I partner with Supply Chain Visions and Vested Outsourcing to help enterprise companies optimize the strategic value of their outsourcing relationships. We apply research and benchmarks garnered from studying more than 300 outsourcing relationships in the private and public sectors to do three things: Give you an assessment of your current outsourcing relationship, educate you on the principles and practices of Vested Outsourcing, and help you apply these principles and practices to achieve greater success in your organization.

Vested Outsourcing

Posted by admin on February 28th, 2011

I’m very excited to be back in the world of outsourcing helping Kate Vitasek and the Vested Outsourcing and Supply Chain Visions teams disseminate the powerful practices of Vested Outsourcing.  I worked with Kate at Modus Media International in the late 90′s as we wrestled with a classic 900-pound gorilla in a one-sided and very short-term-focused and counter-productive outsourcing relationship, a relationship that sub-optimized the client’s spend on a mind-numbingly enormous scale.  Kate took many of the lessons learned from that experience to lead a team of researchers sponsored by the US Air Force and the University of Tennessee to develop the body of knowledge now known as Vested Outsourcing.

My role will be to help Kate and her team assess the outsourcing relationships of our clients and then coach them through the process of applying the principles and practices of Vested Outsourcing to drive their  business objectives.  Vested Outsourcing goes way beyond transaction pricing to focus on the far more valuable business results that can only be achieved when client and vendor collaborate.  To learn more, please contact me.

Marketing and Ministry

Posted by admin on January 4th, 2011

My high school guidance counselor was right, about one thing.

When I was a junior at Aragon High School in San Mateo, CA, Mr. Franceschi called me in to talk about college. He asked me to name a handful of schools I might like.

“Stanford,” I said.

Here’s the real reason why: A few days earlier I’d seen a front page story in the San Mateo Times reporting a student strike at Stanford.  I don’t remember the reason for the strike.  I do remember the aerial photograph of rooftops full of people.  Naked people.

I wound up going there.  Twice.

But Mr. Franceschi laughed when I said Stanford.  “No way, kid, your grades aren’t good enough.”

I don’t remember feeling offended, and agreed to a battery of tests to figure out what sort of career I might be interested in, a process that he believed might help me choose among the Cal State University campuses or, if I was lucky, a University of California school.

His assessment:  My interests and abilities matched up most closely with sales executives and ministers.

I thought, “Those can’t be more different.”

Well, he was right.  It took me years to realize that both are about delivering messages designed to influence behavior.  Consider the job title “evangelist” that started showing up on Silicon Valley business cards in the 80s.

What made me uncomfortable back then was the stereotype of preachers who push doctrine and warn of punishments.  The stereotypical salesman pushes information about features and provides incentive by lowering price.  Neither approach is either personal or positive, and both generally fail in the long run.

As it turned out, my business career took me pretty close to that sales executive role Mr. Franceschi posited.  I’ve done brand marketing and business development, in big companies and startups.  I’ve literally gone door-to-door selling when I started my own publishing company and I’ve also spent millions on television advertising trying to get people to buy another bag of Fritos.

Regardless of the medium, whether it’s social network marketing, television advertising or guerilla marketing, I learned early to ask, “Will my message break through the marketing clutter to get attention and change behavior?”

More important than the medium is the message.  Does it communicate a benefit from using the product or service offered?  Does it suggest some understanding of the prospect’s real situation?  In those cases where the desired change in behavior might be complex, does the communication offer an easy way to begin?

Same with preaching.  I’m not super religious, but there have been times in my life when I’ve attended some sort of church service, ranging from High Catholic to Buddhist.  The messages that resonated, and the ideas I internalized, came from priests or monks who could talk TO me, not at me.  The best was a Buddhist monk, who made me laugh when he started laughing about the insanity of anger.  “Anger serves no useful purpose whatsoever.  And if you respond to an angry person by getting angry yourself, all you’re doing is throwing gasoline on a fire.”

That monk’s core teaching was about compassion.  Compassion is all about putting yourself in the other person’s situation.  In the case of an angry person, that person is generally suffering.  So rather than react to the anger, seek to understand the suffering.  You can sometimes find a way to reduce that suffering, and thereby reduce the person’s anger.  Both of you benefit.

The parallel with marketing is being customer-centric.  Put yourself in your customer’s situation.  Seek to understand the wants and needs (and, yes, their pain).

Then build your business strategy around that.

Ready, fire, aim: A New Year’s Eve Tool Kit to get the most out of your 2011 initiatives

Posted by admin on November 10th, 2010

With year end coming up, three thoughts:

  • Ready, fire, aim?  Get a fresh perspective on your plans.  So many get thrown together in haste.  A few hours reviewing your goals and plans with an experienced outsider can improve your marketing ROI.
  • Where’s the smoking gun? Every project benefits from a thorough post mortem, whether it was successful or unsuccessful.  It’s often the failures that provide the most learning, but nobody wants to touch them.  Someone with a fresh perspective can turn up conclusions and actionable recommendations, and let your team be heard and contribute to improving new projects.
  • Be careful what you aim for, you may hit it. Too many performance measures flow from internal requirements and miss the essentials, or they’ve just been used too long.  Get a trusted advisor to look at what you have in place and assess whether those metrics still serve you best. Better to find the contradictions or, worse, the perverse incentives that outdated metrics can create, before they undermine your efforts.

Please call me at 206-940-9449 if you or a fellow executive would like some help figuring out where to find the Next Million or would like to learn more about my New Year’s Eve Tool Kit.

Lead your brand-building on line and measure brand strength

Posted by admin on November 9th, 2010

Recent projects have involved companies in telecom (carrier, smartphone manufacturer), e-commerce (multi-channel retailer), supply chain management (parcel delivery) and professional services (market research, social network marketing), this mix reflecting the variety of experiences of a marketing mutt like me.

The retailer in the e-commerce project lost market share because it viewed the internet as just a channel.  Its website no longer communicated brand, only discounts.  Shoppers form their impressions of a brand way before they get to the store, mostly on line.  New management set the direction:  Make the online experience a compelling branding experience.

As they spend tens of millions, how will they know the brand is gaining strength and what tactics are driving those gains?   A client’s consumer research tool – a Brand Strength Monitor — benchmarks brand strength relative to competition, then shows which tactics drive brand awareness, purchase intent and actual purchasing behavior — music to this former CMO’s ears.

Figuring out how to move your target audience through those steps – become aware of you, develop an intent to purchase in your category, and then buy your product – is what I do.

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How do you keep score?

Posted by admin on August 19th, 2010

As you track your company’s growth, what are you counting?  What are the numbers you look at each day?  When I joined Flexcar (now Zipcar, the carsharing company), the key performance metric was the number of hours per day a given car got used.  The management team pressured  local managers to get more hours per car or move “low-performing vehicles” to other locations.  In our discussions about how to grow revenue, we decided to look at drivers.  How many drivers were using what cars how often and for how many hours?

Sales growth depends on getting buyers of your product or service to behave differently than they might otherwise:  Buy vs. not buy, buy again, buy more often, or buy more per order.  In Flexcar’s case, the insight was that you can influence people, but you can’t influence cars.  We changed the way we kept score, counting new drivers, the number of days it took to get a new driver to reserve a car, and the number of days it took for that member to drive again.  We found ways to influence those drivers, and the drivers produced more hours per vehicle.

So check your score-keeping system.  Does it help you focus on doing the most important things you can do to generate sales?  Does it focus you on how to influence people rather than machines?

How to Grow Your Top Line

Posted by admin on August 19th, 2010

There’s no bottom line unless you’ve got a top line.  That’s what I do:  I help you grow your top line, in four ways:

  • I help you get more customers
  • … get your customers to buy more often and to buy more each time they buy from you
  • … take customers from your competition
  • … do all these things at the lowest possible cost – which helps your bottom line, too.

To get more customers, I look at who you’ve got.  Who are they?  Why do they buy from you?  What could you do better?

Who have you lost, and why? If they switched to someone else, why?  How can you win them back?

Those answers get at why someone should buy from you, in the words, phrases and images that change perception and change behavior – because they come from your customers.  Use what you learn to get your customers to perceive you in a certain way, and do things differently:  Buy from you instead of someone else, or instead of doing it themselves.

How do you deliver those words, phrases and images to those you want to influence?  We’ll evaluate all marketing tactics, from advertising to PR to online.  I take a “media-agnostic” approach:  What will work?  And what will produce results at the lowest possible cost?

Once we’ve defined your communications campaign, I’ll coach you on the implementation.  What resources do you need, either internally or externally?  A key hire, a group of vendors?  Then we’ll work on how to manage them.

All along the way, I will focus on teaching you and your staff how to do all of these things.  Because you can never stop growing your top line.

Humility and Discipline

Posted by admin on August 19th, 2010

As business people, we’re expected to be confident and aggressive.  My observation has been that confidence can slip too easily into arrogance, sometimes starting as innocuously as assuming you know what the customer wants.  Being aggressive can often mean going too fast just for the sake of getting moving – building the plane as we’re flying across the ocean.

I firmly subscribe to the philosophy of my first marketing vice president, Leo Kiely:  An 80% solution implemented today is better than a 100% solution that doesn’t get going until next year.  But whether you go with a 60% solution or a 95% percent solution is really a matter of how much risk you’re willing to tolerate and how quickly you can adjust if you got it not quite right.  The discipline comes into play when you ask yourself, “What’s the downside of being wrong?”

Humility, to me, means acknowledging that I can’t possibly know everything and that I might get it wrong.  It means asking questions and soliciting ideas that run counter to my own.  Discipline means putting some analytical rigor into the decision-making process so I know both the upside and the downside, and then creating structures and processes to make sure my plan gets implemented well.

Arrogance and uncoordinated activity reflect mental and organizational habits.  To break those habits, you need a neutral third party who can come in and have a good look and then work with you and your team to analyze, focus, plan and implement.  That takes a little humility and a willingness to impose some discipline on a free-wheeling organization.

The New Temps

Posted by admin on August 19th, 2010

How will you feel when you’ve got your revenue problem solved?  Great! But what’s it going to take?  You probably can’t or don’t want to spend a big six-figure salary to hire someone with the smarts and experience to help you.  Well, you don’t have to.  Get an interim executive.

Personally, I don’t mind if you call me a grayhair.  What I would ask you to do is run the numbers.  Spend $2,000 a day (ouch, I know) for six months (yikes, I hear you) to get …  Well, if I could get you a million in new sales by helping you focus, by crafting a winning communications plan and by coaching your sales and marketing teams to perform, the ROI pencils out at (well, well, well….) 4:1.

Yes, but be prepared:  I’m going to ask lots of questions and question all your assumptions.  I’m going to drag you into face-to-face interactions with your customers and your prospects.  I’m going to put your team through rigorous market research and financial analysis to make sure there’s a there there.  I’m going to challenge you to come up with creative solutions through a structured but fun ideation process.

And I won’t just be sending you emails from my office.  I’m going to roll up my sleeves, loosen my tie and work side by side with you to make it happen.

I don’t pretend to have all the answers.  But I know how to get them, I know how to act on them, and I’ll work with you every step of the way.

The Next Million

Posted by admin on August 19th, 2010

How do you keep score?  Sales?  Profit dollars?  EBITDA?  Followers?  Donations?  Customers?  My job is to help you figure out how to get the next million, no matter how you keep score.  Using a holistic approach, I analyze your current business, identify opportunities and obstacles, and lead you and your team through a creative problem solving process to generate options.  Once you have options, we work on analyzing them in the context of your resources, your capabilities, and marketplace realities.  The next step is an implementation plan, thought through in detail, with an emphasis on putting the right talent in the right roles so they can respond effectively once the plan meets the real world.

So how do you keep score?  And what are the obstacles you face getting the next million?