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Stay_in_front_of_your_business_ _if_you_dont_your_competitors_will
| Stay in front of your business - if you dont your competitors will!
Which existing customer is your business about to lose? What
potential customers will go to your competitors instead of you?
What new threat will assault your business next week, next month
or next quarter? When opportunity knocks is your business ready?
Is your organization as fast and competitive as it can be?
There is an old joke about a bear that goes something like
this... Two guys are out in the woods hiking when all of a
sudden a huge, black bear starts chasing them. Both hikers end
up in a tree, but the bear begins to climb the tree after them.
The first guy gets his sneakers out of his knapsack and starts
putting them on. The second guy says, "What are you doing? The
first guy says, "I figure when the bear gets too close, we'll
have to jump down and make a run for it." The second guy says,
"Are you crazy? You can't outrun a bear..." The first guy says,
"I don't have to outrun the bear. I only have to outrun you...
Outrunning your competition, while providing unparalleled
customer service is getting tougher and tougher. Daily, senior
executives face an unrelenting assault on their business
strategy driven by globalization, faster absorption of newer
technology, shorter product life cycles and the constantly
evolving marketing wild card - the ubiquitous World-Wide-Web!
If quality was the mantra of the 80's and ‘re-engineering'
the business term for the 90's, then velocity is key for the
21st century!
Over the years, Global Marketing gained an astute appreciation
for the ways and means of developing and running a successful
business in the industrial automation industry. After much
thought and lots of trial and error, we have learned various
‘truths' and complied them into 10 business axioms.
While there is no magic wand or silver bullet to guarantee
success in any business, these 10 axioms will help you traverse
the uncertain and ever-changing market. They will help you
develop a business strategy and execute tactics that obtains
sustainable growth and above average return to your
stakeholders.
We begin with Global Marketing business axiom # 1:
Stay in front of your business - if you don't your competitors
will!
This may seem obvious, but all too often Global Marketing is
called in to help a client after they are in serious trouble.
Many times we find that senior executives wait until growth
subsides, profit margins erode and competitive pressures force
steep discounting as the de facto business strategy. This
condition didn't occur overnight, it happens over time.
How do you tell someone who is complacent, that they are
complacent? This is not meant to be double-speak, but to convey
a powerful point in a pithy manner. No one plans to be
complacent in business, it happens slowly over time and one day
the company faces severe cut-backs and the CEO and management
team struggle to find a way forward before bankruptcy becomes
the only answer.
The sad truth is that this scenario could easily be averted.
Running a business has similar challenges as flying an airplane.
Once you define where you wish to go, you fly there. As you fly,
adjustments must be made. Changes in the weather and head or
tail winds effect your speed and direction. Indicators (or
measurements) help guide your progress and inform you if you are
on track to make your destination as well as determine if you
will meet your budgeted time frame. Therefore, meaningful
measurements become a key aspect in achieving your travel goals.
This is similar in reaching business objectives.
Most companies measure business operations. From Marketing and
Manufacturing to Sales and R&D, each has its own key indicators
to report the health of that part of the organization. When
combined, these measurements help the CEO decide if the company
is moving in line with the stated business strategy. These
measurements vary depending on the type of company and whether
the business is private or public. However, Global Marketing
contends that many of these indicators are outdated and not
real-time enough. Today's fiercely competitive and fast-paced
market demands that CEO's and senior executive stay in front of
their business. Understanding what your business is doing at any
point in time is crucial to respond to opportunities as well as
deal with deadly threats.
The monthly profit and loss statement is typically the most
anticipated and looked after report. The P&L statement is
important, but recognize it is a lagging indicator. It is
telling you the results of decisions made long ago. As are many
of the other measurements senior management receives. If your
firm is dealing with lagging indicators as the primary tool for
shaping the business strategy, your customers will suffer and
your competitors will love you. The 21st century business
environment demands that companies forge new measurements,
measurements that ‘lead' the business decision making
process. These leading indicators, coupled with a support system
that makes them visible in a timely (real-time if the firm can
afford the computing power) manner is essential.
Meaningful measurements allow a company to stay ahead of their
competitors and better serve their customers. Global Marketing
believes that "leading indicators" are most important. Depending
on the product and service, these leading indicators can track
and trend a variety of worthwhile information. A few examples
may include:
how many new customers are captured on a daily, weekly or
monthly basis - is your business expanding? how much new
literature is requested - gauge current level of interest in
your product or service how many new leads are generated - is
your marketing message effective & reaching the right audience?
how many ‘lost-customers' your business incurs over a
given period of time - early signs of business decay how often
do you lose to your competitor - tracks factual data on how your
business strategy is working quoting activity - quoting volume
and close rates predict future business levels time-to-market
issues - timely new product introduction is a competitive
advantage and re enforces brand image
Each enterprise should have its own set of measurements.
Although lagging indicators verify past decisions, leading
indicators allow you to stay ahead of your business, benefit
your customer and beguile your competitors. Your stakeholders
will be pleased too!
About the author:
Frank Williams is a marketer. With many post graduate courses in
management, leadership, marketing and technology to his credit,
Williams is a widely respected speaker, author and technologist.
He has significant knowledge in marketing strategies and is the
founder and CEO of Global Marketing, Inc. - a leader in
business, marketing and sales consulting
Other valuable articles can be found at:
http://members.cox.net/glmarketing/glmarketing/index.htm
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