What’s the issue? Business planning or just doing?

The recession continues and more and more businesses are failing - failing and being forced out of business, failing enough to have significant losses despite large layoffs and a desperate focus on cost cutting or failing through having little idea of how to turn the business around and keep a meaningful cash flow.

What’s the issue? Is it too much planning or too much action?

Are they failing because they have spent so much time creating the mission, vision, objective, goals and measurements for their strategic business plan that the opportunities have passed them by? Or are they locked in to outdated plans, programs and spending? Or is it more a case of having leadership that is unable to cope with the realities of today’s dynamic marketplace?

On the other hand, is it because they do not have a basic business plan that they are following and are just winging it? In this case, everyone is going full speed, but not in the same direction, no matter what you may think and certainly not toward a specific goal.

Or worse still, is it because they are faced with analysis paralysis and actually doing nothing? This cause a company to seize up and the organization grinds to a halt.

Actually, the failing may be the result of some or all of these elements. Business plans are a MUST for every company. However, they need to be actionable. And they need to be acted upon, adjusted and acted upon again. They shouldn’t be binder thick. In fact, we recommend that they be kept to one or two pages. Otherwise, they are not read, used properly or followed.

What are you doing in your company? If your company is struggling, is it due to over-planning for the business with concentration on the theoretical plan and not taking the appropriate action? Or is it all action and no known overall plan. Clearly, it can’t be an either/or if you are going to survive in today’s economy. It is a reasoned combination of both planning and action.

Do you have a written business plan? Is it simple and understandable to all? Has it been communicated to others?

Are they taking action on it? Are you adapting the plan based on the ever new market feedback? Do your customers know what you are trying to do and the benefit in it for them? Are they supporting your direction?

What are the results and what needs to be changed?

So many companies are focused on cost cutting that they are not generating revenue that is desperately required for cash flow and support and also undermining all future efforts. Now, and when the economy turns, it is going to be the company with the successful plans put into action and market honed that will prosper.

Managing in today’s turbulent times isn’t easy so don’t think you can do this on your own. Get some help from experts who have been there before and can help lead you through the problems.

This can be a time for you and your company to actually prosper but you have to do it smartly.

Thanks.

John

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

Lessons from Procter & Gamble – Integrity

 

 

We have written several times about core values of an organization.  Our experience at Procter & Gamble made us believers and we became accustomed to dealing with colleagues with integrity.  Those that didn’t got weeded out quite quickly as they came into the global headquarters.

Here is how integrity was explained at P&G. 

Integrity - We always try to do the right thing.  We are honest and straight-forward with each other.  We operate within the letter and spirit of the law.  We uphold the values and principles of P&G in every action and decision.  We are data-based and intellectually honest in advocating proposals, including recognizing risks.

As we formed Moon & Stars Consulting LLC, all with ex Procter people, we naturally assumed that integrity would be a normal part of our lives together.  Building on it we expected to develop a strong business that would apply that same integrity to our clients for their success too.

One can’t assume integrity in some others no matter what the pedigree.  You have to take the practical steps to confirm it.  You will find that the conclusions are not surprising, but so easy to overlook as you look for the best in people.

1 “Trust everyone but cut the cards.”  This is an old poker message and it means make sure that you keep a personal eye on the finances with regular review.  It isn’t enough to have a summary supplied by one person unchecked.  Go to the source and verify.

2 Never let one person handle the finances alone.  Make certain that there are at least two signatures on the bank accounts.

3 Work together and build together.  If you don’t give lack of integrity a chance to get started you can avoid much trouble later. 

4 If you find lack of integrity, rid the company of it immediately.  It is like a cancer and will spread.

These are simple actions and can avoid a great deal of pain to a company.  Don’t be misled by appearances.

If you need some help on this issue with your company, contact us.  We would be happy to help.

Thanks,

 John

John Maver
Founder and Managing Director of Moon & Stars Consulting
President Maver Management Group
(925) 648-7561
Maver Management

Lessons from Procter & Gamble – P&G’s Core Values

We recently wrote about the importance of Core Values as an integral part of strategy for companies. A book written by ex-senior Procter & Gamble management, “When Core Values are Strategic” has just been released. Given my 23 years with the company, the values I espouse for Maver Management and for our clients are among those covered in detail in the book. We were all grounded similarly. The book tells personal stories of how the basic values of Procter & Gamble transformed leadership at Fortune 500 companies. The track record for most senior P&G executives, both with P&G or subsequently with other companies, has been outstanding.

Adherence to Core Values, such as the ones below, has been instrumental in that success. Here are the Procter & Gamble Core Values:

People - We attract and recruit the finest people in the world. We build our organization from within, promoting and rewarding people without regard to any difference unrelated to performance. We act on the conviction that the men and women of Procter & Gamble will always be our most important asset.

Leadership - We are all leaders in our area of responsibility, with a deep commitment to deliver leadership results. We have a clear vision of where we are going. We focus our goals to achieve leadership objectives and strategies.

Ownership - We accept personal accountability to meet the business needs, improve our systems, and help others improve their effectiveness. We all act like owners, treating the company's assets as our own and behaving with the company's long-term success in mind.

Integrity - We always try to do the right thing. We are honest and straight-forward with each other. We operate within the letter and spirit of the law. We uphold the values and principles of P&G in every action and decision. We are data-based and intellectually honest in advocating proposals, including recognizing risks.

Trust - We are determined to be the best at doing what matters most. We have a healthy dissatisfaction with the status quo. We have a compelling desire to improve and to win in the marketplace.

Passion for Winning - We respect our P&G colleagues, customers, and consumers and treat them as we want to be treated. We have confidence in each other's capabilities and intentions. We believe that people work best when there is a foundation of trust.

Do Procter & Gamble’s Core Values help you understand the base upon which P&G has built a multi-billion dollar global business? Interestingly, if you review the histories of the company, you will find that these Core Values, stated in some form, have been consistent throughout the 150 years that the company has existed.

Do these values trigger opportunities or ideas for you with your company? If we can help you define your Core Values and make them a sound basis for your strategic planning, contact us. We have had great success with companies from Fortune Top 10 to startups.

Thanks

John


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

Lessons from Procter & Gamble – Persuasively Selling Their Brands

There are many different selling formats and yet all of them that have been successful are based on the problem – solution idea. First, crystalize the problem that the buyer is facing and get agreement to the problem and then offer your solution, which is of course based on your brands. At Procter & Gamble this has been honed to a fine art by salespeople. They call it the Persuasive Selling Format. At Clorox, it is called SIERE. At other companies it may be called the 5 Selling Steps. But they all are virtually identical.

All sales people have these 5 steps memorized and I can still recall them now after 30 plus years. In fact I can recall when I skipped a step and lost the sale too. Here is how it works.

Summarize the Situation – After the opening ice breaker chat, identify a problem that either has been identified by the buyer on a previous call or is generic to their situation. You can also share key facts, information or industry trends to set up the discussion. It is important that the problem be easy to agree with and not be controversial. You do not want to spend a lot of time on the problem. You need to sell the solution. This set up gets the buyer nodding in agreement with you and hopefully you can keep that happening as you work down to the order.

State the Idea - Tell them a brief statement of the idea that you are recommending as a solution to their problem in a way that makes it compelling. Keep this brief and get a quick nod that they understand your idea. They may not agree with it YET but they must at least understand it.

Explain How It Works – Once you’ve clearly stated the proposition, provide details of the recommendation. Typically, this includes information about the product, the promotion, the support being provided, the pricing and the execution timing and logistics. Provide the information in “layers”. That means, give them the summarized version of each element of the information and if they require more provide what is necessary. Many, many sales have been lost by clouding the issue in the buyer’s mind at this point or providing so many details that they tune out and you lose them.

Reinforce Key Benefits – What’s in it for them? How does this really solve the problem they are having or the opportunity upon which they want to capitalize? What are the key reasons that they should accept your idea and recommendation and move forward? Experience shows that there are always three solid reasons to offer to the buyer. That provides enough strength and doesn’t cloud the issue with weak support. It causes you and the buyer to focus and be memorable. The buyer should be nodding agreement to each of the benefits as they understand them.

Suggest Easy Next Steps –The Close, the Close!!!! The most effective method to work into the Close is to suggest an easy next step that makes the buyer continue to nod agreement. To some extent this calls for an assumptive close, where you assume the buyer is going to agree with the basic proposal and now you are ironing out some small detail. It can be as simple as asking, “Do you want this Wednesday or Thursday? Do you want this in red or blue?” Once you have agreement to that easy next step just write up the order.

This works. Take it from my personal experience and the experience of tens of thousands of others as well. This doesn’t apply only to selling products to buyers at companies. It applies to all selling situations. I know that the technical folks will say that the B2B sale is different. Yes it is, but the same idea works there as well. I have used this technique in many different situations.
If you want more information on this lesson from Procter & Gamble or on any of the others in this series, contact us. We will be happy to help you.

Thanks,

John

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

Lessons from Procter & Gamble – Clear, Concise Communication

Procter & Gamble has long been known for its “one page memo”. There are a number of important reasons why this idea has proven to be so successful for P&G and none of them have to do with saving paper. Actually, while the memo itself is one page there are generally additional pages of supporting documentation that provide additional information in support of the information included on the first page.

The primary purpose has been assumed to be sending forward the information required for a decision to be made by upper management on some business acceleration idea. Procter & Gamble generally operates in a "bottom up" mentality where the people closest to the business and with the most relevant facts are responsible for leading the management thinking and accelerating the business progress. They do that through recommendations, research summaries and competitive analysis that all follow the one page format.

While the first purpose is to lead management and secure approval, there are other important purposes as well. As a new Brand Assistant significant time is dedicated to your training. As it relates to the one page memo, it is training in being able to think. The brevity of the memo forces the writer to be crystal clear in deciding exactly what they are recommending to accelerate the business and the basis upon which that recommendation is made. The training in this area starts early in your career and is extensive. Forty years later, I still have my first P&G memo. It was rewritten 11 times, each time going forward at least one level of management and then coming back with “suggestions” to improve the conciseness, clarity or communication. As I review this memo, I marvel at the time invested in me and know that this was just average for the number of rewrites required. By the way, the recommendation went to the President of the company and received not only approval but a note saying “well written and very clear memo.”

The next purpose is to facilitate review by upper management. The format is identical for all recommendations and all excessive verbiage is eliminated. This may seem to be unimportant. However, in a company with tens of thousands of employees and many, many business acceleration memos being forwarded every day, the only way to insure proper understanding of the communication is to insist on standardization and brevity.

Finally, the clarity of the communication enables all of the departments who are involved to be clear on what is required in their role to execute the business acceleration idea. They are required to have signed off on the recommendation before it is forwarded to management so that when approved, co-ordinated action can commence immediately.

Frankly, the appreciation for the “one page memo” and all that it achieves increases with the time one is at Procter & Gamble. Its usefulness is proven over and over. Having moved on from P&G to run businesses and other companies, I have seen the value of the clear, concise communication and thinking training pay off in those companies too. Many clients have complimented our company on its ability to cut through the mire of information to clearly define the challenges and opportunities and the business acceleration ideas that can capitalize on those opportunities.

For examples of the one page memo format, send us an email. The contact information is below.

Thanks

John


Procter & Gamble prides itself on providing outstanding training for its people. Actually, it is a necessity, since the company has a strong “promote from within” policy. As a result, there are a number of significant lessons that have been learned over the course of a 23 year career at Procter & Gamble like I had. This is part of a series of articles which will share some of those lessons. If you would like the benefit of this expertise applied to the business acceleration opportunities in your business, contact us.


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

Four Fatal Flaws of Business Planning

The effective development of business plans is drawing a lot of attention these days. In no way does this mean that companies are becoming more effective in their business planning or business plan creation. Many companies claim to be doing regular business planning but most are not. Executives and managers continue to make fundamental mistakes that undermine otherwise well intentioned strategy formulation efforts.

Here are four fatal flaws that consistently creep into business planning processes that if avoided, can significantly improve both the process and the results.

Skipping Rigorous Analysis Before Starting On The Actual PlanMany executives and managers believe their business experience and knowledge base alone equips them with all the information they need to conduct effective business planning. This belief is almost always untrue and serves only to undermine the kind of critical thinking from which truly creative strategies are born. This becomes complicated, since most planning is done by a team and all participants come with preconceived notions and differing sets of data on which to base the plans. Having an experienced facilitator with success in business planning is critical. A good business planning process takes full advantage of the numerous tools of strategic analysis to gain key insights regarding how the industry is evolving, how competitors are changing positions, and where an individual firm's sources of competitive advantage lie. Don’t ever overlook the critical role of defining the company’s Core Purpose and Core Values before you start.

Believing Strategy Can Be Built in a DayMany executive teams earnestly believe that effective strategies can be identified, explored, and agreed upon during abbreviated offsite meetings where the main driver of the agenda is the timing of snack breaks. While offsite meetings are useful forums in which to share information and address key issues, meetings should be adequately timed over days or weeks if necessary, so that sufficient preparation, review and discussion can occur before and during the event. We have found that breaking the process into multiple sessions, each with assigned pre-work, allow participants to reflect on the work being done in less pressured surroundings and provide clearer input to the plans.

Failing to Link Business Planning with Strategic ExecutionAccording to a recent survey, execution overall and strategy execution in particular hold the first and second positions when it comes to "top issues" in executive's minds. Executing strategy requires the work of the entire organization, whereas business planning only requires the top team. One of the greatest challenges of the planning team is the ability to link their work with ongoing strategy execution. Strategic success demands a simultaneous view of planning and doing. Managers must be thinking about executing even as they are formulating the plan. They also must find a means of effectively cascading the corporate plan down into the various functions and business units so that all of the work is aligned.

Dodging Strategy Review MeetingsBusiness plans quickly become obsolete when there is no activity in place to keep them alive. Worse, managers sometimes feel freed from execution accountability when reviews are continually rescheduled or dropped from the calendar altogether. Successful businesses have made their business process a continuous and dynamic one. This is a more realistic approach than the once-a-year planning meeting that still dominates many corporate business planning efforts. The most direct way to maintain a consistent focus on strategy is to schedule and hold regular strategy review meetings. At the end of the business plan formulation, managers should establish a strategic governance process where business plan review meetings are scheduled a year in advance. In the meetings, with each of the strategies and tactics having an owner responsible for it, there is accountability. The measures that have been developed provide a strong basis for review of the success of the pan and what may need to be modified to keep on track.

Business planning tied to strong execution is a winning combination. Our clients are enjoying this success. How may we assist you?

Thanks

John

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

Turnaround Management – Tips that work

Is your company in a “turnaround” condition? The common definition of a turnaround is very broad. It is basically about improving performance from one state to a better one. Being in this situation can cover more than just those companies that are about to go under. It can also be companies that have great opportunities for growth ahead of them, but need to change the way they do business in order to capitalize on them. While there are common lessons that apply to all, in this article we will focus on turnarounds from a negative position.

In the recent economic climate, we have become accustomed to companies struggling, with many going out of business. They haven’t been able to control their costs effectively or create the sources of revenue that will sustain the company. The majority of respected surveys put the success rate of turnarounds in these situations at between 20% and 35%, depending on the definition of under-performance and success. Those with turnaround experience know that turnaround situations are usually highly stressful and, if unsuccessful, very poorly rewarded.

Yet, they offer some excellent insights on what is important for a new CEO to consider. Clearly, there are factors that are unique to certain situations but in general these seven factors have led to success in most turnaround situations for troubled companies. For those companies who are not in turnaround mode but need business acceleration, there are some gold nuggets in here too.

1. Identify the real problem.
There are two generic reasons. Either something major went wrong for a short time, usually loss of a dominant customer or a dramatic market change; or something minor went wrong for a long time, usually poor understanding of customer or product profitability, that led to misguided allocation of capital and resources. Given the economic climate, it is tempting to blame market changes when things go wrong. That may also be true. What matters is the need to establish what went wrong and fix it.

2. Take control of time.
Senior teams, and particularly new CEOs, experience relentless demands on their time from all stakeholder groups from the Board, down through the banks, suppliers and customers. At the same time, management is constantly harried by a series of apparently urgent tasks, each of which is critical in its own way. The CEO needs to create breathing space for actually working on the business operation as a whole. While there are the fires to fight, there is also a necessity to protect the time that they and their team need to think, understand the problems in the business, formulate the plan, and implement it.

3. Get the finances under control.
Creating a bottom-up budget and making the team accountable for every part of income and spending. In addition to problems of solvency and profitability, most companies in turnaround situations have issues with liquidity. Whereas profitability can be addressed internally by sensible planning and performance management, liquidity usually requires external support from financiers, ranging from payment holidays through to cash injections. Sources will need to be reassured that there exists a viable business both in the short and mid-term, and that they are not throwing good money after bad. This liquidity brings breathing space that allows management to make calm, rational decisions that support long term survival and profitability.

4. Make promises you know you can keep.
In a turnaround situation, all of the stakeholders are concerned: employees, shareholders, banks, creditors, business partners, customers and suppliers. Increasing their confidence is critical to making any progress. Management has to be proactive and make a series of promises, which it knows it can keep. Hitting these checkpoints is the most effective tool management has to build its credibility.

5. Upgrade the executive team.
New plans almost always require a new team that is committed and able to execute the plan. Seldom is there a dramatic change in the fortunes of a company without a corresponding change in the senior team. This means at least two or three changes in senior personnel and that started with the change in CEO. It should be done quickly and bringing in senior consultants with specific experience is an excellent short term aid.

6. Simplify
Complexity is a double-edged sword in turnarounds. Companies often get into trouble when they take on too much and when they are in trouble they try extra benefits to get out of what they are doing. When resources and time are constrained, the business needs to concentrate on doing a small number of things well. This can mean reducing product lines, cutting or selling business units, outsourcing business processes or numerous other simplifications depending on the situation. The process of simplification needs to go far enough to give the remaining activities the focus of management time and investment required to do them well.

As you are reading this article, you might think that all of these tips are common sense and relatively obvious. However, all of them are also easy to dismiss, overlook or delay. DON”T!!

Let us know how we can assist you. We have experience across a broad range of industries and turnaround situations.

Thanks,

John

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

Core Values are the Basis for Organizational Effectiveness

As you know by now, I spent 23 years at Procter & Gamble, starting at the bottom of the advertising/marketing ladder and with the company’s policy of promoting from within, rose to an executive level. The advantage that I had, as do all P&G employees, is the fact that the core values are known and lived by not only a few in management, but almost everyone around you.

It was easy to see employees, who were dedicated, management who cared about the staff and who knew the business and customers who were loyal. The logic of why this organization worked so well was obvious. It was the solid foundations on which this corporate structure was built. Those foundations were the corporate values. However, they were not mentioned overtly. Nor were they written up on any brass plaques or signs hanging on the walls. But evident they were. How did this organization succeed in having “everyone singing from the same book”? The answer lies in the nature and extent of the training that all staff experienced and shown daily by all around who served as role models.

Some management writers have coined the phrase “walking the talk”. It is intended to mean that management, and particularly top management, must model the behavior they expect of others. But how often does it happen and more importantly, does it work? As Lebow points out “The only thing that really changes behavior is when the proclaimed values are practiced at every level, including at the top”. The inference can be drawn that not only must managers “do what they say”, but there also must be a collective understanding of “what precisely it is that we should all do”.

In today’s economic environment, spending 23 years with one company is rare. So is the promotion from within concept because it entails training and development investments and the knowledge that much of the benefit is going to go to other companies as employees move on. We have been scripted as consumers and business managers to want “instant” gratification. Hire someone who has the talent and experience based on previous work and companies and utilize them until either they no longer can provide the value or they are lured away by other companies.

I have also found that candidates when evaluating possible employment opportunities with another company seldom consider the values of that company and whether they match with their own value set. Certainly position, title, compensation, perks and expected work are all evaluated Yet the single greatest reason for people moving from one company to another is their lack of fit with company values in one way or another.

Having worked for Procter & Gamble and then Clorox from the time I came out of graduate school, I perhaps foolishly assumed that all companies had positive company values. I quickly found that this wasn’t the case when I moved to my first privately held company. The business results and internal chaos were a direct reflection of ill-defined and often negative company core values.

Most successful companies focus on their core competencies, not to be confused with core vales, at least to some extent and there is a desire to hone those competencies. This leads to the companies instituting MBOs, Quality Circles, TQM, ISO9000+, Benchmarking, Process Engineering, Six Sigma and many others. While all these strategies are based on sound theory, they do not reflect the very nature of why the organization has been successful that of corporate behavior that is based on shared values - the Core Values of the company

We are often asked as we lead the strategic business planning process for clients, why we start with the Core Purpose of the company and the Core Values. All organizations have values, whether they are publicly evident or not. These drive the success of the business plan that we are creating. That success is ultimately dependent on the people in the organization and how well they work and exhibit the Core Values.

By now, you should be convinced of the importance of Core Values and making them a living part of your organization.

BUT!

The questions for you as a leader of your organization, whether at the “C” level or down through manager are:
1 What are your personal Core Values?
2 How well are they known and lived?
3 How do they match up with the Company’s Core Values?

You don’t need a behavioral scientist or an organizational development expert to help you. You and other business people can identify them and then instill them. If you need help, contact us. Core Values provide strong foundations for organizational effectiveness.

Thanks

John

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

Analyzing Your Business Needs - And a Free Offer

Many companies struggle under the weight of large amounts of data. They have been unable to effectively and efficiently turn it into useful information. Worse still, they have not been able to use it to successfully analyze the business and therefore take the steps necessary to either handle the challenges or take advantage of the opportunities.

We have developed a simple questionnaire that we use with our clients to provide a snap shot of the business and can lead to targeted effort on improvements. This may help you analyze your business as well.

Just respond to each statement below with a simple ranking.
1 Strongly Disagree
2 Disagree
3 Neither Agree nor Disagree
4 Agree
5 Strongly Agree

Maver Management Group Business Self Assessment
1. Our business goals are clear and have been communicated to all employees.

2. Our business progress is at or above forecast and is accelerating.

3. We have a written business plan and strategies that are known by all managers and guide their activities.

4. We understand our core competencies and our business plans are built on them.

5. We have identified the key issues facing the company and a specific plan is in place to address each issue.

6. Our company and our products have a clear positioning and it is promoted by Sales and Marketing.

7. There is a clear customer focus across the organization.

8. We are a preferred supplier to our customers.

9. Our revenue and profit is usually very close to forecast.

10. Our financial measures and results are known and understood by all managers.

11. We have clear metrics that measure the progress on each of our business plan strategies and the advancement toward our long term goals.

12. We understand the bottlenecks in our operations and have programs in place to address them.

13. We have a strong development and training program for our personnel.

14. We have alliances with other companies that extend our capabilities cost effectively.

15. New products make up a growing percent of our business and their market introductions are at or ahead of forecast.

If you have ranked any with 1 or 2, you have identified an area of concern. If you have more than two or three statements ranked this way, you may have a significant problem ahead of you. Very few executives have ranked their operations as all 4s or 5s. If you rank your company in this way, you might want to get a second opinion from within your company. Generally, when this happens the others see the business differently.

This should give you a start on identifying the issues that are holding you back and also the areas upon which you might build to accelerate your progress.

Special OfferSince we use this tool regularly, share your results with us and we will provide an analysis of your results free of charge.

We’ll even discount our regular business planning price if we can help you use the analysis to accelerate your business progress.

Try it out!

Thanks.

John


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

Business New Year’s Resolutions

It’s a new year. A new quarter. A new month. And you have enthusiastically thought about how you will make this new time so much better for your company and for you personally. You have a clean slate upon which to write. Well, as they said in that car rental commercial, “Not exactly”. There are a number of carryovers from last year, quarter and month, right?

In fact, it is the carryovers and habits set before that are the major causes of new resolutions and plans not being put in motion or carried out.

Unfortunately, the thoughts are just in your head and unless they are written down in the form of a plan and shared with your organization, the chance of them actually happening is virtually zero.

There must be a concrete change in order to alter the course of events. If you keep on doing the same things, you will keep on getting the same results. It’s not just the definition of insanity; it is what happens to most businesses.

The most effective change is the creation of an updated strategic plan. It can be a plan created from scratch or one that is updated and modified to take into account the current business and industry environment. The Institute for Strategic Planning has found that 73% of companies do not have a written plan that is known throughout the company. No wonder that business continues as it always has.

This is the moment to invest the resources and time to put those new thoughts down in a plan and capitalize on the opportunities in front of you. Many see this as tedious and unproductive effort. Yes, it can be if not done properly or the plan is not acted upon. It needs to have assigned responsibility with measures that cause accountability and retooling of the plans based on in market responses.

Have you done this with your company yet? If not, what is stopping you? You don’t have to be the CEO, although that clearly would help. You can put this into action at any level and your success will attract others to you.

If you need a format, we have a simple one that has proven to work effectively across a broad range of industries. If you need help using it or whatever other format you choose, please contact us. We are experts at this type of work.

Just get started before the slate fills up with old carryovers.

Thanks.

John

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

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

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