The 12 Days of Strategic Planning Questions

“The 12 Days of Christmas” is a Christmas song that chronicles a series of gifts that are given just prior to Christmas. These are wonderful gifts on their own, but when taken together can be overwhelming. Think of all those animals and people.

Conversely, this article is a series of gifts for you, that on their own are valuable but taken together can really jump start your business progress. December is the month for final revisions to the strategic planning for companies that operate on a calendar year basis. Yes, we have recommended that it be done more frequently, at least every 6 months, but as a start, once a year. Here are 12 questions to ask about the plan you are creating - one for each of the 12 days of Christmas, so to speak. Despite appearances, since the questions are simple, the answers are not. They need study and reflection and of course action as you put them into your plan. Enjoy a new one each day.

1. Are you making your numbers now? If not, why not?

2. How has your target market changed in this past year? What are the key challenges that face your customers?

3. How well do your offerings solve the needs of your customers? What do your customers say?

4. What was the greatest success of your organization this past year? Does your plan provide for making this repeatable?

5. What was the greatest stress on your organization? How have you corrected this and set up processes that can operate without causing this stress?

6. If you were to evaluate your people, who would be in the top 10%? What are you doing to increase their impact on the organization and prevent turnover with them?

7. Given the significant talent pool that is currently unemployed, who are the 20 % of your organization that are least effective and how can you upgrade from the pool? This needs to be done surgically, rather than with a general cut.

8. What bottleneck is causing increased costs? As the economy improves and sales rise, how will you keep up with the new production requirements cost effectively?

9. How are you capitalizing on social media to increase your business?

10. What metrics are critical to monitoring the success of your plans? How are you measuring them and what are you doing to keep them in range?

11. What three things will you initiate that will make a significant difference to the results this next year? How do they leverage your and your company’s core competencies?

12. Do you actually have a written business plan that has been shared throughout the company?

Ask and answer these questions and you will have a better plan. Contact us if we can help.

Thanks and Merry Christmas

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Branding Your Competition

Branding your competition, is that right????

We recently wrote about branding your competition as a way to make marketing work for you. Several people have asked us to say more about this as it seems so counterintuitive.

Branding is essentially the image that is created in the minds of customers or potential customers that will cause them to act in a certain way. Done correctly with solid support from what is branded, it can produce higher margins and is extremely valuable. Branding is created either intentionally or unintentionally. Customers and clients do develop a point of view and you may not like what they develop. Therefore, it is important that you work to create the correct image for you and your brand to the greatest extent possible.

Companies spend significant effort and resources to create a positive brand image. Clorox liquid bleach is essentially sodium hypochlorite solution. The generic house brands at supermarkets are also sodium hypochlorite solution. But, in the minds of consumers, Clorox is much, much more. In fact, Clorox works with many retailers to help them promote their bleach as the low price alternative, leaving Clorox as the premium priced (and premium margin) choice. Generic pharmaceuticals are mandated by the FDA to be identical in efficacy and safety to the branded product. Yet, people continue to insist on having their prescriptions filled with the brand name and pharmaceutical companies foster that attitude with their promotional messages to both doctors and patients. Some brand companies actually manufacture the generics through a subsidiary.

In both of these cases and many more, companies are effectively establishing the quality image in the minds of their target audience.

So why would you want to spend any effort on branding the competition? Negative advertising and promotion generally is not very effective. Reflect on the political ads last month for proof of this. However, making a positive statement about your competition and “slotting” them into a limited position in customers’ minds does work effectively. If you can select for your customers where and when they choose your competitors, you can also set up the times and places they choose you for more advantageous sales. You can define the basis of comparison in a manner that you win.

Here are some examples of how this might work. Southwest Airlines has said, “United and the other big carriers let you select your seat in advance. You can even pay for upgrades to get better seats. With Southwest, we keep prices low in part, by letting you choose your seat as you board the plane. Any seat. It also lets us leave on time. Plus, we don’t charge for bags.”

In golf, Titleist says, “Our balls are not the least expensive. They are what the pros play most because of distance and control. A little bit extra cost will give you better performance and isn’t that what you really want?”

In consulting, there are some very prestigious consulting firms. They are large, expensive and take a long time to complete their projects. But they are good, right? In fact, there is a saying that nobody ever got fired for hiring them. However, there are consulting firms that have the same level of expertise in their senior people, have lower overheads, are more flexible and faster and don’t use your dollars to train junior people. Branding the big firms here is relatively simple.

In all of these examples, branding of the competition takes place. There are many, many other examples. You have had fixed in your mind an element or two about the brands and it should provide a favorable position for you.

Let us know if we can help you create the right branding for your company and products and how to make it competitive.

Thanks,

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Value of Branding for B2B Executives

Highlights from the Silicon Valley Brand Forum at Symantec

On October 12, 2010, a group of seasoned brand professionals gathered at Symantec Corporation in Mountain View, CA to discuss ways in which B2B companies are leveraging consumer brand marketing techniques in their own brand management.

John Maver of Maver Management Group began the event with a presentation about the challenges of getting B2B management to adopt a B2C view of brand marketing based on his 30+ years with Procter & Gamble and his current consulting with B2B companies.

John talks about key things you can do to sell the value of branding to B2B executives:



Contact John if we can help you and your company.

Thanks

John

John Maver
President
Maver Management Group
(925) 648-7561

Maver Management

Marketing in Today’s Economic Climate

Companies today are very careful about how they spend their cash. They have just experienced severe cut backs in almost every phase of their operations. Credit is extremely tight and with reduced personnel, the resources both in human and financial capital are scarce. Many companies have continued to invest in product development knowing that without it, tomorrow’s business opportunities will be suspect. Investments have also been made in process improvements to help offset the loss of personnel. Technology too has generally been upgraded, at least in some small way. All affect the internal workings of the company.

But what about the external aspect? What is being done to increase revenue instead of solely focusing on reducing costs and driving efficiencies?

Has your company upgraded the sales operation?

Has your company retuned the marketing plan so that it identifies customer or client needs more specifically and them brings your products and services directly in line with those needs?

We see too many companies that have neglected the revenue generation aspects of their business.

Here are some simple ways to help you drive revenue in support of sales:

Start with the customer. This almost goes without saying. Yet so many companies seem to almost ignore the customer and just generate programs. Go to your best customers and ask them to identify their greatest challenges. Find out how your offerings can best fit their needs and what they have valued most in doing business with you in the past. Getting new customers is VERY expensive. Keep and cherish existing customers and find out how you can provide even greater support to them. They will appreciate your efforts and will remember it at ordering time.

Retool the marketing plan. If indeed a written plan exists, it has to cascade from the company’s overall plan. The old plan is no longer viable in today’s economic climate. Build a new dynamic plan that focuses resources on the greatest leverage points. The old 80/20 rule holds true. Find the few elements that will maximize the return on your marketing investment and support them aggressively.

Brand, Brand, Brand. Take your focused positioning and drive the branding of your company and products in every aspect of your marketing and company operations. This is the single best way to increase the profitability of your efforts. Branded products or services have higher margins and well branded products or services are worth their weight in gold. Make sure that all of the company employees understand the importance of branding and the specifics of the branding you are creating.

Brand your competition. This may seem counterintuitive but it makes a lot of sense. By saying complimentary things about your competition and focusing on only certain aspects of their value, you can brand them into a place that has limited appeal to your customers or clients. For example, you could brand them as being the low price alternative. That can leave you the higher margin premium price business. It also defines the difference in quality. Of course, you need to be certain that the branding you are creating for both your offerings and those of competition are true.

Invest in yourself. If you do not provide sufficient resources to support your plan, it will fail. Many superb plans are still in the files of companies that have gone out of business because they were never supported.

Take advantage of social media. If you do not have a social media resource, get one. This is the best and most economical way of marketing these days and if you do it right, you can create a huge competitive advantage.

Don’t let the economy undermine your revenue generation. Build the right plans to capitalize on today’s economy and be successful. Let us know if we can help.

Thanks.

John

John Maver
President
Maver Management Group
925) 648-7561
Maver Management

Peace of mind

How is your piece of mind these days?

The pace of business is getting faster and faster. Customers and clients are becoming more demanding and lead times are getting shorter and shorter. Unfortunately payments are stretching out which causes financial stress to many companies. This financial stress is compounded by the business increases and the inventory and accounts receivable builds that go along with it. Cash flow is under pressure. Priorities are shifting and today’s top project may be gone tomorrow. The cutbacks in personnel have caused process problems and often times those employees who remain are handling multiple responsibilities, some of which are outside their personal core competencies.

Are you experiencing any or all of this in your company?

It can make you feel like you are out of control. We have written often about the importance of a written business plan that identifies for the company and all of the employees the direction you want to go and how you expect to get there. Having this game plan significantly reduces the stress. While it may not solve all of the pressures outlined above, it can put you more in control and that changes the entire outlook for you and the business.

You do have a written business plan, right???

How is it working for you? If you are having problems, perhaps either you have the wrong plan or it requires a tune up. Let us know if we can assist you in this.

A related question is, what do you have as your “security blanket”. As I watch our children over the years and our grandchildren today, I realize that all of them have a “security blanket” of some form. It can actually be a blanket or a stuffed animal or something comforting. But they all have one. They turn to it to reduce stress and give them peace of mind.

You may be asking yourself, “What does this have to do with me? I am a mature adult and I have no need for something this childlike.” In part, you are correct. You probably don’t want a real blanket or stuffed animal. But you do need something or someone toward which you can turn to help ease the stress and provide peace of mind. Take a look at pro athletes. They all have personal coaches, attitude coaches, motivators etc.

Most senior executives do not have anything like a “security blanket” and would never admit that they needed one. However, we encourage you to reflect on that issue for a moment. When times are stressful or you are having difficulty working through thorny issues with the business or an employee, to whom can you turn for help? You can’t go to your subordinates. They would sense weakness and really just want solutions not problems. You can’t go to the Board or to your boss. They too want solutions. After all, that’s for what they hired you. Spouses are loving but generally not involved enough in the business or its intricacies to provide unbiased help.

So to whom can you turn?

We recommend, hiring on retainer a senior, experienced professional who has been where you are and can provide solid, unbiased feedback, guidance, motivation and even training to you. This person can serve as a sounding board to let you explore alternatives as you work through challenges and opportunities. This trusted advisor, who keeps all of your interactions confidential, can be your “security blanket”.

You may not think this idea would work for you. Let me suggest that you take a look at some children and see how relaxed they are when they have their security blanket. What are you missing?

Contact us if we can be of assistance. We have been providing “security blankets” for many clients for years.

Thanks

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

The New Business Model – More Support

Recently, I wrote about a new business model that can accelerate business progress and is also extremely cost effective. This is the link to the article: The Cost Effective Way to Drive Business. Essentially, it makes use of experienced consultants who do the strategic and planning work, capitalizing on their knowledge, supported by lower level workers who are responsible for the execution of the tasks.

There are a number of staffing companies starting to provide this service of experienced consultants. Executive recruiters, for example, are finding short term opportunities for the talent in their data bases to the benefit of their clients, the candidates and of course themselves. This capitalizes on the new economy where companies are reluctant to commit to larger personnel expenditures or realize that there are significant unproductive periods in the executive week. This trend is spreading with other staffing companies offering the service of C level consultants on a short term or part time basis.

As a CEO or President you might consider this model and make use of the significant talent pool that is available to you at a relatively low cost. The great news is that you can test the model out in your business with no downside, as you can terminate it immediately in the unlikely event it doesn’t pay out.

To be clear, I am not recommending the use of large consulting firms for this model like McKinsey or Bain. No! Rather I am recommending experienced single or partnerships of very experienced executives who have the specific talents and track records required for your particular situation. You don’t want to trade one set of substantial overhead internally for another externally, all which impact your bottom line. Get lean and hire lean.

You may perceive this to be a very biased point of view since the Maver Management Group is a successful consulting company to C level individuals. While there is definitely a benefit to us from this model, it also reflects my long experience at the executive level with very large established companies, Procter & Gamble and Clorox, who operate with extensive executive staffs and generally promote from within. I have seen both sides of this opportunity. Hence, I am recommending it to my clients, whether they are well established or in the start up mode.

Please contact us if we can help you either create the plans for your company or set this model in operation to accelerate your business.

Thanks

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Ten reasons to use Consultants in the New Business Model

We have been writing about a new business model for companies. One that is based on the use of specific experienced consultants, used in short bursts for the strategic development and program creation of all aspects for companies’ business. It uses lower level employees for the execution. There are a number of benefits for companies from using this model if they capitalize on the experience of knowledgeable consultants who also have low overheads and are therefore cost efficient. Not the large multilayered, high overhead consulting firms.

Here are 10 reasons to use consultants in this model:

1. Knowledge. Companies can select a consultant with the specific knowledge to address a particular challenge or opportunity and not be burdened by having to force fit an existing executive with some of the required knowledge into the position. You can get exactly what is needed when its needed.

2. Experience. While closely related to knowledge, this reason reflects the consultant’s success in applying the knowledge to a problem like yours from other companies. In effect this is a “test market” for you and a proof of claim for the expected result.

3. Bandwidth. In many instances you or someone else on your staff may have the experience and knowledge required, but in today’s cost driven economy there just isn’t the bandwidth. You are too busy with other tasks and are weighed down with administrative tasks as well. The consultant in this model gives you that short term bandwidth required to capitalize on the opportunity now.

4. Cost effectiveness. You only pay for what you need. This isn’t a long term commitment nor should it fill up full weeks at a time. Structured properly, you download the expertise quickly and pay for only that time. In the historical model, you would have the executive on a full time basis and during those less productive times, the hourly cost is high. It is also clear that executives want to be working on something and as a result, they start additional projects which require staffing and resources and added expense.

5. New ideas. There is a significant advantage to having worked successfully in multiple industries. One experiences different ways of doing business, many of which are applicable to the new client’s business. These fresh ideas have been screened for success through the experiences in the other industries. The ideas have an established track record which makes their potential impact much greater for you.

6. Creativity. Pick a consultant that has fresh ideas and knows how to adapt them for implementation in your industry. Creativity is not measured in business by the uniqueness of a thought. It is measured by the impact of a different idea on your business in the market place. Consultants who are able to apply learning creatively from one industry to another are gems.

7. Productivity. This is closely tied to cost effectiveness. In this model, you are able to substantially reduce the down time of meetings, time filling and information seeking. You also have the higher expense person working on the thinking portion and not on the hands on execution portion that can be handled by lower cost personnel. The productive time you wish you had for the higher level thinking is exactly what you should be getting in this model.

8. Flexibility. Hire the specific talents you need at any one time. Use them for exactly the length of time you need and then finish the assignment. If you think you will need more help in the future from them, offer a small retainer. You are not burdened with the challenge of deciding what severance to provide or how to remove an employee who may not have the specific skills required for a particular job.

9. Openness. Since the consultants don’t have to rely upon you alone for long term remuneration and livelihood, they will be more open and honest about the potential risks and rewards of the various projects and initiatives. They also recognize that their future with you is going to be based on success, not longevity and so they have to bring their “A” game every day and that causes openness.

10. Connections. Consultants who focus on specific business areas have established productive relationships and connections with other professionals who provide different services and expertise. They can recommend talent to you for these other areas. Once again, their reputation with you is on the line so you can be assured that you will get higher level talent recommended to you through these connections.

We expect that there are many other benefits as well to using this model. Contact us and let us share our thoughts on this and the applicability to your business. It will be well worth the hour you spend with us.

Thanks,

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Branding Learning from Consumer Brands for Non Consumer Companies

(Part of a presentation given at the Silicon Valley Brand Forum for technology companies.)

Good Morning.

It is a pleasure to have been invited to The Silicon Valley Brand Forum to share some thoughts from my experience on Consumer Packaged Goods Branding as learning for non consumer companies.

From my experience, the consumer goods, professional, technology, financial, B2B and B2C industries have at least one thing in common. They all respond to branding. Every body, every product and every company is a brand. What you choose to do with them will result in generating increased margins, customer loyalty and long term success or alternatively, making them a commodity and driving them out of business.

My purpose today is to convince you that branding is absolutely critical in non consumer industries just as it is in the Consumer Goods industries.

I started with Procter & Gamble in Consumer Goods and became the Brand Manager for Tide, the company’s flagship. I learned a lot about branding and the benefits. Subsequently, I ran businesses in the professional and B2B industries. In those businesses not only did I use branding effectively, I capitalized on consumer branding and extended that branding into the other industries. I came to California to be President of the non retail division for Clorox, another major branding power. Subsequently, as a consultant I have had clients in a very wide range of industries and without exception have capitalized on branding to help them grow their business.

Many non consumer CEOs view marketing as the domain of consumer goods brands. They are wrong. Among Interbrand's 10 most valuable global brands, we find Microsoft, Intel, IBM, HP and GE. All generate far more B2B revenues than sales to consumers.

So why is it a common misperception that branding is a CPG domain alone?

As you know, non consumer companies generally don’t support branding to the same extent as consumer brands. Perhaps they don’t support the branding concept because their offerings have generally been presented directly to buyers by sales people and not via advertising or shelf position. Yet, there are logos on pens, coffee cups, calculators, USB memory sticks and other assorted items. What is the purpose of all this stuff? Proponents will argue that it builds brand by getting the business's name in the office of potential influencers and purchasers, where it will stay top of mind. But then, their materials, website, sales aids and more are all very differentiated and no clear message is delivered. If the name does stay in the customer’s mind, it is out of focus.

Some experts argue that branding plays no role in non consumer marketing compared to "hard ROI" activities that can be proven to drive revenue. Their arguments typically include:
• Buyers are rational decision makers (or a committee of rational decision makers) who are not swayed by emotional factors such as brands.
• Purchases are all about the relationship between the individual sales rep. and the buyer. If the non consumer brand means anything, it is created by the sales rep.
• Products do not really promote the product’s benefits. Those are a given. Price is the only thing that matters.
• Non consumer products are too complex to reduce to a tagline or ad.

While some of this is true, it is also misguided. I have led businesses in consumer packaged goods and non consumer industries and know from personal experience the value of establishing strong brands in both.

Here is why:
• If you sell on a cost basis, you will always be negotiating and competition’s price cuts are just as good as yours.
• You are ignoring the product development investments you have made and are not getting the value from them.
• You are essentially telling your customers that everyone is equal and that only the sales inducements matter.
• You have to over invest in your sales force.
• You are reliant on your sales people alone. Given the transition from company to company of employees these days that puts your business at risk. And you are paying to do it!

On the other hand, here are some of the benefits I have found of branding for non consumer companies.


Let’s use the David Letterman format:



10 It makes products less sensitive in regard to price increases.

9 It can insulate the business from movement of sales people.

8 Branding will provide clarity to the decision process for the customer. Less time is needed to close the sale of an offering.

7 Research shows that it leads to a greater willingness to try a product or service by customers.

6 Branding increases customer loyalty

5 There is a willingness to award a larger share of purchase requirement by customers.

4 The clear focus enables you to “transfer” the goodwill from one product to another.

3 Branding generates higher barriers to entry for competition.

2 Branding ties together all of the activities of your company and provides focus.

AND the number 1 benefit of branding for B2B companies . . .

It has been proven that branded products carry higher margins.

HIGHER margins.

Lessons from Consumer Brands
As the old wise marketing guru said, “Branding is the Essence of Successful Marketing”. Brand equity is a precious gem. While not particularly rare, it can be very valuable. So how do you tap into this treasure? Let’s look at some ways.

As we look at consumer branding or any branding effort for that matter you will note the following 4 critical elements: As an ex Tide Brand manager, I will use Tide as the example.

First, they focus on a Benefit that is meaningful to the customer. Tide is synonymous with clean clothes. Tide gets clothes clean. It has been the promise since Tide was introduced in the 1940’s as one of the first detergents to combat the film left by soap products. Clearly the reason that clothes are washed is to get them clean and therefore the Tide promise is VERY important to the target audience. It is so important in the branding that the promise has been on the box.



Second, there is a proof of claim, a Reason to Believe. This generally isn’t scientific proof given to consumers but could be in the technology world. Here you see it in visual terms in a side by side comparison in a print advertisement. Side by side comparisons have proven over the years to be the most effective demonstration of superior product performance.



Third, the Tone of the message supports the way the company wants the product viewed in the mind of the customers. It enables you to appeal to the emotional, as well as the intellectual aspect of the brain. Tide is a trusted worker. Here is this ad, you can see all three of the elements we have discussed - the Promise, the Reason to Believe and the Tone or C,,haracter statement.



Finally, the message is always consistent. It will vary in the way it is delivered but is always a consistent message. The products, ads and the Tide website follow the same positioning. If what is being branded is a company then everything from the receptionist on the phone through the orders and customer service should be consistent with the tone set out in the positioning.

Are you using this model for your branding?



Let me ask you a question. Who are the Second B in B2B or even the C in B2C? Who are the buyers in any of your industries? What are they like? What motivates them to buy? You do realize that they are also consumers, first and foremost, no matter what their business title. They respond to both the intellectual and the emotional stimulus.

Here are some simple illustrations:

Play along with me. You are a professional person. You have the steel trap mind of a buyer and are swayed only with logical arguments. Emotions and non factual items never would come into play with you. Right???

In N Out Burger

Have you ever eaten at In and Out Burger? Here is a spec. sheet for In N Out Burger’s biggest seller, the Double Double. See how appealing it is? Ready for lunch today?

Double-Double w/Onion Fact Sheet
Manufactured by IN-N-OUT Burger
Nutrition Facts
Serving Size 1 serving (330.0 g)
Amount Per Serving % Daily Value
Calories 670
Calories from Fat 369
Total Fat 41.0g 63%
Saturated Fat 18.0g 90%
Trans Fat 1.0g
Cholesterol 120mg 40%
Sodium 1440mg 60%
Total Carbohydrates 39.0g 13%
Dietary Fiber 3.0g 12%
Protein 37.0g
Price $3.44

Or how about this one? More appealing???




Corvette

The ultimate sports car for years has been the Corvette. Here is the Fact Sheet. Perhaps, if you are an engineer, it is the primary selling message, but I doubt it.


Chevrolet Corvette
Base 2dr Convertible
MSRP $48,900
Length 174.6 "
Body width 72.6 "
Body height 49.1 "
Wheelbase 105.7 "
Curb 3,221 lbs.
Base V-8 engine size 6.2 liters
Horsepower 430 hp
Horsepower rpm 5,900
Torque 424 lb-ft.
Fuel tank capacity 18.0 gal.

Or, here are two other presentations for Corvette.





Tell me that you are not ready to get into your Corvette and ride over to In N Out Burger for lunch. Parking away from the other cars, of course.

Do you now agree that branding has an important place in the support of non consumer businesses just as it does in consumer? Are you ready to brand your company and your products? Do you really understand that it is far more than logos, and in fact, the entire company has to be aligned to the branding message you are trying to establish.

Let’s assume that you personally are convinced. If you work in a non consumer company, you probably have to convince other executives and the CEO that branding is crucial. This presentation should give you some ammunition.

Contact us if we can be of assistance. We have experience in many industries and most likely yours. as well.

Thanks,

John


John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Top 10 Reasons Branding is Important for B-2-B Companies

10 It makes products less sensitive in regard to price increases.

9 It can insulate the business from movement of sales people.

8 Branding will provide clarity to the decision process for the customer. Less time is needed to close the sale of an offering.

7 Research shows that it leads to a greater willingness to try a product or service by customers.

6 Branding increases customer loyalty

5 There is a willingness to award a larger share of purchase requirement by customers.

4 The clear focus enables you to “transfer” the goodwill from one product to another.

3 Branding generates higher barriers to entry for competition.

2 Branding ties together all of the activities of your company and provides focus.

AND the number 1 benefit of branding for B2B companies

It has been proven that branded products carry higher margins.

HIGHER margins.

Thanks

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Incorporating Consumer branding models into B2b Teachnology Branding"

John Maver is presenting at the Silicon Valley Brand Forum on Tuesday October 12, 2010. The topic is "Learning from Consumer Brands - Incorporating Consumer branding models into B2b Teachnology Branding" Join us. As marketing in Silicon Valley evolves, more companies are looking to consumer brand companies to leverage their brand marketing techniques in high tech and B2B. What can we take from companies like P&G to make our technology brand management more effective? What is the difference between managing a brand for a network server and managing a brand for soap or cheeseburgers?

Hope you can join us.

Thanks

John


John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

What Consultant’s Clients can learn from the airline industry?

A USA TODAY analysis of 2005-2010 government and consumer survey data, which ranked the airlines, had some simple conclusions. The winning airlines, Jet Blue and Southwest make it easy to fly, despite their low prices. They don’t charge extra for bags, phone bookings or changing flights. Boarding is organized and stress free. The airline personnel most often have the authority to make simple changes that solve most problems for the traveler. Importantly, these folks are upbeat and make flying fun.

As a client in any industry, you might want the same attributes from your consultants
• Expertise – both technical and in practice
• Ease of use and hassle free
• Low but value pricing
• No hidden or extra charges
• Simple operation and stress free
• Authority to make changes as required and not have wait for higher authority
• Consultants who are upbeat and make the work pleasurable.

Is that what you are getting now?

Of course if you are now using consultants at al,l you don’t get the benefit of their expertise or the business acceleration they can provide.

The larger older airlines are struggling with their own profitability and yet don’t get the message about what passengers want. This is not unlike many larger consulting firms. Their process is arduous from initial contact through to delivery. In the consultants’ case the deliverable is generally a thick report that will go on the shelf. Junior people do much of the work but don’t have the experience or the authority to make simple changes as they go. There are extra fees charges for add on projects to the basic proposal. So while these consulting firms may have the reputation like the large traditional airlines, they just don’t meet the needs of many of their clients. But they continue to be the “safe” choice.

It strikes us that the right way to go is for a company to hire a consulting company that has both the expertise and the ability to understand the needs of the client and deliver directly against those needs. The consultant can cut away much of the extraneous clutter in the proposal and focus on what needs to happen to deliver the result. Having consultants that have been line managers with previous bottom line responsibilities vs staff who have been trained only to serve others is the right way to go. These consultants can get to the core issues quickly and develop the plans to resolve them.

This is exactly what happens with the winning airlines. Next time you are looking for consulting help to provide either the expertise or the bandwidth needed to reach your goals, recall the winning airlines and apply their learning to your business.

Contact us if we can assist you in any way. We would be happy to provide a “boarding pass.”

Thanks

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Putting Your Business Plan into Action

How is your business doing these days? Are you achieving the success with your plan that you had expected? You do have a plan right??

A number of companies are not achieving the expected results despite what they consider very good strategic business planning. Others don’t have a good plan and even with solid in-market activities are also struggling. Why is that? As we analyze these companies, it may seem obvious to us but certainly not to them. Otherwise they wouldn’t be doing it. Or would they?

Traditionally, strategy creation has been almost solely in the domain of the CEO and some of the senior executives. They huddle in conference rooms or even take it off site to a resort where they can also do some “team building” like golf. After the designated period, since most of these sessions have an end time set at the start no matter what unexpected issues arise during the sessions, a plan is “completed and agreed”. This is generally given to a designated implementer and the team returns to their regular responsibilities, pleased that the task has been completed. In many instances, little to no thought or resources have been given to the actual implementation. Hence, the results generally do not achieve the expectations.

Traditionally, the execution of business plans or daily activities are in the domain of the mid to lower levels of the organization. They are given a general idea of what they are expected to do and how to do it and then left to figure it out on their own. If there are additions of new programs or projects, usually they are added to the workload with resources to come from existing allocations. Not surprisingly, the results from this effort also do not meet expectations.

As you can see from the way the two scenarios are described, both are doomed to failure. Perhaps if you review the way that your company operates, you may be surprised to find that you are also falling into one or both of these traps.

Simply, you wouldn’t plan a trip without any idea of how you were actually going to get to your destination. And you would just get into the car without any idea of where you were headed and just drive. The same logic holds true in strategic business planning for success.

Clearly, strategy and execution have to be tied closely together. A recent issue of the Harvard Business Review had a lead article on this critical point. At Maver Management as we work with our clients we attempt to have at least a couple of “Implementers” on the strategic team just to insure that the team understands how the plan will be executed for success. Secondly, a significant element in the post strategic planning process is the cascading of the corporate plan down through the business units and functions. In this way, all will know exactly what is expected to be achieved and what their role in achieving it will be. It leads to coordinated business unit and functional strategic plans that directly tie to the corporate.

With a close tie together, it enables companies to make needed adjustments to the strategic plan quickly based on direct market place feed back. This keeps the plan current and on target. It is apparent that waiting for the next scheduled round of planning exercises a year off will not work in today’s fast moving economic climate.

The combining of strategy and execution may sound obvious. However, we have found that most companies do not do this and when they hire us to help them, are surprised that it is an important element of the planning process. Once they are underway, they see the merits and the results reinforce the wisdom of doing it.

The concept is basic. Are you tying your strategic planning directly to the execution?

Contact us if we can be of assistance. We have the experience and the successes.

Thanks

John

John MaverPresidentMaver Management Group(925) 648-7561Maver Management

The Cost Effective Way to Drive Business Success

How do you get the expertise required to drive to your business goals and still be able to keep costs under control?

The Problem
Companies both large and small have tried a variety of methods and models and have had limited success. Training and developing the expertise is expensive, resource consuming and takes a long time to germinate results. Hiring from the outside is risky since what you see on resumes and in interviews is not always what you get. Additionally, there is the added expense of recruiting and then once the hire is made, knowing that more than half will turn out to not fit well for very long.

The Solution
A better model for today’s economy is one that takes advantage of the services and talents that are readily available and does so in a cost effective manner. Our experience has been that the staffing model for today is a mixture of consultants and in-house talent. Having been personally involved with this model and its success with a number of companies, as well as participated with the other models, we know it works!

The Need
Expertise is required to quickly identify the opportunities and develop the plans required to reach the goals. It is also required to oversee the execution of those plans, since strategy and execution cannot be separated. Hiring this expertise as part of your company’s ongoing staffing can be cost prohibitive for small to medium sized companies and difficult to assimilate for larger companies. The requirement is for the brain power, not the administrative, paperwork and supervisory capabilities. Yet, for management employees, most of their days are spent on tasks other than creating.

Concurrently, there is also a need for the legwork and the administrative talent that will actually execute the plans and make certain that all the details are followed and completed in a timely manner. This is best achieved through in-house talent familiar with the organization with productive relationships to make it happen smoothly and quickly. This talent is not quite as specific as the expertise talent and from a cost standpoint can be quite reasonable.

How it works
The plan would be to put several high powered consultants, NOT consulting firms, but specific consultants on retainer, so that they can help you directly create and then oversee from a distance the strategies, plans, programs and execution. The actual labor of putting the plans into the market would be done by the in-house staffing.

In today’s marketplace, senior level expertise can be found in every function and is readily available. So, too, is the basic labor that is required.

The Benefits
A sample cost comparison might be:
Complete staffing in house
Senior executives (2) – Compensation, benefits, overhead, expenses etc –
annual cost $375K
Lower level management (2) - Compensation, benefits, overhead, expenses etc –
annual cost $125K
Total $500K

Recommended Model
Senior executives (2) - 2 days per month each –
annual cost $120K
Lower level management (2) - Compensation, benefits, overhead, expenses etc –
annual cost $125K
Total $245K

In addition to the significant cost savings, there are several other benefits. The consultants should bring fresh ideas with experience from multiple other companies. This can provide competitive advantage vs other companies in your industry. There is also no severance when projects are completed or alternative talents are required and flexibility in usage of time required.

An added benefit is that the company can get exactly the expertise and fit needed at any time and require existing management to take on tasks that are not squarely in their sweet spot. We all know how ineffective and expensive that can be.

Think about it. Doesn’t this model make more sense and not just because the Maver Management Group are consultants? Aren’t the benefits apparent for your company? Doesn’t this expand your capabilities and bandwidth most cost effectively?

Contact us if we can help get you started. We have the experience.

Thanks

John


John MaverPresidentMaver Management Group(925) 648-7561Maver Management

Is Strategic Planning Necessary?

"My business is small to medium in terms of revenue and staffing but has the opportunity to be much larger. Do I really need to develop a full strategic business plan?"

The best response to this question is, "Only if you want to stay in business and prosper." Consider the following reasons for strategic planning.

Competition is becoming tougher. In most cases, businesses your size find themselves competing with much larger companies, ones that know the benefits of strategic planning and practice it. From a defensive standpoint, it is important that you apply the same concepts to your operation.

Good financial control alone is not enough to ensure your business's success. In addition to a budget, you need long-term goals and plans to determine the future direction of your company.

Technology and the fast pace of change are making business management more complex. Strategic planning will help you foresee and react quickly to market changes and opportunities and identify areas in which your business is lagging behind.

You can use strategic planning to involve employees in all areas of your business, so they share your goals.

You can use your plan to communicate with bankers, who often do not understand the nature of your business. Bankers must be convinced that your company is in control of its future before they will lay their money on the line. A comprehensive plan, aimed at sustained growth in sales and earnings, can be very convincing.

As we work with our clients we have found that sound strategic planning provides the following benefits:

• Provides strategic direction to the entire company.

• Translates corporate objectives into actionable plans.

• Causes alignment, prioritization and focus.

• Allows clear simple communication throughout the organization.

• Provides resource optimization.

• Assigns responsibilities and timelines.

• Enables forecasting of revenues and expenses.

And most importantly, it DRIVES RESULTS.

Contact us if we can help.

Thanks,

John


John MaverPresidentMaver Management Group(925) 648-7561Maver Management

Turnaround or Business Acceleration?

Has the economy turned? The news continues to be full of stories that support both the need for continued turnaround work in companies as well as for business acceleration strategies in others. It’s true with the giant companies. GM pays back all the loans to the government and appears to be moving in the right direction. HP announces that it is cutting 9000 jobs and is still reorganizing and “getting right sized”. It’s true with the medium and smaller companies as well. We expect that you are either directly affected or someone close to you is.

How should businesses handle these economic times? Some businesses have pulled back and are still cost cutting and operating in a very defensive mode. Unfortunately, their life expectancy is going to be relatively short lived. Others are taking a more assertive stance. Assertive, not necessarily aggressive. They have created a solid business strategy and plan, built the right management team and are investing wisely in their future. They can have a bright future.

What is your company doing? Do you need turnaround or business acceleration work? How are you helping lead your company in these times?

We are finding that many companies are once again capitalizing on the skills and experience of strong consultants. They, once again, are viewing them as a wise investment rather than a cost choice. As a result, the companies are developing the right plans and doing so much faster than they would if they had to do it on their own. They are finding that the extra bandwidth for that short period of time is well worth the small expense and the ROI is significant.

The caution is to make certain that if you are hiring a turnaround consultant that they have the capability to go well beyond cost cutting and help build plans that will grow revenue. Without the right plan for the revenue growth, the company will stagnate and business will continue to be difficult.

On the business acceleration side, the plans need to be focused and as they look to the future, provide the right resources to handle the higher levels of business.

Is your company capitalizing on the experience of successful consultants? It doesn’t have to be the big name and big fee consultants. In fact, unless you are responsible for a VERY large company with extremely complex operations, you are probably better off with a company that can have its senior people work directly with you and your executive team throughout, rather than assigning junior people to do the analysis and assessment work.

Contact us if we can help. If your business needs help beyond our capabilities, we will tell you and probably have some recommendations for other companies that are exactly what you need.

Thanks

John


John MaverPresidentMaver Management Group(925) 648-7561Maver Management

Seven Significant Factors in Business Turnaround

The global economic crisis has many companies still feeling the pinch. The Maver Management Group has worked with a number of clients and helped them turn around their business situation. We have also seen and reviewed other companies that continue to struggle. There are some common factors that differentiate the successful from the non successful other than the fact that one set has worked with us.

Seven of the most important elements are:
1. Ability to prove business viability. Your business plan must outline clearly the expectations and how you will specifically deliver those expectations.
2. Ability to manage key stakeholders. Once you have the plan that proves viability, you must be able to communicate it clearly and persuasively to all stakeholders.
3. Management credibility. A key element of instilling confidence in the plans is the credibility of the management group. It all starts with the top group. If they can’t generate respect and confidence, the plans will never happen.
4. Business reputation. Positive branding not only brings higher margins, it also contributes to the selling of the company’s viability and the products to the clients and customers. And to the Board, the banks and the suppliers!
5. Maintaining supplier credit. As businesses restart their growth, they require inventory build and funding in advance of the revenue they generate. You need to utilize the credit and payment terms with suppliers to generate the float.
6. Securing internal and external funding. Companies must have the funding required to support the business building initiatives. Without the funding plans, progress will stall.
7. Quality of the people. All progress eventually traces back to the people. Companies with the best people tend to rise to the top. Assess your people and make sure that the top ones are in the most critical positions. They will make the turnaround happen.

Some businesses are unsure whether they need assistance in turnaround management. Others find their company’s problems too hard to face and leave it too late, which often ends in insolvency. So how do you know when to call for help? The key warning signs to call in a turnaround management specialist are:
• If you continue to experience a substantial decline in sales and/or margins or have lost a major customer
• If you are struggling to refinance, raise additional capital or are likely to breach your banking covenants
• If cash flow is becoming harder to manage and creditor pressure is building
• If you are experiencing an increase in turnover at the senior management level

If you have any of these elements, you need turnaround help. You are not going to be able to do it yourself. Generally, companies in this situation have neither the expertise nor the bandwidth to be successful in turning the business around.

Contact us. The Maver Management Group can help.

Thanks,

John
John MaverPresidentMaver Management Group(925) 648-7561Maver Management

Leading the Turnaround – 12 Traits of Leaders

The economy continues to have many companies in turnaround situations. Companies today, more than ever, need effective leaders.

Are you an effective leader? Not only do we ask this question of ourselves, but our organization is also asking it about us every day. And they are evaluating us. Here are the key traits that leaders must have and exhibit if they are going to be successful.

1. Mission setting ability. A mission defines the reason an organization exists. It sets the business apart. Have you created one for your company? Is this readily understood across the organization?

2. Visionary. This identifies where the company wants to go and what it wants to be when it gets there. Has the long term opportunity for the company been developed and provocatively communicated?

3. Smart. Leaders are analytical, creative and thoughtful. They have the brain power to understand situations and find the right path of action.

4. Competitive. Leaders want to win and they do. Leaders understand that competition is a good thing for personal and professional growth because it sharpens skills.

5. Positive Attitude. There are many quotes from famous people in all walks of life that support the importance of attitude. Success in life is based more on mental attitude than mental capacity. The leader's attitude always seeps through. Positive or negative.

6. Tenacity. There are going to be rough spots in any organization’s progress. In fact, the rough spots may be disasters that must be overcome. Leaders have the ability to not only stay the course despite the difficulties, but also to inspire others to do so as well.

7. Improvement orientation. Businesses must grow in terms of getting better and better or they will stagnate and die. A leader has to be in a state of continuous improvement and that comes from a combination of learning and executing.

8. Decisiveness. Leaders are action oriented. They gather the facts and they come to well reasoned, fact based decisions. They make the decision and do not delegate it or put it off.

9. Courageous. Leaders take risks – smart, educated risks. They choose a course of action and make it happen.

10. Motivating. Leaders find the good in opportunities and the good in people and cause people to find the means of capitalizing on opportunities and overcoming the hurdles.

11. Sense of humor. In order to survive, the leader has to have a good sense of humor, both for their own good and the good of the team and the organization.

12. Honest and ethical. This goes without saying. Leaders must have good values or their followers will leave them quickly.

How did you do on this check list? Contact us if we can help you with any of these.

Thanks,

John

John MaverPresidentMaver Management Group(925) 648-7561Maver Management

Social Responsibility – Kingdom Assignment

Social responsibility is an important Core Value for every company. Not only is it the right thing to do, it makes good business sense. It tells and shows employees that the company cares about them, their lives and the community in which they work and live. As a Core Value, it becomes part of the company’s culture and work fabric, causing behavior that has positive outcomes.

Corporate social responsibility (CSR) is the business responsibility for the impact of its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. The scale and nature of the benefits of CSR for an organization can vary depending on the nature of the enterprise. It may be difficult to quantify, however, a number of studies have shown a correlation between social/environmental performance and financial performance. The benefits can be any or all of the following for example:
1. Revenue and profitability: Often the implementation of these ideas can lead to new sources of profitability either through new revenue opportunities or cost avoidance. Company after company has documented these benefits.
2. Human resources: It can be an aid to recruitment and retention. CSR can help improve the perception of a company, particularly when staff can become involved through payroll giving, fundraising activities or community volunteering.
3. Brand Differentiation: Companies strive for a unique selling proposition that can separate them from the competition in the minds of consumers. CSR can play a role in building customer loyalty based on distinctive ethical values. You will note the sweep of “green” products that have been introduced in almost every industry.
4. Risk management: Managing risk is a central part of many corporate strategies. Reputations that take decades to build up can be ruined in hours through incidents such as corruption, scandals or environmental accidents. Building a genuine culture of 'doing the right thing' within a corporation can offset these risks.

The Maver Management Group has long been a supporter of social responsibility. We have been active with a number of area organizations and ministries as part of our giving back. We are currently involved in a “Kingdom Assignment" of raising money to pay for Bibles that will be used by new churches established by CityTeam, San Francisco. CityTeam works to help the economically disadvantaged in San Francisco and is working diligently using a productive formula to establish new churches and reach many, who desperately need the love, caring, guidance and help. We are blessed to be involved in this good work.

As we reach out to others to tell them of this program, we consistently find that the real benefit comes to us. Not in terms of new business or profitability, but in terms of being of significance in what we do. It is a Core Value for this company and the impact is far reaching.

This type of assignment may not fit your needs or desires perfectly. However, another one will and we encourage you to include social responsibility programs in the activities of your company, both on a personal and corporate level.

Contact us if you want to be part of our efforts or if we can help you with yours in some way.

Thanks.

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Business Tips for Successfully Coming out of the Recession

We are finally seeing signs that we are coming out of the recession. Consumer confidence is turning around and companies have generally reached the bottom of their layoffs and resizing. Too many are still in the cost cutting mode and will struggle for some time, if indeed they make it at all. Others are planning on what they should be doing to fully take advantage of the recovery.

Maver Management Group has been working with a number of companies to assist them in their survival and turnaround and they are now positioned for growth. Based on our experience and the lists we have reviewed from various sources, we offer the following to you for successfully coming out of the recession,

1. Review Your Strategic Plan. Make certain that it is relevant for today. Examine your objectives and goals and then insure that the strategies you will follow will deliver those desired results. Importantly, make certain that the resources you have will support the strategies and are focused so that you get maximum impact from each.

2. Identify and Maintain Your Strengths. Identify the strengths that have driven your success to date and those that will be important in the future. Which capabilities and skills are most critical? What distinguishes your ability to serve customers most effectively? Focus on these and invest in them heavily.

3. Identify Your Best Customers. This doesn’t mean your largest customers necessarily, but your best customers. Identify your highest-margin customers, and understand what you are "doing right" for them. Develop a game plan to protect and build on the strengths that have allowed you to be indispensable to these customers. Rather than cutting costs across the board, think about how you can shift resources to retain these high-margin customers, and attract more customers like them.

4. Capture Market Share. Recessions reshape industries faster than good times, creating opportunities for those with the vision and ability to seize them quickly. Studies have shown that companies have twice the opportunity to change their relative position in an industry during a recession, compared to growth times. Keep an eye on competitors, and stand ready to capture market share as other players allow cost cutting to damage their service and quality or fail outright.

5. Manage Cash Flow. Your company has been dealing not only with negative growth but also with liquidity constraints. During good times you may not have obtained sufficient lines of credit to sustain your company through economic adversity. Trying to maintain liquidity on a smaller revenue base can be crippling. Your cash flow has been positively affected by reduced Accounts Receivables and lower inventory from the lower volume of products being sold. Now you will need to plan for increases in both probably at a rate in advance of your revenue growth. Build on the new processes that you have put in place during the downturn so that you keep inventories tight and maintain faster collections of AR.

6. Keep Core Activities In-House, and Outsource Everything Else. Build and protect those "core" capabilities that differentiate you, while aggressively outsourcing anything non-core. Depending on your business, non-core activities may include IT maintenance, human resources administration, benefits and payroll, accounts receivable and payable, manufacturing, distribution or sales. You'll get the benefit of service provider expertise and economies of scale and will pay only for services you need. The biggest benefit of outsourcing, however, is that it shifts your focus, resources and capital toward serving your clients' higher value needs and building your competitive advantage.

7. Create New Metrics and Manage by Them. Tight economics put a premium on your ability to understand the relationships between revenues, costs and margins. Think about metrics that focus on the building blocks of revenue and sustaining market share, including sales pipeline, customer satisfaction, pricing and market penetration. Metrics should look beyond core financials to provide management with insight into market dynamics, such as market share trends.

8. Communicate and Reenergize. The recession has been a time of turmoil for all of the company stakeholders. You now need to begin the process of re-energizing your employees and creating new trust among all your constituencies. Frequent and honest communication will go a long way toward maintaining a calm and motivated workforce. Studies show that employees are motivated far more by a sense of shared purpose than by compensation. Create that shared purpose and reinforce it daily.

The changing economic climate has created many opportunities. It has also created many potential pitfalls. Contact us, if we can help guide you to success in capitalizing on the opportunities and avoiding the pitfalls.

Thanks

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Company turnaround before it’s too late

Maver Management Group works with many companies and senior executives. As a result we see first hand how companies have responded to the recession and the early signs of recovery. Many companies have failed. Some were so poorly run that failure was inevitable despite the economy. However, a significant number could have been saved if they had sought the right help early enough.

As turnaround experts, we do not just work with businesses in trouble. Many clients seek our advice for general profit improvement. Companies must be willing to admit they need help. The earlier we get engaged, the more options we have to improve the business.

The key is to critically assess the troubled entity’s business plan and review profit and loss to determine the causes of underperformance, such as rising production costs, loss of customers or increased competition. In some cases, it is simply the lack of a business plan at all. The work focuses around improving cash flow, stabilizing operations, communicating with key stakeholders to re-build their support, exploring all strategic options and developing a comprehensive turnaround strategy.

While the ways companies can get into trouble are many, there are common themes:
•Not having a solid business plan
•Not having the right management team depth of skill
•Overly focusing on across the board cost cutting
•Attempting to grow revenue without considering the impact on margins and profit
•Not having the right systems and controls in place to manage their working capital
•Not having specific measurements that track key business results or reviewing financial and operational performance regularly

The following is a summary of the 6 essential elements required in our view to achieve a successful turnaround:
1. The ability to prove business viability by demonstrating the various initiatives that will restore earnings and cash flow. Cash flow is key.
2. The ability to manage “all” key stakeholders and keep them all moving in the right direction. This can’t be done without a strong strategic business plan.
3. Strong and credible management, which might mean making certain replacements.
4. An ability to maintain or enhance the reputation of the business. Branding is critical.
5. An ability to maintain supplier credit and terms. This drives quality and cash flow.
6. An ability to release internal working capital and secure external funding. Without the funding, there can be no growth initiatives.

Turnaround management requires expertise. If you need help with any of the above items, contact us. We can turn your business around and help it thrive.

Thanks

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Stop Cost Cutting and Start Building Your Business

The recession, financial crisis, turmoil in consumer confidence, credit restrictions and a host of other factors have caused companies, all companies, to review their use of their resources, both human capital and financial. Some companies didn’t make it and are out of business and some of these are major corporations, not just the little guys. Many companies have been forced to restructure completely. You and I, the US tax payers, own some large financial institutions. All companies have cut back on expenditures, many to the detriment of their future.

Faced with rising expenses, companies often focus on cost cutting initiatives. Companies dealt with this issue as their business models became more complex, and operations weren't experiencing any efficiency gains. But as many cut costs, profits suffered because of service and reliability issues. Customers became dissatisfied, with some even pulling their business altogether.

It is now time to stop cost cutting and to start building your business. The economy is starting to turn and you have to be ready to capitalize on it or once again you will be faced with the “Out of Business” sign on your door as your competition enjoys success.

By now if you haven’t already made the appropriate cost cuts and are down to the bare bones operating plan, you are probably out of business already. So start to turn your eyes upward. You need some turnaround help.

While the best plan is to bring us in and let us assist you, here are some tips if you are going to try to do this yourself. (You know there is a reason that the TV dramatizations always say “These are professionals. Don’t try this yourself.”)

Start with the Business Plan
If you don’t have a solid written business plan, get one! This above all else is the most critical step in not only staying alive but being able to grow. If you don’t know where you are going or how to get their, almost every road will bring disaster. You can’t afford disasters after the cost cutting you have done and the frail structure that remains.

Confirm your Core Competencies
In the market today, you may need to redefine your core competencies so they are relevant. It is on these core competencies that you will build your growth plans. These are your strategic planks that can lead to growth. They must be based off an in depth analysis of both internal and external factors. This is more than just a simple SWOT analysis. It looks at all aspects of your environment.

Stay Focused on Growth
Do not let your organization fall back into the cost cutting mode or the pure rebuilding mode. Profitable growth is your goal. Successful companies need to strike a balance between managing costs and fostering growth. While the focus has to be on growth, you can’t ignore the need for increased efficiency in your operations. Doing more with less is the constant pressure and that really means operating smarter. Never become so focused on controlling costs that growth and customer service is sacrificed. Growing your business is what provides long-term opportunity for increasing revenue and expanding market share.

Reassess market Needs of Your Clients and Customers
Do some research to understand how they are operating TODAY. Things have changed for them as well. Once you clearly understand their needs, you can adapt your products and services to best meet those needs. Simplistic as it sounds, if you want to find out what they need, ask them. They will tell you and appreciate the effort you are making to really understand them.

Make Marketing a Critical Element in Your Business Model.
Marketing is much more than just providing marcom materials. It starts with positioning the company/brand in the mind of the purchaser so that you are the first though when they are thinking about your market space and it enables you to receive higher margins for your products or services. It then builds on that positioning to create the right plans that keep your name in front of your target audience at the most opportune time.

Capitalize on Technology
With the rapid development of new technology there are many opportunities. This can be in automating processes and simplifying the reporting and measuring of progress. But it also can mean new ways of reaching clients. Social media is now a common way of life. It enables you to not only reach your clients and customers but also to have them reach you and to have a dialog. The social networking strategic and implementation company we us is Thought Labs (www.thoughtlabs.com).

Don’t Cut Sales – Upgrade It!
This is your revenue generating function. Measure them on results and not activity. We see so many companies that measure activity, see no results and them cut the function for cost reasons. Bad choices. Set the sales goals and hold the sales force to them. Give them the tools to be successful, including the senior executive support.

Evaluate Current Processes and Streamline Business Activities
To maximize growth and income opportunity, a company needs to carefully evaluate the existing processes. Consider how operation functions are carried out. This provides opportunity to identify and eliminate wasteful practices. Look for ways to simplify. Develop a common platform for your products to avoid unnecessary duplication. Once you have examined which areas need improvement, you can focus on streamlining current processes. Identify steps that don't add value and look for duplicate activities.

As we said in the beginning of this article, now is the time to stop cost cutting and start building your business. Don’t do this on your own. Get some professional help. Contact us.

Thanks

John


John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Turnaround Management – Focus on Five

There are a lot of pressures on CEOs and Executive teams these days. Greater pressures than ever before or at least it seems that way. They are being asked to do more with less, deliver the profitability to keep the shareholders or owners happy, keep the employees motivated and of course delight customers and clients.

The tendency has been to have a number of important initiatives underway so that the needs of all of the stakeholders are addressed. Instead of doing more with less, the result most often is to do less with less. Significantly less.

In 2008, the management of United Airlines made a decision to run a better airline. According to the Wall Street Journal, United’s program, “Focus on 5”, was an initiative for all employees to work to improve five key measures important to customers. The five include on-time performance, condition of the airplanes, courteous service, revenue and costs. Bonuses are paid to employees for months when on-time arrivals beat rival airlines. United Airlines improved on-time arrivals of flights to 80.5% in 2009, up from 71.3% in 2008. A solid start to long term improvement, but also this is clearly a turnaround.

There are several lessons here.

The first is that it started from a review of their strategic plan and what were going to be the most leveragable initiatives to deliver the company objects. Note, they had to have a strategic plan to start in order to do this. You and your company do have a written strategic business plan, right?

The second is focus. United didn’t try to do everything. They selected the most important initiatives and had everyone focus on them.

The third is communication. United made it known throughout the company that these were the key initiatives and everyone’s role was defined as to how to meet these initiatives.

The fourth is measurement. They had simple measures that were easy to obtain, easy to understand and easy to tie directly to the results required.

The fifth is rewards. Employee compensation by way of bonuses was tied directly to the success against the key initiatives.

This article regarding “Focus on Five” key lessons from this turnaround management opportunity is a follow up to United’s internal program slogan and efforts. It doesn’t say that the program was the right one or even well run. It does say that their program was simple and focused. Do you have a program that is simple and focused, based on the key initiatives from your business plan? If not, contact us. We can help.

Thanks,

John



John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Turnaround Management - It’s time to stop watching and get into the game

The Bowl games are on for college football. There seem to be more each year. Perhaps this is indicative of our population becoming more and more watchers of the events rather than actually participating in them. We sit at home in our easy chairs with our favorite snacks and beverages and just watch. Similarly, watching the Rose Bowl Parade on TV is the only way to see it for most people but those that have been at the parade or better still actually in it, say that there is a world of difference in the experience.

Are you a watcher? Are you a watcher at your company? I don’t mean are you alert to all that is going on around you. I mean, are you just watching the company game or parade?

There is a big difference between watching the game and actually playing it. You have to get your hands dirty for one thing and you actually feel the intensity of the moment. You get the satisfaction of the contact with the world and not just the sound bites. You do it and learn from it and don’t have the replay to live it again and again with the armchair quarterbacks. You learn from doing.

Leadership is about not just getting involved but also setting the direction and getting the rest of the organization involved and playing. It is being the team leader on the field. It is standing shoulder to shoulder with your colleagues and putting all your energy, intelligence and talents into the game. You are a player not a spectator.

Here are some tips on how to get involved:

1 What the game plan?
Do you have a written business plan that you and the rest of the organization know and are following? Can you imagine playing a game without a game plan?

2 How good are your players?
Take a look at the executive team and the colleagues around you. Are they "A" players? You can’t win with sub par players. Evaluate them vs. the plan requirements and trade up in caliber.

3 How good are you?
When was the last time you took some refresher courses or honed your skills? Do you have a coach? All game players have at least one and all successful “C “level people do as well.

4 Have you focused on the right targets?
Do you have the right clients and customers? Have you identified their unmet needs and have you positioned your services or products to meet those unmet needs?

5 How are you using your resources?
Successful teams harness their resources to maximize the ROI on them. Resources are scarce and can’t be wasted if you expect to win. Cull through the project lists and prioritize. Eliminate the low potential or high resource constraints.

6 How are you measuring your progress?
Football teams always have the yard markers which tell them exactly where they are and how they are doing? What are your “yard markers”?

If you are finding that you have negative answers to the tips above as you reflect on your company, you need help. Contact us. We can help you and your company.

Don’t let the parade pass you by. Get in the game!!

Its time to stop watching and get actively involved.

Thanks.

John


John Maver
President
Maver Management Group
(925) 648-7561
Maver Management