Pay Attention, Think Again - Create Advantage

By Rebel Brown

Powering Momentous Launches

<div class="at-above-post-cat-page addthis_tool" data-url="https://rebelbrown.com/2009/08/13/powering-momentous-launches/"></div>Launches are viewed as the Lighting Bolt of our corporate world, the big Ta Da! We get all our materials together in hush, hush secrecy. A week or two before the big date, we go share our news with the leading analysts in our community, the top customers and partners. Then, on the big day our Press Release hits the wire and we start selling our hearts out, having trained the sales force the day or week before.The problem is that those approaches don't work anymore.The Lightning Bolt has given way to Rolling Thunder. Rolling Thunder launches focus on announcing success - not availability.I've been using Rolling Thunder launches for over a decade. We use a Rolling Thunder approach to build momentum, create buzz and excitement, leaving our audience wondering what's coming. We gather supporting evidence before we 'launch', strengthening our sales and marketing efforts. We also work the 'kinks' out before we step into the limelight. I wouldn't launch any other way. Case in Point A client had a game-changing innovation in the storage marketplace. They were ready to announce their new solution when I was brought in by the board of directors. Here are some of the issues I saw:<ul> <li>They had three beta sites but the customers weren't ready to talk about anything yet.</li> <li>They had two partners but they weren't working with the product yet.</li> <li>Their sales force had only seen early demos of the product. Only the VP of sales had been involved in creating the go-to-market strategy.</li> <li>No analysts or experts had been briefed or questioned around the strategy.The Thinking was to keep it secret and not share with anyone who might tell the competition.</li> <li>There had been no 'softening' of the market, no momentum built.</li> </ul> The plan was to put out the lightning bolt press release, brief everyone on that day and then start selling.We didn't follow that plan. Nope, not even. Here's what we DID do:<ul> <li>Brief sales. The first thing we did was to get the top 5 reps in the top markets, focusing on the strongest current and future opportunities - not just the current few big customers. We showed them the product, asked what they wanted for demos. We got their feedback, their concerns -and over the next month, their buy in. Which, by the way, they shared with the rest of the field sales force. </li> </ul> <ul> <li>Target early customers. We ran like the wind with those reps to target the top ten customers who would get the most immediate results from this new solution. We briefed them, collected their feedback and got the storage system running in five sites within 60 days. </li> </ul> <ul> <li>Target top partners. We worked with one of the channel reps to target two partners as early channel players. We briefed them, took their feedback and let them have product - with our tech support guys standing by to answer any and all questions. The only agreement was that they would each deliver one beta site in the first 60 days with our help - and they did.</li> </ul> <ul> <li>We whispered: At a large industry event, we whispered our news to the most exclusive group you could imagine. We invited the top four analysts,two long lead press, five well known customers and a few other folks to a private Whisper Suite. We asked them to sign NDAs and begged them not to tell anyone they'd been to our suite, seen our product. They did exactly what we wanted. They went out and told the world they'd seen something cool that others hadn't. And the Buzz began.</li> </ul> <ul> <li>The secret lab. We set aside a 'private' space in the corporate office for the final testing. We brought in outside parties to 'test' the product in that lab, swearing them to secrecy until the day of the press release. The Buzz grew. </li> </ul> <ul> <li>We were the Expert. We put together a set of themes around the market and customer need for our solution - and began to talk about those needs publicly. Not our solution, not chest thumping. We educated the market as an expert - discussed the challenges AND the optimal ways to resolve them. At tradeshows and conferences and in a few contributed articles - we set the stage for our solution, without ever mentioning anything specific about it. </li> </ul> Four months after I met the client we finally wired that press release -and the world was waiting. It was the best coverage the company ever had. The company was touted as an innovator and leader, the product won awards for product and technology innovation in a number of reviews. So what was different about Rolling Thunder than the traditional Thor's Lightning Bolt? <ul> <li>We had customers using the product before we announced it. They gave us the evidence of the value that solution provided. That brought immediate credibility.</li> </ul> <ul> <li>We had partners selling the solution with hands-on experiences. They shared their stories - and yes, our credibility rose even higher. </li> </ul> <ul> <li>Thought leaders agreed with our approach. Why wouldn't they. We'd been sharing our expert ideas in the market, people had latched onto them as valuable, embraced them as their own. Add more credibility.</li> </ul> <ul> <li>We had revenues. Imagine that, revenues before you drop the PR. What a great idea. That's the ultimate proof that your offering has value - people have already paid money for it. Talk about credibility!</li> </ul> Rolling Thunder creates buzz in the market ahead of anything formal announcement. It lets you leverage that buzz to create momentum for your launch. Most importantly, you get to announce success. Who can argue with that? _____Rebel's Note: My associates asked me to write a series of posts on Company and Product Market Launches - subjects that are near and dear to my heart. So, over the next few weeks, check back for posts related to Rolling Thunder Launch methodologies. Next Week: Beyond the Lightning Strike, or Why the Press Release Isn't the End of the Launch. <div class="at-below-post-cat-page addthis_tool" data-url="https://rebelbrown.com/2009/08/13/powering-momentous-launches/"></div>

By Rebel Brown

The Ugly Baby (Product) Dilemma

<div class="at-above-post-cat-page addthis_tool" data-url="https://rebelbrown.com/2009/07/20/the-ugly-baby-product-dilemma/"></div>We become emotionally attached to our products. I know, that's not the professional approach. But it's true and we all know it. We conceive them, bring them to life, nurture them along then proudly put them on display for all the world to see, and of course buy. Often they become a version of our 'children'. That's a great kind of commitment. But sometimes that adoration blinds us. Our fresh new baby ages, gets wrinkled and dull. Our <a href="http://blog.peoplewhoknow.biz/phoenixrising/2009/05/but-its-our-best-and-biggest-seller.html" target="_blank" rel="noopener noreferrer">best selling product</a> of yesterday no longer serves today's market. Sure, some customers still adore it. Why wouldn't they? They probably have a vested interest as well. Holding onto products that have passed their prime is a key reason companies falter.It's hard to let go of something we've poured our energy into for years, even decades. That's true personally as well as in business. But quite often, that's exactly what we need to do to make forward progress. Case in Point.Take a look at the companies that are struggling all around us, right now. The first thing you probably thought was something like "Well, that's the economy's fault." Maybe. But look more closely. You'll find that many of these companies held on to their way of doing business, their favorite products (and customers for those products) for far too long. Want an easy example? GM. GM held onto the gas guzzling, or certainly gas-powered, vehicles that were its legacy even as competitors were successfully introducing Hybrids. Did any of us NOT see that mistake in the making? Yet GM couldn't, or wouldn't, see that its approaches were growing old and tired. They kept making incremental changes, rather than creating a new generation of vehicles to match the changing market dynamics.Other examples? Look at the iPhone as the new pretty baby, with everyone else caught flat-footed holding onto old concepts of cell phones and PDAs. Or how about Microsoft and Sony (with their traditional joy stick consoles) watching as Nintendo's Wii captured the hearts of young and old - and flew past them in the market? The list can go on and on. Yes, Apple and Nintendo were innovators. But the door for innovation was flung wide open by competitors who were complacently holding onto their aging product concepts.A client had been selling this whizbang system for almost a decade. They claimed it was the greatest thing since sliced bread, the only one of its kind - the power behind their future. Yet when we looked closely, they were starting to lose money on nearly every sale of this same system. Yes, it had a unique and quite valuable capability. The problem wasn that only a tiny segment of their market could actually use that capability. And that segment was shrinking. When we pointed this out - well, the words fell on the ears of deaf parents. The company couldn't see the reality of their situation - that system was unique, but noone cared anymore. The company finally went bankrupt a while back. And they were still holding onto that system, spending money on it 'til the very end.Change is hard. Let me repeat that in a different way. We fear change. It's tough to take a step out into a new world and leave the known behind. But that's exactly what companies have to do, if they want to continue to soar. I'm not saying that every legacy product is an ugly baby. Just look at Kleenex - it's been around forever and just keeps going. What I am saying is that we need to look objectively at our favorite products and their value - to our customers and our prospects. We may just need a new offering that's more in sync with today's markets. That's okay. We can leverage the power of our current products to create better and brighter opportunities. Let your ugly babies go, gracefully and gratefully. Keeping them alive can cost you money, resources and ultimately, your business success. <div class="at-below-post-cat-page addthis_tool" data-url="https://rebelbrown.com/2009/07/20/the-ugly-baby-product-dilemma/"></div>

By Rebel Brown

Get in the Boat or Take the Train!

<div class="at-above-post-cat-page addthis_tool" data-url="https://rebelbrown.com/2009/07/13/get-in-the-boat-or-take-the-train/"></div>Why do turnarounds fail? There are lots of reasons, but one stands out above the rest to me.Leaders don't want to rock the boat. They're afraid to make the tough, unpopular calls that change often requires. Leaders don't want to lose their followers, or be unpopular, or make the wrong move - so they don't make the tough choices. Case in Point. In every turnaround, there are executives and employees hanging onto<a href="http://blog.peoplewhoknow.biz/phoenixrising/2009/04/but-thats-the-way-weve-always-done-it-.html" target="_blank" rel="noopener noreferrer"> the way we've always done it.</a> That's OK for a while; it takes time to get everyone into the new boat, to change course and transform the business. But, at some point in time - and preferably sooner rather than later, everyone has to get into the boat.The Same Boat. Or they need to take another train. Continued promotion of the way it's always been against the new direction is one of the major reasons turnarounds fail. Business is not a democracy, where everyone gets a vote and opinions are given equal rank. Dissension spreads like a virus, and is just as destructive. Still, you'd be surprised just how few CEOs will step up and remove that virus. The reasons?<ul> <li>He's a great guy. I'm sure he is. But if he's negating your strategy for change, then it doesn't matter how nice or great he is. He either needs to change his stance or find another company where he can keep that stance while you move forward. Niceness is not an excuse for someone dissing your business decisions. That's insubordination (after a point) and it breeds issues.</li> </ul> <ul> <li>She's been here since the beginning. Maybe that's part of the problem. Especially if you're steering a new course. If she's a proponent of the status quo because it's known and comfortable then maybe it's time for a big change.Just because someone has longevity doesn't mean they get to misbehave and stir up dissent in the ranks.</li> </ul> <ul> <li>We'll lose people if he leaves. Maybe that's a good thing? If all those people are as resistant to changing course - then maybe they need to catch that other train so you can move forward. If people can't support the direction of the company and are openly negative about it, they're distracting and sucking your momentum - internally and probably externally as well. As I always remind my clients - no one is indispensable. </li> </ul> Then there's the unspoken excuse. The leader doesn't want to be seen as the bad guy. Many execs don't want to be the heavy, more than you'd suspect. CEO's seem to thrive in two extremes; being cantankerous, obnoxious and heavy handed, or being the nice guy who takes care of everyone and responds to all sides of the argument. Popularity is not part of a CEO's job description - at least not in most businesses. There's a middle ground between these two extremes, and more executives in troubled companies need to take it. Be a leader and make your decision. Listen to all the input, take the feedback and then decide on a strategy. That's why you get the big bucks...to be a leader and make the tough calls. Then, if your staff doesn't get in the boat with you, Rock that Boat. Hand them a pink ticket to another boat or train. You may lose a few folks in the process, and they will most likely say bad things about you. Get a thicker skin and step up. You'll give your business the chance to fly and be profitable again. And that's a lot more important than winning that popularity contest, now isn't it? <div class="at-below-post-cat-page addthis_tool" data-url="https://rebelbrown.com/2009/07/13/get-in-the-boat-or-take-the-train/"></div>

By Rebel Brown

Revenue’s Down, Let’s Fire Sales

<div class="at-above-post-cat-page addthis_tool" data-url="https://rebelbrown.com/2009/07/08/revenues-down-lets-fire-sales/"></div>I met with a former client to discuss his company's current business. He wanted to pick my brain on how to best approach their opportunity to transform themselves, to reinvent and re-tune.In response to their flat (and somewhat declining) revenue, they've cut back their company resources across the board - but they've specifically reduced headcount in sales. That surprised me. Why would you cut sales when you need to drive revenue? Beyond the obvious opportunity to let go of the dead weight? I asked some questions and here's what I learned:<ul> <li>The company released the bottom 15% of the sales force, the non-producers. I agree with that choice - separating the chaff is always a good step - even when revenues are up!</li> </ul> <ul> <li>The company also cut all sales resources in their top three emerging target markets. The reps had been on board for less than 5 months and while they had a strong pipeline - no deals for dollars had closed, and this decision was all based on revenue. </li> </ul> <ul> <li>They also cut their new channel program and reps. They'd moved into channels to expand their reach into a rapidly growing market sector where they needed partner expertise. The channel program was initiated about 6 months ago and was starting to get traction - but not fast enough for the bottom line results to justify the investment.</li> </ul> <ul> <li>They kept their top selling reps - especially the ones servicing their largest accounts in traditional industries - their bread and butter so to speak. Even though these reps made higher commissions and represented a higher cost of sales - they were worth it to keep the core of the business happy. When I asked about margins and the overall growth in this core business - my associate looked a bit dismayed. Margins were shrinking due to competitive pressure, and the core business was flat to declining overall -but we have to keep the core solid to survive, right?</li> </ul> This story isn't that unusual. From my perspective, it's filled with common decisions that can have negative ramifications. What are my concerns? <ul> <li>Cutting sales. Cutting back on your source of revenues is something that needs to be done with a precision scalpel - not a chainsaw. I don't believe that reducing sales when revenue is declining is the best strategy. Yes, its a great chance to clean house and remove any non-productive resources. It's also a chance to proactively focus sales resources into the most advantageous markets - current and future. You have to be very precise and cautious - or risk cutting your future off at the knees. Which leads to my next concern. </li> </ul> <ul> <li>Hanging onto the status quo. If you haven't read my post '<a href="http://blog.peoplewhoknow.biz/phoenixrising/2009/05/but-its-our-biggest-seller.html" target="_blank" rel="noopener noreferrer">But It's our Biggest Seller' </a> and '<a href="http://">But They're Our Biggest Customer</a>' - go read them please. Hanging onto the status quo can be a significant contributor to a company's demise. In this case, the company is paying reps more money on lower margins just to hang on to customers they perceive as 'core'. Competitive threats are increasing and margins are shrinking. Isn't this an opportunity to streamline the cost of sales into these accounts - and apply some resources to fuel your next market opportunity? What if that 'core' isn't your market of the future? Think about it.</li> </ul> <ul> <li>Strangling your future. I see this one quite often in my turnaround clients. They've started to expand into new markets. But then the overall company has issues and they back away from opportunity, returning to the status quo - just as they were getting traction. I'm not saying that sometimes new markets just don't pay off. When that's the case, it's a good decision to realign and refocus. But you need to give new investments the chance to fly. I happen to know that in this case the sales cycle for the company's products was in excess of five months (more like nine to twelve). So they didn't really give their new sales reps or channels the runway they needed to make a difference. Chances are that the margins, opportunity for expanded revenues and competitive differentiation were much more significant in their newer market targets. But now we'll never know, will we?</li> </ul> Realigning resources is one of the hardest parts of my turnaround business. It's emotional and personal, no matter how many times you do it. But as Spock would say, "The needs of the many outweigh the needs of the few." That's true in business, as well as exploring the galaxy.We need to be thoughtful about where and what we cut. Sometimes we do have to make tough decisions about the future. But cutting all future investment, just when it may pay off, is not the ideal approach. You usually end up in a bigger mess in the long-term as competitive pressure escalates and markets mature - and you're stuck in the status quo. Cutting sales and revenue-driving marketing resources may not be the best place to look for savings, either. Reducing nonproductive resources is one thing. Eliminating the engine that drives your revenue and opportunity for future growth is another. To grow and thrive, companies must continue to invest in their next opportunity, even as they stabilize their foundation. The best decision for resource reallocation usually entails a balance between the known and the potential. It takes courage to face the risks and invest in the unknown future - but the upside is far brighter when you do. <div class="at-below-post-cat-page addthis_tool" data-url="https://rebelbrown.com/2009/07/08/revenues-down-lets-fire-sales/"></div>

By Rebel Brown

Free Positioning eBook: It’s Not About You Anymore

<div class="at-above-post-cat-page addthis_tool" data-url="https://rebelbrown.com/2009/06/23/free-positioning-ebook-its-not-about-you-anymore/"></div>I was checking out a potential client's website. I found everything I ever wanted to know about the company. About their unmatched experience and revolutionary products, their industry leading service and kicktail integration capability. Their firsts and awards, their executive team's impressive track record. It was a <a href="http://blog.peoplewhoknow.biz/phoenixrising/2009/05/go-thump-your-chest-in-the-gym.html" target="_blank" rel="noopener noreferrer">chest thumping </a>extravaganza! I couldn't find a customer story anywhere. Just the obligatory logos on a page entitled 'Customer Success'. Two of the four links I clicked on were broken. Oops. Now that gives a customer warm and fuzzies, doesn't it? Positioning is one of the most important things you’ll do in your business life. Positioning is what compels buyers to trust you. Great positioning weaves stories that touch our audience. The right stories attract buyers, and keep them coming back. Chest thumping usually sends them packing. To learn more about customer-centric positioning - Download my Free eBook as a PDF <a href="http://blog.peoplewhoknow.biz/files/ebook-its-not-aboutyou_anymore-06232009.pdf"></a><a href="http://budurl.com/INAY" onclick="window.open(this.href,'_blank','scrollbars=no,resizable=yes,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false" style="float: left;"><img alt="Cover full" class="at-xid-6a00e55397fd1b88330115704e3c0c970c " src="http://blog.peoplewhoknow.biz/.a/6a00e55397fd1b88330115704e3c0c970c-120wi" style="margin: 0px 5px 5px 0px;" title="Cover full" /></a> <a href="http://budurl.com/INAY" target="_blank" rel="noopener noreferrer">ITS NOT ABOUT YOU ANYMORE </a><a href="http://blog.peoplewhoknow.biz/files/ebook-its-not-aboutyou_anymore-06232009.pdf"> </a>OR Link to an Interactive version <a href="http://budurl.com/INAYe" onclick="window.open(this.href,'_blank','scrollbars=no,resizable=yes,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false" style="float: right;"><img alt="Its Not About You Anymore" class="at-xid-6a00e55397fd1b8833011571434e92970b " src="http://blog.peoplewhoknow.biz/.a/6a00e55397fd1b8833011571434e92970b-120wi" style="margin: 0px 0px 5px 5px;" title="Its Not About You Anymore" /></a> <a href="http://budurl.com/INAYe" target="_blank" rel="noopener noreferrer">Its Not About You Anymore</a> So, what’s in this eBook for you? A simple yet effective approach to strategic positioning that works. 1. Identifying our true value - through the eyes of our audience 2. Describing our value – with real-world evidence 3. Spinning stories that touch our audience - by letting our customers' successes speak for us I hope <a href="http://budurl.com/INAY" target="_blank" rel="noopener noreferrer">It's Not About You Anymore</a> will encourage you to take a different look at your organization and its strategic market positioning. Please let me know what you think. I truly appreciate your feedback! <div class="at-below-post-cat-page addthis_tool" data-url="https://rebelbrown.com/2009/06/23/free-positioning-ebook-its-not-about-you-anymore/"></div>

By Rebel Brown

If You Talk the Talk, You Better Walk the Walk

<div class="at-above-post-cat-page addthis_tool" data-url="https://rebelbrown.com/2009/06/22/if-you-talk-the-talk-you-better-walk-the-walk/"></div>Businesses large and small are jumping into a social media presence these days. It’s a great opportunity for real communication with your audience. If you walk the walk. But what happens when the talk isn’t the walk? When a customer pushes past the social persona. Do you walk the walk - or do you crash and burn?Two cases in point.CASE ONE: The Social Media GuruTake a certain large corp that's into social media big time. This company is a rare deal - a successful business in an industry that is going down fast. Well, I had a nightmare customer experience with my brand new, high dollar product from this same company. One of the worst. Trust me, that says a lot. A friend suggested I ping the social media exec with my story - to give him the feedback and let him work his magic. My initial reaction was that my complaining to a big corp wasn't going to matter. I'm a gnat on their derriere. But my friend persisted and so I Tweeted the social media guru. Guru Tweeted back an email address and asked me to share my story. Good! So I did. <ul> <li>A week later, no response. I thought maybe he was just too stunned to reply. So I Tweeted and asked what was up (a private DM).</li> </ul> <ul> <li>DM a few hours later. “Sorry, I'm busy, my email is backed up, I'll get back to you soon.” Not exactly endearing, now was it. </li> </ul> <ul> <li>I DMd back that thanks to him, I now fully understood my importance to the company. (Note: I know, bad form, but at the moment I just couldn't stop myself.)</li> </ul> <ul> <li>Response in half an hour. "I can't respond because I need feedback from others. I'll get back to you." </li> </ul> Why the change in attitude? “Guru probably just now read your email, figured out he's in deep *** and is making excuses,” says my social media maven/sis. It never even occurred to me that he wouldn't have read my email after I DM'd him with my plight. <ul> </ul> That night I watched as Guru Tweeted on and on about sports, movies, the Stanley Cup, great restaurants and more. Yep, he’s WAY too busy to care about me and my issues. Fast Forward Two Weeks: To be fair - I had a different ending written for this story until Sunday night. But the company called me on Thursday. We set a time for Friday but they were late for the call. A whole 7 hours late. But they left a message so I'll call them. There is hope. Still....CASE TWO: A Young Internet EntrepreneurI responded pretty strongly to a pesky Twitter MLM peep who wouldn't take NO for an answer. Don't ya hate it? Snakeoil. Ick. Ping, an immediate reply. "What the ..." I opened the email, ready to blast away. Stopped short. It was from a totally different person and company. Seems I replied to the wrong email. OOPS!Sy Whitehall, the voice of <a href="http://www.myebook.com" target="_blank" rel="noopener noreferrer">www.myebook.com</a>*, had emailed and offered to introduce me to his site personally. I'd responded to his email with my, er, blast. He told me later he felt 'chucked in the gut'. What had he done, what was so bad about his website, his offering? What could he do to help me?I quickly replied, explained I'd made a big boo boo and thanked Sy for his responsiveness. Poor guy! He chatted with me on email for a while, and then we Skyped late last week and he gave me tips and pointers. Good stuff here, I'm using it on my website now! I left a happy and satisfied user - impressed by Sy's dedication to his business, his customers and his own brand of social outreach with such a personal touch.Who's Walking the Walk? You can decide for yourselves. For me, it's pretty obvious. Right now I'll do everything I can to help Sy get his business going. That's why I named him in this blog. He deserves a BIG and public pat on the back for his dedication to his business and his customers.As for Guru? The jury is still out on that one. The Bottom LineWalk your Talk. Someone will find out when you don't. Thanks to Web 2.0 - that bullet can be shared around the world. Besides, it's the right thing to do. Keep your integrity and do what you say. You may not win all the time, but you’ll win more than most. ______*www.myebooks.com is a FREE site to create and distribute interactive, multi-media eBooks. Try it out! <div class="at-below-post-cat-page addthis_tool" data-url="https://rebelbrown.com/2009/06/22/if-you-talk-the-talk-you-better-walk-the-walk/"></div>

By Rebel Brown

Objectivity is a Beautiful Thing

<div class="at-above-post-cat-page addthis_tool" data-url="https://rebelbrown.com/2009/06/17/objectivity-is-a-beautiful-thing/"></div>I met a new client a couple of weeks ago. We spent time over dinner discussing his company and their strategy for diversification and expansion. The guy is sharp, and the opportunity he unearthed is strong. All the prerequisites for success are there: current customers are clamoring for the solution (it save them major money), there's an un-served and significant market demand, minimal investment is required and there's a 'sky's the limit' upside.He hired me to help him communicate that strategy to his board and fellow executives. The next morning we met to dig into the story. It didn't take long before we were both drawing pictures on the white board, talking all over each other, passionate and excited about the opportunity, about telling his story clearly so everyone could see the opportunity. It really wasn't that hard, really. He was wowed by my 'quick uptake' and what he viewed as 'expert' suggestions. I thought it was plain ole business sense. By the end of the session, we had the fundamentals of the story down pat. Yes, it was and is compelling.So why was I able to capture that story so quickly when he'd struggled for weeks, even months? I'd like to say it's because of my brilliance, but that's not true. My experience did help - all that practice does payoff after all. I brought one really helpful thing to the table: Objectivity.I didn't do or say or create anything my client didn't already know. After all, he's the one that gave me all the fodder for the story. The difference was my objectivity. He'd lived and breathed his business and strategy for a couple of years. He knew it inside and out. So much so that he couldn't see the story anymore. He was mired in the details, in everything he knew that others didn't - at least not yet. Being objective, I was able to elevate the key points, and downplay the details that were distractions.Objectivity is a beautiful thing. This is just one example. We all can think of more - from the way we read emails to what we hear in other people's statements. Unfortunately, all too often we lose the very objectivity that helps us create business value. We simply get too close. At the risk of sounding self-serving, objectivity is one of the best reasons to ask for an outside opinion. We are, after all, human. As we begin a new project we start out passionately objective. But then we dive deeper, gather knowledge and fall into a subjective state of the 'known'. We listen less and finish sentences more, assured of our course. It happens to all of us; at some point we lose that objective edge. As I said before, it's part of being human. Seek out the objections to be more objective.You don't have to hire a consultant. Go chat with an associate. Test your thoughts with a client who is known to be 'cantankerous'. Sometimes I play a game of 'Stump the Chump' with my clients - asking them off-the-wall and pointed questions, poking holes in their strategies. More often we reverse roles - and I play the Chump to be Stumped.We have a lot of fun, but we also find those known truths that are holding us back. I found this quote and I think its says it all. "A creation needs not only subjectivity, but also objectivity*." It's great to be a subjective expert. Just be sure to keep checking in with your objective self along the way. * Stephen Chow <div class="at-below-post-cat-page addthis_tool" data-url="https://rebelbrown.com/2009/06/17/objectivity-is-a-beautiful-thing/"></div>

By Rebel Brown

5 Keys to an Awesome M&A

<div class="at-above-post-cat-page addthis_tool" data-url="https://rebelbrown.com/2009/05/28/5-keys-to-an-awesome-ma/"></div>In the interest of balance, today I’m waxing on about the awesome opportunities presented by M&As - and some of the lessons I’ve learned along the way to help things go a bit more smoothly.<o:p></o:p> M&As are one of the most powerful opportunities for a Phoenix to rise; stronger, brighter, ready to soar into a leadership. After all, you're bringing two companies together who presumably have complementary skill-sets, products, market knowledge and customer bases. What could be MORE exciting? Instead of investing time and dollars to build these assets - we have the opportunity to blend the best of the best and keep running! But sometimes it's easy to forget that opportunity once the deal is complete. When the deal is signed and we roll up our sleeves as the true blending begins, it’s easy to be overwhelmed by the day-to-day reality of these two completely unique business entities. To keep the power of the vision and opportunity alive – there are some key things I recommend to clients: <o:p></o:p> Define the strategy and vision upfront and for all to see. Sometimes execs introduce the coming event with high level glimpses of the strategy – not wanting to set the wrong expectations before the details are all ironed out. This leaves the door open for personal opinions and perspectives to take the lead – and assumptions to be made. It’s human nature to apply our own predispositions to our analysis – and that’s when ego and turf can take priority over following the agreed to vision. As early as you can, state the vision and the steps to get there clearly and concisely, and keep refining with all those involved on a regular and frequent basis. Just as feature creep can negatively impact product value, so can 'turf battles' dilute the power of your vision. Don't let your teams be distracted from the end goal as you move from the high level to the details. Stay positive and passionate about the vision. But we are – we’re excited! Of course you are – you see the value and opportunity. Yet somewhere in your organization are folks who don’t share that perspective. We all know that. But we need to do something about it. The snide remarks at the water cooler or the condescending attitude in departmental meetings do more to undermine the success of an M&A than any other single action. These opinions need to be heard and settled once and for all – and then folks either need to get into the boat or go take another train. Dissension in the ranks is wasteful and detrimental to success. Nip it in the bud -visibly - and move on – swiftly. Be thorough with your best-of-the-best planning. We technologists tend to get all excited about the products and solutions and innovation that we can bring together. But the best-of-the best goes far beyond the offerings we can deliver. Some other factors to consider include: <ul> <li>Technology. Just a quick word here. If you haven’t read my blogs <a href="http://blog.peoplewhoknow.biz/phoenixrising/2009/05/but-its-our-best-and-biggest-seller.html" target="_blank" rel="noopener noreferrer">‘But It’s Our Biggest Seller</a>’ and ‘<a href="http://blog.peoplewhoknow.biz/phoenixrising/2009/04/what-exactly-is-game-changing.html" target="_blank" rel="noopener noreferrer">What Exactly is Game Changing</a>', you might want to check them out. The biggest seller today may not be the best-of-the-best for going forward. Make sure you look at ALL the technologies in play and map them to the plan for future markets and customers. Put resources on your best future opportunities, and not just on those 'best selling' legacy products that may not power the future you want or need.</li> </ul> <ul> <li>Customers. Customers are one of the biggest assets an M&A offers. Combining two diverse customer bases can positively impact your market presence. Take the time to thoroughly understand the customer opportunities – past, present and future. Too often we look at the biggest customers as the best going forward opportunity – when in fact other customers may hold the keys to that new market or emerging opportunity we‘ve been seeking. Make sure your executives charged with the blending have a clear vision of the future – and don’t make short-term decisions that can blow your longer term opportunities. </li> </ul> <div class="blockquote" style="margin-left: 40px;">Be sure and communicate with the customers – in more than an email and news announcements. I see so many companies send a press release and customer email and move on. They expect customers to be happy about the change – while they leave the cleanup to sales and customer support reps. Executives and leaders need to be involved with customer transitions – be present, be obvious and communicate, communicate, communicate. </div> <div class="blockquote" style="margin-left: 40px;"> Finally, be sure to thoroughly evaluate the teams who support those customers. Those teams may be the reason those customers are around…and will stay around. Personal contacts are often more important than product offerings when it comes to customer loyalty. Never forget that when blending a customer-facing team. For example:</div><ul> <ul> <li>Sales and pre-sales relationships are complex and often quite personal. Before you start substituting players, make sure you understand the dynamics. Buying decisions are often made based on these relationships –when you change the rep you may lose the business. </li> <li>Service and support relationships can be even more valuable. These are the folks the customers trust to come to the rescue – and many times they are the keeper of the customer truth. Listen and learn that truth, take their inputs seriously and respect their expertise.</li> <li>Marketing relationships with customers can give you huge insights – when you pay attention. Too often we look at the folks who lead the User Groups or industry/special interest groups and see organizational overhead and duplication – when they may have critical customer information that can add value to our overall assessment and going forward planning. </li> </ul> </ul> <ul> <li> Expertise. Experts come in many forms, and all are valuable beyond measure. Too often we look at the technologists, the leaders, the innovators – and ignore some of the most valuable expertise we acquire. From the executive administrative assistant who knows the personal side of every customer CEOs (including their favorite lunches, their birthdays, their wives' and kids' names), to the telephone support rep who is on a first name basis with every customer in your key target market, to the product marketing manager who knows more about your next solution space than your whole company combined – pay attention to the expertise. Listen and learn.</li> </ul> <ul> <li>Don't overlook processes. One of my client's product definition process was the most streamlined I'd ever seen. Their merger partner recognized that fact - and instilled that same process into the new organization. It wasn't easy - the merging teams didn't respond well to change. But within six months everyone involved agreed it was the right thing to do and a big win for the business.</li> </ul> <ul> <li>Market perception. Sometimes the acquiring company is a leader and has the best overall brand and image. But often that’s not the case. Especially in this market. Sometimes the acquiring companies are the young 'upstarts' acquiring critical expertise and market presence. Market perception takes time to develop with customers and the market at large. Think twice before you throw it away because of who acquired whom. Look carefully at how the market holds each of the entities. Play your cards so that you leverage the best options possible – which may mean anything from assuming the name of the acquired company to maintaining their expert position as a subsidiary to adopting everything about them. Perception rules - and besides, we all know it’s easier and lower cost to leverage what’s in place than to invest time and money to evolve people’s beliefs. <o:p></o:p></li> </ul> Dig Deep. One of the biggest challenges with reinvention strategy is that we don’t often dig deep enough to find the jewels hidden among the clutter. We get lost in the noise – the buzz about the biggest and brightest and best. The ‘knowns’ come front and center and the ‘yet to be founds’ often end up in the bottom of a pile – never to see the light of day. The challenge is that in more companies than you’d expect – the true value, the crown jewels that will take you to the next level of success – may not be that obvious. At least not to the folks who live with them day in and day out. <ul> <li>That technology sitting on the shelf – that was developed ten years ahead of its time – may be the key to reinvention and future growth. </li> </ul> <ul> <li>That relatively small market that’s been a side business for a year now may be the next big opportunity –if it can get attention and resources from the crowd swarming to the status quo. </li> </ul> <ul> <li>Those five guys in the corner lab doing things no one really understands may be onto the next big innovation – and a perspective that will change a paradigm for good. Too bad they haven’t shared their vision beyond technology. No one ‘gets’ the opportunity so they may go the way of the woolly mammoth – when in fact they are creating the next game changer. </li> </ul> Take time to get away from the day-to-day perspectives and knowns. Dig deep within the organization, look at things from a fresh perspective, without the contamination of the plan. Sometimes its valuable to bring in objective outsiders to take a look with you – they don’t have the beliefs (or maybe baggage) that employees and executives can collect along the way. That’s one of the values a strategic consultant brings to the table – assuming they have the fundamental market and technical understanding to get up to speed quickly on your opportunity, your markets, your vision. Instill teamwork immediately. Let all employees know that you expect them to work together toward your vision – and leave their egos at the door. I know – that’s a hard thing to ask people to do. But business is business and there’s no room for turf battles in an M&A. Business suffers as soon as they start. Above all, executives must set the tone of an M&A event. That tone needs to go beyond the initial company meetings and announcements. It has to permeate each and every interaction from exec round tables to coffee in the kitchen. Leadership is often the difference between a successful or failed M&A. Great Phoenix' rise from M&As. Open your eyes, check your past perceptions at the door and <a href="http://blog.peoplewhoknow.biz/phoenixrising/2009/05/throw-everything-in-the-fire.html" target="_blank" rel="noopener noreferrer">Throw Everything in the Fire</a>. With the right blend of assets and attitude, you’ll soar into opportunity. <div class="at-below-post-cat-page addthis_tool" data-url="https://rebelbrown.com/2009/05/28/5-keys-to-an-awesome-ma/"></div>

By Rebel Brown

M&A – Will the ‘A’ Stand for Arrogant or Awesome?

<div class="at-above-post-cat-page addthis_tool" data-url="https://rebelbrown.com/2009/05/27/ma-will-the-a-stand-for-arrogant-or-awesome/"></div>So I'm dragging my Soapbox out again - if I had a Webaphone I'd be using it as well. My week began with a call from a business associate - a marketing director from a former client. I'm always glad to hear from him - he's bright, has a natural instinct for business/marketing and also has one of the best attitudes I've ever encountered - all to complement his 'get 'er done' work ethic and practical common sense approach to marketing and sales.His company (let's call it Game Changer) was acquired by another tech vendor (call them PlainIron). On paper it was a super M&A opportunity. PlainIron has captured the market for scalable platforms in its primary markets and is seeking to expand its industry focus while adding value to its platforms. Game Changer has expertise and software solutions that fill some huge holes in PlainIron's offerings - and also happens to be well established in the markets PlainIron wants to penetrate. PlainIron has cash to fuel Game Changer's innovation. Together they can become a Phoenix to be reckoned with. Instead, my associate is ready to leave the new company, ready to jump to any job he can find to get away from the arrogance he's faced with on a daily basis. Every suggestion he makes is belittled, every work product he submits is treated as inferior, he's constantly ridiculed by his new boss and co-workers. BTW - PlainIron is not exactly known for its strong marketing and IMHO is product marketing bereft - which is where my associate shines. This latest complaint isn't the only negative comment I've heard. Evidently the attitude runs deep in the company - with a few departments as notable exceptions. As my mom would've said - I'm 'fit to be tied.' I want to call someone, shake someone and say "What are you thinking? You're throwing away a fabulous opportunity." But I can't. They wouldn't listen anyway, now would they?Why do we often blow the advantages to be gained in mergers - because of human nature? M&As have the chance to create awesome value - so why the arrogance? I wish this was an exception - but this experience is more the rule when it comes to acquiring companies. Sometimes the attitude starts at the top and filters its way down. Sometimes, as in this case, the attitude pervades in subgroups - where egos emerge and thrive. It's such a wasted opportunity. Companies and boards invest in M&As with the vision of building greater value through the combination of talent, skills and innovation - through mutual cooperation that brings a sum that's greater than the parts. So why don't we focus on the best way to create that value, instead of waging the often seen turf wars?Just look at some of the facts in this instance. They mirror circumstances I've seen time and time again:<ul> <li>GameChanger has 3X the number of customers of PlainIron. Many of which are in markets crucial to PlainIron's expansion. These customers have loyalty for GameChanger and its experts, not for PlainIron. If Game Changer experts leave - the customers most likely will follow. And there goes one of the reasons - and the upside potential - of the acquisition. </li> </ul> <ul> <li>GameChanger has expertise where PlainIron needs to expand. That fact has been noted frequently in the market since the M&A was announced. PlainIron knows hardware and some specific market sectors. GameChanger knows software and services in those and broader market sectors. Together they have an opportunity to differentiate themselves in new ways, expanding their market reach and range while growing margins and overall bottom line profitability.</li> </ul> <ul> <li>GameChanger didn't fail in the market - in fact they grew over 25% last year - in a bad economy. But they were caught up in a power play between two investors who couldn't agree so they just sold them to solve their own issues. That doesn't mean they have no value. Ask yourself - why would you buy them if they had no value? Someone in the executive ranks at PlainIron saw the value. It's just sad that others can't or won't see the potential. </li> </ul> M&A events are supposed to create opportunities for reinvention and growth. By selecting the best of the best - and throwing the rest into the ashes - we can create a business opportunity far larger than that of the individual companies. I know for a fact that this merger is a real opportunity to create a thriving industry leader - a rising Phoenix. Instead, this is starting to look like a buzzard. I hope the leaders at PlainIron pull it all together before the internal fires consume everything of value. ______Check back tomorrow for The Awesome Side of M&A! <div class="at-below-post-cat-page addthis_tool" data-url="https://rebelbrown.com/2009/05/27/ma-will-the-a-stand-for-arrogant-or-awesome/"></div>

By Rebel Brown

Competitive Assessment that Works

<div class="at-above-post-cat-page addthis_tool" data-url="https://rebelbrown.com/2009/05/15/competitive-assessment-that-works/"></div> While I don't believe the competition should heavily influence a company's strategy, I do believe competitive knowledge is key in better understanding your market. Yet IMHO few companies actually assess the important aspects of the competition. We spend time evaluating our competitor’s technology foundations, comparing feature against feature. We look for every detail that we can use to prove that our technology is far superior to that of others. We compare pricing and discounting and facts and figures. <o:p></o:p> Don’t get me wrong. Understanding your competitor’s technology and its capabilities is a worthwhile exercise. As long as you don’t fall into the trap of defining your solutions based on their features – and become a <a href="http://peoplewhoknow.typepad.com/phoenixrising/2009/03/the-best-place-for-competition-is-in-the-rear-view-mirror.html" target="_blank" rel="noopener noreferrer">follower.</a> So what is the most important thing to assess about the competition? <o:p></o:p> That’s easy. Customer perceptions. What your customers believe about your competition IS their reality. It's their truth. You may be able to change some of that belief with facts and figures and demos - but much of it is pure perception based on opinions and experience. What customers believe about you and your competitors will trump technology breadth and depth every time. At the risk of repeating myself - the best technology doesn’t mean you win, remember? If a customer perceives the competition's products or service or expertise to be superior - it is. At least until you find a way to change that perception - usually through real world experiences with this customer or others who are like them. CASE IN POINTOne of my clients was in the SMB software space. They had a feature rich software suite and were doing well in the market. I was hired to help with some expansion planning. These guys were great technologists and had some interesting solutions in the B2C business arena. When I asked about competitors, they gave me detailed analysis of the features/capabilities of the top 3 ‘big’ guys. Two were well known leaders at the enterprise level – who were moving into the SMB space. One was an online provider of hosted solutions that were probably the best overall fit for the SMB space. The client believed that their rather large R&D budget was necessary since these 3 competitors had ‘everything’. When I asked to speak to 10 or so customers – I learned a different truth. <ul> <li>Customers and prospects didn’t view the 2 enterprise vendors as viable choices – they were overkill, had too many features and were viewed as too complicated. Plus, what kind of support could an SMB expect from vendors whose bread and butter came from the big enterprise accounts? </li> </ul> <ul> <li>The Hosted vendor? Well, these SMB folks weren’t ready to put their precious business data out at someone vendor's location, much less access it through the public web. To them, that couldn't be secure. Since they were just moving off of paper systems, they really wanted their solution to be tangible. Turned out that the server they could see in the back office made them feel more comfortable. </li> </ul> <ul> <li>We learned that the real competition fell into two camps –the status quo (and comfort) of remaining on a paper system OR moving to a much simpler software solution with limited features – something the customers could view as 'manageable' vs the overwhelming feeling they got from the big guys’ products.And BTW, the same feeling they were starting to get from my client's solutions with all their Chinese menus of features. </li> </ul> · My client really didn’t need all those features they were adding like rabbits. They needed to focus on delivering what customers wanted most – simplicity of solution focused on specific needs and the feeling that they mattered. We realigned the client’s resources to bundle the simple solutions these customers wanted against target use cases. We focused our marketing around stories of other customers - using a 'Just like them' approach. We highlighted my clients’ commitment to the SMB marketplace ONLY – and showcased their experience in key SMB areas as well as customers sharing their responsive support stories. Most importantly, we stopped following the competition with all those features that customers didn’t really want. The results? Well, we increased sales (and more importantly margins) in the top 4 opportunity markets we identified, while reducing the overall product Plan of Record by about 25%. The company grew around 30% in the nine months following our work. A few things to think about when defining competitive assessment and positioning: <o:p></o:p> <ul style="font-family: Trebuchet MS;"> <li>Start by creating a market landscape that focuses on your true competitors – defined by customer perception. Forget about who you think you compete with. Ask your customers who and what they perceive as alternatives. You may be surprised what you learn. </li> </ul> <ul> <li style="color: #111111;">Go ahead and look at the technology or product: You're dying to check under the hood, so do just that. But ask your customers about their experiences, ask other partners. Go beyond the specifications on the competitive website OR the perceptions your own engineers or specialists carry. What matters is what the customers perceive to be reality. </li> </ul> <ul style="font-family: Trebuchet MS;"> <li>Take a look at qualitative and 'social' aspects of the competition. Never underestimate the power of soft aspects. How competitors present themselves, how they are perceived is often the reason they win, and not their technology. Make sure you know exactly how your audience perceives your competition on multiple fronts: technology acumen, experience, customer savvy, customer responsiveness, market knowledge, corporate viability – look at ALL the soft aspects, and stop focusing on the technology alone. Also - look at the 'buzz' about this competitor in the market - find out what your audience is saying about them out on the social web. That's where true perception is often created in this networked age.</li> </ul> <ul style="font-family: Trebuchet MS;"> <li>Identify their Achilles Heel. In the above example the very technology breadth that my client envied (and chased) was one of the Achilles Heels of the competitors. When it comes to weaknesses – you have to look out-of-the-box. Often I find that competitive weakness isn’t in products (imagine that!). It’s in the market’s perception of their expertise, the quality of their support, their ‘caring’ factor when there is a problem. Look hard for those soft areas – for they are the areas you can exploit. And remember, for the market majority too many features or too-rich technology can be a weakness and not a strength. </li> </ul> <ul style="font-family: Trebuchet MS;"> <li>Identify their core value and what they do well – and let them do just that. Know their strengths and where those strengths will win – and stay far away. As a matter of fact - give them that space. You're better off focused on available opportunities. If there isn’t enough market for you to give them their space and still have a viable opportunity for yourself – then you might just think about your choice of target. </li> </ul> Understanding your audience's perceptions of you and other alternatives is a key step in creating a flight plan for your company growth. So the next time someone knocks on your door with a feeds 'n speeds competitive analysis - ask them what the customers think. That's what really matters. <o:p> </o:p> <div class="at-below-post-cat-page addthis_tool" data-url="https://rebelbrown.com/2009/05/15/competitive-assessment-that-works/"></div>