Fortnightly News Magazine for Busy Managers, Directors & Entrepreneurs.
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January 13th, 2010Book Review: The Project Manager
December 3rd, 2009
Mastering The Art Of Delivery
By Richard Newton
This book tells all about how to see a project through, says George Absi
Project management is a vital skill which should be among every healthcare manager’s attributes. It can dramatically benefit an organisation by contributing to cost savings, more efficient and effective working, creation and change. Richard Newton, who is widely renowned and respected in the field of project management, shares his experience in this easy to read book. The aim is to give the reader skills to transform themselves from “basic” to “advanced” level. This book, unlike many in the field, does not contain theories and concepts, but concentrates solely on the “hard” and “soft” skills of project management such as communication and personal styles. It is delivery and outcome focused with useful tips and advice throughout. It also contains a quick reference section with a summary of its content. The following topics are covered:
- What is successful delivery?
- Communications
- What actually is your project?
- How to get your project started
- Optimal personal styles for project managers
- Managing the project
- Getting the best out of your project team.
This book covers topics highly relevant to managers in the health service. The subjects are approached with logical sequence, are easy to follow and have high practical value. I recommend it to anyone wishing to improve their ability to deliver in project management. George Absi is clinical audit manager at Hertfordshire Community Health Services. This feature originally appeared in http://www.hsj.co.uk/resource-centre/book-reviews/book-review-the-project-manager/5007810.article
Buy the book: The Project Manager Mastering The Art Of Delivery
Book Review: Entrepreneurship, Innovation, And The Growth Mechanism Of The Free-enterprise Economies Entrepreneurship, Innovation, And The Growth Mechanism Of The Free-enterprise Economies
December 3rd, 2009
This masterpiece from the Princeton University Press is an amalgamation of some of the most intelligent minds in economics. The contributors include: Eytan Sheshinski, Robert J. Strom, William J. Baumol, Robert M. Solow, Kenneth J. Arrow, Michael M Weinstein, Melissa A. Shilling, Corey Phelps, Sylvia Nasar, Boyan Jovanovic, Peter Rousseau, Edward N. Wolff, Deepak Somaya, David J. Teece, Naomi R. Lamoreaux, Kenneth L. Sokoloff, Yochanan Shachmurove, Ralph E. Gomory, Jonathan Eaton, Samuel S. Kortum, Alan S. Blinder, Robert J. Shiller, Burton G. Malkiel, and Edmund S. Phelps. These brilliant minds address the micro- and macroeconomics of growth, the importance of independent and corporate entrepreneurs and innovators, the employment of technology and the patent system, innovation and trade, and the relationship between innovation and finance.
Arrow and Solow provide the foundation for the remainder of the book by explaining the micro and macro conditions that are conducive to growth. They explain how particular markets and knowledge influence micro and macroeconomics and that the legal system of licensing and patents is the major institution of property rights. Competition is discussed as an incentive to create further innovations which lead to an “optimal portfolio of innovations”.
Nasar, Jovanovic, and Rousseau explore the continuing role of indep
endent innovators and entrepreneurs. They focus on the flexibility of new firms over the older more established companies. They also provide data on Initial Public Offerings (IPOs) and touch on the optimal timing for initiating an IPO. Explanation is given as to how some firms exploit irrational exuberance leading up to and during their IPO, yielding themselves significant amounts of capital. They conclude that the small younger firms thrive when fast technological change exists, where the older larger firms do better when it is “business as usual”.
The section on technology and the patent system focuses on the opportunities and challenges in multi-invention innovation. It explains how the patent owner may need good negotiating skills when dealing with a multi-invention innovation. Solutions are also provided for patent owners and their potential infringers. This section explores the costs associated with licensing and where they are most appropriate. The establishment of the U.S. patent system is also discussed along with the growth and trading of patents in
more recent years.
“Innovation and Its Effects on International Trade” is a section outlining how the global economy plays a growing dynamic role in innovation. Labor, capital, and knowledge are brought to the table by multiple countries creating a synergistic fuel for bringing new products to market. Next, the topic of research is discussed, where the wealthier countries are more heavily invested. It also explains the pitfalls of two countries pursuing an identical technology, where opportunities and advantages can actually be eliminated.
Next, Blinder introduces chapters by Shiller and Malkiel. Shiller’s section explains “Radical Financial Innovations”. Here, Shiller discusses hedging and risk management performed by insurance firms. He indicates that imperfect risk sharing exists between income and consumption with
in and across countries. He then explains the innovations in home insurance and provides proposals to use price indexes that cannot be distorted by individuals.
Malkiel’s section focuses on the “Free-Market Innovation Machine”. He explores the importance of venture capital firms providing the key money and managerial support for innovation to become a reality. The dominance of U.S. venture capital over that of European finance is discussed in relation to IPOs. Malkiel also points out how the large amount of investment outlets leads to overinvestment and market bubbles.
Finally, Strom makes an introduction to be followed by Phelps and Sheshinski about free-market innovation and its relation to western European economies and the economic welfare of developing economies. Phelps touches on how the western European countries are failing to create a successful free-market of innovation. Sheshinski focuses on “Pharmaceutical Patenting in Developing Countries and R & D”. He analyzes competitive and monopolistic pricing strategies on global welfare, the economics of developing countries, and incentives for firms and industries to participate in R & D.
To conclude, I feel that this book is a great comprehensive collection of intelligent economic thinking and analysis. It reminds us of the importance of innovation in driving economic growth in our free-market economy. I would recommend it to anyone interested in this subject.
Thia feature originally appeared in http://seekingalpha.com/article/174797-book-review-entrepreneurship-innovation-and-the-growth-mechanism-of-the-free-enterprise-economies
Buy the book: Entrepreneurship Innovation And The Growth Mechanism Of The Free-enterprise Economies
Book Review: Making Sense of Change Management
October 15th, 2009
A Complete Guide To The Models, Tools And Techniques Of Organizational Change
Esther Cameron & Mike Green
Sixty years on from the creation of the NHS and 25 years on from the Griffiths report, the pace and complexity of change for staff, managers and patients show no signs of abating. If those years have taught us anything it is that there is no single approach, no standard tick box for how to manage change.
The subtitle to Cameron and Green’s informative book is “a complete guide to the models, tools and techniques of organizational change” and the text provides a wealth of knowledge on both the theory and application of change across organisations.
The first half of the book addresses the many frameworks for and approaches to change management in a considered but very readable way, including question sets for readers to reflect on their own situation as well as exploring the styles and skills needed to be a leader of change.
With the exception of a rather lightweight section on IT-based process change, which feels bolted on the end, the book’s strength for practising managers is in the second half, where the authors apply several of the approaches to specific types of change.
The sections on restructuring and mergers and acquisitions are strong and relevant to a public sector that often seems to announce structural change with little apparent planning of its impact.
Neither a deep academic textbook – although it is the core text for the accreditation group APMG’s Principles of Change Management certification – nor a superficial top 10 glossy business book, it is an accessible and thought provoking read.
Nick Mellors is lead consultant in change management with DBI Consulting.
This review was orinally featured on http://www.hsj.co.uk/resource-centre/best-practice/book-review-making-sense-of-change-management/5004728.article
Buy the book: Making Sense Of Change Management A Complete Guide To The Models Tools And Techniques Of Organizational Change
Book Review: Who’s Your Gladys?
October 15th, 2009
This recession has taught us all that consumers, just like employers, are in the driver’s seat. As a result, what we need now more than ever are creative solutions and top-notch emotional skills to enhance our chances for success.
Although it may have originally been intended as a case-book study for business owners, Who’s Your Gladys by Marilyn Suttle and Lori Jo Vest is a valuable handbook for any employee who wants to learn how to make him or herself indispensable in today’s environment.
Subtitled How to Turn Even the Most Difficult Customer into Your Biggest Fan, the book begins by reminding us that when customer dollars are scarce, “It’s the companies with exceptional customer service that weather the storm. If you want to keep customers coming back and happily recommending you to others, now is the time to ramp up your customer service to the highest possible level. Even when the economy gets back on track, those with extraordinary customer care enjoy the most profits.”
The Gladys in the title refers to a prickly, elderly woman who hired a moving company in Walled Lake, Mich., to move her into a retirement community. Known as a cranky complainer who was notoriously hard to please, the 87 year-old widow could have been a nightmare client when the company damaged a marble-topped table. But because “Professional Movers” treated her with patience, kindness and a determination to make her happy, she became a one-woman advertising agency, promoting the company that went out of its way to make her a satisfied customer.
Because everyone knew how picky Gladys could be, they paid attention when she had positive things to say, and “Professional Movers” is now the No. 1 choice of movers for her retirement center. Building that sort of referral base has helped the company’s sales improve by more than 40 percent in two years.
One of the best guidelines the book offers is the reminder — for employees and owners alike — that customers aren’t problems, they’re people. Really effective customer service often boils down to simply trying to make people happy, treating them kindly and offering the kind of service you would like to receive.
When we read about the employees at Paul Reed Smith Guitars we learn just how valuable a motivated, passionate work force can be. PRS has only been in business since 1985, but is considered the gold standard of guitar makers. Employees are reminded that everything they do ultimately has an impact on the brand, and treating customers with respect and distinction is part of the recipe for being successful. PRS guitars are pricey, and customer satisfaction is measured by “whether people are willing to pay you more for your products … Customers can fire the company at any time just by taking their business elsewhere.”
Singapore Airlines is another company whose customers happily pay more simply because they are treated so well. From serving a beverage, to arranging for ground transportation and accommodations when needed, Singapore Airlines has been named one of the world’s best airlines 19 of the past 20 years. It’s not surprising that its flight attendants spend almost five months in training when the industry standard is six weeks.
Another company that has invested heavily in customer satisfaction is ISCO Industries, which makes and distributes polyethylene piping. “Everyone at ISCO is vested in the company’s success. From the guy who loads the trucks to the woman who answers the phone, all ISCO employees attend the same meetings, have the same goals, and win together or lose together. Each employee is encouraged to think of him or herself as an entrepreneur or a business person.”
In short, customer service is all about:
- Seeing the positive qualities in a client with negative behavior;
- Showing compassion while your customers vent their emotions;
- Viewing challenging situations as opportunities to strengthen the customer relationship;
- Finding value in lessons learned from mistakes;
- Giving your customers what they need;
- and keeping your promises.
This review was originally featured in http://www.bizjournals.com/extraedge/consultants/winning_at_work/2009/10/05/
column172.html?market=portland
Buy the book: Who’s Your Gladys? How To Turn Even The Most Difficult Customer Into Your Biggest Fan
Book Review: Change By Design
October 15th, 2009
By Tim Brown
About halfway through Change by Design: How Design Thinking Transforms Organizations and Inspires Innovation, Tim Brown repeats Tom Peter’s much cited comment that “the MFA is the new MBA.” In doing so, however, he doesn’t fully endorse the sentiment. Instead Brown observes that the dynamic skills required in business share as much in common with the creativity required for a design practice as they do with the critical thinking required for the MBA.
On the back of the book jacket the author observes, “this is not a book by designers for designers, this is a book for creative leaders who seek to infuse design thinking into every level of an organization.” In that way it straddles the gulf between the MFA and the MBA. Clearly learning to draw is a far sight from learning how to run a discounted cash flow analysis and the skill set doesn’t overlap. We need both MFAs and MBAs. But the crux of what Brown is getting at is what McKinsey & Company referred to as the “T-Shaped” person, where the vertical axis represents the depth of the skill set that forms their core competency. Valuable design thinkers, however, “cross the T,” holding not only deep familiarity with their core role, but also a disposition for collaboration across enterprises.
A “design thinker” isn’t just an artist and isn’t just a number-cruncher. Instead they need to be knowledgeable enough about each to be conversant: to be a member not of a multidisciplinary team but of an interdisciplinary team.
If this all sounds a little like business-jargon-tinged self-help … well, it is. Business books tend to be written in a peculiar dialect somewhere between anecdote and allegory, and Change by Design is no exception. Perhaps owing to the Harvard Business School case method, it seems de rigeur in business books these days to present lessons as anecdotes about business interactions (e.g. Shimano’s core business of bicycle sprockets and derailleurs was flattening) followed an analysis of the market and the causes of said shift. At the “B-School” the initial case would be followed by rigorous debate and a written analysis of what the company should do to change its position. In Change by Design, the reader learns what solutions IDEO reached (e.g. returning to the comfort and familiarity of coasting bikes from childhood).
Regardless of the success of that coasting initiative, however, the real lesson is in the allegory as Brown provides that proves the centerpiece of the book: “The reason for the iterative, nonlinear nature of the journey is not that design thinkers are disorganized or undisciplined but that design thinking is an exploratory process; done right, it will inevitably make unexpected discoveries along the way, and it would be foolish not to find out where they lead.” Reading that, then, perhaps industrial designers should be thrilled; the processes that we learned for “needsfinding” and “directed research” truly are akin to the case method. Perhaps that’s what Peters was getting at after all.
But if Tim Brown was right, and this isn’t a book “by designers for designers,” what can we get out of it? The rigorous analytic thinking that MBAs learn in finance classes isn’t presented here. Instead we see the softer/touchier side of “inspiration, ideation, implementation” of which long-time prototypers and experimenters should already be aware. IDEO, however, has managed to out-business corporate America through design, so perhaps there’s something to be learned here. Ultimately, the difference between design and art is commerce and function, so most designers will eventually need to reach out or at least speak to corporate America.
Through his years as CEO of IDEO, Brown knows as well as anyone how to communicate with suits … even if he has an MFA. Consequently, while we (designers) may not be the target audience for the book, there is certainly something to be learned here for us to “cross the T” and speak to MBAs.
The first half of the book consists of multiple cases, from HBO to Marriott, that are all used to illustrate two core concepts: (1) The “design brief” and its inherent constraints make the design and (2) all design is “human centered” design, even if the people interviewed can’t articulate their concerns. Some anecdotes are stronger than others. For us to hear about Kristian Simsarian strapping a camera below his hospital gown and experiencing a hospital visit at the SSM DePaul Health Center on a gurney should be enough to send most designers out into the field.
Other commentary, like how Brown thinks it’s important to let workers know that it’s OK to fail seems like something that would be pinned to Dilbert’s cubicle wall, however true it may be. That said, Brown throws out a lot of concepts and a lot of anecdotes. Some are bound to stick for each reader. As he observed about Linus Pauling’s statement “To have a good idea, you must first have lots of ideas,” well, Linus Pauling won two Nobel Prizes.
The early portion of the book struggles with the stifling realities of the corporate American workplace, even unintentionally demonstrating how binding cubicle life can be. Upon learning that a company like Mattel needed to create a “retreat” so that cross disciplinary employees can have a “fun” space in which to collaborate, this reader wondered couldn’t help but wonder if it was that hard to have fun at a toy company, the rest of corporate America must be in trouble.
Clearly the MFA is more fun than the MBA, but the MBA drives the world, … and the economy. Perhaps there’s something horribly ill about corporate America and that’s what Brown is getting at. Either way, many of the case studies, even in their success, should serve as cautionary tales about the nature of corporate structure. Those of us who get our hands dirty, either with actual dirt and grease or with hot glue and Chartpak markers should be happy.
In the second half of the book called “Design Thinking Meets the Corporation,” Brown begins to tackle enormous, near-insurmountable problems. From treating Procter & Gamble’s ability to help housewives better clean their bathrooms in the early chapters, he lurches into the “big issues.” A short story illustrating Oral-B’s successful product launch of a toothbrush designed for the small and awkward hands of children, suddenly turns into an environmental parable when the lead designer of the toothbrush found one washed up on a beach in Mexico largely intact.
Although not discussed in detail in the book, IDEO has shifted focus in recent years to pay more attention to global human problems, and that’s a good thing. In the early pages, Brown talks about how important it is to have a well structured design brief in order to better frame the problem. In the latter pages, he even tackles the United Nations’ Millennium Development Goals like “Eradicating extreme poverty.”
After a short admission that statement is too broad to form an effective design brief, he reframes it immediately as a series of more specific initiatives like: “How might we enable poor farmers to increase the productivity of their land through simple, low-cost products and services?” These are not simple questions, but as Charles Eames responded, when asked how whether he came up with his lounge chair in a flash of insight, replied yes, “a kind of 30-year flash.” With people like Brown codifying design thinking, the tools are out there to solve our problems if a few people are willing to attack them with that sort of tenacity.
This review originally featured at http://www.core77.com/blog/book_reviews/book_review_change_by_design_by_tim_brown_14797.asp
Buy this book: Change By Design How Design Thinking Creates New Alternatives For Business And Society
Book review: High Commitment, High Performance
October 15th, 2009
How to Build A Resilient Organization for Sustained Advantage
Michael Beer
Jossey-Bass (2009)
Achieving a competitive advantage is nowhere near as difficult as sustaining one. Therein is a paradox that serves as the title of Marshall Goldsmith’s book: what got you here won’t get you there. Even more ominous, what got you here won’t keep you here. Hence the appropriateness of the subtitle selected for Beer’s book. What he shares is an abundance of observations, questions, issues, suggestions, and recommendations that are anchored in more than 40 years of real-world experience. In the Introduction, he refers to his quest to study and build high commitment, high performance (HCHP) organizations. What he provides is what he has learned about what works, what doesn’t, and the reasons why.
Written in collaboration with Russell Eisenstat and Nathaniel Foote, this volume provides a number of different perspectives and knowledge concerning several key disciplines that include strategic management, organization design, human resource management, culture and organization development, enterprise learning, and change initiatives. Beer observes, “Employing these diverse perspectives, I propose three paradoxical organizational outcomes needed to achieve sustained high performance [i.e. performance alignment, psychological alignment, and the capacity for learning and change], articulate five management levers for designing an organization to achieve these outcomes [i.e. leadership at all levels and in all areas, an effective learning and governance system, a strategic performance management system, an organizing system, and an HR system], and present a framework for change and its transformation.”
Here’s a key point: Obviously, there must be both high commitment at the senior executive level. Much more importantly, C-level executives and other supervisors must demonstrate – not only affirm — high performance. Otherwise, they cannot expect those for whom they are responsible to do so and their organization will not survive in its competitive marketplace, much less dominate it. Moreover, as Beer explains in the Epilogue, “CEOs and their top teams will have to engage their hands to design very different management practices, particularly with regard to the firm’s performance management and compensation systems. The former must enable hard-hitting, fact-based reviews of the business to achieve essential shirt-term profits in a way that does not compromise the firm’s larger purpose and its long-term performance. With regard to the latter, surely a shift away from incentives for annual profits to incentives tied to long-term performance (five to seven years) is in order.”
This review originally appeared on http://www.examiner.com/x-14678-Dallas-Business-Commentary-Examiner~y2009m9d1-Book-review-High-Commitment-High-Performance
Buy the book: High Commitment High Performance: How To Build A Resilient Organization For Sustained Advantage
Book Review: System’s Bitch
October 15th, 2009
By John Wright
Though I’ve never met the author, he is a long-time friend of someone in my family, which is how his book came into my hands.
Any man married to the same woman for the majority of the time that he’s been on the planet and who shepherded three daughters into the their adult lives with her… well, that man deserves to have his book read.
“The System’s Bitch” is a humorous take on Mr. Wright’s customer service experiences over the years. He writes with a straight-forward wit that makes getting through the book an easy and delightful process. His take on the world is one of common sense, and he asks why we put up with the things we do as the desirable quantity — the customer.
Convenience has swung from the customer to the business. In other words, the business now finds it convenient to charge more for less because we accept it as a bitch of “The System.”
I can relate to Mr. Wright because I have the worst customer service karma there is and I’ve not found what is supposed to be balancing it on the other side. For my bad traffic karma, I have good parking karma; makes sense, right? But, when my water gets shut off because the water utility changed their billing address and didn’t tell my Bank ePay, or DirecTV phantom charges me a buck here and a buck there for three straight months when my service was supposed to off while I was in the process of a move, or when my health insurance provider fails to charge my credit card and then sends me a letter, which by the time I receive it and respond my insurance has been canceled (you couldn’t pick up the phone and call me? Seriously, I pay YOU and you just let it cancel?)… well, I know what it’s like to be “The System’s Bitch.”
The only criticism that I have of the book is that it is fully intended to be a rant, as far as I can tell. And, although the squeaky wheel, when screaming, often gets greased, I don’t typically find favor in simply shouting… I always try to find a way to take one more step and relate to some way that we can make the world a better place, either through action or enlightenment.
So, let’s look for him to focus on the solutions instead of the problems in his next book!
This review originally appeared in http://blogcritics.org/books/article/book-review-the-systems-bitch-by/
Buy the book: System’s Bitch
Book Review: The New Community Rules: Marketing on the Social Web
October 14th, 2009
Tamar Weinberg
The explosion of social media can present daunting challenges to marketers. How have the rules of advertising changed? Are there specific rules for various online communities? Which networks best reach the widest audiences? Tamar Weinberg addresses these issues and more in The New Community Rules: Marketing on the Social Web, the latest O’Reilly guide to navigating this territory. By reading this book, companies and individuals wishing to enter this new world will gain a great deal of knowledge and ideas for utilizing social web tools.
Weinberg, an Internet marketing consultant and blogger, thoroughly explains the history of social networks, and describes key elements to a successful online marketing plan. Business owners and marketers with just a passing familiarity with sites such as Facebook, Twitter, Digg, and YouTube will find her descriptions clear and insightful. She provides numerous tips on using hidden tools on these sites to promote brands, enhance reputations, and network with customers. Even freelance writers and other individuals looking to develop a strong online presence should find her hints useful. Weinberg cites numerous case studies from companies illustrating how social media marketing can help — or potentially hurt — sales and customer relations.
The book’s structure moves from the general to specific, the first four chapters introducing the concept of social web marketing and providing advice as to goal-setting and devising online marketing plans. Weinberg then proceeds to specific social media tools, painstakingly describing blogs and microblogs social networks, wikis, social bookmarking, social news sites, and other media such as video and photo sharing sites, and podcasting. Drawing from these tools and definitions, she concludes with concrete advice on determining strategies (as well as continuing face-to-face networking). Everyone should read the appendix, “The Ultimate Social Media Etiquette Handbook,” a concise guide to correctly using social networking sites (and not offending fellow users).
The New Community Rules’s greatest strength, however, lies in its definition of social media marketing. The traditional paradigm has shifted, and Weinberg accurately describes the new: namely, companies and customers have a closer relationship. “Companies need to acknowledge that they can no longer easily control their messages,” she writes. “Marketers now have the ability to influence and cultivate the message through their own communication channels…but they are now contending with hundreds of thousands of customers who have a soundboard to articulate their own thoughts about the company and product offerings.” In other words, companies must consider online marketing as a two-way street, and must expect and encourage audience feedback and participation. Potential customers avoid direct sales pitches and instead search for “newsworthy content that the community as a whole believes is relevant to a wider audience.” Therefore, she concludes, the PR consultant must think of herself as a “community participant” rather than simply someone hired to craft press releases.
While Weinberg’s thoroughness is to be commended, others may find the book hard to digest in one sitting. The sheer amount of information provided may be overwhelming for those not accustomed to social media. In fact, at various points in the text, Weinberg states that some companies may want to hire consultants who are well-versed in social media and its customs. Establishing a strong online presence requires patience and many hours spent online, which may not be possible for all business owners. A companion book may be helpful for those seeking briefer answers to common questions. A full color, graphically eye-catching design would enable to readers to quickly consult the book for specific information rather than having to constantly read entire chapters for specific information.
Despite the layout, Weinberg’s New Community Rules: Marketing on the Social Web serves as an informative reference for devising marketing plans. Altruism, fostering relationships, giving back to the online community, and authenticity are the key words in social media marketing, and this book provides a thorough education in how these words have altered the business marketing world.
This review previously appeared in http://blogcritics.org/books/article/book-review-the-new-community-rules1/
Buy the book: New Community Rules: Marketing On The Social Web
Book Review: Innovation Management: Strategies, Implementation, and Profits
October 14th, 2009
Allan Afuah
Oxford University Press (2002)
In this second edition, Afuah develops in much greater depth many of the same concepts introduced in the previous edition (1998) but changed some of the terminology and rearranged the sequence of material while separating strategy issues from those concerning implementation and adding an entirely new chapter, “The Internet: A Case in Technological Change” (Chapter 16). He also incorporates many of the readers’ reactions and suggestions generated by the earlier edition. However, he retains the same seven themes that “underpin the synthesis and intregrative framework” that can allow students of innovation “to get their minds around this increasingly important field – a framework that allows them to build on and make cause-and-effect predictions.” That is again his goal in this second edition and he achieves it fully.
Opinions are mixed as to whether or not it is possible to “manage” innovation. Perhaps some of the disagreements have to do with how manage is defined. Afuah seems to be among those (I among them) who believe that it is possible to establish and then manage an environment in which innovation can flourish, and it is also possible to manage the adoption, production, marketing, sales, and distribution of products that result from innovative thinking. In his introduction, Afuah poses a series of 17 questions and then answers them, devoting a separate chapter to each. Following Chapter 1, “Introduction and Overview,” he organizes his material as follows: Part I (Chapters 2-4): Fundamentals (e.g. models of innovation); Part II (Chapters 5-10): Strategizing (e.g. strategies for sustaining profits); Part III (Chapters 11 and 12): Implementation (e.g. of the decision to adopt); and Part IV (Chapters 13-17): Globalization (e.g. the role of national governments). Afluah thinks in terms of an entire enterprise, one whose strategy is based on several key factors that he examines in Part II.
Readers will also appreciate the two appendices, “Dominant Designs and Standards” and “Some Organizational Designs.” They and Afuah’s thoughtful responses to the 17 questions during which he develops the seven themes will provide a wealth of information and counsel but presumably he would be the first to agree that it would be a fool’s errand for any of his readers to attempt to implement all of his recommendations.
This review previously appeared in: http://www.examiner.com/x-14678-Dallas-Business-Commentary-Examiner~y2009m7d20-Book-review-Innovation-Management
Book Review: Outpacing the Competition
October 14th, 2009
by Robert L. Cantrell
(Wiley, John & Sons, Inc.)
Patents on their own are just pieces of paper (with a fancy seal). What really matters, is how you make use of patent rights. Here, the author has provided a practical guide to the use of patents as effective business tools. This book is not an introduction to patent law but is a thorough discussion of key approaches to make intellectual property serve a company’s business plan and goals.
In Outpacing the Competition, Robert Cantrell sets out that a patent strategy is composed of decision cycles that include:
- Access (understand the situation);
- Decide (choose a course of action); and
- Act (execute the decision)
Cantrell describe the situation as this:
Decision cycles are not one-pass-through events. They are continuous cycles of assess, decide, and act, whereupon each action leads to new assessments, new decisions, and new actions, the complexity of which increases proportionally to the ambiguity of the objective.
The main body of the book then describes using the decision cycle as the primary guideline for how an organization should plan its patent strategy and organize its intellectual property. Whether your organization is IP driven or not (and it probably is even if you don’t know it), there are lots of lessons here.
With the changing business landscape, assessing the situation requires understanding that all successful enterprises have a central idea that defines the company, its centers of excellence. As a model example, Cantrell shows how Federal Express set one of the best descriptions of a central idea set out in its tag line, “When it absolutely, positively has to be there overnight.®”
Federal Express patents are oriented around fulfilling the promise of this idea. A review of Federal Express patents will show that they describe packaging, labeling, and logistic methods oriented toward getting packages from point A to point B proficiently and at high (i.e., overnight) speed. It’s entire intellectual property suite — the brand name, the trademarked tag line, the patents, plus trade secrets … — are all oriented toward delivering that promise.
Can you say the same for your business?
Drawing heavily from Sun Tzu’s The Art of War, a Chinese military treatise written in the 6th century BC, Cantrell shows how to use patents to your advantage. In one example, asymmetry is used as a strategic tool to take actions that line up a companies strengths against a competitors weaknesses, the idea being to engage a competitor on your own terms.
We highly recommend that you read Outpacing the Competition. You are sure to walk away with insights into business action that go well beyond just intellectual property strategies.
Robert L. Cantrell is a professional strategist and Director of Consulting at Landon IP, Inc. He has managed multiple consulting and analytical engagements across a wide range of technology sectors that include the communications, electronics, medical devices, pharmaceuticals, energy, and consumer goods fields. He is on the faculty of Patent Resources Group (PRG).
References: This review previously appeared in http://www.patentbaristas.com/archives/2009/07/20/book-review-monday-outpacing-the-competition/
Buy the book: Outpacing The Competition
Phil Turtle, ManagementBooks MD, to speak online about “Protecting your brand image in the Web 2.0 jungle” Thursday 8Oct09 at 3pm
October 5th, 2009Phil Turtle will be one of three expert speakers covering the problems of protecting brand image in the social media environment
| Date: 8 October 2009, 3:00pm BST (not GMT as it says on the InfoSecurity website (that’s being amended)) Duration: 1 hoursOrganised by InfoSecurity.com |
Webinar: – Protecting your brand image in the Web 2.0 jungle
Web 2.0 services, including wikis, social networking portals and blogs, are powerful drivers in the B2B and B2C communications channel – for many companies, they open up new doors as never before.
But these same Web 2.0 services also create more than a few branding and security headaches. not least in reputational terms.
It only takes one slip to trigger a viral crusade against your organisation that can significantly dent your company’s reputation.
Many companies – mindful of this issue – have forbidden the use of social networking and other Web 2.0 services by their employees, but doing so means they miss out on the plentiful benefits that such services bring to the business table.
Join us for an entertaining and thought-provoking webinar in which a team of senior professionals look at the brand image and reputation issues that Web 2.0 services engender, and explain some of the solutions that are now available.
This webinar will:
- Help you understand the viral power that drives Web 2.0 services.
- Explain some of the problems these services create.
- Detail the solutions to the reputational issues caused.
- Educate you to take a fresh look at reputational security controls.
This webinar is for:
- IT managers who are forward-thinking in their approach to Web 2.0 control issues
- Managers wanting to better understand the solutions to reputational threats from Web 2.0 services
- Anyone wanting to gain an edge in Web 2.0 control issues
The Mary Kay Way: Timeless Principles from America’s Greatest Woman Entrepreneur
October 1st, 2009
Mary Kay Ash
John S. Wiley & Son (2008)
This is a reissue of a volume that was first published in 1984 to which personal comments from Independent National Sales Directors from throughout the world were added, accompanying a Foreword by Mary Kay Ash’s grandson, Ryan Rogers. Credit Yvonne Pendleton with a brilliant job of editing all of the material in this updated edition. As with so many other prominent CEOs, Mary Kay learned most (if not all) of what she considers to be the most valuable business lessons from negative experiences, both hers and others’. Prior to opening the doors to Mary Kay Cosmetics in a 500-square-foot store front in Dallas (Friday, September 13, 1963), she had been the victim of all manner of gender biases, broken promises, betrayals of confidence, etc. From the beginning of her new company, she included The Golden Rule among its core principles. The policies and procedures she formulated all shared the same objective: To create a workplace culture that nourishes and supports everyone’s personal as well as professional development. The only limits on that development would be self-imposed. Mary Kay didn’t stop there, however. She was determined to do everything humanly possible to help her associates to reject or eliminate such limits. She also expected everyone else to provide such help to those in need of it.
To guide and inform such supportive efforts, she devised eight management principles:
1. Praise People to Success
2. Tear Down That Ivory Tower
3. Be a Risk-Taker
4. Be Sales-Oriented
5. Be a Problem-Solver
6. Create a Stress-Free Workplace
7. Develop and Promote People from Within
8. Keep Business in Its Proper Place.
When the Independent National Sales Directors were surveyed prior to publication of this edition, they identified #1, #7, and #8 as having had the greatest impact on their personal as well as professional development and were most critical. They also ranked the chapters of this book in terms of their importance to them and four of the 23 chapters emerged: “Help Others Get What They Want – and You’ll Get What You want” (Chapter 12) ” “Golden Rule Management” (Chapter 1), “The Invisible Sign” (Chapter 3), and “The Speed of the Leader Is the Speed of the Gang” (Chapter 9). “Whenever I meet someone,” Mary Kay once explained, “I try to imagine him or her wearing an invisible sign that says: MAKE ME FEEL IMPORTANT! I respond to this sign immediately, and it works wonders.” Apparently it has also done so for others in her organization. The company began with nine Mary Kay Independent Beauty Consultants; in 1984 when this book was first published, there were 200,000 in its sales force; today, there is a worldwide sales force of 1.8 million whose wholesale sales generate $2.4 billion.
The Accountable Leader: Developing Effective Leadership through Managerial Accountability
October 1st, 2009
Brian Dive
Kogan Page (2008)
In this book, Dive explains “how the structure of organizations has a profound impact on the ability of managerial leaders to perform their job effectively. And how organization design has a huge impact on the individual well-being and happiness of those people earmarked for future promotion, so much so that talented staff may well leave an organization rather than suffer the effects of operating inside a poorly designed organization.”
I agree with Dive that organizations must create an appropriate culture within which most (if not all) of those involved are actively and positively engaged, doing all they can to involve others who are passively engaged. As for the “bad apples,” troublemakers, chronic complainers, subversives, etc., there must be — Dive’s term — “clear accountability” for their attitude and/or behavior. Also for their supervisors. There is a direct link between a transparent organizational structure and effective leadership. What Warren Bennis characterizes as a “culture of candor” must have both.
Dive carefully organizes his material within three Parts. First (in Chapters 1-4), Brian Dive’s stated objective is to explain how to develop effective leadership through managerial accountability. He achieves that objective by providing a cohesive, comprehensive, and cost-effective process based on a combination of extensive research and his own direct experiences with all manner of organizations. To his credit, throughout his lively narrative, after identifying the most important “what,” he devotes most of his attention to suggesting “how.”
Making Sense of Change Management: A Complete Guide to the Models, Tools and Techniques of Organizational Change (Second Edition)
October 1st, 2009Esther Cameron and Mike Green
Kogan Page (2009)
Cameron and Green’s objective is to help their reader understand “why change happens, how change happens, and what needs to be done to make change a more welcoming concept” by carefully reviewing a wealth of resources that provide models, tools, and techniques of organizational change. Their purpose is not to explain how to plan and then implement a change initiative program. Those in need of guidance to do that should seek it elsewhere. (My suggestions would include James O’Toole’s Leading Change and John Kotter’s book of the same title as well as William Bridges’ two books, Transitions and Managing Transitions.) Presumably Cameron and Green would be among the first to agree that it would be a fool’s errand for a reader to adopt all of the information and counsel provided in this book when formulating and then implementing any change initiatives. Rather, teach reader would be well-advised to absorb and digest the material and then select only what is most relevant to her or his own organization’s specific needs, interests, objectives, and resources.
In the concluding chapter, Cameron and Green share two “significant messages” that were ringing in their ears as the ink begins to dry on this book. “The first message we want to convey is about the importance of leaders being awake and aware. The notion of peripheral vision is a key one to keep in mind. Leaders need to wake up to what is going on around them. This means noticing the more than the obvious, the loud or directly visible. It means having an awareness of what is going on at the edges, and being observant about motion and change. Whichever assumptions a leader employs about the nature of change (machine, political system, organism or flux and transformation) there is a need to be extremely observant about what is going on in and around the organization…The second message is about the importance of reflection time. Leaders benefit greatly from taking regular, focused time to reflect on what is going on around them (the fruits of their peripheral vision), what is happening right now, what the options are and they are personally in all this. Their organizations benefit too because leadership action is considered, rather than knee-jerk.”
Earlier, I suggested that Cameron and Green’s objective is to help their reader understand “why change happens, how change happens, and what needs to be done to make change a more welcoming concept” by carefully reviewing a wealth of resources that provide models, tools, and techniques of organizational change. That is, theirs is a “what to think about” book, not a “how to do it” book. They focus their reader’s attention on a wealth of options (e.g. theories and models), resources (e.g. MBTI), focal points (i.e. individual change, team change, organizational change or a combination thereof), and references (Pages 270-275) to consider. Those who absorb and digest the material with appropriate care will also receive at least some assistance from Cameron and Green when designing and then launching change initiatives that are most appropriate to the needs, interest, resources, and objectives of their own organization.
Proactive Steps to Successful Debt Collecting
September 30th, 2009By Phil Turtle
The longer a debt remains unpaid, the greater the chance that it will never be paid. In fact the majority of debts that go past 90 days become bad debts. So says Philip Turtle MBA of marketing and management consultants Turtle Consulting Group. In the next of his well-regarded series of business advice, Phil brings you the know how on making bad debts a thing of the past.
Every business should ensure that they have a debt recovery plan. This usually involves scheduling in a series of letters, then phone calls and eventually taking legal action or handing an outstanding debt over to a recovery agency. However this step should be seen as a last resort as a debt collection agency typically charges 10/15% percent of the debt as their fee. But then again 85/90% is far better than zero – and these agencies mostly operate on a no recovery, no fee basis.
1) Customer satisfaction phone call – before dispatching invoice
An unhappy customer is more likely to become a late payer or bad debtor. So before dispatching your invoice, think about calling the customer to enquire if they were happy with the service they received. Then forewarn them that the invoice is on its way and reinforce the payment terms eg. 30 days. For regular customers, you don’t need to call after every order, but an occasional call will let them know that you are thinking about them and their needs.
If you think an item may get queried, then phone and explain what the charge is going to be and get your customer’s agreement to you billing that amount. Confirm the conversation in an e-mail or letter.
Another valuable tip is to split items onto different invoices. If all your charges are on one bill then the whole amount is going to get held up over one small query, seriously hurting your cashflow. On the other hand if the queried item is on a separate bill, only that much smaller amount will be delayed.
2) First overdue letter – 7 days after due date
At this stage, sending a friendly reminder that the due date has passed is the best thing that you can do. If an invoice is less than a fortnight overdue, you must give the customer the benefit of the doubt that the cheque is in the post or that they simply forgot. You should send out a duplicate invoice with your reminder letter, with the past due date clearly highlighted. This then avoids the frequently used and abused ‘Oh but I’ve lost the invoice’, excuse.
3) Second overdue letter –7 days after the first letter (2 weeks after due date)
Again, this is more of a nudge than a demand. Keep the tone similar to your first letter, but point out that this is now the second time that you have written. Again, enclose a duplicate invoice. It might also help to nudge the tardy customer’s attention towards the Late Payment of Commercial Debts (Interest) Act (see below).
4) First collection phone call – 7 days after second letter (3 weeks after due date)
The invoice is now one month overdue and it is time to pick up the phone and speak directly to the customer. Be prepared for a barrage of excuses like ‘the cheque’s in the post’ and ‘we’re just waiting for a big customer to pay and then we’ll pay you next’. Be courteous and let the customer speak, but don’t end the phone call without getting a firm commitment as to when the debt will be settled.
5) First collection letter – on the day you make the first call (3 weeks after due date)
On the same day that you make the collection call, post out a letter first class which reiterates the payment date which has just been agreed.
6) Second collection phone call – 7 days after the first collection letter ( one month after due date)
If you have still had no response, it is time to make a second phone call. The account is now a month overdue and the longer a debt remains unpaid, the more likely it is never to be settled. Be polite, yet increasingly firm and ask for immediate payment. If the debtor insists that they cannot pay right away, make another commitment to a payment date.
7) Second collection letter – 7 days after new payment date has passed (40 days + after initial due date)
At this point, you need a change in the tone of your communication. The customer must now be made aware of the seriousness of the situation – and immediate payment demanded. Put the customer on ‘stop’ and warn the customer that further credit will not be available unless the matter is resolved within the next seven days. Send this letter, and all future communication via recorded delivery. This will let you know for sure that the customer has received your letter – and will communicate to them the increasing severity of the situation.
8) Third collection phone call – two weeks after second collection letter (54 days + after initial due date)
You are now telephoning the customer to let them know that this is their final chance to settle their debt. Warn them that the debt is about to be passed over a collection agency, which will not just incur them further costs, but could also potentially put them on a credit blacklist. Get the customer to promise to pay within 7 days to stop this procedure.
9) Hand over to collection agency – two weeks after final letter (68 days + after initial due date)
The account is now three months overdue and requires professional help. A debt of three months standing is statistically difficult to recover…….
10) Devise your own system
The outline procedure I’ve shown here may or may not be ideal for your business. Use it as an outline to devise your own system with more or less steps and longer or shorter time intervals.
Above all once you’ve decided on a debt collection procedure make it totally automatic process that is religiously adhered to.
One of the big problems that UK businesses have is that they invoice late and then don’t chase the cash in aggressively. It’s not something we feel comfortable with. And it’s been the death of thousands of businesses – so be more aggressive and make sure you stay on top of your cashflow.
The Late Payment of Commercial Debts (Interest) ActThe Late Payment of Commercial Debts (Interest) Act was introduced on 1 November 1998. It automatically gives businesses with 50 or fewer employees the right to claim interest if another business pays its bills late. Previously, businesses were only able to claim interest on debts if it was specifically included in the contract or if the debt was being pursued through the courts. On 7 August 2002, the rule was amended to come in line with European legislation on late payment and now applies to businesses of all sizes. The introduction of late payment interest is not just meant to act as a deterrent, but as a way to maintain your profitability when your cash flow is not earning interest in the bank.For contracts dated on or after 7th August 2002 the late payment interest rate is 8% plus the reference rate. The current reference rate for the period 1st July 2009 to 31st December 2009 is 0.5% – S0 that’s currently 8.5%Click here to access late payment interest calculator.For more information go to http://www.payontime.co.uk/
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How to write a killer business plan
September 30th, 2009By Phil Turtle, Managing Director of Turtle Consulting Group
What separates a weak business plan from a great one? And why is a killer business plan such a vital tool for a successful company? Business owners write plans for three different reasons. Firstly, a plan is vital when looking for a bank loan, to either start or grow a business or when looking for Venture Capital funding. But a dynamic business plan is even more important for the day-to-day running of a business and will be key to keeping your business on track to success.
There are eight different aspects of your business that you need to consider when going in for the kill.
1. PRODUCT/SERVICE
First of all, you need to clearly describe the unique benefits and differentiators of your product or service. Who are the target customers? What value propositions does the product/ service provide to the customers? What is the revenue model? Not knowing how to bring in money was a key flaw of many of the early 90s dotcom companies. Also be sure to spell out whether the business model has been proven elsewhere. If you can demonstrate that you have well thought out answers to all of these questions, you have completed the first stage of writing a killer business plan.
2. MANAGEMENT TEAM
Even more vital to your business are the people who make it happen. Be sure to spell out who are the founders and what is their experience, qualifications, and very importantly their past achievements. Think about how critical the idea-orginator is to the future success of the business and how he/she will be retained. Clarify how are the management responsibilities are shared amongst the team. Now, project yourself and your business into the future and think about your plans for reinforcing the management team down the line. What additional sets of skills and experiences are you seeking to bring into your business? Don’t be shy, acknowledged gaps make you look more credible if you have a strategy to address them.
3. MARKET AND COMPETITION
The next step is to consider your business in the marketplace. What is the potential market size for the product/service? What is the expected market growth and which major factors influence that growth? Demonstrating an awareness of the market as a whole, think about your competitors and what they offer? What are the strengths and weaknesses of competitors? How will they react? And of your own business. How do you compare on key attributes including relationships with suppliers and customers and technological capability?
4. MARKETING AND SALES
Now you have defined your business’ standing in its marketplace, you need to plan for what you are going to do to improve it. What are your specific plans to promote the product/service? How will the product/service be distributed? Which partners will be needed in the distribution channel? What will be the pricing strategy? Are you going to bring in outside help such as a marketing agency to reinforce your position? How will you establish a sales pipeline?
5. BUSINESS SYSTEM AND ORGANISATION
To recap, we have looked at defining your product or service, detailing the management team, gaining an understanding of the marketplace and thinking about improving your market position. Now to move to operations. What is the organisational structure of the company? And importantly, how will this organisational structure help achieve business goals?
What additional skills will be required in the future and what is your recruitment strategy? What is the scope of the business? Will all functions be implemented in-house? Or will non-core operations be outsourced? If this is the case, have strategic partnerships been identified? How will these partners be secured? Have key vendors been identified? If yes, how will these vendors be secured? If no, what is the plan to get vendors?
6. IMPLEMENTATION SCHEDULE
Ok, so that’s the day-to-day running of the business explained. But what about mid-term planning? What is the detailed short-term implementation plan? Draw up a chart detailing a schedule of month-by-month activities. Make sure you are clear about who is responsible for each of the tasks. What are major milestones? What are the interdependencies between tasks? What is the outline five-year implementation plan? Sneaking a glance further ahead, what are possible long-term options for the business?
7. FINANCIAL PLANNING
Now it’s the numbers bit. You need to look at your financial projections for the next three to five years. Consider income, cash flow, company valuation, utilising discounted cash flow analysis, revenue multiples, balance sheet. What are the key assumption used in the financial pro-forma? What are the financial requirements for the business and what sources of financing have been identified?
8. OPPORTUNITIES AND RISKS
Finally, this is the part of your plan where you spell out the best-case and worst-case scenarios for your three/five-year financial projections. As an example, assume you are planning to take a 10 percent share of the market. But you make more – or less. What would you do if you only took five percent? Are you able to shed overheads? Or stage investments? What if you do better than expected and grab 15 percent of the market? Have you got the resources to meet the demand? Would you put up prices to control the volume? Are you in a position to recruit quickly if necessary? Conduct a sensitivity analysis, which is where you enter your best – and worst-case scenarios into your financial spreadsheet and see what knock-on effect they have – particularly on cash-flow!.
Book Review: The CEO Chief Engagement Officer: Turning Hierarchy Upside Down to Drive Performance
September 30th, 2009John Smythe
Gower Publishing Company (2007)
All organizations need order and structure as well as policies and procedures, given the importance of full compliance with applicable federal, state, and regulatory legalities. That said, Smythe does not propose the creation of a senior-level executive position. Rather, he correctly stresses the importance of formulating and then implementing a program that will maximize employee engagement throughout an organization, at all levels and in all areas. This program will focus on preparing everyone with supervisory responsibilities to help achieve that objective. Paraphrasing one of Jim Collins’ most widely cited recommendations in Good to Great, Smythe explains that, for him, “employee engagement is first and foremost a management philosophy based on the idea of including the right people in the right decisions at the right time in the right way. Inclusion in decision making and change is not a one-way ticket for employees to butt their noses in wherever and however they want. Leadership sets the boundaries and governs the process; and citizens in the process have responsibilities to behave as partners in the process.”
Throughout his narrative, Smythe responds to questions such as these:
1. What is employee engagement and why is it so important?
2. What are the most common barriers to achieving it?
3. How to overcome these barriers?
4. Which four approaches to achieving employee engagement should be considered?
5. How to select the most appropriate approach?
6. Why is measuring employee engagement “a waste of time”?
7. How to identify the “key drivers”?
8. Which principles and lessons should guide and inform the design of an employee engagement program?
9. How and why does employee engagement drive implementation of strategy?
10. How to create and then sustain a culture of employee engagement?
What Smythe proposes will not create organizational chaos by eliminating management authority altogether; rather, he proposes that the concept of “authority” be redefined, then be distributed (in effect) on an as-needed basis. If Joe Moderatz is being asked to design a more efficient system by which to allocate storage space in the Cooksey Corporation’s warehouse, for example, he should be centrally involved in decisions made concerning the objectives to be achieved, the core processes that must be taken into full account (e.g. the impact of the new system on processes in other areas), and the timeframe during which the new system will be design and implemented. In essence, Moderatz shares ownership of this task. Therefore, he will care how well he completes it because he is engaged.
How to build successful supplier relationships
September 26th, 2009Good relationships with your distributors and major suppliers can bring both profit and peace of mind to you and them. Strategic long term expectations will reap benefits including preferential pricing and credit and delivery terms. But this kind of lasting partnership doesn’t come easily. It needs to be worked on over time.
Like all strong relationships, the customer-supplier connection needs to be based on a certain amount of give and take and a large degree of trust and respect. You will be surprised how much good supplier relationships can bring to your business. The following guidelines can help to steer you and your business through the process.
Price is not everything
It may be tempting, particularly in the early days of a business, to go with the supplier that can offer you the lowest price. But sustainable relationships are built on more than just price. It is worthwhile to ask yourself how a potential supplier is able to undercut its competitors. Could it be at the expense of technical advice, product range or the ability to source ‘specials’?
When assessing future suppliers, make sure you take into account the full range of factors that affect the quality of your relationship. In addition to price, these could include;
- How do they ship their products to site and how much extra does that cost – especially if from a distant national distribution centre. A good price may not be so competitive once shipping has been added.
- What are their standard invoicing terms? Do they offer discounts or other incentives for fast payment, bulk orders, etc?
- How quickly can I expect my order? What happens if I occasionally need an order in extra quick time? Will they pull out the stops for me? Do they have the mechanism for express delivery?
- How will they manage my account? Will I have a dedicated account manager with a direct dial number? Or will I have to deal with faceless people in call centres?
- Can I return excess product? How do they handle returns and other problems?
- Are they willing to customise orders or handle other special needs?
- What level of technical advice is offered? And is this advice available throughout the working day?
- What is the policy on replacements and repairs?
- How good is the support in choosing the right product for my needs?
- What is the product/service quality? And is it of a consistent level?
Check finances
It is common practice for suppliers to investigate the financial status of potential new customers, but as the customer, all too often we don’t exercise the same caution in return.
By getting a credit report on a supplier, you will have a clearer picture of its potential as a long-term strategic partner. A supplier with credit problems may be unable to offer credit themselves or may find it difficult to ship orders on time. To obtain credit reports contact Dun & Bradstreet www.dandb.com or Experian www.experian.co.uk.
Ask for references
Any supplier worth their salt will be only too happy to provide you with references from current customers. Don’t be afraid to ask about the bad times. How effectively a supplier deals with problems can be a very good indicator of whether you want to work with them.
Maintain good faith
Your ability to foster long-term good-will and partnership with a supplier depends not just on the service you receive from them, but also on the way you handle them. Paying your bills on time is a good start and will get you preferential treatment to less reliable customers. Avoid quibbling over every price.
Your suppliers also need to make a profit and if you screw them down to their absolute minimum every time they will start to see you as a less favourable customer. Despite what you may have been taught, a good contract is one where both parties feel they are the winner. And think about it, if your supplier isn’t making a profit soon you won’t have that supplier.
Don’t cry wolf
If you tell your supplier that every order is urgent, they will not take it so seriously the one time when extra speedy delivery really is a must. If an order is just routine, then say so. And agree a reasonable delivery date. Then when you need to impress an important customer of your own, your supplier will be more likely to help.
Eggs in baskets
Depending on how important the goods or service is to your business, develop good quality strategic relationships with two or three providers. Share the work out evenly between them and let them know the arrangement. This gives you security of supply if one fails or has problems and also gives you a mechanism to keep a check on prices and service levels.
Management InBrief Issue 5 OUT TODAY
January 27th, 2010Fortnightly News Magazine for Busy Managers, Directors & Entrepreneurs.
Issue 5 published today. Get it now at www.managementinbrief.com
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