Business Transformation in Australia...hands-on strategic information for leaders

SMO Sydney has moved its blog to http://strategicmarketingoutsourcing.wordpress.com

IMPORTANT NOTICE

From October 22, 2006 SMO Sydney moved its blog. To view new blogs click here

Please bookmark the new site with your bookmark function or the RSS feed icon button on your browser to get new articles automatically when they're published...or subscribe to Bloglines or other feedburners you are linked to.

Send me an email by clicking here
if you want me to add your email details to our weekly distribution list.

You can view all blogs prior to this date by scrolling down this site or clicking on relevant categories.

Cheers!

Pete Jeans CEO SMO Sydney

Email Pete Jeans or click on SMO Sydney to learn more about our experience and advantages in building successful businesses

SWOT analyses are only valuable if you can execute tactically

Strengths and weaknesses analyses ( and opportunity and threat assessments ) are only strategically valuable if you can gauge your position relative to competitors by segment in measureable terms.

And the only viable way to do that is to ask your current and potential customers what your strengths and weaknesses are...compared with their views of your opposition's performance on the same critical success factors that influence their purchasing decisions.

There is absolutely no point in second-guessing what customers' and stakeholders views are. You have to do the research.

Once that's done, the fundamental questions have to be... so what! And now what?

So what if we're stronger or weaker...is our advantage or disadvantage marginal...or substantial? And is it worth tactically executing?

You bet. Now, we know where we stand...and where we have to focus in defence and attack.

Pretty SWOT analyses for business plans are just pretty average if they're not executable.

The more space you can measureably put between you and your competitors on key issues that attract and keep customers, the safer you'll be...for the moment.

It's a continuum. The process should never stop. Market dynamics don't.

Cheers!

Pete Jeans CEO SMO Sydney

Email Pete Jeans or click on SMO Sydney to learn more about our experience and advantages in building successful businesses

Strategy

Moments of truth define our future

It's how we handle moments of truth that go to the essence of leadership.

And there's no more fundamental moment than when we realise the business model or critical components of it, are no longer capable of sustaining the delivery of nett cash flow forecasts.

So, what are the danger signs of business model breakdown?

This is by no means a comprehensive list...but add it to yours

your market mapping analyses show a marked shift of volume through different channels
your customer attrition rates accelerate over a short timeframe
more than usual first-line reports leave to join another industry sector
your fragmented but relatively stable group of competitors start aggregating
major tender EOI's are constructed on completely different terms
the media and conference organisers go to other companies for commentary on industry issues
your offshore parent company... visits you far more often than normal
private equity firms start calling
the Board unexpectantly wants a complete investment and operational portfolio review
your distributors product mix expands or changes significantly over maybe one or two operating periods
you're spending proportionately much too much time working in the business...rather than on the business
strategy consultants are persistent ( more than usual ) in their approaches

All or some of this stuff may be happening co-incidentally...but even if it is...we have to make the judgement as others may be... on the business model... or the innovation we need to pursue to survive.

Odds on, if some of this stuff is blatantly on the radar, it may be late in the day...hopefully not too late.

Regretfully, that never seems to be a call we can make with certainty...because it's always the judgement of others ( customers, creditors, competitors ) about our capability to survive.

So, what can we do about these danger signs?

I'd start by looking at the demand driver dynamics in the industry sectors. Something's changed and your management has missed it.

Cheers!

Pete Jeans CEO SMO Sydney

Email Pete Jeans or click on SMO Sydney to learn more about our experience and advantages in building successful businesses

Everyone believes innovation is mandatory to survive...

At a recent business function I attended, a leading speaker made the key point that we all believe in innovation....but who adopts innovation training and mentoring?

A show of hands made it clear that few do! Frankly, I was astounded.

The conventional approaches towards business innovation have largely been vested in customer needs analyses by segment...followed by business case preparation, product and service development processes and internal systems re-design for market delivery.

Flowcharting, reverse engineering, brainstorming, innovation SBU's...we've all used these platforms to come up with better solutions for our customers and our cost-bases.

But I like to combine these disciplines with an attitude that says first...Why not! Let's see if this is achievable! Let's be the first to do this successfully. Let's change the market.

Let's get so far in front of our competitors...that our customers will never have a reason to switch....and new customers will join us at greater rates.

Sure, it's about innovation processes, training and mentoring...but it is about having a core value of innovation embedded throughout your organisation first.

Innovation can take place at every corporate and functional level. Give your people the process templates and support... and let them innovate within their plans. We can help.

Cheers!

Pete Jeans CEO SMO Sydney

Email Pete Jeans or click on SMO Sydney to learn more about our experience and advantages in building successful businesses

There was a vibe in the place...

Recently I had a salient reminder in what makes a successful business tick.

It was full of great people who were placed in roles that took advantage of their style and customer service skills.

Their systems were appropriate...not cumbersome...and very practical to extract information easily and quickly.

Their product ranges were complete and competitive and priced right to build customer loyalty.

Their management were accessible and customer-centric...but very importantly, let their line staff do their job without unnecessary interference.

Their policies were well-known but flexible... so that opportunities weren't missed going forward.

But most of all, there was a vibe in the place that said welcome to the team...you're part of us.
Work hard and smart...and pitch in with your colleagues...and you'll grow with us.

Refreshing!

Could there be a lesson in this for all organisations?

Cheers!

Pete Jeans CEO SMO Sydney

Email Pete Jeans or click on SMO Sydney to learn more about our experience and advantages in building successful businesses

When does all your brand development pay off?

Brand positioning and all your promotional work is initially just a promise of the benefits to customers.

But if you or your distributors/wholesalers/franchisees or retailers don't empathise with new customers when they touch your business or products and services... and meet consumers information and experience needs, the outcome will penalise your sell-though expectations.

Have you been to a new car dealership lately and been disappointed with the experience?
Have you tried talking to a bank recently about changes to your account arrangements?

Have you been absolutely and pleasantly surprised ( even delighted! ) by an organisation that just did everything beautifully? I have...and I was only buying a coffee! ( and I'll be going back )

The lesson for me is that competitive strategy is fundamental...but infield execution is critical to get payoff for all the hard yakka in the boardroom.

Let me know which organisations have got it right.

Cheers!

Pete Jeans CEO SMO Sydney

Email Pete Jeans or click on SMO Sydney to learn more about our experience and advantages

Forward this article to a colleague by clicking the email icon below.

Networking has taken on much more importance

Never before has networking been more important to build your customer base.

That's because we only take calls or read emails nowdays from people we know can add value in our business lives.

That seems to be a function of contact overload. Who spends less than hour a day wading through their early morning inboxes or message banks during the day? No wonder our fingers and thumbs have got delete callouses!

It is a serious issue...particularly for businesses trying to connect with new customers.

Everyone is searching for cut-through ways to connect.

So what seems to work?

In my opinion, networking is the best way to cut through. If your messaging is brief and clear face-to-face...and your business card summarises your value proposition, you've got a much better chance of your target taking the follow-through call....or getting an email response.

So, what networking events work well?

Well, the one's you run yourself will control the "suspect " market best.

And, I reckon events that add value...are events that tap into the work/life balance space. Perhaps light entertainment...with a short key note address from your leader. Short and sweet.

That way, the messaging is on brand...to support the goodwill generated by the event... and create rapport in the follow-up conversation. Thereafter, it's up to you to listen...sell and close.

What works best in your networking ideas space? Leave your ideas and comments by clicking the comments link below.

Cheers!

Pete Jeans CEO SMO Sydney

Email Pete Jeans or click on SMO Sydney to learn more about our experience and advantages

Forward this article to a colleague by clicking the email icon below.

Our blog readership growth means it's time to call for sponsors

Nine months after its launch, this blog is being read by hundreds of corporate leaders and managers each month in Australia; plus business editors in the US, UK and around Oz.

Business Transformation in Australia is a serious business blog which is distributed fortnightly.

Readers say that it adds value. Thank you to everyone for your emails and comments.

Now SMO Sydney is offering a maximum of eight annual sponsorship programmes for the blog which can be based on text ads, logos, links back to your websites or email... and guest contributions...integrated with our blog articles each month.

Costs are low. First in will have a clear advantage going forward for 2006/07.

Any business category enquiry is welcome...but SMO Sydney reserves the right to refuse offers in conflicting sectors or categories that don't fit our readers' interests or issue space.

Please email me for details.

Cheers!

Pete Jeans CEO SMO Sydney

Email Pete Jeans or click on SMO Sydney to learn more about our experience and advantages

Forward this article to a colleague by clicking the email icon below.

AMI NSW announces Marketing Excellence Awards for 2006.

The Australian Marketing Institute (Australia’s peak marketing industry body) announced the winners of its 2006 NSW Awards for Marketing Excellence late last week.

Today the AMI represents professional marketers throughout Australia, including practitioners from all marketing functions and industries.

Through its unified voice, the AMI has established strong links with business, academia and government to become the voice of the marketing profession.

NSW AMI President Chris Mooney said “We are recognising those who achieve extraordinary success from innovative and effective marketing practices. They reflect marketing’s increasingly critical role in adding value to business.”

The nine winners of this year’s NSW awards were:

Category... Company... and Award Entry

New Brand... BlueScope Steel... Sureline by BlueScope Steel
Brand Extension... ADT... More than mere compliance
Brand Revitalisation ...HCF... The HCF Difference
Incentive Marketing... Synchro Marketing ...Seven Network - The Magnificient 7
Internal Marketing ...Synchro Marketing... Hutchison Telecoms - Retail Excellence Programme
Marketing Communications ...RAMS Home Loans ...Everyone Loves Raymond
New Product/Service Launch... BlueScope Steel ...Sureline by BlueScope Steel
Relationship Marketing... Synchro Marketing ...Hutchison Telecoms Retail Excellence Programme
Sponsorship...St.George Bank... Leading Outdoor Event in Sydney

Read more about award winners here

State winners proceed along with the national finalists from NSW to this year’s Australian Marketing Institute National Awards for Marketing Excellence and the prestigious 2006 AMI Marketing Program of the Year.

These Awards will be presented as the climax of the 2006 Australian Marketing Institute National Conference on 11 October 2006 at the Sofitel Melbourne.

Further information: Mark Crowe CEO AMI. Email him at mark.crowe@ami.org.au

Happy People by Naomi Simson CEO at experience company - Red Balloon Day

I believe that Happy People + Happy Customers = Happy Profits.

It doesn’t take much to notice, acknowledge and recognise the contribution people make. But it must be authentic and come from the heart.

It is very rewarding to see the results for companies who take the time to acknowledge the critical role that their people play in keeping them ahead and on top of their business objectives.

People are critical to the success of any marketing campaign. Having people engaged with the business is critical …if they are busy looking for a job elsewhere, how engaged can they possibly be?

It can be very hard to attract and retain top talent.

While the employment levels are so high …even more so in NZ than in Australia right now; its no surprise that leaders and business owners are increasingly seeking ways to ensure that they are ahead in the recruitment stakes.

If you are worried about this, then here’s some of what you need to know… to help win the game of getting and keeping the best people.

Most people leave a job simply because they are not recognised. Very few companies offer long term advancement strategies for their people anymore, preferring the ‘find them as you need them’ approach.

In turn, most employees are aware that in order to grow their resumes and reach the top (of what ever their mountain looks like for them personally), they need to learn a bit here, grow a bit there, and explore new opportunities to shape their evolving expertise.

It may surprise you to know that only 12% of people change employment to join an organisation for career advancement. 70% of the entire workforce in Australia is seeking alternative employment this year according to T2 research; but a staggering 33% of the workforce is currently looking for a new job because they are feeling that they are not recognised or valued enough by their current employer.

According to Gallup Organisation 48% are likely to leave within 12 months if they are disengaged.

The big news is that this does not have to stay the same… and the people you have worked hard to attract, train, trust and give responsibility too, will stay and love being part of your team.

It’s not expensive, and it’s fun for them and for you too if you want it to be.

Naomi Simson
Chief Experience Officer
www.RedBalloon.com.au

Publishers note:

My thanks to Naomi Simson at Red Balloon Days for her article

Pete Jeans CEO
at business transformation company SMO Sydney

Hats off to DSRD in NSW...good value for SME's

The NSW Dept of State and Regional Development are hosting value-packed functions and forums for SME's during September.

I've been to a few and they are good value for small-to-medium sized enterprises who are keen to review best-practice issues and network with other sector leaders.

You can search their programme of events by clicking the link below.

NSW Small Business Month

Cheers!

Pete Jeans CEO SMO Sydney

Email Pete Jeans or click on SMO Sydney to learn more about our experience and advantages

Forward this article to a colleague by clicking the email icon below.

Strategy preparation and development...key platforms

In my opinion for most organisations, strategy preparation must include...

board consensus on strategic direction ( preferred markets and RONA benchmarks )
adoption of an agreed strategic planning process ( thorough and robust )
adequate timeframes for strategy development ( less than 8 weeks is unrealistic )
agreement that the strategy implementors will be the strategy developers
final draft strategy reviews by independent commentators ( not expensive )
selecting and defining appropriate market share measures

Strategy development should consider...

facilitation of the process by a skilled strategic expert ( to pinpoint compelling issues )
acceptance that the focus should be on meeting customer needs ( current and new )
a profitable exit from non-core activities ( non-core dilutes your opportunities )
evaluation of the business portfolio value & potential to throw off incremental cash
understanding the key drivers of demand ( what happens if they change? )

What else is key in your space? Email me here so I can add to the list.

Cheers!

Pete Jeans CEO SMO Sydney

Email Pete Jeans or click on SMO Sydney to learn more about our experience and advantages

Forward this article to a colleague by clicking the email icon below.

What information do you need...or what do you need to buy?

One thing that happens all the time in my space as a specialist in business transformation, is that clients and network contacts call me to track down strategic information.

It's part of the value we add...so we're happy to recommend others we know well.

Whether it's a new supplier, an agency, market reports, a high level corporate contact, a business for sale...you name it...we can get it...or know someone who can help...legally and ethically.

Do we charge for this service? No.
What do expect in return? Nothing.
What do we get out of it? Word-of-mouth referrals for future business.

Contacts are everything. What do you need? Click here to email me

Cheers!

Pete Jeans CEO SMO Sydney

Email Pete Jeans or click on SMO Sydney to learn more about our experience and advantages

Forward this article to a colleague by clicking the email icon below.

Researchers set new telephone interviewing codes of practice

Australia’s two peak market research industry bodies - AMSRS and AMRO have got together to jointly launch a public awareness message called "Your Views Count"; supported by a best practice toolkit for the research industry for telephone interviewing, called LIST.

The Objectives of LIST are to:
• ensure that respondents have a consistent and pleasant experience when interviewed by genuine market research companies.
• ensure that the requirements of the Privacy Code are met.
• ensure all industry members use best practice approach to telephone interviewing.

Additionally, a website has been created http://cms.yourviewscount.com.au/ to support both the general public and the research industry in making sure that the general public is fully informed about the importance of participating in research, and is able to differentiate between genuine research and telemarketing.

Greg Wayman, President of the Australian Market & Social Research Society, said “A leaflet called “A consumer’s guide to identifying legitimate research” can be downloaded from the website, and advises how to identity legitimate research; answers frequently asked question such as “how did they get my phone number?”; and provides examples of how public opinion, through research, has shaped government and social policy making.

It also explains how the industry’s Surveyline can assist members of the public to check that the company calling them is, indeed, undertaking genuine research. The Surveyline number is 1300 364 832”.

My thanks to Ben Harvey at AGSM for letting me know about this worthwhile initiative.

Cheers!

Pete Jeans CEO SMO Sydney

Email Pete Jeans or click on SMO Sydney to learn more about our experience and advantages

Forward this article to a colleague by clicking the email icon below.

Organisations that measure regularly, manage better

Measuring performance across key result areas means managers can act quickly on emerging trends to correct or capitalize on their initiatives.

Whilst selection of key performance indicators ( often called a suite of metrics ) is not new, the presentation and distribution of these metrics ( often in graphical format ) through your intranet has gained a new description called “dashboards”.

In the spirit of continuous improvement or other practices like “balanced scorecards”, dashboards give managers a regular update on where the organization is heading against key objectives.

And that is the key…selecting key result areas and setting key objectives first.

Thereafter it’s about defining the KPI’s and putting processes in place to collect and analyse results on an ongoing basis.

Metrics assessment must have a long-term commitment because any short-term exercises will only be relevant to the programmes “today” rather than the organisation’s future “tomorrow”.

Hence, KPI’s must be relevant to the organisation’s strategic plans and go-forward programmes.

Cheers!

Pete Jeans CEO SMO Sydney

Email Pete Jeans or click on SMO Sydney to learn more about our experience and advantages

Forward this article to a colleague by clicking the email icon below.

Strategy, structure and great people is what matters most

The ceo's vision and brand initiatives for the business; building effective relationships with stakeholders up and down and across the organisation… and getting KPI results against agreed targets in key result areas are key imperatives for leaders today and tomorrow....so some of my contacts say. I'm sure you agree.

Best-practice processes to understand demand/market opportunities and risks... and persistent implementation of innovative solutions to meet stakeholder/consumer needs follows...it is hard yakka...but nothing that works was ever easy.

Brand positioning and value propositions that connect and motivate buyers... fall out of these processes to generate future nett cashflow growth. It's hard to pay regular dividends without it.

But structure is important too.

Go-forward team structures that create capability in key result areas; communicating clear direction and accountability… and coaching staff to depend on each other...encourages effective and positive team cultures.

Leaders lead teams from the front…and don’t generally interfere operationally… unless it’s necessary. It is what we respect.

Which leads me onto people issues....the right people with the right skills and potential in the right roles takes time...but is always worth it.

Robust strategy, excellent execution and customer service as well as measurement and innovation. It is what matters most.

Cheers!

Pete Jeans CEO SMO Sydney

Email Pete Jeans or click on SMO Sydney to learn more about our experience and advantages

Forward this article to a colleague by clicking the email icon below.

Are your hands tied often because information delivery is poor?

How often have you felt frustrated because the time gap between an event and the need to act is shorter than the required information delivery period?

Plenty, I'll bet. It's often caused by the inflexibility of systems or shortfalls in planning and preparedness.

If this is the case, it's probably time to undertake a business plan review.

Not a corporate plan or a strategic plan ( although some business plan elements may be strategic ); but a thorough audit of stay-in-business systems and processes which capture,embed and deliver information up and down and across the management and operational team matrix.

In my opinion, it's best to start with the information users. Ask them to prescribe the "must have's" and "would like to have's". Collate it all and turn it over to a systems expert to translate it into a new system specification.

Then you can tender the spec for indicative costs, timeframes and payback value. And get rid of the frustrations!

If your information delivery is best-of-breed, your competitors will have a disadvantage.

Cheers!

Pete Jeans CEO SMO Sydney

Email Pete Jeans or click on SMO Sydney to learn more about our experience and advantages

Forward this article to a colleague by clicking the email icon below.

Knowledge management is more than protecting your IP

There's no doubt that intellectual property (IP) is extremely valuable. But it's more than trademarks and business secrets.

Many organisations document and archive their processes and records in retrieval systems that allow heirarchial access for managers and staff.

But many don't do this thoroughly on a regular updated basis. And when stuff can't be found or is lost through staff departure or lack of documentation, the true value of knowledge management comes home to roost with a thud!

So what's most important to protect from loss or unauthorised variation by users?

It depends on your organisation...but the basics in my opinion are:

operational processes in which much of your costs are vested
marks, registrations, certifications and other requirements which require renewal
websites, visual standards consistency across promotional collateral
OH&S practice, environmental compliance practice
HR practice
Customer service standards
Records
and the big one....a practical but standardised protocol for email directories

So, is an organisation-wide knowledge management system expensive? That's up to you. Usually, these things are tendered...so once you've made the decision to proceed, the value ( not the expense ) becomes obvious.

Cheers!

Pete Jeans CEO SMO Sydney

Email Pete Jeans or click on SMO Sydney to learn more about our experience and advantages

Forward this article to a colleague by clicking the email icon below.

Stakeholder communication is key when transforming

Most of us are pretty good communicators. But during the process of transforming your organisation to be stronger, more viable and effective, the communication process to stakeholders must take on more importance.

That's because everyone has a stake in change...they're impacted by it..and they want to know you recognise that they're part of it...and have much to contribute.

Customers, bankers, advisors, staff, directors, suppliers, regulators, media, shareholders, owners...all need to be kept in the communication loop regularly.

A simple email-delivered project update newsletter can achieve all this....if you have to deal with communication scale challenges.

And of course, there's no substitute for a quick but effective face-to-face presentation on where we are going, how we're going to achieve our business transformation goals...and who are the key players and responsibilities.

It creates confidence and reduces uncertainty. It is uncommon sense.

Please let me know if there are some specific matters you'd like to discuss privately. Click here for my email details and please send me a quick note.

You can scroll down this page to find many other articles on matters about business transformation. And, if you'd like to join our free email distribution list for future articles, please email me with your contact details.

Cheers!

Pete Jeans CEO SMO Sydney

Email Pete Jeans or click on SMO Sydney to learn more about our experience and advantages

Forward this article to a colleague by clicking the email icon below.

Did you tune into Nightlife with Tony Delroy on ABC Local Radio on August 1?

Firstly, thank you to Tony Delroy and his team for inviting me onto the national ABC Nightlife programme on August 1 to talk about some of the key issues and principles in transforming small-to-medium businesses.

An audio file of this interview can be requested by contacting me here

And thank you to everyone who listened. I hope I added some value. Please let me know if there are some specific matters you'd like to discuss privately. Click here for my email details and please send me a quick note.

You can scroll down this page to find many other articles on matters about business transformation. And, if you'd like to join our free email distribution list for future articles, please email me with your contact details.

Cheers!

Pete Jeans CEO SMO Sydney

Email Pete Jeans or click on SMO Sydney to learn more about our experience and advantages

Forward this article to a colleague by clicking the email icon below.

For SME's, there should be only two growth issues...

Opportunities and risks are the two critical growth issues for small-to-medium enterprises. ( turnovers typically between $10M-$500M )

Firstly, where are the accessible market opportunities that could deliver superior profitable growth? Secondly, what do we have to do to build capability to exploit them?

Every opportunity needs to be judged against the payoffs of others. Some markets will be current. Some new. Each has costs, risks and rewards.

The trick is to assess them all competitively, strategically and financially in a realistic return-on-shareholders'-funds rank... to identify priorities.

Capability on the other hand is all about investing in the future. It will cover issues like people, distribution, product, manufacturing capacity, systems, customer service and developing sustainable competitive advantage.

Competitive advantage is usually those one or two issues that persuade buyers to prefer a particular supplier. This is not an academic concept. It’s real.

For example, many companies believe that their customers buy from them because of product quality, customer service, competitive pricing and on-time every-time reliable delivery. But when you analyse customers’ buying preferences by market ( and they differ by segment), often customers say these critical factors are a given today.

They often prefer a particular supplier because of the quality of the relationship and the value suppliers add... through understanding their customers’ business.

This is true competitive advantage…and keeps your competitors at bay.

Email Pete Jeans or click on SMO Sydney to learn more about our experience and advantages

Forward this article to a colleague by clicking the email icon below.

Brand awareness is good...as long as you convert sales leads

Building brand awareness ( created through advertising, promotion and publicity ) is an important activity...but it doesn't become a revenue driver until you can measure its results by segment on an ongoing basis. Then it becomes an asset.

Column centimetres of ads or press coverage is nigh on useless unless you are connecting with existing and new customers to capitalise on a wider market profile. So the leather has to hit the street.

If each rep is making two extra cold or qualified phone calls a day, that's 400 new sales suspects opportunities per year. Now your brand awareness strengths are being utilised.

One extra face-to-face presentation per week is at least 48 new customer connections per year. Do the math if you have a large sales force.

Connecting with new customers is an investment in your brand. To miss the opportunity to do so, is a waste of promotional funds.

But it is critical to measure brand awareness strength and relevance to current and new customers in specific market segments... compared to competitors.

Boards have a habit of wanting to know how their organisations are standing in the marketplace...and what their management teams are doing about exploiting their competitive positions...and converting awareness to profitable revenue.

Email Pete Jeans or click on SMO Sydney to learn more about our experience and advantages

Forward this article to a colleague by clicking the email icon below.

What is VoIP and will it lower telecomms costs?

Recently, I did a study on our telecomms costs to rationalise suppliers and streamline services.

What came out of it was the realisation that much of what is being talked about VoIP ( or voice over internet protocol ) is in fact accurate.

VoIP is the capability to use the internet to make phone calls at substantially lower costs. We reckon we can lower our total telecomms costs by at least 25%.

With decent broadband speeds and some low cost equipment, costs of our calls to mobiles drop by over 60%; STD call costs to major capital cities drop by 90% and our local calls are cheaper too. International calls have various cost structures...but 4c a minute is commonly quoted.

A VoIP techo told me today that it won't be long before we can buy a mobile VoIP handset that allows us to fully access internet-based telephony!

Email Pete Jeans or click on SMO Sydney

Forward this article to a colleague by clicking the email icon below

Market entry research costs are sunk...or are they?

When businesses transform their futures, new markets are often key components of their actions today.

But there's a reluctance in Australia in b-to-b sectors to invest in any ongoing market research...let alone market entry work.

In my experience, many organisations don't have the internal skills to understand and effectively manage an external research partner.

But this issue is not critical. It's a consideration..but shouldn't be a barrier to action.

A professional research organisation...accredited by its industry body...will provide the clarity, methodological process knowledge, project leadership and insights you need.

But back to the notion of..."are market entry research costs sunk?"

Absolutely not.

They're spent...but the value of any research is to reduce the risk. Knowledge is leverageable power and influence.

Better to spend what's needed ...rather than lose a lot in an enthusiastic but misguided jump into the deep end.

I would be looking for government subsidy support...which is available in some cases at both state and federal levels for eligible research.

The scope of research costs usually depends on the industry sector...its structure, channels, route-to-market options, geography, customer segments and competitor community.

But having said that, a good Australia-wide discovery-based research job to turn up public domain info shouldn't cost more than A$50k. And, most of the info you'll need is already published in part somewhere.

If you need to undertake primary research ( focus group work and representative segment surveying plus analysis ) reporting and peer reviews... the value escalates quickly.

But, that's the key issue...value.

Value is what you get from researching whether your proposed products and services are wanted by customers ...and can you make superior growing returns by entering a new market...compared to your current portfolio?

If the answer is no, don't do it. If the answer is maybe, do some more research. If the answer is yes, start building your strategies.

Market entry research improves the probability of returns on your capital. We do a lot of it.

Email Pete Jeans or click on SMO Sydney

Forward this article to a colleague by clicking the email icon below

It's not just about who you know...it's who knows you

The power of your network for getting things done is a given. But the real essence of network power is how you leverage it to get noticed by potential customers.

Who knows you...is a pathway to new opportunites...and your network can help expand your reach and profile tremendously at low cost.

Word-of-mouth referrals are usually credible and instantly pre-qualify your business as a short-listed potential supplier.

To prove this, send me a few paragraphs of why your business is different and better than your competitors...and I'll publish it. My networks will learn about you...and your network will expand.

Here's ours as an example...

SMO Sydney meets the needs of ambitious organisations for business transformation strategy and implementation. We are not consultants. We are hands-on senior management leaders.We work inside the business...with the teams...on the business.

We are different and better because our strategy processes are world-class. When we apply these to our wide and deep industry sector knowledge, customers benefit immediately because we know how to exploit their competitive advantage.

Send this to your networks...and we'll both benefit!

Email Pete Jeans or click on www.strategicmarketing.com.au

Forward this article to a colleague by clicking the email icon below

How vulnerable are we to business risks?

Part of what we do as leaders is to reduce risk. Improvements in mandatory and voluntary corporate governance and reporting obligations have contributed much to building shareholders confidence across many issues.

But in the process of transforming businesses, my opinion is that risk reduction audits should be prioritised in the key result areas...as well as the OH&S, environmental and corporate social responsibility areas.

Operationally, risk management should be an ongoing key imperative.

Reducing risks will deliver lower costs, improve efficiencies and tidy up the business in readiness for suitors when they make their approach. That's the value add.

We use a comprehensive organisational audit checklist to check a businesses' health. Built up over many years, it's also very useful in M&A situations or strategic reviews where discovery is critical.

Who wants to find out how vulnerable a business is at five minutes to midnight? Or a week out from a Board retreat to strategically assess the businesses' potential going forward?

Email Pete Jeans or click on www.strategicmarketing.com.au

Forward this article to a colleague by clicking the email icon below

We all have different business needs...

When we condense it all down, more profitable customers are the future lifeblood of business growth.

But the journey to that destination takes best-practice process, discipline, outstanding execution and time.

Without trying to second-guess anyone's needs, here's some of the product and service solutions that are key pre-requisites. Just click on the link below.

Product and service solutions

What are the useful sources for identifying new clients?

industry associations and their user groups
trade magazines in target markets
trade websites like http://www.ferret.com.au
your website's enquiry management processes
referrals from your existing customers and contact networks

Email Pete Jeans or click on www.strategicmarketing.com.au

Forward this article to a colleague by clicking the email icon below

Retaining a mentor...where's the value?

You're extremely busy. Half a dozen major projects are underway. Some of your teams are performing well...the others need help...but your resources are stretched.

Deadlines are approaching fast... and targets and deliverables must be met. You're going to make it this time...but you know there has to be a better solution next time.

That's the value of a mentor...best practice, guidance for teams who are struggling; a trusted third party with an objective view and hands-on implementation experience, a second opinion when the issues and facts are clear...but the options are ambiguous or not readily obvious.

Is retaining an external mentor cost-effective?

Compared to employing an expensive senior manager with a roving role who may not stay around; retaining a mentor can be very effective.

For a few thousand dollars a month, mentors can be pointed at specific projects. Their independence guarantees objectivity and a commercial focus on results.

Do I use mentors. You bet. No-one is an all-rounder. But Boards and senior management expect all-round performance and professional outcomes on-time every time.

Contact Pete Jeans at www.strategicmarketing.com.au

Forward this article to a colleague by clicking the email icon below

Organisations are renovating their brand positioning and market imagery...will you?

For a few months now, I've noticed that more organisations are reviewing their branding...and updating their logos, straplines and promotional positioning statements.

I suspect this is because we are at the mid-decade point of the business cycle...with the upside to come. This is certainly true of the housing and building products sector...one of the major drivers of the Australian economy.

Updating positioning at this time makes good business sense....but good business process is essential to get it right...relative to competitors' offerings.

And, it's not an expensive process.

If brands are a promise to buyers of the benefits and values of your products and services...and the strength of a brand today and in the future is a building block for future nett cashflow ( free cash or nett profit before interest and tax ); then brand evaluation and strengthening techniques now are very worthwhile.

I use a simple Brand Wheel Analysis process to get a good handle on where we are today and where we want to develop our brand to make us sustainably different and better in customers' minds.

There's a generic template below which is often useful. Follow the steps....but use an experienced facilitator to extract the value from management teams' participation.

Generic Brand Wheel Analysis template

Contact Pete Jeans at www.strategicmarketing.com.au

Forward this article to a colleague by clicking the email icon below

Three ways to lift your margins

Someone asked me not long ago how they could quickly lift and sustain their operating margins in the face of strong competition.

So we did some work and three imperatives emerged...

conduct an undiscounted revenue and margin analysis by segment to identify the pricing and terms areas where discipline was loose

market and sell more higher margin products and services across existing segments where the competition's value proposition was poor or had clear opportunity gaps

evaluate the strategic worth of direct distribution of low contribution products and act on the results

Whilst this is not specific advice for your business, it has some merit across many enterprises.

contact Pete Jeans at http://www.strategicmarketing.com.au

Forward this article to a colleague by clicking the email icon below

Is the time right to acquire a competitor?

Many industry segments in Australia are fragmented... and growth via merger or acquisition is a key option. Even ologopolistic markets offer the same opportunity.

Why would you consider it just at the moment?

Well, the economy is in good shape. Inflation and interest rates are relatively stable, loan capital is arguably readily available and industry structures are ripe for transformation after a long period of little change.

Because major competitors appear to have consolidated their positions and have access to cash for defence, smaller players may have to get together to go forward on a sustainable viable competitive basis.

Or can they stand in the face of stronger larger competition and enjoy comparable margin rates in the forseeable future?

I doubt it long term.

What can you do quickly and at a reasonable cost to identify merger and acquisition opportunities in your market?

Ignoring the fact that you understand your competitors by market segment ( many don't ) , the first strategic step is to construct a market map.

This market mapping approach identifies the channels and route-to-market by segment...and pinpoints which competitors have greater influence.

Thereafter, I believe it's about identifying the potential value-add of bolting two organisations together to strengthen the overall value proposition and to release cost synergies.

At the beginning and at the end of the day, it has to make market sense as well as ensuring your survival.

contact Pete Jeans at http://www.strategicmarketing.com.au

Forward this article to a colleague by clicking the email icon below

Is innovation in corporate Australia alive and well?

No.

Just about every function I get to...or meetings with leaders,
people are saying...where is the innovation in Australian business today?

I have to agree with them. Apart from innovation in technology applications (blogging, podcasting and some interesting stuff at the recent Cebit exhibition in Sydney, ) not much has changed in business process the last few years.

Organisational churn goes on... and I wonder whether this is one of the central reasons that is stymie-ing corporate Australia's future development and competitiveness?

If you measure innovation generally as a consumer or a b-to-b end-user... by the number of times we switch brands, innovation is close to comatose.

Or is that because the corporate sector's marketing efforts are so good, brand switching is not an option? I don't think so! It's just that there's no new options coming through.

The organisations I see that outstrip their competitors time and time again, year after year, have innovation as a core value....and a core activity...supported by substantial investment and independent reporting lines to senior management.

But, to say that these practices are widespread, would be wrong. They are not.

So what should we do about it?

Innovate. Make innovation the reason that people keep their jobs. Develop new budgets that have high proportions of new revenue and EBIT specifically linked to innovative products and services.

Where do you start? Probably at senior management level first.

What do you do? Get some advice from leaders who have trod the innovation path successfully.

Who are they? I know a few.

Check out http://www.strategicmarketing.com.au

Forward this article to a colleague by clicking the email icon below

Key result areas ...are you focusing closely enough?

Business Transformation in Australia is probably Australia's only serious business blogsite...created specifically to encourage businesses to become more competitive.

I believe key result areas that really matter are...

Profitable customer growth
New product and service development
Knowledge management
Market intelligence
Information delivery
Talent development
Organisational culture
Stakeholder support
Financial performance
Regular planning and measurement

Why is this suite of KRA's so important? Because they're all related. Selecting one KRA is inadequate. Selecting a few is inadequate. Choose them all and you choose your future.

Profitable customer growth...new customers should mean new free cashflow. If they're not profitable, don't do it. If you're not sure which new customers are worth pursuing, find a way to measure current customer profitability.

New product and service development...markets evolve constantly. Do you want your customers to believe that your competitors are in front in the new offerings stakes?

Knowledge management...when one analyses the critical factors why customers prefer one supplier over another, it's usually about the business improvement value you transfer to them. That means it is absolutely essential to protect your strategic intellectual property and operational processes from potential loss as you experience staff churn.

Market intelligence...first-to-market advantage provides a clear competitive edge. Do you want to be second or third or worse because your operational priorities are prejudicing an opportunity to regularly scan what's happening in the markets you're interested in?

Information delivery...poor information access and slow delivery costs everyone. Great information capability creates new cashflow opportunities and saves money. It's as simple as that

Talent development...in my opinion, it's best to hire staff with the best potential...and then develop them. If you hire the best...it'll cost a premium...and sooner rather than later, someone will pay more...and you're back to square one...often before they've delivered

Organisational culture...in my opinion, organisational cultures directly reflect the management style and attitudes of the leader. It is a key result area because key results are driven from the top. So it makes sense to meet your competitors' leaders so you can understand the dynamics behind your opposition's culture. Every general in history wanted to know who they were up against...to exploit their weaknesses.

Stakeholder support...stakeholders influence the provision of funds...intellectual or cash. Whether they're investors, creditors, advisors, staff and customers...they all need to be on-side, engaged and fully informed. Are yours?

Financial performance...it's a given...cash, creditors and customers...in my view, robust systems are mandatory to manage history and your transactional future

Regular planning and measurement...if you can't measure...you can't manage. So plan first and measure often

Check out http://www.strategicmarketing.com.au

Forward this article to a colleague by clicking the email icon below

Considering the overall performance of your organisation this year...

With the year end approaching and most of us involved in strategic reviews, here's a few acid questions worth thinking through.

On a scale of Excellent Very Good Good Fair Poor

Is?

profit growth this year better compared with the average of the last 3 years growth

growth in new customers stronger compared to last year

contract or tender win %’s better than last year

the ratio of sales to employees increasing Vs last year

the reduction in costs better than last year

reduction in staff turnover better than last year

the regular introduction of new products strong enough

the introduction of innovative services on target

customer satisfaction better than last year

the quality of relationships with stakeholders better

the company's agility to change improved

the effectiveness of the promotional activities to generate leads on track

the quality of marketing support materials adding value to customers

If your gut feel or evidence suggests the answers are unacceptable, I suggest you get the best possible help quickly...and feed it into your strategic review processes.

Check out http://www.strategicmarketing.com.au

Forward this article to a colleague by clicking the email icon below

To outsource...or not to outsource?

On this Anzac weekend, I've been thinking through the potential of outsourcing.

It used to be that organisations rejected out-of-hand any outsourcing of strategic activity.

That's now passe`.

With the lack of experienced talent bemoaned regularly by CEO's, organisations today are far more open to partnering with external resources to get the bang-for-the-buck results.

And that means outsourcing is in...and here to stay....across any business discipline.

For the last few years, I've outsourced segmentation analyses, financial services, legal, IT, lead generation, training, marketing services, recruitment... even strategy mentoring...all with outstanding early results.

Why?

Why not work with the best externally? ... on a value-for-project-basis...when you can't afford the search, availability leadtimes and costs of hiring a world-class internal leader?

It is smart thinking.

We are chasing the best possible result...so contract in the best.

I believe it does cost less in the short and long run.

Let me know if you have a need for a particular situation that your current resources can't meet. Maybe we can help. Email links are in my profile or click here

Check out http://www.strategicmarketing.com.au

Forward this article to a colleague by clicking the email icon below

Manufacturers to focus on product development

Released last week, the Australian Industry Group's Survey on Manufacturing Futures says companies are very likely to pursue strategies to gain greater income from new products.

I suspect this is a reaction to intense competition from low cost countries.

If this is true, manufacturers will need to adopt two initiatives.

Firstly...their market and customer scanning methodologies must be robust to identify unsatisfied needs.

And of critical importance, they will need to invest in product development processes that deliver products and services that stand up to the competitive challenges of lower cost good quality imports.

I constantly hear stories from companies that have been battered by cheaper offshore products.

The reality is that they have largely allowed themselves to be beaten because they have not reinforced their value proposition in their customers' eyes.

Product development is a natural reaction to expand a range offer at a lower cost to meet competitors head-on...but when you survey closely, cost is not the prime reason for choice.

Fit-for-purpose products, technical advice, on-time every-time delivery reliability and whole-of-life value appear to be the key components of supplier choice.

So, if product development is a key intention by the manufacturing sector...remember...is there a need that can be sustainably fulfilled on a viable basis?

Use professional resources to help you develop those products and position your value proposition uniquely in the minds of your buyers.

Check out http://www.strategicmarketing.com.au

Forward this article to a colleague by clicking the email icon below

Why do we put up with lousy customer service?

Driving back from the bush last weekend, I had a few hours to think about business transformation issues that seem to have unjustifiable low priorities.

The issue of lousy customer service in this country kept on coming to mind.

At retail level, how often have you heard the one-liner from salespeople...."are you right?"

Tempted not to reply..."most of the time!", we are kind enough in Australia to forgive businesses the cardinal sin of not training their front-line staff at professional service standards.

This is not just true of retail, but relevant also in b-to-b enterprises...which allow their reputations to be diluted through inadequate customer service skilling.

It's a fact that when you come across an outfit that has invested in people who are representing them professionally, that they stand out in your mind...relative to others in the same space.

If it was rocket science, I could understand the difficulty in the challenge...but it's not difficult to be better and different when customer service training is pretty straightforward.

I suspect that part of the answer lies in whether or not organisations understand that a successful CRM process first starts with professionally trained teams who have better skills than their competitors.

Some operators encourage their senior staff to get in the front line with customers regularly to review systems and processes. That's impressive. Buying from competitors makes sense too so that one can assess their practices and skills.

Others don't let new staff face customers without thorough induction, training, interim supervision and mentoring. That's equally sensible.

So, apologies for the rant...but I never want to hear..."are you right?" again.

I want to hear my voice responding to a series of questions from a skilled representative that solves my needs.

Don't we all?

Check out http://www.strategicmarketing.com.au

Forward this article to a colleague by clicking the email icon below

MI and CI...the best sources are free and close to you

Market intelligence and competitor intelligence processes do not necessarily have to be complex...but they must be thorough and ongoing.

If the essential purpose of MI and CI is to gauge competitors' effectiveness in your marketspaces, your customers will be an invaluable source of perceptions of competitors...and their activities.

Why?

Your competitors have more interaction with your customers than you have with your competitors.

Of course, you have to do the omnibus and applied research, desk research, industry reviews locally and offshore... and competitors' ex staff debriefs, but a close relationship with leading customers and new prospects will give you insights into your competitors' strategies and effectiveness.

Your competitors are probably using your customers to check your organisations performance and identify your weaknesses.

Shouldn't you be doing the same and more... to outmanoeuvre your competitors?

Check out http://www.strategicmarketing.com.au

Forward this article to a colleague by clicking the email icon below

Too many KPI's can deflect your aim

I come across many organisations without adequate KPI's in key result areas.

But in those outfits that have adopted performance metrics, some have fallen for too many KPI's.

The trap lies in the fact that multiple KPI measurement requires considerable ongoing investment in the process...and that has a tendency to deflect management's attention from the real game of progress.

The trick with adopting key result areas and KPI's is to start at Board level.

A few strategic metrics which highlight go-forward progress in a competitive context, makes sense.

Thereafter throughout the organisation, line management can implement specific subordinate KPI's which feed into the Board's regular reviews.

If you try and measure everything...productive time in the marketplace will be prejudiced.

Check out http://www.strategicmarketing.com.au

Forward this article to a colleague by clicking the email icon below

The common causes of business stagnation...

are outdated strategies, missed opportunities, management inconstancy and ineffective marketing and support systems.

Putting that in context for business growth...

At a simplistic but relevant level, there are only two issues.

Firstly, where are the accessible market opportunities that could deliver superior profitable growth?

Secondly, what do we have to do to build capability to exploit them?

Every opportunity needs to be judged against the payoffs of others.
Some markets will be current. Some new. Each has costs, risks and rewards.

The trick is to assess them all competitively, strategically and financially in a realistic ROSF rank to identify priorities.

Capability on the other hand is all about investing in the future. It will cover issues like people, distribution, product, manufacturing capacity, systems, customer service and developing sustainable competitive advantage.

How do you develop competitive advantage?

Competitive advantage is usually those one or two issues that persuade buyers to prefer a particular supplier.

For example, many companies believe that their customers buy from them because of product quality, customer service, competitive pricing and on-time every-time reliable delivery. But when you analyse customers’ buying preferences by market ( and they differ by segment ), often customers say these critical factors are a given today.

They often prefer a particular supplier because of the quality of the relationship and the value suppliers add...through understanding their customers’ business.

This is true competitive advantage…and keeps their competitors at bay.

Check out http://www.strategicmarketing.com.au

Forward this article to a colleague by clicking the email icon below

What is business transformation all about?

It's a process that powers up your business across all the key result areas...so that you're outperforming your competitors on an ongoing basis.

It relies on implementation of effective market and stay-in-business strategies that attract more profitable customers in selected markets... and lower operating costs.

How do you know you need to transform your business? Ask yourself...

Are we throwing off adequate free cash to reinvest in opportunities as markets evolve?
Is our performance superior to major competitors in key markets?
Is our competitive advantage strong enough to leverage more customers and more business from existing customers going forward?

If the answers to any or all of these critical issues are doubtful, you need to change your approach. If you don't, your competitors will change your life for you.

Check out http://www.strategicmarketing.com.au

Forward this article to a colleague by clicking the email icon below

Prediction: Websites will morph into blogsites. Why?

Recently we've noticed an emerging trend.

Websites are becoming more interactive.
This is the principle behind blogsites...so visitors can have a conversation before buying.

We all do this in the face-to-face world...so why should it be any different in the on-line space.

Organisations that face their markets with website sales propaganda and defacto brochureware should be wary because competitors that encourage interactivity and buyer connectivity will have a clear advantage.

Already on-line buying sites allow purchasers and sellers to chat prior to transaction completion. Financial institutions have member chat rooms. Professional services websites publish integrated blogs.

The business world is recognising two-way connectivity at an accelerating rate.

Those organisations that manage scale of website visitation or response through traditional contact forms are planning a frustrating competitive demise. Extraordinarily, some websites don't even publish contact names and email addresses!

Check out http://www.strategicmarketing.com.au

Forward this article to a colleague by clicking the email icon below

Integrated strategic processes are mandatory

Accelerating globalisation and the resultant competitive impacts have changed the face of business in the Pacific Rim region

The traditonal kitbag of strategic analyses tools (like SWOT analyses) used by many for so long are largely redundant without a customer-centric view.

The inter-dynamics between customers, markets and competitors today have become so complex that new integrated strategic processes and systems are mandatory to clarify compelling issues, costs, payback and ROSF.

No wonder EVA and SVA and their derivatives have become popular with corporates whose access to and cost of capital has to have a superior return on any strategic project.

But there’s more to strategy development than throwing consultants with laptops at internally focussed projects to benchmark divisional performance.

In fact the essence of good strategy development is building a collaborative internal/external team... to build a defensible case to achieve agreed objectives...often in fierce competitive circumstances. This takes time and should not be rushed.

Focusing outwards is a good start. Understanding customer needs and developing realistic and achievable ways of satisfying their expectations is a great start.

Check out http://www.strategicmarketing.com.au

Forward this article to a colleague by clicking the email icon below

Competitors...who are they really?

Competitors seem to be everywhere.

But when you closely define your customer needs, there are often not many competitors that matter in the market segments where growth and better profits are available.

That means you can focus on understanding those few competitors whose market positioning is closest to yours...where the competitive risks and opportunities lie.

Critique their offers and service levels. Buy from them…you’ll quickly find out how they perform versus the value you offer your clients.

Review their promotion, brochures, websites, pricing, distribution alliances, packaging, public records, publicity...

Review everything you can....relative to what you do...and then improve your offer.

Remember, they’ve probably done exactly the same for all of their competitors…including you.

Now you can focus on your customers…knowing truly who your competitors really are.

Check out http://www.strategicmarketing.com.au

Forward this article to a colleague by clicking the email icon below

Product development sounds easy…

but there are some traps to avoid.

Product development has its risks.

But a well-planned process can help avoid the traps of cost-over-runs and late market entry.

Traps include inadequate scanning of future customer needs, poor product development resourcing and project management shortfalls.

Regular customer focus group exercises should alert you to unsatisfied needs.

Overseas trade exhibition and conference visits…will alert you to emerging trends and new product solutions. As will competitor intelligence programmes.

Product development resourcing costs money. So start a cost-centre and allocate some funds each month.

Project management is critical…because many people will need to be involved. Get an on-line product development management system…so anyone authorised… can get inter-active.

Communication will improve and risks should reduce.

Remember, product development never stops...because customers needs are ever changing.

Check out http://www.strategicmarketing.com.au

Forward this article to a colleague by clicking the email icon below

Strategy planning is the hardest thing you’ll do…

Strategy development is the toughest work you will do... because it’s hard to be objective when you’re operating your business closely. Customer needs research must come first.

You must understand what drives buyer needs and demand…maybe its land taxes, product obsolescence, demographic changes, technology substitution…or peer group pressure.

Find out before your competitors. And exploit your new strategic knowledge.

Research comes before strategy. Use focus groups. Buy industry research. Ask your customers. Monitor your competitors’ initiatives.

Travel overseas to check trends. Join an industry association. Scan the web.

Once you know what your current and potential customers want, strategy planning can proceed with confidence…so your hard earned or borrowed capital can be invested at acceptable risk.

Check out http://www.strategicmarketing.com.au

Forward this article to a colleague by clicking the email icon below

What's the most appropriate business model?

To take your organisation forward....what makes sense?

Is it franchising, low cost producer, single product focus, limited segment portfolio, online transactions, premium service?

There's plenty of confusion about what a business model actually represents.

I believe at a simplistic level, it's the customer engagement architecture and systems-support you should adopt to keep costs at a competitive level and keep customers coming back for more.

It's an issue that falls out of a strategic process to understand your organisation's capability
to generate and deliver superior returns to shareholders.

Firstly, where do you sit in the route-to-market channel map?

Depending on whether you're involved in manufacturing, wholesaling, distribution, retailing, advisory or even regulation, each structural position and level of influence will have different cost and profitability metrics.

Secondly, what is your relative competitive position in that channel?

Is the competitor community characterised by large numbers of minor players who scrap to survive at the expense of margin and EBIT...or are you part of an innovative small group of suppliers who are striving to differentially meet customers' emerging needs at premium rates?

The competitive context will very much determine the business model options available to you going forward.

Thirdly, what are your customers' future needs?

If your customers' future needs require new solutions...or needs of future customers can't be satisfied by what you're doing now...you may be facing a paradigm change in your current business model.

Stack your business model full of best-practice, fantastic people that will lead you one day and research and development programmes that never stop.

And remember to tell everyone why your business model engages and satisfies customers better than anyone else.

Check out http://www.strategicmarketing.com.au

Forward this article to a colleague by clicking the email icon below

Getting and keeping profitable customers ...

should be your only goal…but how do you do that?

Every business has customers from different market segments.

And…each customer often buys different products and services.

So the best approach is to segment your customers into groups with similar needs.

Then you can simply see what they buy… and what profit they generate and what it costs to service them…now…and in the future.

Allocate your best sales people to new customers in the most profitable product segments….

Find lower cost ways to service marginally profitable customer groups…for example…via your website…or through distributors.

And develop new products at lower costs…so customer profitability can improve.

Check out www.strategicmarketing.com.au

Forward this article to a colleague by clicking the email icon below

Great leadership...

Much has been discussed and written about great leadership.

In Australia, outstanding leaders I know have several common qualities...

they cut through complexity to identify compelling issues...and communicate effectively
they hire people who have better talent development upsides than themselves
they have fantastic people skills
they are focused on key result areas and utilise KPI's to measure performance against competitors
they're experts at conflict resolution
they know exactly when and how to refine strategy ahead of the market

Check out: http://www.strategicmarketing.com.au

Forward this article to a colleague by clicking the email icon below

Strategy truisms...

Strategy development is the toughest work you will do.

The business of any business is getting & keeping profitable customers.

Effective strategy typically takes about 18 months to deliver on-target results.

Market-based strategy must be supported by internal business strategy processes/systems/people development and lower costs.

Critical issues...

great leadership... and executive team buy-in

knowing your customers better... than competitors do

best-practice processes that meet delivery goals on-time on-budget with everyone on-side

the right people with the right skills, attitudes and potential... in the right roles

Check out http://www.strategicmarketing.com.au

Forward this article to a colleague by clicking the email icon below

Effective strategy for lower handicaps…

in golf and business... what’s critical?

staying on the fairway
knowing your average shot length for every club...plus the likely shot length-impact (in metres) of slope/wind/course conditions
staying within your capability...not over-hitting or trying that miracle shot
judgement on club selection... given the shot goal and conditions or circumstances
controlling the swing to a consistent repetitious standard
course/hole knowledge
if you need advice or training, see your local golf professional first

In business…critical issues include:

great leadership
development of effective strategy that meets customer needs better than the opposition
knowing your markets better than competitors
the right people with the right skills in the right roles
measuring an appropriate suite of KPI’s
best-of-breed organisational systems

Check out http://www.strategicmarketing.com.au for an outline of this latest e-book on
Effective strategy for lower handicaps…in golf and business

Forward this article to a colleague by clicking the email icon below

Need strategic clarity in complex markets?

Medium sized organisations ($50-500M revenue ) that don't have well-defined business and marketing frameworks or infrastructures should be reviewing the EXMAR strategic planning process.

Because EXMAR turns data into information better than any process, managers can now make better strategic decisions. Marketing initiatives are better developed with resulting improvements in desired outcomes.

Exmar quickly delivers new profitable growth solutions with its integrated approach to defensible strategy development. It’s best-practice process…essential for Australia’s increasingly competitive markets.

EXMAR's integrated marketing planning process and software support tools also generates thousands of dollars in productivity improvements and automated documentation every time you develop strategic plans.

In place in 40 countries and across something like 500 companies; EXMAR is used by many major organisations to re-position their strategies for the new globalised business environment.

EXMAR is strategic marketing planning competitive advantage in its own right."

Organisations can review the EXMAR Process by contacting SMO Sydney.

Check out http://www.strategicmarketing.com.au

How healthy is your business?

To survive, you have to grow. To grow you have to compete. To compete you have to be healthy.

Why?

It’s likely your competitors are striving to be agile, flexible and superior to meet customer needs in fast-changing markets.

What’s your organisation’s current competitive position against your major opponents in each major segment and key result area?

UNSURE? UNCOMPETITIVE?

ABOUT THE SAME?

COMPETITIVE, SUPERIOR AND SUSTAINABLE?

Ten key transformation result areas make your organisation a powerhouse performer on all critical levels...read on...

1. Profitable customer growth... characterised by profitable new customer acquisition, service and relationship programmes and customer attrition management processes.

On average, many organisations have 80% of their sales and profits vested in 20% of their customers. Depending on the industry sector, customer attrition rates can be in the order of 3-5% each year. Often more!

2. New product and service development... characterised by creative and robust innovation processes delivering on time on budget that meet customers’ current and emerging needs.

Typically, product innovation delivery takes 50% more time than expected and up to 300% of planned budget.

3. Knowledge management... characterised by Intellectual property, operational and compliance and human capital systems that are current, archived and distributable.

As simple examples, some organisations fail to adequately protect their trademarks and website domain names. Often, new employees are not inducted appropriately due to lack of systems. Departing staff are rarely de-briefed. Trades practices compliance training is more common nowdays but not universal.

4. Market intelligence... characterised by systematic collation and analysis of consumption, competitor and emerging trend data to ID strategic information.

The key to market and competitor intelligence is to focus on main and emerging markets segments and only collect and analyse data that relates specifically to the critical factors that customers use to determine supplier choice. The trick is to allocate resources, tools and budgets to turn data into strategic information which business converters can use to win more profitable business.

5. Information delivery... characterised by IT systems meet user, currency and preventative risk demands.

Information today exists in an on-demand environment. That means any-time anywhere. Remote data access is a key demand and in some instances, not well handled nor delivered.

6. Talent... characterised by staff and management talent (with strong upside potential) are performing above expectations in critical competitive comparable roles.

Organisations today are myopic in their attitudes to talent recruitment. Consequently, as businesses evolve, the talent pool has costly churn rates and suffer from limited promotability.

7. Organisational culture... characterised by work/life balance values are respected and integrated in a widely agreed clear corporate mission.

Culture embodies work ethics, corporate behaviour, respect for colleagues and stakeholders, attitudes to work and life balance values as well as performance standards. Whatever your corporate cultural goals, leadership on these issues has to start with the Board and led by the CEO and the leadership community at all organisational levels

8. Stakeholder support... characterised by effective interface with stakeholders and shareholders to maintain support.

Communicate regularly and openly or suffer the consequences of rumour, innuendo and unexpected withdrawal of support.

9. Financial performance ... characterised by consistent superior positive cashflow returns against forecasts.

Superior financial performance will usually be the prime outcome of superior customer-centric strategy and a balance of strong control and entrepreneurial leadership and flair.

10. Regular planning and measurement... characterised by reviews of plans, opportunities and risks plus effective implementation processes…all measured by appropriate Triple Bottom Line metrics.

KPI’s are commonly covering financial, community (customer and stakeholder) and environmental key result areas nowdays.

To check your transformational potential, score each issue with the scale below to assess your organisation’s current status in key areas...against your competitors!

Score

UNSURE 1
UNCOMPETITIVE 2,3,4
ABOUT THE SAME 5
COMPETITIVE 6,7,8
SUPERIOR AND SUSTAINABLE 9,10

Now...does your organisation stack up against your key competitors?

Check out http://www.strategicmarketing.com.au

Being different and better attracts customers…

simple cost-effective ways to find out how!

Competition is tough and changes often…just like customers’ needs.

That means you must continually assess your own competitive position…to stay different and better!

Ask your customers why they prefer to deal with you.

Contact lost customers and find out why they now buy from others.

Liaise with your local university research faculty to arrange market survey exercises

Use your website and email database to generate feedback

Run a prize-based promotion to identify unsatisfied customer needs

Ask your suppliers, contacts, staff. Ask everyone. Track the responses. Being pro-active works.

If you don't ask...no-one will tell you!

Check out http://www.strategicmarketing.com.au

Great lighting & merchandising sets you apart…

but customer service keeps them coming back!

Leading retailers make sure their shopfronts and floorplans are bright and beautifully dressed.

They’ve got the honey… and like bees, we’re attracted to well-lit outlets.

But once you’re inside, it’s the service you didn’t expect… that makes you go back again and again.

The secret is carefully selected and well-trained staff… who empathise with your customers, identify their needs and sell solutions to their problems.

The essence of great customer service is a genuine smile, careful listening, great product knowledge, care and attention and a nice thankyou… before you ask them if there’s anything else they need.

Some people are better in front of customers than others. It’s a matter of style and attitude. So pick your teams very carefully.

Check out http://www.strategicmarketing.com.au

Generating word-of-mouth is your best strategy...

and customers are your best source!

We are all bombarded by so much media today that people rely strongly on advice from friends and contacts when they’re ready to buy.

That means you must ensure every contact with customers and stakeholders is positive… so they can tell others why you’re better to buy from.

In fact, experts say that customers who have great experiences with organisations… tell at least six other people. I do.

So give your customers an incentive to do so. For example…

A large professional home construction company I know… had valuable success with a redeemable cheque offer when customers recommended new clients.

And, one of Sydney’s best new car dealers delivers their cars to customers wherever they want…. another will service your car overnight so you don’t have to pay for a loan car during the day.

Check out http://www.strategicmarketing.com.au

Only advertise a unique promise...

no-one should look or sound the same.

Every ad should have a unique promise AND offer…so you can differentiate your brand. You’re not the same as your competitors…so tell your customers why.

This approach should make you stand out …and focus on meeting your customer’s needs.

Then your advertising will be more effective and potentially generate stronger returns.

Ad offers will be unique when you focus the key messages on your unique strengths and benefits of your products and services....reinforcing the total value you deliver to customers!

Include details like pricing, technical support, delivery and customer service… that’s what makes your offer unique and potentially more powerful

Using a cut-through creative approach or customer testimonial…or a celebrity presenter…will also help your ads to be unique!

Check out http://www.strategicmarketing.com.au

Strong brands promise strong growth…

but how do you create and develop your brand?

Your brand should promise better and different benefits to your customers.

To do that, you need to understand customers’ needs very closely.

Talk to your repeat customers. You’ll find out quickly whether you’re meeting their expectations or not.

Organisations that meet customers’ needs build strong brands…because they’re delivering … better than their competitors.

The best brands create stronger sales and positive cashflow. And growth.

So what’s step one?

Step one… is find out what your current and potential customers think of your brand versus your major competitors. Then focus on your strengths.

Check out www.strategicmarketing.com.au

Business drivers.... just what are they really?

Business drivers are those fundamental issues that shape the opportunity for an organisations' future success…in job creation, business growth and returns to shareholders.

But there’s some confusion in the general business community.

Business drivers as a term, may mean different things to different managers.

For example, some have suggested that business drivers are financial KPI's that measure business health.

KPI’s do. But they’re not drivers of business wealth creation. They’re measures only.

Others might insist that operational performance guidelines are important. They are...but they don’t drive demand.

Business drivers do.

Marketers argue that business should measure customer acquisition rates and market share. So they should.

These are all valid measurement metrics. But that's all they are. They are NOT business drivers.

When management is strategically focused, business drivers at the highest level will incorporate issues around market attractiveness ( where should we concentrate our resources and people)...and competitive capability ( how do we develop sustainable competitive advantage in each market ).

Business drivers are opportunity and risk issues that surround you. Like...

cyclicity of markets ( boom Vs bust Vs or short and long term trends )

the rate of substitution of technology ( DVD's for VCR's for example )

market structure and consolidation opportunities ( supply chain efficiency/competitor performance

market growth and customer profitability

reduction of exposure or reliance on domestic or export markets

emerging suites of new customer sets and needs ( such as DINS- double incomes...no savings ).

regulation constraints ( like environmental compliance )

And so on...

Depending on your industry and circumstances, business drivers will differ... but often only marginally.

Identify them, build your strategies and then select the metrics to measure your performance relative to competitors in those key areas.

The business drivers' ultimate goal is nett cashflow...enhancing maximisation of the present value of future nett cashflows for our current and future market participation...and reducing the risk of not achieving those forecasts.

That's what shareholders want. That's what management should be focusing on...capitalising on business drivers to build shareholder value.

Check out http://www.strategicmarketing.com.au

Business Transformation in Australia...hands-on strategic information for leaders

Monday, October 23, 2006

SMO Sydney has moved its blog to http://strategicmarketingoutsourcing.wordpress.com

Sunday, October 15, 2006

Friday, October 13, 2006

Wednesday, October 04, 2006

Friday, September 22, 2006

Monday, September 18, 2006

Thursday, September 14, 2006

Monday, September 11, 2006

Sunday, September 10, 2006

Sunday, September 03, 2006

Monday, August 28, 2006

Friday, August 25, 2006

Monday, August 21, 2006

Monday, August 14, 2006

Thursday, August 03, 2006

Wednesday, August 02, 2006

Wednesday, July 19, 2006

Saturday, July 15, 2006

Sunday, July 09, 2006

Saturday, July 01, 2006

Wednesday, June 28, 2006

Sunday, June 25, 2006

Friday, June 16, 2006

Thursday, June 15, 2006

Sunday, June 11, 2006

Sunday, May 28, 2006

Friday, May 19, 2006

Sunday, May 14, 2006

Wednesday, April 26, 2006

Monday, April 24, 2006

Monday, April 17, 2006

Monday, April 03, 2006

Wednesday, March 29, 2006

Monday, March 20, 2006

Friday, March 17, 2006

Monday, March 13, 2006

Tuesday, March 07, 2006

Tuesday, February 28, 2006

Thursday, February 23, 2006

Sunday, February 19, 2006

Sunday, February 12, 2006

Tuesday, January 31, 2006

Thursday, January 26, 2006

Friday, January 20, 2006

Sunday, January 15, 2006

Wednesday, January 11, 2006

Saturday, December 31, 2005

Saturday, December 24, 2005

Friday, December 23, 2005

Tuesday, December 20, 2005

Sunday, December 18, 2005

Saturday, December 17, 2005

About Me

Links

Popular articles

Articles by month