose, focus, excitement and urgency to be inculcated throughout the ranks of an entity and network of an integrated marketing, selling, franchising or buying group.

Too often, in the face of revenue downturn, increased competition or economic volatility, many notable business leaders look to externally oriented factors to stimulate interest, enquiries, demand and sales. Reviews are conducted and amendments are made to advertising, promotions, merchandising and pricing strategies and tactics. Each involves considerable investments of time, money, cerebral energy and resources. Sadly, often the returns are short term, marginal and spasmodic.

There is an alternative or, possibly, a pre-emptive, complementary set of high achieving actions.

REKINDLE THE FLAME

Entrepreneurs, innovators, creators and growth oriented business owners are typically characterised by reference to passion, enthusiasm, excitement and pride. All are commendable virtues   which inspire commitment, persistence, resilience and success itself.

The measure, worth and value of such are difficult to quantify. Indeed, the quantification of consumer   traffic flows, sales conversions, repeat and referral business is subjective. What exactly is the lifetime value of a long term, satisfied customer, over what time is the measurement taken and what is the best measurement methodology?

To revisit, refine and to recommit to the corporate culture is an uplifting experience for staff members and all of those in the supply chain. The exercise provides for an upgrading in self-worth, which is sustainable.

As an external change agent and interactive workshop facilitator, I welcome witnessing team members address, verbalise and extend aspects of the seven pillars of a corporate culture. A sense of pride blossoms, value is recognised in the total package which is offered to the marketplace and a positive spirit is experienced.

The temptation to price discounting   and other short term tactics quickly wanes, confidence is promoted and Key Performance Indicators are soon attained and exceeded.

SELL THE STORY

Conspicuous in the current marketplace is widespread evidence of inertia, mental tiredness, apprehension and exasperation. It is understandable, but not acceptable.

Processes are followed, but without conviction. No one is or gets excited, particularly customers. There is a   general sense of shallowness.

That is reflected in the bank balance. A quantum leap is needed from those who “tell the story” (in rote fashion) to those who “sell the story”.

Wait staff members at restaurants have the capacity, through their enthusiasm, to influence meal and refreshment selections and to substantially increase receipts. No one person or business sector is excluded from or immune to that reality.

The rewards and returns from the efforts extended are almost infinite.

Team members appreciate and typically respond positively to the attention being turned on them, in preference to or prior to the usual increased outlays on advertising, promotions,   merchandising and price discounting. There is certain consistency with and credibility to statements about “people are the most important asset to a company”.

Let me cut to the chase. For many business leaders who are seeking to address and redress market circumstances which are less than buoyant, the prospects for immediate and substantial upturns in sales, profits, customer satisfaction and repeat business lie within an organisation.

A rekindling of the fire, the passion and pride for and about a company, its product, services and people can be universally rewarding. Seemingly attendant   issues, like recruitment, retention and the development of people are quickly and favourably resolved.

For those who doubt the currency of the propositions and the underlying philosophy being espoused, I say “have faith”.

The direct tangible and conspicuous activities of advertising, promotions, merchandising and pricing reviews should not be ignored, simply be tempered and sequenced.

Barack Obama, the President of the United States of America inspired a nation and, to a lesser extent, the world with the statement “yes, we can”. He mobilised a sense of adventure and spirit of the possible. The emotions were highest and the adrenalin pumped fastest before election day in November, 2008.

The tasks confronting so many business leaders are not so gargantuan. The spirit is the same.

So go ahead. Take up the challenge. Enjoy the thrill of the chase.

Get Ship Shape

Clear the decks.

This naval, not novel, analogy is the call of many business leaders at present.

The current marketplace provides a timely and substantial opportunity to remove barriers and filters as the first steps to improving productivity, efficiency and effectiveness.

The analogy does not extend to a diving submarine or to businesses which are or are about to go underwater.

Structural, operational, personnel impediments are contributing to suboptimal performance levels.

REMOVE THE BARRIERS

Significantly, detailed reviews of and refinements to the internal aspects of businesses typically accord immediate and appreciable savings.   Competitiveness improves, profit margins increase and importantly, strategic flexibility broadens.

The marketing message is simple:

                            “It is one thing to know the competitor.

                              It is best to first know thy self.”

Far too many public and private sector entities, large and small, throughout the world and in Australia in particular, suffer the adverse consequences of territorialism and silos.

Prospects for leveraged increases in revenue, customer satisfaction, loyalty, repeat and referral business “fall” between the cracks or are repelled by imaginary, perceptual and internally self imposed walls.

A change of focus, attitude and underlying culture effects a change to prospects.   In the words of Alvin Toffler, the first international futurologist and author of generational

shifting book, “Future Shock “(1970):

                            “Old information looked at through

                              new perspectives creates new information”.

Greater and more collegiate internal endeavours, complemented by select and discrete external strategic alliances facilitate the establishment and maintenance of additional revenue and profit streams.

Delineations of clients and end users, or customers and consumers provide for a better understanding of the marketplace, of needs, wants and aspirations, as well as thebases for value and competitive advantage.

Ships, yachts and motor boats perform best when barnacles and flotsam are removed and hull lines are sleek.   A redesign of the physical and operational architecture of an entity offers the same outcomes. 

WHAT YOU CAN CONTROL

Among the consequences of creeping globalism are more complex commercial, industrial, financial and political infrastructures.   The scope and capacity to control and influence many marketplace variables are limited.

However, changes to the internal aspects of an entity are within the remit of owners, managers and teammembers.

Take for example the ongoing enhancements and refinements of the supply chains of supermarkets in particular and retailers in general.   Banks too have the essentials in hand for sustainable growth and increasing economic strength.

Conversely, many major mining exporters suffer the adverse economic competitive, relationship and operational consequences of obsolete and inadequate rail, freight and port facilities.

Therefore, emphasis should be given to refining and, in some instances, redefining operational philosophies and procedures.   The primary intent will be to improve efficiencies, lower costs and increase marketplace impact with existing or less resources.

HORIZONTAL ORGANISATION

A   “seamless” organisation structure is a virtue.   It provides advantages for external and internal customers.   In the latter instance team members develop a perspective and sensitivity to the contributions, needs, values and drives of those who contribute to a single, integrated set of endeavours.

Territorialism and self interest are redressed.   A whole new orientation is developed, which transcends operational parameters and limitations.   The underlying driving force which emerges is to satisfy client and customer needs and expectations.

The sense of team, crew if you will, and the value of others is promoted.

Anyone who has visited and inspected rural areas in which decaying silos, often with no ceilings or rooves, are located, will recall the limited vision possible as one's view turns to the sky.

Silos in organisations create similar scenarios.   Horizontal perspectives broaden one's mind, perspectives and scope.

The current marketplace rewards those business owners and managers who exhibit and maintain true leadership attributes of leading values rather than people.

An integral part of the implementation of the strategic initiatives detailed in this text is the respect leaders accord team members by detailed explanations of what is required and the probable consequences.

Great skippers of high performance yachts and boats respect and adhere to the need to inform, involve and recognise crewmembers.

So, go ahead.   Clear the decks.   God bless for clear sailing.

Open Minds, Open Markets

Beware the ideologues……for they will slow progress and impede innovation.   The fluidity and dynamics of the prevailing marketplace demands flexibility in thinking, strategies and tactics.

Sadly, one conspicuous consequence of the “boom” economy preceding the fallout from the Global Financial Crisis (GFC) is the presence of ideologically   driven business leaders, owners and managers.   Success does, understandably, promote self confidence and belief in one's self applied ideas.   Rigidity is a common by-product.

Incremental profits, market share and wealth are difficult argue against. Collectively, they promote “conviction” leaders.   There is often a noticeable desire to look for and contemplate alternatives.

Here is an antidote …….

                            IBM PHILOSOPHY:

                                                                      There is a better way.

                                                                      Find it.

No leader profile or management group is immune. Younger entrepreneurs, business owners, managers and executives are typically better educated and more articulate than those in the preceding generations.

Indeed, at the time the Gough Whitlam led federal Labor government was elected in 1972, just 3% of the workforce had a degree, diploma or similar higher education certificate.   Today, in Australia and New Zealand the figure exceeds 22%.   An incidental consequence of the Global Financial Crisis is the increase in registrations for university courses, particularly among mature, often part-time students.   Clearly, most have the capacity and willingness to learn.   However, business is a lifelong learning experience and an open mind is a supple mind, readily adapting to changing circumstances and responding to a fluid marketplace.   Strongly held ideologies often stifle minds.

VALUE EXPERIENCE

Effective formal education is founded on sound case studies, research and analyses.   Graduates in management enter the workforce not as managers, but as students of the management discipline.   The same principle applies to graduates of marketing, public relations, media studies, psychology, engineering, law, accountancy and finance.

The missing variable and attributes of many younger people is EXPERIENCE.

Experience broadens perspectives, introduces hindsight and provides the platform to ask the question WHY?

Sage advice from older, more experienced people should not be locked out by ideology.

NEW BLOOD

New blood should always be encouraged and welcomed by entities.

New perspectives can and do reveal opportunities and generate a refreshing sense of energy.   They are a great antidote for ideological inertia.   However, biologically and philosophically, new blood needs to be compatible, not necessarily the same, to be effective and compatible.

Therefore, appropriate disciplined recruitment procedures and staff retention initiatives will be imperative as business sectors and economies emerge from the depth of the fallout from the Global Financial Crisis.

                            Remember:-

                            “Recruit for attitude

                            train for aptitude.”

IDEOLOGICALLY DRIVEN

The recent track record for ideologically driven sectors, businesses and individual is hardly stellar.

Investment banks, commonly referred to in the past as “millionaire factories”, have found that their belief in and promotion of high debt gearing can and should be applied to and limited to certain short term marketplaces.   Their self belief remains, with the operation of   “Private Wealth” financial planning divisions, while their listed shares are less than 50% of   previous share   value.   Humility can be a virtue.

Many property developers didn't listen and forgot the lessons of the past.   High gearing and large debt is no friend in descending marketplaces and economies.

Reality can, does and should override some ideologies.

Listed property trusts confront a very subdued immediate future, providing time to reflect on, value to and learn from the lessons of the recent past.

Small Cap (capitalised) mining entities will be constrained for some time, as funding sources remain prudent and conservative.

The subcontractor sector in particular, including those servicing the needs and dictates of the mining industry, have the need to acquire, operate, service and maintain capital items.   They too will find the immediate future challenging, with the tight reigns being applied by financiers.

Each of the above sectors abound with case studies which underscore the importance of reviewing and refining long established ideologues.   It is good for staff morale, motivation and team cohesion.

STRATEGIC FUTURE

All participants to strategic planning workshops and creative development sessions bring to the table diverse ranges of skills, training, perspectives, disciplines and experience.

Perhaps the most important the most important thing that they should bring to the table are blank sheets of paper.

Very few things should be preordained or set in concrete.   Philosophies and core values should be recognised, respected, but not immune to review, refinement, extension and development.

INSATIABLE DEMAND

Demand persists for finance, housing, property, investment, subcontracting skills, technology, accounting skills and legal advice.

What has altered most is the manner in which such products and services need to be presented, paid for, maintained and valued.

The true nature and measure of demand is now determined and quantified by currency and relevance.   In short, creativity in isolation is not enough.   The support evidence for such is stark.   Creative securitisation, tax effective investments and dividends paid from projected (future) profits were the foundations of and reasons for the Financial Global Crisis.

Creativity was the catalyst and rationale for increased risk taking. However, currency and relevance are essential for customer satisfaction and value.

“I COULD HAVE TOLD YOU SO”

 Ideologues are seldom distracted by statements like:-

“ I told you so.”

It's usually a case of    ‘I'm not listening and will, not be influenced by contrary   thoughts.   Full steam ahead.'

No, ideologues suffer form the disadvantages inherent in the statement:-

              “ I could have told you so.”

Implicit in such utterances is the sentiment that contributions were not entered or offered because they would not have been listened to, respected, contemplated or acted upon.

Strict adherence to inflexible ideologues denies many, if not most or all, the advantages of differing experiences.   Business coaches and mentors are seldom all knowing.   Full use should be made of wide spectrum of credible spheres of influence and original thought.   Those driven by a common ideology tend to be selective in their points of reference and as a consequence narrow their perspectives.

DIVERSIFY

Astute investment and financial advisors consistently advocate diversity in investment portfolios.   It is sage advice that has application to business operations and development.

So, one should always seek out advice and input from a broad spectrum of sources.   Clients are generally a great starting point.   Some input will be invaluable.   Some may require refinement and some will need to be rejected.   That has the ring of a sound, exciting embryonic ideology which is open, flexible, current and relevant.

Ask.   You will receive.   Then it may be up to you to determine the optimal actions in pursuit for the preferred and appropriate outcomes, free from the shackles of a limiting, inappropriate ideology.

Profitable Relationships

 

Close relationships come at a cost.

Really knowing the perceptions, preferences, expectations and buying habits of existing and prospective customers accord businesses considerable benefits, advantages and rewards.   Business owners, managers and staff members expect increased revenue, repeat purchases and recommendations in return.

Investments in data base collection, retrieval, collation and analysis require appreciable investment in time, money and resources.  

The information trails being exploited include reward programs, company badged credit cards, priority/reward initiatives and personalised direct marketing communications.

Information is power, and to many, a bankable commodity.

HIGHER EXPECTATIONS

The latest consumer research into business practices reveals that clients and customers are aware of and sensitive to the “push” by companies to gain more information about themselves and their expenditure patterns.

Significant new, or perhaps previously unrecognised, findings reveal that as relationships are established with businesses, brands, services and service providers consumers develop higher expectations about customer service standards and product/service quality, they become less tolerant of suboptimal performance delivery, tend to be more expressive and, given the closer relationships, are more targeted (read: personal) in their expressions, be they positive or negative.

Thus, the widely held truism that customers are becoming more discerning and demanding is set on solid foundations.

It is a consequence of commonly applied business practices which are a conspicuous manifestation of the “relationship marketing” philosophy and era.

NO HALF MEASURES

Sadly, a significant percentage of small to medium sized businesses commit to embracing the concepts of relationship marketing, data base management, customer field farming and then decidedly compromise the principles and frustrate customers by providing insufficient funds, resources and times for the appropriate supportive infrastructure.

Large numbers of invaluable information banks on individual customers remain inert and rapidly aging to obsolescence because of under-resourcing .

Ideally, internal or possibly external people should be assigned to work and to capitalise on the potential business enhancements for specific time spans and on specific dates to undertake nominated activities.   There is no room for “loose” undocumented, subjective expectations.

Close relations enable businesses, and fosters expectations among clients and customers, to customised, personal communications which provide unique and, possibly, excusive offers.

An active, current and malleable database enables firms and departments to fulfil the base desired performance standards of not less than 6 communications within a 12 month period (preferably, employing a spectrum of media including emails, text messages, brochures, telephone calls and personal visits).

Moreover, the essence of an active data base is currency. That is, the information contained is relevant and pertinent.

Typically, some 1.2% to 5% of a database phase into obsolescence each calendar month.   This necessitates constant monitoring and effective management, with a total revision around every 9 months.

Clearly, such administrative details cannot be effectively undertaken by part time or casual employees or with a non-specific allocation of time and resources.

Customer relationship data bases dictate a disciplined approach. That is one of the reasons why so many are ineffective, contribute little to growth or enhance competitiveness and are perceived by some business owners, managers and staff members to be intolerable burdens.

MEETING EXPECTATIONS

One interesting aspect of good performing relationship marketing data bases is that staff members are recipients of all communications before such is received by existing, prospective and past clients.

Low tolerance customers and clients are incensed when responding to customised communications they are confronted with an uninformed, often detached staff member who exhibits the characteristics of a person lacking product knowledge. It is not a scenario on which positive, long term relationships are founded and sustained.

So, getting closer to customers does come with benefits and advantages with the countervailing force of costs and obligations.

RELATIONSHIP AUDITS

Important information can and should be elicited from all team members who directly interact with and service customers.

An audit of just how well they know their customers and their perceptions, preferences and buying habits can be enlightening, confronting and in some instances disappointing.

Often there is a considerable disconnect between the operation of customer data bases and an evident lack of knowledge about customers which permeates many entities.

The ideas and aspirations of relationship marketing data bases all to often falter because of the inadequate funding and resource allocation.   It is difficult to budget for the non delivery of potential and opportunities.

Like most things in life and business there is a need to recognise the inextricable association between rights and obligations, then to strike a balance between the two.

What's The Difference?

There is a difference!

For some time recruitment advertisements which invite applications from those who want to make a difference have unsettled me.   Something didn't fit well, particularly in placements for employment in the public service.

It is only in recent times that it has registered that just showing up for work can and does make a difference.   Appearance at the work place alone can be the difference between needing to, or not needing to, seek temporary or casual employees, the reassignment of tasks and the rescheduling of projects and time limits.

Sadly, too many people are in reality, paid appearance money to make a difference, albeit insignificantly small.

Daring to be different is an entirely different proposition.   Actual, perceived and imagined parameters, boundaries and barriers can be and often should be shattered, to make a real difference.

Compliance and conformity are phrases often uttered and are concepts that are repeatedly applied by accountants, lawyers and engineers.   Some aspects of life, business and society demand compliance and conformity for cohesion and unity.   However, progress, development and innovation dictate adherence to the underlying philosophy of “daring to be different”.

Optimal performance is the reality for those who transcend   from asking the questions “what?” to take the quantum leap to pose “why?” and, more importantly, “why not?”.

Since the onset of the global financial crisis during 2008 centralised decision making by Boards of Directors and senior management cabals has limited the scope and inclination for other line managers to make meaningful decisions.

Risk has been removed from most corporate lexicons.

ASK QUESTIONS

Top-down decision making is typically unidirectional.   It does not encourage participation or feedback.

Business owners and managers who tell subordinates what decisions have been made limit, if not deny, the advantages and benefits of the differing perceptions of staff and their invaluable insights on clients and customers needs, desires, aspirations and expressions.

Discussions in such instances tend to be an imparting of what must be done.   It can promote conformity, compliance and uniformity. Efficiency can improve.

There is a better way.

Creative and innovative leaders are utilising the current testing times to promote, encourage, endorse and support input for all team members.   The subtle art of asking questions provides the promise and reality of numerous rewards, not the least of which are commitments from and the motivations of staff members.   For example:-

“Why” do we do things this way?

“Why not” try something different?

The proposition may be simplistic or perhaps, naïve.

Consider this point.   Each year countless millions of dollars are spent by entities, under authority of senior management teams, to retain external market research practices to conduct research.   The skills set of these professionals does not extend to providing answers.   In reality, their expertise and experience is contained to being able to ask questions.

It is the respondents who provide the answers, and with them the insights, perceptions and intelligence for managers to make decisions.   Therefore, why is it not possible or desirable for managers to ask fundamental questions centred on “why?” and “why not?” to those team members who most interact with, service and satisfy existing, prospective, lost and past clients?

Indeed, it is possible to convert a questions into a challenge.   For example, “why?”
and “why not?” can be readily refined to “why can't we?”.   That will make a difference!

Be assured, the outcomes of facilitating interactive business development workshops with accountants, pharmacists, engineers, wholesalers, financial planners, bankers, radio station executives and manufacturers underscore the widespread presence of unrecognised, unrealised and unfulfilled creative thoughts of team members who could, would, will and have contributed, if only they were asked.

STARTING POINTS

Two great starting points to embrace and try out the “questioning” philosophy are:

•  Inventories

•  Customer/Client Bases

Both aspects of business can be and often are costly, non productive burdens on private and public sector entities.

Stock items and clients (suspects and objects!!!) which are unwanted, obsolete and irrelevant consume time, money and resources with little or no economic returns.

The proposition: “Why can't we” dispose of, sell or pass-on inventory and client listings can and often does re-energise staff members, processes and the buying patterns of clients and customers.

Any such assertive action requires objectivity and detachment.   There is little or no scope available for emotions, sentiment or nostalgia.   Each of those can be found in abundance in movie theatres and within faltering trading groups.

One final principle that should be recognised, respected and adhered to is:-

Don't Shoot Short

Be radical.   Current circumstances demand nothing less.  

Oh, and one final thing….

Dare to be different.

A Marketer's Dream - Pre Qualified Prospects

Pre-qualified prospects

A business ideal has arrived.

The new reality in marketing and business today is that when business owners, managers and sales people first talk to new and prospective clients, many are pre-qualified.   Indeed, self qualified.

These often first time prospective purchasers are well informed, confident, discerning, often articulate and assertive.   Moreover, they are ready to buy and have the capacity to conclude a deal, typically, now.

Significantly, in the current communications and relationship era the power base has shifted to consumers, clients and customers.   The key leverage is the readily inexpensive access to multiple channels and sources of information.

In many respects, business leaders, marketers, public relations consultants and advertising agents, in particular, have witnessed an ebbing of their previous seemingly impregnable power structures.

Images, status, market positions and bases for market competitiveness and appeal are now determined to some considerable degree by spheres of influence, over which businesses have little or no influence or control.

A weakening in market presence, market share and market positioning can be and often is a consequence of a lack of control over or consideration by many businesses of the media channels which are readily accessible to and by prospective clients.

Insufficient attention and resources are being allocated to the aspects of website profiles, interactivity, currency and relevance.   Similarly the customer, purchaser or client ordering experiences begin from the initial contact with an email address, website, telephone system and the ingress points of a parking area.

Unkempt and poorly maintained parking areas of premises are physically conspicuous to all. What is not truly appreciated by some is the poor house keeping which is evident on websites, message bank messages, on mobile and landline telephone systems and the remarkably unfriendly, obstructionist automated telephone systems.

Technophile consultants who strive to increase the efficiency of clients communication processes too often overlook the effectiveness of encouraging and facilitating easy and prompt access to individual branches, departments and people by prospective, existing and past clients.   Remedial action is often required to ensure the channels of communication are open and welcoming.

DAUNTIING REALISATION

It is a daunting realisation to some that prospective clients and customers have formed reasoned opinions, images and perceptions about an entity, it's products and services, long before actually speaking to a team member.

Beware the words, “I've heard about you, your business and the products.” That raises the question:-

                                          “Who said what about whom and when?”

In some instances, the entity and its people are on the back foot before the relationship is established, the negotiating begins and the sale approaches closing.  

There are five phases through which the consumers, customers and clients   progress towards the successful completion of a sale, being:-

•  Apathy and ignorance

•  Interest

•  Information

•  Sale

•  Service

Sales driven and oriented organisations typically skip or give tertiary consideration to the initial three phases.   That is one major contributing reason for wide fluctuations in demand, varying response rates to advertising initiatives and a decided lack of customer loyalty.

Contemporary and astute marketers now recognise that a passive approach to overcoming consumers apathy and ignorance, stimulating interest and providing current relevant and easily accessible information is dangerous and exposes the entity to heightened risk and possibly uncompetitive standings.

Total control over all channels of communications about aspects of the entity, its policies, people, products and services is not possible.   However, engagement is.

More than ever before in the annals of business and corporate history it is imperative that pre-emptive initiatives be taken to set the agenda and to formulate the purchase criteria which will or should be applied by prospective clients and customers to conclude a favourable, mutually rewarding decision.

Let me share with you a recent experience that is a very apt case study.

A legal practitioner, a partner of an aggressive second tier firm of solicitors and lawyers, expressed disappointment and, to some degree, bewilderment, that his group was not enjoying more briefs, revenue, profits, market share and dominance.

A strong schedule of television advertising had developed an acceptable, if not desirable, presence in the marketplace.

Unaided awareness, recognition and prompted recall are simply not enough.   This experienced and qualified lawyer did not appreciate that.

Many corporate and individual clients are sensitive to the professional fee charge rates of legal practitioners.   The typical 6 minute metre countdown is scorned at by many.

In this particular practice, the professional fee rate is charge at intervals of 100 units per hour.   That's right, the metre ticks over every 36 seconds.

Little wonder then, the pathway to the door of this practice is not well worn.

Upon receipt of information about the charge rating system, the interest   of prospective clients quickly wanes and regression towards a state of apparent apathy and indifference (if not ignorance) is achieved.

DIY HOME BUYERS

An increasing number of new home builders are now sensitive to and are capturing the imaginations and custom of a new evolving market segment, the Do-It-Yourself Home Designer.

These people enjoy the challenge and satisfaction of completing their own initial and rudimentary house designs.

To match that demand a select few new home builders have updated their interactive websites to enable people to modify online standard house designs or to develop their own plan from certain modules of a home layout.

It's creative, responsive and above all, it is providing a competitive advantage.

By the time the homebuilding company sales representative speaks to the prospective buyer for the first time, he, she or they are pre-qualified, have determined a cost estimate and a budget and, in many instances, have received approval for finance.   Welcome to Marketing 2009

ONLINE

Goodwill and good relations can and should be established with initial telephone contact made by a prospective client and customer.

Inefficient, outdated telephone systems are nominated by consumers to be the single most annoying, recurring and frustrating experience they encounter.

Obsolete messages and outdated tape and disk, on-hold telephone answering services reflect poorly on the relevance and imagination of the company.

International operator   Online Onhold is able to customise messages and change them daily, if required, to provide weather patterns, stock market reports, local news and industry specified briefings.   That alone can positively pre-qualify a prospective client   or customer.

So, get to it.   Start developing strategies and tactics which enable prospective customers to become pre-qualified.

Contact:               Mark Horwood

                            Online Onhold

                            Tel:                      1 300 854 022

                            Email:               mark.horwood@olmediacom.com

                            Web:                    www.olmediacom.com

The Point of Sale

What's the point.

At present, many sales calls are consistently resulting in rejections, obfuscation, disinterest and, yes, in some cases rudeness.

Each is perhaps understandable when the prospective purchaser(s) and client(s) is or are up to his, her or their elbows with alligators.

Call resistance is a typical but not a natural or desirable consequence.  Which raises a fundamental question:-

What's the point?

Those responsible for sales often rationalise a reluctance to call on and canvas existing prospective and past clients with the contention that there is little point in doing so, because “nobody's buying”.

Conversely, “time-stretched” prospective purchasers have their own take on the question.   They rightly see little or no advantage, benefit or point in a call from a sales representative who simply presents themselves once again.   What's the point?

The key issue in business today, with the consequences and real or perceived fallout from the Global Financial Crisis, is not how to develop a sale, nor to extend the sale or even to close the sale.   No, the richest rewards will be enjoyed by those who enhance their skills on how to open the sale.  

ESTABLISH A SALIENT

All good strategies recognise, respect and provide a well conceived, documented and implemented means to establish a salient in the market place and in the mind of consumers and clients.   In the military parallel that equates to establishing a beach head, from which all developments, growth and control emanate.

Sadly, too many good endeavours in the current marketplace falter because of continuing use of obsolete advertising, promotional literature, packaging, sales call routines, buying packages, products and services.   Those can be and are often considered to be boring.

Times have changed.   So too have client needs, perceptions, expectations, preferences and buying criteria.   Most challenging is the realisation and reality that many competitors and substitutes have also changed their sales strategies, products, services and support initiatives.   The point is that all businesses, products, services and people need a new, fresh aspect.   Relevance is an overriding imperative.

Therefore, mortgage brokers need to and indeed have an alternative sales opener of offering funds from 30 different sources.   Likewise, financial planners should and can offer more than the highest dividend rates.   General insurance brokers too, need to reinvent new opening lines away from insurance risks to a more appealing point of difference.   Real estate agents have at their disposal a compelling proposition to vendors which outweighs any attraction of accepting a lower price.

GIVE'M   A REASON

Existing and prospective clients need a reason to pause, to contemplate and to conclude a purchase.

Tim Treadgold is a well respected and well read business journalist.   Each day he is the recipient of countless news briefs and media releases.   Most are summarily discarded.   In his disarming manner, Tim explains that many of the missives are interesting.   However, interesting is not good enough.

Tim's challenge cuts to the chase.   “What's the angle”.   For a story or a proposition to offer value to a publication, editor or journalist, it needs to be unique, captivating and compelling.

The same principles apply to industrial sales.   Success will not necessarily gravitate to those who are industrious or more industrious.   Winning business on price competitiveness and tendering is increasingly marginal, with margins being wafer thin.   Therefore, seek out, establish and introduce creative sales openers.

A LITTLE HOMEWORK

Dating back to the ancient Chinese leaders, through the annals of military, national and commerce history one edit has persisted:-

“Know thy Enemy”

In contemporary business, clients are not deemed to be the enemy….but the principle still applies.

Customers and clients don't necessarily want more, they simply want to get more.   The distinction is subtle, but significant.   In short, the product or service on offer needs to be an accelerator or leveraging factor in the prospective purchaser enjoying more satisfaction, more protection, more profit margin or more presence in selected target audiences.

Intuitively, a fundamental element in a strategically advantaged sales opener extend beyond qualifying, extending or closing the sale.   A strong focus on outcomes, rather than processes, is now essential for closure.

Marketers refer to a well reasoned philosophy:

“The objective of Marketing is to make selling superfluous”

Customers respond to, welcome, endorse and get enthusiastic about a great sales opener.   The result is that they buy, rather than being sold.

OVERCOME OBJECTIONS

A great sales opener rarely ever encounters objections, which tend to be conditioned responses to stale, standard and repetitive representations.    There is little to object to when the focus is on the positive, the upside and the consequences and benefits of a prudent investment.   That's a superb opening line!

So considerable rewards will be enjoyed by those who concentrate on the front end (of the sales process – the opening) and then immediately orient the prospective customer and clients to the outcomes.

I hope this made the point.

Self Promotion

Today, self promotion is an imperative.

Humility and understatement can be commendable but costly virtues in the current marketplace.    The Pareto Principal, in which 80% of business is supposedly generated by repeat customers, referrals and recommendations is like the Italian economist himself, Pareto … ….long since buried.

At present low response rates to market, sales and relationship initiatives are being rationalised as consequences of existing and prospective clients being distracted by the fallout from the Global Financial Crisis.   Wrong!

It is indeed the marketing, sales and relationship initiatives which are being dismissed or ignored as distractions from the primary focus as stretched and often stressed business owners and leaders address the priorities of the day.   Many are up to their elbows in alligators.

Relationships are valued and protected.   Tenuous holds on income streams are quarantined, with recommendations and referrals minimised.   A loss of sales potential, a relationship or friend for any reason is too much to contemplate, let alone bear.

So, any and all emphases on self promotion need to be defined, confined and refined, to ensure that there is relevance, benefit and advantage to target audiences of such endeavours.   Big noters and ” blow-hards” are presently and will in the future falter on the alter of growth opportunities.

It is said, and widely accepted, that man cannot survive on bread alone.    So too companies with public relations campaigns.   The measure of success in the prevailing economy and marketplace is not quantified in the column centremetres of “free ink” in trade, business and commerce publications and websites.

“A picture is worth a 1,000 words” is a well travelled truism.   However,   this misquote of Confusius   is incomplete.   The missing phrase is “……..but a picture doesn't tell the full story.”

The business life experiences of former elite sports people are similar.   Past glories, victories and fame do open doors, but they seldom close deals.

Well crafted editorials are much the same.   Editors and readers alike dismiss, scorn at and laugh down hackneyed phrases like “the nation's biggest”, “the world's best” “the market's number one”.   Figuratively and literally such contentions are “unbelievable”.   So, dispel such contentions if credibility is important to you, your image and message.  

COMPLEMENTARY COMMUNICATIONS

Missives from professional public relations consultants are often transparently, self serving (to the interest of clients ) .   In isolation most achieve little.

Complementary strategies, tactics and communications including advertising, displays product /service sampling, networking and one-on-one communication are typically required to “close the loop”.

Having stimulated interest, established a presence and developed awareness, recognition and preference for a brand, it is logical that reinforcement of such   via medium of promotional products is implemented.

In a sea of sameness an ongoing presence of a company logo and brand name does establish a subliminal foundation on which to progress the sales and marketing processes.

THE ESSENTIAL THREE RS

In pursuit of effective self promotion certain essentials need to be respected and utilised.

As a starting point one needs to review The Three Rs ……

WRITING

Written text instils a measure, a focus and discipline.   Review of words used and sentiments expressed is typically instinctive.  

Written text differs appreciably from the structure of the spoken word.   It tends to be more concise, comprehension is higher and the orientation to the intent of the communication is noticeable.

In short, a well structured text reflects and projects a well considered case.

READING

All self promotion material must necessarily focus on the recipients and highlight the advantages, benefits and confidence which will be or are also to be accorded them.

The underlying concept of “self promotion” is mirror-like in its character.   Whilst the goal may be to promote the sender of the material, it will only ever be effective if the benefits flow to the recipient.

So in “self promotion” don't be selfish.

REINFORCEMENT

Too often, self promotion initiatives are spasmodic, isolated and fractured.

Consistency   and continuity are virtues.

Therefore, all relevant communication channels need to be deployed, including trade magazines and promotional products.

Images, perceptions, logos, packaging and product/service presentations need to be reinforced, consistently. Self promotion is part of the branding process and the disciplines need to be respected and deployed.

NEVER TOO MUCH

Professional service consultants consistently allocate up to 40% of   their own time and resources on the promotion of their business, which typically centres on them (read: self).

That's the reality.   Now, all that one need do is to develop the ability and discipline to differentiate the person from the product (which may still be the person).   For example, entertainers often talk about themselves in the third person.   Tom Hanks will refer to “Tom Hanks” or “he” in interviews.

Little wonder this great self promoter can command fees of up to $70 (US) million for a single movie role.   He has truly overcome his own …

                                                        “Angels and Demons”

He Who Hesitates Is Lost

There is a difference.

Putting off a decision is different in nature and in consequence to making a decision that concludes with a “no”.

The current volatility of local, national and global economies and marketplaces has tended to influence many business owners and managers to put off a decision until things are “better” or “right”.

That's interesting !!    When one retreats or withdraws from an active, if not proactive role, a negative mindset is inclined to evolve.   It is then that the time or circumstances never seem to be “right” and “better” is only a passing phase or another “false dawn”. Yeah, right!

Decisions which are made on the best available information are just that. Limited by the availability of information at a given point in time.

For many in business, time has been the independent variable in the decision making process. Significantly, the decision is then the dependent variable. Nothing happens until someone finds the time to recognise that a decision is needed.

That raises the important question of just how many business plans nominate planning as a key component and specify the actual time period for planning reviews and refinements.

USE TIME WISELY

Information in the current marketplace is not perfect nor complete. Accepted. It never has been, is or will be, regardless of the character of the economy… at the time.

The buoyancy and exuberance of the boom period have lapsed. Less pressure is being applied to the available time of business owners, managers and staff members. Retrenchments and staff dismissals have qualified to some degree, the amount of increased uncommitted time in a typical working week.

However, there is little evidence that more dedicated time is being allocated by many entities to business development, marketing, team building, training and planning.

References to 10% of time being given to marketing and 5% to planning generally collapse when executives and people are asked to nominate which specific hours and days are scheduled for such activities.   The usual rider to the statement is, “when time permits.”

SCENARIO PLANNING

Now is the time to undertake interactive sessions which involve the participants in visualising, analysing and formulating possible and probable marketplace scenarios which will or could develop during the ensuing three year time horizon.

Strategic and tactical options can then be recognised and isolated. One significant by-product is the acceptance by most that options and choices do exist. The “siege mentality” which has gripped and impedes many entities is addressed, readdressed and often overcome.   Personal and group confidence is lifted.

Pre-emptive analysis can and, arguably, should be given to the identification of marketplace triggers which will necessitate appropriate decision making and action implementation. That will save time, provide scope for marketplace leadership and ensure an early development of increased momentum.

BEWARE INERTIA

Deluding oneself in the mistaken belief that it is not necessary to make a decision at this time can have its own opiate characteristics. An absence of decision making can reduce stress, free up time and avoid the prospect of errors, omissions and failure.

However, the loss of momentum in the intermediate to longer term has widespread implications for competitive advantage, supply chain benefits, customer loyalty, stability and the creation of almost impenetrable defensive forces.

PLAN TO PLAN

Detailed and documented planning is not an innate feature of many corporate cultures or business activities.

Sadly, and disturbingly the formulation and documentation of business plans are all too often outsourced. External consultants, no matter how good, qualified and experienced, can never fully understand and accurately articulate a company philosophy and set of core values.

Such consultants are invaluable in providing a malleable and relevant planning framework. The hard work and the contents must necessarily be the responsibility of the people who lead and work within an entity.

PRACTICE MAKES PERFECT

Critics of scenario planning dismiss the concept as being speculative, subjective and inaccurate.

There is some currency in the first two of those three adjectives. However, anecdotal evidence and detailed analysis over an extended period of time reveal that   documented plans which evolved from scenario planning workshops are inevitably strikingly accurate.

That should come as no surprise. Business professionals who know in detail their market place, their products, their services, competitors, customers and global trends in communications, supply chain management and marketing, can and do readily visualise the unfolding scenario.

Regrettably, most do not dedicate sufficient time, money and resources to the planning of the business.

Leading sports commentators in latter years have concluded that the difference between young, aspiring cricketers achieving and failing to wear the “baggy green” cap as an Australian Test cricketer comes down to a minimum figure … 20,000.

For a batsman or bowler, that equates to some 55 balls bowled or faced each day of each year, for a number of years.   And that is just the number in excess of the average.

Similarly, business leaders who plan and make astute decisions regularly become very good at both. Success follows.   How lucky are they ???

Your Slip Is Showing!!

Oops! We've slipped… and it shows.

The global financial turmoil and resultant downturn in the business environment and retail sales have had countless consequences. Among them is a regression in many retailing, promotion, advertising and merchandising practises. Sadly for some, the standards have slipped to the very basic.

Emotions, a sense of theatre, innovation and fun have been removed, or at best, minimised. Their respective roles and importance have been discounted. Standards have definitely slipped. They too have now be discounted.

Many brands, including those of retail outlets, products and services have been compromised and damaged. It will be difficult to reconstitute full recommended retail prices in future, without considerable leakages in demand.

During the peak Christmas trading period of 2008, the $10.4 billion Australia Federal Government stimulus package was complemented by increased, price oriented advertising with offers of up to 70% off retail prices. It seemed to work… in the short term.   After a slow start, national December retail sales recorded a 3.4% increase. The tipping point appeared to be 8 December, the date on which the first of the cheques and bank account credits arrived from the Federal Government. Little consideration has given to the bottom line.

Electrical appliance retailers rushed to the media declaring their support and endorsement of the political initiative. The same individuals and businesses announced store closures, staff dismissals and retrenchments during January.

One disturbing aspect of the high pre and post Christmas retail sales was the fact that a relatively large percentage of the transactions were people who were not recipients of the Federal Government stimulus package.   The same people had planned such purchases during the course of the 2009 calendar year, but had rescheduled their buying because of the compelling appeal of the huge discounts which were on offer.

Thus, the Christmas period receipts reflected a rescheduling of many planned purchases rather than the generation of new sales.

This begs the question of what does the period April to August hold for the broader Australian retail sector?  

THE CAMERA DOESN'T LIE

A photographic survey of retail practices in metropolitan Sydney, Melbourne and Perth during February enabled these consultants to conclude that the widespread poor merchandising displays were making a greater contribution to spasmodic and declining consumer store traffic and retail sales than the impact of the prevailing financial turmoil. Overall, standards have not improved in some three decades.

The conclusions need not reflect the capabilities and skills of in-company and manufacturer merchandisers.   Rather, what are specifics of the briefs and the key performance indicators which are being applied by senior management teams?

The visual evidence is compelling.   That is not to suggest that the premises were not clean, well lit and well stocked. They were. The cleanliness was sterile. So too were many of the shopping ambiences and displays.

MARKETING 101 LIVES

All of the fundamentals of the marketing discipline persist. At all times emphasis should be given to “advantages” and “benefits”. These project emotion, inspire action and fulfil desires.

Features provide the rationalisation and justification of the purchase decisions which have been determined by consumers who have advanced to that final phase of the buying process. In absolute and relative terms they represent a small percentage of the market potential.

Thus, much potential is currently being forsaken because of common basic practises which are being displayed in pursuit of the important but superficial “false God”, cashflow.

APPEALING ALTERNATIVES

Advertising, regardless of the media utilised (including television, radio, print, poster, email, direct mail, coupons and loyalty programmes) can and should be enhanced by three key words which research has established resonate with consumers, stimulate interest, generate additional store traffic and are the catalysts for greater sales and profits.

Sadly, analysis of the current and recent advertising campaigns of major electrical appliance retailers reveal many do not include those key triggers.

THE RIGHT SETTING

A positive and appealing store ambience and a good shopping experience have become established imperatives for sustainable, successful retailers.

Integral to both is the astute deployment of the six dimensions of creative and effective merchandising.

A seeming current overemphasis on the aspect of “visual” limits potential and actual sales. Consumers consider static displays boring. The employment and deployment of other sensory factors in displays can and will stimulate interest, sales and satisfaction.

DARE TO BE DIFFERENT

All businesses regardless of sector and discipline, have the potential for and possibly the need to be different.

A long record of success suggests that electrical appliance retail professionals, like many others, have the skills, experience and expertise to change and to benefit from a new approach to communicating with, educating, inspiring and influencing existing, future and past clients.

In seeking the “right” answer, it is important to ask the right question. A tight focus on cashflow and discounting may not be the answer, nor the appropriate leading question.

Micro Firms Are Not Small Business

Labels can be misleading.

 

By nature micro-businesses have five or less employees, including the owner.   However, throughout the world micro entities are big business.

Systems, structures and resources are typically limited and often not cutting-edge. They are small. Many are dynamic and innovative. Individually, businesses in this sector have been greatly impacted by the current economic turmoil. Finance lead-times can be short and margins wafer thin.

Cashflow is often the true and central lifeblood of such entities. The categorisation “credit card” financial management is an over simplification and harsh judgement. However, these aspects and references are indicative of opportune realities for this business type and those who seek to service them.

Collectively, micro-businesses are numerically greater than the number of medium sized and major regional, national and transnational corporations which operate in Australia, New Zealand, Britain and North America.

The skill set and entrepreneurism of the owners are often insufficient to generate growth, beyond the initial years of trade, and to sustain competitiveness and advantage.   That may explain in part why many in this subgroup do not aspire to substantially grow their operations. That mindset and parameter is often not recognised or respected by external consultants.

Increasingly, the greatest and most widespread needs for micro-businesses are integrated systems, structure and discipline. In short, support and infrastructure.

During the past three decades, major corporations have learnt and profited from the utilisation and marshalling of the capacity and drive of small and micro-business. Countless supply chains exhibit the evidence and consequences of downsizing, outsourcing, re-engineering with the proliferation of micro-businesses.

Buying groups, marketing networks, franchise chains and operating co-operatives provide immense scope if and when they are able to overcome one major impediment. That is, the allure of the desire for independence by small business owners.

DIVISION OF LABOUR

The lessons of the past have been lost on, or possibly have never been learnt by, many contemporary owners and managers of micro-businesses.

Frederick Taylor has long worn the label of the father of “Scientific Management”. His research, findings, philosophies and applications about the division of labour were the touchstones of mass production, which was instrumental in the growth and success of entities like Ford, General Motors and General Electric.

Regrettably, the science of mathematics work against micro-businesses. The capacity for division and multiplication is limited with a maximum workforce of just five.

Time spent on administration, marketing, selling and networking can be all consuming, with little immediate returns. The financial imperatives of generating cashflow and earning need to be forsaken, even if for a short time.

Conversely, a full commitment to “doing the job” can have significant adverse intermediate and longer-term consequences. Neglecting administration, marketing, selling and networking can be perilous. It's a fine line between the two.

All too often micro-businesses do not have comprehensive, detailed and objective business plans. Cashflow projections documented by external accountants do not suffice. Many are in reality documented hopes, dreams and aspirations without addressing the issues of “why” and “how”.

So, one should be driven by and needs to respect the underlying philosophy of economics. That is, the allocation of scarce resources.

SMALL THINKING

One epidemic which pervades the current crisis ravaged global marketplace, including among micro business owners, is short term, negative and small thinking.

A strong focus on cutting costs can and often will achieve the set   objective … to save costs. The unanswered question is: “At what cost?” Growth, enhanced margins and increased customer satisfaction appear to be off the agenda.   That is lamentable and often unnecessary.

Considerable value is possible from an effective and objective skills audit of all employees. Emphasis and priorities can be set, reset and refined. Complementary skills and resources may be necessary.

Most important and often overlooked is an analysis and determination of what is the driving force of the business. It may be production, services, sales, research, product development and logistics.

Cross referencing the two sets of findings can be enlightening, highlighting strengths, competitive advantage, gaps and deficiencies. It can also register and quantify the advantages of being part of grouping, regardless of its individual character and structure.

That is the true worth of the division of labour.

AN IMPORTANT FOOTNOTE

In these testing times, nepotism can and often does come to the fore. Looking after those in the nuclear and extended family is understandable, possibly laudable.   However, in business it can be simply dumb.

The issue is not family employment, but rather skills deployment.

Our DNA and genes are not necessarily the best pro-conditioners for sound employment and deployment decisions, be it first, second or third generation.

Micro entities and business at large deserve better. That in itself is a rare, unique and disciplined science.

"My Word Is My Bond"

“MY WORD IS MY BOND”

My word is my bond.

Great sentiments. Or, are they a nostalgic recall from the past. How sad that recent experiences within the context of the global finance turmoil have prompted fears and reservations about verbal commitments which have been given.

No one or one sector seems to be immune to this contagim. There is evidence of it in business to business, business to consumer, personal, social and professional relationships. Disbelief, rejection and dismissal are perhaps overly strong expressions to be applied universally. Rather, the feeling among many centres on terms like qualified, conditional and tentative.

As a consequence, budgets are being recast and tolerances for variances included in forecasts.

Beyond risk, debt and entrepreneurism, the lubricants of business are trust, truth and transparency. A personal or corporate profile centred on fulfilled commitment is advantageous and optimal.

EARLY SYMPTOMS

Sadly, contemporary business practitioners have become attune to identifying the symptoms where bonds given are wavering or have lapsed.

Telephone, email, fax and SMS messages which do not elicit prompt and reasonable returns are indicative of this insidious epidemic.

Calls that are “fielded by subordinates” or “intercepted by personal assistants” are not appreciated or appropriate.

A LITTLE UNDERSTANDING

Most, if not all, people in business are sensitive to just how rapidly circumstances change in the current global marketplace. Their own realities foster a sense of understanding.

Fundamental advantage can be achieved and maintained with a concerted effort to keep all stakeholders, external and internal, fully informed. Personal standings are enhanced.

DOCTRINE OF NO SURPRISES

The philosophies of the former President of the International Telephone and Telecommunications Group (ITT), operators of Sheraton Hotels, Avis Rent-a-Car and a number of Telcos in the 1960's and 1970's have heightened relevance today.

Harold Geneen, subscribed to the belief and importance of ”the Doctrine of No Surprises” .

Open, two-way channels of communications promote confidence, stability and valued substantial lead-times (during which remedial actions are possible.)

The message is: “Tell it to me and tell it to me straight”.

TRUTH OR FACTS

Truth is an interesting concept. It generally resides in widely held and accepted beliefs.

Facts are easier to address and to share. Moreover, it is from facts that truths emerge.

Stakeholders appreciate and value the sharing of facts. It genuinely empowers them.

Some facts are unwelcome, unwanted and hard to handle. However, there are no “true facts”, or “soft facts”, just like there are not “half truths”.

Sharing facts, often in confidential and discreet settings enable the formulation, development and acceptance of new truths.

The lesson is: People can and do respond, if and when you respect their integrity by the sharing of facts. In most cases, everything is then negotiable.

NEGOTIABLE CURRENCY

In these complex times, there is understanding. The 2009 global economy and marketplace is a whole new world. Indeed, it has no precedence.

The new context does often, understandably and appropriately, impact on the content.

A bond is an integrating and mutually beneficial force. A clear comprehension that one wants to do business enables negotiations to begin and to be concluded on the specific shape and contour of the context and content.

So, start early, communicate and maintain the flow, to enable others to appreciate the true value of the phrase:

“My word is my bond”

"What's The Message?"

Good advertising.

It’s an interesting phrase.

To some it is an oxymoron. That is, a contradiction of meanings.

Much of the debate centres on the adjective, the word “good”. It can be hard to be objective about an adjective. The noun, advertising, merits an academic treatise in its own right.

For local government entities and associations, elected officers and professional appointed people often engage in considerable discourse on who exactly is the target audience. The term stakeholder can be all embracing. However, by its very nature any generalisation about whom one is communicating with, compromises the impact among and the relevance to the selected audience or limited audiences.

ADDRESSING NEEDS:
Good advertising has a sharp focus, a discrete target audience and a captivating message.

There is widespread, but often reluctant acceptance of the need to advertise and promote the virtues, roles and true nature of local government. Dispelling negative, stereotypical images of those in local government networks is a real need, a significant challenge and a compelling undertaking.

Advertising alone will seldom achieve the desired and aspired goal or goals. Contributions are necessary from public relations, promotions and merchandising, which can and should precede, complement, supplement and reinforce the expenditure invested in “good advertising”.

Public relations, for example, is an appropriate tactic to project and establish a positive predisposition about the subject of the advertising. This is becoming an increasingly important input for an integrated communication strategy. With our over-communicated society and busy lifestyles the process of “selective perception” screens out, filters or impedes many essential messages.

Likewise, promotional activity can and often does create a sense of urgency, which increases the relevance of an advertising message to a specific audience at a particular point in time. In short, such initiatives influence the agenda among those in the target audience which in turn enhances the reception of the advertising, regardless of medium used.

Merchandising is an imperative for effective, efficient “good advertising”. Without a strong call-to-action and the capacity to convert latent potential into real, beneficial outcomes, advertising dissolves into a well-meaning but superfluous undertaking.

No matter how well the feel-good aspects of an institutional advertising campaign are executed with emotional, personal and local imagery, it amounts to nothing if those who are in the target audience take assertive action in response to the message only to be confronted by ignorance, indifference and dismissal among local government officers.

For example, as the effects of the economic turmoil spread throughout society and employment centres, the appeal and allure of the security, convenience and corporate cultural attractions of local government will resonate with more people than was the case over the past five years of a “boom”, resources driven working environment.

Imagine the dismay and disappointment of the respondent to “good advertising” which declares that members of the public should “consider a career in local government”, when making contact with his or her local government entity only to be told that they are not hiring at present, or that their needs for new staff members require specific training, qualifications and experience.

As a consequence the good money expended on good advertising is wasted or, at best, enjoys limited return or dividends.

Appropriate advertising must necessarily nominate a point of contact, a name, a telephone number, an email or mailing address and the specific features, benefits and advantages of what is being offered.

Too often the “good advertising” of local government entities and associations falter on the altar of good intentions.

SUMMARY OF KEY POINTS:
· What is the specific target audience?
· What are the key points of the message?
· What are the tangible and intangible benefits and advantages”
· What actions are desired from the target audience?
· Is contact with particular responsive people detailed and made easy?
· What use has been made of public relations, promotions and merchandising to complement the advertising?

"Talk Is Cheap"

Talk is cheap… but invaluable.

Sadly, many of those wishing to buy, invest or do business at present are finding it hard to find someone to speak to.

Outward bound telephone calls from companies have fallen in recent times as confidence among staff members has plummeted and anxiety levels have soared.   This is particularly noticeable in the broad finance sector, including professionals in financial planning, mortgage broking, stockbroking and banking.

Clients and customers appear to be keen to discuss, not accounts, but accountability.

Refreshingly, the better performing businesses are those which are encouraging and facilitating all their people to be open, accessible to and engaging with suppliers, associates, customers and loyal clients.

The delineation between frontline service providers and background support staff has been removed. In these turbulent times everyone, yes everyone, is part of the marketing, sales and service teams. This is a very salient message for those in credit management.

NAME CHANGE

“A change is as good as a holiday …”   “A different perspective provides new insights”

The underlying philosophies of these statements are the driving forces for an increasing number of management teams. They seek to embrace a progressive strategy with the intent for an inclusive culture to be fostered, with attendant enhancements in performance, bondship and stability among staff members.

For example, the title, “credit department” has been changed to “marketing support”, or similar.

Key performance indicators have retained the pre-eminent need for financial prudence but not complemented by a recognition that in the contemporary global business environment sales and marketing are impeded without effective, supportive and positive credit policies and practices.

Unquestionably credit managers and officers can and will make it happen. It is they who can address and redress widely held myths which have little or no foundations of truth. Among such are a belief by many existing and prospective clients   that no-one is lending and that all credit terms are being wound in on all clients.

Clearly, there is a need for, and countless advantages to be gained from a re-education and reassurance program for all existing, prospective and post clients.

The lessons are simple:

•  Without credit, business slows to a tedious, unprofitable grind.

•  Without re-education and reassurance, substantial sales opportunities are lost – primarily because of ill founded perceptions.

One fundamental in establishing and sustaining relationships is the need for a strong personal component.

Credit, along with service and support people should be more than just the voice on the end of the telephone line or the initiator of a stream of “payment demand” emails and SMS messages.

A conspicuous, personal presence in the marketplace facilitates and promotes greater communication. Not surprisingly, when people talk, the topic often turns to business and as a consequence sales, profits and increased customer satisfaction evolve.

Indeed, it should be desirable, if not mandatory, for credit people to accompany sales and marketing representatives to the premises of clients at periodic intervals. The costs incurred are a foundation investment in long-term relationships and the well documented lifetime value of customers.

Above all else, the introduction of a credit and/or support person in the regular sales calls of representatives adds to the justification for the visit and a new focus on issues addressed.

It was former U.S. President Woodrow Wilson who said:

“The business of business is business.”

In the current turbulent environment it is not necessary, nor possibly appropriate to “talk up” business. Talking business will suffice. The benefits are direct and indirect, quantifiable and profitable.

Research has revealed that those businesses which maintain regular, positive content through multiple channels (read, different staff members) are consistently among the first paid.

This highlights further, the strategically important role they can and should be paid by creative credit and other “backroom people” who, correctly, identify their primary function to be marketing and sales support.

Image the impact that is achieved by credit people who personally phone clients who settle outstanding accounts within the standard credit periods to express their appreciation and gratitude.

What a refreshing change to overbearing letters and telephone calls of “payment demands”.

Modern business is like politics. Few people are enthused or focussed on the processes of production or legislation. Interest tends to centre on the outcomes, advantages and benefits. In both scenarios a widespread need exists to repackage the entities, individuals, products and services. That is called marketing.

A change from credit management to marketing support has a nice ring to it.

Or is that the cash register recording and banking another sale and establishing a closer relationship?

"Cannibalism Indigestion"

Cannibalism is on the rise around the world. There is evidence of it everywhere… in retail, services, finance, manufacturing, rural, technology, media and even in mining.

It’s dog eat dog.

With offers of 50% off retail and up to 5 years interest free, the behaviour of some is rabid.

The small but rapidly growing drift to online sales is indicative of a broader and deeper evolving trend. In a period of stagnate, if not declining sales, the incremental factor of online sales is further evidence that the broader retail sector is cannibalising itself. Significantly, the increasing use and influence of the internet is not generating more sales. In most, if not all cases, it is simply redistributing the sales and market shares. This is accelerating the importance of cost and overhead reductions.

A widening acceptance of the theories of Charles Darwin may be appropriate, with implied endorsement of the need for structural change, and fast.

CONSOLIDATION AND RATIONALISATION
Indigestion in a number of sectors will soon become apparent to the marketplace and consumers as the acquiring entities are made to swallow many rationalisations and consolidations of businesses, brands, products and services.

Absorbing, integrating and in some instances dispelling cultures will be difficult. And one is not talking of yoghurt. The dominant force in those scenarios will inevitably emerge with enhanced returns, market presence and positioning.

KNOW THY MARKETPLACE
A growing number of astute business leaders are dedicating resources to the identification and analysis of opportunities for mergers, acquisitions and strategic alliances with competitors, substitutes and potential collaborators. For others the need to address the issues of exit strategies and succession plans have become paramount.

The risk profiles associated with such initiatives can be and often are less than business development strategies which involve increased capital expenditure, larger advertising and marketing budgets and expanded inventories.

Capitalising upon and realising the potential will be dependant upon business owners, leaders and managers being objective, detached and strategic in their evaluations of the propositions. Territorialism and unwarranted self-interest defensiveness will be both unfortunate and inappropriate.


THINNING RANKS
The current market circumstances are unique. Projections of outcomes which are based on history and past experiences may have little relevance.

Certainly, middle ranking executives will be among the sacrificial lambs. However, it will be the senior positions that will be thinned, in some instances aggressively.

Stronger leadership will evolve and will be valued by financiers, analysts, suppliers, associates, clients and consumers.

Fragmentation and replication, which have been characteristics of many market places during the past decade, will decline. This will provide for scope and flexibility for business owners and managers to more effectively promote, position and utilise brand marketing principles to secure and sustain market advantage.

During periods of volatility, clients and customers seek out the reassurance of recognisable and trusted brands. As a consequence, advertising messages for brand leaders will be more penetrable and effective. Advertising expenditure can then be reasonably reduced, and a greater concentration of the media utilised be effected.

In short, marketing initiatives will be more effective, and efficient, for some.

It is reasonable to expect that these projections will materialise over a period of 18 to 36 months. After that, most growth will be organic as individual brands, departments and franchise operations recognise and pursue unfulfilled potential.

CAST OFF TALENT
For many of those talented senior people who will be deemed to be casualties of the cannibalistic processes, the scope and temptation will be to exploit their creative and entrepreneurial skills and experiences.

And so from 2011, as the credit crisis retreats, confidence and trust emerges and the true nature of capitalism will come to the fore, a new generation of “start-up” businesses will assert its presence.

The huge amounts of capital within sovereign funds and superannuation accounts will quickly recognise the talent, potential and scope for growth within these entities, which are or will be led by strong, experienced and enthusiastic but previously misplaced and displaced business professionals.

CONCLUSION
Survival today and in the immediate future will be enjoyed by those who are the fastest, fittest and most determined. (The Olympic spirit transcends all boundaries)

Strong corporate cultural bonds will enhance resilience, flexibility and responsiveness.

Cannibalism need not and should not be evident with the ranks.

Change, What Change?

Some things never change,

A lot of businesses and executives get caught up with the challenges of change.

The current dynamic, competitive and volatile market place can be adrenalin pumping, elevating and, yes, in many ways rewarding.

New strategies are formulated, documented and implemented. Complementary, short-term and local tactics are being introduced with the attendant benefits of focussing the attention and actions of frontline staff members. Just to be part of the process is motivating.

New products, services and initiatives contribute to the sense of heightened energy. There is a new story to present, product knowledge to be learnt and competitive advantages to be exploited.

Typically, care is taken to ensure that all staff members are informed, enthusiastic and “on board” as the company “moves forward”. Staff meetings, business development workshops and launch events extend to the prevailing sentiment of importance and progress.
______________


Suddenly, reality dawns. Unexpectedly, unwanted and disturbing statements from existing, prospective and past customer and clients register.

It becomes evident to all within the company that……..

The one constant is not change.
It is the customer’s perceptions.

The train has left the station, but the customers remain on the platform.

Nothing has changed. Customer images, expectations, preferences and intended buying intentions are founded on past and often long standing experiences, references and mindsets.

Clearly, they have been left behind, uninformed, uncommitted and ignorant of any perceived or real new advantages and benefits.

Advertising, promotions and point-of-purchase merchandising will not be sufficient to “move the world” for many customers.

Such communication is typically dismissed as being irrelevant, unless and until the customers have been informed, involved and educated, usually over an extended period of time.

Strategic, long-term changes in image, market positioning, product ranges and services are seldom, if even, time specific events. Therefore the process of osmosis needs to evolve and with it, the consumers and market place at large require education, reassurance and redirection.

Single shot, product driven advertising will not achieve the set objectives. It is probable that a single digit percentage of existing, prospective and post clients will consider the message timely or relevant. Thus, the communication will be ineffective.

Rather, an integrated schedule of ongoing communication through a number of media, including telephone calls, personal visits and mailed invitations to visit and make contact will foster and be a catalyst for target groups and individuals to initiate contact.

In short, presume nothing. That which indulges and embraces the attention, thoughts and actions of those within an entity may have little relevance or recognition among those who are external to the company, for instance.

Consideration may be required for a campaign which will “unlearn” customers, distancing and making redundant past practices, relationships and expectations.

It is a sobering realisation that many lost sales opportunities are founded on the consumer statement :

“But, I thought………..”

Little did they know……… period.

Blame for such cases resides with the change agent and the changing entity.

With a changing world, some things remain the same. Those who have attended class reunions after a lapse of 25 years will know the experience. Suddenly, one finds oneself surrounded by aging, lined and often rounded individuals in their 40’s.

It was not what or who you remember. Life and people have changed. The memories remain……… constant.

The circumstances are mirrored in countless, if not all, business scenarios. Therein lies the causal factor for lost sales, a lack of contact, an ebbing of repeat business and loyalty.

Relationships need to be nurtured if they are to grow and develop, underpinned by ongoing communication.

Gaps in perceptions and expectations are often a consequence of gaps in or an absence of communication.

Perhaps recognition is required for the need to change mindsets, buying patterns and preference by a calculated and disciplined program of communication.

The alternative of lost revenue, profits, repeat business and referrals is not evident in the balance sheet or profit and loss statements. However, the reality weights heavy in many business and management teams.

Therefore, a true and comprehensive understanding of the concept of stakeholders needs to be fostered and promoted among all people in business, with due recognition of the presence and importance of consumers.

So, yes, the one constant in business life is change. However, with consumers it wont necessarily happen on its own.

Sales? Save Your Money

“Where is everyone?”

That must have been the plaintiff plea of countless Australian retailers and business leaders during the traditional, annual June winter and stock take sale period.

Many retailers opened their doors to empty or near empty pavements.

Television news crews, fulfilling assignments to capture the teeming and surging crowds, returned to their studios in search of file footage from past events.

The nationwide retail sector was having a party, but few were accepting the invitation. Where was Corey when you needed him !!! Guest appearances on “Big Brother” were doing little or nothing to the ratings or the bottom line.

Some legal practitioners have made money. They provided the consulting advice that a sale is an “invitation to treat”, as distinct from an” invitation to a treat!”

Consumer indifferences to the sales was palpable. Sales event fatigue was evident everywhere. Moreover, consumers have become sensitive to the reality that there is no or little financial disincentive when they did not respond to a particular sale. There was the common attitude that there was always tomorrow, next week or next month, when the same retail outlet, its competitors or substitutes would most probably be conducting a promotion or similar event with equally attractive offers.

The figurative muscle-power and deep pockets of major national retail chains were funding bigger advertisements with bolder headlines, offers of up to 50% off recommended retail prices and the availability of five year interest free loans. It was all to little or no avail.

Comparative same period sales receipts were down or at best, flat. Given average and typical retail price increases during the preceding 12 months of between 6% and 10%, that suggests unit sales were consistently in decline.

There was little difference in industrial sales and with business-to-business transactions. “End-of-financial year” and “stocktaking sales”, or in essence “clearings” were generally met with stonewall resistance from corporate clients. They too have become financially prudent, lowering inventories and being immune to the temptations of discount prices. The just-in-time philosophy is a lot like that!

WINNING OPTIONS

The time is nigh for investment in the training of people and upgrading (in some instances, the introduction) of efficient database management and customer relationship management (CRM) systems.

Really knowing, connecting with and giving commitment to existing prospective and past customers and clients are collectively the most efficient, effective and immediate means to increase immediately revenues, margins, profits and customer satisfaction. It is never too late.

Relevance of a business, its people, products and services is enhanced from a better understanding of the lifestyles, business circumstances, aspirations and individual needs of consumers, companies, departments and networks.

Such calls for action beg the question, why wasn’t it done before? For some, it was. It is they who are enjoying better, more stable and in isolated instances, significant increases in demand, sales and profits.

A central issue in addressing the evolving and enveloping marketplace is time. Some will contend it is too late. Others will suggest that it will take time. More will state that the current priorities of accelerating cash flows and increasing available cash leaves little time, money or resources to address these propositions.

Each may contain an element of truth. However, Albert Einstein would contend that time is relative.

If no action is taken now, just how much time is left …. to take remedial action or..., period.

It’s time to marshal one’s resources. Energy, creativity, product and customer knowledge, positive thought and actively taking assertive initiatives counts for a lot in these times.

THINGS TO AVOID

A herd mentality is something to avoid at most times, particularly now. The booking of and payment for bigger advertisements (regardless of the media) with bolder headlines and more financially attractive offers will not necessarily be appropriate or prudent.

DON’T DO IT ALONE

Regardless of size or capabilities, the best prospects for success are with the collegiate and strategic partnership initiatives involving suppliers, distributors, associates and customers, together with purchasing, marketing and neighbourhood networks. Common bonds typically provide common platforms for joint and multiple positive flow on effects.

DIFFERENT PERSPECTIVES

Understandably, concerns pervade the business, economic and personal landscapes. There is a reluctance to outlay anything at this time without some measure of surety of a positive and relatively short term return.

Considerable cerebral energy will be expended in determining what new and innovative things can be undertaken to have impact and to provide “value-add”.

Spare a thought then for a little contrarian thinking.

Sideline for a moment contemplation about what new and more can be done.

Attention on what one should and can stop doing…. NOW, is one avenue for freeing up things and channelling available resources to high return activities.

This should be a process undertaken at the margin. For many people their typical week involves up to 30% of time being involved and indulged in things that show little or no economic advantage. No matter how pleasurable, perhaps these things can be deleted or, at best, put on hold.

More available time provides the scope to contact, walk among and engage existing and prospective customers and clients. The rewards can be immense.

"Funny Business"

That’s funny……. interesting and significant !

There exists an important and consistent variable in the attainment and maintenance of high productivity, stable staff composition, customer satisfaction and client retention.

Refreshingly, it need not involve large outlays of capital, investments in infrastructure and systems or the support of expensive incentives.

It is difficult to quantify and is not evident in entity debit and credit registers. However, believe me, it’s impact on market worth, image and competitive advantage is substantial. The contribution to the price : equity value is infinitesimal.

Moreover, management and marketing departments are relieved of the need to authorise and script promotional texts and advertisements which declare that the entity is an employer of choice. This variable is declaration enough.

Many job descriptions and job specifications are lacking, because they do not address this attractive and valuable ideal.

Sadly, in the current volatile marketplace with the pressures of time constraints, stress and competitive forces, its presence is less conspicuous and falls short of being considered ubiquitous . The deficiency is palpable.

You may well have consciously or subconsciously noted the shortcomings in so many business, political and life settings. However, few find themselves able to verbalise the inadequacy.

FUN is like that. It counters negatives, overcomes impediments, creates focus, sustains motivation and fulfils the insatiable need of all stakeholders.

It is not hard work. It overcomes and makes light of hard work. Conflicts are typically cancelled because of fun. Group cohesion is enhanced and sustained by it.

There is no suggestion that one should not take business and the pursuit of excellence, quality, trust and integrity seriously. However, it is often good for all to not take yourself too seriously. Laugh. Have fun.

THE STEPS FORWARD

MEETINGS
An initial step to inculcate fun as an integral part of the business is to call a meeting or series of meetings to enable people to express their perceptions of the essential culture of the entity and the degree to which fun is part of its character.

Team members usually are a bountiful pool of fresh and refreshing ideas on how best to reintroduce, increase and sustain fun.

COMMUNICATIONS
Human beings are social creatures. They have an infinite need to interact. What is increasingly lacking in much of contemporary communication is the word personal.

Interoffice emails and some text messages should be minimised and personal contact encouraged.

Technology is best applied when it complements, not replaces, people and people contact.

TIME
Our time-poor society and typical lean business entities impinge on the relief which is introduced by the fun of interacting with people. It’s not easy and is easy to overlook. However, there is an importance and multiple returns from the provision of regular, periodic and spontaneous “time-outs” for team members to enjoy the fun of rotating duties and focus.

INFORMALITY
In 1983 Tom Peters and Bob Waterman Jnr released their international best selling book “In Search of Excellence”.

It was significant that many of the corporations that were identified to be excellent, tolerated and indeed, encouraged informal structures called “skunkworks”. These typically breached many traditional rules and conventions. Members of these skunkworks enjoyed the informality, fun and self generated energy which evolved.

Core values were respected, but standard practices were at all times subjected to questioning.

CELEBRATE
Daily, countless milestones are achieved, not recognised nor celebrated.
Ask elite sportspeople where they derive most fun in their individual pursuits. The focus tends to be in “PB’s” (personal best), premierships and gold medals.

These symbols and tokens make all the hard work and sacrifices worthwhile. Life in the fast lane of business is no different.

Therefore, we need to create and revere our heroes. It’s fun!

INVOLVE
Connecting with internal and external customers is an imperative for business success in the contemporary business environment.

Networking has been developed to an artform, with countless hours dedicated to expanding the spheres of influence of team members.

Nothing facilitates and expedites better the establishment and maintenance of mutually rewarding relationships than an environment in which fun is a key element.

Therefore, specific focus should be developed to include and embrace associates, suppliers and clients – the pursuit of having fun in business.

UNWRITTEN DIMENSIONS
The introduction and pursuit of fun does not impact on corporate visions, missions, policies, practices or job descriptions. It does, however, add immeasurable value.

Predictably, some people will dismiss the contention because of heavy workloads and a lack of time. Much of that can and is overcome by a change of thinking, which precedes a change of doing. It is a case of :-

THINK IT,
DO IT