At this early point of 2010, it may seem acceptable that execution is not being tracked, managed and solved. What is your plan to ensure that you are on track, minimize surprises and deliver on strategic commitments?
How do you ensure that:
• execution is actively monitored and managed,
• conflicts and disconnects are quickly resolved,
• resources are effectively redeployed
• everyone knows where their effort plugs into results.
Strategy Execution GPS
Strategy and plan execution is important every year. However, there is less forgiveness in the economic environment for poor implementation. 2010 appears to be the year in which strategy can be more consistent than in 2010 however, undoubtedly, adjustments will have to be made. Executing strategy requires discipline and adjusting strategy places much more importance on knowing where you stand when you want to change direction.
We used to find our way by driving and reading maps to see where to turn. Now that GPS is ubiquitous, there's no excuse for reckless and dangerousmap reading while driving. What is your GPS strategy execution equivalent- the one that tells you how to get to your destination from where you are instead of where you’re supposed to be.
Please leave a comment with your own suggestion and I will incorporate your solution or challenge in my next blog when I answer the question about strategy execution GPS ………….to be continued.
Wednesday, January 20, 2010
What is Different About Strategy Execution in 2010?
Strategy and plan execution is important every year. However, there is less forgiveness in the economic environment for poor implementation in 2010.
Very few functions in the company are independent of all the others. Even the senior executive who controls all the functions has difficulty getting a clear view of the strategy implementation that the team spent so much effort deliberating in the 4rth quarter of 2009. The senior executive is the only one that can potentially have transparency into strategy execution and its related dependencies throughout the company, can identify where the roadblocks are and whether success is dependent on one function or dependent on the coordination of multiple functions. If the president doesn't have a clear line of vision whenever it’s needed, then he or she is not able to coordinate the team, move resources, hold managers accountable and solve the traffic jams without first pulling out the magnifying glass and hunter’s cap.
For example, when strategy or account plans go wrong - delivering on the strategic goals may be crucially dependent on other departments. For example if billing is inaccurate, late, and unclear to the customer or if operations cannot deliver the service as promised or training is unavailable to the sales force, then even a well managed account management team is unlikely to overcome those problems and exceed its target. The same could be said for operations, billing, and so on in their narrowly defined responsibilities.
Who’s on First Base? Who’s on Second?
Without a transparent and timely means of tracking progress on strategy execution, it is very difficult to resolve the conflicts between ‘siloed’ departments. Those business conflicts can become personal and debilitate the individual and combined abilities of the management team.
Who has not been in a meeting as a function manager or as the senior executive, listening to the problems and finger-pointing while trying to find the truth at the heart of the issue? Normally, at best, this leads to a fact-finding mission bring on the spreadsheets and the PowerPoint presentations!) but even then, the facts are sometimes difficult to determine. The best strategic plan, the most detailed plan the smartest account leader -- does not deliver the expected results.
Only disciplined execution can deliver results.
At this early point of 2010, it may seem acceptable that execution is not being tracked, managed and solved. What is your plan to ensure?
• execution is actively monitored and managed,
• conflicts and disconnects are quickly resolved,
• resources are effectively redeployed
• everyone knows where their effort plugs into results.
Great Strategy Plus OK Execution = OK Results...maybe
Great Strategy Plus Great Execution = Superior Results
Strategy and plan execution is important every year. However, there is less forgiveness in the economic environment for poor implementation. 2010 appears to be the year in which strategy can be more consistent than in 2009.
Undoubtedly, adjustments will have to be made. A great plan, a great strategy is at high risk if the execution is poorly communicated, sporadically monitored and ineffectively managed.
Very few functions in the company are independent of all the others. Even the senior executive who controls all the functions has difficulty getting a clear view of the strategy implementation that the team spent so much effort deliberating in the 4rth quarter of 2009. The senior executive is the only one that can potentially have transparency into strategy execution and its related dependencies throughout the company, can identify where the roadblocks are and whether success is dependent on one function or dependent on the coordination of multiple functions. If the president doesn't have a clear line of vision whenever it’s needed, then he or she is not able to coordinate the team, move resources, hold managers accountable and solve the traffic jams without first pulling out the magnifying glass and hunter’s cap.
For example, when strategy or account plans go wrong - delivering on the strategic goals may be crucially dependent on other departments. For example if billing is inaccurate, late, and unclear to the customer or if operations cannot deliver the service as promised or training is unavailable to the sales force, then even a well managed account management team is unlikely to overcome those problems and exceed its target. The same could be said for operations, billing, and so on in their narrowly defined responsibilities.
Who’s on First Base? Who’s on Second?
Without a transparent and timely means of tracking progress on strategy execution, it is very difficult to resolve the conflicts between ‘siloed’ departments. Those business conflicts can become personal and debilitate the individual and combined abilities of the management team.
Who has not been in a meeting as a function manager or as the senior executive, listening to the problems and finger-pointing while trying to find the truth at the heart of the issue? Normally, at best, this leads to a fact-finding mission bring on the spreadsheets and the PowerPoint presentations!) but even then, the facts are sometimes difficult to determine. The best strategic plan, the most detailed plan the smartest account leader -- does not deliver the expected results.
Only disciplined execution can deliver results.
At this early point of 2010, it may seem acceptable that execution is not being tracked, managed and solved. What is your plan to ensure?
• execution is actively monitored and managed,
• conflicts and disconnects are quickly resolved,
• resources are effectively redeployed
• everyone knows where their effort plugs into results.
Great Strategy Plus OK Execution = OK Results...maybe
Great Strategy Plus Great Execution = Superior Results
Strategy and plan execution is important every year. However, there is less forgiveness in the economic environment for poor implementation. 2010 appears to be the year in which strategy can be more consistent than in 2009.
Undoubtedly, adjustments will have to be made. A great plan, a great strategy is at high risk if the execution is poorly communicated, sporadically monitored and ineffectively managed.
Dropping the Ball on 2010
Who is dropping the ball?
As I watched the ball drop in Times Square at midnight, I had the same thought I have every year. For those of us with annual enterprise, line-of-business or B2B account management targets - no matter how much we exceeded goals for last year - that ball is resetting us to 2010.
“At 11:59 PM I was 130% of plan but at 12:01 AM, 2010, I’m back to zero!” I’m celebrating – but there is some semi- humorous irony about it. - those on a non-calendar fiscal year ends don’t get to savor the same degree of celebratory irony
It’s only a symbolic zero - as long as the pipeline of strategic execution has been building through actions in the previous month, quarter, and year.
Strategic Execution
In real time though, strategic execution must already have had momentum for many of these commitments to be accomplished in the next year. It’s unfortunate that the lack of real and reliable insight on the status of that year’s strategy execution status provided a weak basis for the commitments being made 12-14 months out.
So it’s just the measurement that resets at midnight -not strategy execution.
As I watched the ball drop in Times Square at midnight, I had the same thought I have every year. For those of us with annual enterprise, line-of-business or B2B account management targets - no matter how much we exceeded goals for last year - that ball is resetting us to 2010.
“At 11:59 PM I was 130% of plan but at 12:01 AM, 2010, I’m back to zero!” I’m celebrating – but there is some semi- humorous irony about it. - those on a non-calendar fiscal year ends don’t get to savor the same degree of celebratory irony
It’s only a symbolic zero - as long as the pipeline of strategic execution has been building through actions in the previous month, quarter, and year.
Strategic Execution
In real time though, strategic execution must already have had momentum for many of these commitments to be accomplished in the next year. It’s unfortunate that the lack of real and reliable insight on the status of that year’s strategy execution status provided a weak basis for the commitments being made 12-14 months out.
So it’s just the measurement that resets at midnight -not strategy execution.
Friday, December 18, 2009
Building Customer Loyalty by Caring
I was recently asked a question about customer reviews from a personal services business. I enjoyed answering the question because it was an interesting application of b2b consulting retention strategies for building customer loyalty. This is probably a much longer answer than he expected but I appreciate his question as a great opportunity to apply some business to business account retention solutions to a personal service business.
The specific question was: as a fitness training expert, when is a good time to survey my clients? What follows is my response.
I'm sure when you start working with a client, you had a good understanding of their needs. However, their goals can change and they may not recognize that’s important for you to know. Something may have evolved in their routine at home, work or family that impacts their goals.
There isn’t necessarily a fixed recurring time to survey your clients but annually would be a minimum. It’s a good idea to re-assess the need to survey more often.
You’re accomplishing one important activity already - asking whether this is the time to review your customer satisfaction, loyalty and needs. There continues to be enough change and uncertainty that you might even want to make a decision monthly. You can also consider a plan that would have you reviewing individual customers formally perhaps, one month after they start your first session, and three months later.
It seems to me that this is the time of year when your clients review personal New Year’s resolutions much like companies review their retention plans. So I'd say this is one of the best times for you to get a reading on your customer loyalty and retention.
For this loyalty survey or interview to work, the client has to believe you care when you ask the questions. Note everything you already know about the client. At the same time you learn from your client, you will find opportunities to demonstrate interest in them and build integrity by enabling their goals. So asking clients what they need and delivering it is not only good research, it also builds loyalty.
There are different ways to get this feedback from customers. It could be an online survey. It could be a questionnaire or a meeting. Ask five or six questions that get to the heart of the matter and give you actionable information. It's also good to include open-ended questions to discover what your client wants you to know. Have an informal conversation with them and include the prepared questions. Follow up with other questions if you want additional details and insights.
A key to B2B account management is to understand your customer’s customer - because THAT is what drives THEIR values.
Even though your client is not a business, your client has ‘customers’ too.
- the spouse who wants your client to get their shape back
-the doctor who told them they need to lose weight
-the boss who wants to see more energy
-the children who want a more active parent
These insights just demonstrate the value of interviewing customers to make sure they're more than just satisfied and if not – what it will take to get them there.
I describe this kind of survey interview as a ‘discovery discussion’. You’ll be surprised by what you learn and the loyalty it can generate.
Brian Shepherd
415-516-8433
San Francisco
brian@accountcaffeine.com
https://www.accountcaffeine.com/
http://www.linkedin.com/in/briansshepherd
The specific question was: as a fitness training expert, when is a good time to survey my clients? What follows is my response.
I'm sure when you start working with a client, you had a good understanding of their needs. However, their goals can change and they may not recognize that’s important for you to know. Something may have evolved in their routine at home, work or family that impacts their goals.
There isn’t necessarily a fixed recurring time to survey your clients but annually would be a minimum. It’s a good idea to re-assess the need to survey more often.
You’re accomplishing one important activity already - asking whether this is the time to review your customer satisfaction, loyalty and needs. There continues to be enough change and uncertainty that you might even want to make a decision monthly. You can also consider a plan that would have you reviewing individual customers formally perhaps, one month after they start your first session, and three months later.
It seems to me that this is the time of year when your clients review personal New Year’s resolutions much like companies review their retention plans. So I'd say this is one of the best times for you to get a reading on your customer loyalty and retention.
For this loyalty survey or interview to work, the client has to believe you care when you ask the questions. Note everything you already know about the client. At the same time you learn from your client, you will find opportunities to demonstrate interest in them and build integrity by enabling their goals. So asking clients what they need and delivering it is not only good research, it also builds loyalty.
There are different ways to get this feedback from customers. It could be an online survey. It could be a questionnaire or a meeting. Ask five or six questions that get to the heart of the matter and give you actionable information. It's also good to include open-ended questions to discover what your client wants you to know. Have an informal conversation with them and include the prepared questions. Follow up with other questions if you want additional details and insights.
A key to B2B account management is to understand your customer’s customer - because THAT is what drives THEIR values.
Even though your client is not a business, your client has ‘customers’ too.
- the spouse who wants your client to get their shape back
-the doctor who told them they need to lose weight
-the boss who wants to see more energy
-the children who want a more active parent
These insights just demonstrate the value of interviewing customers to make sure they're more than just satisfied and if not – what it will take to get them there.
I describe this kind of survey interview as a ‘discovery discussion’. You’ll be surprised by what you learn and the loyalty it can generate.
Brian Shepherd
415-516-8433
San Francisco
brian@accountcaffeine.com
https://www.accountcaffeine.com/
http://www.linkedin.com/in/briansshepherd
Thursday, December 3, 2009
BUILDING B2B CUSTOMER LOYALTY:Make sure the squeaky-wheel accounts don’t get all the oil
A recent article in the Wall Street Journal generated discussion about low value B2B accounts harming the retention of loyal, high-value accounts. Account value is as you define it for your business -- as long as update the definition of your ideal account and apply retention strategies accordingly. When you revise the ‘ideal’ criteria, moving this information throughout the organization among all the functions that touch these accounts, is very important.
Less Than Ideal Accounts
One emerging characteristic that can be a key differentiator is slower payment speed – as the B2B account ties to improve its own cash and assets. If these same accounts are also demanding more product exceptions, service enhancements and order changes, they may no longer be your “ideal” customer.
Unintended Consequences
Many companies are running very lean; handling these exceptions and disputes can disrupt customer service and cause dissatisfaction for the ideal, loyal customers. Deteriorating service to ideal accounts can take the form of delayed response, inattention to detail, poor follow-up and outright errors. All of which can convert your loyal and ideal accounts into vulnerable revenue sources - the worst unintended consequence.
Remedial Homework
I’m not suggesting that troublesome accounts should be ignored, neglected or “fired”. However, it's crucial that while you are trying to transition them back into ideal accounts, the effort is not at the expense of ideal accounts.
So the definition of an ideal account must be current. Sales, service, operations, billing, product development and senior management need to apply it consistently.
And... make sure the squeaky wheels don’t get all the oil!
You can view the Wall Street Journal article here: http://online.wsj.com/article/SB10001424052748704328104574520112839377366.html?mod=article-outset-box
Brian Shepherd
Accountcaffeine.com
Shepherd Consulting LLC
415-516-8433
http://www.linkedin.com/in/briansshepherd
brian@accountcaffeine.com
Less Than Ideal Accounts
One emerging characteristic that can be a key differentiator is slower payment speed – as the B2B account ties to improve its own cash and assets. If these same accounts are also demanding more product exceptions, service enhancements and order changes, they may no longer be your “ideal” customer.
Unintended Consequences
Many companies are running very lean; handling these exceptions and disputes can disrupt customer service and cause dissatisfaction for the ideal, loyal customers. Deteriorating service to ideal accounts can take the form of delayed response, inattention to detail, poor follow-up and outright errors. All of which can convert your loyal and ideal accounts into vulnerable revenue sources - the worst unintended consequence.
Remedial Homework
I’m not suggesting that troublesome accounts should be ignored, neglected or “fired”. However, it's crucial that while you are trying to transition them back into ideal accounts, the effort is not at the expense of ideal accounts.
So the definition of an ideal account must be current. Sales, service, operations, billing, product development and senior management need to apply it consistently.
And... make sure the squeaky wheels don’t get all the oil!
You can view the Wall Street Journal article here: http://online.wsj.com/article/SB10001424052748704328104574520112839377366.html?mod=article-outset-box
Brian Shepherd
Accountcaffeine.com
Shepherd Consulting LLC
415-516-8433
http://www.linkedin.com/in/briansshepherd
brian@accountcaffeine.com
Background: Executive experience managing revenue and key accounts for divisons of large enterprises, midsize and small companies
Efficient problem definition and solution for my clients is due to my broad experience in financial, insurance, mortgage and other service businesses. My adaptation and versatility are the product of varied business cultures, economic cycles, reorganizations, mergers & acquisitions (M&A) leadership changes, startups, downsizing and accelerated growth.
Goal: Leverage my experience and knowledge to enable the success of executives, managers and companies
Efficient problem definition and solution for my clients is due to my broad experience in financial, insurance, mortgage and other service businesses. My adaptation and versatility are the product of varied business cultures, economic cycles, reorganizations, mergers & acquisitions (M&A) leadership changes, startups, downsizing and accelerated growth.
Goal: Leverage my experience and knowledge to enable the success of executives, managers and companies
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