Wednesday, November 7, 2012

I left my magic wand back at the office

Recently in my role of strategic management and business consultant, I visited a new client to discuss how I would help them develop a new business plan and execution model to dramatically increase their sales and profitability.

"We don't really need to go back to these basics, do we?" He asked.  "We did all that SWOT and PEST stuff a few years ago, just after we started up". 

"OK, I said, let's have a look at it, it shouldn't take too long to revisit it and bring it up to date with your current environment, IP, competition and new business opportunities."

"Look at it?  What do you mean?  We didn't write it down..."

We started work on the whiteboard, gathering basic information about the business to enable the SWOT to be developed.

"Do we really need to do all this?" asked the client, "Can't you just tell us what we need to do to make our sales go up?"

Building and growing business isn't entirely rocket science, but it certainly isn't black magic, either.  There are some basic steps to follow, which, when executed properly, can promote the development of new initiatives and will highlight the actions required to make the revenues and profitability grow.

But the client has to cooperate by being involved with the work, and has to want to implement the necessary changes.  It's in their own interest, after all.

And sometimes that means writing stuff down and working off the written documents.

I am reminded of a sign I saw on a technical trainer's desk a few decades ago.

Carved in a solid block of mahogany and finished with gold leaf, it read: Be reasonable. Do it my way.




Thursday, May 26, 2011

MasterChef Eliminations - Not the Right Recipe for The Office

The MasterChef contestants have been formed into two teams, and tasked to set up food stands at Cronulla beach on a Saturday morning to feed 500 Surf Life Saver "Nippers" and their parents. The winner is the team with the most takings by 11:30 AM. Winners get a private masterclass at an exotic location, while losers head back to flamin' grill HQ where someone will be 'eliminated'.

It's all part of the game on MasterChef where the intent of the program is to eventually pick a single winner.

But how often have you seen businesses create - or allow staff to create - artificial internal turf wars between groups that are actually playing for the same team?

Whether the competition is about budgets or resources, or simply to gain the attention of senior management, the business and marketing strategy gets all twisted up in bad execution and someone - or multiple people - end up as casualties who are either eliminated, or who just leave.

It's an epic fail on a corporate scale where the owners or shareholders are left to count the cost. Who let this happen? You did, if you are the management. Or if you stood by, watched, and stayed silent.

The point to take away: Pitting teams against one another in any internal competition must be carefully managed to avoid being left with one man left standing. Fine for MasterChef, but it's not OK for your organisation.

Wednesday, October 13, 2010

It's about the value of the results, not how long the work takes...

Clients often ask how much ASVP Group charges for its services per hour or per day and seem confused when I tell them we do not and will not work that way.

We cannot, because it simply does not make sense. And furthermore, it's a conflict of interest. Why would any client agree to a system for charging them where it is in the supplier's interest to deliver as slowly as possible in order to rack up a bigger bill?

Many lawyers and accountants work this way still - although the practice is starting to earn some strong criticism from the likes of The Hon Wayne Martin, Chief Justice of Western Australia, who proposed a value-based pricing methodology in an address to what was reportedly a stunned legal audience. His Honor said that hourly billing is completely inappropriate and ought to be thrown out in favor of focusing on value.

As part of our engagement process, ASVP Group assesses and agrees with the client on the value inherent in a project before it commences.

Together we can then agree upon a value for our work, which will allow the client to obtain a solid return on its investment in our work on the project.

We can then get on with delivering the target project objectives as efficiently and effectively as possible, with full knowledge of what the final bill will be.

No surprises, fewer delays, and a strong ROI for the client.

What's not to like?