The company also outlined the geographies where they expected growth to come from over the strategic period (60% of sales would come from outside the USA); the operating margins they will achieve by fiscal 2013 (12% to 13%) showing a step-change improvement annually starting from a low fiscal base in 2009. 

In addition, the company provided a time frame for turning around under-performing brands (between 18-24 months) and the time frame for realigning their organization structure in keeping with the changing growth dynamics of the various geographies. They indicated that they would improve productivity and reduce the complexity that was hindering the execution of strategy. Furthermore, the company will invest $50 million to fuel market share growth, a better understanding of their consumers' needs and research and development for future product pipeline.

Now take the case of Pacific Brands which owns the 'Bonds' clothing range which is an icon in Australia. Recently they announced that they would be moving their manufacturing facilities off-shore to China. This would entail a loss of 1,800 jobs - 200 less than the number at Estee Lauder; but two days after making that announcement, it was revealed that their CEO (Pacific Brands CEO) recently had a $1 million salary increase and was now being paid in the region of $2 million / year.

Now, here's the thing. Two different companies with two different approaches to the market. Both cutting their workforce by +/- 2,000 and, I would guess, both CEOs probably earning around about the same salary. Yet, one company leaves you with a warm feeling of confidence whilst the other leaves you feeling ever-so-slightly angry. 

One company communicated very clearly their strategic plan and even though they provided the bad news about letting so many people go, they also provided a solution and the good news that they will be investing for future growth which, one would hope would create future jobs. The other company communicated only the bad news which I am sure was an inevitable strategic decision and which their senior managers had given a lot of thought to - but they provided no solution, no 'hope' for the future, nor any indication that they had a strategy for the future. The result, you are left feeling that those people lost their jobs so that the company could some how fund the CEO's salary ( I know this isn't the case, but perception is reality).

Once, a long time ago, I had to cut 10% of my workforce. It must rate as the most difficult and gut-wrenching thing that I have ever had to do. Even though it was painful for all involved, the employees could see the pain that I was going through. They might not have like the cuts, but they supported me because they could see my pain. It is difficult for employees to empathize with a CEO who announces job cuts and then a salary increase for herself of $1 million.

So, the take out is this - in today's climate, we have to step out from under the cloak of fear that has clouded our thinking in the past with regard to providing too much information to the public that may be used by our competitors. We have to clearly communicate our strategic direction over the next 4 years. It is not enough to say that because revenues and profits are falling, people will lose their jobs. We need to show that we have a plan that accommodates the present climate but also outlines clearly what our plans are for future growth. We need to communicate our key metrics and the time frames that we will measure ourselves against. We need to take a leaf out of Estee Lauder and show that we really do know what we are doing. We need to bring 'hope'.

As the old saying goes - Don't tell me the problem, just tell me the solution.

ian

 There are 3 tests that I give to business books: first, 'does the technique being espoused by the author add value?' Secondly, 'will the technique stand the test of time or is it nothing more than a fad?' And finally, 'does the author(s) provide sufficient information to allow the reader to convert theory into practice from the information supplied in the book?' Sadly, many books fail in one of these 3 tests which then leads to a second barrage of questions that ultimately determine whether I embrace the technique in the future or not. But, not so with 'Making the Number.' 

First, there is no doubt in my mind that companies that embrace Sales Benchmarking will see positive impacts to their revenues, their profits and their shareholder value. Secondly, we are today seeing that those companies that have embraced 'best-practices benchmarking' and 'world-class status' are surviving in today's business climate and are in fact making profits whereas those that have embraced mediocrity have fallen on their sword. Finally, the authors provide a five step action plan to guide you through implementing Sales Benchmarking (not that you won't require a little help along the way). If that is not enough, the authors have included actual case studies for your reference. 

But, I did say at the outset that the book is a treasure chest of value. Because of the very nature of Sales Benchmarking, the book will take you through 2 valuable concepts. The first is the concept of 'The Formula for Sales Success' and the second is the 'Sales Management Maturity Model Scale'. The understanding of both concepts is extremely important in the execution of strategy whether or not you undertake Sales Benchmarking. 

If you are serious about making your numbers, then 'Making the Number' is a must read. If you are serious about becoming 'world-class', then not only is the book a must read, but I would also suggest that you visit www.salesbenchmarkindex.com. Happy reading.

ian    

> Don't cut the level of optimism for the future

> Your level of optimism is visible every day in the actions of sales managers and employees as a whole

> The lack of optimism in sales becomes a self-fulfilling prophecy

Mr. Kennedy's final words provide valuable advice to us all: 'Make sure your actions as well as your words demonstrate a strong belief that although we might currently need to work a little harder and a little smarter than we did during those last few years of record profits, there is still plenty of business out there to be won.'

My thanks to Mr. Kennedy and the team at ehotelier.com

ian

Our Mission is simple: 'To create outstanding value every day for our clients, staff and the community that makes for a better world.' It can be a smile, a warm welcome, a simple thank you or finding the solution to a particular problem. 

So if you have any ideas as to how I can create outstanding value for you through this Blog - please let me know. And if there is a particular subject that you would like to know more about, feel free to again let me know and I will see what I can do.  The way I see it - this is just as much your Blog as it is mine.

What brought this on apart from the regular visit to the Mission Statement - I subscribe to a number of other blogs and it seems to me that they have become more intense (almost bordering on panic) with their offers and their messages. But on closer inspection, their messages are the same and no different to what they have always espoused. Times are changing and they need to change. I don't want to make the same mistake. So let me know where I can create value with this Blog for you. And please feel free to send this to whoever you know, open it up to others in your organization, your colleagues and friends. Let's start a "How can we create outstanding Value' open-blog debate. I look forward to hearing from you. Thank you.

ian

Whatever you may call the current crisis that we are facing, be it meltdown, recession, catastrophe, shameful, unfair - there has been no limit to the descriptors used in the media - one thing I know for certain and that is we will bounce back. Yes, we will. We will be a little stronger, and a lot wiser; but we will bounce back.

The question that I ask though when we do come out of this is 'what do you want to look like? How will you describe the way you behaved? What will our actions tell others about ourselves? How will what we do today in this crisis position us for the future? How will our companies or departments look like and what would we have done to shape those companies or departments? Did we put our hands up to be included in change or did we keep our heads bowed?

Prior to his becoming President, Barack Obama suggested that each of us is responsible for doing our part and that we can not and should not wait for government or for others to fix the mess. We need to take the initiative and do our part. 

To say that I am not worried by the state of the world's economy or even for that matter, for the state of my country's own economy, would be a lie. I am in the consulting business and will be impacted by the crisis. I am also in the middle of raising funds for a new business venture that we will be launching next month - now how idiotic is that!! But, I am also excited by the changes that are happening across the corporate world. No, I am not in favor of regulation on executive salaries and will have to live with 'social capitalism' for now. I am excited that in order to survive, companies are off-loading weak or debt-ridden companies that were nothing more than a noose around their necks anyway and created no value for shareholders. I am excited that managers are being forced to find costs outside that of simply 'cutting labor' because a more business and operationally savvy manager will be born. Weak companies that should have folded years ago, will disappear and well-managed companies will get stronger leading to more value overall. The supply and demand for labor at all levels will change as labor enters the realm of 'free agent' status. And, finally outside of the corporate arena, I am excited that we, as individuals, will change as we take stock of what is truly important to us and realize that spending beyond our means is not always a wise investment. 

Yes, we will get through this and when we do, I want to make sure that I can look back and honestly say that I played a part in the changing landscape; that I painted on the new canvas and was not just a spectator or a critic from afar. And also, when we do get through this, I want to make sure that I am ready to move quickly on the opportunities that will surely be available. Yes, they will.

ian

But whilst you lie exhausted, the process of birth begins almost immediately. Nature begins to rebuild. Green shoots of grass break through the earth's crust and a few months later what was once a blackened, charred earth, is now littered with green tufts of grass. New trees are emerging and those trees that had been healthy and strong before the fire, although scarred, are showing signs of growth again as new leaves appear on its branches. The landscape has indeed taken on a different appearance from what it once was. Not only is it marked by burnt monuments of trees that once stood tall but it is also marked by new varieties of flowers, grass and saplings. You grieve over the burnt monuments but as you look at their charred remains, you realize that they were hollow and that they were dead internally long before the fire; a fact that nature knew a long time ago. Then you marvel at the growth and the beauty around you.

As Nature teaches us - despite outside appearances, companies that are internally weak or hollow on the inside, will be destroyed by the current crisis. Companies that are healthy and strong internally will, although scarred - survive. Throwing money at the weak is like throwing more wood on the fire. The landscape is changing but just as Nature begins the building process immediately, so too must we.

We need to review our current business models of growth. We need to review our strategy within the changing landscape. We need to review our processes and our internal systems and be ruthless in discarding those that are monuments of landscapes of long ago. We need to review the talent that we have left in our company, and know how we will retain them. We need to plan for the day we will need to attract the best of talent back into our fold when growth occurs and it will. We need to review how we are going to keep our loyal customers who are lying exhausted and who have lost so much. We need to find ways to strengthen our companies so that they will in fact grow because through growth will come confidence. Importantly, we need to review shareholder and investor expectations of what is considered reasonable growth. 

So, I ask you - now that you have made all the cuts and have laid off people by the droves; reduced your advertising and administration spend; downgraded travel and closed unprofitable branches and knowing that as one business journalist put it, 'the hangover from 2008 will last long after the last firework is heard exploding in the night sky.' - I ask you, 'What's next? and have we in fact learned anything from what Nature teaches us.

ian

Forgive me for being a cynic but my experience with call centres is that they tend to benefit the organization and not the customer despite what the company may say and no matter how it is couched in its mass mailings to customers. I have to admit that I have never understood why companies are so eager to pass on any opportunity to deal directly with its customers and taking customers calls for bookings and their questions surrounding their loyalty programs are such opportunities.  

I suspect that someone at head-office in South African Airways looked at the call-centre not as a profit centre able to generate sales revenues but rather as a cost centre filled with people answering irate customer complaints or simply taking orders. Time they woke up a smelt the coffee. Remember those days so long, long ago when sales people were seen as simple order takers - who were told to always follow the company line. As competition grew more fierce and customers more discerning, that soon changed. The same will happen with call-centres. Companies need to see them as natural extensions of the sales team, powerful individuals in their own right who have the ability to up-sell customers or disengage customers. I am not sure that that is something I would want to outsource.

ian

On Leading and Motivating Teams
"In my opinion, one of the greatest motivating tools we have is a pat on the back. Another technique is listening."

Tips for New Leaders
"Lead, don't drive. And give credit. Don't blame. Criticism must always be given in a gentle way, never harshly. As a coach I had 3 rules:

1. Never be late
2. You must never criticize a teammate
3. I would not tolerate profanity from anyone, anytime

Pursuit of Excellence
"My bench never heard me mention winning. My whole emphasis was for each one of my players to try and execute the fundamentals to the best of their ability. Not to try to be better than somebody else, but to learn from others, and never cease trying to be the best they could be."

On Resolving Conflict
"Unless a problem is brought to the forefront, it will just continue to fester."

On Struggle and Difficulty
"Hardship brings people closer together if you share it."

On Patience
"Leaders must have patience for those under their supervision. Don't expect too much too soon. Maybe it was easy for you, but that doesn't mean it's going to be easy for somebody else. And then you must believe in what you are doing, that what you're doing is the proper thing, the right thing."

Tremendous insights indeed from a true Master!

ian

I would recommend that you review Coach John Wooden's 'Pyramid of Success' which you can download from his website (provided above). The building blocks are a reminder of what builds winning teams.

On this occasion I have been asked by Dan Baluta to comment on a project and task management application that is based on David Allen's book 'Getting Things Done' called gtdAgenda that you can access at www.gtdagenda.com. Before commenting about it on this blog however, I wanted to use the system for a while and see if it indeed made my life easier, or as some of these new systems have a tendency to do - make my life more complicated; I wanted to see how easy it was to switch over from my current management system but importantly, I wanted to see if I could customize it to suit my needs. The timing was excellent as I had a number of projects on the go and I was being swamped with tasks that needed to be done and prioritized. If ever an application was to be put to the test - this was it. 

At the outset though, I must warn you that I am a bit of a goal freak. I have goals for every aspect of my life be it career, physical, family, spiritual, mental etc., and I am constantly monitoring progress towards those goals; adding activities or 'crossing them off', working on new projects or reshaping existing projects etc. so working with a project and task management system was not particularly new to me. What was new to me however (and I am ashamed to admit it in this day-and-age) was using a web-based application. I have used a paper-based system for years. Nevertheless, Dan set me up with an account (as this is a paid service application) and I jumped right in. Big mistake!

As with all new applications, it always helps to read the instructions before jumping right in, not that gtdagenda is all that complicated; but it is worth spending at least 5-10 minutes 'Taking the Tour' and reading the section entitled 'Use gtdagenda to implement Getting Things Done (GTD) by David Allen'.

I found it easy to set up my goals just as it was easy to link projects to each of those goals. Then adding tasks to each of those projects was simple enough. The process flow in setting up goals, projects and tasks is very easy to follow. A list of all your projects is displayed to the right of the page which enables you to switch from one project to another with ease which is a feature that I found extremely useful.

Another aspect of the application that is a tremendous help is the 'Next Actions' list which is the first thing that is displayed when you sign in to your account in www.gtdagenda.com. In addition, your goals are always displayed at the top of each page that you are using. Keeping your goals in front of you at all times is for me crucial, as I do believe it keeps you honest and focused on what is important and prevents you from straying too far off the beaten track.

The application allows you to develop checklists which can be weekly, monthly or yearly and I do like the way the checklist is configured. I would however have liked to have been able to develop separate checklists for each of my goal categories (i.e., one for physical and one for spiritual etc) as I found the application lumps all activities into the same checklist. In hindsight though, this isn't necessarily a bad thing as it did enable me to see on one page everything that I routinely do (or wanted to do) during the week. It did make me realize that I was being a little unreasonable in my expectations of what needed to be done.

There is a 'Context' section that informs you whether tasks are to be done at home, via the computer or any other means that you may wish to include. How useful this feature is I haven't quite determined yet and the jury is still out for me. There is also an e-mail address at the bottom of the task list page the purpose of which is not clear to me. I assume it is there if you need to contact gtdagenda should you have a problem. I could not find any mention of it in any of the readings. One feature I would have liked is for all my 'Next Actions' to be e-mailed to me when I log in to my e-mails every morning. Always good to have such timely reminders.

In short, the gtdagenda application has kept me honest. Critically, it has forced me to prioritize my projects and tasks and to clearly define those activities that I need to do next. By forcing me to prioritize, I have been able to focus on those projects and tasks that are important to the achievement of my goals.

The application did indeed make my life easier; I found it easy to switch from my current management system to the gtdagenda application and I was able to customize it to suit my needs. I would certainly recommend it for anyone struggling to manage their time and for those dealing with a myriad of projects both at work or in their personal lives. 

ian

It's business as un-usual but I do strongly believe that today's economic climate provides companies with an unbelievable opportunity to tear down walls and rebuild into stronger and better companies. Unfortunately, for many the opposite is occurring. They are battening down the hatches and disappearing up their own back apertures in their attempts to deal with the crisis facing them. For example, one client that we work with was issued with a directive from Head Office not to employ any further staff. The policy was one-in, one-out or simply non-replacement. This left the management team despondent because they needed resources (of the human kind) to meet their growth projections. Their reaction on being told the directive was to throw up their hands and say, 'well, we can't get the growth targets, then!'

I then asked the management team to do the following: Assume they were the owners of the business and knowing what they know today about the business, its products, its customers etc - on a blank sheet of paper, how would they structure the business. In other words, they would be starting from scratch. A funny thing happened. Not only did they structure the company in such a way that growth areas had the most resources, but the team actually ended up with exactly the same number of people as they currently had. No more. What they realized was that they were trying to prop up an inefficient structure by piling on more resources rather than tearing down walls and redesigning a structure that was more appropriate to their strategy.

It's business as un-usual so don't be afraid to tear down walls and build a structure that is relevant to your strategy today. 

ian