December 12th, 2011
These are difficult economic times. Even firms that are doing well would like to be doing better. But even when a business knows where they want to go, the process of actually getting there seems to often take a wrong turn! The desired outcome sits there, almost taunting the leader, owner or manager to reach it, but the mark often gets missed.
After working with individuals in a coaching capacity, and with businesses on business-building and growth, for the better part of two decades, we’ve seen some consistent themes that need to be in place for an effective change management process – and a shift to success. Collaborative principal Bev Flaxington’s latest book, Make the SHIFT: The Proven Five-Step Plan to Success for Corporate Teams, outlines many of these in detail, but following is an overview to get you on your way to making a successful shift.
(1) It’s critical to know exactly where you want to go. To say, “We want to grow” or “We want to be a $2 bn firm” or “We want to take a market leadership position” isn’t enough. What does success look like overall – both quantitative and qualitative goals? Your team needs to know exactly what they are striving for, in order to get excited and get on board.
(2) Identify the obstacles you have had or may face, and then categorize them. Too many businesses shy away from looking at obstacles productively. “We don’t want to talk about our problems,” many leaders tell us. But knowing what’s in the way, and having a way to organize those issues and then systematically remove them as part of the process, is extremely powerful. Only when the obstacles come to light can any firm deal with them in an effective manner.
(3) Know the human capital you have – and what you need. Know who your stakeholders are and who can assist or detract from your efforts. Human beings are in the middle of everything in business, and yet most change processes do not take their existence into consideration! Do the team members get along? Are they poised to make a shift? Do they know who they can lean on? Focus on the people and make them a productive part of the shifting process, too.
(4) Find alternatives. A company that knows where they need to go should also have a Plan B, a Plan C, and even an “If nothing else works” plan in case of any exigency in the process of shifting. There is never just one way to do something. What are all of the options that might work? Take time to brainstorm, to set criteria for decision-making, and to consider what paths might get you to the same desired outcome.
(5) Know what you are doing step-by-step. The best ideas can’t come to fruition without a specific plan of action: What. Who. When. How much. In too many cases, we’ve seen leaders “ideate” but then never implement. Have a clear path forward with specifics, and then share it with your team members.
For many firms, it’s an exciting experience to move past whatever has held them back, and to have team members embrace a change movement and move forward confidently. We’ve seen it work over and over again in so many different environments, from small firms to very large. As part of your process, get a copy of our new book – each team member can benefit from using it to walk through the steps and participate. Make 2012 your year to SHIFT!
Posted in December Featured Article | Comments Off
March 3rd, 2011
Like Pushing Molasses Uphill
The good news is nearly every firm is in the same boat. The not-so-good news is that the rising tide is but a distant memory. This year, we’re hearing lots of complaints and frustration about sales and revenue. It may be helpful to frame what your firm is experiencing in terms of the experiences of other financial services companies. Let’s take a look at the top complaints we’re hearing, and then look at what The Collaborative sees as the real root causes of these issues. By resolving a root cause or two, your business may be able to get to revenue faster and more easily — in 2011 and beyond. Read more…
Posted in March Featured Article, Newsletters | Comments Off
October 29th, 2010
In our work with many different kinds of firms, we encounter many software or internet–based systems that our clients consider to be mission-critical. These are usually business-process, operations or accounting systems. Often times, we find that customer relationship management (CRM) systems are either installed but unused (or barely) or they’re seen as a “nice to have” and not worth replacing the sales or customer tracking now done in Excel or Outlook. But if you value sales, growing your firm, ensuring that customers are “covered” and that marketing ROI is quantified – you’ll want to put CRMs in the “mission critical” category.
Many CRMs and user experience suffer an average to poor reputation. In our experience some of the fault lies in a lack of planning and unrealistic expectations about CRMs. For instance, if you buy an accounting or trading system, the benefits and results can usually be quantified when compared to paper-based systems. Conversely, some firms buying CRMs have believed that a new system— offering more accessible and organized client information—would per se lead to more clients or higher revenues.
While a new CRM system has the allure of being the “silver bullet” that will cure sales or client satisfaction ills, this is usually not the case. How can you increase the probability that a CRM will work in your firm? In our experience there are three considerations rarely pondered prior to the search for a CRM, but doing so will increase the likelihood of both a successful implementation and enduring, productive use:
Company Goals and Strategy. Many people fail to consider business objectives as the first thought that should go into choosing a CRM. Business objectives are sometimes overlooked as the technology’s capabilities become a primary focus. The challenge is not in defining your company’s IT strategy but in clearly defining the business objectives and then mapping the IT strategy to these goals.
What is your primary objective? Is it to increase revenue, then how? Is there fertile and untapped opportunity within the client base, or is yours a new business for which suspect/prospect contact is the primary focus? Are your growth objectives clearly defined? Is yours a “high-touch/service” business where close contact with and knowledge of customers is required or will service reps and customer interact mainly via email or online forms? Is there a corporate goal to integrate your applications across the organization to use information from varied programs to drive revenue opportunities? Is the ability to integrate with mobile phones to provide salespeople with the necessary tool they need when they’re on the road critical to your business needs?
The decision to choose a CRM solution needs to be a business decision first and foremost. Once the business goals are defined you then must assess the impact on process and people.
Business processes. It’s a given that a new system will change the way Sales, Marketing and Client Service personnel will enter and report data. But can changes to old processes, reflecting new business realities, be the simpler and more effective answer? With a new system, how will quality and completeness of client information be assured? How will product and senior management be able to use it?
We worked with one software firm that needed to make major changes to an already-implemented CRM system to reflect major process and organizational changes that all agreed were the real key to long-run success. They first took a step back from searching for and selecting a new system to revamp what they were tracking in these functions, and then mapped out how each group would take the hand-off of prospects and clients. This ensured that every important action and all necessary data was accounted for prior to reviewing CRM systems.
People. Unlike, say, an accounting system, a CRM requires various functions with different needs and styles to use it. Sales people are notoriously undisciplined at entering information into, or even using, CRM systems. Meanwhile, customer service personnel are typically more detail —“hungry” to ensure a successful implementation and long-term relationship. The key point is to make sure you take behavior style and values into account in your CRM selection.
Other “people” questions you’ll want to ask include:
> What usage-related incentives are built into the compensation plans and performance reviews of personnel critical to system success?
> What new roles may be required to assure success?
> Do you have the right people now to fill new roles or must you go outside? You may find, as one of our clients did, that a new senior-level role — for instance, Knowledge Manager — is necessary to manage the increased prospect/client information, ensure that information flow works properly across functions and to “enforce” proper usage.
There are, of course, many other issues to consider and questions to answer in choosing a CRM, but be sure to include these strategic considerations along with typical “nuts and bolts” checklist.
Posted in News, October Featured Article | No Comments »
September 17th, 2010
Everyone is talking about risk today. Risk in the economy. Risk to the financial markets. Risk to homeowners, investors and just about anyone who is currently gainfully employed! The media focuses on risk of loss – risk of something bad happening to individuals or businesses. Our view is that there is another kind of risk that not many people focus on – the risk when businesses don’t understand the need to change, and don’t review their own activities to see where their vulnerabilities may lie.
When we work with companies of all types of sizes in financial and professional services, and in technology, we find three key areas of “risk” that many times are overlooked until a problem arises and they demand attention.
Let’s consider those areas and see what a firm can do to be proactive, instead of reactive:
Sales Risk
This one can take many forms depending on the life stage of a company, the strength of their products and services and their competitive positioning. Most often the risk factors have to do with lack of a clear and consistent plan to motivate and support sales reps. It is often assumed that the reps are the problem – they just need to “sell more”. Instead, a firm seeking to mitigate their risk could look at the obstacles the sales people may be up against and work systemically to remove those obstacles.
Is the market focus clear for the business development professionals? Is the story solid and competitive? Is the compensation program aligned with the business goals? Do sales professionals get the necessary market feedback and internal communication about what the firm is doing and what clients have to say?
For a company looking to minimize their sales risk, please see The Collaborative’s proprietary Sales Effectiveness Model. It outlines the 8 areas a company will want to look at to ensure that the sales process stays on track.
Marketing Risk
This one goes hand-in-hand with sales and really underpins a successful sales effort. In difficult times a company might make the mistake (and take on the risk) of using an age-old message. While the message might have resonated in good times, it may fall on deaf ears when economic conditions turn sour.
In addition, the market may change – and what it wants to hear about – in response to the economy. For example, in our business we are seeing a different prospect profile contacting us every day for marketing support. Where we may have designed our message one way in the past, we need to redefine it for the market showing interest now. A firm will want to be nimble and be sure they are crafting a message, and delivering a solution, that works for the times and the audience.
The risk also lies in not knowing what employees think about the story and the marketing activities. Are they aware? Do they know how to comfortably talk about what the company offers? Can they identify the ideal profile of a client? Taking time to collect input from employees and ensure the story is told well throughout the firm – and that the tactical tools align with the sales process – will mitigate marketing risk.
Customer/client Risk
It goes without saying that in a downturn your clients are likely getting pinched economically and are under a lot of financial and emotional strain. And – see Marketing Risk above – you can bet that competitors are doing everything possible to take your customers.
In times like these communication is paramount. Establish “early warning” processes and check-points that your sales and client service people can use to flag customers-at-risk. If you haven’t done a formal customer survey in a while consider hiring a third party to do qualitative phone or in-person interviews. A qualitative approach results in your client feeling truly heard and yield much richer information to you. This helps your firm adjust service, spot trends and more proactively save unhappy clients.
Clients are feeling the same strain and concerns in their lives and their companies that your firm may be experiencing, reach out to them and show them that you understand what they are dealing with. Bring them in as collaborators to help make your offerings stronger and most effective for them.
In summary, these are three potential risk areas that may require examination by your firm. It is always helpful to assess and understand your vulnerabilities. We’ve found that small problems can become large ones under stressful and difficult conditions. Why not be proactive in your approach to stave off any potential areas of risk? Taking the time to talk with your staff, review your current state in these areas and complete an internal assessment may save you time and money in the long run.
Posted in September Featured Article | No Comments »
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