Journal of an Aspiring Leader



December 8, 2011

Formisano: Managers Guide to Strategy

Filed under: Administrative

This is a lightweight, easily accessible guide to the basics of strategy. It gives a good overview of a basic strategy development framework.

The framework itself is based on an assessment of the current status, and gives a number of tools to analyse this, analyses which are in turn used to make strategic choices and form a coherent strategic plan. Further than this, the book gives pragmatic tips on how to actually implement and see through the changes a new strategy will have to bring about.

 

Rating:

Must have - gives a great starting point for formal strategy development and implementation, as well as examples of concrete strategies others have implemented.


September 19, 2011

Sales Management, Robert J. Calvin

Filed under: Book Review

This is a condensed book containing a wealth of knowledge on all aspects of sales management. The book has a good balance between theoretical advice and practical items that one can readily implement.

Key take aways:

  • The complete sales process breaks down into the following overall steps:
  • Strategy & Objectives
  • Hiring
  • Training
  • Compensation
  • Organisation
  • Forecasts
  • Non-monetary motivation
  • Sales Force Automation
  • Performance evaluations
  • Buyers can generally be broken down as follows:
    • New systems buyer - long sales cycle, consultative sales
    • Established systems buyer - typically a modified re-buy
    • New product buyer - use feature/benefit selling
    • Commodity buyer - sales dependent on relations
  • P. 17 has a basic sales person job specification
  • P. 36-37 has a list of sample interview questions for hiring
  • Use references to hire - both from former employees and former customers
  • Common hiring mistakes:
    • Hiring the best of a bad bunch
    • Hiring people we like, non-threatening
    • Not checking references
    • Talking too much at interviews
    • Not matching sales person style to buyer behaviour
    • Not terminating weak performers
  • P. 70 has a summary of how decisions are made by person-type, tap into this to persuade better
  • P. 85 has a check-list for field coaching evaluation
  • P. 87-88 has a work-with evaluation check-list
  • P. 89 lists a number of dimensions on which a sales person might focus his attention to improve performance:
    • Introducing new product/service
    • Analysing the competition
    • Opening new accounts
    • Retaining or expanding existing / old accounts
    • Sales force automation
    • Improve selling techniques
    • Obtaining leads
    • Managing time
  • P. 121 breaks down the cost of putting a sales person on the road
  • P. 130 goes through the considerations for making a choice of sales channels
  • P. 164 Discusses top-down vs. bottom-up sales forecasting and how to marry the two
  • P. 210 has an exhaustive list on which sales person performance should be evaluated
  • P. 222 suggests a number of ways to measure sales force productivity:
  • Verdict: Get it and use it as a reference book if you manage sales.


    September 6, 2011

    A disease the software industry

    Filed under: Software Excellence

    Back in 2006 I accidentally formed a theory around the software, and software-dependant, industry; namely that there is a widespread disease plaguing the industry, hurting profits and brands. The disease is that for whatever reason, software always seems to be … troublesome … it tends to be late and have errors in it.

    Think about how many times you have experienced problems with your work PC, home PC, phone, car, etc. etc. and as the use and dependence on software becomes more and more pervasive, we encounter these problems all the bit, but we have become accustomed to them and have learnt to live with them.

    Now think about how many hours are wasted in productivity, and how many companies have failed because their software caused their products to ship late or degraded the consumers experience with resulting damage to sales revenue and brands. Think of the enormous sums of money we are talking about here?

    The ‘disease’ as I originally formulated it was really based in the ability of software departments shipping quality products on time, which in turn reflects the ineptness of software managers to harness what is really an R&D process into a production and manufacturing environment… And once you think about that it dawns on you; "harness an R&D process into a manufacturing environment". This is actually difficult isn’t it? Fundamentally, the R&D process has to find new and innovative ways of solving new problems all the time, and once the design is done, the product is also done. In contrast, manufacturing has much more decoupled design and production processes where one comes before the other as opposed to be an inherently iterative process of gradual elaboration and ever-changing product.

    I have been so lucky in my career to have had plenty of exposure to these problems, and witnessed first-hand the monumental impact this has had on a former top brand and industry player. I have also had the luck of being able to refine my thinking and ideas around the topic over the years, repeatedly applying and improving methods to govern software organisations in order to deliver what the customer wants, when he wants it, at high quality.

    The basic principle of Software Governance in scaled up organisations (50+) is formulated around the idea that in order to govern an R&D process in a manufacturing environment, you need to apply elements from both.
    Many books have been written on the topic of Agile Software Development - basically applying a fundamental research process to software development. Conversely, large books have been written on applying Lean and Six Sigma to software development - process frameworks that are inherently manufacturing based. At the same time you have competing project management methodologies in e.g. Waterfall and the iterative MSF.
    None of the above succeed in grasping the problem in its entirety, and crucially most leave out practical advice on the ongoing governance of the software production. Even the renowned CMMi framework does not cover the entire space, and common to all is that they leave out the human factor. Agile does to some extent rely on the quality of the engineer, but the reality is that in a scaled up organisation, the administration and leadership skills of leaders is equally important. Hence, this is my conclusion; In order to create a repeatedly successful software product, the following conditions must be met:

    • Clear product vision
    • A governance framework
    • Active leadership
    • Engineering talent
    If either one is missing, the production will be flawed and both profit and brand will be suboptimal.

     

    In the very near future I will publish a white paper outlining my experiences and methods. I am looking forward to any comments.


    May 23, 2011

    The Secrets of Selling by Geoff King

    Filed under: Book Review

    The Secrets of Selling is a great book for experienced as well as new sales people or people with an interest in sales!

    I highly recommend this book for an informal no-nonsense run-down of every trick and straightforward method needed to get into a routine of selling. I covers everything from sales/CRM tools to what time of day to call clients/prospects, and does also delve into the surface of sales management.

    Main take aways:

    • Before going into a sales meeting, consider what you want out of it. Here are the six possible outcomes of a sales meeting;
    • The contract, or a pilot contract
    •  Knowledge that you cannot win - walk away
    • A timeline on which to base the sale
    • A schedule of dates where you review progress on work
    • A who’s who chart of the client’s organisation
    • Other help to explore the account (Hunting License)
  • When selling services, don’t assume that the client automatically understands the benefit of each dimension of service, example;
    • Service: We sell strong Project Management
    • Benefit: The client will have greater clarity on what is being delivered and when, as well as an increased confidence in the delivery
  • Choice of words;
    • Use ‘amount’, not ‘cost’
    • Use ‘agreement’, not ‘contract’
    • Use ‘presentation’, not ‘pitch’
    • Use ‘authorise’, not ‘buy’
    • Use ‘value for money’, not ‘cheap’
    • Use ‘improve’, not ‘change’
  • How to suss people out really quickly
  • Phases in sending a good proposal
    1. Get the structure right, find a good template like this one: http://www.secrets-of-selling.com/docs/ProposalsTemplate.doc
    2. Put words in it, then get it reviewed by a colleague
    3. final format, cross t’s, dot i’s, then send for final review
    4. Ready to send
  • Involving your prospect in the bid writing process can be extremely helpful as it is an opportunity to ensure that key phrases and ideas are expressed in the proposal, making him more likely to accept the it.
  • Case studies are potent marketing and sales weapons, what should they contain;
    • Client and project name
    • One sentence summary of the work, including main benefit
    • Summary of client’s commercial situation
    • Summary of client’s technical situation
    • Summary of what was done, including what your company did
    • Summary of how this benefited the client
    • The footer should describe your company in two sentences and include contact details
  • The four main ways of finding new business;
    • Mailshots
    • Seminars
    • Telephoning
    • Partners
  • Phone selling, the 4 reponses;
    1. ‘Yes, we have a need for your services’: Sell, sell, sell (ask for a meeting)
    2. ‘We may have a need in the future’: Consider if you believe this, if so, arrange to call back 
    3. ‘No, we will never want this’: Walk away
    4. The response is rude: Walk away, forget it. Your next call should be to someone where you think the probability of a sale is high to get you back in a positive vibe.
  • Measuring the real chance of winning work:
    • 5%: Specific opportunity identified with prospect
    • 20%: Specific opportunity identified with client
    • 33%: Written proposal submitted
    • 50%: Written proposal submitted, prospect is keen to see you
    • 90%: Contract verbally awarded
    • 25%: Verbal award was more than 2 months ago with no news
  • Watch out for IPR clauses!
  • Option 1: You retain the IPR rights to the work produced and the method by which it was produced
  • Option 2: The client retains the IPR rights to the work produced
  • Be careful with email - it is legally binding
  • Bottomline:

    If sales holds your interest, this is a must have!


    March 9, 2011

    Strategic Management by Philip Sadler (Book review)

    Filed under: Book Review

    Overview:

     This book is a very well structured walk-through of strategy applications, role in a business and implementation. It is well worded and cuts to the core points in a clear and succinct manner.

     Key points:

     

    • Role/Purpose/mission of a company is the starting point for all vision and strategy work
    • The author makes a clear distinction between Corporate (top level) and Competitive Strategy (at the business unit level). Both has its place, but it is important to understand that one derives from the other
    • When dividing a company into units or divisions, the key parameters are product segment, regions and/or markets
    • Barriers to entry can be roughly categorized as:
    • Capital requirements
    • Economies of scale
    • Absolute cost advantages
    • Product differentiation
    • Access to distribution channels
    • Supplier qualification
    • Government and legal barriers (including IP)
    • Retaliation
  • Market segmentation analysis can help discover unfilled niches / segments of unserved customer demands
  • Page 100 has a great model for consideration of long term contracts vs. vertical integration
  • The McKinsey model for grow / hold / harvest based on industry attractiveness and competitive position
  • EFQM model for performance measurement, can be used at most levels both for operational management and incentive schemes - like BSC it ensured focus on multiple dimensions, not just short term profits. In the case of performance management, there is a need to ensure reliance on leading indicators, not just trailing (like quarterly financial statements)
  • Types of resources can be classified as:
    • Financial
    • Physical
    • Human
    • Technology
    • Reputation
    • Relationship
  • Page 172-173 outline the McKinsey business system value chain and Porter’s value chain, both good tools for analysing the resources and capabilities of a company and thus feed into the strategy formulation. It can also be used to analyse cost, Time To Market, value-add, and more (see Lean, which applies this extensively to quality and TTM control)
  • Page 210-211 outlines various ways of organise multinational corporations, using parameters such as local relevance, need for integration and local adaptation, etc. as well as culture to reason on the applicability of these models
  •  

    Recommendation:
    Must have 


    March 1, 2011

    Articles about strategy validation

    Filed under: Musings

    https://www.mckinseyquarterly.com/Have_you_tested_your_strategy_lately_2711

    https://www.mckinseyquarterly.com/How_we_do_it_Strategic_tests_from_four_senior_executives_2712

    https://www.mckinseyquarterly.com/Putting_strategies_to_the_test_McKinsey_Global_Survey_results_2722 


    November 18, 2010

    Employee development

    Filed under: Musings

    Just read this article:

    http://www.adm.monash.edu.au/human-resources/performance-development/assets/docs/further-reading/driving-results-through-employee-development.pdf

    Very good read, and very accessible. Well founded research showing how managers can be most effective in employee development and use that as a means of achieving better business results.

     Top 5 most effective methods: 

     

    • Explain Performance Evaluation Standards
    • Ensure Projects Provide Learning 
    • Provide Experiences That Develop
    • Assess Development Progress 
    • Help Find Training 
    Surprisingly, passing on advice based on your own experiences seem to be the least effective way of developing an employee.

     


    October 29, 2010

    Presenting the Penguin Way

    Filed under: Book Review

    I was very sceptical about reading this tiny (77 pages) book with such a silly title. Boy was I wrong! This book is an absolute must have. Much of it we already know or do instinctively, but relearning this is a very good help.

    In the following I will try and summarise the main points of the book. 

    • Preparation
    • Know your subject matter
    • Know your audience’s inclination and persona
    • Prepare the physical facilities
    • Rehearse (no more than 3 times to avoid over learning)
  • Nervousness
    • Mental counter; imagine butterflies in your stomach and order them to fly in formation
    • Physical counter; clench buttocks for 30 sec, relax, repeat
    • Physical counter; breathe with your stomach [I have used this for years and it has the effect of creating a mental ‘reserve’]
    • Mental/physical counter; stare at one point but focus mentally in the periphery - relaxes mind from flight state
  • Delivery
    • Movements in the room - do it consciously, 
    • Don’t prance
    • Have a ‘question spot’ from where you take questions
    • Engage audience
    • No bad jokes
    • Use questions to deflect attempts at tripping you up - involve other parts of the audience to neutralise
  • Articulation
    • Use your voice
    • Ending on a high pitch is a question
    • Ending on a low pitch reinforces credibility
    • It’s important to vary your pitch - a monotonous pitch is boring
    • Use volume to draw attention to important points (or to counter people dozing off)
  • Use your body
    • Palms down, pushing away from you reinforces a point
    • Palms up is a request for understanding or help
    • One finger in the air can reinforce a very important point
    • Arms crossed conveys seriousness

     Key take aways:

     

    • Preparation
    • Nervousness
    • Delivery
    • Articulation

     

    Rating

    Must have


    August 24, 2010

    The art of delegation

    Filed under: Administrative

    One of my all time favourites, richard Branson, wrote this:
    http://www.virgin.com/richard-branson/blog/the-art-of-delegation 

    Rather than building a huge pyramid, just break it down every time it gets too big? Novel thought that… 


    April 19, 2010

    Focus your time

    Filed under: Musings

    Harvard business Review just sent me a hard-print booklet with a couple of articles in it. The first of those is entitled Stop Wasting Valuable Time, and is focussed on how senior executive teams should ensure that they spend their time wisely - in the article, wisely translated into prioritising time for strategic decisions over the time spent on operational issues.

    The point is of course made in this dogmatic fashion in order to get the point across, attempting to address the issue of being too short-term focussed.

    The article recommends the following 7 items to ensure a balanced approach to time allocation:

     

    1. Have separate Operations and Strategy meetings 
    2. Ensure that any topic results in a clear, recorded decision
    3. Quantify the value of each agenda item and prioritise them accordingly
    4. For items on the agenda, aim to have a clear way of ensuring it is managed to closure to prevent it from resurface
    5. Presenters of an items should prepare, this includes real options for decisions
    6. Adopt a common process for decision making
    7. Embed the decisions - record them and ensure they are driven through
    Another point is made; The team may discuss any decision, but when the team makes a decision, everyone must be loyal towards it - no going back and no dissenting comments like ‘I’ll do it because I must, even though I disagree’.
     
    the article is aimed at senior executive teams, but can be applied to any team, not necessarily management.