Innovation is Child's Play!

Wednesday, September 1, 2010 by Betsy Westhafer
I just read an article by Mike Mitchell, president of Mitchell Innovation and Research, discussing the advantages of "playing" when it comes to driving innovation.  Given his permission, I would like to share some excerpts of his article with you:

"Imagine this:  a group of business executives gather in the grand ball room of a posh resort to play a child's game of musical chairs.  Boardroom demeanor soon turns to childlike scurrying as they rush to capture the few remaining chairs when the music stops.  Laughter erupts as the VP of finance finds himself on the outs and has to take a seat on the sidelines.  Victors congratulate each other with high fives while fierce competitors plot the next move that will guarantee them a chair when the music resumes.

"Is this another example of corporate types wasting time at shareholders' expense?  Are these executives out of touch with the serious business of achieving sales and profit goals?  Hardly.

"Perhaps they have discovered the value of play as a driver of creativity and innovation.  Innovation will help maintain their organization's competitive edge and will push it into a successful future.

"Numerous studies have linked play to creativity and innovation.  Playtime pays back big time in the game of innovation.  It is rocket fuel for creativity.  The value of play at work includes:

Play activates the right brain:  The contribution of this type of thinking is critical to the imagination and thus the development of new ideas.

Play builds teamwork:  Playtime can be practice ground for how to work together to come up with innovative ideas and putting those ideas into practice.

Play breaks down defenses:  When defenses are down, ideas and solutions to vexing problems have the space to bubble up.

Play creates engagement:  Doing nothing but work at work turns people into drones and machines - a dangerous recipe for creating boredom and disengagement.  Having some fun at work keeps employees engaged.  When people are engaged, they care.  When people care about their organization, they naturally want to improve it.  From their efforts to improve the organization come innovative new ideas and solutions.

I have not recently engaged in a conversation about innovation without Google coming into play, (no pun intended).  In researching their culture, they clearly subscribe to the tenets mentioned above:

"Our corporate headquarters, fondly nicknamed the Googleplex, is located in Mountain View, California. Today it's one of our many offices around the globe. While our offices are not identical, they tend to share some essential elements. Here are a few things you might see in a Google workspace:

  • Local expressions of each location, from a mural in Buenos Aires to ski gondolas in Zurich, showcasing each office's region and personality.
  • Bicycles or scooters for efficient travel between meetings; dogs; lava lamps; massage chairs; large inflatable balls.
  • Googlers sharing cubes, yurts and huddle rooms – and very few solo offices.
  • Laptops everywhere – standard issue for mobile coding, email on the go and note-taking.
  • Foosball, pool tables, volleyball courts, assorted video games, pianos, ping pong tables, and gyms that offer yoga and dance classes.
  • Grassroots employee groups for all interests, like meditation, film, wine tasting and salsa dancing.
  • Healthy lunches and dinners for all staff at a variety of cafés.
  • Break rooms packed with a variety of snacks and drinks to keep Googlers going."
Hard to argue the point, eh?

Focus on Your Core Customers

Wednesday, September 1, 2010 by Amy Spahn
 
Ownership, alignment and accountability are the keys to understanding a successful Customer Review program.  Now that the foundation has been set for the program it is time to determine which customers should receive an Annual Customer Review.  In order to provide a quality product that delivers substance i.e. an Annual Customer Review, you will need to focus on a small segment of the greater customer population.  There are two key questions that you will need to answer:  1)  Which customers should be the focus for an Annual Customer Review?  2)  Who is the right audience for an Annual Customer Review?  For this blog I will provide an answer to question #1.

Which customers should be the focus for an Annual Customer Review?

The ability to segment your customers into strategic, core and transactional groups is important in targeting customers for an Annual Customer Review.  Let's look at a few of the attributes for each of these customer segments.

Strategic:  represents 5 - 10% of customers; product management, engineering and marketing are engaged; strong customer relationships

Core:  represents 15 - 30% of customers; revenue driven; forward looking; grow and penetrate with current offerings

Transactional:  represents 40 - 60% of customers; the largest customer segment; vendor relationship; backward looking; premise or call center customers

There are customer programs that are targeted for each segment, but for an Annual Customer Review your Core customers are the primary candidates.  The benefits you will receive with this program:
 
Increase retention and account growth rates
 
Gain higher and broader level contacts in your customer base

Have business level discovery meetings across the enterprise to understand their growth opportunities, initiatives and challenges

Establish knowledge, relationship and creditability to move away from a vendor relationship and ultimately become a "trusted advisor"
 
Your Core customers will benefit from the Annual Customer Review program because you:
 
Understand their business better

Can now help solve their business challenges

Can share observations and recommendations to improve their business

Can collaborate more effectively
 
These are the benefits of an Annual Customer Review program for your Core customers.  Now, who within the Core customers should be our audience for your Annual Customer Review?  I will answer that question in my next blog.
 

These Marketing Tactics are Becoming More Important to the Marketing Strategy

Tuesday, August 31, 2010 by Kelly Jones

A CMO told me the other day, "I know which customers are strategic to my company. My challenge is making my company strategic to those customers."

His comment demonstrates the shift in marketing that is currently occurring within high-tech and service companies. In these organizations the marketing function is no longer about awareness, brand or feel-good programs. It is a results-oriented entity enabling the relationships and market position necessary to increase customer value and drive revenue.

As a result of this shift, 2010 ITSMA research shows an increase in the following tactics as part of marketing strategies: 

  • Thought leadership development
  • References and testimonials
  • Senior level relationship management programs, customer advisory boards, councils

...and a decline in:
  • Collateral (brochures, datasheets, etc.)
  • Hospitality
  • Sponsorships of sports/Cultural events
  • Print-based direct marketing
  • Traditional print/media advertising
  • Public trade shows

Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2010 www.itsma.com/access/research.asp


Has your company made the shift? If not, what's holding you back?


Customers Need to Come Together, Right Now, over YOU!

Monday, August 30, 2010 by Sean Geehan

 

The Beatles - Abbey RoadThe Beatle's classic song Come Together has been released by other legendary bands such as: Joe Cocker, U2, Aerosmith, Guns N’ Roses, Michael Jackson, and of course Marilyn Manson.  The chorus is simple, yet powerful:

“Come together, right now, over me.”


 I worked with a large manufacturer and services company who brought us in to design and launch a Customer Advisory  Council (CAC). I asked the Executive Sponsor and EVP, why was it important to have his top customers come together.  He rolled his eyes and proceeded to share an all too common story that starts with “My CEO met with the CEO of our  biggest customer and here's what …” 

The dream: This customer wanted them to build a solution that would change the industry. The customer convinced his boss (the CEO) to invest $100 Million in developing this solution, stating that the other 20 players in the industry had the same problem and would all but beg to have it.

The result: Two years after the release, no one including the original customer wanted this solution. The firm had rechanneled key resources down an innovation path that didn’t solve a problem or enable their customers to reach new levels. In the process, this company lost much credibility in the market, fell behind the competitors on developing solutions for real issues, and ended up writing off the $100 million investment. 
Customers coming together to show direction
How common is this: All too often I have found CEOs or key executives have not had a single conversation with a customer or key industry person. CEOs and Executives have used their power to unilaterally and without validation from anyone else re-direct key people, dollars, and strategy only to be completely off base, setting the company behind.

The reality: Most products and solutions need a market, not just one customer.  It is critical to include more than one in the ideation, design, testing and launching of any key initiative. This goes for development as well as strategy, marketing programs, sales approaches, and pricing models. In fact, the only topic off limits is profit margin. Everything else should be filtered through a group decision makers…this is the key to sustainability and predictability.

Bottom line: Unless your offerings can be supported by a single customer, make sure to secure Collective market input and validation from the decision makers of your most important customers by having them come together, right now, over you!

 

 


What Makes an Annual Customer Review a Program?

Thursday, August 19, 2010 by Amy Spahn

In my last blogs on Annual Customer Reviews you learned, at a high level, what a review is all about.  Now it is time to find out what the 3 keys to implementing a successful program are...Ownership, Alignment and Accountability. 

In order to drive the desired behavior from your sales force, implementing an Annual Customer Review needs to have a consistent and repeatable process tied to it or the results you will receive will fall well below expectations. The Annual Customer Review needs to be a formal Program. So, in order to establish a Program there must be a clear owner, alignment with sales leaders and accountability to drive successful adoption by the sales force.

Ownership

When considering which team within your organization should be the owner of an Annual Customer Review program a few might come to mind…Marketing, Client Relations, Sales. In my experience the largest success will be found when Sales owns and drives the initiative. As the owner, Sales must define the goals and objectives for the review and communicate the expectations to the sales force.


A team within the Sales organization needs to drive the implementation of the program through the delivery of a consistent review template, clearly defined process steps and the ability to measure results. Sales Operations or Sales Strategy/Productivity are teams that are equipped to drive a program like an Annual Customer Review.


Alignment

No program can be successful without the full cooperation of the leaders in the field. In order to drive alignment with your sales leaders it is imperative that there be constant communication throughout the early stages of the program. Communicate the goals, objectives, expectations and requirements for their sales teams.

Another best practice is to seek out the best practice leaders in the field; who has already displayed best in class when presenting Annual Customer Reviews to their customers? Utilize those who represent the ideal state to take everyone else along for the ride; they will be your best supporters. Those who exemplify what success looks like will lead others down that same road.

Accountability

If there are not defined expectations how can anyone be held accountable for desired behaviors. Early in the development of your Annual Customer Review program the expectations for the sales leaders and the sales force needs to be communicated.

  • How many reviews must be delivered?
  • What steps in the process will the sales force be responsible for delivering?
  • How will success be measured?
  • What training will be delivered?

Through effective communication everyone will understand the part they play in the overall Annual Customer Review program.

Once ownership, alignment and accountability have been defined and communicated you will be well on your way to implementing a sustainable, repeatable process that will be your Annual Customer Review program.


Using the Voice of the Customer to Create an Outside in Plan

Tuesday, August 17, 2010 by Kelly Jones
In my last post I discussed three key elements for strategic planning:
  1. Use the voice of the customer to create an outside-in plan
  2. Ensure the plan is well understood by employees
  3. Integrate the plan in your management system

Let's focus on the first element: an outside-in approach.

Your business in constantly changing. Agreed? The individuals closest to this change are your customers. Still with me? By tapping into their knowledge base, you stay ahead of the curve and create strategy that can live, grow and adapt with your organization.

Your customers know what is happening in their business. They know where they want to be in the next 12-24 months and they can tell you what you need to do to be a partner in getting them there. So to have a dynamic and organic plan, you have to be connected to your customers and you need to have deep relationships with your most strategic customers.

How do you do this? Through Customer Advisory Councils (CACs). This is a formal program involving the decision makers from your top customers (define top as largest revenue, most profitable, or most strategic). 

Geehan Group research shows most B2B companies have 80% of their revenue tied up in as little as 20% of their accounts. What does this look like for your organization? Segment your base and I think you'll be pleasantly surprised to find this is true.

Imagine what you can learn about your direction and strategies from the customers driving 80% of your revenue. Now imagine the impact these customers can have on future growth when you start building relationships with them and enabling them to advocate on your behalf. 

During the initial meeting you can gain market insight to help drive your strategic plan. At a follow-up meeting you can validate elements of the plan or gain input for your product/service/solution roadmap, brand position, innovation...you get the idea.

This group becomes an integral part of your strategy development process. They also become tightly linked with your company and an advocate for your success.

In the next blog we'll look at what to do with information gained from your Customer Advisory Council.



Keep the Momentum Going - Engage Your Customers between Council Meetings

Tuesday, August 17, 2010 by Karen Penney

You know how it feels when you get off a really fast ride and plant your feet back on solid ground? You feel like you’re still “moving.” I’ve experienced that same feeling after a Customer Advisory Council meeting. Things go so fast, there’s so much to talk about that when it’s over, you feel like you’re still going 100 miles an hour! 

 

And that’s probably a good thing. These ongoing engagement programs with top customer decision makers help the host team understand the market more clearly. The continuous customer feedback from these programs gives the executive team the ammunition they need to drive strategy, planning, marketing, innovation, acquisitions, sales and service. I emphasize continuous for a good reason. The dialog doesn’t stop when the meeting is over – you can learn even more by keeping the momentum going and engaging your customers between meetings. In her blog, "Is the End the End or Just the Beginning?" my colleague, Misty Strawser, articulates the importance of “getting to work” soon after the meeting and continuing to share the feedback received.

 

Keep the Momentum Going!

Council meetings are rich in member feedback with discussions that provide the host team with an intimate look into the “world of their customers.” Internally, the executive team has to very quickly “get to work” to evaluate what they heard and identify what they will do next – therein lies the opportunity to engage your customers between meetings

 

What’s the best way to do that? First and foremost, regular communications to members to keep them apprised of any updates, progress, company news, etc. are a must. But there are other options too, and in my next blog I’ll talk about Sub-committees and some best practices on how to make them successful.

 


Executive Sponsor Program, CSF #3 - Pace

Thursday, August 12, 2010 by Karen Posey

The third and final Critical Success Factor for the Executive Sponsor Program (ESP) is Pace. The Executive Sponsor Program is a journey, not a destination. I realize this sounds cliché. However, you can’t image how many organizations are not in alignment with this very simple principle.

Why? It’s typically because the Executive Sponsor at a high level knows what they want to achieve. They want improved client loyalty at an executive level, retention, increased testimonials/referencability and increased wallet share with these accounts, which is all very obtainable.

However, what they don’t understand are all the factors to help them achieve this objective. The Executive Sponsor Program (ESP) should be an executive relationship that is outside of any sales transaction.  It should be about strategically collaborating with your most important customers to help them solve critical business challenges or innovate something together that neither company could have achieved on their own.

You won’t achieve that by saying "I want our top 50 customer matched with our top 15 executives in the next two weeks." This is where the Pace comes in.

The graph below shows the journey based on our experience and research. The red graph shows when a company tries to implement themselves. You’re probably saying to yourself, we’re better than most organizations our results will be in the blue.






 

 









Sometimes, you need to go slow to go fast. Meaning, if done right, 80% of a successful launch is about the plan and 20% is the execution. We recommend that organizations start with no more than 3-10 pilots. This also goes back to Executive Sponsor alignment (CEO/President) and clearly understanding and communicating the goals, objectives and where this falls in the company’s priorities.

I will discuss "Common Myths in Building an Executive Sponsor Program" in my next blog.

Three Ways to Avoid the Dread in Strategic Planning

Tuesday, August 10, 2010 by Kelly Jones

If you are on a January-December fiscal calendar then you are entering the dreaded strategic planning cycle. Why is it dreaded? Usually it's because reams of data are poured over by strategic planners who create organizational thrusts and send them up the chain for review--only to be asked for a different slice or direction by senior leadership. I often hear organizations refer to the early stages of strategic planning as "analysis by paralysis." There is lots of great data, but no real compass to direct the analysis.

Where do you fit in this cycle? Are you the frustrated executive or the frustrated planner? Where is your presentation or binder from the past year? Please say it's not sitting on the shelf.

Materials on shelves are good for reference, not for day-to-day execution. The best strategic plans live within the organization.
  1. They are created from the outside-in based on the voice of the customer
  2. They are well understood by employees
  3. They are integrated into your management systems

If I've piqued your interest, check back for more on these three steps.

Inside-Out or Outside-In?

Wednesday, August 4, 2010 by Kelly Jones
I just read an article by Chief Learning Officer that states "Alignment Starts From the Inside Out." The article is based on research of 1,500 chief learning and development executives who say their organizations will align more closely to organizational objectives this year.

The article describes how performance management, competency development and leadership need to align to organization priorities. I fully agree. Having worked in and with a number of dysfunctional organizations I concluded years ago that companies need an inside-out approach.  I even started a consulting firm to help companies gain this alignment. 

As my blog title suggests, I now question my initial conclusions. Based on discussions with executives it became clear they really didn't have an anchor point to use for the alignment journey. They agreed with my value proposition and asked for proposals on how to achieve alignment, but at the end of the day they had to admit their strategic plans weren't very strategic and their brand destination not well defined. 

Of course this wasn't true of every company. It was true, though, of organizations that most needed my help and were struggling to transform themselves.

So what do well performing organizations do? They continually gain market insight and build relationships with users, influencers and decision makers who keep their organizations on the front end of change. In essence, they use an outside-in approach. I see it time and time again in my work here at the Geehan Group.

The Chief Learning Officer article references the use of customer sat metrics to create feedback loops and even states alignment shouldn't be based on internal HR processes--rather on what clients and employees want.

At the end of the day I'm pretty sure we're saying the same thing. You don't build a company and then find the market. You find the market and then build the company. Whether you call it inside-out or outside-in, what matters is alignment of resources to a market-based strategy. 

What do you think?

How Executive Summits Can Help You Reach Your Year-End Sales Goals

Tuesday, August 3, 2010 by Karen Battist

For any company concerned with year-end sales goals, the logical question is how can I accelerate prospects through the pipeline and convert them to sales? The answer is an Executive Summit. An Executive Summit provides a non-sales gathering between executive peers to learn and explore services and solutions offered by your B2B Company. A well planned, organized and executed Executive Summit accelerates a call to action from all prospects and can yield a 50% conversion rate. Can you say that about other Marketing Campaigns or Sales Tactics, or are you just throwing money at a target hoping you hit a bull’s eye?

The next natural question to ask is can your company justify the cost of an Executive Summit? Marketing teams are always challenged to provide ROI justifications in order obtain funding for campaigns. Because an Executive Summit’s costs and results are completely measureable (you know how much you spent, and you know how much in sales it directly generated), it provides a highly effective, easily funded program.  As a result, marketing groups are able to score an bull’s eye with all executives on their company’s leadership team, especially the financial leaders who hold your purse strings.

When is the right time to address meeting your year-end sales goals? From the perspective of a financial leader, Suzanne Smith, Chief Financial Officer of Geehan Group who has also managed several large IT outsourcing budgets states, "While it is a concern throughout the year, third quarter is the time most companies look to see if they are ahead or behind to meet year-end sales goals." An Executive Summit provides reliable and predictable sales results and truly is the Ultimate Weapon to reach your sales targets.

This Week in Golden Nuggets

Tuesday, August 3, 2010 by Betsy Westhafer
After recently attending a webinar about Building a Thought Leadership Platform presented by Scott Ginsberg (the guy who always wears a nametag and author of "The Approachable Leader"), I thought it might be fun to throw out some little nuggets of information and insight he shared:
  • Consistency is far better than rare moments of greatness.
  • Ideas are free but execution is priceless.
  • Nobody notices normal.  Nobody buys boring.  Nobody pays for average.
  • Create a strategy for staying constantly relevant.
  • Thoughts are local; messages are global.
  • Hustle while you wait.
  • Make the mundane memorable.

And finally I leave you with this thought to ponder:
     If everyone did what you said, what would the world look like?

If you want more where that came from, go to www.hellomynameisScott.com

Have a great week!

~Betsy



Executive Sponsor Program, CSF #2 ~ Standard, Repeatable Process that is Sustainable

Thursday, July 29, 2010 by Karen Posey

The Center of Excellence (COE) is the "infrastructure" you need to have a program that is a standard, repeatable process that is sustainable. Without it, the program will become another "event" that your organization tried again but failed.

Here are some common questions we get asked when discussing the Executive Sponsor Program:

  • How do we set our Executive Sponsors up for success?
  • How do we keep the Customer Executive engaged?
  • What criteria do you use to match the Customer Executive with our Executive?
  • What criteria should we use to select the accounts?
  • How many accounts should be in the program?
  • How do you handle Global Accounts?
  • How do you capture the great insight gained and leverage within the organization?

These are all excellent questions and ones that I’m always excited to answer, because when built correctly leveraging proven methodology,  best practices and our experience it will ensure the program is set up for success.

I will discuss "Executive Sponsor Program CSF#3 - Pace" in my next blog.


How to Make Your Marketing Dollars Go Further

Thursday, July 29, 2010 by Kelly Jones
"If sustainable, predictable, profitable growth is the holy grail you are seeking, you have to build relationships with decision makers," says Sean Geehan, founder of the Geehan Group and author of the upcoming book The B2B Executive Playbook.

This assertion at a recent Columbus AMA Special Interest Group Meeting prompted an interesting question from the audience.

"Are you suggesting we focus all our relationship efforts on decision makers?" asked a B2B marketer. 
 
I like this question because I think it is at the heart of a fundamental change we are making not just as marketers, but as selling organizations. More and more companies are asking for assistance in "moving up the food chain"--being able to call on and have relationships with higher level executives.

They realize that customer satisfaction and NPS scores are only a portion of what we need to do with regard to customer loyalty and retention. To sell solutions, to solve problems, to become trusted business partners means we have to build relationships at the decision maker level. We have to understand their business aspirations and we have to deliver value. And to answer the gentleman's question, we have to do this while maintaining our relationships with users and influencers.

Wow! A big job to be sure. But I think we are up to it. We've mastered expense control and quality management. We've seen our organizations through mergers and divestitures. There's no reason why we can't step up and help our organization's build profitable customer relationships with decision makers.

And, as Sean shared in his presentation, this can be accomplished without spending any additional money. We simply need to re-balance the money we are spending today.



 

Where is your organization at today? Where do you want to be? What are you doing to help your organization make the shift? I'd love to hear your comments.

Beyond NPS: Ways to Elevate Customer Relationships

Tuesday, July 27, 2010 by Kelly Jones

When clients come to us asking how to take their customer relationship programs to the next level they are typically asking how they can increase the level of relationship within the account. In other words, how do they move from vendor-type relationships with procurement to C-suite trusted partner status?

 The answer: Customer Advisory Councils and Executive Sponsor Programs.

A Customer Advisory Council is the first step in our B2B playbook. This forum of 20-30 decision makers represents your best accounts. A typical program includes facilitated, face-to-face discussions twice per year with sustaining activities, such as subcommittees, between meetings to keep members engaged.

Unlike other marketing activities that are focused on lead generation or measurement, Customer Advisory Councils are solely focused on building relationships and generating the market insight necessary to keep your business ahead of the curve.

Clients who have implemented Councils have seen, on average:

  • 6% increase in customer retention
  • 22% increase in new sales
  • 10 additional customer references

The second tool is an Executive Sponsor Program (ESP). This formal approach to one-on-one relationships is best implemented following a Customer Advisory Council.

An ESP aligns an executive within your company with an executive in the customer account. The program exists outside of the sales cycle and outside of any particular deal or transaction. The intention is, over time, to create interdependency.

In interdependency, you become co-creators with your customers. Together, you and your customer create something that neither of you could do on your own. You become part of your customer’s long-term strategy.

Used in tandem, Customer Advisory Councils and Executive Sponsor Programs strengthen customer relationships and create sustainable, predictable, profitable growth. In doing so, they require the commitment and resourcing of any major corporate initiative.

 So, if you truly want to take your customer relationships to the next level, start with a Customer Advisory Council. Integrate the insights gained from the Council into your organizational planning process. As your company becomes more market focused, move to programs like ESP. Along the way, use your referral process and NPS programs to gauge how well you are moving the needle.

Imagine if you will, . . .

Thursday, July 22, 2010 by Betsy Westhafer
One of my colleagues here at the Geehan Group is a whiz at engaging with people via LinkedIn, blogs, discussion groups, etc.  I have learned several of the tricks of the trade from her, and am amazed at the amount of knowledge to be gained just by paying a little bit of attention to these social media sites.

This morning the thought ocurred to me -- What if you were able to get all your customers and prospects into one room, for an indefinite amount of time, and listen to and document every word they said.  What if you told them they could discuss anything with you and with each other:  the market, their challenges, your company, your products, your services, their vision of the future, their expectations of a trusted advisor vs. that of a vendor, and any other topics that were top of mind for them.  How valuable would that information be to you as you plan your strategies? Your product portfolio? Your communications? I dare say it would be immeasurable.

Now translate that same experience to that which you can have by engaging the market through online media.  Not only can you listen to what is going on "out there," you can also contribute and become a known entity to the most vocal and passionate among your targets.  There's no better place to carve your niche as thought leaders in your space that these communities.  But more importantly, there's an amazing opportunity to LISTEN to what's going on as well. 

Let me be clear -- this is not to take the place of developing in-person relationships and engaging with the market on a face-to-face, consistent basis.  But for added insight, try jumping in a conversation or two online.  I think you may be surprised at what you will discover.

Is the End the End or Just the Beginning?

Tuesday, July 20, 2010 by Misty Strawser
Do you feel relieved when your Customer Advisory Board meeting is over and your customers have gone home? Enjoy that thought for just a moment; now come back to reality and think again! The end isn't the end after all; it's just the beginning. The real work is just getting started!

All too often, when companies think about their Customer Advisory Boards, they think about individual meetings. They know their advisers meet twice a year (say April and October) so they begin reserving hotel rooms and planning an agenda for each meeting three months out. That's easy enough, isn't it? No! In fact, it's a big mistake. That mindset needs to change!

A Customer Advisory Board is much more than just an event! To really be successful, it needs to be part of an ongoing engagement program that impacts decision making, not just another customer meeting or two. It does not begin and end in a meeting room; it permeates the air and becomes part of the culture of the organization. When the meeting ends and the executive team returns to the office, it's time for the real work to begin.

The information gleaned from customers must be explored. What did they say that must not be ignored? What is happening in the market that will impact the organization 12, 24 or 36 months from now? What changes are needed to the current product portfolio? What can the organization do to differentiate itself? What does the organization need to do to grow?

Next steps must be identified, prioritized, and incorporated into operational and strategic plans. They must be shared throughout the organization. Sales must know what's on the minds of their customers. They must know what solutions look like. Product development must know what customers want. They must know what features and functions are needed. Marketing must know what messages resonate. There must be a coordinated effort for all areas to understand what customers said during the meeting and what they really need to succeed.

Plans, actions and progress must then be communicated back to the Customer Advisory Board on a consistent basis. Yes, that's right, but it's not easy! It also takes a coordinated effort. Plans and actions must be implemented and progress must be tracked. That's my responsibility for some clients. I take on the role of the "friendly nag," consistently following up with members of the team to track progress so it can be communicated back to the Customer Advisory Board! Believe it or not, my clients rather like my "friendly nagging!" They find it reassuring to know that I'm not going to let them fail! You see, members of a Customer Advisory Board want to know how their input is being used. They want to know they are making a positive impact on the organization. And most importantly, they want to know they are being heard and that actions are being taken to better meet their needs.

So, take a break when the last customer leaves. Enjoy that sigh of relief after a successful meeting. But make it brief! The end isn't the end after all; it's just the beginning. The real work is just getting started!

Critical Success Factors in Launching & Sustaining an Executive Sponsor Program

Thursday, July 15, 2010 by Karen Posey
In my last blog I shared the two elements of any successful Executive Sponsor Program (ESP), which are:

· Center of Excellence
· Engagement

It's now time to discuss the Critical Success Factors for launching and sustaining an Executive Sponsor Program.   ESP should focus on your top 20-25% of your customers that represent over 70% of your revenue.  If you think about why previous programs such as the Top 100 or Top 200 fail and do a post-mortem, my experience and research has show at least one of these three Critical Success Factors (CSF's) were at the root of the failure.

CSF #1 – President or CEO endorsement and involvement.
I have seen numerous Executive Sponsor Programs fail because the CEO/President delegates this important program to the VP of Sales or even VP of Customer Experience (depending on size of the organization). The flaw in this thinking is that whether we like it or not, as great and influential as these executives may be in your organization, they don’t have the “juice” to ensure that a peer executive truly gets engaged in this program and takes his/her role seriously.

If you are “that” executive who has just been tasked to “own” this important program for your organization, there are some key things you need to negotiate with the President/CEO to ensure your success:
 
· You need the CEO/President to endorse the program.  You need their commitment to be the overall Executive Sponsor for the Program, you can be the champion. Having the CEO/President be the overall Executive Sponsor means that you will need very little of their time, but there three key things he/she must do:

1. Communicate, Communicate, Communicate – You will give the CEO/President the things to say, but the messages must come from them to set the appropriate tone to the organization that this is a program not an event and it’s your new way of life and how ESP plays a key part in the company’s overall strategy. If it’s not, then why are you doing it?

2. Drive Accountability & Executive Alignment – You need the CEO/President to be an escalation point and enforcer to hold people accountable once the objectives and expectations have been set. You also need them to ensure that everyone is on board. You can’t afford passive acceptance or defectors.

3. Lead by Example – The CEO/President needs to be an Executive Sponsor for at least one account
 
· Objectives & Priorities for the Program. Once you have the commitment from the CEO/President, you need to work with them on establishing the Objectives and Priorities for the program. This is something the CEO/President cannot delegate. If they are going to support you, you need to be in tight alignment here. Look at your top 20-25% of your accounts. What type of relationship do you have with them today and what type of relationship do you want?

I will discuss Executive Sponsor Program Critical Success Factor #2 in my next blog.

Are You on Track to Meet Your 2010 Sales Goals?

Monday, July 12, 2010 by Karen Penney
For those of us on a January-December fiscal year, Q3 is NOW – and it is the time when we are very aware of exactly where we stand for meeting our year-end sales goals.  If you're concerned about reaching your goal, you might want to consider forming a Customer Advisory Council (CAC). 

Over my six years with Geehan Group, I’ve worked with many CACs.  I've seen our clients bring together decision makers from their top customers ... and it's a powerful thing!  Listening to what those customers have to say is even more powerful, and I’ve witnessed the incredible insights uncovered as well as the positive benefits as a result of our client taking action based on their customers' feedback. 

Learning from Your Top Customers
What happens when you engage key customer decision makers directly with the leadership team?  You gain an intimate understanding of their needs, aspirations, and the direction of the market.  Those learnings then become the foundation from which your strategy, planning, marketing, innovation, acquisitions, sales and service will be designed, executed, and altered to maximize organizational success.

Your leadership team listens as your customers discuss their biggest issues, challenges, aspirations and priorities.  You learn how they think, how they manage, lead, and make key decisions; how their environment is changing, and what they are doing to address it.  You have the opportunity to understand their world through the eyes of the decision makers who will ultimately decide how their resources and dollars will be allocated.

Driving Predictable, Sustainable, Profitable Growth
All of this gives you an edge … an edge your competitors don’t have.  Your strategic direction is guided by those top customers - and they see the value of their role on the Council.  Their feedback becomes instrumental in both business and product planning.  They become personally and emotionally invested in your success; they become advocates for you in the market.  In addition, they help identify new prospects, drive market awareness, accelerate sales cycles and close deals.

By listening and investing resources in areas that are viable and important to the decision makers of your most important customers and markets, you will consistently drive your firm’s revenue.  It will also cut out the time, energy and money investing where there is little or no business value.

If you’re not currently gaining the insight from your top customers through a Customer Advisory Council, perhaps now is the time to take action.  Engaging your top customers will drive revenue for your company – I’ve witnessed the results firsthand!  Make the last two quarters of this year a success – build a powerful link to your customers and ensure you meet – or better yet, exceed – your year-end sales goals! 

 

Critical Strategic Combination: Mixing Speed with Size

Wednesday, July 7, 2010 by Rob Urbanowicz
One of the biggest challenges facing large companies today is their ability to create market alignment: recognizing changes in market demands and shifting the company quickly to meet those demands.  In the B2B world business transformation takes the critical combination of strategy, relationships and execution speed.

Introducing Dell’s Large Enterprise Business Unit.

CIO’s know Dell as the company that offers great products at great prices – delivered fast to meet sometimes unreasonable demands. 

So, when I attended Dell’s CIO Advisory Panel (ie Customer Advisory Council) a few weeks ago in New York City, I was pleasantly surprised.  I knew going in to this meeting that Dell aspires to be something different.  Better, bigger, more flexible, and with a broader set of capabilities to enhance the value they bring to CIO’s through executive relationships.  What I didn’t know was Dell’s passion to listen, and the incredible ability to combine speed with their strategic focus.

Dell’s LE CIO Advisory Panel was organized and hosted by Steve Schuckenbrock, LE President, and Andy Lark, LE VP and GM.  The intent of the meeting was to capture insights (voice of the customer) into the minds and perspectives of CIOs from throughout North America.  I’ve worked with many large high tech firms, and the most intimidating moment for presenters or discussion leaders is to move away from telling, and focus on listening.  It’s inherent in the genes of an executive, hired to know their business, to present all their knowledge rather than listen to the market.  Dell isn’t like the others.  Dell actively listened to their CIO’s in this forum.  And the insight gained was immeasurable.   

Andy Lark states “We went in prepared for discussions with our ears and eyes wide open.  We weren’t sure what the outcomes would be – but we found that the insights gained from these market leaders will help us accelerate the vision for Dell to be the world’s #1 technology partner. “

All great, but what amazed me most was the ability for Dell to rapidly take insights from these market leading CIO’s and engage the Dell LE team to deliver.  Just days after the meeting, Steve Schuckenbrock was able to coral the team and resources needed to deliver against new market and service needs, and educate the sales force about positioning Dell’s leading cloud computing capabilities to CIO’s needs.  Dell's taken acheiving market alignment to a new level.

Dell is not a slow elephant in this world – in fact they move like the young mountain lion on the prowl.