1- 330-413-8552 Mark@NoSmokeAndMirrors.com

focus

Do you need a “Plan B”? Or are you betting the Farm on a Stretch Goal?

I have to love whoever drives this scooter parked outside of McDonalds Sunday morning. I had a cup of coffee and as I walked to my car, I see this scooter.

Here’s a person who drives a vehicle that what, gets 500 miles to the galloon and they still have a “plan B”? As I walked by I noticed the 2 1/2 gallon gas can strapped to the back.

As I drove away I thought how in these uncertain economic times it is prudent for leaders to have a plan B in case their business runs out of gas. Nothing sucks the energy out of a team like fear. I find when I am fearful I am not creative and I am in a defensive mode and no longer leading. When I wrote Is your leadership in a holding pattern while your team runs out of gas? I discussed how our teams are more fearful than ever before. The Bible is also very clear about fear. Throughout the Bible we are instructed to “fear not”. As a matter of fact the only thing the Bible talks about more than fear is “money”.

Market leaders develop goals that do not require “all the stars to be in alignment” to achieve them. Market leaders have plan B’s in the event the environment changes to insure they achieve their objectives. You can establish stretch goals, and that is healthy for your business and your team members. When we are forced to stretch we grow. Where market losers blow it is when they “bet the farm” on a stretch goal.

How about your business…

Are you asking your team to strive for a stretch goal that requires all the stars to be in alignment (when chances are your own sales and marketing are not on the same page)?

Do you have a Plan B?

Have you shared your Plan B?

What is your team’s greatest fear? And how do you plan to lead them through it?

Gym Socks and the importance of listening to customer concerns

 

My wife and I went for a walk the other evening after work. Although the sun was setting here in Arizona the temperature was still just over 100 degrees. When you walk in the dessert the heat radiates up from the ground. By the time our walk was over I could not wait to get my tennis shoes off. I took off my shoes and then my socks and my wife said “why do you do that?” Not to be too insensitive a husband my response was “do what?” She said that as someone who does the laundry it really irritates her when socks are turned inside out. She explained (as she has done before) how as a child her grandmother would not wash socks turned inside out. I quickly moved into my “overcome objections mode”; I do not care if my socks are washed inside out… they will still get clean…I do not care what I look like at the gym so I will probably wear them inside out…this is not a big deal… However this was not listening nor taking my wife’s feedback seriously.

This discussion reminded me how customers often share little things that annoy them and we quickly move to justifying what we do, or “defending the fortress “instead of listening and making necessary changes. It is my desire to serve my family.to listen to their needs. So although my wife has mentioned her concerns a number of times over the past 24 years, I quickly mentally rationalized the feedback and did not listen and I did not change my behavior. I failed to be intentional about something that obviously concerned someone I cared about. It would take little effort to accommodate her requested change in my behavior. However it would require a change of habit.

Businesses must also be constantly sensing, listening, and observing the needs of the customers you serve. Listening to customer feedback and responding to their needs solidifies your relationship. Your competitors will keep selling. They will keep rationalizing customer concerns and not make changes. Why not be the partner that listens and makes the necessary changes to eliminate frustrations in dealing with you?

 

How about you, what small complaints have your client partners expressed?

 

Is your first reaction to listen or dismiss?

 

Are you turning any customer gym socks inside out?

 

(I need to turn the sock on the left right side out before I put it in the close hamper!)

Attention leaders: Don’t look now but your lack of market knowledge is showing…

 

 

I had coffee with the president of a local business this week. A friend from church recommended he buy me a cup of coffee and chat. I seem to be meeting with a number of business leaders and owners these days that are struggling. Their businesses are in different industries yet they have common problems;

“My business is down, struggling, this economy is killing us. I have our team doing what we did in 93’, but this time it just isn’t working…”

As a leader in your business your entire team is watching you,looking to your leadership.What is new today is your team’s level of fear. Their 401k’s are down. They have many friends and others in their network now unemployed. Your team deals directly with your customers, and they hear their concerns about the economy. They feel the decrease in activity staging orders on the shipping dock. They prepare the financial statements for your leadership team meetings. They are trying to get extended terms from vendors. They are receiving the calls from vendors with past due balances. They are tracking your team’s key indicators more closely than ever before and they are wondering…

 

Will I lose my job?

Should I wait for the shoe to drop, or should I find something else? Should I work on my “plan B”? “Plan C”?

Do our leaders know what they are doing? Will their leadership take us out of this storm?

 

The good news is your team desperately wants to be led. They want to follow a leader who will quiet those inner fears. They want and need a leader to step up and set a course that pulls the company and them out of the current poor performance.

The common problem, regardless of industry that I hear is a lack of current market information to make good decisions. Media Post just released an article by David Koretz titled Cheating Your Way To The Bottom and he discussed how leaders must use facts to make good decisions .Leaders describe how they used to lead sales “back when they ran the North West region…” I am sure the strategies and supporting tactics they described worked back then,….but here’s the common problem:

The market and your buyers have changed. They have changed how they buy and how they shop for solutions to their problems. Yet the plan you are managing with corresponding activities is based on the buyer needs of the past.

Below is a summary of my recent meeting over coffee. By no means am I poking fun at  this struggling leader nor minimizing the troubles he and his company are having. When I decided to start blogging as I stated in my about page it is my desire to discuss real issues.

So I started our meeting by asking;

“When you ran the North West region and realized so much growth, how did you come up with such good ideas?”

“Well I just knew what to do…it was easy, my customers told me what we needed to do and I went back to corporate and fought for them.”

And now you are corporate?

Yes,… I guess I am, hadn’t thought of it that way

Is anyone fighting for their customers right now and you are shutting them down?

Well yah…

What are they asking for?

You know sales guys…our prices are too high, our quality sucks, and if we would only change the product by adding one more feature….

When was the last time you were in the market, “belly to belly” so to speak with a customer? A user of what you sell?

It’s been a while, but I get weekly reports, and I talk to my sales guys, I feel I am up to date with what’s going on.

Really? What are they telling you about your customers and the problems they are experiencing?

The usual; business is down, no money to invest in their business, just trying to keep their heads above water…you know

Anything new they are struggling with they did not struggle with last year?

Not really, just that business is bad, and they want a lower price and extended terms, I think we have a pretty good handle on what’s going on

When you ran the North West, did you think your boss knew the market and your customers as you?

Well…no (he became noticeably uncomfortable)

I asked a more questions and we agreed he did not have current nor first hand data to answer my questions. Given the importance of turning this business around, we agreed we needed market data.

These conversations seem to have the same next steps…”get out from behind your desk and get into your market and understand it today. After two weeks of meeting with customers and users you will know what to do in today’s environment. You will have first hand, timely market data, and you will be able to make strategic, market driven decisions and provide the leadership your team desires.”

We agreed to meet again when he returns.

What happened next I did not expect, he smiled and said; “you know this would be fun, I have not been having much fun lately.”

How about you?

Are you leading a team?

When was the last time you were “belly to belly “with a customer? A user?

You have the ability to lead your team out of this current economic condition and emerge as a market leader once you have good market data.

(Have you ordered you plane tickets yet?)

Are interruptions “transforming “your customers into shoppers again?

I am a big fan of action movies and the more Sci-Fi the better. I really enjoyed the first Transformers movie and I was anxiously awaiting the second: Revenge of the Fallen…how will they top the first? New villains, maybe 3-D special effects, and so on? I was convinced, based on the first movie I would be captivated again. They helped me establish a brand for the Transformer experience from the cartoons I would watch with my son years ago to their recent special effects of their last release. They set an expectation of a story line that flowed. I expected a great deal of action and special effects and some humor to give me a chance to catch my breath.

However what I experienced was a painful interruption. Unlike the first movie, this one threw in characters that did not support the story line and were actually a painful interruption for me. Interruptions are those elements thrown in to cause a response that add no value other than shock. They create a momentary interruption to grab your attention like a bikini clad model in an ad for spark plugs. Yes, your attention is momentarily grabbed, but for the wrong reason. At one point when one of the transformers were “humping” Megan Fox’s leg they lost me. They lost me because they did not live up to the brand they so carefully established in their cartoons and the first movie when I became a customer, and a fan. They lost me when they tried to get too cute, too funny,” because they could and not because they should”. They lost me when they added adult humor in a movie theater full of young children holding their favorite transformer toys.

 

How about your company…has the desperation to make your numbers caused you to compromise who you are?

 

Can you think of other examples of companies that strayed and could make a comeback?…not made a comeback?

 

What brand broke its promise to you?

 

What are the best ways to find out if you are transforming your loyal customers now shopping for another partner?

 

If you find out your interruptions are transforming your customer base to shoppers, what can you do, if anything to bounce back?

A backpacker’s advice when we feel lost in business…

I was sharing with a friend who is an avid backpacker that a number of clients feel lost in today’s economy. Today is unlike anything they have experienced before and they feel lost. The things that always “worked” before, do not seem to apply now. As we discussed this my friend Jim said “well you know what they teach backpackers? We teach backpackers when they are lost to; STOP.

Sit

Think

Observe

Plan

As I drove home that night I thought how profound that advice is for business leaders and owners today. I see so many business owners thrashing around, busy with tasks (tactics) that they have always done and hope they will change their current circumstance. It is difficult to just stop. Yet the reality of thrashing around without focus only depletes our resources and exhausts us. Exhausted and afraid we are not able to make rational (strategic) decisions which results in our becoming even more lost, and increasing the potential danger. Like a tire stuck in the mud some of us keep pressing the accelerator only to sink deeper into trouble and making more of a mess.

When we STOP, we replace activity and busyness with stillness. We stop depleting resources aimlessly throwing everything at the wall in hopes it sticks and allowing us to conserve our energy for more strategic effort at a later time. In a quiet state we can recognize what resources we have, where we are, where we have been, and accurately assess and observe the reality of the moment. In this state you may choose to make camp and seemingly do nothing. Rescuers will tell you when lost; the best way to be found is to not move. You may notice a landmark you failed to see while thrashing deep in the brush. Once still new options become evident.

When we STOP thrashing around in busyness and we can make our plan. Planning after thinking and being intentional about your future movements or non movement coupled with a thorough understanding of what is reality prepare us to make the most effective and efficient plans.

Plans give us focus, purpose, and an objective to rally behind. When we plan we naturally review a variety of scenarios so we create alternative plans that we may engage as we gather new information or encounter new challenges. The old saying “when we fail to plan we plan to fail “affirms this advice.

How about you? Have you taken the time to STOP over the last six months? If not, how’s that working for you?

Deciding to STOP could be the most valuable exercise you can do for your business and yourself.

Do you know what you don’t know?

When working with another executive inside or outside your organization, where do they fall on the Knowledge Matrix? The answer to this question will quickly guide you on how to work with them on a go forward basis.

Quadrant 1 – Know what they know

Quadrant 2 – Know what they don’t know

Quadrant 3 – Don’t know what they know

Quadrant 4– Don’t know what they don’t know {most dangerous}

 

Of all the types of individuals above the Quadrant 4 executive is the most dangerous as they do not know what they do not know. Why? This individual lacks the emotional intelligence to admit what they do not know and as a result they make bad decisions over and over again. A sign of this type of leadership is a negative trending EBITDA .

As opposed to asking for help or seeking additional research, they guess, they assume, and they make key decisions based on their “gut”. The information they use for key decisions is often dated, and or skewed by an ego that outweighs their desire to win and time in the market many years prior.

For example, how many executives do you know that make decisions based on market research? In a recent survey, marketers admitted that 70% of the decisions are made for new products and or decisions for existing products without market data. Therefore, it should not surprise anyone the high frequency of new business failures and that 2/3 of new products are removed from the market within 18 months.

Far too many executives in leadership roles are “winging it” today when it comes to making decisions to drive their business. I promise you your market , your buyers and the buyer’s process for purchasing have changed over the past six months. We must get back to basics and make decisions with hard data as our budgets lack the wiggle room for poor decision making.

What Quadrant do you find most of your buyers in today?

Plot your leadership team, in what Quadrant do most of your organization’s leaders fall?

Where do you fall?

How can we insure we too do not become the executive in a leadership role who doesn’t know what they don’t know?

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