By Mark Brousseau
Although the economic downturn caused CFOs to concentrate primarily on their steward role, the recovery has reemphasized the need to act as a catalyst and strategist, Jeff Bronaugh, senior manager at Deloitte Consulting LLP told attendees of the Masters Session at Fusion 2011 at the Gaylord Palms Resort and Convention Center Florida. Bronaugh and his colleagues Bob Comeau, national service line lead and principle at Deloitte Consulting, and Scott Rottman, principal at Deloitte Consulting, led a highly interactive discussion among attendees of the Masters Session.
During the depths of the credit crisis and recession, CFOs were spending roughly 60 percent of their time in the operator and steward roles, Bronaugh said. The increased time spent in the steward role reduced the amount of time CFOs spent in their preferred role as the strategist in the organization.
But in the wake of considerable capital-market and economic turmoil, CFOs are expected to take on broader and deeper strategic roles, Bronaugh said. CFOs are now routinely in charge of an expansive range of regulatory, governance, and strategy functions, especially investor and public relations, strategic planning, corporate development, and mergers and acquisitions.
As the economy begins to stabilize, focus for North America's top finance executives is shifting back to strategic initiatives, Bronaugh said. He pointed to a survey of CFOs conducted by Deloitte in the first quarter that showed that quality metrics, influencing strategies, and monitoring initiatives were the top three challenges of their finance organizations. CFOs cited strategic ambiguity, major change initiatives and regulatory change as their top three job stresses, Bronaugh said.
Against this backdrop, Bronaugh said there are 10 hot topics for CFOs:
1. Improving business decision support
2. Influencing business strategy and operational strategies
3. Major infrastructure and change initiatives
4. Prioritizing capital investments
5. Regulatory changes
6. Finance operating models
7. Cash is king
8. Managing finance department expectations
9. Finance talent management
10. Taxes
What are the hot topics in your finance department?
Showing posts with label recession. Show all posts
Showing posts with label recession. Show all posts
Friday, May 13, 2011
Thursday, February 17, 2011
Making the most of the economic recovery
Posted by Mark Brousseau
The U.S. economy is finally on an uptick. According to Federal Reserve Chief Ben Bernanke, the economy is set to grow by 3-4 percent in 2011. That’s great news for businesses that have been seeing decreasing or stagnant numbers on their revenue reports for the last couple of years. But now that more growth is possible, Dan Adams warns that it’s time to make sure your company is poised to get its share of the economic recovery.
"The best way to shape your company’s economic recovery into the most profitable form possible is to deliver more than your share of customer value,” says Adams, author of New Product Blueprinting: The Handbook for B2B Organic Growth. "Specifically, you need to develop differentiated products that provide benefits your customers crave. Products they can’t get anywhere else at a comparable cost. Doing so will accelerate your growth in the upturn and insulate you from the worst of the next downturn.”
Adams notes that you must keep in mind that your competition won’t be standing idly by while you innovate and grow during the improving economy. To stay ahead of your competition, you should keep a targeted focus on what sets your company apart in your industry.
“There could be any number of marketable differences,” explains Adams. “Are your scientists smarter? Do you spend more on R&D? Do you have a longer time horizon? These things can give you an incremental edge, but the best way to deliver substantial new customer value is this: Don’t approach the problem the same way your competitors do.”
Adams recommends using a differentiated approach for differentiated products. He says most competitors approach product development with a supplier-centric mentality, meaning they develop new products based on what they think their customers need. Instead, suppliers should use a customer-centric view, focusing on what their customers know they need.
To avoid this trap, he suggests following the five tips below:
Implement your customers’ ideas, not yours. Do you have a new product development process, perhaps with stages and gates? Is the first stage labeled “New Idea”? If so, that’s fine, but here’s the question: Whose ideas are listed in this stage—yours or your customers’?
“I’ve trained clients in hundreds of B2B industries and find suppliers nearly always begin product development with their ideas rather than their customers’,” says Adams. “The result is that they don’t know if they are truly meeting their customers’ needs until they can watch the sales results of their new product!
“Most companies make the critical mistake of starting with the supplier solution and ending with market needs,” he continues. “But what if they inverted their process by starting with market needs and ending with supplier solutions? Actually, two things would happen. First, because B2B customers are more insightful, rational, and interested than their B2C counterparts, suppliers would learn much more about customer needs than their competitors. Second, they’d prime those B2B customers to buy their new product by engaging them with highly interactive interviews.”
Conduct B2B-optimized interviews. Of all the ways to learn about customer needs—telephone, mail survey, Internet—nothing comes close in effectiveness to face-to-face customer interviews. If the information being sought is new, complex, or ambiguous—as with B2B product design—the advantages of interviews become even greater. So is the customer interview a key fixture in most new product development processes? For many producers, the answer is no.
Perhaps with so many routine customer interactions, it’s assumed much of it must be interviewing. But if you examine the call frequency of your sales and technical service staff, you will likely find that over 90 percent of face-to-face customer communication is of the “tell-and-sell” variety. Some might protest, “But we get lots of input from our customers on what they want in new products.” The reality, though, is that most new product discussions are actually customer-reactive meetings, not market-proactive interviews.
“You’ll know a market-proactive interview when you see it,” says Adams. “First, a team targets an attractive market segment. Then it schedules interviews with customers, prospects, and their customers’ customers. Two-or-three-person technical-commercial teams prepare their questions and interviewing roles in advance. During the interviews, these teams use advanced listening, probing, and interviewing skills to plumb incredible depths…and the customers love it!”
Get everyone listening to the voice of the customer. Some large firms keep a small staff of highly trained VOC (voice of the customer) experts poised for action. These folks parachute into a project as dawn streaks the morning sky, interview your customers for you, and hand you a report of “what the customer wants.” This is a flawed model, says Adams. Most businesses chalk up thousands of face-to-face customer meetings during the course of a year, as sales reps, technical service reps, and others go about their normal duties—so why not train these people to become VOC experts?
“They’ve already gained the customer’s trust, they know the customer’s language, and there’s no extra travel cost,” he points out. “Best of all, you’ll develop a reputation among customers as ‘that supplier who really listens to us.’ Now that’s how to protect today and position for tomorrow. So keep that handful of experts…but let them become trainers and coaches for the masses, not primary interviewers.”
Get quantitative. After you perform great qualitative customer interviews, you’ll have dozens and dozens of customer ideas you could work on. But which ideas do you target in your new product design? At this point in the process, it’s time to get quantitative.
“You need to understand which customer outcomes are most important and least satisfied today,” explains Adams. “The metric I’ve developed for this is called the Market Satisfaction Gap. It tells you precisely which ideas the customer is eager for you to pursue. The Market Satisfaction Gap prevents a fortune from being spent on developing supplier-centric products that will make customers yawn. Skip this step if you’ve got extra R&D resources you’re trying to keep busy. But make this a priority if you want everyone working on projects that will catapult you out of the recession faster than competitors.”
Research your customers’ alternatives. We often talk about competitive products. That’s okay, but it’s actually healthier to think in terms of customers’ alternatives. For example, if your company makes structural adhesives, alternatives for you might be other adhesives, but they could also be welding or mechanical fasteners.
“In my experience, suppliers don’t look at customers’ alternatives rigorously or early enough during product development,” says Adams. “Proper side-by-side testing requires answers to four key questions:
1) Which attributes should I test?
2) What test procedures should I use?
3) What test result is barely acceptable?
4) What test result leads to total satisfaction?
“The good news for the B2B supplier is that your customers are smart enough to answer all of these questions. Well-designed, customer-centric side-by-side testing will help you properly price your product and avoid getting blindsided by competitors’ products.”
“Research shows that only one in four new products succeeds once a project enters the costly product development stage,” says Adams. “I doubt there is any other function within your company where this level of failure and waste is tolerated. And supplier-centric product development is at the heart of the problem. The key to taking advantage of the recovering economy is in changing the way your company approaches offering new products. Start now and you’ll be well on your way to shaping a truly great economic recovery at your company.”
What do you think?
The U.S. economy is finally on an uptick. According to Federal Reserve Chief Ben Bernanke, the economy is set to grow by 3-4 percent in 2011. That’s great news for businesses that have been seeing decreasing or stagnant numbers on their revenue reports for the last couple of years. But now that more growth is possible, Dan Adams warns that it’s time to make sure your company is poised to get its share of the economic recovery.
"The best way to shape your company’s economic recovery into the most profitable form possible is to deliver more than your share of customer value,” says Adams, author of New Product Blueprinting: The Handbook for B2B Organic Growth. "Specifically, you need to develop differentiated products that provide benefits your customers crave. Products they can’t get anywhere else at a comparable cost. Doing so will accelerate your growth in the upturn and insulate you from the worst of the next downturn.”
Adams notes that you must keep in mind that your competition won’t be standing idly by while you innovate and grow during the improving economy. To stay ahead of your competition, you should keep a targeted focus on what sets your company apart in your industry.
“There could be any number of marketable differences,” explains Adams. “Are your scientists smarter? Do you spend more on R&D? Do you have a longer time horizon? These things can give you an incremental edge, but the best way to deliver substantial new customer value is this: Don’t approach the problem the same way your competitors do.”
Adams recommends using a differentiated approach for differentiated products. He says most competitors approach product development with a supplier-centric mentality, meaning they develop new products based on what they think their customers need. Instead, suppliers should use a customer-centric view, focusing on what their customers know they need.
To avoid this trap, he suggests following the five tips below:
Implement your customers’ ideas, not yours. Do you have a new product development process, perhaps with stages and gates? Is the first stage labeled “New Idea”? If so, that’s fine, but here’s the question: Whose ideas are listed in this stage—yours or your customers’?
“I’ve trained clients in hundreds of B2B industries and find suppliers nearly always begin product development with their ideas rather than their customers’,” says Adams. “The result is that they don’t know if they are truly meeting their customers’ needs until they can watch the sales results of their new product!
“Most companies make the critical mistake of starting with the supplier solution and ending with market needs,” he continues. “But what if they inverted their process by starting with market needs and ending with supplier solutions? Actually, two things would happen. First, because B2B customers are more insightful, rational, and interested than their B2C counterparts, suppliers would learn much more about customer needs than their competitors. Second, they’d prime those B2B customers to buy their new product by engaging them with highly interactive interviews.”
Conduct B2B-optimized interviews. Of all the ways to learn about customer needs—telephone, mail survey, Internet—nothing comes close in effectiveness to face-to-face customer interviews. If the information being sought is new, complex, or ambiguous—as with B2B product design—the advantages of interviews become even greater. So is the customer interview a key fixture in most new product development processes? For many producers, the answer is no.
Perhaps with so many routine customer interactions, it’s assumed much of it must be interviewing. But if you examine the call frequency of your sales and technical service staff, you will likely find that over 90 percent of face-to-face customer communication is of the “tell-and-sell” variety. Some might protest, “But we get lots of input from our customers on what they want in new products.” The reality, though, is that most new product discussions are actually customer-reactive meetings, not market-proactive interviews.
“You’ll know a market-proactive interview when you see it,” says Adams. “First, a team targets an attractive market segment. Then it schedules interviews with customers, prospects, and their customers’ customers. Two-or-three-person technical-commercial teams prepare their questions and interviewing roles in advance. During the interviews, these teams use advanced listening, probing, and interviewing skills to plumb incredible depths…and the customers love it!”
Get everyone listening to the voice of the customer. Some large firms keep a small staff of highly trained VOC (voice of the customer) experts poised for action. These folks parachute into a project as dawn streaks the morning sky, interview your customers for you, and hand you a report of “what the customer wants.” This is a flawed model, says Adams. Most businesses chalk up thousands of face-to-face customer meetings during the course of a year, as sales reps, technical service reps, and others go about their normal duties—so why not train these people to become VOC experts?
“They’ve already gained the customer’s trust, they know the customer’s language, and there’s no extra travel cost,” he points out. “Best of all, you’ll develop a reputation among customers as ‘that supplier who really listens to us.’ Now that’s how to protect today and position for tomorrow. So keep that handful of experts…but let them become trainers and coaches for the masses, not primary interviewers.”
Get quantitative. After you perform great qualitative customer interviews, you’ll have dozens and dozens of customer ideas you could work on. But which ideas do you target in your new product design? At this point in the process, it’s time to get quantitative.
“You need to understand which customer outcomes are most important and least satisfied today,” explains Adams. “The metric I’ve developed for this is called the Market Satisfaction Gap. It tells you precisely which ideas the customer is eager for you to pursue. The Market Satisfaction Gap prevents a fortune from being spent on developing supplier-centric products that will make customers yawn. Skip this step if you’ve got extra R&D resources you’re trying to keep busy. But make this a priority if you want everyone working on projects that will catapult you out of the recession faster than competitors.”
Research your customers’ alternatives. We often talk about competitive products. That’s okay, but it’s actually healthier to think in terms of customers’ alternatives. For example, if your company makes structural adhesives, alternatives for you might be other adhesives, but they could also be welding or mechanical fasteners.
“In my experience, suppliers don’t look at customers’ alternatives rigorously or early enough during product development,” says Adams. “Proper side-by-side testing requires answers to four key questions:
1) Which attributes should I test?
2) What test procedures should I use?
3) What test result is barely acceptable?
4) What test result leads to total satisfaction?
“The good news for the B2B supplier is that your customers are smart enough to answer all of these questions. Well-designed, customer-centric side-by-side testing will help you properly price your product and avoid getting blindsided by competitors’ products.”
“Research shows that only one in four new products succeeds once a project enters the costly product development stage,” says Adams. “I doubt there is any other function within your company where this level of failure and waste is tolerated. And supplier-centric product development is at the heart of the problem. The key to taking advantage of the recovering economy is in changing the way your company approaches offering new products. Start now and you’ll be well on your way to shaping a truly great economic recovery at your company.”
What do you think?
Wednesday, October 20, 2010
Book says to get ready for the next boom (really!)
Posted by Mark Brousseau
A bumper sticker popular in West Texas during the oil bust of the early 1980s went something like this, “Please God, just give me one more boom—I promise not to blow it this time.”
Today, millions of people around the world may be having similar thoughts.
In his book to be published in November, Jack W. Plunkett, a widely followed analyst of global trends, writes that massive changes in America and around the world will bring on a sustained period of economic growth. In The Next Boom, he argues that we are on the verge of developments that will boost job creation, investment and international trade over what he calls the “near future,” from 2013-2025.
“The next boom is already rolling down the tracks in the emerging world,” Plunkett says. “America will get on board shortly.”
The book is subtitled, “What you absolutely, positively have to know between now and 2025,” because Plunkett believes that managers, investors, entrepreneurs and leaders need to understand the changes that will soon occur in order to perform effectively. He presents a panorama of developments in areas including energy, healthcare, education, demographics, global trade, technologies and the rapidly-growing global middle class—showing how trends in America and around the world have tremendous synergy that will lead to a surge in business.
Plunkett, who describes himself as a “pragmatic optimist,” explains that “the coming boom will be supported by three building blocks. First, consumers in America are building savings and becoming financially prudent, while population growth is expanding markets for businesses. Next, global trade is about to enter an evolved, vastly higher level while the middle classes in emerging nations are soaring. Third, advanced technologies will boost the global economy in an unprecedented manner that will make the last technology boom seem tame.”
What do you think?
A bumper sticker popular in West Texas during the oil bust of the early 1980s went something like this, “Please God, just give me one more boom—I promise not to blow it this time.”
Today, millions of people around the world may be having similar thoughts.
In his book to be published in November, Jack W. Plunkett, a widely followed analyst of global trends, writes that massive changes in America and around the world will bring on a sustained period of economic growth. In The Next Boom, he argues that we are on the verge of developments that will boost job creation, investment and international trade over what he calls the “near future,” from 2013-2025.
“The next boom is already rolling down the tracks in the emerging world,” Plunkett says. “America will get on board shortly.”
The book is subtitled, “What you absolutely, positively have to know between now and 2025,” because Plunkett believes that managers, investors, entrepreneurs and leaders need to understand the changes that will soon occur in order to perform effectively. He presents a panorama of developments in areas including energy, healthcare, education, demographics, global trade, technologies and the rapidly-growing global middle class—showing how trends in America and around the world have tremendous synergy that will lead to a surge in business.
Plunkett, who describes himself as a “pragmatic optimist,” explains that “the coming boom will be supported by three building blocks. First, consumers in America are building savings and becoming financially prudent, while population growth is expanding markets for businesses. Next, global trade is about to enter an evolved, vastly higher level while the middle classes in emerging nations are soaring. Third, advanced technologies will boost the global economy in an unprecedented manner that will make the last technology boom seem tame.”
What do you think?
Wednesday, February 24, 2010
Not All Municipalities Outsourcing
By Mark Brousseau
While payments processing outsourcing has gained traction among government entities during the economic downturn, it's still not for everyone. A case in point: the Apache County Tax Collector (Arizona), which recently implemented a solution to automate the processing of its tax payments.
"We never really considered outsourcing," explains Apache County Tax Collector Chief Deputy Sandy Klinchock. She believes that in-house processing provides more control and better quality.
Known as the longest county in the country, Apache County runs 211 miles from the Utah border to just south of Alpine, Arizona. Two-thirds of the population, and over one-half of the land area, belongs to the Navajo Nation, the largest Native American tribe. Currently comprised of 70,000 residents, Apache County is growing : new subdivisions have been approved, permanent jobs are being created, and the county is investing in the services required for an expanding population.
With the Apache County Tax Collector committed to keeping its payments processing in-house, it knew it needed a solution for automating its tax processing. Previously, three employees processed the county's roughly 68,000 tax payments in about a three-week window. By automating, the county also hoped to streamline its deposits to improve funds availability and working capital management.
"We wanted to become more efficient, while enhancing our service to constituents," Klinchock says.
In late 2009, the Apache County Tax Collector implemented an image-enabled remittance processing solution from Creditron. The system includes a 3000t check scanner from NCR, courtesy and legal amount recognition (CAR/LAR), and the ability to deposit funds electronically via Check 21.
The Apache County Tax Collector selected Creditron based on its implementation of a system at nearby Navajo County, and on its willingness to meet the county's fast installation schedule; the Apache County Tax Collector went into production a few weeks after signing its Creditron contract. Navajo County handles back-end tax accounting on behalf of the Apache County Tax Collector.
As a result of automating its tax processing, and depositing funds electronically, Apache County Tax Collector now gets all of its funds to the bank the same day they are processed. In its old manual environment, it took the county two to three days to turn around its deposits. "Now, we can keep our money invested for a longer period of time," Klinchock says. "We also have a clearer picture of how much money we have in the bank, and whether we have to pull from investments to pay warrants."
The county also is able to make electronic deposits for all eight of its departments. And depositing funds electronically eliminated daily courier runs to the bank, which cost the county $350 a month. Additionally, there are fewer calls from customers asking why their check hasn't cleared sooner.
With results like these, Klinchock is surprised that so many government entities are outsourcing their payments processing. "If they take some of these arguments to their board, I think they will find a receptive audience," she says. "When our board heard about the benefits, they were all for it."
Creditron Founder and CEO Wally Vogel adds that the experience of the Apache County Tax Collector shows that government entities don't have to outsource to reduce costs or gain efficiencies.
While payments processing outsourcing has gained traction among government entities during the economic downturn, it's still not for everyone. A case in point: the Apache County Tax Collector (Arizona), which recently implemented a solution to automate the processing of its tax payments.
"We never really considered outsourcing," explains Apache County Tax Collector Chief Deputy Sandy Klinchock. She believes that in-house processing provides more control and better quality.
Known as the longest county in the country, Apache County runs 211 miles from the Utah border to just south of Alpine, Arizona. Two-thirds of the population, and over one-half of the land area, belongs to the Navajo Nation, the largest Native American tribe. Currently comprised of 70,000 residents, Apache County is growing : new subdivisions have been approved, permanent jobs are being created, and the county is investing in the services required for an expanding population.
With the Apache County Tax Collector committed to keeping its payments processing in-house, it knew it needed a solution for automating its tax processing. Previously, three employees processed the county's roughly 68,000 tax payments in about a three-week window. By automating, the county also hoped to streamline its deposits to improve funds availability and working capital management.
"We wanted to become more efficient, while enhancing our service to constituents," Klinchock says.
In late 2009, the Apache County Tax Collector implemented an image-enabled remittance processing solution from Creditron. The system includes a 3000t check scanner from NCR, courtesy and legal amount recognition (CAR/LAR), and the ability to deposit funds electronically via Check 21.
The Apache County Tax Collector selected Creditron based on its implementation of a system at nearby Navajo County, and on its willingness to meet the county's fast installation schedule; the Apache County Tax Collector went into production a few weeks after signing its Creditron contract. Navajo County handles back-end tax accounting on behalf of the Apache County Tax Collector.
As a result of automating its tax processing, and depositing funds electronically, Apache County Tax Collector now gets all of its funds to the bank the same day they are processed. In its old manual environment, it took the county two to three days to turn around its deposits. "Now, we can keep our money invested for a longer period of time," Klinchock says. "We also have a clearer picture of how much money we have in the bank, and whether we have to pull from investments to pay warrants."
The county also is able to make electronic deposits for all eight of its departments. And depositing funds electronically eliminated daily courier runs to the bank, which cost the county $350 a month. Additionally, there are fewer calls from customers asking why their check hasn't cleared sooner.
With results like these, Klinchock is surprised that so many government entities are outsourcing their payments processing. "If they take some of these arguments to their board, I think they will find a receptive audience," she says. "When our board heard about the benefits, they were all for it."
Creditron Founder and CEO Wally Vogel adds that the experience of the Apache County Tax Collector shows that government entities don't have to outsource to reduce costs or gain efficiencies.
Wednesday, January 27, 2010
The Domino's Theory
Posted by Mark Brousseau
Recently, Domino's Pizza did something practically unheard of in the business world. First, it asked its customers for honest feedback. Second, it actually listened to the painful truth (according to its documentary ad, "The Pizza Turnaround," unflattering words like "cardboard" and "totally void of flavor" were tossed about with abandon). Finally—and here's the shocking part—the company reinvented its product "from the crust up."
Now, if you're the typical business leader, you might be protesting, "But we listen to our customers all the time!" Don't be too sure, says new product development expert Dan Adams. You might think you're giving your customers what they want—but there's a good chance you're actually giving them what you want them to want.
"Many companies are essentially saying to their customers, 'You do need this product, right? Right?'" laughs Adams. "They're starting with a product and trying to talk their customers into giving it their stamp of approval. What looks like soliciting feedback is really a bit of a dog and pony show."
Adams should know. He has spent his career helping some of the largest business-to-business companies in the world learn how to develop new "stuff" that customers want to buy. Through New Product Blueprinting (the process described in his book), his company helps clients bring clarity to the "fuzzy front end" of product development.
So with the Domino's ad campaign making headlines for its boldly honest approach, you might be wondering how your company can follow its lead. Adams offers several tips:
... Ask your customers what they want—in a way that lets them know you really hear them. A lot of companies pay lip service to this idea. As consumers we've all had survey cards slapped down in front of us or fielded post-purchase telemarketing calls. Reconsider how you are collecting customer feedback. Are you doing it in a way that really engages the customer so that you can get the truth?
"There's no substitute for respectful dialogue with customers," says Adams, whose own process helps B2B suppliers elicit idea-generating, peer-to-peer conversations with their customers. "When you can get people truly engaged in the feedback process—I mean really focused on what they need and want from you—you'll get their honest opinions. And that raw honesty is what you need to serve them the right way."
... Don't rely on sales reps alone to capture customer needs. A salesperson is unlikely to uncover a full set of market needs if he is a) rewarded for near-term selling, b) unable to reach true decision makers, or c) not calling on most of the customers in your target market segment. But put a good salesperson on a team with marketing and technical colleagues, train all in advanced interviewing methods, and you'll run circles around your competitors.
Be wary of VOC (voice-of-the-customer) consultants who want to exclude your sales force from interviews because "they can sell but not listen," warns Adams. In the long run, your company will fall behind competitors that have taken steps to develop a team of engaged and enlightened salespeople.
... Take action on what you're hearing. Many companies ask their customers for feedback with the best of intentions. But when they start hearing things they don't want to hear, they find a million reasons to explain it away. As a result, the feedback never gets translated into action.
"A lot of companies will say, 'Oh, they're a difficult client,' or, 'That's not really what they want; it's just what they think they want,'" says Adams. "Either they don't really want to change what they're doing or they don't trust the customer or they don't trust themselves to understand what the customer wants.
"A good interviewer knows how to dig deep and figure out the customer's hidden needs," he adds. "And a smart company will take action to meet those needs—no matter what."
... If you have to scrap your existing products and start from scratch, so be it. Here's the real truth, says Adams: Most suppliers start with their solution, "validate" it by showing it to some customers, and measure market needs by watching sales results... after the product launch! In other words, they're getting it exactly backwards.
"Companies should invert this process: Begin with customer needs and end with supplier solutions," asserts Adams. "While doing things in the wrong order may 'feel' better to you, it is far less likely to result in sales and customer satisfaction. Besides, intelligent customers can detect your 'validation' a mile away. They correctly sense you are more interested in your idea than in them... and that doesn't do much for the long-term relationships you need to build."
... Get everyone in your company connected to the customer's reality. If you watch Domino's new ad, you can see how ego crushing it was for the company's employees to hear customers speak their minds about the flavorless crust and ketchupy sauce. Yet, you can also see how necessary it was for them to hear the harsh truth—it energized them to revamp their product and make it much, much better.
"People inside companies tend to get defensive about their products and processes," admits Adams. "It's only human. But when you can cut through that defensiveness and show them 'Hey, this really isn't working for our customers'—well, that's where true service and value finally begin."
If you're thinking this is a message recession-strapped companies need to hear, you're right, says Adams. The quicker they get it, the more likely they are to survive.
"Figuring out what people really want from your company, and giving it to them, is the whole point of being in business," he notes. "When money is flowing, you can stand some trial and error, some experimentation. When it's not, you'd better get it right now—and 'right' means whatever the customer says it does."
What do you think?
Recently, Domino's Pizza did something practically unheard of in the business world. First, it asked its customers for honest feedback. Second, it actually listened to the painful truth (according to its documentary ad, "The Pizza Turnaround," unflattering words like "cardboard" and "totally void of flavor" were tossed about with abandon). Finally—and here's the shocking part—the company reinvented its product "from the crust up."
Now, if you're the typical business leader, you might be protesting, "But we listen to our customers all the time!" Don't be too sure, says new product development expert Dan Adams. You might think you're giving your customers what they want—but there's a good chance you're actually giving them what you want them to want.
"Many companies are essentially saying to their customers, 'You do need this product, right? Right?'" laughs Adams. "They're starting with a product and trying to talk their customers into giving it their stamp of approval. What looks like soliciting feedback is really a bit of a dog and pony show."
Adams should know. He has spent his career helping some of the largest business-to-business companies in the world learn how to develop new "stuff" that customers want to buy. Through New Product Blueprinting (the process described in his book), his company helps clients bring clarity to the "fuzzy front end" of product development.
So with the Domino's ad campaign making headlines for its boldly honest approach, you might be wondering how your company can follow its lead. Adams offers several tips:
... Ask your customers what they want—in a way that lets them know you really hear them. A lot of companies pay lip service to this idea. As consumers we've all had survey cards slapped down in front of us or fielded post-purchase telemarketing calls. Reconsider how you are collecting customer feedback. Are you doing it in a way that really engages the customer so that you can get the truth?
"There's no substitute for respectful dialogue with customers," says Adams, whose own process helps B2B suppliers elicit idea-generating, peer-to-peer conversations with their customers. "When you can get people truly engaged in the feedback process—I mean really focused on what they need and want from you—you'll get their honest opinions. And that raw honesty is what you need to serve them the right way."
... Don't rely on sales reps alone to capture customer needs. A salesperson is unlikely to uncover a full set of market needs if he is a) rewarded for near-term selling, b) unable to reach true decision makers, or c) not calling on most of the customers in your target market segment. But put a good salesperson on a team with marketing and technical colleagues, train all in advanced interviewing methods, and you'll run circles around your competitors.
Be wary of VOC (voice-of-the-customer) consultants who want to exclude your sales force from interviews because "they can sell but not listen," warns Adams. In the long run, your company will fall behind competitors that have taken steps to develop a team of engaged and enlightened salespeople.
... Take action on what you're hearing. Many companies ask their customers for feedback with the best of intentions. But when they start hearing things they don't want to hear, they find a million reasons to explain it away. As a result, the feedback never gets translated into action.
"A lot of companies will say, 'Oh, they're a difficult client,' or, 'That's not really what they want; it's just what they think they want,'" says Adams. "Either they don't really want to change what they're doing or they don't trust the customer or they don't trust themselves to understand what the customer wants.
"A good interviewer knows how to dig deep and figure out the customer's hidden needs," he adds. "And a smart company will take action to meet those needs—no matter what."
... If you have to scrap your existing products and start from scratch, so be it. Here's the real truth, says Adams: Most suppliers start with their solution, "validate" it by showing it to some customers, and measure market needs by watching sales results... after the product launch! In other words, they're getting it exactly backwards.
"Companies should invert this process: Begin with customer needs and end with supplier solutions," asserts Adams. "While doing things in the wrong order may 'feel' better to you, it is far less likely to result in sales and customer satisfaction. Besides, intelligent customers can detect your 'validation' a mile away. They correctly sense you are more interested in your idea than in them... and that doesn't do much for the long-term relationships you need to build."
... Get everyone in your company connected to the customer's reality. If you watch Domino's new ad, you can see how ego crushing it was for the company's employees to hear customers speak their minds about the flavorless crust and ketchupy sauce. Yet, you can also see how necessary it was for them to hear the harsh truth—it energized them to revamp their product and make it much, much better.
"People inside companies tend to get defensive about their products and processes," admits Adams. "It's only human. But when you can cut through that defensiveness and show them 'Hey, this really isn't working for our customers'—well, that's where true service and value finally begin."
If you're thinking this is a message recession-strapped companies need to hear, you're right, says Adams. The quicker they get it, the more likely they are to survive.
"Figuring out what people really want from your company, and giving it to them, is the whole point of being in business," he notes. "When money is flowing, you can stand some trial and error, some experimentation. When it's not, you'd better get it right now—and 'right' means whatever the customer says it does."
What do you think?
Wednesday, October 7, 2009
CFOs and Treasurers Maintain Recessionary View
Posted by Mark Brousseau
Even as the U.S. economy has exhibited signs of stability in recent months, financial professionals have not seen solid evidence that business conditions have turned the corner.
The vast majority of attendees to the annual conference of the Association for Financial Professionals (AFP) believe the U.S. economy remains in a recession, despite indications of economic growth in the third quarter. Their uncertain outlook for near-term business conditions parallels expectations that their organizations will not resume hiring or capital spending, which they had halted over the past year, according to an on-site survey conducted yesterday.
Just 11 percent of responding conference attendees -- which include CFOs, treasurers and other treasury and finance executives representing companies of a median size of $1.5 billion in annual revenues -- believe that the U.S. economy is out of the recession. The outlook for the near-term is not much more optimistic. Just 20 percent of survey respondents believe the recession will end before of the year while 69 percent expect the recession will continue well into 2010.
"AFP members have played a critical role in maintaining the financial stability of their organizations through the recession," said Jim Kaitz, president and CEO of AFP. "As we look ahead, AFP will continue to work with policymakers to ensure that financial regulatory reform is balanced and represents the needs of financial professionals. We are confident that responsible regulation will foster stable and secure financial markets."
Asked whether their organizations would be apt to increase or decrease payrolls in the next six months, nearly two-thirds of financial professionals say they expect to maintain payrolls at current levels. Of those responding, 22 percent expect company payrolls to shrink further while just 14 percent anticipate that their organization will resume hiring over the next six months.
Similarly, the overwhelming majority of survey respondents expect to either maintain or further cut capital spending over the next six months. Just 21 percent of financial professionals anticipate their organization will increase capital spending in the coming months.
As employment and capital spending have stabilized, so has their companies' access to capital. More than half of respondents indicate that their organizations' access to capital stabilized over the past six months. Further, the area where capital access may have improved is among companies that have utilized the debt markets -- 31 percent of organizations have had improved access to debt markets over the past six months. Access to banking lending has improved for 22 percent of respondents while a similar percentage report improvements in raising capital in the equity markets.
When asked about the greatest risk to their organization's ability to prosper in 2010, financial professionals were most likely to identify one of two threats: failure of consumer demand to materialize (30 percent) and the possibility of a double dip recession (28 percent). Consistent with the reported stability in capital markets above, only 12 percent of survey respondents see a loss of access to capital as the greatest risk to their organization.
Even as the U.S. economy has exhibited signs of stability in recent months, financial professionals have not seen solid evidence that business conditions have turned the corner.
The vast majority of attendees to the annual conference of the Association for Financial Professionals (AFP) believe the U.S. economy remains in a recession, despite indications of economic growth in the third quarter. Their uncertain outlook for near-term business conditions parallels expectations that their organizations will not resume hiring or capital spending, which they had halted over the past year, according to an on-site survey conducted yesterday.
Just 11 percent of responding conference attendees -- which include CFOs, treasurers and other treasury and finance executives representing companies of a median size of $1.5 billion in annual revenues -- believe that the U.S. economy is out of the recession. The outlook for the near-term is not much more optimistic. Just 20 percent of survey respondents believe the recession will end before of the year while 69 percent expect the recession will continue well into 2010.
"AFP members have played a critical role in maintaining the financial stability of their organizations through the recession," said Jim Kaitz, president and CEO of AFP. "As we look ahead, AFP will continue to work with policymakers to ensure that financial regulatory reform is balanced and represents the needs of financial professionals. We are confident that responsible regulation will foster stable and secure financial markets."
Asked whether their organizations would be apt to increase or decrease payrolls in the next six months, nearly two-thirds of financial professionals say they expect to maintain payrolls at current levels. Of those responding, 22 percent expect company payrolls to shrink further while just 14 percent anticipate that their organization will resume hiring over the next six months.
Similarly, the overwhelming majority of survey respondents expect to either maintain or further cut capital spending over the next six months. Just 21 percent of financial professionals anticipate their organization will increase capital spending in the coming months.
As employment and capital spending have stabilized, so has their companies' access to capital. More than half of respondents indicate that their organizations' access to capital stabilized over the past six months. Further, the area where capital access may have improved is among companies that have utilized the debt markets -- 31 percent of organizations have had improved access to debt markets over the past six months. Access to banking lending has improved for 22 percent of respondents while a similar percentage report improvements in raising capital in the equity markets.
When asked about the greatest risk to their organization's ability to prosper in 2010, financial professionals were most likely to identify one of two threats: failure of consumer demand to materialize (30 percent) and the possibility of a double dip recession (28 percent). Consistent with the reported stability in capital markets above, only 12 percent of survey respondents see a loss of access to capital as the greatest risk to their organization.
Wednesday, September 23, 2009
Economy Slams Morale
Posted by Mark Brousseau
The cost-cutting actions that employers have been making to deal with the economic crisis have contributed to a sharp decline in the morale and commitment of their workers, especially top performers, according to an annual survey by Watson Wyatt and WorldatWork.
The 2009/2010 U.S. Strategic Rewards Survey found that employee engagement levels for all workers at the companies surveyed have dropped 9 percent since last year, and close to 25 percent for top performers. Additionally, 36 percent of top performers say their employer's situation has worsened in the past 12 months and the number who would recommend others take jobs at their company has declined by nearly 20 percent. Compared with last year, top-performing employees are 26 percent less likely to be satisfied with advancement opportunities at their company. They are also 14 percent less likely to want to remain with their company versus take a job elsewhere.
The survey also found that top-performing employees are 29 percent less confident in management's ability to grow the business. And 41 percent believe that pay and benefit changes made by their employer in the past year have had a negative effect on work quality and customer service. The survey was conducted in May 2009 and is based on responses from 1,300 full-time workers at large U.S. employers.
"The fallout from the actions employers have taken in response to the recession is now coming to light, and it is significant," said Laura Sejen, global director of strategic rewards consulting at Watson Wyatt. "Having less engaged and committed workers is a major concern for employers. This could have a long-lasting and detrimental impact on productivity, quality and customer service, as well as an increase in the risk of companies losing their best employees."
The survey also found that most top-performing employees say they aren't expecting to receive the same bonus or pay increase as they have in the past, even though historically companies have rewarded them with pay commensurate with their performance. More than six in 10 (61 percent) say their companies have reduced or suspended bonuses, while only 35 percent agree their employers reward top employees for performance. Additionally, 43 percent of top performers said individual performance expectations have increased since last year, while one-third (32 percent) say their company's financial performance goals have increased.
"One of the many challenges employers will face as the economy recovers is how to re-engage employees, and especially top performers," said Ryan Johnson, CCP, vice president of research at WorldatWork. "Taking a total rewards approach and looking at all of the ways companies can motivate and retain -- including compensation, benefits, work-life initiatives, and career development -- is going to be essential."
What do you think? Post your comment below.
The cost-cutting actions that employers have been making to deal with the economic crisis have contributed to a sharp decline in the morale and commitment of their workers, especially top performers, according to an annual survey by Watson Wyatt and WorldatWork.
The 2009/2010 U.S. Strategic Rewards Survey found that employee engagement levels for all workers at the companies surveyed have dropped 9 percent since last year, and close to 25 percent for top performers. Additionally, 36 percent of top performers say their employer's situation has worsened in the past 12 months and the number who would recommend others take jobs at their company has declined by nearly 20 percent. Compared with last year, top-performing employees are 26 percent less likely to be satisfied with advancement opportunities at their company. They are also 14 percent less likely to want to remain with their company versus take a job elsewhere.
The survey also found that top-performing employees are 29 percent less confident in management's ability to grow the business. And 41 percent believe that pay and benefit changes made by their employer in the past year have had a negative effect on work quality and customer service. The survey was conducted in May 2009 and is based on responses from 1,300 full-time workers at large U.S. employers.
"The fallout from the actions employers have taken in response to the recession is now coming to light, and it is significant," said Laura Sejen, global director of strategic rewards consulting at Watson Wyatt. "Having less engaged and committed workers is a major concern for employers. This could have a long-lasting and detrimental impact on productivity, quality and customer service, as well as an increase in the risk of companies losing their best employees."
The survey also found that most top-performing employees say they aren't expecting to receive the same bonus or pay increase as they have in the past, even though historically companies have rewarded them with pay commensurate with their performance. More than six in 10 (61 percent) say their companies have reduced or suspended bonuses, while only 35 percent agree their employers reward top employees for performance. Additionally, 43 percent of top performers said individual performance expectations have increased since last year, while one-third (32 percent) say their company's financial performance goals have increased.
"One of the many challenges employers will face as the economy recovers is how to re-engage employees, and especially top performers," said Ryan Johnson, CCP, vice president of research at WorldatWork. "Taking a total rewards approach and looking at all of the ways companies can motivate and retain -- including compensation, benefits, work-life initiatives, and career development -- is going to be essential."
What do you think? Post your comment below.
Wednesday, July 8, 2009
Recession Will Leave Its Mark
Posted by Mark Brousseau
The impact of the economic downturn has clearly been significant, however not all companies are equally affected by the recession, according to a study of executives at 570 leading global companies by Ernst & Young LLP. The comparisons with a similar study in January also reveal that while the white heat of the crisis has passed, the majority of companies are still focused on survival. However, a significant minority are looking to take advantage of the situation to pursue new opportunities.
The study finds nearly half of those surveyed (43%) said that their operating model had been permanently altered by the events of the last 18 months. A further 45% said there had been a temporary impact. Similarly 56% of the executives said that their risk management processes had been permanently altered, 33% temporarily. For 45% the regulatory framework for business had also fundamentally changed.
Other alterations to their business model – price sensitivity, profitability, competitive sensitivity and economic stability were viewed by respondents as more temporary although a significant minority – above 20% in each case – viewed the changes here as permanent as well.
“The impact of the market changes has clearly been significant and some business models have changed radically,” said Michael Rogers, Principal, Transaction Advisory Services, Ernst & Young LLP. “Company management is being forced to review their methods of organization due to a range of macro influences such as challenges from diversification, globalization, and (de)regulation. Businesses that emerge strengthened from the current crisis will be those that reshape intelligently, not those tempted to move quickly to extract additional value. ”
It is still really tough out there
Ernst & Young LLP carried out a similar study five months ago. The corporates Ernst & Young talked to then, and the thousands of companies it has discussed the research with since, are still seeing huge competition on price. Companies are still seeing significant numbers of bankruptcies and competitors withdrawing from their sector, but there was also an increase in those organizations reporting new entrants in their sector.
The overall mood is still somber. Although 64% of executives said they had been able to make cost reductions, 31% said they had improved revenues and more than a third said the environment was more positive in terms of making strategic acquisitions. A majority of executives had seen deterioration in revenues (58%) and profitability (56%). Only 20% had seen an improvement in investor confidence, and a similar low number saw any improvement in accessing affordable capital or credit.
“Perverse as it may seem, a period of crisis can provide an opportunity to drive change more rapidly and effectively than a period of prosperity,” noted Rogers of Ernst & Young LLP. “Company leaders are finding ways to take advantage of this economic climate. This survey shows 25% of companies are actively planning for growth, 34% are seeking strategic alliances and 36% plan to enter new geographies.”
Are we past the worst? A slight shift in emphasis from the responses from January gives some credence to the thinking that the worst ravages of the recession are behind us. At the time of the last study 82% said the focus of their business was on restructuring their business to deal with the recession and 74% were looking merely at survival of the present operations.
Those figures have declined to 74% and 65% - still remarkably high - but in conjunction with the fact that the proportion of companies who said that they were “taking advantage of the recession to pursue new market operations” had increased from 59% to 69% - suggest there are some more companies out there bargain basement hunting.
Cash is actually tighter
Back in January over a quarter of executives said cash was not an issue. That proportion has slipped to 18%. Respondents also highlighted an increase in communications to lenders and rating agencies. There was however less talk of companies disposing of assets purely to raise cash.
“Working capital is the lifeblood of a company, and the ability to manage it becomes even more important in a downturn due to falling revenue and restricted access to funds,” said Kevin Cole, Americas Accounts & Business Development Leader, Ernst & Young LLP. “Companies need to secure their position by identifying and resolving critical issues quickly to protect against value erosion, or to be well placed to take advantage of opportunities.”
How have companies responded in the short term?Over the last year 86% of executives said they had accelerated cost reduction programs, 52% had speeded up their restructuring plans and 38% had pushed the button on a “significant employee reduction program.” When asked about their key drivers in the short term there was increased scrutiny on profitability (73%), pricing strategy (55%) and their relationship with customers (52%). Internally it was no surprise that 38% had seen more investment in risk.What’s next in the longer term?In terms of looking post-recession, executives were pretty evenly split between expanding into new geographies, increased use of strategic alliances, acquisitions and speed to market and divesting non-core business. “Companies that maintain a sustainable business model through the current downturn will not only survive the downturn, but will emerge stronger and in the best position to take advantage of new growth opportunities as the economy improves,” said Cole of Ernst & Young LLP.
“The bottom line is, that in both good and bad economic conditions, successful organizations are those that have clarity around their proposition, strategic direction and brand positioning,” said Donna Campbell, Americas Advisory Performance Improvement Leader, Ernst & Young LLP. “A successful company also has an effective management information capability that is aligned with the business strategy to enable agility in responding to market or other environmental changes.”
What do you think?
The impact of the economic downturn has clearly been significant, however not all companies are equally affected by the recession, according to a study of executives at 570 leading global companies by Ernst & Young LLP. The comparisons with a similar study in January also reveal that while the white heat of the crisis has passed, the majority of companies are still focused on survival. However, a significant minority are looking to take advantage of the situation to pursue new opportunities.
The study finds nearly half of those surveyed (43%) said that their operating model had been permanently altered by the events of the last 18 months. A further 45% said there had been a temporary impact. Similarly 56% of the executives said that their risk management processes had been permanently altered, 33% temporarily. For 45% the regulatory framework for business had also fundamentally changed.
Other alterations to their business model – price sensitivity, profitability, competitive sensitivity and economic stability were viewed by respondents as more temporary although a significant minority – above 20% in each case – viewed the changes here as permanent as well.
“The impact of the market changes has clearly been significant and some business models have changed radically,” said Michael Rogers, Principal, Transaction Advisory Services, Ernst & Young LLP. “Company management is being forced to review their methods of organization due to a range of macro influences such as challenges from diversification, globalization, and (de)regulation. Businesses that emerge strengthened from the current crisis will be those that reshape intelligently, not those tempted to move quickly to extract additional value. ”
It is still really tough out there
Ernst & Young LLP carried out a similar study five months ago. The corporates Ernst & Young talked to then, and the thousands of companies it has discussed the research with since, are still seeing huge competition on price. Companies are still seeing significant numbers of bankruptcies and competitors withdrawing from their sector, but there was also an increase in those organizations reporting new entrants in their sector.
The overall mood is still somber. Although 64% of executives said they had been able to make cost reductions, 31% said they had improved revenues and more than a third said the environment was more positive in terms of making strategic acquisitions. A majority of executives had seen deterioration in revenues (58%) and profitability (56%). Only 20% had seen an improvement in investor confidence, and a similar low number saw any improvement in accessing affordable capital or credit.
“Perverse as it may seem, a period of crisis can provide an opportunity to drive change more rapidly and effectively than a period of prosperity,” noted Rogers of Ernst & Young LLP. “Company leaders are finding ways to take advantage of this economic climate. This survey shows 25% of companies are actively planning for growth, 34% are seeking strategic alliances and 36% plan to enter new geographies.”
Are we past the worst? A slight shift in emphasis from the responses from January gives some credence to the thinking that the worst ravages of the recession are behind us. At the time of the last study 82% said the focus of their business was on restructuring their business to deal with the recession and 74% were looking merely at survival of the present operations.
Those figures have declined to 74% and 65% - still remarkably high - but in conjunction with the fact that the proportion of companies who said that they were “taking advantage of the recession to pursue new market operations” had increased from 59% to 69% - suggest there are some more companies out there bargain basement hunting.
Cash is actually tighter
Back in January over a quarter of executives said cash was not an issue. That proportion has slipped to 18%. Respondents also highlighted an increase in communications to lenders and rating agencies. There was however less talk of companies disposing of assets purely to raise cash.
“Working capital is the lifeblood of a company, and the ability to manage it becomes even more important in a downturn due to falling revenue and restricted access to funds,” said Kevin Cole, Americas Accounts & Business Development Leader, Ernst & Young LLP. “Companies need to secure their position by identifying and resolving critical issues quickly to protect against value erosion, or to be well placed to take advantage of opportunities.”
How have companies responded in the short term?Over the last year 86% of executives said they had accelerated cost reduction programs, 52% had speeded up their restructuring plans and 38% had pushed the button on a “significant employee reduction program.” When asked about their key drivers in the short term there was increased scrutiny on profitability (73%), pricing strategy (55%) and their relationship with customers (52%). Internally it was no surprise that 38% had seen more investment in risk.What’s next in the longer term?In terms of looking post-recession, executives were pretty evenly split between expanding into new geographies, increased use of strategic alliances, acquisitions and speed to market and divesting non-core business. “Companies that maintain a sustainable business model through the current downturn will not only survive the downturn, but will emerge stronger and in the best position to take advantage of new growth opportunities as the economy improves,” said Cole of Ernst & Young LLP.
“The bottom line is, that in both good and bad economic conditions, successful organizations are those that have clarity around their proposition, strategic direction and brand positioning,” said Donna Campbell, Americas Advisory Performance Improvement Leader, Ernst & Young LLP. “A successful company also has an effective management information capability that is aligned with the business strategy to enable agility in responding to market or other environmental changes.”
What do you think?
Friday, May 29, 2009
Impact of the Economy on Online Banking Systems Purchasing Decisions
By Mark Brousseau
Today’s economy has presented challenges for banks to invest in new technologies, such as online banking solutions. However, for those banks that can, now is the time to do so, says Joe Spatarella, vice president, sales & marketing, Online Banking Solutions (OBS).
"With minimal activity and deal flow, this is an opportune time to move forward and negotiate an ideal vendor partnership to take you well into the future," Spatarella says.
Below are best practices that Spatarella offers for acquiring and deploying online banking solutions in a challenging and transforming economic climate. "With little or no margin for error, the following could help you win a greater share of customer revenue with a contemporary solution when others are afraid to move," he says.
1. Set your goals: Identify a solution that can differentiate the financial institution in a crowded market. Focus on improved user experience: semantics, navigation and ability to customize at the user level without expensive vendor modifications.
2. Walk a different path to success: Find a vendor that is truly willing to partner and share project risks rather than the 800 pound gorilla who is less likely to negotiate favorable terms or who makes promises that cannot be met.
3. Go with a fixed cost model: Annual license fees and fixed per user pricing is much easier to manage than variable transaction pricing.
4. Purchase in the present, not the future: While product roadmaps are important, be sure the vendor can deliver the product version you purchased at the time you need to deploy it
5. Share in project success: A vendor will be more likely to share the risk and contribute specialized resources if there is also an opportunity to benefit from project success.
6. Watch the clock: Give yourself enough time to make a decision and give the vendor a reasonable timeframe to deliver. Don’t use so much of the project timeline on evaluation that the vendor is left with a highly compressed window for implementation.
7. Minimize the frequency: The solution must be sustainable and scalable so that in 3 to 5 years, you are not looking for another vendor and having to repeat the process with valuable time and resources. Plan for continued success, not failure.
What do you think? Post your comments below.
Today’s economy has presented challenges for banks to invest in new technologies, such as online banking solutions. However, for those banks that can, now is the time to do so, says Joe Spatarella, vice president, sales & marketing, Online Banking Solutions (OBS).
"With minimal activity and deal flow, this is an opportune time to move forward and negotiate an ideal vendor partnership to take you well into the future," Spatarella says.
Below are best practices that Spatarella offers for acquiring and deploying online banking solutions in a challenging and transforming economic climate. "With little or no margin for error, the following could help you win a greater share of customer revenue with a contemporary solution when others are afraid to move," he says.
1. Set your goals: Identify a solution that can differentiate the financial institution in a crowded market. Focus on improved user experience: semantics, navigation and ability to customize at the user level without expensive vendor modifications.
2. Walk a different path to success: Find a vendor that is truly willing to partner and share project risks rather than the 800 pound gorilla who is less likely to negotiate favorable terms or who makes promises that cannot be met.
3. Go with a fixed cost model: Annual license fees and fixed per user pricing is much easier to manage than variable transaction pricing.
4. Purchase in the present, not the future: While product roadmaps are important, be sure the vendor can deliver the product version you purchased at the time you need to deploy it
5. Share in project success: A vendor will be more likely to share the risk and contribute specialized resources if there is also an opportunity to benefit from project success.
6. Watch the clock: Give yourself enough time to make a decision and give the vendor a reasonable timeframe to deliver. Don’t use so much of the project timeline on evaluation that the vendor is left with a highly compressed window for implementation.
7. Minimize the frequency: The solution must be sustainable and scalable so that in 3 to 5 years, you are not looking for another vendor and having to repeat the process with valuable time and resources. Plan for continued success, not failure.
What do you think? Post your comments below.
Monday, May 18, 2009
Economy is Delaying -- Not Cancelling -- IT Projects
Posted by Mark Brousseau
The financial crisis has had a significant impact on the client computing industry in 2009, as witnessed in a survey by Gartner, Inc. that showed far more PC projects are postponed or scaled back this year rather than cancelled outright because of tighter IT budgets. Only 12 percent of those surveyed indicated they have outright cancelled a planned project since October 2008. The survey was conducted from late February through early March of 2009.
"Enterprise belt-tightening has had a tremendous impact on the client computing technology segment with 43 percent of respondents expecting a decrease in spending on client computing hardware in 2009 compared with 2008," said Andrew Johnson, managing vice president at Gartner.
Gartner forecasts overall IT spending to decline 3.7 percent in 2009. Spending on IT hardware, including client computing (PCs), servers, storage and printing systems will bear the brunt of budget cuts with spending expected to decline 14.9 percent. Gartner forecasts overall IT spending to rebound with 2.4 percent growth in 2010, although IT hardware spending will continue to lag next year, growing just 0.8 percent.
Despite the bleak outlook, Johnson said that there are some brighter spots for the segment with certain applications getting increased spending and some countries and industries reporting more-optimistic plans. He said that more client computing projects will be postponed or reduced in 2009 than will be eliminated, and technology and service providers should ensure that they are ready for the recovery, when and where it happens.
The survey pinpointed some important differences in how companies in different countries are maintaining, delaying, reducing or canceling many ongoing client computing projects. Although 48 percent of all respondents indicated some of their PC projects would be deployed as planned in 2009, respondents in China (85 percent) and India (64 percent) were more optimistic and expected most of their projects to be deployed as planned. In contrast, only 29 percent of U.S. and 18 percent of French companies planned to continue their client computing projects as originally planned.
Significant vertical market variations were also revealed by the survey which found that the industries most on track with their client computing plans were insurance, media and consumer business services. Companies involved with telecommunications, wholesale, and agriculture, mining and construction are most likely to be planning to reduce spending. Postponements are more likely in retail, utilities and wholesale companies, and project cancellations were above average in discrete manufacturing. Only one out of 45 respondents in the financial services industry indicated PC purchase plans were cancelled, and in this sector, reduced, postponed, and as-planned responses came in near the averages.
What's happening at your organization? Post your comments below.
The financial crisis has had a significant impact on the client computing industry in 2009, as witnessed in a survey by Gartner, Inc. that showed far more PC projects are postponed or scaled back this year rather than cancelled outright because of tighter IT budgets. Only 12 percent of those surveyed indicated they have outright cancelled a planned project since October 2008. The survey was conducted from late February through early March of 2009.
"Enterprise belt-tightening has had a tremendous impact on the client computing technology segment with 43 percent of respondents expecting a decrease in spending on client computing hardware in 2009 compared with 2008," said Andrew Johnson, managing vice president at Gartner.
Gartner forecasts overall IT spending to decline 3.7 percent in 2009. Spending on IT hardware, including client computing (PCs), servers, storage and printing systems will bear the brunt of budget cuts with spending expected to decline 14.9 percent. Gartner forecasts overall IT spending to rebound with 2.4 percent growth in 2010, although IT hardware spending will continue to lag next year, growing just 0.8 percent.
Despite the bleak outlook, Johnson said that there are some brighter spots for the segment with certain applications getting increased spending and some countries and industries reporting more-optimistic plans. He said that more client computing projects will be postponed or reduced in 2009 than will be eliminated, and technology and service providers should ensure that they are ready for the recovery, when and where it happens.
The survey pinpointed some important differences in how companies in different countries are maintaining, delaying, reducing or canceling many ongoing client computing projects. Although 48 percent of all respondents indicated some of their PC projects would be deployed as planned in 2009, respondents in China (85 percent) and India (64 percent) were more optimistic and expected most of their projects to be deployed as planned. In contrast, only 29 percent of U.S. and 18 percent of French companies planned to continue their client computing projects as originally planned.
Significant vertical market variations were also revealed by the survey which found that the industries most on track with their client computing plans were insurance, media and consumer business services. Companies involved with telecommunications, wholesale, and agriculture, mining and construction are most likely to be planning to reduce spending. Postponements are more likely in retail, utilities and wholesale companies, and project cancellations were above average in discrete manufacturing. Only one out of 45 respondents in the financial services industry indicated PC purchase plans were cancelled, and in this sector, reduced, postponed, and as-planned responses came in near the averages.
What's happening at your organization? Post your comments below.
Business Leaders Embrace Online Networking
Posted by Mark Brousseau
With the employment market feeling the effects of a global recession, recent research from ExecuNet, a professional network for business leaders, reveals executives from across all industries are turning to technology to improve their networks and career prospects - with mixed results.
According to a recent survey of 4,680 business leaders, executives are more likely to have updated their profile on a public networking site (71%) than updated their resume in the last three months (60%). However, when asked to identify the most effective activities for creating and identifying career opportunities, posting a resume in an online database and maintaining an online profile trailed networking by a wide margin.
Top Five Tactics For Finding Career Options
... Networking (70%)
... Responding to online job postings (14%)
... Posting resume in online database (5%)
... Maintaining an online profile (4%)
... Researching target companies/cold calling (3%)
“The growth of large social networking sites helps to underscore an increasing awareness of the value of networking,” says Lauryn Franzoni, Executive Director of ExecuNet. “However, relying solely on an online profile to build trust, a critical component in developing and maintaining an effective network, isn’t a productive strategy.”
To help executives strengthen their online networking strategies, ExecuNet offers the following advice:
Don’t Confuse Quantity With Quality - Networking is not a numbers game. While some large social networking sites provide a place to create a public profile page, anecdotal evidence suggests that they don’t always facilitate a meaningful level of interaction among members. When evaluating online networking resources, professionals should look for niche networks that foster the exchange of information and insight in a trusted environment. This level of interaction is critical to strengthening the quality of your contacts – online or off.
Avoid “Needworking” - A contact or friends list of thousands of people is useless if you only reach out to them when you’re in need. Striving to meet the needs of others on a consistent basis will not only help you earn the appreciation and respect of others, but your actions will often be quickly reciprocated.
Know Your Contacts – If you are looking for new opportunities, don’t blast generic emails out touting your skills and announcing your availability. Tailor your message to the needs of the recipient. Want to connect with a corporate property manager? Learn more about the company’s expansion plans and contact that individual offering an article or advice from your own personal experience. Share your knowledge – not your need.
Be Reputation-Vigilant – When networking, you can expect that new contacts will immediately “Google” your name. Be sure that you know what they will find when they do. For example, some 44% of recruiters tell us they have ruled out candidates based solely on what they found in online searches.
“Create a Google Alert for the most common forms of your name and be sure you can’t be confused with someone with a similar name. It is as important to be cyber-visible as it is to have a crisp online presence,” Franzoni said.
What strategies are working for you?
Tuesday, May 12, 2009
7 Steps to a Career Change
Posted by Mark Brousseau
It happened. Your worst recession nightmare came true. You strolled into work securely (if unenthusiastically) employed and stumbled out, pink slip in hand, jobless in an overcrowded market. Gripped by the fear of not being able to pay the bills and worried that opportunity won't knock twice in this down economy, you rush into the first job your quickly updated resume leads to. Sure, you might end up being just as unhappy as you were before, but at least the check coming every two weeks will keep you from becoming destitute. However, Robin Fisher Roffer stresses that even in these difficult times you shouldn't confuse activity with progress.
She says that whether you're newly laid off or simply desperate for a career change, if you change your focus from just keeping your head above water to becoming a fearless fish and going after the job you truly want, you'll be setting yourself up for a happier life in the long run.
You're probably thinking, But wait! Isn't this the worst possible time to pursue the new career I've dreamed about?
"Not at all," says Roffer, author of The Fearless Fish Out of Water: How to Succeed When You're the Only One Like You. "Actually, it's the perfect time to search your soul, muster your courage, and become a fearless (career changing) fish out of water. That may mean finding your dream job, entering a new industry, or even venturing out on your own as an entrepreneur."
Despite the bad economy, Roffer stresses that opportunities do exist. That's why she says it's more important than ever to create a personal brand identity and to shine a light on those qualities that make you different and more desirable than the rest. Playing up what makes you special could be the very thing that gets you your next job and keeps you in business.
In her new book, Roffer teaches that—contrary to popular belief—standing out is a good thing. Being different gets you noticed and it's the first step to gaining influence.
"Your unique personality, outlook, appearance, or background—really, any attribute that sets you apart—is not a liability but an asset," says Roffer. "If you're looking for a new job or just want to make the career change you think will make you happier, there's never been a more important time to put your unique self out there."
Read on for Roffer's seven steps to being a fearless fish out of water and how they can help you get the job you've always wanted, even in a down economy:
STEP 1: Go Fishing for the Real You. No one knows what's special about you better than you do. So, don't squander it...focus on it! In today's economy, there's no room for generalists. We are in an era of specialization—where being different is good. As a free agent making a significant career change, you've got to put a flag in the ground and declare who you are and what you're good at. If you haven't done this, I promise that others have done it for you. But, they might have gotten you wrong. And, that's the danger.
"To write your next chapter, peel away all the layers you've built up playing the game for others and hone your skills to become an expert at something that's valuable right now," says Roffer. "Perhaps you've been in marketing at a big company and you want to break out and start your own firm. Think about what makes you special in the marketing arena and go with that. For example, maybe you can market any kind of product or service, but where you really excel is in multicultural marketing. If that's your vein of gold, and where you can drive revenue to your client's bottom line, then that's where you might want to place the focus of your new business."
STEP 2: Use Your Differences as a Lure. If you've gotten the pink slip and some severance pay, the natural tendency in extraordinary economic times like these might be to just hunker down, cut back on expenses, and try to hold on to the money. Newsflash! That's exactly the strategy that could hang you in the long run. Because if you're not standing up, standing out, and standing for something important right now, you will become irrelevant.
"Ask former colleagues, clients, customers, and friends what they think makes you positively different at work," says Roffer. "What qualities do you possess that attract people to you and the work you produce? Use the strengths of what makes you different to find your career destiny. Choose a path that feeds your passion and builds on who you are deep inside. Don't just do the logical thing or the expected thing. Do what resonates with your soul. When you do what you love, you'll get positive recognition and the money will come."
STEP 3: Find a Few Fish Like You. Next you'll need to build relationships and make connections. Finding people who have faith in you is like finding an anchor in rough seas. Now is the time to connect with others in your situation who believe in your dream and can cheerlead you on. Start attending luncheons, trade shows, or seminars in the industry you want to be in to find people who share your passion. Find out how you can help each other get ahead in these difficult times.
"Hire a business coach or find a mentor who can help you strategize your transition," says Roffer. "Reward cheerleaders in your personal and professional circles for their loyalty and support and let go of naysayers and time wasters whose negativity will only hold you back. This is the moment to deepen positive relationships to ensure your security and your future."
STEP 4: Swim in Their Ocean Your Way. One way to differentiate yourself from the pack and stay true to the core you is by the way you dress. Put on what's acceptable in your industry and then kick it up in unexpected ways to become unforgettable. Every great brand has packaging that reflects what's on the inside. Think in those terms the next time you go shopping. Does a dress say "school teacher" when it needs to say "business development"? Does your computer bag say "accountant" when it needs to say "web designer"? Are you wearing a golf shirt when a tie would speak volumes about your business acumen? Bottom line: Look the part you're playing and you'll play it better.
"Once you get inside your new company, adopt the culture without getting lost in it," says Roffer. "As a person in transition, who feels like a fish out of water, it can be deadly to get so entrenched in someone else's culture or demands that you can't find the real you. Instead look for what resonates with you and don't buy into what doesn't feel right. Stay true to your core values. If you don't, at the end of this recession, you may not recognize yourself."
STEP 5: Put Yourself Out on the Line. Fearless fish are perfectly positioned to make a difference in the world. Think of Oprah, Bono, and Bill Gates. It's not the wallflower who's going to help their customers go green, or the conformist who will invent the new business model. Getting behind a cause is good for business and makes you look like a hero. Volunteer, join a board, make a major donation.
"Each year a percentage of my company's revenue goes to The Aquarium of the Pacific to save our oceans and the animals that live there," says Roffer. "We put that fact right on our invoices. It makes our customers feel good about working with us. Figure out a way to give back as you transition to your new career. Or better yet, choose a career that is a cause! You may be paralyzed by fear and feel like every minute you need to push that rock up the hill. But shake it off. Give to others instead and watch what you receive in return."
STEP 6: Evolve by Casting a Wide Net. Conformity is not distinguishing. The way to live deeply is to keep reinventing yourself, changing with the times and with your customers. Holding onto the essential you while updating your style, your website, your advertising, and your thinking is the fastest way to the top. Step 6 of being a fearless fish asks that you use your place outside the circle to always be relevant to your company and industry.
"If you've been pigeonholed, now is the time to change perception by learning a new language, taking classes that will sharpen your skills, becoming an apprentice to someone you aspire to be like, and polishing your web presence so that you shine online," says Roffer. "Identify the next peak you want to climb and take the necessary steps to evolve who you are to get there. It's about staying true to the essence of who you are, and then recasting your image to feel brand new."
STEP 7: Reel in Your Unique Power. It's easy to succeed when things are going right. What determines real character is what you do when faced with adversity. To muster the strength to succeed, look back at other times in your life when you rose to the occasion. You'll realize how brave you really are!
"Uncertainty makes everyone question their personal value and the value of their skills," says Roffer. "However, the fearless among us overcome these doubts by practicing their ABCs—action, belief, and courage."
"It's time to stop wringing your hands and start raising the bar on who you can be and where you can go," says Roffer. "The way you see yourself can either propel you forward or hold you back. When you start going after jobs, remember, the story that you tell about yourself is what others will believe. Use your unique power to make them believe that you are indispensable and that is exactly what you will be!"
What do you think? Post your comments below.
It happened. Your worst recession nightmare came true. You strolled into work securely (if unenthusiastically) employed and stumbled out, pink slip in hand, jobless in an overcrowded market. Gripped by the fear of not being able to pay the bills and worried that opportunity won't knock twice in this down economy, you rush into the first job your quickly updated resume leads to. Sure, you might end up being just as unhappy as you were before, but at least the check coming every two weeks will keep you from becoming destitute. However, Robin Fisher Roffer stresses that even in these difficult times you shouldn't confuse activity with progress.
She says that whether you're newly laid off or simply desperate for a career change, if you change your focus from just keeping your head above water to becoming a fearless fish and going after the job you truly want, you'll be setting yourself up for a happier life in the long run.
You're probably thinking, But wait! Isn't this the worst possible time to pursue the new career I've dreamed about?
"Not at all," says Roffer, author of The Fearless Fish Out of Water: How to Succeed When You're the Only One Like You. "Actually, it's the perfect time to search your soul, muster your courage, and become a fearless (career changing) fish out of water. That may mean finding your dream job, entering a new industry, or even venturing out on your own as an entrepreneur."
Despite the bad economy, Roffer stresses that opportunities do exist. That's why she says it's more important than ever to create a personal brand identity and to shine a light on those qualities that make you different and more desirable than the rest. Playing up what makes you special could be the very thing that gets you your next job and keeps you in business.
In her new book, Roffer teaches that—contrary to popular belief—standing out is a good thing. Being different gets you noticed and it's the first step to gaining influence.
"Your unique personality, outlook, appearance, or background—really, any attribute that sets you apart—is not a liability but an asset," says Roffer. "If you're looking for a new job or just want to make the career change you think will make you happier, there's never been a more important time to put your unique self out there."
Read on for Roffer's seven steps to being a fearless fish out of water and how they can help you get the job you've always wanted, even in a down economy:
STEP 1: Go Fishing for the Real You. No one knows what's special about you better than you do. So, don't squander it...focus on it! In today's economy, there's no room for generalists. We are in an era of specialization—where being different is good. As a free agent making a significant career change, you've got to put a flag in the ground and declare who you are and what you're good at. If you haven't done this, I promise that others have done it for you. But, they might have gotten you wrong. And, that's the danger.
"To write your next chapter, peel away all the layers you've built up playing the game for others and hone your skills to become an expert at something that's valuable right now," says Roffer. "Perhaps you've been in marketing at a big company and you want to break out and start your own firm. Think about what makes you special in the marketing arena and go with that. For example, maybe you can market any kind of product or service, but where you really excel is in multicultural marketing. If that's your vein of gold, and where you can drive revenue to your client's bottom line, then that's where you might want to place the focus of your new business."
STEP 2: Use Your Differences as a Lure. If you've gotten the pink slip and some severance pay, the natural tendency in extraordinary economic times like these might be to just hunker down, cut back on expenses, and try to hold on to the money. Newsflash! That's exactly the strategy that could hang you in the long run. Because if you're not standing up, standing out, and standing for something important right now, you will become irrelevant.
"Ask former colleagues, clients, customers, and friends what they think makes you positively different at work," says Roffer. "What qualities do you possess that attract people to you and the work you produce? Use the strengths of what makes you different to find your career destiny. Choose a path that feeds your passion and builds on who you are deep inside. Don't just do the logical thing or the expected thing. Do what resonates with your soul. When you do what you love, you'll get positive recognition and the money will come."
STEP 3: Find a Few Fish Like You. Next you'll need to build relationships and make connections. Finding people who have faith in you is like finding an anchor in rough seas. Now is the time to connect with others in your situation who believe in your dream and can cheerlead you on. Start attending luncheons, trade shows, or seminars in the industry you want to be in to find people who share your passion. Find out how you can help each other get ahead in these difficult times.
"Hire a business coach or find a mentor who can help you strategize your transition," says Roffer. "Reward cheerleaders in your personal and professional circles for their loyalty and support and let go of naysayers and time wasters whose negativity will only hold you back. This is the moment to deepen positive relationships to ensure your security and your future."
STEP 4: Swim in Their Ocean Your Way. One way to differentiate yourself from the pack and stay true to the core you is by the way you dress. Put on what's acceptable in your industry and then kick it up in unexpected ways to become unforgettable. Every great brand has packaging that reflects what's on the inside. Think in those terms the next time you go shopping. Does a dress say "school teacher" when it needs to say "business development"? Does your computer bag say "accountant" when it needs to say "web designer"? Are you wearing a golf shirt when a tie would speak volumes about your business acumen? Bottom line: Look the part you're playing and you'll play it better.
"Once you get inside your new company, adopt the culture without getting lost in it," says Roffer. "As a person in transition, who feels like a fish out of water, it can be deadly to get so entrenched in someone else's culture or demands that you can't find the real you. Instead look for what resonates with you and don't buy into what doesn't feel right. Stay true to your core values. If you don't, at the end of this recession, you may not recognize yourself."
STEP 5: Put Yourself Out on the Line. Fearless fish are perfectly positioned to make a difference in the world. Think of Oprah, Bono, and Bill Gates. It's not the wallflower who's going to help their customers go green, or the conformist who will invent the new business model. Getting behind a cause is good for business and makes you look like a hero. Volunteer, join a board, make a major donation.
"Each year a percentage of my company's revenue goes to The Aquarium of the Pacific to save our oceans and the animals that live there," says Roffer. "We put that fact right on our invoices. It makes our customers feel good about working with us. Figure out a way to give back as you transition to your new career. Or better yet, choose a career that is a cause! You may be paralyzed by fear and feel like every minute you need to push that rock up the hill. But shake it off. Give to others instead and watch what you receive in return."
STEP 6: Evolve by Casting a Wide Net. Conformity is not distinguishing. The way to live deeply is to keep reinventing yourself, changing with the times and with your customers. Holding onto the essential you while updating your style, your website, your advertising, and your thinking is the fastest way to the top. Step 6 of being a fearless fish asks that you use your place outside the circle to always be relevant to your company and industry.
"If you've been pigeonholed, now is the time to change perception by learning a new language, taking classes that will sharpen your skills, becoming an apprentice to someone you aspire to be like, and polishing your web presence so that you shine online," says Roffer. "Identify the next peak you want to climb and take the necessary steps to evolve who you are to get there. It's about staying true to the essence of who you are, and then recasting your image to feel brand new."
STEP 7: Reel in Your Unique Power. It's easy to succeed when things are going right. What determines real character is what you do when faced with adversity. To muster the strength to succeed, look back at other times in your life when you rose to the occasion. You'll realize how brave you really are!
"Uncertainty makes everyone question their personal value and the value of their skills," says Roffer. "However, the fearless among us overcome these doubts by practicing their ABCs—action, belief, and courage."
"It's time to stop wringing your hands and start raising the bar on who you can be and where you can go," says Roffer. "The way you see yourself can either propel you forward or hold you back. When you start going after jobs, remember, the story that you tell about yourself is what others will believe. Use your unique power to make them believe that you are indispensable and that is exactly what you will be!"
What do you think? Post your comments below.
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