Deliver or Else!

Seems obvious.  But how many companies do not deliver a product which truly meets or exceeds customer expectations?  Can you imagine what would happen to a Company which exceeded customer expectations on every dimension?  Talk about people lining up at the door to buy!

So, how can you ensure that you  will exceed customer expectations?  First, do not over promise or promise things you cannot deliver.  Make sure what you “advertise” is what you deliver.  Second, provide something unexpected with your product.  Something that has an added benefit that your customers do not expect.  Finally, follow-up to be sure your customers are more then satisfied with your product  (obviously this is only feasible with higher priced items).

So, the message is simple… Deliver or else!  To sustain and grow your business, provide your customers with more then they expect!

Rich

Bizvice:  Business Strategy, Marketing & Entrepreneurship

Chrysler

Here is a little advice for the new management at Chrysler…  Tell consumers why they should buy your products versus the competition. 

Frankly, I am stunned at auto advertising.  There does not seem to be clear differentiation between cars.  Why is one car better then another?  How is it really different?  Bottom  line, why should consumers pick Chrysler products over others?  Everyone says their cars are better engineered, safer, better looking, faster, with nicer and more roomy interiors.  So why are Chrysler products really better?  What sustainable points of difference exist that will convince consumers that Chrysler cars are better?

Admittedly, this is not an easy problem to solve in any category.  Yet, without a solution I believe Chrysler will eventually fail.

What’s your opinion?

Rich

Bizvice:  Business Strategy, Entrepreneurship & Marketing

Everything Cell Phones… Part 2

Did you hear that the government wants to embed in our cell phones devices which will detect hazardous materials such as poison gas and potentially radioactivity?   Talk about taking our cell phones to the next level!  So, perhaps the predictions of the cell phone being the one device that does literally everything is not far off!

Of course, “arming” the population with cell phones that detect gas or other hazardous material is one way of involving the entire population in our constant vigilance over terrorism.  What would you do if your cell phone suddenly came “alive” and notified you that you were in an area of hazardous material? 

Given the above, and the current surge of providing TV on your cell phones, how far away can we be from the items mentioned in my last post (unlocking and starting your car, paying for anything and everything, advertising messages in store, etc.)?

Rich

Bizvice:   Business Strategy, Marketing & Entrepreneurship

“Everything” Cell Phones

Many people in the tech industry are predicting that our cell phones will be the device that connects us to everything.  It appears to be happening in Asia more quickly then the US.  For example, why not use your cell phone as a key to your house, hotel room, etc.?  Certainly using it as a credit card would seem to be no problem.  What if you were walking down the isle at the supermarket, and you pointed it at a product and the cell phone extolled the virtues of that product?   What if the supermarket itself, provided its “discounts” over the cell as you travelled the store?

This will all happen and more.  It will make us tethered to our cell phones like never before.  Open your car door?  Sure!  Start the engine?  Sure!  Buy a hamburger?  Of course!  This is all quite interesting and adds to music, videos, e-mail, GPS systems, etc….  So, I ask, why do we need computers????

Rich

Bizvice:  Business Strategy, Marketing & Entrepreneurship

An Open Invitation

As a thank you to those of you who take the time to read and follow my blog, I would like to make this offer:  Ask me any question related to Business Strategy, Marketing or Entrepreneurship and I will do my best to provide you with an honest answer.  This is an opportunity for you to receive free consulting advice from someone who has been there and done that.  Just give me as many facts as you can surrounding your question and I will give you my best advice!  

Rich

Bizvice:  Business Strategy, Marketing & Entrepreneurship

Sustainable Competitive Advantage

Sustainable Competitive Advantage is, perhaps, the most important characteristic of a successful Company, Product, or Service.  Without a competitive advantage that is either real or perceived by customers that can be sustained over time, the prospects for a successful business is slim to none.

How do you know if you have such a sustainable competitive advantage?  Do your homework!   What are the critical differences between your service or product and your competition.  Have you researched this difference with your customers?  Do they agree that what you are providing is clearly and meaningfully different and better then competition?  Is this differentiation sustainable over the long-term as a result of patents, unique technology, unique manufacturing capabilities, etc.?  This is the point in your business development where you really need to be objective and honest with yourself.  If your product or service cannot live up to this type of scrutiny, then you probably should not pursue that service or product business.

So, get a good research partner and get the answers to the questions above before you go to far.   You will clearly benefit in the long-run.

Rich

Bizvice:  Business Strategy, Marketing & Entrepreneurship

Recognition And Motivation

How do you best motivate your employees?  What role does recognition play in the motivation equation? 

Let’s start with the basics.   Recognition is basic to human behavior.  At least that is my belief.  I am sure if we checked with the psychology experts they would agree.  Everyone wants to be recognized for doing a good job.  Whether it’s your kids who get a good grade, or make a good play in a sport, or your spouse who buys you an unexpected gift, or your religious leader who recognizes special services performed by members of your congregation.  Human’s want to be recognized. 

Thus in the business environment, recognizing good work is highly motivating and, I believe, many times it is even better then compensation.  Recognition can take many forms.  An annual “award” such as a sales award, or leadership award are clearly great recognition opportunities.  Especially if they are presented in front of the entire Company.  But, throughout the year there are many ways to recognize outstanding performance.    Flowers, lunches, dinners, music, books, in-house publications, simple memo’s of congratulations are just a few of the ways you can recognize your employees for great work.  The right tool will need to “fit the occasion” but you should consider what will really make someone “proud” that they achieved this recognition.  So, a new tech toy might work for some but not for others.  Flowers to a wife/family might work for some  but not for others.  Just think carefully about what is best to fit the situation.  AND, do not overdo it….  Recognize where appropriate.

If you follow this advice, you will be amazed at how motivated your employees become!

Rich

Bizvice:  Strategy, Marketing & Entrepreneurship

Good Service or Great Service?

Do you know the difference between good service and great service?   I have talked about service as the key driver of businesses over the coming years.  Yet, I am not sure all of us appreciate the difference between good service and great service.  Great service leads to significant loyalty and referrals.  Good service may become the expectation of your customers and may  not set you apart from competition. 

So, what is the difference.  The answer is the “unexpected” surprises you get with great service.  All of us have experienced such “unexpected” surprises in our lives.  Let me cite a few of my own:

1.  The time I wanted to buy some clothes from a local men’s store and the salesman came to my office with a selection and then sent the tailor to my office to fit me.  Then had the finished products delivered to me at the office;

2.  The time I stayed in a hotel in Hong Kong and got off the elevator after dinner and observed a hotel employee, after seeing me, run to my room to open my door;

3.  The time I returned something to Nordstrom’s that I had received as a gift, only to learn that Nordstrom’s did not carry that item.  Yet the Nordstrom employee happily took the returned item and gave me full credit.  Even told me he personally would return it to the store where it was actually purchased;

4.  Most recently, when I returned a pair of Puma sneakers due to an imperfection and received back within one week a brand new pair, no questions asked.

I am sure all of you have experienced such “unexpected” surprises.  These are the things that separate great service from simply good service.  The more you can provide great service to your customers the more successful your business will become.

Rich

Bizvice:  Strategy, Marketing & Entrepreneurship

Your Service Business-”Islands” or “Partners”?

One of the most difficult tasks facing any small to mid-sized consulting company is transforming itself from “islands” to a true “partnership.”  Without this transformation, I believe a consulting company cannot survive long term and, as importantly, its “products” will not reach their maximum value for their clients.

So, how do you accomplish this transformation?   In the beginning of a personal services business there is the founder(s).  They work to get clients, deliver with excellence and hopefully, get more business.  They basically operate as islands.  As the Company grows, it hires more consultants who fundamentally do the same thing.  Get business, deliver with excellence and, hopefully get more business from the same clients.  If the Company is well managed, collaboration will be mandated to ensure the products delivered are of the highest quality and not simply the thinking of one person.  Over time, the intellectual capital of the Firm will be collected so that future projects can benefit from the thinking of past, similar projects.

However, in a high ego business like consulting, getting consultants to act in the best interests of the Firm verus acting as “islands” is most difficult.  Particularily if bonus plans are structured in such a way as to reward individual productivity.  This “island effect” is neither good for the Firm or for the Clients.  From a Firm perspective it would be as if a player on a football team ignored everyone else on the team and ran his own plays.  Without a TEAM, everyone will lose.  No intellectual capital will be developed.  AND, clients will not receive the best the TEAM has to offer.

Perhaps the best person I know who has dealt successfully with this very issue is David Maister.  David’s blog and information can be found at http://davidmaister.com/blog  David is a master at this subject and was of enormous help to my Partners and I as we made a successful transition from Islands to Partners.

Rich

Bizvice:  Strategy, Marketing & Entrepreneurship

Incentive Plans…Be Careful What You Wish For!

Do you want to motivate your employees to achieve specific goals?  Have you considered an incentive plan?  If you have considered a plan or you have actually implemented a plan how can you be sure you actually achieve your goals?

I have often said, be careful what you wish for with an incentive plan because you may actually get your wish!  What exactly do I mean?   If you want individuals to sell and you design a plan to reward results, how will that plan effect your staff’s ability or desire to work together?  If your plan is individually based, you can be sure human nature will play a major role in how your staff acts and they will become “islands” within the organization.  Not wanting to share leads or work together to close sales.  Is that what you want?  I doubt it?

So, what is the best plan design?  The answer really depends upon what you want to achieve.  If you want to increase Company sales but at the same time reward individual achievement, then you must combine the two.  For example, in order for an individual to receive a bonus, one restriction might be that the Company must achieve its overall objectives. 

Incentive plans could also include ownership in the Company.  This is particularly beneficial in personal services businesses including Consulting companies.  One successful plan approach is to allow your professionals to share in the equity of your Company based upon their performance and based upon the growth of the firm.  In essence, “new” equity is distributed based upon Company growth to those who contributed to that growth.

Of course, issues around Company “control” must be addressed and can usually be accommodated with non-voting stock.  But the details of such a plan should be discussed with your accountant and Lawyer.

So, as you design any incentive plan, be sure to envision what the end result will be taking into account what you would like to achieve and, of course, human nature.

Rich

Bizvice:  Strategy, Marketing & Entrepreneurship