add value | No Smoke and Mirrors

88% of Those Surveyed Said Advertising Services Have Become Commoditized? Ad Firms Heal Thy Self!

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I am a problem junkie. I see problems everywhere. Problems are awesome as they provide an opportunity for new solutions that we can monetize. Over the years I have called this “the art of thoughts”. Recently I was on the Advertising Age website and participated in a survey that said 88% of those surveyed feel Ad Agency services have become commoditized.

This really bothered me as one of the favorite companies I helped was an integrated marketing firm in North Canton Ohio called Innis Maggiore . I had hired this firm over the years when I was the VP of Sales and Marketing for a local manufacturer, and when our company was acquired Innis Maggiore group asked me to do what I do, and help them grow. We served a variety of companies from a small Amish furniture maker to MSN.COM , Harry London’s Chocolates, and a local hospital as well as many more. It was easy to help them grow because their work …well it worked, it added measurable value to their clients’ revenues.

(Obviously they never let me help with client copy!)

Honestly, as a buyer of Ad firm services for years I lacked an appreciation of the what goes on behind the scenes. Many times the good firms just made what they do look too easy.The firms I hired would listen to what we needed and produce something that either drove the desired result, usually revenues, or their work had no effect, and I found another firm. Good Ad firm partners like Innis do a great deal of work to ensure their work produces a result. At Innis we often would listen to the client’s objectives, and after the meeting have more questions than answers. So we would go into our clients’ market and interview customers, non customers, and influencers. From these interviews we would gain a better understanding of the problem our clients’ product solves and then we were equipped to turn those amazing creative folks loose on the solution. They say you need to “walk a mile in another man’s shoes…”well having helped this firm gave me a new appreciation for what goes on behind the final work for market leading firms.

Good Ad firms connect to the problem in the market, understand buyers and speak to those personas in a voice that emotionally connects. When I wrote “blame-storming” I referred to an ad that is amazing. Whoever led the creative for this ad connected with something almost every executive has felt in a meeting at some time…”being thrown under the bus”. This firm nailed it so well that it made me feel Direct TV knows me…

What is the value of that kind of creative? Creative that cuts through the noise and gets your message to connect with a targeted buyer persona is not priced as a commodity.

When creative connects so deeply with your buyers that it creates an emotional attachment it shows you have a market leading Ad Firm partner.

Market Losing Ad firms will lower their billable hourly rates and write off more of their hours. They will replace their talented creative’s with young kids fresh out of college to drive down their costs. In a recent Ad Age article it discussed how firms are auctioning their services on EBay, offering free work and crazy low rates to capture large accounts from market leading firms.

If you are running an Ad firm today, you must” heal thy self.” Get out and understand the needs of your customers. Create buyer personas for your customers. For example, in today’s environment it should not shock us that the guy in charge of Ad Firms at P&G comes from a purchasing background. You have a new buyer persona. Like your clients, you now have many more people in the buying decision…make it your quest to understand them! If you speak to him in the voice you used with the past CMO you will fail. Get to know him, how does he make decisions? What are his problems, pain points? Just as you conduct focus groups to verify creative before you kick it off for clients, you need to test your new messaging before you launch your firms’ value proposition.

Or, you can keep playing let’s make a deal and keep complaining about how your accounts “just don’t value your work anymore…” And oh by the way, how is that working for you?

Advertising Age’s Jonah Bloom offered seven steps to fight commoditization;

1. Say No

2. Realize you are on the same side as your rivals

3. Specialize

4. Change the cost dialog

5. Accept risk

6. Stop selling ads as a solution to everything

7. Look for new revenue streams

Markets will always have bottom feeders doing stupid things, and rarely do they survive. It is your job to rise up and connect to your client’s needs of today and your firm will survive. If your entire business model is selling ads alone, then you are in trouble. When was the last time an Ad made you take action and buy something? An Ad may play a role in the overall buyer process, but buyers today are doing much more than waiting for the perfect ad to solve their problems. If your model feels like it has become commoditized it is because your customers have lost the connection between your work and the results your work produces. If all you have been “pitching” are more and more Ad’s then they have also lost trust in you.You are speaking to new buyer personas that make buying decisions differently than your buyers in the past. If you are selling a “one size fits all solution” in ads alone, you will fail.

I need to check in with Dick Maggiore. I learned a great deal working with his amazing team. Get to know the customer, buyer and users and speak to them authentically about how you solve their problems… my guess is Dick is struggling more with turning away clients than commoditizing his services.

Are You “Spinning” the Wrong Marketing and Sales Formula and getting nowhere fast?

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I have been trying to lose weight for years as I discussed in my post: Do you need to “Detox “your business before it can hit your goals? If you have struggled with your weight as I have, you know it is very frustrating. I have tried a number of diets and workouts independently .One of the workouts I tried was “Spinning”. If you have not tried it, spinning is a very intense workout on a stationary bike. It was not unusual for my heart rate to exceed 160 beats per minute and the calorie counter would show 600-750 calories burned in each workout

When I first started spinning, I did lose some weight. After a few weeks of spinning my weight loss hit a plateau. So what do we do in situations like this? Well type A’s like me…we work harder! I added more resistance to the stationary bike and after the 50 minute spinning class I would go into the weight room and work out for another hour. Again, I saw some weight loss and again I quickly hit another plateau…very frustrating.

What I lacked was the right formula for weight loss. To have sustainable, repeatable weight loss the formula is 65% your food intake and 35% your activity level, your workouts. One without the other and you will not reach your goals.That explained why working out harder and not significantly changing my diet did not help me achieve my weight loss goals.

This reminded me of how most businesses lack or have the wrong formula for sales and marketing. I have worked with businesses in different industries and varying sized revenues; from under $1 million to $300 million, as well as over a billion and I have seen teams frustrated in each. They keep working harder, spinning faster and faster in sales adding more training but 40% still miss achieving their sales goals. They lack the correct formula to feed (marketing) their sales in relation to their selling activities.

When I worked for Frito-Lay I was fresh out of college. I would say the formula back then was; 30% marketing and 70% sales and service. Marketing did research and generated brochures and sales would pick and choose the tools we thought would work. Frequently we would create our own tools borrowing what we liked from what marketing created. This model may have made the marketing team at Frito-Lay cringe, but it worked in the 1980’s. My Unit of route salesmen realized huge sales gains year over year and our team was recognized in Frito-Lay’s national magazine with yours truly standing in front of a bridge display we sold to Giant Eagle stores that spanned the entire back of their store for July 4^th weekend.

That formula; 30% marketing/70% “bare knuckle selling” worked in the 1980’s The problem today that is the 30% marketing/70% sales formula is dated and backwards. The change that caused this formula to flip flop was the internet. The advent of the internet changed how buyers gain information. Salespeople are no longer the” keepers of the product knowledge keys”. Buyers now demand; instant, accurate, authentic information at their finger tips 24/7. Not only must we provide this, but we must provide product information in the voice of the buyer so they quickly can find solutions to the problem(s) they are trying to solve. Fail to clearly state the problems you solve and the buyer “clicks” their way on to the next website.One of marketing’s key roles is now sales enablement.

Today the formula for most businesses should be 70% marketing and 30% sales and service.

Peter Ducker said: “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.” To achieve this definition a considerable amount of time must be spent in understanding your market.

Buyers like to buy; they do not like being sold. (Truth be told they probably didn’t like being sold a bridge display that spanned 15 isles) Sales today have a responsibility to start conversations and lead buyers throughout their buying process until they are ready to buy. Salespeople must now “serve” their clients as opposed to “sell” them. I discussed the top concerns buyers had with salespeople in my post titled: WARNING: Buyer’s say what salespeople do wrong? PRICE is not on the list! Buyers today want salespeople to listen and understand their problems before presenting what’s in their bag.

When I speak of “sales” and “marketing” I am discussing the roles and not titles and people. In some of the smaller companies I have served my title was “VP of sales” but I performed a marketing role in identifying customer needs and pain points. The smaller companies I have helped did not have marketing departments and we outsourced the development of sales tools to ad agencies. As companies grow they segment and define roles more clearly. I really do not care what you call the person that does it, but someone must understand your market and how your buyer’s buy.

How your buyers buy has changed since the 1980’s and market leaders have already made the sales and marketing flip flop to insure buyers move quickly through their process to a sale.

Stop “Spinning” the wrong sales and marketing formula, working out harder and harder only to miss your goals.

Find out how your buyers buy and create a winning formula for how your buyers buy today…

… or keep spinning with your heart rate racing while your competitors adjust their formulas to the market of today and leave you in their dust.

How about your company…

If you had to guess, what % is your companies’ energies are spent in the roles of sales and marketing?

Are you still “bare knuckle selling” or are you helping buyers find you, and supplying what they need to buy from you?

Do you know how your buyers buy?

Do you need to “Detox“ your business before it can hit your goals?

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About twelve weeks ago I had a wakeup call. I had my regular check up with my doctor and he informed me I needed to have a prescription for high blood pressure. It seems my blood pressure was dangerously high and if not addressed could lead to a stroke or heart attack. I am not a big fan of taking medication that addresses the symptom and not the cause, so I asked the doctor what I should do. He reviewed my folder and looked me square in the eye and said “you need to lose weight, I don’t know if you realize it but over the last seven years you have gained over 50 lbs…loosing this weight would be a great start.” What the doctor did not know was that I was working out three times per week but just couldn’t lose the weight this time.

A friend had a noticeable weight loss (70lbs) recently so I asked Dave what was his secret? Without hesitation he said “Medifast” and he gave me the phone number of their local office. When I met the counselor she started by asking me a number of questions, taking my blood pressure and handing me a prescription for blood work I needed to have done at a local clinic. The counselor then explained the weight loss process will begin with a week of “detox” .

Instantly my mind raced and I became apprehensive and anxious. I thought of the infomercials from television about detox programs and how John Wayne was supposed to have had over 20lbs of undigested toxins in his system when he died. I started to worry about the process and how uncomfortable it probably would be.

The counselor obviously has seen the look I now had on my face before, so she started to educate me about how our bodies work. Our bodies were designed to be amazing efficient machines. We are designed to consume food that contains essential vitamins and minerals to keep us alive and full of energy. What happens through poor food choices, stress, and bad lifestyle choices is we accumulate toxins over time. Toxins significantly impair the efficiency our bodies were meant to operate in. Toxins surround fat cells and if left unchecked, prevent our bodies from metabolizing stored fat for energy. One result is we consume more food and do not burn the stored energy reserves as we were designed, and coupled with inactivity we gain weight.

When we detox our bodies we help clean out accumulated toxins and bring our bodies back to the efficiency we were designed for. In addition to now accessing fat cells for energy, your body will absorb vitamins and nutrients as is was designed and need to eat less.

Since starting the program with the m’lis suppliments eight weeks ago, I have lost just over 30 lbs and I have noticeably more energy, I’m wearing clothes I have not worn in years, and most importantly I no longer need to have a prescription for high blood pressure. The detox process prepared me, my body, to achieve my desired goals.

As I went through the week of detox it made me reflect how a number of the businesses I have helped over the years needed to detox before I could truly help them. Businesses accumulate toxins and by not actively participating in their markets they lose their effectiveness and become sluggish. They find their gut and intuition is not producing desired results. As I reflect about the process I have used to help companies over the years I noticed they often followed a predictable series of steps;

1. They ask for help, something is off; a missed goal, poor performance of key indicators…, they learn what it would take in commitment, time, cost, and they postpone or choose not to change…live with it hoping the problem, the pain, goes away on its own

2. Wake up call, something happens; having to use their line of credit to make payroll, they lose a key account (or two), a competitor launches an amazing new product that obsoletes their cash cow, poor EBITDA, or the board gives the leaders a timeline for improvement.

3. They commit to change

4. We go into their market, find out why people do business with them, find out why others do not, and gain the markets’ perception of what this company does and does not do.

5. Discover market problems no one is solving

6. If the business has a solution that solves unresolved problems, reposition it in the markets’ voice based on the problems this product or solution solves

7. Identify roadblocks, how easy or hard is it for your clients to do business with you? Identify the “flaming hoops “customers need to jump through, and tear them down

8. Detox- the entire team, flush all the old , dated , beliefs and clean the business from within of all the roadblocks preventing the efficient absorption of revenues and profits. One area that grows fat and becomes less effective is often marketing. I discussed this in my post; “Skubala” Marketing. Sometimes it is actually team members we need to deter as Art Petty identified in his blog post Detoxing Your Team.

9. Create new product solutions if your current offering does not solve the unresolved problems you discover

10. Collect testimonials of clients, in their words ( do not “marcom” their words) that describe the problem they had and how your product solved it

11. Tell, tell everyone in the market the problems you solve

12. Start absorbing the new revenues of a healthy business

13. Plan to detox your business frequently as markets change

If your business is not healthy today, you are not alone. The current economic condition was a wakeup call for a number of businesses. As Kristen Zhivago identifies in her blog post Bravery and your Revenue, it takes a brave CEO to operate in the “beyond the call” mode. For a number of teams they learned their business was not as healthy as it outwardly appeared in good economic times, times when the phone just seemed to ring and they were in call mode. Good economic times do not push us, stress us, and test the overall health of our business. Just as a stress test or a blood pressure cuff can provide an early warning to a potentially fatal problem in the future, tough economic conditions show us the weak points, the kinks in our corporate armor that must be improved.

The majority of the teams I have worked with needed to detox, flush their old beliefs, and inside out perceptions ,processes, and their “company speak” prior to being positioned for explosive growth. The most common way of detoxing your business is to seek the truth. You find truth in your market asking questions , not sitting around board tables starting sentences with; “I think” or my personal favorite “ when I ran _____( you fill in the blank) 10 years ago we …..” That probably worked great 10 years ago and that is why you now hold a leadership role. But guess what, the market has changed! Once the business completes the detox process they are positioned to become healthy, and ultimately a market leader in their space.

If you cheat and try to cut corners, not flush all the toxins from your business you will only postpone your future profits and shareholder value. If you don’t flush the dated perceptions, non contributing team members, policies and procedures that serve your team, but feel like flaming hoops to jump through for your customers, your business will remain inefficient, ineffective and could, if left untreated …die.

So do me a favor, start detoxing your business today and your team will become more efficient, effective and ultimately a market leader. Market leaders have higher gross profits, grow 2X that of competitors, have higher morale, and valued higher.

Most competitors will choose to be lazy and keep carrying around the dead weight of old assumptions that suck the life out of their growth, profitability, and their market value as an organization.

A couple of questions for you:

What Toxins has your business accumulated over the years?

What symptoms have you seen over the last nine months that were a wakeup call for you and your team?

If you choose not to detox, what is the reason? What are you afraid of?

Do you have team members that need to be detoxed?

How healthy is your bottom line?

13 “old school” steps to hiring the right independent sales representative

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I have worked with independent sales representative firms throughout my career and wanted to share how I found firms that produce rapid results. These results include increased sales revenues, market share, and rapid strategic account product placements. As I discussed in my previous post “Should you hire Independent Sales Representatives?” before you hire an independent sales representative (ISR) you must understand the role they play as well as the role you will play supporting their efforts. For example, good ISR’s have a close network of buyer relationships and lines of complimentary products. Their goal is to sell as many of their product lines to the buyers they have built trusted relationships with over the years. ISR’s rapidly increase your speed to market and placement. At the same time they are “independent” if they wanted to be “managed” they would not own their own business.

So how do you hire the right ISR for you? Today there are many online tools to help you find ISR’s, from online rep finders to blogs and legal sites that even provide templates for ISR contracts. However sometimes the ways we did things prior to the internet, prior to the availability of so many tech based tools is still the best way. Below are the ten steps I learned to use over 15 years of experience on how to find top producing ISR’s.

1. Identify the accounts you want to sell in a region

2. Determine the appropriate buyers who purchase your product category at each account

3. Call each buyer, explain you are planning on hiring a independent representative and ask what are the top three firms you would recommend

4. Review your current markets where you have independent representatives and what complimentary product lines do your high performing firms have?

5. Call the sales managers at these complimentary firms. Ask them who they hired in the market(s) you plan on developing, and who they would not recommend and why

6. Take the lists you now have and prepare a letter of inquiry to introduce your company, your products, and the sales opportunity to the various ISR’s. Ask them to respond by a specific date with a presentation of their firm, the lines they currently carry and any other information you require.

7. Note the firms that called to confirm you received their information and asked if you had any questions. Weight them higher than those that do not follow up.

8. Sort all the responses and weight them with buyer and other manufacturer referrals. Review the lines they represent. Do not quickly dismiss firms that have competing products to yours as good independent firms will drop poor performing lines for product lines with bigger revenue opportunity or bring with them entrance into other strategic accounts within their territory. You may already have a relationship with an account in their market they have not opened, so representing you may open a door to a new relationship and sales opportunity for all their other lines as well.

9. Call the firms you are interested in working with and get a feel for their professionalism and phone presence

10. Book a Hotel room with an attached meeting room in the desired market and meet with all your top candidates. Request that not only firm principals attend but also some of their salespeople. A mistake many firms make is hiring an ISR based on meeting the principal of the firm, and they actually work with a team of different people.

11. How well did the firms you met with sell their firm and the value they can add to your organization?

12. Listen to your gut. Ask yourself honestly: How well does this firm match our team’s culture?

13. You also need to insure your product line will not get lost in their portfolio of products. How important will your product line be to this firm? Will your line provide 10%-20% of their overall commissions or will you “just pay their light bill?”

The above steps consistently produced high performing ISR’s in the markets I have served. It may seem like a lot of upfront work, however I have found the time you spend upfront finding the right firm for you will pay multiple dividends over the years, result in explosive growth quickly and a strategic partner to help your company grow year over year.

How about you…do you have a technique you use to find independent sales representatives?

Are you an independent sales representative? What do you want manufactures to know?

How do you know when it’s time to hire a new firm?

What do you do if a key account says they do not want to work with one of your ISR’s?

What is your policy on “house accounts” in the ISR’s market that you do not pay commissions on?

Should you hire an Independent Sales Representative?…the right firm is a key partner, not a necessary evil

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I recently answered a question on linked in with regards to working with independent sales representative firms (ISR) that is all too common. The Vice President who posted the question mentioned his frustration with independent sales representative firms. He went on to say “how do you hire good representatives as he has to change representatives often, and none seem to be opening new accounts and growing our companies’ market share?” I really do not have enough information at this point to answer his question.

I have hired independent representatives for over 15 years of my career. Good independent representatives are worth their weight in gold. The company that chooses to hire an independent sales force needs to understand the role of these professionals. The main role of independent reps is to use their current relationships, established through supplying complimentary product lines they represent, to get your product placed. They have built trust with buyers in their market, and their relationships with their accounts will ALWAYS be more important than your rep contract…and their relationship with you. Factories come and go, but the accounts in their market limited. Just as you may feel risk when you hire an independent representative firm, the firm actually has a greater risk. Each product line they represent is both an opportunity to become more important to their buyers and increase their income, as well as a risk. Should they agree to represent your products and your company fails to do what they say they would do, and or your product fails to meet your brand promise, the local sales representative not only loses potential commissions, but they run the risk of a break in trust. (Their most important asset they have with buyers)

If you are thinking of hiring independent sales representatives, I would ask you to answer the following questions…

So tell me…

· What market are you in?

· What problem does your product solve for that market?

· The representatives you choose, how did you choose them?

· Did you profile complimentary products that touched the same buyers, and then hired those representatives that had those lines?

· What is your commission structure in relation to the industry, other lines the representative carries?

· When you hired the independent representatives, where did you get their names?

· What % of the independent firms overall income do you represent in relation to the time required to sell your product?

· How well do you know the buying process for your products?

· Do you have sales tools you have developed to help the sales process match the stages of the buying process?

· Do you have written buyer personas?

· How does your competitor(s) sell? Direct, or with independent representatives?

· Did you hire them with base revenue in each market, or will they only “eat what they kill”?

· Do you have any “house” accounts in their market?… you know, the big guys you don’t pay independent representatives commissions for?

If independent sales representatives wanted to be “managed” they wouldn’t be “independent.” As a manufacturer, a “factory” your role is to provide products that solve unresolved market problems. Your job is to understand the market potential for your product and build obtainable goals from the market up. Unfortunately the majority of factories establish goals by extrapolation. (In other markets we have sold z units, and you have y number of those accounts, so your goal should be z times y…right? Wrong!

I am looking forward to hearing from those companies contemplating the hiring of independent sales representatives.

Please answer a few questions for me;

How did you establish the goals for their territory? Was the independent firm involved in the building of the territory goals?

Do you have written buyer personas?

Have you mapped the buying process?

Do you know the sales process for selling your products?

Have you identified sales tools for the steps each persona takes in the buying process?

If you answered “no” to any (all) of the above then your problem is not finding the right independent sales firm, it is what you lack, and it is how you have set your sales representatives up to fail. Independent sales representative have instant access to goal achieving accounts if equipped and set up to win. What independent sales representative are not…they are not magicians, nor are they your product management, development or marketing.

In my next post I will share how to find and hire independent representatives that add tremendous value quickly. I will discuss how hiring the right independent firm is the most cost effective investment you will make. I will discuss how even the biggest bean counting CFO will be thrilled with the ROI produced by independent sales representative firms.

Want to add value to your bottom-line quickly?…Hire a Heretic!

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In Art Kleiner’s book titled: The Age of Heretics , Kleiner‘s definition of a heretic as: “a visionary who creates change in large-scale companies balancing contrary truths they can’t deny against their loyalty to their organizations.”He discusses how managers get stuck into a rut and need heretics to point out new points of view to get past the deadlock and move forward. Later he describes some as “rebels unwilling to kowtow to the corporate bureaucracy.”

One example of a heretic (and there are many in the book) is Jack Welch who gained a reputation as he climbed the ladder at GE as “ignoring or pushing back against, the bureaucratic strictures of his parent corporation.”

In Art Petty’s recent post this week titled : Help Wanted: Visionaries and Dreamer-Safe Return Doubtful Art refers to individuals who create great works of art on a blank canvas, they run towards adventure instead of away from it. Art goes on to say how we should channel our inner-Shackleton,(after the leader and explorer Ernest Shackleton ) and provides four lessons that apply to the adventurers called Heretics today. It reminded me that some people are cut out for adventure and some are not.

Having played the role of heretic in most of the companies I have served, let me tell you what to expect if you have the guts to hire one. A heretic is someone who will not take the easy road agreeing with key influencers throughout your organization. Obviously if what your key influencers are saying and or doing is in alignment with market needs they will, but if they hear something that is inconsistent with the vision of the organization or market needs they will tell you. Team members may feel this is a lack of loyalty. However to the contrary a heretic is singularly focused and loyal to one objective and that is adding bottom-line value to the team he serves, to aligning the organization to win profitably in their market. They will tell the CEO for example that his recent directive to the troops is not in alignment with market needs nor the core values and mission of the organization. He will remind the CEO that the mission statement is as much about what you will not do as much as what you will focus on.

A heretic does not know, or more importantly does not care, your VP of Marketing is your sister in law. He does not know or care that your VP of Sales was your fraternity brother at Ohio State, but he will tell you if that VP is not demonstrating the ability to lead his team in a direction aligned with market needs and your vision. A heretic will come into your organization and ask a lot of questions. Some of his questions will make you uncomfortable and definitely rock the foundations of some silos that have built throughout your organization. How will you as the leader of your organization know? You will recognize incoming torpedoes when you see them. If key influencers and leaders in your organization start using their relationship with you to shoot torpedoes at “the new guy” you know he’s asking uncomfortable questions.

The heretic will then want to spend a great deal of time in your market finding what he does not know. They may ride along with sales people, and often may engage with your customers on their own…LET THEM! Sales will balk, marketing will object, finance may say it’s too expensive, but let him dive into your market asking questions. What you will find if you shadow him ( and I strongly encourage CEO’s to do so) is he has an innate ability to make people feel comfortable and get customers talking. When you listen to him you will hear open ended questions, not questions to validate a current corporate understanding. He will seek to get to “why’s” much more that “what” and he really does not care about “who” . Who did that? Who said that?…He’s not out to find who did things wrong, but he seeks to gain an understanding of the market and its problems.

After spending time in your various departments, (and I should mention he will not just speak with leaders, but every level throughout the team) and spending time in your market with customers, non customers and market influencers… the fun begins.

The easy part is they will share with you what you are doing well, but not in his opinion, but the voice of the markets’. He will also share gaps, misalignments like poor positioning, branding, or a lack of sales tools to support the buying process he observed. He may hold your customer service or quality department’s feet to the fire over interruptions he found in speaking with your team and your market.

Heretics reshape organizations to be market focused and thus the organizations become market leaders. Market leading companies are over 30% more profitable, grow faster, have higher customer satisfaction and higher morale.Their radical thinking throughout history has reshaped corporate management ( and our society) as we know it today, and they will create the market leading organizations of tomorrow.

So how about your organization, how do you know if you need to hire a heretic?

1. Lack of EBITDA growth

2. Your leaders speak in terms like “I think” verse sharing authentic market feedback and data

3. No one on your team challenges you as the leader

4. Your team has many meetings but you do not discuss topics that matter

5. Your salespeople sell your product or service like it is a commodity

6. The last two product launches failed to meet ROI projections

7. Your salespeople are creating their own sales tools

8. Your leadership team spends more time covering their own butts that talking about growing your business

9. If you are on your third advertizing firm in 18 months

10. If you answered a question with something like; “because that’s the way do things here…” in the last three months

11. If your competitor just released something that seems to “be selling itself” instead of your team introducing it

12. If the distribution of marketing funds to various vehicles like; print, web, trade shows, direct, social media, has not changed in the last 12 months

13. If reading this post made you feel uncomfortable

What are some other signs that companies should intentionally hire a heretic?

How would a heretic be received in your organization?

As the CEO, what’s more important …increasing the economic value of the corporation, or being the one who has all the answers?

Is your business bleeding?… Three back to basics triage steps to stop the bleeding

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If your revenues are off as of late you are not alone. However knowing others are struggling does not help you know where to make adjustments to achieve your corporate objectives, or for smaller companies to help you make payroll. I call this looking for the real “why.” Once you determine the true “why(s)” you can make strategic corrections and adjustments to correct your business.So what should you do if your business is bleeding today? It may feel like death by a thousand cuts, but I can assure you it is always one of three ailments.

Over the years, when your business was booming you really did not need to be that good. I know that disturbs some people, but the tendency for some is to have taken a position of; “do I know where the business is coming from and why people buy from me? ..Why should I care as long as it keeps coming in?” (as described by one of my customers years ago.) Well, now is the time they are caring.

There are three back to basics business triage reviews I always asses. If you are not achieving your revenue targets your business is bleeding in one, or a combination of the below;

1. Product

2. The market

3. Your team

Product

Do you have a product problem? What problem does your product solve? How well does it solve this problem? What have your customers been saying lately? Is your product the perfect solution for an unresolved market problem?

Market

Do you have a market problem? Do you have a market or solution for one customer? How pervasive is the problem you solve in your market? What new conditions has your market experienced? Has your market experienced any new market dynamics like new competitors, government regulations, environmental factors, technology changes? Does your market feel the problem you solve is urgent? Does your market have the ability to pay for your solution? ( a word of caution, too quickly leaders determine they are bleeding due to a market problem, be careful)

Your team

If your product is a perfect solution (determined by the market) and the market is urgently looking for someone to solve their problem with cash in hand, then your problem is your team. This is one of the most difficult areas to adjust. The quickest indicator I look for is how market driven your team is overall. How focused and passionate are they to serving the market? Does your team possess the skill set required for the market of today? As is often the case some team members provided tremendous value in the past, but now lack the experience or training to meet the market needs of today. In a Fortune article recently it discussed how market leading companies are always training their team members in good times and bad.

Here’s a shocker for some CEO’s …you are a part of the team too!

If you have a product that perfectly solves and unresolved market problem, and a market that desires to pay someone to solve the problem your product solves, and you have an amazing team….then the problem may be you. Ouch!..that hurts , how do you know if you are the problem? You need to ask yourself some tough questions;

How well does your experience and training match the needs of your team and your market?

What area do you feel is your strength?

What area is your weakness?

What skill does your business need today?

What steps have you taken, and or are you taking to offset your weakness and or the needs of your business?

leaders know their strengths and humbly admit their weaknesses. Top leaders are committed to continuously improving their abilities to better serve their internal and external customers. This is accomplished through growing our abilities and balancing our teams with leaders who compliment our weaknesses.

It’s time you go back to basics and perform honest triage if you find your business bleeding.