Posted by Mark Brousseau
The best technology. The best employees. The biggest budget. The strongest R&D department. Check, check, check, and check! If you think these are all the elements you need in order to build a consistently successful company, you’re wrong. Dan Adams says there is one other factor you’ll need to check off that list—an innovation strategy that works.
“The best way to ensure your company will be a success 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. But you shouldn’t be guessing what they want. You should base your product innovation on what they say they want.”
Adams notes that back in 2007, Booz Allen Hamilton released an important study on innovation called “The Customer Connection: The Global Innovation 1000.” The company studied 84 percent of the planet’s corporate R&D spending and identified several distinct innovation strategies.
Most importantly, says Adams, the study highlighted one essential element of successful innovation that too many companies forget. Your employees aren’t the only people you should be engaging to create truly unique and profitable products. You should actually be focusing your efforts on engaging your customers!
The Booz Allen Hamilton study found that when it comes to innovation, customer engagement has a huge payoff. It noted, “Companies that directly engaged their customers had superior results regardless of innovation strategy.”
"And not just a little bit superior, a lot superior,” says Adams. “Those companies that used direct customer engagement while innovating versus indirect customer insight enjoyed great financial gains.”
In fact, the study found that the companies that based their innovation strategies on customer feedback experienced gains in the following key areas:
1) Profit Growth: Operating income growth rate that was three times higher.
2) Shareholder Return: Total shareholder return that was 65 percent higher.
3) Return on Assets: Return on assets that was two times higher.
“What should you do with this information?” asks Adams. “For starters, if you’re in a conversation about your company’s innovation and nobody’s talking about the customer, realize something might be very wrong. To put it in terms of the study, your company might be practicing ‘indirect customer insight’ instead of ‘direct customer engagement.’ This is a kind way of saying, ‘We’ve lost track of who our innovation is supposed to help.’”
If you think your company needs some innovation help, read on for a few words of advice from Adams.
Take it to the next level. For more than five years, Adams has been helping B2B suppliers engage their customers in the innovation process. In that time, he has almost seen it all! And he’s used what he’s seen to distinguish six levels of customer engagement during product development. What’s your level?
Level 1: Our Conference Room: At the lowest level, you decide what customers want around your conference room table. Internal opinions determine the design of your next new product.
Level 2: Ask Our Experts: At the next level, you poll your sales force, tech service department, and other internal experts to determine customer needs. Better—because more voices are heard—but still too “internal.”
Level 3: Customer Survey: Here you use surveys and polls to ask customers what they want. This begins to shake out internal biases…but doesn’t deliver much in the way of deep insight.
Level 4: Qualitative VOC Interviews: You send out interview teams that meet with customers to learn what they want. This is a quantum leap from VOO (voice of ourselves) to VOC (voice of the customer).
Level 5: Quantitative VOC Interviews: The problem with just qualitative VOC is that people hear what they want to hear. Quantitative feedback drives out assumptions, bias, and wishful thinking.
Level 6: B2B VOC Interviews: Unlike end-consumers, B2B customers are knowledgeable, rational, and interested. B2B-optimized interview methodology fully engages them to take advantage of this.
“If you aren’t happy with your level, don’t worry,” says Adams. “Through solid training and committed leadership, I’ve seen businesses leap from Level 1 to 6 in the space of a year.”
Remember who’s showing you the money. A successful company innovates for its customers, not itself. “That’s because nobody inside your company can pay for innovation,” notes Adams. “Only your customers can do that. So the more closely you engage those who pay…the more you learn what they’ll pay for.”
Make sure you’re asking the right questions. Too often, innovation is misunderstood as the process of coming up with the right answers. “The reality is that it is actually about asking the right questions,” explains Adams. “If the bright people in your company are focused on real customer needs, they’ll run circles around the bright people at competitors who are focused elsewhere.”
Learn to pre-sell. “I believe the Booz Allen Hamilton conclusions are especially potent for the B2B supplier serving a concentrated market,” says Adams. “If you interview the ten largest prospects in your target market correctly, you’ll engage them so they’ll be primed to buy when you launch that new product.”
“So the bottom line is if you want to boost your innovation, you should start by directly engaging your customers,” says Adams. “And do this in a way that allows you to understand their world, focus on their important, unsatisfied needs, and entice them to keep working with you.
"This innovation strategy is great because you are removing the guessing game aspect of new product development,” he concludes. “You won’t have to worry about whether or not your customers will like your new products because you’ll already know you are delivering exactly what they want.”
What do you think?
Showing posts with label productivity. Show all posts
Showing posts with label productivity. Show all posts
Wednesday, June 22, 2011
Wednesday, January 12, 2011
Workplace Behaviors that Drain Everyone's Energy
Posted by Mark Brousseau
If you’re like most people, 2010 was a long, exhausting year at your workplace. You’re tired, depleted, and quite frankly just done with “business as usual.” You’re laying the blame for your fatigue squarely at the feet of the increased responsibilities and long hours you faced. But according to Jon Gordon, you might be wrong. He insists that working hard—when done with a good attitude in the right environment—can actually be quite invigorating.
In other words, what’s wearing you out at work might not be the work.
“Most people wrongly assume that their tasks and responsibilities are what’s grinding them down,” explains Gordon, author of the newly released Soup: A Recipe to Nourish Your Team and Culture. “However, while ‘work’ is a convenient scapegoat, the real culprit is often the negativity of the people you work with and for, their constant complaining, and the pessimistic culture that is now the norm in a lot of workplaces.”
The fact is, many of us work in a world of drainers. And what, exactly, is a drainer? Gordon says the term can describe anyone in the workplace—a boss, coworker, employee, or client—who sucks the life and energy right out of you.
No one sets out to be a drainer, of course. It’s just that some people regularly (and inadvertently) exhibit energy-draining behaviors. What’s worse, many bosses allow them to continue—or are themselves guilty of practicing these behaviors. And over time, the entire culture becomes poisoned.
Don’t fret, though: Gordon promises that if managers are able to identify the offending behaviors and fix them, they’ll be able to spend more time nourishing their companies’ cultures—which will, in turn, make employees happier and more productive, thus increasing the bottom line.
Read on for Gordon’s top twelve draining behaviors (presented in a what-not-to-do format), as well as tips for how you can make a change for the better in each of these situations this New Year:
1. The Energy Vampire Attack
DON’T: Let negativity become your go-to response. There’s nothing more draining than a boss or coworker who is constantly negative. Gordon calls these folks “energy vampires.” They are never happy, rarely supportive, and constantly nay-saying any and all ideas and suggestions that aren’t their own. According to them, you might as well give up before you start.
DO: Respond constructively when someone offers up an idea. Even if you know more about a particular project, have more experience than the rest of your team, or are positive that the suggestions others are making are off the mark, hear them out. Let employees and coworkers know that when they come to you with their ideas, they’ll be heard with an open mind and received with respect. Insist that everyone else practice positivity as well. While negativity squelches creativity and initiative, an encouraging attitude will keep creative juices flowing and encourage constructive dialogue.
“As pessimism rises, performance decreases,” Gordon explains. “You have to encourage optimism and guard against pessimism, or your team will suffer.”
2. The Out-of-Control Complain Train
DON’T: Give in to the temptation to whine. It’s a well-known phenomenon that can have catastrophic consequences: One person’s complaint resonates with someone else, who then proceeds to add grievances to the pile, which prompts yet another individual to throw in her two (negative) cents…and so on. Before you know it, everyone is complaining, and any work that gets done thereafter is marred by a bad attitude.
DO: Push for solutions. The next time a water-cooler conversation threatens to barrel out of control into Complaint Central, step in and ask the complainees how they would make things better. Better yet, take a cue from Gordon’s bestselling book The No Complaining Rule and ban complaints altogether. It’s tough love for sure—but it will also create and sustain a positive culture.
“When you boil things down, complaints are just noise and nothing more—but each one does represent an opportunity to turn something negative into something positive,” Gordon points out. “Turn your employees from problem-sharers to problem-solvers—it’ll make an unbelievable difference in your office’s atmosphere!”
3. The Vicious Voicemail (or Email)
DON’T: Leave critical or harsh messages on voicemail or send them to an email inbox. Nine times out of ten, these critiques seem much more vehement and condemnatory than they actually are. Plus, any communication you send via electronic methods can potentially last forever. Not only could your words come back to haunt you, they’ll also be a constant reminder to your coworker or employee of his or her supposed shortcomings.
DO: Suck it up and conduct the tough talks in person. If you need to have a stern talk with someone, or if you need to talk through a conflict or problem, do it in person if at all possible. You’ll be able to ensure that your words and tone aren’t misinterpreted, and you’ll be able to immediately have a constructive dialogue with the other person. By talking about ways to improve, you can end the conversation on a positive and encouraging note.
4. The Loaded Monday Morning Inbox
DON’T: Overwhelm your team with a mountain of emails before the week is underway. If you’re finishing up your own to-do list late on a Friday night, or if you’re simply trying to get a jumpstart on the week ahead, it can be tempting to dish out the details and to-dos as you think of them. After all, if you wait ’til Monday morning, you might forget to tell those who need to know! However, coming in to an inbox of fifty-seven new messages is draining and makes folks feel like they’re fighting an uphill battle from the start.
DO: Boil down and bundle your communication as considerately as possible. Inevitably, people are going to be working late and sending emails over the weekend—in today’s business culture, it’s unavoidable! However, there are a few things you can do to make “You’ve Got Mail!” less stressful and more efficient for the recipient. Be sure to flag any urgent emails so that your teammates know which tasks to tackle first—and include as many details as possible so that 1) you won’t forget them, and 2) the recipient can get started as quickly as possible. If you can, combine as many of the tasks and questions as you can into one document.
“One email as opposed to ten separate ones is a lot less intimidating,” reminds Gordon. “And if you do fire off a multitude of messages in a moment of panic, a quick note acknowledging the unusual volume can change everything!”
5. The Busy Bee Bamboozle
DON’T: Confuse activity with progress. You know the person. She’s always soooo busy but doesn’t ever seem to meet deadlines or get anything done. When teams are being formed, people secretly hope she isn’t assigned to theirs. She’s living proof of the fact that just because your day is full of things to do doesn’t necessarily mean that you’re getting them done.
DO: Set goals and hold yourself and your employees accountable for results. These results should be ones that matter and that are visible and valuable to your team. It can be helpful to transition over to a day-to-day plan that will help everyone stay on the right track. Most importantly, don’t put your team in situations where the lines are blurred. If the goals are crystal clear, they’ll be easier to accomplish.
6. The Low Performer Look-Away
DON’T: Let sub-par work slide. Simply put, low performers drag the rest of the team down. They are like a cancer inside your organization, creating resentment and generating more work for everyone else. And if you allow them to linger and thrive for too long, your best employees will move on to a more productive environment.
DO: Institute a zero-tolerance policy for low performers. Hold your entire team accountable for meeting their goals and adhering to the same performance standards. If one person consistently misses the bar, then you need to take swift action. Let your employees know that you value their hard work and that you will not allow others to do less and get away with it.
“In support of this initiative, strive for complete transparency,” Gordon advises. “When your team knows exactly what’s expected, they’ll know where they stand—and you’ll be able to make sure that their fears, uncertainties, and questions aren’t holding them back.”
7. The Unclear Communiqué
DON’T: Assume others have all the information they need, or that something you know isn’t really all that important. These hastily drawn conclusions that result from chronic poor communication can lead to serious mistakes and major missed opportunities. Plus, lack of clarity is incredibly frustrating to those who must work with you. When employees, coworkers, or supervisors have to spend their time tracking you down for clarification, rather than getting the communication from you that they need, productivity falls and creativity is stifled.
DO: Make a concerted and proactive effort to make sure that the right people are in the know. Whether it’s letting your boss know that a client’s daughter is getting married (so he can call in congratulations) or telling a coworker that a vendor prefers to be contacted only via email, be sure to tell the appropriate people. You’ll set your entire team up for success and ensure that your clients get the service they deserve. Also, make sure you copy the right people on emails, promptly return voicemails, and are clear about directions and expectations. And if you say you are going to do something, mean it.
“A big part of a successful culture is having a relationship between employees and managers that is built on trust and collaboration,” says Gordon. “And that can happen only if a clear line of communication is established so that inspiration, encouragement, empowerment, and coaching can take place.”
8. The Disorganization Drag-Down
DON’T: Allow disorganization to impede productivity. If you’re managing or leading a company, heading up a big project, or traveling non-stop, it’s likely you’ve lost an email, important paper, phone number, or pie chart or two (or three or four) in your day. You’re busy, and that’s understandable. But constant disorganization can drain your employees and coworkers if they always have to cover your tracks. It may not always be possible, and accidents do happen—but not being able to find the quarterly report for the third meeting in a row sets a bad example, and it depletes others of the energy they could be putting towards other, more productive work.
DO: Make a concerted effort to keep up with your tasks and responsibilities. And if you can’t immediately put your hands on something you need, don’t automatically ask others for help. Take a few minutes to try and find what you need on your own. Better yet, try to think of better systems and processes than the ones you’re using (or not using) now. If you see that someone in your office has a particular knack for organization, ask her for some tips to help you out.
“Remember that there’s no substitute for communication when you do drop the ball,” Gordon instructs. “Tell your employees that between travel, a jam-packed schedule, and working between two computers and a smartphone, you’ve lost something you shouldn’t have. If you are humble and honest about it, they’ll be more sympathetic to your plight and more likely to jump in and help you keep things organized!”
9. The Hasty Plate Clear-Off
DON’T: Sacrifice quality on the altar of expediency. There’s a lot of work to do, and you (understandably) want to get your own tasks done so you don’t hold up others. However, moving through assignments quickly in order to get them off your own plate can also mean that you’re piling the work on someone else. If you’ve rushed, you’re more likely to have made mistakes and been sloppy, which isn’t fair to the person who gets the assignment after you.
DO: Take the time you need to do the job right. Rather than rushing through a report or clicking “send” just because it’s 5:00 p.m., get focused and make sure you do your best work the first time. Pay attention to details, check over your work, and make sure you’ve followed the proper guidelines. Your coworkers and employees would rather have a project that’s done right than one that’s ahead of schedule. (And if you have to turn in a project a day late on occasion, it’s not the end of the world.)
“Doing your best work sets the rest of your team up for success,” notes Gordon. “When people realize that you’re this kind of teammate, they’ll take on your projects with confidence and energy.”
10. The Chronic Deadline Dodge
DON’T: Allow unmet deadlines to throw everything and everyone off-track. With all the unexpected obstacles you face in a workday, it’s not always easy to meet deadlines. And yes, sometimes it’s impossible—but those times should be few and far between. When people chronically miss deadlines, it’s a sure sign of a cultural issue. Either people aren’t giving it their all—or they’re truly overburdened. Either way, your company’s productivity will suffer.
DO: Set reasonable, clear deadlines for everyone involved (and hold hem accountable). Once something gets off-track, nobody is willing to own it. Make sure you set reasonable deadlines that you and your teammates can meet in order to avoid setting folks up for failure. And even if it takes some extra elbow grease from time to time, make a conscious effort to meet every deadline every time (and hold your team accountable for meeting them, too!).
11. The Unattainable Atta-Boy (or Atta-Girl!)
DON’T: Get so caught up in what’s coming down the pike that you forget to acknowledge what’s happening now. Most managers and business leaders would agree that they feel a lot of pressure. And it can be hard for them to constantly be the ones catching the heat from the higher-ups while the rest of the employees have only their own goals to meet and worry about. However, when responsibilities give you to-do tunnel vision and cause you to skimp on the “job well dones,” employees can get discouraged in a hurry—especially if you immediately ask about another goal that’s gone unmet or push more work at them to try and make up for losses in other areas.
DO: Express appreciation and admiration when appropriate. Employees don’t need a pat on the back and a round of applause at every turn. What they do need is to know that you can be satisfied. If, like a hamster running in a wheel, an employee feels as though no amount of hard work or hours spent will ever garner the boss’s approval or satisfaction, his energy and self-motivation will be zapped.
“Leadership is not so much about what you do,” asserts Gordon. “It’s about what you can inspire, encourage, empower, and coach others to do. If employees know you can be pleased and that goals can be reached, then they will happily work toward those things.”
12. The Blame Game
DON’T: Point fingers at others in order to take the heat off of yourself. A mistake is made, the boss is mad, a deadline is missed. If all eyes are on your team and you start pointing fingers, you could be making a huge mistake. If your employees or your coworkers don’t think you shoulder your share of the blame or are unapproachable when it comes to constructive criticism, they’ll start to shut down toward you.
DO: Accept responsibility for your actions gracefully and humbly. Nobody likes to be the one at fault. But owning up to your mistakes and learning from them are big parts of working together and being successful. If you make a mistake, be the first to own up to it and try to do things differently in the future. Also, be open to suggestions and criticisms—they may make the going much smoother!
If some of these behaviors sound all too familiar, don’t despair. The cusp between the year that’s just passed and the one that’s to come is the perfect time to take stock of what’s making your culture less than nourishing—and resolve to make it better.
“It’s important for managers to acknowledge that it’s been a tough twelve months and that you understand why folks are feeling drained and depleted,” concludes Gordon. “Above all, tell them that you are willing and eager to help alleviate some of that stress! A little acknowledgment can go a long way toward a brighter, more productive, and much more energized 2011.”
If you’re like most people, 2010 was a long, exhausting year at your workplace. You’re tired, depleted, and quite frankly just done with “business as usual.” You’re laying the blame for your fatigue squarely at the feet of the increased responsibilities and long hours you faced. But according to Jon Gordon, you might be wrong. He insists that working hard—when done with a good attitude in the right environment—can actually be quite invigorating.
In other words, what’s wearing you out at work might not be the work.
“Most people wrongly assume that their tasks and responsibilities are what’s grinding them down,” explains Gordon, author of the newly released Soup: A Recipe to Nourish Your Team and Culture. “However, while ‘work’ is a convenient scapegoat, the real culprit is often the negativity of the people you work with and for, their constant complaining, and the pessimistic culture that is now the norm in a lot of workplaces.”
The fact is, many of us work in a world of drainers. And what, exactly, is a drainer? Gordon says the term can describe anyone in the workplace—a boss, coworker, employee, or client—who sucks the life and energy right out of you.
No one sets out to be a drainer, of course. It’s just that some people regularly (and inadvertently) exhibit energy-draining behaviors. What’s worse, many bosses allow them to continue—or are themselves guilty of practicing these behaviors. And over time, the entire culture becomes poisoned.
Don’t fret, though: Gordon promises that if managers are able to identify the offending behaviors and fix them, they’ll be able to spend more time nourishing their companies’ cultures—which will, in turn, make employees happier and more productive, thus increasing the bottom line.
Read on for Gordon’s top twelve draining behaviors (presented in a what-not-to-do format), as well as tips for how you can make a change for the better in each of these situations this New Year:
1. The Energy Vampire Attack
DON’T: Let negativity become your go-to response. There’s nothing more draining than a boss or coworker who is constantly negative. Gordon calls these folks “energy vampires.” They are never happy, rarely supportive, and constantly nay-saying any and all ideas and suggestions that aren’t their own. According to them, you might as well give up before you start.
DO: Respond constructively when someone offers up an idea. Even if you know more about a particular project, have more experience than the rest of your team, or are positive that the suggestions others are making are off the mark, hear them out. Let employees and coworkers know that when they come to you with their ideas, they’ll be heard with an open mind and received with respect. Insist that everyone else practice positivity as well. While negativity squelches creativity and initiative, an encouraging attitude will keep creative juices flowing and encourage constructive dialogue.
“As pessimism rises, performance decreases,” Gordon explains. “You have to encourage optimism and guard against pessimism, or your team will suffer.”
2. The Out-of-Control Complain Train
DON’T: Give in to the temptation to whine. It’s a well-known phenomenon that can have catastrophic consequences: One person’s complaint resonates with someone else, who then proceeds to add grievances to the pile, which prompts yet another individual to throw in her two (negative) cents…and so on. Before you know it, everyone is complaining, and any work that gets done thereafter is marred by a bad attitude.
DO: Push for solutions. The next time a water-cooler conversation threatens to barrel out of control into Complaint Central, step in and ask the complainees how they would make things better. Better yet, take a cue from Gordon’s bestselling book The No Complaining Rule and ban complaints altogether. It’s tough love for sure—but it will also create and sustain a positive culture.
“When you boil things down, complaints are just noise and nothing more—but each one does represent an opportunity to turn something negative into something positive,” Gordon points out. “Turn your employees from problem-sharers to problem-solvers—it’ll make an unbelievable difference in your office’s atmosphere!”
3. The Vicious Voicemail (or Email)
DON’T: Leave critical or harsh messages on voicemail or send them to an email inbox. Nine times out of ten, these critiques seem much more vehement and condemnatory than they actually are. Plus, any communication you send via electronic methods can potentially last forever. Not only could your words come back to haunt you, they’ll also be a constant reminder to your coworker or employee of his or her supposed shortcomings.
DO: Suck it up and conduct the tough talks in person. If you need to have a stern talk with someone, or if you need to talk through a conflict or problem, do it in person if at all possible. You’ll be able to ensure that your words and tone aren’t misinterpreted, and you’ll be able to immediately have a constructive dialogue with the other person. By talking about ways to improve, you can end the conversation on a positive and encouraging note.
4. The Loaded Monday Morning Inbox
DON’T: Overwhelm your team with a mountain of emails before the week is underway. If you’re finishing up your own to-do list late on a Friday night, or if you’re simply trying to get a jumpstart on the week ahead, it can be tempting to dish out the details and to-dos as you think of them. After all, if you wait ’til Monday morning, you might forget to tell those who need to know! However, coming in to an inbox of fifty-seven new messages is draining and makes folks feel like they’re fighting an uphill battle from the start.
DO: Boil down and bundle your communication as considerately as possible. Inevitably, people are going to be working late and sending emails over the weekend—in today’s business culture, it’s unavoidable! However, there are a few things you can do to make “You’ve Got Mail!” less stressful and more efficient for the recipient. Be sure to flag any urgent emails so that your teammates know which tasks to tackle first—and include as many details as possible so that 1) you won’t forget them, and 2) the recipient can get started as quickly as possible. If you can, combine as many of the tasks and questions as you can into one document.
“One email as opposed to ten separate ones is a lot less intimidating,” reminds Gordon. “And if you do fire off a multitude of messages in a moment of panic, a quick note acknowledging the unusual volume can change everything!”
5. The Busy Bee Bamboozle
DON’T: Confuse activity with progress. You know the person. She’s always soooo busy but doesn’t ever seem to meet deadlines or get anything done. When teams are being formed, people secretly hope she isn’t assigned to theirs. She’s living proof of the fact that just because your day is full of things to do doesn’t necessarily mean that you’re getting them done.
DO: Set goals and hold yourself and your employees accountable for results. These results should be ones that matter and that are visible and valuable to your team. It can be helpful to transition over to a day-to-day plan that will help everyone stay on the right track. Most importantly, don’t put your team in situations where the lines are blurred. If the goals are crystal clear, they’ll be easier to accomplish.
6. The Low Performer Look-Away
DON’T: Let sub-par work slide. Simply put, low performers drag the rest of the team down. They are like a cancer inside your organization, creating resentment and generating more work for everyone else. And if you allow them to linger and thrive for too long, your best employees will move on to a more productive environment.
DO: Institute a zero-tolerance policy for low performers. Hold your entire team accountable for meeting their goals and adhering to the same performance standards. If one person consistently misses the bar, then you need to take swift action. Let your employees know that you value their hard work and that you will not allow others to do less and get away with it.
“In support of this initiative, strive for complete transparency,” Gordon advises. “When your team knows exactly what’s expected, they’ll know where they stand—and you’ll be able to make sure that their fears, uncertainties, and questions aren’t holding them back.”
7. The Unclear Communiqué
DON’T: Assume others have all the information they need, or that something you know isn’t really all that important. These hastily drawn conclusions that result from chronic poor communication can lead to serious mistakes and major missed opportunities. Plus, lack of clarity is incredibly frustrating to those who must work with you. When employees, coworkers, or supervisors have to spend their time tracking you down for clarification, rather than getting the communication from you that they need, productivity falls and creativity is stifled.
DO: Make a concerted and proactive effort to make sure that the right people are in the know. Whether it’s letting your boss know that a client’s daughter is getting married (so he can call in congratulations) or telling a coworker that a vendor prefers to be contacted only via email, be sure to tell the appropriate people. You’ll set your entire team up for success and ensure that your clients get the service they deserve. Also, make sure you copy the right people on emails, promptly return voicemails, and are clear about directions and expectations. And if you say you are going to do something, mean it.
“A big part of a successful culture is having a relationship between employees and managers that is built on trust and collaboration,” says Gordon. “And that can happen only if a clear line of communication is established so that inspiration, encouragement, empowerment, and coaching can take place.”
8. The Disorganization Drag-Down
DON’T: Allow disorganization to impede productivity. If you’re managing or leading a company, heading up a big project, or traveling non-stop, it’s likely you’ve lost an email, important paper, phone number, or pie chart or two (or three or four) in your day. You’re busy, and that’s understandable. But constant disorganization can drain your employees and coworkers if they always have to cover your tracks. It may not always be possible, and accidents do happen—but not being able to find the quarterly report for the third meeting in a row sets a bad example, and it depletes others of the energy they could be putting towards other, more productive work.
DO: Make a concerted effort to keep up with your tasks and responsibilities. And if you can’t immediately put your hands on something you need, don’t automatically ask others for help. Take a few minutes to try and find what you need on your own. Better yet, try to think of better systems and processes than the ones you’re using (or not using) now. If you see that someone in your office has a particular knack for organization, ask her for some tips to help you out.
“Remember that there’s no substitute for communication when you do drop the ball,” Gordon instructs. “Tell your employees that between travel, a jam-packed schedule, and working between two computers and a smartphone, you’ve lost something you shouldn’t have. If you are humble and honest about it, they’ll be more sympathetic to your plight and more likely to jump in and help you keep things organized!”
9. The Hasty Plate Clear-Off
DON’T: Sacrifice quality on the altar of expediency. There’s a lot of work to do, and you (understandably) want to get your own tasks done so you don’t hold up others. However, moving through assignments quickly in order to get them off your own plate can also mean that you’re piling the work on someone else. If you’ve rushed, you’re more likely to have made mistakes and been sloppy, which isn’t fair to the person who gets the assignment after you.
DO: Take the time you need to do the job right. Rather than rushing through a report or clicking “send” just because it’s 5:00 p.m., get focused and make sure you do your best work the first time. Pay attention to details, check over your work, and make sure you’ve followed the proper guidelines. Your coworkers and employees would rather have a project that’s done right than one that’s ahead of schedule. (And if you have to turn in a project a day late on occasion, it’s not the end of the world.)
“Doing your best work sets the rest of your team up for success,” notes Gordon. “When people realize that you’re this kind of teammate, they’ll take on your projects with confidence and energy.”
10. The Chronic Deadline Dodge
DON’T: Allow unmet deadlines to throw everything and everyone off-track. With all the unexpected obstacles you face in a workday, it’s not always easy to meet deadlines. And yes, sometimes it’s impossible—but those times should be few and far between. When people chronically miss deadlines, it’s a sure sign of a cultural issue. Either people aren’t giving it their all—or they’re truly overburdened. Either way, your company’s productivity will suffer.
DO: Set reasonable, clear deadlines for everyone involved (and hold hem accountable). Once something gets off-track, nobody is willing to own it. Make sure you set reasonable deadlines that you and your teammates can meet in order to avoid setting folks up for failure. And even if it takes some extra elbow grease from time to time, make a conscious effort to meet every deadline every time (and hold your team accountable for meeting them, too!).
11. The Unattainable Atta-Boy (or Atta-Girl!)
DON’T: Get so caught up in what’s coming down the pike that you forget to acknowledge what’s happening now. Most managers and business leaders would agree that they feel a lot of pressure. And it can be hard for them to constantly be the ones catching the heat from the higher-ups while the rest of the employees have only their own goals to meet and worry about. However, when responsibilities give you to-do tunnel vision and cause you to skimp on the “job well dones,” employees can get discouraged in a hurry—especially if you immediately ask about another goal that’s gone unmet or push more work at them to try and make up for losses in other areas.
DO: Express appreciation and admiration when appropriate. Employees don’t need a pat on the back and a round of applause at every turn. What they do need is to know that you can be satisfied. If, like a hamster running in a wheel, an employee feels as though no amount of hard work or hours spent will ever garner the boss’s approval or satisfaction, his energy and self-motivation will be zapped.
“Leadership is not so much about what you do,” asserts Gordon. “It’s about what you can inspire, encourage, empower, and coach others to do. If employees know you can be pleased and that goals can be reached, then they will happily work toward those things.”
12. The Blame Game
DON’T: Point fingers at others in order to take the heat off of yourself. A mistake is made, the boss is mad, a deadline is missed. If all eyes are on your team and you start pointing fingers, you could be making a huge mistake. If your employees or your coworkers don’t think you shoulder your share of the blame or are unapproachable when it comes to constructive criticism, they’ll start to shut down toward you.
DO: Accept responsibility for your actions gracefully and humbly. Nobody likes to be the one at fault. But owning up to your mistakes and learning from them are big parts of working together and being successful. If you make a mistake, be the first to own up to it and try to do things differently in the future. Also, be open to suggestions and criticisms—they may make the going much smoother!
If some of these behaviors sound all too familiar, don’t despair. The cusp between the year that’s just passed and the one that’s to come is the perfect time to take stock of what’s making your culture less than nourishing—and resolve to make it better.
“It’s important for managers to acknowledge that it’s been a tough twelve months and that you understand why folks are feeling drained and depleted,” concludes Gordon. “Above all, tell them that you are willing and eager to help alleviate some of that stress! A little acknowledgment can go a long way toward a brighter, more productive, and much more energized 2011.”
Wednesday, May 5, 2010
Letter from the President
As the economy begins to show hopeful signs of recovery, organizations are shifting their focus from survival to success. Critical to this success will be the ability of organizations to drive innovation to gain a competitive advantage. This battle will be won on the frontlines, by corporate foot soldiers.
Unfortunately, workforce learning and development has long been a victim of corporate budget cuts and scrutiny due in large part to the subjective interpretation of its business impact, notes Aberdeen.
For instance, many companies have cut technology staff levels too deeply, making it challenging for IT departments to keep pace with demands, warns Dave Willmer, executive director of Robert Half Technology. "Although businesses may be able to operate with stretched teams in the short term, being perpetually understaffed isn't sustainable and can detract from the overall productivity."
Willmer's right.
In this increasingly competitive global business environment, where organizations face mounting pressure not only to improve productivity, but also to capitalize on internal know-how and subject matter expertise, development and innovation will take on heightened organizational importance.
"An organization will only go as far as its leadership's ability to lead employees," says Elizebeth Varghese of Aon Consulting. "History has shown a new genre of competitors has risen from each economic crisis, capitalizing on innovative ways to do business. Conversely, those organizations that have focused on 'just getting by' lose market share and may eventually disappear. Those employers turning their attention to building a focused workforce in 2010 ... will see a 'bottom-line' benefit."
"To excel during changing times and the economic recovery, we believe organizations must take an 'offensive' approach, implementing talent strategies dedicated to driving innovation," adds Jeff Schwartz, principal, Human Capital, Deloitte Consulting, LLC. This is where technology comes in.
For example, solutions that integrate enterprise information can provide employees with critical, cross-database information, such as transaction data, in real-time. This information, in turn, can give today’s knowledge workers the ability to make higher-quality, more rapid decisions, because they can base their decision-making on higher-quality, more up-to-date information, notes Aberdeen.
High performing organizations are increasingly seeing the need these types of knowledge management systems as being critical to ensuring employees have the information and tools they need to do their jobs, according to the results of a recent survey by CCH, a Wolters Kluwer business.
"The numbers are staggering," says CCH President Mike Sabbatis. "It's estimated that knowledge workers spend 15 to 35 percent of their time looking for information they need to do their jobs, and 40 percent of the time they never find it." High performing organizations are taking steps to ensure this productivity drain is stopped. Today, 32 percent use knowledge management systems, and the rate of adoption is expected to exceed 50 percent in three years, according to the CCH survey.
Several factors are driving this strong demand for knowledge management solutions, including continued staffing challenges and the demand for increased productivity, Sabbatis explains.
You can add the desire for innovation to that list.
Regardless of the economy, TAWPI will continue to provide its members -- many of whom are on the frontlines of their industry every day -- with the educational resources and tools they need to drive innovation and best practices across their organizations. From in-person events and actionable studies and reports, to industry councils and online resources, we are committed to facilitating the exchange of ideas that make businesses smarter. And we have even more resources planned.
TAWPI is excited about the future that lies ahead. Thanks for joining us on the journey!
Sincerely,
Frank Moran
President
TAWPI
Unfortunately, workforce learning and development has long been a victim of corporate budget cuts and scrutiny due in large part to the subjective interpretation of its business impact, notes Aberdeen.
For instance, many companies have cut technology staff levels too deeply, making it challenging for IT departments to keep pace with demands, warns Dave Willmer, executive director of Robert Half Technology. "Although businesses may be able to operate with stretched teams in the short term, being perpetually understaffed isn't sustainable and can detract from the overall productivity."
Willmer's right.
In this increasingly competitive global business environment, where organizations face mounting pressure not only to improve productivity, but also to capitalize on internal know-how and subject matter expertise, development and innovation will take on heightened organizational importance.
"An organization will only go as far as its leadership's ability to lead employees," says Elizebeth Varghese of Aon Consulting. "History has shown a new genre of competitors has risen from each economic crisis, capitalizing on innovative ways to do business. Conversely, those organizations that have focused on 'just getting by' lose market share and may eventually disappear. Those employers turning their attention to building a focused workforce in 2010 ... will see a 'bottom-line' benefit."
"To excel during changing times and the economic recovery, we believe organizations must take an 'offensive' approach, implementing talent strategies dedicated to driving innovation," adds Jeff Schwartz, principal, Human Capital, Deloitte Consulting, LLC. This is where technology comes in.
For example, solutions that integrate enterprise information can provide employees with critical, cross-database information, such as transaction data, in real-time. This information, in turn, can give today’s knowledge workers the ability to make higher-quality, more rapid decisions, because they can base their decision-making on higher-quality, more up-to-date information, notes Aberdeen.
High performing organizations are increasingly seeing the need these types of knowledge management systems as being critical to ensuring employees have the information and tools they need to do their jobs, according to the results of a recent survey by CCH, a Wolters Kluwer business.
"The numbers are staggering," says CCH President Mike Sabbatis. "It's estimated that knowledge workers spend 15 to 35 percent of their time looking for information they need to do their jobs, and 40 percent of the time they never find it." High performing organizations are taking steps to ensure this productivity drain is stopped. Today, 32 percent use knowledge management systems, and the rate of adoption is expected to exceed 50 percent in three years, according to the CCH survey.
Several factors are driving this strong demand for knowledge management solutions, including continued staffing challenges and the demand for increased productivity, Sabbatis explains.
You can add the desire for innovation to that list.
Regardless of the economy, TAWPI will continue to provide its members -- many of whom are on the frontlines of their industry every day -- with the educational resources and tools they need to drive innovation and best practices across their organizations. From in-person events and actionable studies and reports, to industry councils and online resources, we are committed to facilitating the exchange of ideas that make businesses smarter. And we have even more resources planned.
TAWPI is excited about the future that lies ahead. Thanks for joining us on the journey!
Sincerely,
Frank Moran
President
TAWPI
Tuesday, May 4, 2010
FUSION Preview
Posted by Mark Brousseau
Join me Wednesday, May 12 at 3:15 for an interactive panel discussion that will drill down into the findings of a groundbreaking AP Benchmarking Survey from International Accounts Payables Professionals (IAPP), American Productivity and Quality Center (APQC), and PRGX.
Our panelists will offer their insights on the findings, as well as advice on what AP operations should do to become top performers themselves. Topics covered will include automation strategies, AP best practices, and the business models with the biggest payoff. You might be surprised by the findings! There will be plenty of opportunity for attendees to ask questions and share their own strategies for AP effectiveness and efficiency.
Moderator:
Mark Brousseau, Brousseau and Associates
Panelists:
Tom Bohn, CEO, IAPP/IARP
Evert Hulleman, Managing Director, Advisory Services, PRGX USA, Inc.
Neville Sokol, Sr. Advisor Research Services, APQC
Join me Wednesday, May 12 at 3:15 for an interactive panel discussion that will drill down into the findings of a groundbreaking AP Benchmarking Survey from International Accounts Payables Professionals (IAPP), American Productivity and Quality Center (APQC), and PRGX.
Our panelists will offer their insights on the findings, as well as advice on what AP operations should do to become top performers themselves. Topics covered will include automation strategies, AP best practices, and the business models with the biggest payoff. You might be surprised by the findings! There will be plenty of opportunity for attendees to ask questions and share their own strategies for AP effectiveness and efficiency.
Moderator:
Mark Brousseau, Brousseau and Associates
Panelists:
Tom Bohn, CEO, IAPP/IARP
Evert Hulleman, Managing Director, Advisory Services, PRGX USA, Inc.
Neville Sokol, Sr. Advisor Research Services, APQC
FUSION Preview
Posted by Mark Brousseau
They say breakfast is the most important meal of the day.
In this case, it is critical to the future success of your AP operation.
Join IAPP CEO Tom Bohn and PRGX President and CEO Romil Bahl at 7:45 a.m. on Tuesday, May 11, as they unveil the results of a groundbreaking new tool for measuring the efficiency and effectiveness of AP operations.
The AP Productivity Index, developed by IAPP, PRGX and APQC, is the first tool of its kind to gauge the impact of AP metrics such as cost, staff productivity, turnaround time, and error rates.
During this breakfast presentation, Bahl will share the findings of the index, providing qualitative information on the practices, business models and attributes of AP Top Performers. The results may surprise you! Bahl also will arm CFOs and AP leaders with questions they can take back to their operations to identify areas for improvement. You'll also learn how you can participate in the index.
So set your alarm, and set your future success in motion!
They say breakfast is the most important meal of the day.
In this case, it is critical to the future success of your AP operation.
Join IAPP CEO Tom Bohn and PRGX President and CEO Romil Bahl at 7:45 a.m. on Tuesday, May 11, as they unveil the results of a groundbreaking new tool for measuring the efficiency and effectiveness of AP operations.
The AP Productivity Index, developed by IAPP, PRGX and APQC, is the first tool of its kind to gauge the impact of AP metrics such as cost, staff productivity, turnaround time, and error rates.
During this breakfast presentation, Bahl will share the findings of the index, providing qualitative information on the practices, business models and attributes of AP Top Performers. The results may surprise you! Bahl also will arm CFOs and AP leaders with questions they can take back to their operations to identify areas for improvement. You'll also learn how you can participate in the index.
So set your alarm, and set your future success in motion!
Tuesday, March 16, 2010
The 6 Levels of Customer Engagement
Posted by Mark Brousseau
Is your company a great innovator? It's a tricky question. If you interrogate your sales team a couple of times a year, then bombard the marketplace with new "solutions" to customer problems, you might assume the answer is yes. After all, you are giving your company's product developers a real workout. But if you're merely practicing the R&D equivalent of what the military calls "spray and pray," you're wasting time and money. (Can you afford either right now?) According to product development guru Dan Adams, the true litmus test is customer engagement.
"Too many companies fail to factor the customer into their innovation efforts," says Dan Adams, the author of New Product Blueprinting: The Handbook for B2B Organic Growth. "Oh, they may half-heartedly solicit customer input—in a 'You do need this product, right?' kind of way—but they don't really listen to it. They don't let customers drive the process. And that's too bad, because if they don't engage customers directly, aggressively, and objectively, they're going to get sluggish results."
Adams cites a massive study, "The Global Innovation 1000," undertaken by Booz Allen Hamilton. Through it, they studied 84 percent of the planet's corporate R&D spending. The researchers identified several distinct innovation strategies, but uncovered one universal factor that led to success: "Companies that directly engage their customers had superior results regardless of innovation strategy."
And not just a little bit superior, notes Adams. A lot superior. Those companies that used direct customer engagement while innovating—vs. indirect customer insight—enjoyed the following financial gains:
1) Profit Growth: Operating income growth rate that was three times higher.
2) Shareholder Return: Total shareholder return that was 65 percent higher.
3) Return on Assets: Return on assets that was two times higher.
So what do you do with this information? For starters, says Adams, if you're in a conversation about your company's innovation and nobody's talking about the customer, realize something might be very wrong.
"To put it in terms of this study, your company might be practicing 'indirect customer insight' instead of 'direct customer engagement,'" he explains. "This is a kind way of saying, 'We've lost track of who our innovation is supposed to help.'"
Adams says he's spent the better part of a decade helping B2B suppliers engage their customers in the innovation process. During this time he's observed six distinct levels of customer engagement during product development:
Level 1: The Conference Roomers: If you're innovating at the lowest level, you decide what customers want around your conference room table. Internal opinions determine the design of your next new product. As you might guess, this isn't very effective.
Level 2: The Expert Askers: At the next level, you poll your sales force, tech service dept., and other internal experts to determine customer needs. This is better than Level 1—because more voices are heard—but still too "internal."
Level 3: The Customer Surveyors: Companies at this level use surveys and polls to ask customers what they want. This begins to shake out internal biases... but doesn't deliver much in the way of deep insight.
Level 4: The Qualitative VOC-ers: If you're at this level, you send out interview teams that meet with customers to learn what they want. This is a quantum leap from VOO (voice of ourselves) to VOC (voice of the customer).
Level 5: The Quantitative VOC-ers: The problem with just qualitative VOC is that people hear what they want to hear. Companies that move beyond it to Level 5 get far more objective customer input. Yes, quantitative feedback drives out assumptions, bias, and wishful thinking.
Level 6: The B2B VOC-ers: Companies at this level really, truly get it. They know that unlike end-consumers, B2B customers are knowledgeable, rational, and interested. B2B-optimized interview methodology fully engages them to take advantage of this reality.
What do you think?
Is your company a great innovator? It's a tricky question. If you interrogate your sales team a couple of times a year, then bombard the marketplace with new "solutions" to customer problems, you might assume the answer is yes. After all, you are giving your company's product developers a real workout. But if you're merely practicing the R&D equivalent of what the military calls "spray and pray," you're wasting time and money. (Can you afford either right now?) According to product development guru Dan Adams, the true litmus test is customer engagement.
"Too many companies fail to factor the customer into their innovation efforts," says Dan Adams, the author of New Product Blueprinting: The Handbook for B2B Organic Growth. "Oh, they may half-heartedly solicit customer input—in a 'You do need this product, right?' kind of way—but they don't really listen to it. They don't let customers drive the process. And that's too bad, because if they don't engage customers directly, aggressively, and objectively, they're going to get sluggish results."
Adams cites a massive study, "The Global Innovation 1000," undertaken by Booz Allen Hamilton. Through it, they studied 84 percent of the planet's corporate R&D spending. The researchers identified several distinct innovation strategies, but uncovered one universal factor that led to success: "Companies that directly engage their customers had superior results regardless of innovation strategy."
And not just a little bit superior, notes Adams. A lot superior. Those companies that used direct customer engagement while innovating—vs. indirect customer insight—enjoyed the following financial gains:
1) Profit Growth: Operating income growth rate that was three times higher.
2) Shareholder Return: Total shareholder return that was 65 percent higher.
3) Return on Assets: Return on assets that was two times higher.
So what do you do with this information? For starters, says Adams, if you're in a conversation about your company's innovation and nobody's talking about the customer, realize something might be very wrong.
"To put it in terms of this study, your company might be practicing 'indirect customer insight' instead of 'direct customer engagement,'" he explains. "This is a kind way of saying, 'We've lost track of who our innovation is supposed to help.'"
Adams says he's spent the better part of a decade helping B2B suppliers engage their customers in the innovation process. During this time he's observed six distinct levels of customer engagement during product development:
Level 1: The Conference Roomers: If you're innovating at the lowest level, you decide what customers want around your conference room table. Internal opinions determine the design of your next new product. As you might guess, this isn't very effective.
Level 2: The Expert Askers: At the next level, you poll your sales force, tech service dept., and other internal experts to determine customer needs. This is better than Level 1—because more voices are heard—but still too "internal."
Level 3: The Customer Surveyors: Companies at this level use surveys and polls to ask customers what they want. This begins to shake out internal biases... but doesn't deliver much in the way of deep insight.
Level 4: The Qualitative VOC-ers: If you're at this level, you send out interview teams that meet with customers to learn what they want. This is a quantum leap from VOO (voice of ourselves) to VOC (voice of the customer).
Level 5: The Quantitative VOC-ers: The problem with just qualitative VOC is that people hear what they want to hear. Companies that move beyond it to Level 5 get far more objective customer input. Yes, quantitative feedback drives out assumptions, bias, and wishful thinking.
Level 6: The B2B VOC-ers: Companies at this level really, truly get it. They know that unlike end-consumers, B2B customers are knowledgeable, rational, and interested. B2B-optimized interview methodology fully engages them to take advantage of this reality.
What do you think?
Friday, January 22, 2010
7 Deadly Sins that Stunt Corporate Organic Growth
Posted by Mark Brousseau
You already know that organic growth makes for a stronger company. In today's tough economy it just makes sense to grow from within by developing outstanding products and services that win over new customers and keep current ones coming back. (The alternatives are to grow via debt financing or an army of flush-with-cash buyers on a spending spree—and clearly, neither is easy to come by these days!) Problem is, your competitors are playing by the same rules. But according to Dan Adams, you can outwit them...simply by putting a halt to the mistakes you (and they) are making right now.
"Unless your company has smarter employees, some inherent unassailable advantage, or a markedly different approach to satisfying customers, those competitors always seem to throttle your growth," notes Adams. "But what if you and your competitors were committing some serious mistakes that stunt organic growth—and you corrected them? Wouldn't that be enough to propel you to the front of the line?"
It makes sense. And Adams should know: He has spent his career helping some of the largest business-to-business companies in the world overcome the obstacles that clog up their organic growth engines—the ability 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.
"In 20 years the common mistakes B2B companies make will be as glaring as trying to improve quality with inspectors rather than statistics," he says. "Correct them now and you'll enjoy a substantial head start on years of healthy organic growth."
Adams identifies the seven deadly sins that too many B2B companies commit:
Sin #1. Imagining customers' needs in your conference rooms. Does your new product process begin with the word "idea," perhaps with a light bulb next to it? So whose idea is it: yours or your customers? Unfortunately, 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!
"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 B2B 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."
Sin #2. Relying on sales reps 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 B2B 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.
Sin #3. Counting on just a few VOC experts. Some companies rely on a handful of internal VOC experts to interview customers. You'll do far better training a critical mass of employees—who routinely interact with customers—to gather customer needs. Keep your VOC experts as coaches and trainers, but implement "VOC for the masses." You'll overwhelm competitors by turning a trickle of customer feedback into a torrent.
Sin #4. Using hand-me-down consumer goods methods. "Traditional VOC methods rely on questionnaires, tape recorders, and post-interview analyses," says Adams. "That's fine for consumer goods, but your B2B customers are insightful, rational, interested, and fewer in number. They're smart and will make you smarter if you engage them in a peer- to-peer dialogue. Use a digital projector, let them lead you to their areas of interest, probe with skill, and you'll be shocked at how much you'll learn you never knew."
Sin #5. Gathering only qualitative customer feedback. "I once had a new client who came to me extremely frustrated," recalls Adams. "He had spent months interviewing customers, only to hear his boss say, 'Nah, I don't think they want that; they want this.' Unfortunately, interviewers often hear want they want to hear... and then parade some customer quotes for support."
What you need, adds Adams, is quantitative data, which measure customer importance and satisfaction on key outcomes. Skip quantification and your new product will be based on assumptions, bias, and wishful thinking.
Sin #6. Listening only to immediate customers. Unlike B2C producers, your product might be part of your customers' products, your customers' customers' products, and so on. It's a mistake to interview only your direct customers, because they are usually unable or unwilling to disclose downstream customers' deepest needs. Also, B2C producers assign "one vote" per consumer...while you need to weight the buying power and value chain position of downstream customers.
Sin #7. Ignoring competitors when you design your product. "I find most product development processes are far too casual—and late—in assessing competitive offerings," says Adams. "Your new product makes a lot of money only if two conditions are satisfied: a) it offers significant value to customers, and b) customers cannot get this value elsewhere. Interviews tell you only about Condition A. You need side-by-side testing to learn about Condition B. This allows you to attack competitive weak spots, avoid getting blind-sided, and optimize pricing."
So why is it so important to focus so intensely upon customer needs? Consider three points, says Adams: First, the average new product success rate is only one in four. Over 30 years of research says the number one reason is inadequate market understanding.
Second, the "how" continues to get easier than the "what." You have twin goals of understanding what your customers want, and then how to satisfy them with your solutions. In these days of open innovation and global access to technology, the "how" is easier than it's ever been...if you have a solid grasp of the "what."
Finally, you reap benefits beyond good product design when you use respectful peer-to-peer interviews. You engage customers in the design process, which primes them to buy your product later.
"Our clients often enjoy benefits well before product launch," says Adams. "Their interviews cast them as caring, competent suppliers, so they have a better shot at other near-term business.
"Never forget that relationship building is everything," he adds. "We're living in an age where anyone, anywhere on the globe, at any time can start a business that competes with yours. By engaging customers in a respectful peer-to-peer dialogue and genuinely soliciting their ideas, you position yourself as a valuable partner and not just a vendor—and that in and of itself is a reason to stick with you."
What do you think? Post your comments below.
You already know that organic growth makes for a stronger company. In today's tough economy it just makes sense to grow from within by developing outstanding products and services that win over new customers and keep current ones coming back. (The alternatives are to grow via debt financing or an army of flush-with-cash buyers on a spending spree—and clearly, neither is easy to come by these days!) Problem is, your competitors are playing by the same rules. But according to Dan Adams, you can outwit them...simply by putting a halt to the mistakes you (and they) are making right now.
"Unless your company has smarter employees, some inherent unassailable advantage, or a markedly different approach to satisfying customers, those competitors always seem to throttle your growth," notes Adams. "But what if you and your competitors were committing some serious mistakes that stunt organic growth—and you corrected them? Wouldn't that be enough to propel you to the front of the line?"
It makes sense. And Adams should know: He has spent his career helping some of the largest business-to-business companies in the world overcome the obstacles that clog up their organic growth engines—the ability 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.
"In 20 years the common mistakes B2B companies make will be as glaring as trying to improve quality with inspectors rather than statistics," he says. "Correct them now and you'll enjoy a substantial head start on years of healthy organic growth."
Adams identifies the seven deadly sins that too many B2B companies commit:
Sin #1. Imagining customers' needs in your conference rooms. Does your new product process begin with the word "idea," perhaps with a light bulb next to it? So whose idea is it: yours or your customers? Unfortunately, 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!
"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 B2B 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."
Sin #2. Relying on sales reps 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 B2B 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.
Sin #3. Counting on just a few VOC experts. Some companies rely on a handful of internal VOC experts to interview customers. You'll do far better training a critical mass of employees—who routinely interact with customers—to gather customer needs. Keep your VOC experts as coaches and trainers, but implement "VOC for the masses." You'll overwhelm competitors by turning a trickle of customer feedback into a torrent.
Sin #4. Using hand-me-down consumer goods methods. "Traditional VOC methods rely on questionnaires, tape recorders, and post-interview analyses," says Adams. "That's fine for consumer goods, but your B2B customers are insightful, rational, interested, and fewer in number. They're smart and will make you smarter if you engage them in a peer- to-peer dialogue. Use a digital projector, let them lead you to their areas of interest, probe with skill, and you'll be shocked at how much you'll learn you never knew."
Sin #5. Gathering only qualitative customer feedback. "I once had a new client who came to me extremely frustrated," recalls Adams. "He had spent months interviewing customers, only to hear his boss say, 'Nah, I don't think they want that; they want this.' Unfortunately, interviewers often hear want they want to hear... and then parade some customer quotes for support."
What you need, adds Adams, is quantitative data, which measure customer importance and satisfaction on key outcomes. Skip quantification and your new product will be based on assumptions, bias, and wishful thinking.
Sin #6. Listening only to immediate customers. Unlike B2C producers, your product might be part of your customers' products, your customers' customers' products, and so on. It's a mistake to interview only your direct customers, because they are usually unable or unwilling to disclose downstream customers' deepest needs. Also, B2C producers assign "one vote" per consumer...while you need to weight the buying power and value chain position of downstream customers.
Sin #7. Ignoring competitors when you design your product. "I find most product development processes are far too casual—and late—in assessing competitive offerings," says Adams. "Your new product makes a lot of money only if two conditions are satisfied: a) it offers significant value to customers, and b) customers cannot get this value elsewhere. Interviews tell you only about Condition A. You need side-by-side testing to learn about Condition B. This allows you to attack competitive weak spots, avoid getting blind-sided, and optimize pricing."
So why is it so important to focus so intensely upon customer needs? Consider three points, says Adams: First, the average new product success rate is only one in four. Over 30 years of research says the number one reason is inadequate market understanding.
Second, the "how" continues to get easier than the "what." You have twin goals of understanding what your customers want, and then how to satisfy them with your solutions. In these days of open innovation and global access to technology, the "how" is easier than it's ever been...if you have a solid grasp of the "what."
Finally, you reap benefits beyond good product design when you use respectful peer-to-peer interviews. You engage customers in the design process, which primes them to buy your product later.
"Our clients often enjoy benefits well before product launch," says Adams. "Their interviews cast them as caring, competent suppliers, so they have a better shot at other near-term business.
"Never forget that relationship building is everything," he adds. "We're living in an age where anyone, anywhere on the globe, at any time can start a business that competes with yours. By engaging customers in a respectful peer-to-peer dialogue and genuinely soliciting their ideas, you position yourself as a valuable partner and not just a vendor—and that in and of itself is a reason to stick with you."
What do you think? Post your comments below.
Monday, May 25, 2009
Ameriprise Emphasizes Process Improvement
By Mark Brousseau
As the economic slowdown drags on, many operations are looking for ways to reduce expenses and improve productivity. Ameriprise Financial, Inc. is one such organization.
“We have had a long-term strategy of process improvement and innovation,” explained Juan Paz, director, Document and Payment Operations, Service Delivery New Business and Transaction Services, for Ameriprise Financial. “This has paid off big time for us during the economic slowdown. We have achieved new efficiencies, which have allowed us to decrease costs and significantly reduce staff through attrition.”
During the recession, Ameriprise has adjusted on-shore and off-shore staffing based on business volumes and process re-engineering, Paz noted, and it has instituted "heavy" cross-training to provide support across business units, and deploy staff on-demand.
Paz said that Ameriprise also has a strong performance management process with solid performance measurements. This has kept the organization’s productivity and quality high, and assisted in rewarding and retaining high performing staff members. “We have a strong value-based company with an ‘It begins with me’ attitude. We would not have been as successful without the commitment of our associates.”
Paz added that Ameriprise also makes a conscientious effort to invest in technology that will yield the highest payback for the investment. The organization typically looks for projects that will provide a six-month return on investment, he said. From a cultural standpoint, Ameriprise also places great emphasis on its employees having a customer service orientation.
“Together, these initiatives have made us very successful and allowed us to grow and mitigate risk, while keeping us profitable,” Paz said.
What is your organization doing to control operations expenses? Post your comments below.
As the economic slowdown drags on, many operations are looking for ways to reduce expenses and improve productivity. Ameriprise Financial, Inc. is one such organization.
“We have had a long-term strategy of process improvement and innovation,” explained Juan Paz, director, Document and Payment Operations, Service Delivery New Business and Transaction Services, for Ameriprise Financial. “This has paid off big time for us during the economic slowdown. We have achieved new efficiencies, which have allowed us to decrease costs and significantly reduce staff through attrition.”
During the recession, Ameriprise has adjusted on-shore and off-shore staffing based on business volumes and process re-engineering, Paz noted, and it has instituted "heavy" cross-training to provide support across business units, and deploy staff on-demand.
Paz said that Ameriprise also has a strong performance management process with solid performance measurements. This has kept the organization’s productivity and quality high, and assisted in rewarding and retaining high performing staff members. “We have a strong value-based company with an ‘It begins with me’ attitude. We would not have been as successful without the commitment of our associates.”
Paz added that Ameriprise also makes a conscientious effort to invest in technology that will yield the highest payback for the investment. The organization typically looks for projects that will provide a six-month return on investment, he said. From a cultural standpoint, Ameriprise also places great emphasis on its employees having a customer service orientation.
“Together, these initiatives have made us very successful and allowed us to grow and mitigate risk, while keeping us profitable,” Paz said.
What is your organization doing to control operations expenses? Post your comments below.
Friday, November 7, 2008
Users Focused on Productivity
By Mark Brousseau
The downturn in the economy has end-users looking at capture solutions to help eliminate the pain from their production environments, says Craig Laue (claue@abbyyusa.com), eastern regional manager, ABBYY USA.
Laue spoke during AIIM's 33rd Annual Document Management Service Providers Executive Forum in Austin last week.
"Today's economy does not permit end users to think about adding head count," Laue says. However, users are being challenged by increasing costs for managing and processing content: increased amounts of content, tighter regulatory compliance standards, new workload demands for information sharing, and higher customer demands. "That's why they are looking at capture solutions," Laue says.
As users begin evaluating capture solutions, Laue recommends that they come to the table with their vision for what they are looking to get out of the technology. Some considerations: indexing, full-text search capabilities, customer access to information, image and data sharing and collaboration, and eliminating duplication.
What do you think? Post your comments below.
The downturn in the economy has end-users looking at capture solutions to help eliminate the pain from their production environments, says Craig Laue (claue@abbyyusa.com), eastern regional manager, ABBYY USA.
Laue spoke during AIIM's 33rd Annual Document Management Service Providers Executive Forum in Austin last week.
"Today's economy does not permit end users to think about adding head count," Laue says. However, users are being challenged by increasing costs for managing and processing content: increased amounts of content, tighter regulatory compliance standards, new workload demands for information sharing, and higher customer demands. "That's why they are looking at capture solutions," Laue says.
As users begin evaluating capture solutions, Laue recommends that they come to the table with their vision for what they are looking to get out of the technology. Some considerations: indexing, full-text search capabilities, customer access to information, image and data sharing and collaboration, and eliminating duplication.
What do you think? Post your comments below.
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