Don’t waste your 2014 off-site: 3 differences between success and failure

Google

By Peter Browne

With Christmas fast approaching, many companies are planning their New Year Leadership or Sales off-site. Having facilitated numerous company off-sites, and attended many during our corporate careers, we thought it timely to share our thoughts on critical success factors for a successful off-site: an off-site that delivers results.

Few senior leaders would describe their off-sites as complete failures, however rarely do they look back 12 months later and confidently say the event changed the way they do business.

“Would you tell me where to go from here?”

“That depends a good deal on where you want to get to,” said the Cat.

“I don’t much care where-“said Alice

“Then it doesn’t matter which way you go,” said the Cat

Alice in Wonderland

When planning your off-site we have observed that there are 3 things that most companies don’t do. By including these things in your planning you increase the probability the next off-site will deliver lasting outcomes.

1. Have a clear scope: Often companies have an offsite because they have one every year. There isn’t much difference between them. In today’s fast changing environment companies need to take a step back and consider their market and the current issues and opportunities. Is the market changing quickly or is it relatively stable? Is now the time to explore broad strategies, or is it time to hone in on specific urgent priorities for the next 6- 12 months? A clear scope leads to clear objectives and outcomes.
2. Incorporate pre-reading. To get results from your off-site the attendees must turn up ready for the issues to be tackled. Often the first morning of an off-site is wasted as attendees settle in and figure out why they are there. Providing them with relevant pre-reading and issues to consider leading into the off-site means they can hit the ground running. The available time is used more effectively and you’ll make faster progress. However they are time-poor executives, so limit pre-work to the relevant and essential. Be clear that you expect preparation to be completed beforehand.
3. Be ruthless on actions and embed follow up into the program. A long laundry list of “nice to have” actions means no strategic course of action. Have a maximum of 4-10 key initiatives. Plan for follow up within a month of the off-site. This allows time for attendees to better understand what they have committed to and explore the issues with their teams. Importantly it creates a stronger sense of accountability for action.

For more ideas the HBR article “Off-Sites That Work” covers the points we have raised in more detail, and adds a few more for you to consider. http://hbr.org/2006/06/off-sites-that-work/ar/1

A successful off-site can align the senior team, galvanise the group to act and create a sense of purpose. Effective follow up builds organisational self-confidence, momentum and strengthens a company’s competitive position.

So if you are planning your strategy or sales off-site for 2014 and want to make it a success, we hope some of these ideas help. Of course if you need more ideas or help contact us to discuss your business challenges, and how we can help design, facilitate and support the execution of your next offsite. Contact us on +61 (02) 9450 1040 or email peter@gordianbusiness.com.au and look at http://www.gordianbusiness.com.as/customised-strategy-workshop/. We welcome your contribution so please comment below and subscribe to our blog at the top right of the page.

How not to run a two day strategy session [Boring your people to Death by PowerPoint]

Google

By Gary Peacock

An envelope arrives, a letter inviting you to a two-day strategy session for your department.  What’s your reaction? Based on our experience, you will probably groan. One reason you will groan is too many senior managers think a strategy session means locking you in a room for two days and bombarding you with PowerPoint slides.

“I have made this letter longer than usual, only because I have not had the time to make it shorter.”

Blaise Pascal

When we ask senior managers why they do this? They explain it is vital to make sure the managers create strategy that fits the broader company strategy. And of course we cannot disagree with this objective. However, let’s pause for a moment and ask a question…what is one of the biggest challenges in strategy? The biggest problem is implementing strategy.

If you accept that implementing strategy is often a big problem, then let’s consider another question. To implement strategy better, does the audience need more information or does the audience need more motivation?

In our experience, it’s rare an audience needs more information and it’s common an audience needs more motivation. When we say the audience needs more motivation; they are usually interested in the strategy, but if we bombard them continuously with PowerPoint then the audience are not involved.

Let’s assume as a senior manager you bring along the strategy and all you want is to get the group involved in implementing strategy. How can you do that?

First, create a strategy on a page or on a single slide. When we say a strategy on a page, we don’t mean a page of tiny 8 point text that is unreadable, (at least unreadable without binoculars.) We mean a reasonable amount of text in a readable font, ideally no smaller than 14 point. It takes time to get a strategy on a page. But it will save your employees far more time and will increase the chances your strategy will be implemented successfully.

[ASIDE: Of course, some managers will argue they cannot fit their strategy on a page.  May we diplomatically suggest that perhaps this is not a strategy? It might be an action plan or a list of objectives or something else. But it is not a strategy.

A couple of quick elements that should be part of the strategy:

What will the company not do? What will the company do?

Unfortunately, too many strategies do not clearly define what you will not do. So, some company’s strategy is to satisfy as many kinds of customer in as many ways as possible. But this is not a strategy because it does not give direction to employees and it does not help employees set priorities. That’s enough of an aside, back to the process.]

Second, ask the participants: What are the biggest challenges to implementing your strategy? Get the brains in the room to think about the challenges. Give the participants 30 minutes to work as a table and produce a flip chart answering the question.

Third get them to work as a table and create action plans to overcome the challenges.

A good strategy session should be where the participants spend at least 75% of the time discussing and debating between themselves and at the most 25% listening to the senior manager present.

Do this and you will find you have a motivated and energised group who are ready and willing to implement your strategy. Don’t do this and you will finish with sleepy, goggle-eyed participants with no commitment to your strategy. In business and in strategy, you have choices and consequences.  May you make good choices and enjoy good consequences.

“Nobody ever did, or ever will, escape the consequences of his choices.”

Alfred A. Montapert

For help planning and delivering a motivating strategy session take a look at http://gordianbusiness.com.au/persuading-for-results/ or contact us on +61 (02) 9450 1040 or email gary@gordianbusiness.com.au. We welcome your contribution so please comment below and subscribe to our blog at the top right of the page.

Beware of Wolves in Sheep’s Clothing

Google

By Gary Peacock

Are you interested in improving your Strategic Account Management?

Yes, you are interested in Strategic Account Management. So, then you start to browse the internet and look at websites and potential companies to work with. Companies to improve your current processes or to implement a new process. Beware of companies who I would describe as wolves in sheep’s clothing.

"Well, wolves will pretty rarely hunt. You're vulnerable if you're on your own or injured."

Bear Grylls

 So, what does a wolf in sheep’s clothing look like? Well these are companies whose products and services are just to sell products and services.  In short, they are sales training companies who have changed the titles of their workshops and consulting, from sales to Strategic Account Management. Simply renaming their services to take advantage of an opportunity in the marketplace.

If someone from one of these companies was beside me as I write this blog, they would argue with me. Typically, they would say “Gary, the skills of selling are useful in Strategic Account Management.  That’s why we can offer services to help our customers with Strategic Account Management.”

There is a nugget of truth in this argument. Part of Strategic Account Management is selling your ideas to your strategic accounts and selling your ideas to your organisation to get resources for your strategic account. So, some selling techniques are useful, for example asking good questions and building credibility with the person you are trying to sell an idea to.

However their approach is simply using selling techniques under a new name. This flaw is serious but not fatal. However, there is one fatal flaw to buying from a wolf in sheep’s clothing. When you examine their approach carefully, you will see they frequently set sales targets for products.  Also, they frequently talk about products and pitching products. So, their approach is simply high level sales training to sell more products. In short, “this is how you get access to the CEO level to sell more products or a bigger bundle of products”. This is not Strategic Account Management. This will not create more strategic relationships. Typically, a competitor will come in with a bigger discount or bigger rebate at the end of the contract period. So, you can lock in a strategic customer for a while. But competitors can and will be able to wrestle the customer from you.

So, if this is not Strategic Account Management, what is? Well the answer is surprisingly simple. Strategic Account Management is a process not designed to sell more products but to improve the business results of your strategic customers. Just so we are clear, it is not about more sales of your products and it is about more results for your customer.

The most successful Strategic Account Programs are built on this foundation. To build a deep strategic relationship, you need to invest in improving your strategic customer’s results. If you do this for 12 to 18 months and do not gain an obvious benefit from the work you do, it transforms the relationship. Working on improving their business results creates a deep strategic relationship that competitors cannot easily break with bigger discounts or bigger rebates.  This transforms the relationship because the customers view changes:

• From “ I think this is just a new technique to sell me more products”
• To “I think this supplier is serious about helping me improve my business results in ways that are not just going to increase their sales. I wonder if they can help me with…”

Perhaps this can be summed up best by quoting part of a conversation between a customer and a strategic supplier at a dinner attended by executives from the two companies.

“We see you as a partner not just a preferred supplier.”

“What’s the difference?”

“With preferred suppliers we meet with them long enough to get the biggest discounts. With a partner like you, our executives share our business problems and opportunities with your executives. Then we listen to your market knowledge and work with you on your ideas for new businesses to create more revenue and profit for us.”   

If you want to be like this company and transform your relationships into strategic relationships, beware wolves in sheep’s clothing. To find out more about Strategic Account Management click this link: http://www.gordianbusiness.com.au/strategic-account-management/

"That strong mother doesn't tell her cub, Son, stay weak so the wolves can get you.
She says, Toughen up, this is reality we are living in."

Lauryn Hill

We would love to hear your views so please add your comments below and subscribe to our blog at the top right of the page. Or contact us to discuss how we can help on +61 (02) 9450 1140 or email gary@gordianbusiness.com.au

Are your Account Plans strategic? – take our 5 question test

Google

By Peter Browne

Are your account plans as strategic as you think?

“Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.”

 Sun Tzu

Senior executives must juggle many balls. They must strike the right balance between focusing on long-term and short-term objectives. Fail on the short-term and you are out of a job; fail on the long-term and you might not have a business. Because key accounts drive both short and long-term revenue and profit, one litmus test of how well senior executives are directing the business to achieve the right balance is to see what is included in strategic account plans.

Including the word “strategic” implies a longer timeframe and matters of significance. To test if you are working at the strategic level with your key accounts take this quick 5 question test:

1. Does your account plan include actions to increase your understanding of your account’s strategic priorities?
2. Does your account plan include initiatives that go beyond this financial year?
3. Does your account plan include actions that will broaden and deepen relationships with your account?
4. Does your account plan include initiatives that are beyond your products and services?
5. Does your account plan identify your account’s strategic problems, and initiatives to help solve them?

If you are serious about creating strategic relationships with your key accounts; increasing barriers to entry against competitors; and barriers to exit for your key accounts, you should score 5 out of 5 for these questions. If you did not score 5 out of 5, then you need to identify the problem. Are you too focused on the short-term? Does the account team still require development to think and act strategically?

In our experience most “strategic” account plans are operational and short-term. Businesses too often focus on winning sales at the expense of building truly strategic relationships. Account teams find it hard to manage the internal pressure for short-term results.

So make sure the accounts plans for strategic accounts include short and long-term activities; and activities that create value for both you and your strategic account.

We would love to hear your views so please add your comments below and subscribe to our blog at the top right of the page.

If you are struggling to make the shift from traditional account management to strategic account management please contact us to discuss how we can help on +61 (02) 9450 1140 or email peter@gordianbusiness.com.au