Quantcast
Channel: Kamyar Shah

13 Essential Skills And Traits Of Successful Business Owners

0
0

13 Essential Skills And Traits Of Successful Business Owners

Willingness To Sacrifice

Entrepreneurship by nature requires sacrifices both in your personal and business life: be it sacrificing personal time to learn a new skill to help the business or the willingness to terminate a friend that was not a fit for said business. Hence, if there is little to no willingness to be flexible enough to sacrifice, starting a business should not be an option. – Kamyar Shah, World Consulting Group

Originally published at https://www.forbes.com/sites/forbescoachescouncil/2019/12/23/13-essential-skills-and-traits-of-successful-business-owners/#6528c24eaca3

Check out my Interim COO and/or Interim CMO services

The post 13 Essential Skills And Traits Of Successful Business Owners first appeared on Kamyar Shah.

15 Daily Habits Of Great Leaders

0
0

15 Daily Habits Of Great Leaders

Implement Reading Time

I have had the pleasure to work with many entrepreneurs over my career. The single factor that all the successful ones had in common was their reading habits. It goes something along the lines of there being a time block set aside to catch up on readings. Short of a disaster that has to be dealt with, that time is nonnegotiable and will stay off-limits for any other activity. – Kamyar ShahWorld Consulting Group

Originally published at https://www.forbes.com/sites/forbescoachescouncil/2019/12/30/15-daily-habits-of-great-leaders/#512ebced42ca

Check out my Fractional COO and/or Fractional CMO services.

The post 15 Daily Habits Of Great Leaders first appeared on Kamyar Shah.

Promoted To Management? 15 Ways To Navigate Workplace Relationship Changes

0
0

Promoted To Management? 15 Ways To Navigate Workplace Relationship Changes

Choose Your Language Carefully

A promotion to a managerial role will inherently alter the dynamics between peers. However, the language used to express that can provide context and help; it is easy to contextually explain that the relationship is evolving. That approach can be extremely helpful for all parties to “buy-in” to the new dynamics and even become an active actor in helping achieve goals that benefit all. – Kamyar ShahWorld Consulting Group

Originally published at https://www.forbes.com/sites/forbescoachescouncil/2020/01/06/promoted-to-management-15-ways-to-navigate-workplace-relationship-changes/#40c32ec947f2

Check out my Remote COO and/or Remote CMO services.

The post Promoted To Management? 15 Ways To Navigate Workplace Relationship Changes first appeared on Kamyar Shah.

15 Clear Signs Your Employee Deserves A Promotion

0
0

15 Clear Signs Your Employee Deserves A Promotion

They Exhibit Above-Average Performance

When and if an employee asks about additional ways to contribute, it is a good sign that they are ready for more responsibility. Granted, said employee has to be above-average at the current job duties. Additional consideration should include factors such as cultural immersion and product-specific know-how. – Kamyar ShahWorld Consulting Group

Originally published at https://www.forbes.com/sites/forbescoachescouncil/2020/01/06/15-clear-signs-your-employee-deserves-a-promotion/#54a6bac6c1ad

Check out my Part-time COO and/or Part-time CMO services

The post 15 Clear Signs Your Employee Deserves A Promotion first appeared on Kamyar Shah.

15 Ways To Actually Achieve Your New Year’s Resolutions In 2020

0
0

15 Ways To Actually Achieve Your New Year's Resolutions In 2020

Aim To Be Better Than You Were Yesterday

Be better than you were yesterday. Personal and business lives are always evolving, and we encounter obstacles that we have to overcome. The goal is not to be perfect or to achieve something spectacular. Hence progress and improvement can only be measured in context. Being better in one area than you were yesterday is not only simple to understand but easy to achieve. – Kamyar ShahWorld Consulting Group

Originally published at https://www.forbes.com/sites/forbescoachescouncil/2020/01/07/15-ways-to-actually-achieve-your-new-years-resolutions-in-2020/#15dab7092189

Check out my Business Consulting and/or Management Consulting services.

The post 15 Ways To Actually Achieve Your New Year’s Resolutions In 2020 first appeared on Kamyar Shah.

Is It Time To Walk Away From Your Startup Idea? 15 Ways To Decide

0
0

Is It Time To Walk Away From Your Startup Idea? 15 Ways To Decide

Test Your Doubts Against The Data

Emotional decisions, both in personal and business lives, tend to have debatable outcomes at best. A better way is to formulate those doubts into tangible hypotheses that can be proven or disproved. Then it is rather simple: Consult with peers, collect and analyze data or do both. The end result is rather straightforward: Either the concern is legit or it is not. – Kamyar ShahWorld Consulting Group

Originally published at https://www.forbes.com/sites/forbescoachescouncil/2020/01/07/is-it-time-to-walk-away-from-your-startup-idea-15-ways-to-decide/#36693ee639af

Check out my Strategy Consulting and/or Operation Management services

The post Is It Time To Walk Away From Your Startup Idea? 15 Ways To Decide first appeared on Kamyar Shah.

16 Questions To Ask Yourself Before You Pursue A Side Hustle

0
0

16 Questions To Ask Yourself Before You Pursue A Side Hustle

Do you have a purpose besides earning money?

Though the standard considerations such as viability, earning potential and other similar factors should be the main basis of the decision, a secondary factor is often overlooked: dual purpose. A side hustle can and should have more than just a single goal of earning money. It should also help determine if it is the right business to eventually grow or do full time. – Kamyar ShahWorld Consulting Group

Originally published at https://www.forbes.com/sites/forbescoachescouncil/2020/01/08/16-questions-to-ask-yourself-before-you-pursue-a-side-hustle/#5d4c98bb1f88

By: Kamyar Shah – Chief Operating Officer

The post 16 Questions To Ask Yourself Before You Pursue A Side Hustle first appeared on Kamyar Shah.

Feeling Anxious About Your Business? 16 Ways To Cope With Entrepreneurial Stress

0
0

Feeling Anxious About Your Business? 16 Ways To Cope With Entrepreneurial Stress

Accept And Become Aware Of Your Stress

Stress, much like a task, has to be managed. It boils down to understanding and accepting that being stressed is part of the journey. That acceptance then leads to awareness, which should be turned into actionable tasks to manage it. Those tasks, however, have to fit the individual needs. It can be as simple as an hour walk or as elaborate as a combination of meditation and yoga. Awareness is key. – Kamyar ShahWorld Consulting Group

Originally published at https://www.forbes.com/sites/forbescoachescouncil/2020/01/09/feeling-anxious-about-your-business-16-ways-to-cope-with-entrepreneurial-stress/#d20db0c615a3

by Kamyar Shah – Chief Marketing Officer

The post Feeling Anxious About Your Business? 16 Ways To Cope With Entrepreneurial Stress first appeared on Kamyar Shah.

Misconceptions About COO Duties And How A Fractional COO Can Maximize Your Operations

0
0

Business Consultant - Management Consultant

Starting With Your New Remote Chief Operating Officer

So you have decided to hire an interim or part-time Chief Operations Officer. What are the next steps for your organization and how will your new interim COO fit in with your team? It is important to understand how a Fractional COO can improve your operations. Having a clear definition of your Remote COO’s role and duties when you start working is essential.

Common Misconceptions About The Role Of A Chief Operating Officer

Depending on the structure of a business, CEO, President, Second-in-command, and deputy leader can all be similar roles.

The COO role usually ranks below a CEO. and they may have a background in marketing, finance or technology or any relevant sector. The simplest way to look at it is that the COO backs up the CEO and their vision for a company. Due to this structure, The Chief Operating Officer is often at the mercy of the CEO’s ideas and desires.

Many companies believe that the COO is one of the more intensive roles in the organization’s C-Suite. Because the COO will deal with pressures from the boss as well as from heads of other departments.

One can assume that it’s a stressful and sometimes horrible fire-pit of a role. Especially in a multi-national or multi-agency company. One might think that handing some of the responsibilities down is best. Thus overseeing rather than implementing might be preferable.

But that isn’t always the case.

The New York Times reported that Twitter’s former COO, Ali Rowghani, quit after seeing his responsibilities usurped by the advertising arm of the company. Combined with disappointing user figures, Rowghani quit before he was pushed to do so. Responsibility is a powerful motivator and removing responsibility can have negative effects.

The Twitter news and the inherent implication that the COO role should have a wider set of tasks is backed by data. According to studies by EY, a third of COOs have experienced a wider set of tasks in the past five years.

Another misconception of the COO is that their role is to stabilize what already exists. It can be the opposite. Oftentimes, a Fractional Chief Operating Officer is brought in to completely overhaul operations. A CEO may find an expert in turning companies around and give their COO the flexibility to execute.

Another misconception is that the chairman is the most important role in the company. In reality, the COO is often the glue that holds everything together at the top. The COO may even be far more experienced than the CEO. The story at Dell computers, where 29-year-old Michael Dell brought in a team including Mort Topfer as the company boomed.

Topfer understood his role was advisory and had no desire to assume the CEO role. Many COOs at a junior stage in their development, still have the ambition to get to the top spot. This aspiration lends itself to many COOs becoming CEOs.

What Are The Common Traits Of The Best Fractional COOs

Asked to name an inspiring CEO and most of us can name many. Like Steve Jobs, Meg Whitman, Bill Gates, Mark Zuckerberg, and Marissa Mayer. Now, if we are asked to name extraordinary Chief Operating Officers, it could be a challenge.

Chief Operating Officers can easily get overshadowed in the public eye by the role of the CEO. Particularly in large traditional organizations. The dynamic has evolved in the digital world with Remote Chief Operating Officers having a bigger impact in remote teams.

According to Accenture, the COO is, “perhaps one of the least understood roles in business today.”

Ryan Caldbeck, founder, and CEO of CircleUp states COOs are vital to companies. Especially during periods of rapid growth or transformation when execution risks are high.

Chief Operating Officer roles are less clearly defined than a CEO’s role and scope. Keith Rabois, former COO of Square, describes the COO at a startup as a doctor in an emergency room. Your Remote COO will be fixing things, triaging and diagnosing issues to see if they are minor or serious.

An Interim COO possesses a unique set of skills. Bridging the space between the visionary CEO at the top and the execution of strategy.

Here are the top traits of an effective Fractional Chief Marketing Officer:

    1. They are strategic with a focus on the details. Sheryl Sandberg, COO of Facebook, is arguably the highest-profile COO today.  She has a remarkable ability to dig deep on a wide range of issues. Meanwhile, she also knows the bounds of her duties. When Facebook hit challenges in negotiations with PayPal, she smoothed out differences. A successful Fractional COO balances a breadth of experience and knowledge. Paired with an ability to manage strategically and you have an advantage. COOs keep their company’s high-level strategy front-and-center. They also understand the day-to-day execution to ensure what needs to happen does. Handling those details can be no small matter. Six in ten COOs say the complexity and diversity of the position make the role worthwhile, according to Ernst & Young’s survey of hundreds of COOs. Thus, contrary to the misconception that COOs are only focused on the details of day to day operations, they keep high-level strategy in mind.
    2. They value and appreciate talent. The best Interim Chief Operating Officer is a people person. They understand the business depends on the combined talents of their team. As your Part-Time COO maintains operations, they also keep an eye out for talent. They raise the level of talent by sourcing strong hires and develop the team. “If the COO creates an environment in which people can thrive, then their job becomes so much easier.” Charles Robert Davis, Vice President Director, Darya-Varia Laboratoria Your COO’s scope branches out beyond operations to your team’s development.
    3. They have no ego. One misconception is that because a COO holds an executive title, they must have a big ego. The best Fractional Chief Operating Officers set aside their ego for their organization. In putting the organization first, they find ways to highlight the good work of others. Good COOs will give speaking engagement opportunities to a business-line head for example. Also, when media outlets request interviews, top COOs will find ways to share the spotlight.
    4. They are data-driven. Key business decisions cannot be made based on assumptions. It can be very tempting to rely on your gut to make business decisions. It is a common practice. An effective Interim Chief Operating Officer will take the gut decision of a CEO and will guide final decisions. When a CEO or a business-line head, or director says, “I just know this initiative will be a home run,” the effective COO asks for data.

Data-driven COOs are responsible for ensuring a strategic vision translates into profitable operations. Rather than allow the business to be guided by instincts, internal politics, hunches, the best COOs will insist the business be driven by data.

Businesses should not underestimate the value of a strong Part Time COO. Good COOs instrumental in turning strategy into operational and financial success.

Do Chief Operating Officers Ever Shift From Their Capacity?

One misconception is that the Operations responsibilities of a COO do not translate across the executive suite. However, the COO role is the most common stepping stone by far to the CEO seat.

According to Agile Lean House, not every COO wants to become the next CEO. Thirty percent see the operations leadership role as a destination in its own right. Given the demands and breadth of the job, this is hardly surprising. Of COOs surveyed, most find the role extremely satisfying. The ability to influence strategy and the broader perceptions of the role are appealing.

Why A Fractional COO Is A Necessity And Not A Luxury In Organizations With Little Operations Structure

Some organizations can often overlook the need for a COO, and do not consider the option of hiring a Remote Chief Operations Officer. Budgets may be under certain constraints and focused on product development, sales and other areas of the business. Operations can support everyone on your team, to ensure the business runs smoothly.

Why Hiring A COO Offers You Flexibility And Cost Savings Versus Being An Expense

Today’s business ops are growing to become more complex with businesses operating at the speed of the Internet and change being the norm. Senior leadership must compete and bring together the talent necessary to complete tasks and deliver.

Outsourcing an Interim COO is a great alternative when you do not have the resources in house to fill a Chief Operating Officer role. This option provides you with flexibility and long term cost savings of potential budget waste.

Misconceptions About The Leadership Function Of Your Part Time COO

According to leadership strategy writer, Rajeev Peshawaria, there are common misconceptions about leadership. The first misconception is that most think leadership is about influencing others to achieve a goal. Yet, if we observe world leaders, most did not do anything to others. They set very clear goals and motivated themselves to get things done. In doing so, they set an example to become a powerful role model. Being an example can inspire a team to join the leader’s journey.

The second misconception about leadership is that we assume that the person with the most formal power in a group is the leader. Because the aforementioned misconception centers leadership around influencing others to achieve, this leads to the assumption that to have influenced one must be in a position of power. Leadership has little to do with formal authority. As formal authority will sit with a board or executives in the startup culture for example. Oftentimes, authoritative figures are also far removed from the day to day of business operations. Those with authoritative power may provide high-level initiatives but core operations functions are defined by your COO.

A third misconception is that followership is leadership. For example, in the corporate world sometimes employee engagement surveys result in promotion. This sets a standard for managers to engage in people-pleasing so that surveys highlight positive results. Effective leadership does not involve pleasing the team at all times. A skilled Interim COO will help you make tough decisions for your business but might be unpopular among your staff. Pleasing, in itself, is a behavior linked to following and not leading.

What To Expect From Your Fractional COO In The First 100 Days

Contrary to one might assume, your Interim COO will have a structure mapped out for the initiation of your engagement. Not exactly.

Research indicates that successful COOs must address these critical areas to make an impact:

Expect the unexpected 

The reality of the issues facing your business may be of a different magnitude and nature than thought. There will be a long to-do list of pressing problems and challenges. This is particularly true if the role has been filled for the first time or has been established to solve a particular set of business problems. As such, it is important to understand the function of the role and begin to identify the key issues that your Interim COO will be inheriting.

Answer the obvious questions

Take the time to understand the role and the nature of the challenges ahead for your Fractional COO. Keep in mind that a new appointee who seeks to make too many changes early on is sure to make mistakes. It is far more valuable to allow your new COO to get to know the business and meet as many people as possible. It is only by amassing a deep knowledge that they can understand where to act. And how their decisions might impact different functions of the business.

Allow some freedom and mobility for your COO to move

The speed with which your COO needs to make decisions will depend on the nature of the appointment they come into. If operations are in crisis mode, there may be an expectation that significant changes will be made early on. By contrast, operations that are already running well can be a prompt that you will need your Fractional COO to uncover the “next big thing” to deliver.

Network, network, network

Your Part time Chief Operating Officer must be a “people person”. They must be able to develop and work with a wide range of different people. The most important of all is with the CEO, and this will naturally consume a large proportion of the time. The working relationship between a Fractional Chief Operating Officer is expected to be close. Both executive seats must work collaboratively in order to be successful. A hands-off relationship will not be suitable enough to run a successful organization.

Outside of your COO’s network, they must be careful not to neglect other members of the management team. Expect your Interim COO to build strong relationships with the heads of finance, IT, sales and marketing and HR, to name but a few. All will have a direct bearing on the role at some point in time. For COOs at large multinationals, international travel is essential. Your Fractional COO will spend time with managers and other senior executives in as many locations as possible if applicable.

Given that the first 100 days can make new appointees feel exposed, it may be worthwhile to identify a mentor or consultant to guide the role. Allow your Remote COO to spend time upfront understanding your team’s issues, responsibilities, and competencies. Identify who your COO can rely on to support them with details. This will free up time so that they can focus on the bigger picture for your business.

Make Room For Your Part Time Chief Operating Officer To Make An Impact

It is imperative that your Fractional COO put their individual stamp on the strategy of the organization. And to reclaim some of the spotlights from more prominent executives. The extent to which your COO will be able to do this will depend to some degree on the relationships and dynamics of the broader management team. It will also vary according to the specific role that they have been appointed to fulfill

Perhaps more than any other executive, COOs have the power to change the organization.

The Current Climate for Chief Operating Officer Professionals

Being the biggest resource at some organizations, it may be thought that the role has a lot of support.

As if the job of the Part Time COO were not hard enough, it also lacks external guidance and support. There are few in-depth studies on the nature of the job and few specifically relevant conferences. For too long, COOs have simply flown under the radar of good management thinking and writing.

There are reasons for this low profile, of course. The huge diversity of the role and the extent to which it varies across verticals and companies makes it challenging to pin down and examine. The responsibilities of the COO are often — but by no means — inward-looking. This means that COOs are rarely called upon to comment in the media or speak at analyst presentations. This is another difficulty they face, in terms of getting airtime for their issues and worries. But several trends are now causing the status quo to be challenged. Operational excellence has become a key source of competitive advantage for many businesses. The tough economic environment demands a relentless focus on the smooth running of the business. This is a task ideally suited to the strengths of the Part time COO. Not that this is easy. Demand volatility, soaring commodity prices, and the divergence between rapid-growth and developed markets require flexibility, agility, and efficiency from operations. Achieving this can be highly challenging in the current climate. The Part Time COO brings coordination to these efforts. Along with the ability to spot interdependencies and opportunities. Still, while the focus on operational excellence should never be downplayed. COOs have to combine these skills with a set of more forward-looking capabilities.

The COO: A Catalyst for Organizational Transformation

For CEOs needing to find breathing space to focus on selling a wider vision, the COO can play a more central role. The COO defines and implements strategy and becomes the owner of the business transformations. more than any other executive, COOs have the power to change the organization. And, as companies look to an uncertain future, this is a skill that will remain in high demand.

Sources:

Demystifying the role of COO



https://www.ey.com/en_gl/advisoryhttps://hbr.org/2006/05/second-in-command-the-misunderstood-role-of-the-chief-operating-officer
https://www.entrepreneur.com/article/232762https://www.forbes.com/sites/rajeevpeshawaria/2019/07/03/the-three-biggest-misconceptions-about-leadership/#3ae5364784b2v

The post Misconceptions About COO Duties And How A Fractional COO Can Maximize Your Operations first appeared on Kamyar Shah.

Misconceptions About CMO Duties And How A Fractional CMO Can Help Maximize Results

0
0

Business Consultant - Management Consultant

Laying The Foundation For Your New CMO

So you have decided to hire an interim or part-time CMO. What are the next steps for your business and how will your new interim CMO fit in the picture? It is important to understand how an interim CMO can help your business and marketing. Having a clear definition of your CMO’s role and duties are also essential. With marketing tactics and business needs changing, the role of the CMO has evolved.

The Move Away From Traditional Marketing And The Need For Expertise

In the past, CMOs were in charge of traditional marketing and advertising. With the global consumer base now becoming more complex, successful CMOs must embrace change and broaden their scope. Successful CMOs are aware of the latest trends, methods, and technologies. This requires a strong digital marketing skill-set for upgraded marketing goals.

Why Engagement and Storytelling Is Vital For Your Marketing’s Success And How A CMO Can Fill The Gaps

With the growing use of digital resources, customers are moving toward an interactive experience. They are now engaging with brand stories that appeal to their emotions. This is why CMOs now have to focus on emotional rather than rational engagement. In the past, communications required little customer feedback. and Brands served their story without the customer in mind. With the Internet, marketing must now cut through the noise. making engagement more important now than in the past. People need to feel important and traditional marketing methods ignored their audience.

How A CMO Leverages Consumer Action Over Words

“As a marketer, you have to be driven by the consumer that you are serving, and you can only do that when you are curious about them. You can’t change the world if you are not curious about it.” Target CMO, Jeff Jones. A Fractional Chief Marketing Officer recognizes that consumers are now more vocal. Customers also desire to be a point of reference for family friends. This demanding context leaves little room for error in developing a marketing strategy.

What You Might Be Missing In Your Competition and Business Evaluations and How Your CMO Can Help

Part time Chief Marketing Officers understand that putting your company in a leading position requires an educated survey of the competition. Your Fractional CMO must have top analytical research skills to test your company and the competition. Besides having a solid understanding of your competition, a business strategy concentrating on these four areas can fill any gaps in your existing strategy:

  • The reasons behind successful as well as unsuccessful firms
  • Prime customer motivators
  • Major component costs
  • Industry mobility barriers

Why A Fractional CMO Is A Necessity And Not A Luxury In Organizations Lacking Marketing Leadership

Some organizations can often overlook the need for a CMO, and do not consider the option of hiring a Remote Chief Marketing Officer. Budgets may be under certain constraints and focused on building sales teams, product development and other areas of the business. Marketing can support your sales team in a way other functions cannot.

According to Artful Thinkers, here are ten scenarios in which you need to outsource a fractional CMO:

  1. You have a strong tactical marketing team; however, you do not have a marketing person sitting at the table where company decisions are made about the vision, mission, strategy, tactics and growth plans for the next 3-5 years.
  2. You lack a marketing strategy or plan.
  3. You need a sustainable marketing engine that can deliver predictable results.
  4. You spend money on marketing, though you see little ROI or do not have the capabilities to track budgets, measure performance or forecast results.
  5. You need better competitive analysis and market research to know if you are talking to the right people and delivering the right products and services.
  6. You need a comprehensive assessment of marketing tactics, team members and capabilities to ensure you are built for long-term success.
  7. You know digital transformation can improve your business, yet you lack the expertise that can represent marketing’s role in that process.
  8. You want to implement advanced tactics or implement marketing technologies to help the organization best utilize their data and assets to improve the customer experience.
  9. You need an expert that can help you improve brand loyalty, reduce churn and supports the business development team to achieve their growth targets.
  10. You are dissatisfied with the results of the marketing and the impact on revenue and know that you are missing out on existing market opportunities.

Why Hiring A CMO Offers You Flexibility And Cost Savings Versus Being An Expense

Today’s marketing functions are growing to become more complex with businesses operating at the speed of the internet with change being the norm. Senior marketing leaders must compete and bring together the talent necessary to complete tasks and deliver.

Outsourcing an Interim CMO is a great alternative when you do not have the resources in house to fill a CMO role. This option provides you with flexibility and long term cost savings of potential marketing waste.

How A CMO Leads Your Team And Fosters Their Development

A Remote Chief Marketing Officer fills in any leadership gaps for your organization. The leadership function of your Interim CMO is essential, especially in lean organizations where C-level executives may not have the time to foster the growth and development of their marketing department.

The current state of digital marketing departments requires teams to be agile and flexible with the constant state of change in marketing technology, methods and how its used to achieve marketing objectives for businesses. Re-skilling and furthering the knowledge of your marketing team will be an ongoing evolution of their careers as well as the growth of your department.

Your Fractional CMO can identify any weak spots before you do as well as combine the strengths of your team to enhance the productivity and skill of your department. It is important to be aware that your marketing department is only as good as its weakest link. With the help of a Part-Time CMO, issues can be assessed before they become a costly problem down the line.

Misconceptions About The Leadership Function Of Your Part-Time CMO

According to leadership strategy writer, Rajeev Peshawaria, there are a few common misconceptions about leadership as a function. The first misconception is that most think leadership is about influencing others to achieve a goal. However, if we observe world leaders, most did not do anything to others. They set very clear goals and motivated themselves to get things done. In doing so, they set an example to become a powerful role model. Being an example can inspire a team to join the leader’s journey.

The second misconception about leadership is that we assume that the person with the most formal power in a group is the leader. Because the aforementioned misconception centers leadership around influencing others to achieve, this leads to the assumption that to have influenced one must be in a position of power. Leadership has little to do with formal authority. As formal authority will sit with a board or executives in the startup culture for example. Oftentimes, authoritative figures are also far removed from the day to day of the marketing department. Those with authoritative power may provide high-level initiatives however the core functions of the marketing department are set by your CMO.

A third misconception is that followership is leadership. For example, in the corporate world sometimes employee engagement surveys result in promotion. This sets a standard for managers to engage in people-pleasing so that surveys highlight positive results. Effective leadership does not involve pleasing the team at all times. A skilled Interim CMO will help you make tough decisions for your business but might be unpopular among your marketing staff. Pleasing, in itself, is a behavior linked to following.

Is My CMO Only Responsible For Marketing?

Another myth about Fractional Chief Marketing Officers is that their sole focus is on marketing. Fractional CMOs are now bringing more to the table outside of the knowledge area of marketing. As businesses evolve, existing marketing can often lead to more questions than answers. This creates gaps that require additional steps. For example, competitive or data analysis may result in a negative conclusion. Common marketing problems are low traffic, little to no brand awareness and so on, however, these may be symptoms of other business problems. A skilled Interim CMO may have to work backward, starting with a marketing problem, and diagnose the root causes of failure points.

The responsibilities of your CMO will overlap into strengthening your customer experience, financial and strategic business tasks. Thus, your Interim CMO’s role will serve as a pivotal focus in your business by aligning your goals with your customers. As mentioned earlier, customer engagement is now more effective than traditional advertising strategies. This focus on connecting to customers requires your Part Time CMO to think outside of the box and ensure the customer experience is effective. This requires that your Remote CMO take an outward approach, starting with the customer, rather than developing strategies focused on your business story. Story-telling is necessary however, how can we best make your business about the customer? This question will be at the forefront of your CMO’s mind when making strategic decisions around your customer experience.

A strategy developed around the customer requires Chief Marketing Officer functions to diversify and meet expectations throughout the company when it comes to growth, innovation, and analysis too. Your Interim Chief Marketing Officer will help set plans for your business that influence growth. Growth needs will vary between companies and can be more defined by your Part-Time CMO. Innovation is hard to come by in traditional functions. To keep up with the demands of the digital marketing space, innovation is a requirement. An analysis is a way of measuring the results of your company’s efforts. Your Fractional CMO will often need to work in iterations of making assumptions, testing them, analyzing the results of those tests and assessing performance.

A skilled Part time Chief Marketing Officer is familiar with tools and analytics methods that can aid in gauging performance. Your CMO will use the acquired analysis results to determine what is working for your business and advise you. It is not uncommon for a Remote Chief Marketing Officer to advise against using particular methods. As mentioned earlier, an effective leader does not follow what is popular. The right Part Time CMO for your company may disagree with you when a particular strategy is not the best course of action for your business.

These decisions are well-intentioned and based on data, not only from what is currently being gathered about your business but also the lessons learned from previous experiences.

According to the Digital Marketing Institute, sixty-eight percent of senior managers now expect CMOs to be growth drivers which comes as no surprise to Proctor & Gamble’s former CMO, Kimberly Whitler. “Now, not only do marketers have to be finance experts, but they have to be technologists and understand the ways in which they can connect with consumers.”

The scope continues to widen for Remote Chief Marketing Officers and that requires your Part Time CMO to find a balance between meeting your customer’s needs while generating revenue and facilitating growth for your business.

What Is The Typical Tenure of A Traditional Chief Marketing Officer And How Does An Interim CMO Compare With The Traditional CMO?

One misconception is that your business needs a traditional Chief Marketing Officer in house. This couldn’t be further from the truth. Although a Chief Marketing Officer may be expected to work with you for some time, due to the drastic evolution and confusion about the CMO role, CMOs are most likely to have the shortest tenure among C-Level Suite groups. Due to this trend, an Interim Chief Marketing Officer is the perfect fit for your company as the role evolves. The definition of the position has created a lot of confusion leading to shorter tenures.

The Digital Marketing Institute reports that only fifty-seven percent of CMOs have been in their position for three years or less, with the average tenure being a little over four years. This is almost half the time of the average CEO tenure and less than the average five years for CFOs.

It is common for Chief Marketing Officers to sit on the executive committee and report to the CEO. Lack of clarity when it comes to the Chief Marketing Officer role and a misunderstanding of what the organization needs versus what is assumed needs has led to many CMOs exploring other titles. This shift may leave a gap in your organization if you have been running your business for some time. This need is a great opportunity to bring in a Part Time Chief Marketing Officer that can fill in any needs unresolved due to your CMO moving on to explore other opportunities or failure rates resulting in roles left unfilled. A Remote Chief Marketing Officer is also a viable option if you have an online business. A Remote CMO can serve as an extension to your in-house executive committee.

As a result of the confusion over duties and responsibilities, many organizations report that finding the right Chief Marketing Officer quite the challenge. In addition to finding the talent, companies also experience difficulties in retaining their appointed CMO. Low retention rates are due to organizations not defining their needs and expectations of this role.

A Fractional Chief Marketing Officer is all too familiar with such challenges. Defining their role and adapting to an organization is a collaborative experience. Clear expectations make working with a Remote CMO run smoothly. As opposed to guiding a traditional CMO.

Eighty percent of CEOs report dissatisfaction with the performance of their CMO. That is quite a staggering statistic. This may be due to the lack of clear outlined expectations set by the CEO. A clear definition of the CMO function is also imperative.

According to the Digital Marketing Institute, a CMO Council survey reported that 48% of CMOs had a strategic focus. These CMOs needed time to spend on assessing long-term growth plans. Half of them spent time reviewing budgets, managing campaigns, and content approval instead. This leaves little time for their remit.

What Are The Types of CMO Roles?

A common misconception is that a Chief Marketing Officer will fill the same duties as other. The differences among company needs and their customers vary so much. This creates an atmosphere where the CMO role is more fluid by nature. Chief Marketing Officers must adapt to the needs of their market. Companies may have more than one target market. This requires the need for a skilled and evolved Interim CMO. There are three buckets that a CMO may fall under. Whitler and Morgan break Chief Marketing Officer roles down into three different types. These are Enterprise Wide, Strategy Focus, and Commercialization.

The majority of Chief Marketing Officers natural fall under the Commercialization type. A Commercialization CMO focuses on the following:

  • Marketing and sales communications
  • Digital content development
  • Events, and promotions
  • Advertising
  • Social media engagement

Roughly one-third of CMOs are of the Strategy Focus type. These Chief Marketing Officers are particularly focused on growth strategy. They focus their responsibilities on customer insights, innovation as well as product design.

The smallest category, which is Enterprise-Wide CMOs, are responsible for encouraging business growth. They drive profitable sales, marketing communications, innovation as well as design. A reputable Fractional Chief Marketing Officer will be able to work across the three.

Effective Digitization And How A Remote Chief Marketing Officer Can Help

The digital age of marketing continues to grow at a rapid pace. Your online presence can expand your business globally. Making it imperative to make digital decisions that make sense. “Going viral” is not the answer to the growth of your business which it comes to digital strategy. A well versed Remote CMO will be able to apply the right digital marketing strategy for you.

Your Fractional CMO will focus on short term applications but also long term goals. A solid strategy goes beyond being popular. Making a decision to go viral, can cause serious and costly business impact. The right Part Time CMO for your business will steer you in the direction. Especially when considering all digital alternatives.

To ensure your success, it is important to have a clear understanding of how your CMO will fit in your business.

Sources:
forbes.com/sites/steveolenski/2018/01/25/why-a-chief-marketing-officers-role-is-not-what-it-used-to-be/#7b339ccc4bd0
artfulthinkers.com/10-reasons-for-hiring-outsourced-cmo
forbes.com/sites/rajeevpeshawaria/2019/07/03/the-three-biggest-misconceptions-about-leadership/#3ae5364784b2
digitalmarketinginstitute.com/en-us/blog/the-evolution-of-the-cmo-whats-next

The post Misconceptions About CMO Duties And How A Fractional CMO Can Help Maximize Results first appeared on Kamyar Shah.

15 Ways To Onboard New Hires Efficiently (Even During Busy Times)

0
0

15 Ways To Onboard New Hires Efficiently (Even During Busy Times)

Create A Complete Feedback Loop

One of the rather easy ways to evaluate and improve onboarding, be it in a high- or low-stress environment, is having a complete feedback loop with all stakeholders. This would allow for feedback from all levels, including the new employee. This kind of dynamic feedback allows for quick tactical pivots to improve the onboarding quickly and effectively. – Kamyar Shah, World Consulting Group

by Kamyar Shah – Interim COO

The post 15 Ways To Onboard New Hires Efficiently (Even During Busy Times) first appeared on Kamyar Shah.

15 Tips For Tactfully Turning Down A Potential Client

0
0

Stick To The Facts

Polite and factual statements are virtually always the best way of approaching most conversations, even the difficult ones. In this particular instance, it is just as important what is being said as how it is said—conveying that a relationship may not be as productive and effective while encouraging them to find alternatives would be the optimal approach. – Kamyar ShahWorld Consulting Group

By Kamyar Shah – Interim CMO

The post 15 Tips For Tactfully Turning Down A Potential Client first appeared on Kamyar Shah.

15 Tips For Navigating Family Business Challenges

0
0

Keep Family Issues Out Of The Business

Though there are many different ways that may help avoid family pitfalls, one of the safest ways is a clean-cut separation of family and business. Creating a formal separation in which personal and family issues do not carry any merit when it comes to business-related matters will have the best chance for long-term success. Alternatives are more susceptible to occasional and repeated failures. – Kamyar ShahWorld Consulting Group

Check out my Part-time COO and/or Part-time CMO services

The post 15 Tips For Navigating Family Business Challenges first appeared on Kamyar Shah.

Overwhelmed? 15 Ways To Set Better Boundaries For Work And Life

0
0

Overwhelmed? 15 Ways To Set Better Boundaries For Work And Life

Enforce The Consequences Of Your Boundaries

Boundaries are less about explicit expression than actions. For boundaries to be of any impact, there have to be consequences that are obvious enough. Those actions and consequences can be as simple as making sure the other side notices that they have been ignored on purpose, or as complex as explicitly and publicly emphasizing that they have been ignored for a specific reason. – Kamyar ShahWorld Consulting Group

Check out my Business Consulting and/or Management Consulting services.

The post Overwhelmed? 15 Ways To Set Better Boundaries For Work And Life first appeared on Kamyar Shah.

Keep Your Stakeholders In The Loop With These 14 Communication Tips

0
0

Operate With Consistent Integrity

Though communication is the obvious answer, there is more to it. Communication at its face is great; however, in order to have the proper impact on stakeholders, those communications have to be above board. That usually translates into being accepted as a person of consistent integrity that will report objectively at all times. Without that perception, communication is not effective. – Kamyar ShahWorld Consulting Group

By Kamyar Shah – Chief Operating Officer

The post Keep Your Stakeholders In The Loop With These 14 Communication Tips first appeared on Kamyar Shah.

Financing Your First Business? 16 Expert-Recommended Funding Tips

0
0

Financing Your First Business 16 Expert-Recommended Funding Tips

Seek To Self-Fund First

Though there are many tools and platforms that make fundraising more accessible, there is still a lot to be said about self-funding. A self-funded company tends to signal several positive attributes that are highly desirable, including self-discipline. Though this may not apply to all business environments, it should be the first option to be considered. – Kamyar ShahWorld Consulting Group

By Kamyar Shah – Chief Marketing Officer

The post Financing Your First Business? 16 Expert-Recommended Funding Tips first appeared on Kamyar Shah.

12 Up-To-Date Lead Generation Tips For The Modern Salesperson

0
0

12 Up-To-Date Lead Generation Tips For The Modern Salesperson

Look In ‘Little Ponds’

The simplest way to exponentially grow inbound leads in later stages of a business is to adopt the “big fish, little pond” methodology. Secondary venues, or “little ponds,” that are unlikely to be overcrowded by others will allow the business to be the “big fish.” This approach, however, requires an immense amount of creativity and experimentation to find the proper and converting “little ponds.” – Kamyar ShahWorld Consulting Group

By Kamyar Shah – Read more about Management Consulting & Operations Management

The post 12 Up-To-Date Lead Generation Tips For The Modern Salesperson first appeared on Kamyar Shah.

Job Seekers: 13 Important Things To Look For In Your Ideal Recruiter

0
0

Job Seekers: 13 Important Things To Look For In Your Ideal Recruiter

What They Do With The Information You Provide Them

Much like any other service provider, recruiters depend a great deal on information to provide the best possible result. Hence, it is important to be proactive and provide them with a complete background as well as a “narrative” of what you are trying to accomplish. The more details and guidance one provides, the more likely that the recruiting efforts will result in the desired outcome. – Kamyar ShahWorld Consulting Group

By Kamyar Shah –  Remote COO

The post Job Seekers: 13 Important Things To Look For In Your Ideal Recruiter first appeared on Kamyar Shah.

Is Your Company Growing Too Fast? 14 Red Flags To Watch For

0
0

Is Your Company Growing Too Fast? 14 Red Flags To Watch For

You’re Putting Out Daily Fires

Rapid growth entails change, which tends to create friction. That sort of friction tends to manifest in a wide range of symptoms such as quality control issues, customer dissatisfaction as well as internal conflicts. Those symptoms are just that—symptoms. The underlying causes are virtually always within growth and scaling projects that were not planned or not executed properly. – Kamyar ShahWorld Consulting Group

By Kamyar Shah – Remote CMO

The post Is Your Company Growing Too Fast? 14 Red Flags To Watch For first appeared on Kamyar Shah.

15 Culture-Building Tips For An All-Remote Team

0
0

15 Culture-Building Tips For An All-Remote Team

Encourage Cross-Collaboration

As someone that has worked 16-plus years remotely, the single most important cultural tool is cross-collaboration. Remote teams that integrate cross-collaboration among team members tend to create deeper and more personal relationships. It ultimately tends to translate into deeper personal bonds that not only help maintain but also evolve the organizational culture. – Kamyar ShahWorld Consulting Group

By Kamyar Shah – Business Consultant

The post 15 Culture-Building Tips For An All-Remote Team first appeared on Kamyar Shah.

Don’t Be Embarrassed To Ask These 14 Common Leadership Questions

0
0

Don't Be Embarrassed To Ask These 14 Common Leadership Questions

When should I stop?

In my experience, one of the least asked questions is, when do we reach the dreaded “diminishing returns?” Many entrepreneurs and senior executives incorrectly assume that all things have to consistently improve, which in turn results in some repetitive non-ROI-yielding activities. It is extremely important for advisors to be mindful and reiterate the need for factual evaluation. – Kamyar ShahWorld Consulting Group

The post Don’t Be Embarrassed To Ask These 14 Common Leadership Questions first appeared on Kamyar Shah.

13 Mistakes Business Owners Make When Trying To Differentiate Their Company

0
0

13 Mistakes Business Owners Make When Trying To Differentiate Their Company

Always Comparing To Others

Though product and services comparison may work, it is a short-sighted approach. Comparison in a crowded market may, in some cases, even be harmful by providing additional exposure for competitors. A more sustainable approach, however, is a combination of providing education and creating a customer-centric organization. These organic differentiations are long-term and not subject to fads. – Kamyar Shah, World Consulting Group

By: Chief Operating Officer

The post 13 Mistakes Business Owners Make When Trying To Differentiate Their Company first appeared on Kamyar Shah.

Seven Things Every Business Should Avoid When Using Crowdfunding

0
0

Seven Things Every Business Should Avoid When Using Crowdfunding

Not Being Honest About Concept And Needs

Crowdfunding is no different than any other business relationship: folks trusting you and investing money in you and your business. Hence it is important to be authentic—be honest about your concept and needs, be honest about intentions and, most importantly, maintain consistent channels of communication. All those actions will lead to trust, which in turn is helpful if anything goes awry. – Kamyar Shah, World Consulting Group

By: Chief Marketing Officer

The post Seven Things Every Business Should Avoid When Using Crowdfunding first appeared on Kamyar Shah.

15 Coaches Share Their Top Advice On Creating Multiple Revenue Streams For Your Business

0
0

15 Coaches Share Their Top Advice On Creating Multiple Revenue Streams For Your Business

Ask If It’s Viable Right Now

It is not really hard to create additional revenue in most businesses. The real question is if it is feasible or does it interfere with any other aspect of the existing business model? Is the timing correct? Will it cannibalize existing revenue streams? Once those and similar questions are answered, additional revenue streams can be explored and implemented. – Kamyar ShahWorld Consulting Group

By: Business Consultant

The post 15 Coaches Share Their Top Advice On Creating Multiple Revenue Streams For Your Business first appeared on Kamyar Shah.

15 Ways To Build Better Co-Worker Relationships For A More Positive Workplace

0
0

15 Ways To Build Better Co-Worker Relationships For A More Positive Workplace

Be Genuine

If the intent is to have a long-term “fix,” there is really only one sure way: be genuine. There is a mutual self-interest on both sides of the relationship. Your co-worker is likely to be just as interested in a relationship that will help their career as you are. Start by asking them how you can help with their work and career goals, which will lead to the same question from your perspective. – Kamyar ShahWorld Consulting Group

By: Business Consulting

The post 15 Ways To Build Better Co-Worker Relationships For A More Positive Workplace first appeared on Kamyar Shah.

Want To Develop Internal Talent? 13 Strategies For Creating Your Future Leaders

0
0

Want To Develop Internal Talent? 13 Strategies For Creating Your Future Leaders

Take A Long-Term View

Talent development is a matter of taking the long-term view with the matching resources and patience. Be it in education or the real-world, cultivating human capital in a dynamic and comprehensive way requires appropriate time and resources. Too often companies either lack the vision or the resources to implement consistent education, mentoring and period evaluation, which leads to failure. – Kamyar ShahWorld Consulting Group

By: Management Consulting

The post Want To Develop Internal Talent? 13 Strategies For Creating Your Future Leaders first appeared on Kamyar Shah.

Avoid Making These 14 Critical Mistakes When Promoting Yourself Online

0
0

Avoid Making These 14 Critical Mistakes When Promoting Yourself Online

Overselling Yourself

One of the rather repeated mistakes in self-promotion is “overselling.” Self-promotion is one of those propositions that fall in the “under-promise and over-deliver” category. Additionally, it is substantially more desirable for the results to be evaluated and praised by others. Hence leading to less “self” and more “promotion” that can’t be doubted or second-guessed. – Kamyar ShahWorld Consulting Group

By: Business Consulting

The post Avoid Making These 14 Critical Mistakes When Promoting Yourself Online first appeared on Kamyar Shah.

16 Ways Leaders Can Get Comfortable With Not Having All The Answers

0
0

Admit You Don’t Know, But Resolve To Find Out

Say it with me: “I don’t know. I will get back to you on this.” This particular phrase is the best friend of any true leader. It is an absurd assumption that someone knows it all. This is also a good way to gauge a new team or team member: If, in a meeting, anyone has all the answers, it should be considered suspicious. – Kamyar ShahWorld Consulting Group

By: Public Relations Consulting

The post 16 Ways Leaders Can Get Comfortable With Not Having All The Answers first appeared on Kamyar Shah.

Strategy Planning: What Every Leader Should Know

0
0

Strategy Planning

Whether you lead a team of a couple of people, a department with 25 people, a division with hundreds of employees, or an organization with thousands of individuals you are going to want to acquire some key skills when it comes to strategy. Having a formal understanding of strategy and how to utilize various methodologies will have a direct impact on the success of your team and organization.

The following are some of the high-level considerations that should be given to strategy planning within your organization.

Strategy: It’s Everyone’s Job

A strategy is typically let by the senior leaders within an organization. Larger companies may even have a senior executive with a role focused on Strategic Management. Others may reserve strategy responsibilities to a Senior Leader who has other responsibilities. Regardless, any organization should work to develop a culture of strategic accountability for all leaders. This commitment and focus should originate with the leader of the organization.

Annual Planning Cycle:

It will not matter how competent you or your team members are at the various methods/models of strategy if you do not have a rigid planning process around your strategy activities that considers:

  • Frequency: The frequency and rhythm of your strategy planning will be largely dependent on your business cycle. At a minimum, an organization should be reviewing strategy on a quarterly basis. A best practice is to utilize one of these sessions for deeper planning and utilize the other quarters as tune-ups.
  • Attendees: It is tempting to invite a lot of people to strategy meetings so that no one feels left out and all departments feel represented. For your quarterly meetings, you will want to avoid this temptation. For your key leadership meetings be mindful of including those individuals who can offer the most value to the process (hint: it is not always the people with the biggest titles). As an organization develops its strategy “muscle” there will be various layers of strategy meetings occurring in the organization that will ensure that all leaders are included in strategy planning and that all voices are able to be heard.
  • Duration: Choosing the duration of your meetings will be influenced by your organization’s culture, budget, and business challenges. A minimum of 5-10 days for planning days throughout the year (40-80 hours) equates to less than 5% of your leader’s time spent on one of the most important activities they could be engaged in. The 7 P’s of leadership planning “Prior Proper Planning Prevents P..s Poor Performance” derived from a British Army adage applies equally well to a company’s approach to their strategy planning efforts.
  • Ubiquity: Strategy planning and discussions should be ubiquitous in your organization. This means that you should be able to find strategy discussions occurring in weekly staff meetings, as part of yearly goal setting, and as part of yearly reviews. In addition, the best companies communicate broadly and deeply strategic plans and the organizations progress against these goals.
  • Point Person: Depending on the size of the organization you may have a person who is in charge of strategy as their whole job, or strategy may be a portion of someone’s job. Regardless, you will want one person who has the responsibility for leading the annual planning cycle. This person will communicate the organization’s approach to all leaders and employees. This person will also be responsible for outlining a strong agenda with input received from key members of the leadership. They will also be responsible for facilitating interactive strategy planning meetings.

Strategy Methods and Models:

Hundreds of books and resources are available on various methods and models that are utilized in strategic planning. The list that follows is a sample of methods and models that should be considered for utilization by an organization. It is recommended that a broad mix of individuals (departments and levels) be a consultant when utilizing any of these methods or models.

  • SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats): This method is the most familiar to leaders as it is commonly used and most easily understood. On an annual basis, companies should be reviewing their business, the competitors in their industry and the landscape in which they operate to evaluate their and their competitors
    • Strengths: What sets you apart from your competition and how should you be using this to your strategic advantage
    • Weaknesses: What areas are you not strong in and how or should you address these as a strategic issue
    • Opportunities: What possibilities exist for you to capitalize on with the right investment of time and resources
    • Threats: What are glaring issues that you must address immediately
  • VRIO Analysis (Value, Rare, Inimitable, Organized): This model can help an organization better understand where it derives its unique characteristics from and how various capabilities can be utilized in the strategic efforts of positioning the company against the competition
    • Value: How can you utilize any of your resources or capabilities as a competitive advantage
    • Rare: What resources or capabilities do you have that are rare and which give you a competitive edge (patents, physical resources, or unique capabilities should be reviewed)
    • Inimitable: What do you have that is difficult to replicate
    • Organized: This is where a company identifies resources or capabilities that it can invest in to give it a competitive advantage
  • Porters’ Five Forces: Is a tool used for understanding the forces that shape competition within an industry. It can be useful in guiding strategy adjustments to suit the competitive environment. Porter’s Five Forces was developed by Harvard Business Scholl professor Michael Porter. The five areas that are reviewed by companies to analyze an industry’s attractiveness are:
    • Rivalry Amount Competitors: Do competitors “play nice” or is it cutthroat
    • The threat of New Entrants: What barriers exist to keep out new competitors or what should you be working on to make it hard to do business in your space
    • The threat of Substitutes: A substitute is not always as a similar-looking business model. Taxi companies did not anticipate that customers would be so eager to try Uber, Lyft, and other ride-sharing platforms
    • Bargaining Power of Customers/Consumers: Access to information has given customers and consumers new leverage in dealing with you, how do you leverage this in your strategic decisions
    • Bargaining Power of Suppliers: How do you strategically approach your relationships with suppliers
  • PESTEL Analysis (Political, Economic, Social, Technological, Environmental, Legal): A PESTEL analysis helps an organization think about what may be occurring in the various spheres of influence which will impact the strategy of an organization.
    • Political: What is happening in the environments of the geographies which a company operates in or the industries a company participates and how this impacts short-term and long-term strategy of the organization. Who in your organization is watching policy changes closely in the markets and industries in which you are involved?
    • Economic: Factors from currency exchange rates to labor wage differentials that can drive where the business is conducted. How much disposable income your customers have should be known and it should be understood how they spend this disposable income.
    • Social: How does the thinking of individuals and groups influence a company’s approach to their products or services (e.g. growing concerns around “green” efforts) and how do shifting demographics of your customer base influence your organization.
    • Technological: Companies must continually be learning about how changes in technology will impact their business, in how they design products and position services Artificial Intelligence should be understood by all companies as its impact will be far-reaching on how products are designed, services are provided and employees impacted.
    • Environmental: All companies have an impact on the environment at large. You will want to think strategically about how your product or service engages with the environment and the tactical efforts you take that will both impact your top line, have a corresponding impact to your bottom line, and create a perception in your customer and employee’s minds.
    • Legal: The legal landscape may have an impact on how a company strategically positions itself based on policies surrounding things like labor laws, health, and safety, free trade, etc.
  • TECOP Analysis (Technical, Environmental, Commercial, Operational, Political): A TECOP analysis provides a mix of looking internally at some key capabilities and externally at key influencers to a company’s success to understand risks that need to be understood and addressed.
    • Technical: What is happening with technology that can impact your product or services and those of your competitors
    • Environmental: All companies have an impact on the environment at large. You will want to think strategically about how your product or service engages with the environment and the tactical efforts you take that will both impact your top line, have a corresponding impact to your bottom line, and create a perception in your customer and employee’s minds.
    • Commercial: Sometimes this is referred to as cultural. This is about understanding your demographics (internal and external) and the attitudes and behaviors of those you impact
    • Operational: Also known as Organizational, these are your structures, guidelines, policies, procedures, etc. that will impact your strategic choices
    • Political: What is happening in the environments of the geographies which a company operates in or the industries a company participates and how this impacts short-term and long-term strategy of the organization. Who in your organization is watching policy changes closely in the markets and industries in which you are involved?
  • VUCA Analysis (Volatility, Uncertainty, Complexity, Ambiguity): A VUCA Analysis requires a company to think abstractly and broadly to consider out-of-the-box factors which may impact them in the future
    • Volatility: Factors change quickly and identifying what should be monitored and analyzed regularly will help your strategic planning
    • Uncertainty: Having the ability to assess risks and model accordingly will help in choosing the right strategic path
    • Complexity: Understanding how the strategic plans execute on will interact with the broader business and social climate
    • Ambiguity: While data is critical to setting any strategy you will never have all the information you would like

Strategy Skills:

A strategy is a learned skill. Companies often overlook the benefit that can be derived by investing in strategy skill development for their key leadership. It is important to invest time in each of the following to build a culture of strategy within your leadership ranks

  • Training: Formal training efforts should be in place for key members of your leadership team (both existing and upcoming leaders). This training can be anything from strategy webinars to full-day training sessions, to actual accreditation.
  • Associations: It should be broadly communicated the value of membership in associations associated with strategy (such as ASP – Association for Strategic Planning and SMS – Strategic Management Society) Membership in disciplines directly associated to a person’s area of discipline also provide a means in which to stay familiar with key trends and concepts that will impact a company’s strategy).
  • Books: It is beneficial to recommend reading on a strategy to your key leaders. . Some of the top titles that will get your leaders thinking differently and more strategically:
    • Measure What Matters: How Google, Bono, and the Gates Foundation Rock the World with OKRs by John Doerr
    • Deep Dive: The Proven Method for Building Strategy, Focusing Your Resources, and Taking Smart Action by Rich Harwath
    • Elevate: The Three Disciplines of Advanced Strategic Thinking by Rich Horwath
    • American Icon: Alan Mulally and the Fight to Save Ford Motor Company by Bryce G. Hoffman
    • The Attackers Advantage: Turning Uncertainty into Breakthrough Opportunities by Ram Charan
    • Good to Great: Why Some Companies Make the Leap…And Others Don’t by Jim Collins
    • Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant by W. Chan Kim and Renee Mauborgne

Improving your Strategy Planning is a multi-year effort that once fully deployed will transform your organization and the results you achieve.

The post Strategy Planning: What Every Leader Should Know first appeared on Kamyar Shah.

Customer Experience: It is Not Just About Satisfaction

0
0

Customer Experience

Customer Experience has grown beyond a customer’s satisfaction with your product or service. The best companies view Customer Experience as the end experience that a customer has with the company throughout the various touchpoints.

The goal of this article is to discuss Customer Experience: It Is Not Just About Satisfaction. The following are some areas that should be considered when addressing the various touchpoints that a customer has with your company

Customer Experience: Everyone in your organization plays a role

Many people in an organization believe that if they do not interact directly with the customer that they do not affect the customer experience. This is not true and can be dangerous to your company’s success.

Areas of Influence:

When thinking about Customer Experience be sure to include the following:

  • Researchers: Are your researchers who work on new product discovery or service creation focused on the needs of the customer and what the customer wants or is trying to solve for. It is easy to get excited about what we think people want (and this can work – think iPhone), though just as often we will want to be in-tune with what our customers need.
  • Designers: When it comes to the actual design of a product or service have we done the proper research with our customers to ensure that what we have designed actually meets their needs. The landscape is littered with products that seemed “nifty” but that did not fully meet the needs of their customers and ultimately did not survive long-term (think Blackberry).
  • Human Resources: Does your human resources department fully understand the skills and competencies needed by individuals in the various departments that need to be present to have a customer-focused mindset. The company with the greatest engineers will not be able to compete with the company with great engineers who also possess a customer-focused mindset to build products that fully meet the customer’s needs. In addition, the Human Resources department is typically on-point for monitoring employee satisfaction and engagement. Countless studies have shown that a satisfied and engaged workforce ultimately leads to the best products and services which leads to the highest levels of positive customer experience.
  • Operations: There are numerous roles on the operational side of the business that may never interact with the customer directly. It takes a focused effort to ensure that these employees understand the critical role they play in creating products or services that delight the customer. Many of these will go unnoticed by the customer, but their absence would certainly be noticed.
  • Finance: Here we include all of the various functions typically found in finance (accounting, payables, planning, reporting, compliance, etc.). Fair pricing, purchasing terms, collections processes, and transparency will all influence a customer’s opinion on their experience with your company.
  • Safety: This area can often be overlooked. While mostly preventive in nature, ensuring that your safety department is involved in all aspects of product and service design will ensure that customers do not encounter issues that may harm them or put them at risk which would certainly result in a poor experience with your company.
  • Sales: Traditionally the closest employees to the customer are those that work within sales. The individuals in sales typically have the greatest understanding of the wants and needs of the customer as well as direct feedback from the customers on recent interactions with the company’s products or services. It is critical that their insight is communicated to other departments in a manner that raises the collective awareness of the company as to the most critical areas of need that must be addressed to improve the customer’s experience.
  • Marketing: Marketing helps to control the brand image which ultimately factors into a customer’s overall experience and feelings towards the brand.
  • IT: Here we consider Information Technology (IT) to include externally-facing and internally facing efforts that involve technology (computers, systems, phones, etc.). IT is often overlooked when it comes to customer experience. However, think about the customer’s interaction with you on the internet, over the phone, or with in-store technology like registers and kiosks. It is often at these points that the customers run into issues dealing with your company in a seamless manner.

Feedback Points:

A variety of methods exist to get a complete view of how your customers view their experience. Each of these should be considered as you build your plans for improving your Customer Experience positioning.

  • Net Promoter Score® NPS®: The NPS® measurement has become a widely used measure and is based on the work of Fred Reichheld from Bain & Company. His research led to the creation of Net Promoter Score® question which can essentially be stated as “How likely are you to recommend “company name to friends or colleagues”. This type of question is typically presented to a customer shortly after a purchase a product or service from a company. The intent is to get an overall sense of the customer’s happiness with your company based on their most recent interaction. Typically the question requests a ranking from 0 to 10 from the customer (with 0 being not likely to 10 being very likely to recommend). Responses of 0-6 are considered detractors, 7-8 are passive, and 9-10 are promoters. It is customary to serve up a follow-up question to the respondent that solicits additional insights (in verbatim format) of what could have been done differently by the company to have improved the rating. Great reading for all leaders is “The Ultimate Question 2.0: How Net Promoter Companies Thrive in a Customer-Driven World” by Fred Reichheld.
  • Customer Effort Score: The CES is intended to measure the amount of effort a customer must spend to get an issue resolved. Typically a question is posed to customers after they have worked with a department in your company to resolve and issue (an example is a survey that you take after calling a customer service line). The CES can also be utilized to survey customers after they have purchased from you to find out their perceptions of how easy it was to do business with you. This can oftentimes identify for you points of Friction that may exist in your business model that is displeasing to customers. “Friction: The Untapped Force That Can Be Your Most Powerful Advantage” by Roger Dooley will you’re your leaders thinking internally about various ways in which your products perform or services are experienced that may be inefficient and frustrating for your customers.
  • Customer Satisfaction Score (CSAT): Is a tool used for understanding the forces that shape competition within an industry. It can be useful in guiding strategy adjustments to suit the competitive environment. Porter’s Five Forces was developed by Harvard Business Scholl professor Michael Porter. The five areas that are reviewed by companies to analyze an industry’s attractiveness are:
    • Rivalry Amount Competitors: Do competitors “play nice” or is it cutthroat
    • The threat of New Entrants: What barriers exist to keep out new competitors or what should you be working on to make it hard to do business in your space
    • The threat of Substitutes: A substitute is not always as a similar-looking business model. Taxi companies did not anticipate that customers would be so eager to try Uber, Lyft, and other ride-sharing platforms
    • Bargaining Power of Customers/Consumers: Access to information has given customers and consumers new leverage in dealing with you, how do you leverage this in your strategic decisions
    • Bargaining Power of Suppliers: How do you strategically approach your relationships with suppliers
    • CRM Notes: Your sales personnel and customer support personnel are continually collecting feedback from customers in their regular interactions. It is important to capture these insights in your Customer Relationship Management (CRM) platform. This will ultimately provide you with data that can be mined for patterns and issues that are common amongst your customers.
    • Social Media Monitoring: No company is immune to the impact of negative or positive social media and signs are that this will continue to be a critical area that should be closely monitored. Depending upon your business you may be impacted by Twitter, Instagram, Snapchat, Facebook, YouTube, TikTok, Pinterest, LinkedIn, and Reddit (and others are continually emerging). Social Media is not just about what is being said about your company, it can also be about what is being researched about your company. Some social media sites are used by your customers in researching your products or services (and thus they will have experience from their engagement).

Customer Experience Skills:

A person’s tendencies to be customer service oriented often are learned at a very young age. When looking to build the customer experience culture in your company the following should be considered:

  • Leadership Commitment: It is absolutely essential that the commitment to improving the customer experience be championed by the leader in your organization. This commitment should be well communicated and understood throughout the organization.
  • Customer Experience Strategy: It is critical that a formal strategy is developed regarding your Customer Experience plans. A Road-Map should be developed that outlines vision, objectives, and tactics for developing a company culture centered on improving the Customer Experience.
  • Improving the organization’s knowledge: There are a variety of ways to improve to the knowledge of your organization including formal training, a regular blog reviewing (such as jeannebliss.com/blog, samhorn.com/blog, blogs.oracle.com/author/blake-morgan, rogerdolley.com/blog), listening and sharing podcast from notable experts on customer experience and reading books such as:
    • Winning Her Business: How to Transform the Customer Experience for the World’s Most Powerful Consumers by Bridget Brennan
    • Excellence Wins: A Non-Nonsense Guide to Becoming the Best in a World of Compromise by Horst Schulze
    • Why Customers Leave (and How to Win Them Back): 24 Reasons People are Leaving You for Competitors by David Arvin
    • Friction: The Untapped Force That Can Be Your Most Powerful Advantage by Roger Dooley
    • The Customer of the Future: 10 Guiding Principles for Winning Tomorrow’s Business by Blake Morgan
    • The Convenience Revolution: How to Deliver a Customer Service Experience That Disrupts Competition and Creates Fierce Loyalty
    • The Customer Centricity Playbook: Implement a Winning Strategy Drive by Customer Lifetime Value by Peter Fader
    • Would you Do That to Your Mother: The “Make Mom Proud” Standard for How to Treat Your Customer by Jeanne Bliss
    • The Ultimate Question 2.0: How Net Promoter Companies Thrive in a Customer-Driven World by Fred Reichheld
    • The Power of Moments: Why Certain Experiences Have Extraordinary Impact by Chip Heath and Dan Heath
    • The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary by Joseph Mitchelli
    • Hug Your Haters: How to Embrace Complaints and Keep Your Customers by Jay Baer
    • Talk Triggers: The Complete Guide to Creating Customers with Word-of-Mouth by Jay Baer
    • Story Driven: You don’t need to compete when your know who you are by Bernadette Jiwa
    • It’s All About CEX!: The Essential Guide to Customer and Employee Experience by Jason S. Bradshay
    • Be Our Guests: Perfecting the Art of Customer Service by Theodore Kinni
    • The Experience Economy by Joseph Pine
    • Nincompoopery: Why Your Customers Hate You – and How to Fix It by John Brandt
    • More is More: How the Best Companies Go Farther and Work Harder to Create Knock-Your-Socks-Off Customer Experiences by Blake Morgan
    • The Relationship Economy: Building Stronger Customer Connections in the Digital Age by John R Dijulius III
    • Chief Customer Officer 2.0: How to Build Your Customer-Driven Growth Engine by Jeanne Bliss
    • Amaze Every Customer Every Time: 52 Tools for Delivering the Most Amazing Customer Service on the Planet by Shep Hyken

Making customers happy and providing them the best customer experience possible results in rewards beyond their immediate satisfaction. Having the best customer experience will help to solidify loyalty from your customer base that helps you improve and grow your business.

The post Customer Experience: It is Not Just About Satisfaction first appeared on Kamyar Shah.

Analytical Decisions: A Great Place to Start

0
0

Analytical Decisions

We live in a world overflowing with data. As a result company decisions no longer need to rely solely on the “gut” of the leaders, or opinions of the outspoken.

The goal of this article is to discuss Analytical Decisions: A Great Place to Start. Thoughts will be shared on how you can approach incorporating data-based decision making into your company culture that will actually help you to better compete based on analytics.

At the heart of any company wishing to get better at Analytical Decisions is the DELT2A2 framework which has its origins in the work by Tom H Davenport. The following highlights the key components that companies should address:

It begins with identifying the Data that will be leveraged to provide insights into the areas of opportunity and where the business should be focused. In many instances, data may not exist and the company needs to find ways to gather data, which can then be turned into information to be analyzed, which can then be turned into insights.

It is critical that all departments across the Enterprise are coordinating well to ensure resources related to analytics (people and tools) are being properly coordinated. Most companies or divisions that choose to compete on analytics have their employees who perform analysis and reporting in a centralized support function to leverage talent, provide cross-training and backup, and provide for growth opportunities.

Any company choosing to compete on analytics will need senior-level Leadership commitment, without this support the proper culture will not flourish and data-supported decision making will not be adhered to.

The organization must have processes in place to Target the initiatives with the best opportunities so that resources can be focused and prioritized where we have the highest potential. A governance process must be in place to ensure all initiatives (where possible) are supported by analytics.

Securing the proper Technology tools to run the analysis needed is foundational to the success of competing on analytics.

Resourcing the right Analyst (depth and breadth), and ensuring their continued growth is a cornerstone to a successful analytics implementation. It is critical that a company identify the proper level of analytical skills needed to conduct the types of analysis that are needed. Not every situation requires an individual with a PhD in mathematics.

Finally, the company must assess the various types of Analysis Methods that it should be utilized to compete in their marketplace.

Analytical Decision-Making

Analytical decision-making is one of four styles of decision making typically used by leaders. The other styles are directive, conceptual, and behavioral. In addition, consultative and consensus may also be used.

Steps to incorporating analytical decisions into your business

Numerous steps are involved to incorporating analytical decision making into your business practices and culture:

  • Senior Leader Commitment: The style of your most senior leader will set the tone for the rest of the organization. If you wish to embed analytical decision-making into your culture then make sure your most senior leader believes in the value of analytical decision-making and practices it.
  • Understanding your company’s analytical maturity: It is helpful to assess where you are today with your analytical capabilities. Many models exist to assess where you are at. You will find the following common stages of analytical maturity.
    • Descriptive Analytics: This is often considered data on what happened. It is a baseline capability that includes reports
    • Diagnostic Analytics: This is when you take raw data and utilize various analytical methods to answer “Why did something happen”. Tableau built a business from being able to drill-down into your data, mine massive amounts of information, and identifying correlations.
    • Predictive Analytics: Prescriptive Analytics builds on diagnostics to make predictions of what may happen based on existing data factors
    • Prescriptive Analytics: Prescriptive Analytics builds upon predictive to evaluate alternatives and identify what is the best that can happen.
    • Autonomous Analytics: Machine-learning can be incorporated when large amounts of data are available and self-learning algorithms can be applied to provide more insight or direction
  • Determine which analytical techniques to use: The depth of analytical techniques you use will be highly dependent on your business and the skills of your personnel. The following techniques should at least be understood and reviewed by your senior leaders to determine which you may wish to use. These are outlined and explained further in the great book “Competing on Analytics: The New Science of Winning” by Thomas H. Davenport and Jeanne G. Harris.
    • Internal Process Evaluation
      • Activity-based costing (ABC). Allocating costs amongst activities by using models that incorporate activities, materials, resources, and product-offering components and then optimization based on cost and prediction of capacity needs.
      • Bayesian inference (e.g., to predict revenues). A numerical estimate of the degree of belief in a hypothesis before and after evidence has been observed.
      • Combinatorial optimization (e.g., for optimizing a product portfolio).
      • Constraint analysis (e.g., for product configuration). The use of one or more constraint satisfaction algorithms to specify the set of feasible solutions. Constraints are programmed in rules or procedures that produce solutions to particular configuration and design problems using one or more constraint satisfaction algorithms.
      • Experimental design: For website analysis
      • Future-value analysis: The decomposition of market capitalization into current value and future value, or expectations of future growth.
      • Genetic algorithms: Used for decryption/ code-breaking or product engineering/ design such as scheduling satellite communications, optimally loading cargo containers, and optimizing delivery routes.
      • Monte Carlo simulation: Used in project valuation using a computerized technique to assess the probability of certain outcomes or risks over multiple trials and comparing the outcome with predefined probability distributions.
      • Multiple regression analysis: Used to determine how non-financial factors affect financial performance.
      • Neural network analysis: Useful in predicting needed factory maintenance in which systems are initially “trained,” or fed large amounts of data and rules about data relationships.
      • Simulation: Used in pharmaceutical “in silico” research by manipulation of parameters using mathematics and/ or rule bases to model how different values would generate a result.
      • Textual analysis: Assesses text (such as transcribed call center discussions or textual data from a survey or social media) for customer sentiment. Yield analysis: Using means, median, standard deviation, etc. to understand yield volume and quality.
  • Analysis of Supply Chains
    • Capacity planning: Optimizing the capacity of a supply chain or its elements; identifying and eliminating bottlenecks.
    • Combinatorics: A sophisticated mathematical technique optimizes components in a supply chain.
    • Demand–supply matching: Determining the intersections of demand and supply curves to optimize inventory and minimize overstocks and stockouts.
    • Location analysis: Optimization of locations for stores, distribution centers, manufacturing plants, and so on.
    • Modeling: Creating models to simulate, explore contingencies, and optimize supply chains.
    • Routing: Finding the best path for a delivery vehicle around a set of locations.
    • Scheduling: Creating detailed schedules for the flow of resources and work through a process.
    • Simulation: Supply chain simulations model variation in supply flows, resources, warehouses, and various types of constraints. They allow for both optimization and visualization of complex supply chains.
  • Analysis of Marketing
    • CHAID: A statistical technique used to segment customers on the basis of multiple alternative variables.
    • Conjoint analysis: A conjoint analysis might be used to determine which factors—price, quality, dealer location, and so on—are most important to customers who are purchasing a new car.
    • Econometric modeling: Modeling to gain insight into complex market trends and the variables that affect market demand, supply, and costs.
    • Lifetime value analysis: Assessing the profitability of an individual customer (or a class of customers) over a lifetime of transactions.
    • Market experiments: Using direct mail, changes in a website (known as A/ B tests), promotions, and other techniques, marketers test variables to determine what customers respond to most in a given offering.
    • Multiple regression analysis: The most common statistical technique for predicting the value of a dependent variable (such as sales) in relation to one or more independent variables (such as the number of salespeople, the temperature, or the day of the month).
    • Price optimization: Determining the price elasticity, or the response (changes in demand) of the buyer to increases or decreases in the product price.
    • Search engine optimization (SEO): Statistical methods and activities designed to improve a website’s ranking in search engines such as Google.
    • Support vector machine (SVM): This machine learning method uses training data to classify cases into one category or another. It is often used for customer segmentation and churn analysis.
    • Time-series experiments: These experimental designs follow a particular population for successive points in time and are used to determine whether a condition that applied at a certain point led to a change in the variables under study.
    • Uplift modeling: A predictive modeling technique that directly assesses the incremental impact of promotional activity on a customer’s behavior.
  • Determining Analytical Team Structure: There are a variety of ways to structure your team. Will you have the team reporting to finance, will analysts reside within departments, will the analysis be a function within your IT department, or will analytics be a stand-alone group? Regardless of the structure, you choose it will be important to ensure that you communicate the role that analysts play in the organization and how their input affects decisions.
  • Hiring the Analytical Team: Since analysts can be very technical in their skill sets it is encouraged that you fully identify the different types of analysis that you feel will be employed and determine the specific skills and competencies required to fulfill these types of analysis. Depending upon the existing capabilities within your organization you may need to consult with exterior experts to ensure that you recruit for the proper skills and competencies.
  • Securing the Tools: The types of applications and methodologies you use will ultimately be driven by the types of analytical techniques you utilize and the skills of the team you hire. A listing of resources and options is to exhaustive to share here. Your analytics team and outside guidance can guide the selection of the tools you will need.
  • Books: Reading about analytics can often be dry and academic. However, it is helpful for senior leaders to have a baseline understanding and appreciation for concepts and usage. The following list of books offer some insightful reading:
    • Competing on Analytics: The New Science of Winning by Thomas H. Davenport and Jeanne G. Harris
    • Naked Statistics: Stripping the Dread from the Data by Charles Wheelan
    • The Next America: Boomers, Millennials, and the Looming Generational Showdown by Paul Taylor
    • Astroball: The New Way to Win It All by Ben Reitler
    • Keeping Up with the Quants: Your Guide to “Understanding and Using Analytics by Thomas H. Davenport
    • Linear Regression and Correlation: A Beginner’s Guide by Scott Hartshorn
    • Freakonomics: A Rogue Economist Explores the Hidden Side of Everything by Steve D. Levity and Stephen J. Dubner
    • Big Data: A Revolution That Will Transform How We Live, Work, and Think by Viktor Mayer-Schonberger and Kenneth Cukier
    • The Triple Package: What Really Determines Success by Amy Chua and Jen Rubenfeld
    • Future Smart: Managing the Game-Changing Trends That Will Transform Your World by James Canton
    • The Connection Algorithm: Take Risks, Defy the Status Quo, and Live Your Passions by Jess Warren Tevelow
    • Generation iY: Secrets to Connecting With Today’s Teens & Young Adults in the Digital Age by Tim Elmore
    • Y-Size Your Business: How Gen Y Employees Can Save You Money and Grow Your Business by Jason Ryan Dorsey
    • Customer Data Integration: Reaching a Single version of the Truth by Jill Dyche and Evan Levey
    • The Little SAS Book by Lora D. Deheiche and Susan J. Slaughter
    • Analytics: Data, Science, Data Analysis and Predictive Analytics for Business by Daniel Covington
    • R for Everyone: Advanced Analytics and Graphics by Jared P. Lander

As computers become even more powerful, as data continues to proliferate, and as automation continues to advance it will become even more critical for companies to incorporate analytic decisions into their critical initiatives and day-to-day operations.

The post Analytical Decisions: A Great Place to Start first appeared on Kamyar Shah.

PMO: Getting Your Project Management Office Started

0
0

Project Management Professional

An emerging trend over the past 10-20 years (certainly in the information technology areas of a company) is to implement project management (PMO) office to help companies deliver on strategic plans. Project management has been around for centuries in various forms. As a discipline, it gained in importance in 1968 when the Project Management Institute (PMI) was formed to provide guidelines and insights on proper project management. PMOs have become more commonplace in large companies as the need to formalize practices is necessary to improve the efficiency and effectiveness of project management.

The goal of this article is to discuss PMO: Getting Your Project Management Office Started. Insights will be reviewed that will help you prepare your organization for the implementation of your project management office.

Types of Project Management Office (PMO) Structure

The Project Management Institute (PMI) outlines three different PMO structures typically found in organizations in their book the PMBOK Guide: A Guide to the Project Management Body of Knowledge – Sixth Edition.

Early on in your PMO efforts, you will want to decide the type of structure you want for your PMO:

  • Supportive: In this structure, the PMOs role is to provide consultative services to internal project managers and departments. The PMO will provide templates, best practices, access to information, and lessons learned from other projects. The control wielded by the PMO on projects is low.
  • Controlling: This PMO structure provides support to internal project managers and departments while requiring a level of compliance that results in the PMO exercising moderate control of projects to ensure some level of consistency and standards.
  • Directive: In some instances, you will want your PMO directly controlling projects. This level of structure results in ensuring that all projects have the highest level of project management expertise available within the organization. However, it does result in departments losing some level of the direct control of projects and can result in the highest level of change management

Your decision on the structure will have varying effects on various stakeholders throughout the organization.

Project Management Office First Steps:

The following stakeholders should be considered at the beginning of your efforts:

  • Senior Leader Sponsorship: It is critical that your most senior leader understands and is supportive of a PMO structure. Your PMO will involve change management that other leaders in the organization will be looking to the most senior leader to support and emulate in their practices. A senior leader who says they want a PMO to help streamline and standardize efforts, but who does not follow the governance standards, will undermine the efforts of your PMO
  • Senior Leadership Team Commitment: Your most senior leaders will carry the message of the value of the PMO in their day-to-day interactions with their senior leader peers and their team members. Early on in the implementation, it is recommended that senior leaders be educated on the PMO, its purpose, and how it will function. This will be a time to answer the questions about the structure and changes that may be necessary to operate within a PMO structure.
  • Project Managers: Anyone serving in the capacity of a project manager will need to be fully trained on any changes that the PMO structure will bring to their work practices.
  • Point Person: Regardless of the structure of PMO you choose (supportive, controlling, or directive) you will want to have one person who has responsibility for the PMO implementation. It is recommended that the PMO be the primary responsibility of the individual. Depending on the size of your organization and the structure you choose this person may have other roles supporting them with the PMO. It is recommended that this person be a certified Project Management Professional (PMP®) to help ensure that the various practices outlined by the Project Management Institute (PMI®)
  • Project Members: Any project is made up of various subject matter experts. Each of these individuals will be impacted by the implementation of a PMO. It is important to consider the types of communication, training, and support that these individuals may need as you implement your PMO.
  • Human Resources: Human resources will be critical in helping to hire a point-person for running the PMO. There are specific skills and competencies that human resources will want to ensure that any point person meets (such as great communications, strong business acumen, and project management skills – are just a few). Human resources will also be involved in the assessment of existing personnel to identify any skill gaps that may need to be addressed through training or coaching to bring the collective understanding of project management to the entire organization.
  • Training Department: The training department should be engaged to develop any required training programs or materials that are necessary to raise the project management skill and competency levels of key individuals. Vary programs may be necessary depending on the need to train individuals on project management skills, a team member on project team collaboration skills, and training for project sponsors on their roles in projects.
  • Communications Department: Since there is so much change-management that occurs with the implementation of a PMO you will want to engage with your internal experts on communication. Having these individuals involved from the beginning will help you in developing an effective communication plan.

Systems Support

A critical component of a successful project management office (PMO) structure is a Project Portfolio Management (PPM) platform which also contains the capability to manage projects. PPM platforms come in a variety of sizes and styles and can range from ~$100,000 to over $1,000,000 per year. Understanding the needs of your project managers and other stakeholders will help you select the right system that meets your needs at an optimal cost. It is recommended that a formalized request for proposal (RFP) be conducted which includes the following considerations for the platform.

Platform Features and Functionality

  • User Experience: Evaluate the simplicity for the users and does it have a web-based interface.
  • Configuration/Flexibility: Is the interface configurable to meet the user’s needs and what are the product rules that must be adhered to.
  • Data Management: All projects will involve the need for comments, attached documents, links, etc. This may be in addition to being able to import and export information. Ensure that the PPM meets your needs
  • Document Management and Collaboration: Various projects entail the need to review materials related to the project. Does the system allow you to comment, edit, revise, etc. these documents.
  • User Administration: You will need one to several administrators that are familiar with the overall system and it is important that the PPM is intuitive and resources exist to support the admins (whether in the platform or as a support group outside of the platform).
  • Displays and Reporting: Can the system create dashboards that are accessible by different user types and can dashboards be created to individual’s needs. It is also critical that the PPM provides overall views of project health for executive-level views.
  • Communication and Collaboration: Any PPM should provide the means for seamless social communication within the platform and either a project-specific or general.
    Project Evaluation and Portfolio Management
  • Issue/Risk Analysis and Management: A key management area for projects in Risk Identification. The PPM should have the ability to identify risks, outline preventative/corrective actions, and allow for tracking of progress against the risk mitigation
  • Project Evaluation: A key reason for having a PMO is the ability to evaluate various projects against your strategic plan and ultimately make choices on which projects to work on. Does the PPM give you the ability to do this?
  • Project Valuation: The PPM should have the ability to capture the value of the project (financial and otherwise).
  • Prioritization and Portfolio Optimization: Many PMOs utilize a “Greenlight Process” which is a systematic means to evaluate projects and you will want the PPM to manage this process.

Project Planning and Project Management

  • Project Planning and Management: The user interface should have the ability to show planned versus actual performance, provide roadmaps of projects, allow for Gantt chart views, etc.
  • Portfolio Management: It is important to be able to group projects into portfolios and the PPM should be able to provide useful functionality to all for this.
  • Workflow Management: Many projects follow consistent workflows which should be able to be managed in the PPM.
  • Project Data and Status Reporting: The PPM should allow project managers to capture, compute, and report on costs, hours, resource consumptions, etc. as it relates to the project.
  • Financial Management and Budgeting: Your finance department will want to ensure that the PPM is able to provide them with the reporting they may need for financial updates. In some cases, a PPM may even be able to interface with your financial systems.
  • Project Close-Out and Knowledge Management: Does the PPM support the verification of project deliverables and acceptance criteria and capturing of lessons learned.

Resource Management and Demand Planning

  • Resource Assignment, Scheduling, and Management: Some PMOs will want to integrate their PPM with the time management of people resources and other assets/resources necessary for a successful project. If you choose a person to work on a project do you have the ability to see their availability (as it relates to other projects they may be working on or their day-to-day job commitments)? A common efficiency issue for projects is the bandwidth and availability of the people resources.
    Demand Management: Your PPM should allow for an approval process that allows for approvers to understand the overall impact of the project commitments (people, hours, resources, etc.) and how this inter-relate to your strategic goals so that data-based decisions can be made on project actions
    Time Tracking: In some cases, you may even want the ability to track real-time work efforts against specific projects. For this capability, you would want to make sure that the PPM has the capability for individual users to capture their time in the system.

Other Steps

Additional steps will be critical to the implementation of your PMO

  • Governance Plan: One of the key components of your PMO will be the governance process you put in place as they relate to project initiation, project approval, resource approvals, communications expectations, etc. It will be important that the governance components you decide on are agreed to by key stakeholders.
  • Communications Plan: The implementation of a PMO requires numerous changes to an organization. To ensure that everyone is aware of the vision, purpose, and plans for your PMO you will want to partner with your communications department on the PMO implementation plan. This allows for a clear understanding by the impacted stakeholders and will ensure that questions are posed by those who will be engaged with the activities of the PMO.
  • Training: It is critical that the PPM you choose is properly trained in with the various stakeholders within the organization. This training plan for your PPM will likely involve various user types that will need to be taken into consideration and be properly budgeted for.
  • Books:
    • Project Management can be quite formalized and the implementation of a PMO adds additional structure to your overall project efforts. The following resources can provide helpful insights to project management for those team members who will be most closely involved in the implementation of your PMO.
    • Sprint: Solve Big Problems and Test New ideas in Just Five Days by Jake Knapp
    • PMP PMBOK: Project Management Professional Study Guide by Ralph Cybulski
    • Simple PMP: Exam Guide Updated for the PMBOK Guide Sixth Edition by Phil Martin
    • PMBOK Guide: A Guide to the Project Management Body of Knowledge – Sixth Edition by PMI

You will find that the implementation of a Project Management Office (PMO) will prove to be one of the most effective means for to improve the execution of your projects and initiatives in reaching your company’s strategic goals.

The post PMO: Getting Your Project Management Office Started first appeared on Kamyar Shah.

Project Management: An Integral Component to Company Success

0
0

Project Management

Every company has numerous projects occurring at any given time. Core project management skills are necessary to ensure that projects are run efficiently and effectively. Project management has been around for centuries in various forms. As a discipline, it gained in importance in 1968 when the Project Management Institute (PMI) was formed to provide guidelines and insights on proper project management.

The goal of this article is to discuss Project Management: An Integral Component to Company Success. Ensuring the utilization of key project management guidelines will help to ensure the success of projects and the resulting success of the business.

Project Management Professionals

The Project Management Institute (PMI) is the gold-standard of guidance on properly running projects. This article will outline some of the key guidance that is provided by PMI in the PMBOK Guide: A Guide to the Project Management Body of Knowledge – Sixth Edition

Your company may not require a certified Project Management Professional (PMP®) each of your projects, however, it is helpful to ensure that the people you do have running projects have at least been exposed to some of the fundamentals of project management.

The person who is identified as the project manager for a particular project will have the responsibility to lead the team of individuals that will be working together to achieve the project objectives. This person will need to be effective at building relationships and communicating with the various stakeholders involved in a project (those on the team and those who are not). Each project manager should possess an appropriate level of the following skills to meet the needs of the project size:

  • Leadership
  • Technical Project Management
  • Strategic and Business Management

Larger and more complicated projects will necessitate an increasing level of skills and experience in each of these areas.

A Project Management Framework:

There are several factors that should be in place to ensure that your company has the framework to enable proper project management, which will include:

  • Senior Leadership Commitment: As a company looks to formalize their commitment to utilizing project management standards it is important to ensure that the senior leadership is in support of this effort and will hold the organization accountable to using project management standards on projects that are strategic in nature or are in support of key objectives.
  • Project Managers: Anyone serving in the capacity of a project manager will possess the skills or will receive training on the necessary project management skills before they perform as a project manager.
  • Human Resources: Human resources hiring managers have been engaged and understand the skills and competencies that should be looked for in any position that may have responsibility for running projects. Human resources may also be involved in the assessment of existing personnel to identify any skill gaps that may need to be addressed through training or coaching.
  • Training Department: The training department should be engaged to develop any required training programs or materials that are necessary to raise the project management skill and competency levels of key individuals. Vary programs may be necessary depending on the need to train individuals on project management skills, team members on project team collaboration skills, and training for project sponsors on their roles in projects.

Grouping of Project Management Activities

The sixth edition of A Guide to the Project Management Body of Knowledge (PMBOK® Guide) outlines the five groupings that project management activities will occur in. These are important to understand as it helps a project manager associate the various activities with. The Project Management Process Groups are defined as follows by the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Sixth Edition, Project Management Institute Inc., 2017, page 25:

  • Initiating Process Group: These are the processes that help define a new piece of work – either a completely new project or the phase you are about to begin. They ensure you have the authority to proceed.
  • Planning Process Group: These processes help you define objectives and scope out the work to be done. They also encompass all the workaround planning and scheduling tasks. Again, they can cover a complete project or just the phase you are working on right now. Or you might be closing one phase and planning the next in parallel.
  • Executing Process Group: You do these processes as you carry out your project tasks. This is the ‘delivery’ part of project management, where the main activity happens and you create the products.
  • Monitoring and Controlling Process Group: These processes let you track the work that is being done, review, and report on it. They also cover what happens when you find out the project isn’t following the agreed plan, so change management falls into this Process Group. You’ll run these processes alongside those in the Executing Group (mainly, but alongside the other Groups too) so you monitor as you go.
  • Closing Process Group: Finally, these processes let you finalize all the tasks in the other Groups when you get to the point to close the project or phase.

Project Management Knowledge Areas

The Project Management Knowledge Areas contain all of the various steps and activities that commonly occur throughout the life of the project. Each of these knowledge areas can be organized additionally into the Process Group in which they occur. A google search of “project management knowledge areas by process groups” will provide numerous resources that are available on this subject.

Each Project Management Knowledge Area has anywhere from three to seven activity groups that each contain specific actions that are always grouped into either

  • Inputs: These are resources that are used by the activity group to manage an area of the projects. In many instances, the inputs come from the output of another knowledge areas output
  • Tools & Techniques: There are a variety of tools and techniques used in project management and each activity area uses a variety of tools to effectively complete the objectives of the knowledge areas activity group
  • Outputs: These are the specific results that are completed or produced by specific knowledge areas activity group actions. These outputs often times are used as inputs for another knowledge areas activity group

A unique characteristic of the knowledge area activity groupings is that often-times activities are occurring simultaneously, it is not a solely linear process. That is why good project management skills are developed over time and ultimately may be unique to the types of projects and protocols within a specific company.

It will benefit project managers to also become familiar with the various knowledge areas of project management which are defined as:

  • Project Integration Management: This area is a backbone of project management and includes the seven activity groups of :
    • Develop Project Charter
    • Develop Project Management Plan
    • Direct and Manage Project Work
    • Manage Project Knowledge
    • Monitor and Control Project Work
    • Perform Integrated Project Management
    • Close Project or Phase
  • Project Scope Management: To avoid a project become unwieldy and stretching beyond given resources and requirements the project must be properly defined and scoped. The activity groups in this area are:
    • Plan Scope Management
    • Collect Requirements
    • Define Scope
    • Create WBS (Work Breakdown Structure)
    • Validate Scope
    • Control Scope
  • Project Schedule Management: The schedule for your project ultimately impacts scheduling needs, the timing of activities, and funding requirements and consist of the following activity groups:
    • Plan Schedule Management
    • Define Activities
    • Sequence Activities
    • Estimate Activity Durations
    • Develop Schedule
    • Control Schedule
  • Project Cost Management: Operating within the costs allocations for your project is typically a key performance indicator for a project manager and involves the following activity groups:
    • Plan Cost Management
    • Estimate Costs
    • Determine Budget
    • Control Costs
  • Project Quality Management: Every project has certain measures of quality that are targeted to be achieved to ensure the satisfaction of the key stakeholders or customers. Key activity groups in quality management are:
    • Plan Quality Management
    • Manage Quality
    • Control Quality
  • Project Resource Management: Projects vary greatly in complexity and as a result can vary greatly in the types of people that are needed to fulfill the needs of the project and can vary in the types of equipment, materials, facilities, and supplies that may be necessary. The activities to manage resources properly fall into the following resource management activity groups:
    • Plan Resource Management
    • Estimate Activity Resources
    • Acquire Resources
    • Develop Team
    • Manage Team
    • Control Resources
  • Project Communication Management: Critical to a project’s success is ensuring that various members on a team, key stakeholders, and external customers are communicating properly. The activities to ensure that everyone is communicated to efficiently and effectively fall into the following activity groups:
    • Plan Communications Management Plan
    • Manage Communications
    • Monitor Communications
  • Project Risk Management: Every project has risks that can affect costs, timelines, availability of resources, quality, scope, etc. Each project should contain an effort to brainstorm the risks that may impact the project and the degree to which this impact can affect the project. The various activities involved in risk management are grouped into the following activity areas:
    • Plan Risk Management
    • Identify Risks
    • Perform Qualitative Risk Analysis
    • Plan Risk Responses
    • Implement Risk Responses
    • Monitor Risks
  • Project Procurement Management: In many projects, the work surrounding the procurement of certain resources may be handled by a group(s) outside of the direct project. However, a project manager will want to be aware of and involved in various activities that occur in the following activity groups:
    • Plan Procurement Management
    • Conduct Procurements
    • Control Procurements
  • Project Stakeholder Management: Great project managers are very good at working with the various types of stakeholders that make up any project. Project managers should ensure that they are very familiar with the various components that make up each of the following activity groups:
    • Identify Stakeholders
    • Plan Stakeholder Engagement
    • Manage Stakeholder Engagement
    • Monitor Stakeholder Engagement

Additional Considerations

As you build and improve your project management capability within your organization you may wish to consider the following:

  • Systems Support: If you do not have a Project Management Office (PMO) that has an approved Project Portfolio Management (PPM) platform which contains the capability to manage projects then you will likely need some type of system dedicated to the managing of projects. Project Management platforms come in a variety of sizes and styles and many systems are geared towards meeting the specific needs of certain types of projects. Some systems are more general in nature and have the flexibility to be configured, customized, or utilized in a manner that meets different project manager needs. It is suggested that you take the time to assess the needs of your various project managers before beginning your project management platform selection process. Project Management platforms can range from a few thousand dollars a year to over $100,000. Understanding the needs of your project managers and other stakeholders will help you select the right system that meets your needs at an optimal cost. It may be worth investing in an external project management expert that can help you assess your needs and the right systems solutions
  • Project Management Office: Depending upon the size of your organization and the complexity of your projects you may wish to research implementing a Project Management Office (PMO). Various structures and sizes exist that may greatly improve your success in managing the various projects occurring in your organization.
  • Books: Project Management can be quite formalized. The following resources can provide helpful insights to project management n for those team members who will be most closely involved in the implementation of your PMO.
    • Sprint: Solve Big Problems and Test New Ideas in Just Five Days by Jake Knapp
    • PMP PMBOK: Project Management Professional Study Guide by Ralph Cybulski
    • Simple PMP: Exam Guide Updated for the PMBOK Guide Sixth Edition by Phil Martin
    • PMBOK Guide: A Guide to the Project Management Body of Knowledge – Sixth Edition by PMI

Improving your efficiency and effectiveness at project management is an area that can greatly improve your ability to execute your strategic plan, deliver value to your stakeholders, and improve the profitability of your company.

The post Project Management: An Integral Component to Company Success first appeared on Kamyar Shah.

Business Process Improvement: Identifying What Needs to be Fixed

0
0

Business Process Improvement

Regardless of the age or size of your organization, it is likely you have one too many business processes that need to be improved. Identifying these areas of your business that need to be improved can prove to be difficult. Though in some cases it might be very apparent what needs to be changed. Finding and fixing business processes that are not as efficient and effective as they could be will prove to be a key component of the success of your company.

The goal of this article is to discuss Business Process Improvement: Identifying What Needs to be Fixed. The following insights will help companies who are committed to rooting out inefficient and ineffective processes within their organization.

Business Process Improvement (BPI) Defined

Business processes exist in every company and are either internal in nature, externally focused on customers, or a hybrid impacting internal personnel and external customers in the same process.

Thus business process improvement (BPI) is the exercise that a management team undertakes to improve the efficiency, effectiveness, accuracy, or satisfaction of a process that impacts employees or customers and when adjusted improves the KPIs identified for the process. Various tools and techniques are used to analyze the business process and identify areas of opportunity.

Since business processes develop and change over time it is worth assessing the departments within an organization to identify the key business processes that impact employees and customers.

When identifying business processes it is helpful to notate the time and costs that are involved in fulfilling the business process. This will help to prioritize which business processes can yield the greatest savings if improved.

Getting started on identifying a business process that needs to be improved

The following are some general considerations that should be given when beginning to identify business processes that may need improvement:

  • Senior Leadership Commitment: Senior leaders need to set the tone and culture for identifying business process improvements. Often the people being asked to analyze and dissect a business process are the same people who were involved in developing the process. It takes great leadership and management capabilities to avoid offending these individuals for work invested in developing processes that they may be asked to change?
  • Employee Surveys: In an anonymous survey your employees will be very candid with you about the business processes (either internally facing or externally focused) that cause them concern. A well-designed survey will result in the specific identification of concerns and can elicit ideas for resolution. It is important that the results of a survey like this are summarized and communicated to the employees. Identifying the action that is planned to be taken against each issue will help to build confidence and trust within your organization
  • Customer Surveys: A company can use information from an existing customer survey program or conduct an independent survey with customers to elicit feedback on areas of improvement needed from the customer’s perspective. Customers tend to be willing to invest a small amount of time in helping to improve the products or services they buy. A properly designed survey that is quick and easy to complete by the customer can supply a great amount of insight into the areas of opportunity that you have. These surveys can be categorized and issues prioritized. It is recommended that communication continues with your customer base on what has been identified for improvement and what the company is doing to address the concerns.
  • Employee Roundtables: Deeper insights can be acquired on business processes needing to be improved by conducting round tables with employees involved or impacted by specific business processes. Having a group discussion/brainstorm can result in understanding nuances that will not come out in a survey. In addition, individuals will build off of each other’s insights and experiences with the business process and this typically leads to better solutions.
  • Customer Focus Groups: Pulling customers together for focused discussions by a qualified individual facilitator can lead to unexpected insights that otherwise would not be evident from a survey along. Like an employee roundtable, the customers will engage in discussions/brainstorming that will identify nuances that if addressed can greatly improve the process and lead to improved customer satisfaction. In some cases your companies cost may go up, however, your revenue may go up due to increased purchases or reduced customer churn.
  • Senior Leadership Communication: It is helpful to have regular discussions amongst the leadership team of the current business process that is being evaluated for improvement. This can occur at weekly staff meetings in the form of brief updates. This regular communication will foster idea-sharing and further develop the culture as it relates to the willingness to improve processes and eliminate any sacred cows.
  • The BPI Champion: Who will be your champion for business process improvement (BPI) across the organization? This person is often the most senior leader or the Chief Operating Officer (COO). It may also be specific individuals in departments. Depending on your organization you may want a centralized BPI effort versus departmental efforts. Regardless of your approach, it is important that the organization as a whole understands who the key people responsible for leading business process improvements (BPI) are and what their level of authority for making change is.
  • How big is the BPI: Some business processes improvements (BPIs) are small and relatively self-contained in a department, while others are complex, far-reaching, and expensive to implement. Depending on the size of the BPI you may need dedicated resources to implement the necessary changes to the process

Models to Assist:

There are many ways to analyze your business and processes when conducting a business process improvement. The following are some brief descriptions of techniques you may consider using once you have identified potential processes needing improvement.

  • Six Sigma. The gold standard of process improvement, Six Sigma methodologies are immersive, highly structured, very analytic, and consistently successful in improving processes. It is recommended that companies wishing to implement full six sigma approaches to their BPI efforts hire individuals with six sigma experience and accreditation.
  • DMAIC Methodology. Many companies will use DMAIC which is a core tool used in Six Sigma projects. DMAIC stands for:
    • Define: Define the process and improvement opportunity from a business and customer perspective
    • Measure: Identify critical measures, baseline process and operational performance to quantify the opportunity
    • Analyze: Analyze process performance to understand pain-points and determine/validate root causes
    • Improve: Develop improvement solutions to address issues/opportunities and implement verify the solution(s)
    • Measure: Measure the solution with an associate control plan to achieve targeted outcomes and benefits
  • ACTTIVE™ Business Process Improvement. This is a model used by Twelve Oaks Advisors and stands for
    • Articulate: Make it simple
    • Communicate: Make it clear
    • Timebound: Make it Quick
    • Test/Trial: Make it Real
    • Implement: Make it happen
    • Validate: Make it stick
    • Enhance: Make it better
  • Process Mapping: Any processes can be broken into its individual steps. By doing this it often becomes evident steps that are either miss-aligned in sequence or which are taking too long
  • Fishbone Diagrams: Applying this technique (which is a cause and effect analysis) will lead to a clearer understanding of the flow of your process and areas needing improvement.

Business Process Improvement: Eliminating Waste to Add Value

The goal of your analysis should be to identify any was factors that do not add any value to your employees or customers. Examples to think about are:

Waste: Wasteful activities are found throughout systems and some examples are (but not limited to):

  • Refresh times of web pages: A website that takes an extra 1 second to load on a site that receives 1 million visits a year results in a collective 277 hours of lost productivity to those visiting your site.
  • Defects in products: Defects can either those that are identified at a quality assurance (QA) step or defects that end up being identified by a customer. Those identified by a customer and requiring a resolution are costly in nature. Additionally, quality defects may not be identified at QA or may not be discovered by the customer. Ultimately these defects can impact the performance of the product and the customers’ expectations, which can lead to long-term impacts on the customer relationship. Unnecessary steps: Consider the frustration and time lost to the steps you must often take to resolving a product or service issue with a company
  • Waiting for something: Amazon has forever adjusted our expectations of how long we are will to wait for something. Finding ways to improve your speed to market with any product or service has become essential to the survival of companies
  • Inefficient use of peoples time: Downtime is costly, mapping processes and fine-tuning steps ensures that time-waste is minimized
  • Inefficient use of peoples talents: It is also important to ensure that the right people are working on the right efforts
  • Unnecessary components or features: This can be difficult to identify and where fully understanding your customers’ needs and how they use your product or service will help lead to the removal of anything that is not necessary.
  • Layout: If you are a store is the layout of your store conducive to how people shop for the items they purchase, for internal functions are your warehouses organized in a logical manner that reduces wasteful movements and travel, if you are a manufacturer are the steps to your process designed in an efficient manner, if you are an office environment is the environment conducive to the type of work being performed. If it is a web-page does the customer experience reflect mindful attention to making it easy and efficient for them to find, research, evaluate, and purchase what they are seeking?

Value: Value is often measured in the eyes of the beholder. Thus, a business process may work for some customers and not for others. A key consideration is in determining what is most needed/desired by the targeted customer base, is it:

  • Lower price
  • Higher quality
  • More pleasant experience
  • A greater sense of safety

Implementation:

The success of your BPI efforts is contingent on how well you communicate your effort and training in the requirements you have for the system. Outlined below are some typical features you may wish to assess vendors against.

  • Communication: It is critical to communicate any changes you are making to processes clearly to those impacted by any changes (internally or externally). Leverage those experts within your company who are proficient in change management to ensure that the right information is being communicated to the right stakeholders at the right time.
  • Training: Depending on the complexity of the changes you are making to an existing process you will want to consider the appropriate level of training that will be necessary to ensure that employees and customers fully understand the new process. People inherently become accustomed to following a process even if it inefficient and getting them used to a new process will take some time.
  • Educating: Business Process Improvement (BPI) can become quite elaborate and it is important that your leaders have a common base of understanding of approaches to making BPI changes. The following resources are beneficial to review before undertaking critical BPI efforts:
    • The Power of Business Process Improvement by Susan Page
    • BPM CBOK® Version 4.0: Guide to the Business Process Management Common Body of Knowledge
    • Fundamentals of Business Process Management by Marlon Dumas, Marcello La Rosa, Jan Mendling, and Hajo A. Reijers
    • Improving Business Processes: Expert Solutions to Everyday Challenges by Harvard Business Review
    • The Ultimate Guide to Business Process Management: Everything You Need to Know and How to Apply it to Your Organization by Theodore Panagacos
    •  Friction: The untapped Force That Can be Your Most Powerful Advantage by Roger Dooley

Implementing business process improvements (BPIs) can lead to some of your greatest cost-saving or revenue-generating improvements. Applying a disciplined approach that includes assessing your areas of opportunity, analyzing your processes, and developing an implementation plan will lead to the successful implementation of transformational changes that will impact your organization in positive ways for years to come.

The post Business Process Improvement: Identifying What Needs to be Fixed first appeared on Kamyar Shah.

Your P&L: Where to Focus

0
0

Profit and Loss

The quick death of any young company is often the lack of focus on the right areas of their profit and loss (P&L) statement. Established companies can likely get away with a lack of focus and oversight for a while, but lack of attention to the details will eventually have negative impacts.

The goal of this article is to discuss Your P&L: Where to Focus. Since every company is so diverse we will keep this discussion high level to generate thought starters. Most leaders have some level of understanding of a P&L, though what is sometimes lacking is the diligence of how to monitor a P&L to spot issues and trends.

Major Financial Statements

Financial statements and reporting follow accounting and financial standards established by the Financial Accounting Standards Board (FASB) that are in-line with generally accepted accounting principles (GAAP). There are four major areas of reporting that the company’s financial statements fall into:

  • Balance sheets: Measurement of the assets and liabilities
  • Income statements: These are your typical profit and loss (P&L) reports
  • Statements of shareholders’ equity: Measure of who owns what portions of a company
  • Cash flow statements: Measurement of cash entering and leaving the business over time

Each of the financial statements has various key performance indicators (KPI’s) that help to monitor the performance of key measurements within the various statements. These KPIs have various levers that drive the KPIs performance. It is the focus on the levers and KPIs that often distinguishes the best-performing companies from the rest.

Steps to Understanding, Monitoring, and Controlling Your P&L

The success of your business will be highly dependent on the quality of your focus as an organization on understanding, monitoring, and controlling your P&L.

Understanding the P&L

P&Ls may vary in appearance but a typical P&L will contain performance broken down in summary format by categories such as (GAAP will influence the look of a company’s P&L):

  • Revenue: This may be broken out in sub-categories and summarized as a total revenue line
  • Cost of Goods (COGS): This may be broken out by major categories with COGS
  • Gross Profit: This will be Revenue minus COGS
  • Selling, General, and Administrative: Cost to run the business such as:
    • Salaries: Often broken out by major categories like sales, operations, transportation, marketing, administrative, etc. It is beneficial to break out your benefits costs so that you can understand these costs over time and they may differ based on employee classification type
    • Supplies: Depending on your business you may want to break this out for certain departments to better understand the costs
  • Operating Income: Is Gross Profit minus SGA
  • Tax Impacting Measures: Such as depreciation which can lower your taxable income
  • Net Income Before Tax
  • Taxes
  • Net Income After Tax

As you are analyzing and reporting on your P&L you will want leaders to understand the following key ratios:

  • Gross Margin: This is your gross profit ÷ revenue.
  • Any line item as a % of Sales: This measurement is often reviewed over time to better understand trends
  • Operating Margin: This is operating income ÷ revenue and represents your ability to leverage company resources to improve revenue
  • Net Profit Margin: net income (after taxes) ÷ revenue
  • Return on Equity (ROE): net profit ÷ average shareholder equity for the period (a measure of return on money that shareholders have invested in the company)
  • Return on Capital Employed (ROCE): earnings before interest and tax (EBIT) ÷ capital employed. This ratio determines the efficiency of the capital that is being invested in the company. A higher ROCE represents a better use of capital
  • Asset turnover ratio: This is net sales ÷ total assets. This is important to watch as it represents your ability to leverage assets to produce sales
  • Inventory turnover ratio: This is the cost of goods sold ÷ average inventory which represents how quickly your inventory is sold and replaced over a given period of time. Inventory that does not turn quickly enough could become outdated and represents tying up cash
  • Receivables turnover ratio: Measured as net credit sales ÷ average accounts receivable this represents how many times a company turns its receivables into cash over time. This a key measurement of cash flow which must be monitored closely to ensure a business has the cash necessary for the payment of ongoing operations and investment in inventory.
  • Days sales in inventory ratio: How quickly you turn inventory into sales is measured as 365 days ÷ Inventory turnover ratio

Monitoring the P&L

Diligently monitoring your P&L will involve ensuring the following is present:

  • Senior Leader Commitment: Your most senior leader will either need to possess strong financial acumen or have the ability to work closely with human resources to hire for talented financial executives. If your leader is not focusing on financials you risk other leaders not focusing as well.
  • Senior Leadership Financial Acumen: It is important to ensure that you hire executives with a certain level of financial acumen. An operational leader who is not aware of how their decisions impact sales can quickly implement efforts that undermine a quality experience for the customer that impacts customer retention. Conversely, a super salesperson can quickly erode profits by unwittingly cutting margins in their attempt to grow business. Meanwhile, IT could be implementing extremely expensive capital investments that are not necessary and do not meet the underlying needs of the organization helps to assess where you are today with your analytical capabilities.
  • Establishing Measures: One of the most important steps in P&L management is the establishment of the measurements that drive the P&L results. Key Performance indicators vary greatly by company and additionally levers (the measurements that impact KPIs can be numerous and overwhelming. This is where each leader will want to deeply understand how their business drives results on the P&L (and other financial statements). Much has been written about KPIs and measurements and it is recommended that leaders reference these works for ideas and guidance.
  • Systems: A company will want to establish the means by which it wants to report on various measures (the systems, format, and frequency). It is helpful if the reporting systems work with the financial reporting systems of the organization to ensure consistency in data and efficiency in processing.
  • Training: Since each leader has traveled a different path in getting to their current role it will be important to assess each leader on their skills in the area of financial acumen and develop and incorporate into their Individual Development Plan (IDP) the means to improve the financial capabilities. The following list of books offer leadership and financial-based insights that can assist in better understanding building a culture of financial acumen:
    • What the CEO Wants You to Know by Ram Charan
    • The Everything Store: Jeff Bezos and the Age of Amazon by Brad Stone
    • The Four: The hidden DNA of Amazon, Apple, Facebook, and Google by Stott GallowayMeasure What Matters: How Google, Bono, and the Gates Foundation Rock the World with OKRs by John Doerr
    • The Amazon Way: 14 Leadership Principles Behind the World’s Most Disruptive Company by John Rossman
    • The Amazon Way on IoT: 10 Principles for Every Leader from the World’s Leading Internet of Things Strategies by John Rossman
    • Think Like Amazon: 50 ½ Ideas to Become a Digital Leader by John Rossman

Controlling the P&L

Closely tied to monitoring are the following activities which if regularly executed upon will result in continuous learning about opportunities for improvement to your company’s performance.

  • Regular Financial Reviews: Each company will have to identify a cadence for review amongst their various levels of leadership. It is suggested that a master schedule be developed for the various levels within an organization for the regular review of key financial measurements. Following are some suggestions:
    • Senior Leadership: At a minimum, a weekly review should occur of the KPIs and levers that drive the business. This allows for quick course correction as needed.
    • Mid-Level/Front-Line Leadership and their teams: This is where the bulk of the action happens in any company and depending upon the product or service KPIs and levers may be watched on an hourly or daily basis. Reporting and systems should enable the needs of this level of leadership.
    • Organization as a whole: A monthly review of high-level KPIs helps keep all employees in the organization aware and engaged in the success of the company
  • Understanding the Expenses: It is easy to over-automate expense payments. It is recommended that front-line managers who have accountability for a portion of the P&L review and approve all expenses that impact their organization, this should include internal transfer charges. When a manager is looking at and reviews every expense to their organization they develop a keen understanding of how their business works.
  • Understanding the Revenue: It is critical that sales personnel fully understand how revenue is being generated. This helps to ensure that focus is being placed on the right activities that generate the proper revenue for the organization. Having a level of understanding of the Activity-Based Costing (ABC) of your organization will further help leaders focus on the right revenue that drives your company’s profits. It is important for non-revenue managers to also understand and monitor revenue and ensure that they are adjusting their operational support to meet the revenue demand on the organization.
  • Variance Analysis and Course Correction: It is recommended that each manager conduct variance analysis and recommended course correction against the line items on a P&L that they have accountability to. Leadership will want to set tolerances (either a set $ variance +/- or % variance +/-) that the manager will have to explain and provide guidance on how they plan to course correct. This process can sound exhaustive, however, if your company has a focus on attending to all P&L activities with this level of vigor (on a monthly basis) then you will increase your likelihood of success as you will identify any issues or concerns quickly.
  • Accountability: Most companies incorporate means by which the performance on KPIs or the P&L is reflected in an employee’s pay or opportunities for advancement. A leadership truism is to provide incentives for the behaviors you wish to have exhibited.

Building a culture of financial acumen builds a foundation of repeatable success. Building this culture needs to start early and have continually nurturing to sustain its effectiveness.

The post Your P&L: Where to Focus first appeared on Kamyar Shah.

Research: Gather Your Facts for Better Decision Making

0
0

Research

Research is often undervalued in a company as leaders rely on their own experiences, their knowledge set, and possibly the knowledge and experiences of others. Surprisingly this can prove to be a limited amount of knowledge and insights when compared to the breadth of information that exists on nearly any subject matter.

The goal of this article is to discuss Research: Gather Your Facts for Better Decision Making. A company’s success is greatly impacted by the effectiveness of the decisions it makes. And while it is important to be efficient (aka, expedient) in your decision making it is just as important to make sure you have done your research to consider all of the facts and options that may be available to you.

Research versus Analytical Decision-Making

Research is very closely tied to analytical decision-making. Both are based on gathering as much information as possible. Research findings oftentimes play into analytical decision-making. Rather than consider them as two whole separate activities it is suggested that both be used to complement each other.

Getting Good at Research

Getting good at research requires several activities that when executed upon will result in more decisions being supported by research findings (and where necessary, analysis to understand the research).

The dictionary.com definition defines research as the diligent and systematic inquiry or investigation into a subject in order to discover or revise facts, theories, applications, etc.

When conducting research you will need to consider your research design (how you plan to answer the question or problem you are faced with) and the research method(s) you choose to execute this plan.

Depending upon your company’s business model you may engage in the usage of different types of research methods for solving or understanding different types of problems. The research methodologies are quite varied and it is helpful to have a general understanding of the various types of research you may use (descriptions are the author’s interpretation of commonly used definitions):

  • Basic: This is characterized when you just jump right in to research without any preconceived conclusions and are just seeking to improve your understanding of a situation.
  • Qualitative: This type of research is typified by textual data, whether it is responses to questions on a survey, feedback given in a focus group, or dialogue from an interview.
  • Quantitative: Any time your research involves data that is numerical in nature or is data that can be categorized and assigned numerical valuations for analytical analysis then you can conduct quantitative research.
  • Observational: This is when you observe behaviors exhibited by participants in a situation to understand the unguided reactions and responses to the environment around them.
  • Longitudinal: This is a term used when the research observations are measured over time. An example could be an adult’s approach to parenting subjects over time (from before they had children, during stages of when they had children, and after their children have left). To understand what changes over time.
  • Cross-sectional: This is when you are ensuring that the data you are studying represent the population or a subset that allows you to get a cross-sectional approach.
  • Correlational: This is a non-experimental research method, in which a researcher measures two variables, understand and assess the statistical relationship between them with no influence from any extraneous variable
  • Causal-comparative: This is when you are trying to research the relationship between independent and dependent variables differences that already exist between groups.
  • Experimental: Any time you are adhering to scientific research design and starting with a hypothesis and using variables that you intend to measure, calculate and compare to prove/disprove your hypotheses you are using an experimental methodology.
  • Exploratory: If you are in the early stages of looking at a problem you likely may use and exploratory approach that does not begin with any preconceived hypothesis and is intended to conduct an initial investigation into the problem to get some general understandings which may then lead to further research using other methodologies.
  • Descriptive: This is when you are describing the “what” of your research
  • Explanatory: This is when your research outlines what the research is intended to study and resolve and the methods to be to resolve the problem

Preparing to Conduct Your Research

Numerous steps should be taken as you build the research muscle of your organization

To ensure that the quality of research is beneficial to your organization you will want to consider who should conduct the research. Whomever you choose to conduct your research should have experience in setting up the type of research you are looking to have completed.

  • Senior Leadership Commitment: As noted before leaders often rely on their own knowledge or that of a small group of individuals. Getting your senior leadership to expect that deep research to be used when solving problems is a critical factor improving your research capabilities
  • Hiring Research Capable Employees: It is also important to look for characteristics in new hires that would suggest they are good researchers or are interested in becoming good. Begin to look for candidates that like to research solutions on the internet, pose critical thinking questions, and measure how they respond, understand their analysis capabilities, have them explain how they solve problems.
  • Training: Every manager/leader is not educated in or interested in research. However, making sure that each manager/leader is using a common language as it relates to research will help to improve your organization’s collective approach to researching and your understanding of research findings. Partnering with your human resources department and training department will result in the development of baseline expectations as it relates to researching.
  • Incorporate into Analytical Decisions: As stated earlier research and analytical decision making are closely related. It is important that any analytical decision-making consider any research methodologies that should be incorporated to improve the quality of the analysis.
  • Project Prioritization: Research is also important as it relates to project prioritization. A project that is lacking adequate and fundamental research that supports the project assumptions and goals should be suspect.
  • In-house Expert: Not all companies can support having Ph.D. level scientists on their payroll. However, it is beneficial to have a person who is a go-to subject matter expert when it comes to understanding in-depth the scientific repercussions of various modeling techniques and who can guide internal leaders on matters related to research. In the absence of an in-house expert, you should consider hiring outside experts to consult on your larger projects.

Your Research Process

Each research effort may vary somewhat in the approach based on the methodology used, however, most will contain most of the following steps:

  • Problem/Opportunity Identification (POI): This often comes in the form of identifying something that has occurred, wanting to understand how to capitalize on an opportunity.
  • Resource Review: This can be as broad and varied as the types of POIs you develop. As you conduct a resource review consider everything from internet resources, academic journals, subject matter experts, etc.
  • Update Your POI: After doing some research you may want to clarify the problem you are trying to research or the opportunity you are looking into.
  • Common Terminology: Outline and define all of your research content in understandable terms.
  • Who/What/Where: Define clearly the parameters of your research subject(s)
  • Methodology: Clearly define how you will be conducting your research to ensure that the information your research and gather is as unbiased as possible.
  • Data Collection: Gather as much information on your research subject(s) as possible to aid in the analysis of your data.
  • Analysis: Conduct the types of analysis that are necessary to aid the research results. As spoken to early research is very closely tied to analytical decision-making.
  • Interpretation: As part of your research you may be interpreting the results for a summary to your audience.
  • Conclusion/Recommendation: This may or may not be a step in each research project. It is recommended that the researcher provide any conclusions or recommendations they have from their involvement with the research as it relates to the Problem/Opportunity Identification (POI) identified at the beginning of the research process.

Building an expectation of research-based decision-making will take time and effort. Once incorporated into your culture you can expect that initiatives will be well thought out with various options considered and positioned for optimal success.

The post Research: Gather Your Facts for Better Decision Making first appeared on Kamyar Shah.

Employee Growth: Providing a Rewarding Environment for Your People

0
0

Employee Growth

At the core of a company’s success is the knowledge held by its employees. Providing a culture that nurtures increased employee growth through knowledge acquisition can prove to be one of the greatest returns on investment and organization can make.

The goal of this article is to discuss Employee Growth: Providing a Rewarding Environment for Your People. The following initiatives can make up the components of growth that so many employees seek.

What is considered employee growth?

Growth for an employee can be as individualistic as each employee. We each are seeking a specific experience that is personal to us. Companies that work to understand our individual needs and support this growth will benefit from the improved engagement that we exhibit and the knowledge that we are able to leverage.

Finding the Individual Activity best suited for each employee

One of the best ways of identifying the activity that may most benefit an employee is to engage the individual employee in a dialogue about growth. The following are a sample of:

  • Attend an industry conference: Conferences can be expensive due to travel and conference fees, however, attendance with an agenda for your employee can result in an enriching experience. Conferences may not meet the learning styles of all employees, though for many individuals this may be a great environment for them to get exposed to new ideas and concepts and to engage in rich dialogue with industry experts. Employees will likely return with a new level of enthusiasm and engagement towards their daily work. The insights and ideas they gain can quickly be applied to your business.
  • Certification in a discipline: Nearly every discipline imaginable now has a certification that can be earned to demonstrate proficiency in a specific subject area. Certifications are should be very desirable by companies as they exhibit a commitment from an employee to improving their proficiency in a subject. This proficiency benefits the company and can provide a quick return on the investment. Additionally, employees feel supported by their company as these investments are made (improving employee engagement. Some leaders may fear that an employee takes these skills elsewhere. While this is certainly a risk and concern, in most cases the company will recoup their investment quickly and the goodwill created with the employee can prove very valuable
  • Educational Assistance: With educational assistance, a company commits to reimbursement of degreed programs that can benefit the employee and company.
  • Stretch Assignment: For some employees and situations placing an individual in a role that stretches their skills and competencies can result in greatly improved knowledge in a short period of time. Employees who are up for the challenge will appreciate the company taking the chance on them.
  • Mentorship Program: Mentorship arrangements can be informal or formal. Many employees enjoy and/or can benefit from a mentorship relationship with someone who is in a position or discipline that the employee wishes to work towards. Not all mentorship programs need to be with an individual under this type of scenario. What is key about a mentorship arrangement is that both parties are actively and willingly engaged in the relationship focused on the development of the mentee in ways that are not likely occurring with the mentee’s supervisor.
  • Coaching: Sometimes an individual can benefit from one-one-coaching by a subject matter expert in the business on a particular skill or knowledge area (e.g. providing a leader with coaching on giving presentations from a more skilled person inside the organization).
  • Listening to Podcast: Podcasts are a great way to get exposed to new knowledge and insights in a short amount of time. Podcasts are often arranged in series that address learning on a new subject over a period of time.
  • Following a Blog: Encouraging employees to find blogs by leaders in the field that they are interested in will gradually build their knowledge in new areas. These are usually free and only involve the time commitment by the employee.
  • Professional Membership: Most disciplines have professional membership organizations that an employee can join. A discussion should occur with each employee to uncover specific areas of interest they have and potential organizations that they should look to become members of. These organizations can provide a wealth of learning including podcasts, blogs, webinars, publications, conferences, specific training, etc.
  • Webinars: Webinars have become an increasingly popular way to exchange knowledge. Webinars tend to be more formalized and one-way as opposed to listening in on podcasts and often exhibit characteristics of distance learning. An added benefit of webinars is that the content is often shared, allowing for further review or future reference.
  • External Workshops: Colleges, organizations, and others often conduct workshops that can be attended (varying from 4 hours to multiple days). These external workshops usually provide learnings that can be applied across varied businesses. Seeking out workshops that can provide learnings/insights into a problem the organization is facing can be a very valuable investment into a particular employee
  • Managing a Project: Many individuals have the skills and competencies to run an actual project. This can be a great learning opportunity for the right person and provide them with a feeling of great contribution to the organization.
  • Team Member on a Project: Many people thrive on the ability to contribute to the organization in a team setting outside of their normal workgroup. For these types of personalities, it may be appreciated to be involved in a project that includes people from varied disciplines.
  • Job Shadowing: Sometimes the best way for someone to learn and grow is to observe an expert through shadowing this individual to get a sense of the daily activities and challenges.
  • Additional Responsibilities: Many people yearn to be able to contribute in new ways without leaving their current role. For these types of induvial finding new responsibilities that can be handled within their bandwidth can be a great place to grow their skills and competencies.
  • Job Rotation: Sometimes the best way to learn something new is to be fully immersed in doing it. Providing opportunities for people to fully experience another role for a fixed period of time will expand the knowledge of individuals and the capabilities of the organization
  • Knowledge Reading: While reading may not be for everyone, for many finding the right books (that can either be read or listened to) that increase their knowledge of a specific subject
  • Networking: Helping your employees learn how to network is a gift that will keep on giving throughout their careers. Networking is proven to be an effective way to broaden an individual’s interest and understanding of the world around them as they are exposed to other individuals inside their field who may have more knowledge and insight and meet others with interest outside their field, but which may still be connected.
  • Never Eat Alone: In his book “Never Eat Alone: And Other Secrets to Success, One Relationship at a Time” Keith Ferrazzi points out the benefit of utilizing your time at lunch to expand your understanding of the world around you by broadening the mix of people you spend time with. Seeking out time with people outside of your normal circles will awaken in your interest in areas you likely were unaware of before and will sensitize you to issues and opportunities throughout your company.
  • LinkedIn Learning: An economical way to stay abreast of the latest skills training in creative, software, or business disciplines. LinkedIn is the premier source for networking and they offer great training courses.
  • Coursera: Founded in 2012 Coursera offers a variety of college-level academic courses for a fraction of the cost and from the comfort of your home. Coursera virtually eliminates any reason for not being able to take a higher-level learning class to improve your skills.
  • MOOC.org: Similar to Coursera Massive Open Online Courses are a way to get exposure to college-level course content in a virtual setting.
  • Online Professional Development: Many disciplines (like teaching) offer online professional development courses designed to keep skills current on offer exposure to new ideas and methodologies
  • YouTube: Attention spans have decreased, though people’s desire to learn has not. YouTube has moved beyond a place to watch great cat videos and has become the go-to site to improve one’s skills from how to perform certain functions in software programs to learn how to fix your mower on your own.
  • 360° Feedback: Many leadership and development programs include a 360o Feedback component. These surveys (typically given to an employee’s peers, superiors, and direct reports) can elicit numerous points of growth opportunity to an individual that will strengthen the employee’s capabilities.

The preceding list may appear intimidating. The key takeaway is that there are a variety of options available to each employee.

Following are some key steps that managers can take as your company works to improve the growth of your employees:

  • Understand the alternatives: The list above is meant to be a thought-starter and the summaries of each briefly explain each option. It is recommended that a manager take a few hours to review these and conduct their own independent research (Google each term and you will find plentiful resources to review further). Having familiarity with these various options will provide a manager with a bountiful resource of options to meet the needs of individual employees.
  • Secure the resources: While some of the options are free, many do cost money. All managers in an organization should be familiar with the average amount of expenditures per employee on training and development. If your company spends an average of $1,000 per year on each employee does the individual manager know how that is being allocated and how involved are they in determining how those funds are spent An employee’s manager should be the most familiar with that employee’s needs, and the manager should be the strongest advocate for making sure the training funds are properly spent on that individual employee.
  • Assess the individuals: As noted at the beginning of this article a dialogue should be occurring between each employee and their supervisor to best understand the employee’s desires/goals for growth and insight/guidance from the manager on their observations of where the employee may need development. It is important that your human resources and training department are involved in helping to develop any assessment program. Numerous tools and techniques (too extensive to address here) are available to ensure that these conversations are efficient and effective.
  • Communications: Companywide initiatives like employee growth should be well communicated. You will want your communications, human resources, and training department involved you formulating the correct communications and timelines to ensure that the entire organization is informed of the intention, accessibility, and commitment from leadership. As your company becomes proficient at employee growth you will find that it will become a recruiting and retention tool. Career Development Opportunities (Growth) is sighted as a top reason contributing to employee engagement. Since high employee engagement is a critical factor to a company’s success it is important to focus some energy on your employee growth initiatives.
  • Accountability: How are you holding your leaders accountable for the growth of the employees in their department? What metrics are in place to ensure that employee growth is occurring according to the company’s goals? How frequently is employee engagement measured and are their questions related to employee growth? How often is employee growth discussed in senior leadership meetings? Is employee growth discussed in the annual report? Do Individual Development Plans (IDPs) contain goals related to personal growth for the employee? To build a growth culture there must be accountability throughout the organization.

Choosing to invest in your employee’s growth will yield short-term and long-term benefits that will improve your company’s bottom line. A legion of appreciative and loyal employees who eagerly invest back into their company is an eventual outcome

The post Employee Growth: Providing a Rewarding Environment for Your People first appeared on Kamyar Shah.

Communication: Mindful and Effective Ways to Keep Everyone Informed

0
0

Communications

Some companies operated on a need-to-know basis. And certainly, in some situations and industries, this may be a necessary position to take with respect to sharing information within a company. However, in most instances, transparency within a company pays off in the long-term.

The goal of this article is to discuss Communication: Mindful and Effective Ways to Keep Everyone Informed. Trust within an organization is built upon many factors and behaviors by leaders. Communication is consistently found to be one of the most important leadership qualities cited by employees in employee engagement surveys. In addition, the way in which a company communicates with its customers and the general public is becoming increasingly critical to a company’s competitive advantage.

The Strategic Plan Linkage

Any company wishing to survive will likely have a strategic plan. This plan becomes a guiding reference point for an organization’s communication strategy. The Strategic Plan will contain a guidepost by which your communications strategy (internal and external) will want to be linked to. Factors that should be considered for communication that is related to your strategic plan may include (but not be limited to):

  • Vision Statement: This is your aspirational description of what your organization would like to achieve in the mid-term to long-term future. Your Vision Statement should serve as a clear guide for choosing current and future courses of action
  • Mission Statement: The declaration of your organization’s core purpose and focus that normally remains unchanged over time
  • Core Values: The fundamental beliefs or your organization. The guiding principles that dictate the behaviors expected by all employees within the organization
  • Strategic Goals: These are the statements of what is critical for your company to focus on the mid-term to long-term future
  • Key Objectives: These are typically the specific results you are looking to achieve in the short-term that is ultimately in support of the strategic goals.
  • Key Performance Indicators (KPIs): While KPIs may typically be reserved for internal communications you will likely have KPIs that are communicated externally (such as quality measures, sustainability report measures, etc.)

Steps to Building your Communication Plan

To ensure that the quality of research is beneficial to your organization you will want to consider who should conduct the research. Whomever you choose to conduct your research should have experience in setting up the type of research you are looking to have completed.

  • Senior Leadership Commitment: To build trust and inspire employee engagement your most senior leaders will need to be committed to running an organization with a core tenant of transparency in the communication of the operations and plans of the organization.
  • Hiring Considerations: Commitment at the top must be supported by hiring individuals at various leadership levels who possess skills and competencies in communicating with their personnel. This may be in verbal or written format and in groups or one-on-one. In addition, communication requires great listening skills (which can be taught) and are extremely important to successful communication as communication should be a two-way transaction. When reviewing your hiring practices it is useful to consult with your human resources personnel, communications leaders, and trainers in devising your hiring/training plan to ensure leaders possess great communication skills.
  • Assessing Managers: Each manager/leader will possess varying levels of skills and competencies when it comes to communications. Depending upon a person’s experiences and assent to their current role they may or may not have had the opportunity to become effective in the nuances of both verbal and non-verbal communications. And since different skills are needed for verbal and non-verbal communications it should not be concluded that a leader/manager who is skilled in one area is versed in the other. You will want to establish the communications needs you have for various levels of positions and possibly specific roles. Once these expectations have been established you can assess existing personnel against your needs and identifying any gaps that you will need to train on.
  • Training: Some training will be able to occur in a group setting if there are commonly held communication skills that you wish to have implemented consistently across your organization. However, much of your training may be designed for each individual’s needs and may best be delivered as coaching or mentoring.
  • When to Use the Experts: A key consideration to any communication strategy is determining when leaders/managers can communicate on their own, when they need to consult with your communications leaders or human resources, or when the communications should be handled by a higher-level individual in the organization or be handled formally by communications or human resources (their role may be behind-the-scenes in crafting the proper type of communication, style, and specific messaging).

Types of Communication

A variety of communications methods exist in ensuring that employees and customers are kept properly informed on a timely basis and at the detail level necessary. Following are various methods for consideration (realizing that many of these may seem obvious):

  • Town Halls: Pulling together groups of individuals for an extended discussion about the business can be an effective way.
  • Standups: These are great chances at the beginning of shifts to share small updates necessary to communicate to a team that impacts their current day of work.
  • One-On-Ones: If the information may contain specific information or impact to a specific individual then one-on-ones may be the best format
  • Social Media Feeds: Various social media platforms may be utilized as a means to update your customer base and the general public on a matter that may affect them.
  • Media Releases: Typically reserved for notifying media outlets on general matters related to the company which is intended to inform the general public.
  • Email: A great way to ensure that anyone with email receives consistent messaging.
  • Texting: Certain types of communications are finite in nature and are best served quickly and directly to a targeted audience.
  • Annual Meetings: These certainly come in a variety of formats clearly define how you will be conducting your research to ensure that the information your research and gather is as unbiased as possible.
  • Webinars
  • Collaboration Mediums: There is an abundant variety of collaboration platforms like Skype, Slack, Hubspot, Google Hangouts, etc. which can serve as a means to communicate quickly to smaller groups of people in real-time or near real-time when the communication warrants it.
  • Newsletters: A great way to provide periodic updates on subjects of interest. This applies internally to your employees and separately can benefit your customers
  • Blogs: Similar to a newsletter though likely in a more condensed format.
  • Instant Chat: Reserved for instances when you want to communicate to visitors to your websites
  • Bots: Be mindful of what type of information you want to be shared via bots as many people want to know they are talking to a person or being communicated to by a person
  • CRM Platforms: Many CRM platforms like Salesforce.com have means to communicate information to customers whether it is through a chat feature, email, text, or collaboration.
  • Telephone: How you communicate says a lot about the relationship you have with your employees and customers. Be mindful of the impression you set when using the phone as a means of communication. Does the employee/customer talk to a person, are the menus simple, what are hold times, how many hand-offs occur, is there seamless integration between your communication platforms. All of these should be evaluated when building your overall communication strategy.
  • Training: Whether you are training employees or customers there are special considerations that should be given to what you communicate in this format
  • US Mail: Often forgotten in today’s technology age, but receiving something via the mail can be a great way to communicate, especially if it something that is personalized to the individual recipient.

What all Communications Should Have

As you develop your communications for employees, customers, or the general public it is helpful to have a framework to ensure that you are meeting the needs of your audience.

The Seven Cs of Communication was introduced in 1952 by Scott M. Cutlip in “Effective Public Relations”. These parameters/expectations should be considered as you build any communication – even though the original list was built in the context of public relations. Mr. Cutlip’s original list was:

  • Completeness: Will your communications answer most of the questions related to the subject
  • Conciseness: Stay on-point and do not wonder, make sure it all ties together
  • Consideration: Are you practicing honesty, openness, fair-mindedness, respect, integrity, etc.
  • Concreteness: Is it clear, to what level of the reader are you gearing your communication such that it is understood by all in your audience
  • Courtesy: Being mindful of the feelings and views by those in your audience
  • Cleanliness: Is the structure of the communication smooth and easy, sloppiness will reduce the credibility of the communication
  • Correctness: Any communication (verbal or non-verbal) should meet standard acceptable spelling, grammar, etc. to ensure that you are respectful of the audience

It is safe to add the following Cs to the review process of your communications:

  • Credibility: Is the source of your communication someone who will be credible with the audience
  • Context: Any communication should keep in mind the environment in which the communication is occurring and be mindful of how that reality should impact the communication
  • Clarity: This is pretty much like cleanliness above, use common language understood by the general public
  • Continuity: How frequently should communication be conveyed
  • Consistency: It is critical that communications remain consistent as they are shared throughout the organization, this can sometimes dictate how you will want particular information shared
  • Channels: We spoke earlier about all of the different ways you can communicate, thus any communication should consider how each channel is used and what each channel is effective for
  • Capability: Depending upon your audience you may have to adjust your communication to their capability of understanding the information being conveyed
  • Costs: While costs are always a consideration in any situation it is suggested that when it comes to communicating certain information a company would be wise to not be too cheap in getting in front of their employees or customers to have face-to-face communications which can lead to heightened engagement

We hope that as you build your communication strategy that the previous thought starters and considerations help you to best communicate with your employees, customers, and the public to build long-term trusting relationships that result in exceptional engagement.

 

The post Communication: Mindful and Effective Ways to Keep Everyone Informed first appeared on Kamyar Shah.

15 Effective Strategies For Increasing Productivity Without Adding Stress

0
0

Refine Skills And Practices

Stress in a productivity context is a moot point because it is a symptom of other issues, including time and task management skills, prioritization, and perception. Stress in this setting is almost always addressable via refinement of skills and practices that are readily and publicly available. – Kamyar Shah, World Consulting Group

By: Business Consulting

The post 15 Effective Strategies For Increasing Productivity Without Adding Stress first appeared on Kamyar Shah.

Feeling Negative? 16 Ways To Boost Your Optimism

15 Key Qualities That Define An ‘Agile’ Leader

0
0

15 Key Qualities That Define An 'Agile' Leader

Adapting

The concept of an “agile leader” is an unfortunate subcategorization that is both vague and conceptually already covered in servant leadership. Agility, in terms of adaptability in decision making as well as process management, has and will be one of the cornerstones of time tested business practices that have been successfully utilized for decades. – Kamyar ShahWorld Consulting Group

By: Business Consulting

 

The post 15 Key Qualities That Define An ‘Agile’ Leader first appeared on Kamyar Shah.

Giving Feedback? 15 Ways To Keep It Constructive

16 Top Tips For Building Company Culture From Scratch

0
0

16 Top Tips For Building Company Culture From Scratch

Define Your Wants And Needs

Defining your wants and needs is by far the most significant step that should supersede any other. Without a clear outline of the “what, when, and how,” every other action taken is either meaningless or destined to fail. This should be followed by leading by example — don’t ask your team to do something you wouldn’t do yourselves. – Kamyar Shah, World Consulting Group

By: Business Consulting

The post 16 Top Tips For Building Company Culture From Scratch first appeared on Kamyar Shah.

15 Steps To Take When A Company’s Profits Plummet

0
0

15 Steps To Take When A Company’s Profits Plummet

Don’t Panic

The single most important action should be understanding the reason behind the nosedive. Though it sounds elementary, it is surprising how many stakeholders jump to action without knowing what the proper action needs to be. Don’t panic – use qualitative and quantitative methods. The time to take action is after you are sure you have found the issue(s). – Kamyar Shah, World Consulting Group

By: Business Consulting

The post 15 Steps To Take When A Company’s Profits Plummet first appeared on Kamyar Shah.

How To Treat Your Customers Like Humans: 13 Tips For Startups

0
0

How To Treat Your Customers Like Humans: 13 Tips For Startups

Treat Them As You Would Like To Be Treated

The best rule of thumb is to treat your client the way you would like to be treated. The size of the company is not relevant — a one-man shop or a national brand — without happy customers, no business can sustain itself in the long run. Don’t complicate it; use your personal experiences as your guide. – Kamyar Shah, World Consulting Group

By: Business Consulting

The post How To Treat Your Customers Like Humans: 13 Tips For Startups first appeared on Kamyar Shah.

What is Strategy Consulting (and Why You Need It)

0
0

Strategy Consulting

Leading a business to success requires a good amount of knowledge about operations and day-to-day tasks.

These are what keep your business afloat. But you will likely miss out on market opportunities. That is unless you are incorporating yearly strategy sessions into your planning cycle. Worse, you may find that your competition has outpaced your business and your company is no longer relevant.

Businesses that use strategy consulting as part of their yearly cycles are more adaptable and stay ahead of the competition. Having a better understanding of what strategy consulting is, and how it can benefit your business, is the first step in bringing real value to your company.

Strategic Planning for Your Business
Strategic planning usually occurs annually. It is the process where a business analyzes its strengths, weaknesses, opportunities, and threats. Then, the business creates a set of strategic initiatives to whittle away at for the next year or five years.

Strategic planning is difficult, both in the planning as well as the implementation phase. Keeping everyone in your company keyed into your businesses‘ strategic plan is important. It is what keeps employees engaged and committed to improving their workplace day after day, year after year. And, it is important for every team member at the company to advance strategic goals and include them in their daily tasks.

The number of strategic planning sessions and duration, who is involved, and who are the strategic plan “champions,” are all things to consider when putting together your company’s strategic plan. To stay relevant and outpace your competition, you will need to use several strategic planning tools. These tools will give you insight into your competition’s capabilities. They will also highlight your businesses’ own strong suits.

PESTEL Analysis Tool
To launch a successful annual strategic planning process, focus on external influences to your business first. Market research will help kickstart your analysis. It will also lead to better decision-making. This is because the more information you have access to, the better informed your decision will be.

A great tool to use as a starting point for this external analysis is the PESTEL. PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal categories.

Businesses do not exist in a vacuum. They occupy space in a particular location with their own competitive landscape. Here we drill down into each category of the PESTEL to better understand the particular influences that could be affecting your business or industry.

Political
Political leaders, policies, and the level of governmental control all affect business. When governments approve new policies they can be business-favorable or unfavorable. Trade policies, protectionism, and trading restrictions are a few examples of policies that can affect your business.

Be aware of leadership’s political affiliations and the threats or opportunities that a political party or leader poses to your business. If a particular party has promised tax breaks or other incentives, plan for a worst-case scenario anyway.

Finally, stay abreast of changes and keep your ears to the ground. Policies can morph quickly. Assume your competition is keeping tabs as well. Your competitors are smart and capable. Underestimating them and their capabilities can be detrimental to your long-term business viability.

Economic
Currency exchange rates and the strength of the stock market are examples of economic influences that affect your business. Business locations in areas where residents tend to have more disposable income create a favorable economic opportunity. On the other hand, inflation and high wages can have negative consequences for your finances.

Some governments have programs where they cut taxes to create business opportunities. This can also have a profound effect on your business operations. Take the time to outline the economic background of your business. This includes taking into account key economic drivers in your industry or geographic location.

Social
Knowing the social landscape is important for every business. Customers may be more or less likely to demand certain products in various countries. Proximity to other countries, or size of country and population, can affect business as well.

Not only do social implications concern customer demographics but they concern labor preferences as well. For example, customers in certain locations may put more pressure on businesses to source ingredients ethically or sustainably. Labor may also organize more effectively in one country than another. It is important to note that these social implications can be tied to political ones as well.

Technological
Where your business is located may mean that you have easier access to technology, or not. Protections on innovation like patents can also keep your business’s proprietary information safe from competitors, or not.

Access affects your ability to remain swift and responsive to market changes. Protections on technological advances give your business a competitive edge for a certain amount of time.

Environmental
Governments may regulate with a heavy or light hand on environmental issues depending on the country or location of your business. This can affect your business operations as well as any fees or overhead you incur from damaging practices.

Consumers may also buy only from environmentally-friendly businesses. Both of these factors drive the market for goods and services and must be taken into account.

Legal
Laws are borne of governmental policies and legal challenges alike. Both can have an impact on your business as an external influence.

For instance, if your company monopolizes the market, certain countries can lodge an anti-trust suit again you. Or, certain countries have minimum wage laws that prevent the exploitation of cheap labor. Knowing your legal environment can help you understand what your cost of doing business will be.

Porter’s 5 Forces Tool
The Porter 5 Forces Tool was created by Michael E. Porter as a framework for understanding the industry climate. The 5 Forces strategic analysis tool highlights the competitive landscape of your industry as well as its strengths and weaknesses as a whole.

The tool provides context to the business when each of its five categories is explored. The five categories include the threat of rivalry, entry, substitution, suppliers, and customers. These categories are outlined below.

Threat of Rivalry
The threat of rivalry category asks you to list the major players in your space. How much market share does each have currently? What are the projected forecasts?

Furthermore, consider the maturity of your market or industry. Is it stable or changing? Or is your industry on a growth trajectory versus a decline? Where do your rivals fit into this picture?

Threat of Entry
The threat of entry category exposes the rivals of tomorrow. Staying one step ahead of the future’s competition will ensure your business keeps its blind spots in check.

To remain competitive, your business will need to consider not only current rivals. Tomorrow’s rivals likely will have improved technology and processes that you will need to adapt to stay relevant to consumers.

Threat of Substitution
Will your industry be replaced by a future market? This threat of substitution is difficult to identify. But like the airplane eventually replaced boats for across-seas travel, the threat can completely undermine your business.

Substitutions must be considered and adapted to if they pose a serious enough threat. Not every substitution will need to be dealt with in the next five years. But keeping your eyes on the horizon will help your company succeed in the long-run.

Threat of Suppliers
Changing conditions in your supply chain will affect how you make your product and in what time frame. Because of the threat of suppliers, the delivery timeline to consumers can be affected. This is another way your competition can best you.

Parts expense can also be prohibitive. If suppliers cannot produce parts cost-efficiently, it may indicate a threat. Perhaps it would be better to bring production in-house. This is something to consider at the strategy initiatives stage of the strategic planning process.

Threat of Customers
Customers have bargaining power that varies in degree across locations. When customers have the ability to organize effectively to pressure your company, you have a threat to customers.

The amount of leverage that consumers have will impact your decision-making. Operations will likely be affected at your business as a result.

Now that you have an idea of what opportunities and threats exist in your industry or market, you can turn your gaze inward. Use the following strategic planning tools to discover key internal capabilities and strengths. Also, pay close attention to your weaknesses – this is likely what your competition will be focusing their attention on as well.

VRIO Analysis Tool
Understanding your value chain and rating each piece of it gives you insight into your internal capabilities and weaknesses. Start by mapping out the pieces of your value chain bit by bit. This can be done as a drawing or on a computer file. Just be sure you can add to it easily, as the list will likely grow during the analysis phase.

Examples of Value Chain Capabilities
Over time, businesses build up capabilities in different departments and processes. These can be developed to such a degree that they become significant strengths. They can become so strong that they are difficult for the competition to imitate.

The technology development component to your value chain could be successful in innovating new market solutions. Your human resources department could be adept at recruiting, training, and retaining talent at your organization. Your procurement platforms could be one step ahead of that of your competitors.

More examples of value chain capabilities include your sales and marketing team, customer service, and supplier assembly. Consider each of these value chain components at your business. Are they strengths or weaknesses for your organization?

You may need to consider the competition when analyzing your value chain. Think about your marketing department in comparison to your main rival’s marketing department. Which is stronger? Why? Asking these questions will help you in the next step of the process.

Label Each Value Chain Component
The point of the VRIO analysis is to identify strengths and weaknesses in your value chain. VRIO stands for valuable, rare, inimitable, and organized. If your marketing department is valuable, and it is, consider next if it is rare. Does your main rival have a similarly built-up marketing department?

Then determine if your marketing department is easy to imitate. If it is not because your marketing department has built up a valuable network of clients and a solid consumer pipeline, then move on to the last consideration.

If your organization has the ability to organize your marketing department effectively in response to change, then this is a key competitive advantage that your company holds. Be honest during this stage of the process. Consider only current capabilities when building out this analysis. This will help you build strategic initiatives that are valuable to your business. This, rather than initiatives that speak to a future state.

SWOT Analysis and Building Your Strategic Initiatives
As a business, you do not want to compete in an area where you have little to no competencies. You will want to minimize risks, weaknesses, and threats. But to compete effectively you must exploit your strengths and opportunities first and foremost.

The SWOT analysis is the meat of your strategic planning session. You will use it to inform your strategic initiatives and improve your businesses’ strategy. SWOT simply stands for strengths, weaknesses, opportunities, and threats.

Create a 4 x 4 box and label the X-axis as strengths and weaknesses, and the Y-axis as opportunities and threats. Try different combinations in each box: SO, ST, WO, and WT. Take a look at examples and more information online if you are having trouble visualizing your SWOT table.

From these combinations, you will create your strategic initiatives. For example, to minimize an external threat, you will focus on a key internal strength you have identified. Ideally, you will have about 12-20 strategic initiatives that you will then pare down or combine to about three.

Three is a great number of strategic initiatives to have at the end of your strategic planning session. That number of initiatives is easy for everyone to remember and incorporate into their daily improvement process.

Consider Different Outcomes With Scenario Analysis
What do your company’s distinct futures look like? To be most effective, choose three different scenarios. Create a basic forecast and modify that base case to reflect three distinct future outcomes for your business.

For instance, your company may face a high-revenue and low-revenue future based on the effectiveness of your new sales strategy initiative. You can create a model that shows these futures and their monetary impact on the company.

Scenario analysis and sensitivity analysis tools help you visualize best and worst-case scenarios and present these to your management team. Some factors have a greater impact or are more sensitive to change. They can have high risk but also high reward. Decide as a team what strategy is best for you given the current external business and industry environment.

Implementation is Strategy Too
It can be easy to forget, after putting so much effort into creating strategic initiatives, that implementation is just as important as planning. Be aware of how you communicate your new strategy to your team. A good communication plan and the use of project champions can help move your initiatives along positively and productively.

Human resources can be especially helpful at this stage of the implementation process. Allocate personnel to the strategy team early on. They will help your business stay on track and keep employees informed at every step. Remember: no strategic leader can disseminate information solo. Rather, a strategy is a team effort.

Easy access to training information is important for your team members, especially ones that will be directly affected as a result of strategic initiatives or changes. Ensure that each employee has access to key information well ahead of deployment dates of changing technology or processes. Consider interactive, feedback-oriented sessions to increase buy-in.

It cannot be overstated how important implementation is to the success of your strategy. Alignment is key. Your company will not be able to move its strategy forward without buy-in and employee engagement. You can have the smartest strategy in the world and not be able to execute it.

Strategy Mapping
Strategy mapping can be an effective way to communicate strategic initiatives with your team members through the use of visual aid. Prioritize your strategic initiatives in order and place them on a color-coordinated map for deployment and training purposes.

One purpose of using a strategy map tool is to explore how your strategy affects four key aspects of your business: finances, customers, operations, and learning or growth at the company. Fitting your strategy to address these aspects forces you to think about the consequences and implications of your strategic initiatives. It also helps you think about why this strategy is a best-fit, and what goal it helps you achieve in the long-run.

Try to tie all strategic initiatives through the map back to specific departments or employees. This process can also help your team members understand how their actions affect the whole. This keeps them well-engaged and focused on value add work.

Some of us are visual learners. Presentation is everything. Executing a clear and colorful strategy map can help you disseminate important information to your employees. It can be a best practice for helping get everyone on the same page and working toward a common goal.

Balanced Scorecard
How will your team measure the company initiatives’ success or failure? How will the company’s team members know that they have achieved their goals?

The balanced scorecard is borne from your strategy mapping process. It also incorporates the four key aspects of your business: finances, customers, operations, and learning or growth capabilities.

Set clear metrics and targets for your team. Then, make sure everyone is aware of the business direction moving forward. Prioritize what your team measures and provide examples or templates of key resource documents.

A poorly executed balanced scorecard can be detrimental to employee motivation. It is important to only measure what is important. Furthermore, you must not be unrealistic in your measurable goals. In the worst-case scenario, this can encourage fraudulent behavior or the fudging of results.

When executed well, a balanced scorecard can provide a baseline for improvement. It can also be incorporated in year-end bonus negotiations or annual celebrations.

The best balanced scorecards are indeed balanced. Team members should not be able to succeed by performing in only one priority, category, or strategic initiative. Performance should be measured more holistically.

The balanced scorecard does not need to be the most complicated document in the world. It should be standardized for use across the company. The balanced scorecard should also be simple to understand.

Capturing Your Blue Ocean
In business-speak, there is an ideal state called a “Blue Ocean Strategy,” a term coined by W. Chan Kim and Renee Mauborgne. Finding that market that holds opportunity and for which you are particularly well-suited is the ultimate goal.

On the flip side, your business will want to avoid a red ocean, where competition is fierce and the only way to compete is by lowering the price of your goods or services. Nothing can spell a quicker disaster than this scenario.

Avoid the red ocean and exploit the blue ocean by implementing these strategic analysis tools. The next point to consider is whether an in-house strategy team or an outsourced strategic consultant is best for your business.

What is Strategy Consulting, and Why Do I Need It?
Strategy consulting is when businesses bring in third-party consultants to perform the strategic planning cycle. Many companies find value in bringing on a third-party rather than performing strategy planning in-house. There are a few reasons for that.

Executing strategy planning can be a daunting and time-consuming task for any business owner. Furthermore, some businesses simply lack the resources to invest in a proper strategy team. Everything from your company’s position in the maturity cycle to your employee’s capabilities as strategists can indicate the need to outsource. This, as opposed to keeping your strategic planning in-house.

Strategy consulting relies on outside consultants to map your strengths, weaknesses, opportunities, and threats for you. This is so that you and your business leaders have more time and energy to focus on daily operations.

This can be a great option for entrepreneurs and start-ups, or businesses that simply need an outside perspective or fresh pair of eyes. Having consultants take part in your strategic planning process can help keep you honest. It can also result in the best strategies for your business if taken advantage of correctly.

Why Hire a Strategy Consultant?
The stress of running a lucrative business is high. Your business leaders can be stretched enough as it is. Excess time is hard to come by and hiring an internal team, for whatever reason, is not feasible. This is the environment at many businesses, which can make the choice to hire outside an easy one.

You may also lack the expertise necessary to perform strategic planning. Perhaps your company needs outside help for clarity, feedback, and fresh ideas. Blind spots are present at every company. It is important to consider every angle thoroughly and without bias.

Lastly, your company may not have access to the latest and greatest technology for market research. Working with a strategy consultant that has access to these tools can bring value to your business.

When you shoulder a high level of responsibility at your company already, feeling alone when making decisions about the future of your business is possible. Helpful support and collaboration can alleviate this feeling. Strategy consultants provide this service to business leaders at all types of companies.

Different Types of Strategy Consulting
Strategy consultants can specialize in particular areas depending on their education and career background. Different consultant or consultant companies may have different time ranges of availability.

Bringing a third-party strategy consultant onboard comes with the decision of which type of consultant might be best for your planning process. Here we will discuss several different types of strategy consultants and the value they can bring to the table.

Brand Strategy Consultant
A brand strategy consultant can help you understand your company’s product and overall brand positioning in the eyes of your customer. This can help you develop an idea as to your brand identity. Developing your brand strategy can also help you be more effective in product messaging and retention of customers.

Brand strategy consultants can also offer strategic advice on brand protection and durability, or the deployment of a brand new logo design. Introducing a new product to capture a different market segment? Depending on your branding needs, a brand strategy consultant can help you develop a winning strategy.

Marketing Strategy Consultant
When you need robust and accurate market research, turn to a marketing strategy consultant to chart out changing market landscapes effectively. This type of consultant can also help you develop your business product’s value proposition.

When you need a successful marketing strategy, a marketing consultant can help you develop customer profiles and use data analytics for maximal impact. Categorize segments and explore product choices by outsourcing your marketing strategy implementation and development.

Financial Strategy Consultant
There is no quicker way for you to go out of business than for your company’s finances to be mismanaged. But understanding taxes and tax impact, how to forecast or budget, and other important financial topics is difficult and time-consuming, to say the least.

Leave it to the experts to conduct a product line profitability analysis. Financial strategy consultants can give you the best, most up-to-date information on asset depreciation and investment or disposal moves. And capital gains and losses can seriously impact your liability and cash flow. For expert assistance in all matters financial, collaborate with a third-party financial strategy consultant.

Operations Strategy Consultant
An operations strategy consultant assists with operational efficiency strategy generation. If your company needs a serious look at cutting costs or overhead for higher levels of profitability, operations strategy consultants can be just the ticket.

They can also help with effective implementation. Everything from training modules to the strategy deployment schedule can be worked into the strategic plan.

Risk Strategy Consultant
To prevent financial or other value loss, a business must avoid or mitigate risks in their environment. This goes back to the PESTEL and 5 Forces analyses – if you have threats in your industry or geography, these can affect how you do business.

Having a risk strategy consultant on your team can help you identify risks and develop mitigation strategies to deal with those risks. Industry experts can be excellent choices for this type of strategic consulting. They have the experience that translates well to your needs.

Technology Strategy Consultant
Many companies install new technology or software solutions into their business to help them achieve higher levels of profitability. They also install them to help the business remain competitive in a changing industry or market landscape.

Technology strategy consultants can help install new technology, identify risks with that technology, and communicate results to management and employees. New software and technology integration can seriously improve business operations. Enlist a technology strategy consultant to help keep you moving forward effectively.

Acquisition or Merger Strategy Consultant
Mergers and acquisitions are notoriously difficult to manage. Business identity and politics can prevent effective mergers and lead to mass talent exits.

To plan for and mitigate these negative consequences of a growth acquisition or merger strategy, hire an acquisition or merger strategy consultant. These consultants can assist with everything from full acquisitions to joint ventures, considering everything from legal to operational consequences of the move.

Online Business Strategy Consultant
COVID-19 and the resulting pandemic have had a serious impact on normal business operations. There is an increased need for remote, on-demand expertise. Online business strategy consultants can provide comprehensive or specialized assistance, depending on your needs.

Your selection of the right strategy consultant depends wholly on your business and the particular risks you face. Plus, expertise needs can differ drastically for small businesses versus large businesses.

Strategy Consulting for Big & Small Businesses
There is no doubt that running a small business is very different from running a large company. This is because the number of team members you employ is different. But also, your consumers have different needs as well.

Because of these reasons, small businesses will have different goals and track results differently than large businesses. Strengths and weaknesses will depend on market size and the number of employees you have.

Additionally, the guidance you need on strategic next steps and implementation advice will vary. Setting goals may be a one or five or twenty-year process depending on the size of your business and the maturity level of the industry. Because large and small businesses have different amounts and types of resources, the allocation of those resources will be different.

Are you expanding or downsizing? Bring in a strategy consultant for help on moving in or out of the small or large business space. But be sure to let your consultant know how your growth will help you achieve your long-range goals. Being clear on your overarching goal from the outset helps you get the most out of your experience with a strategy consultant.

What to Look For in a Strategy Consultant
Many strategy consultants will have a bachelor’s or master’s degree in business management. Beyond credentials, however, you must vet for skills and experience.

The best strategy consultants will have high-level critical thinking skills. They can see the big picture and long-range goals as part of the development process. But they are also adept at performing detail-oriented work and getting into the specifics.

Communication is key. Your strategy consultant must be an excellent facilitator and very people-oriented. Change is difficult for many employees. The better your consultant can communicate, the easier the transition into a new and changing strategic path will be.

Because things change quickly, it is important that your strategy consultant can go with the flow, so to speak. Being flexible and adaptive, yet results-oriented is important. The business must keep in mind its ultimate goal at every step of the process.

The bottom line is that considering your strategy consultant’s background and career expertise is a great starting place. But more importantly, your company’s new strategy consultant must have the ability to mesh with your team members. If this key puzzle piece is missing, the process of strategic planning may fall apart quickly.

Pricing Your Strategic Project
The cost of hiring a third-party expert strategy consultant can vary widely. Start with creating your company budget. Spending on strategy is important and cannot be de-prioritized. But ensure that your budget is also realistic and there is wiggle-room in case the project extends longer than planned for whatever reason.

The costs should be split into two categories: pre-planning strategy generation phase and post-planning implementation. Determine whether your company or business will require both or just one. This depends on your internal capabilities and capacity.

Depending on the firm reputation and level of expertise, you may pay more or less for a qualified strategy consultant. Be sure to do your research before scouting out the best fit for your business. Doing this will help keep your sights on realistic options rather than setting your sights on consulting above your price range.

Many consultants charge by the hour, at an average rate of $150 per hour. Price can vary depending on geographic location, demand, and timing. If you search for a consultant near the end of the year, when many other businesses have their fiscal year-end, you may pay a surcharge due to high demand timing.

Choose the Best Consulting Firm For You
It may go without saying, but choosing the right consulting firm is a highly personal choice. Your business may choose to work with a local consulting firm for one project and a large consulting firm for the next. Or, your business may keep it consistent by retaining the same strategy consultant each year for the yearly strategic planning process.

There are upsides to each, which again can only be determined by your specific needs. Everything from your location and access to quality strategy consultants, to project needs or specific challenges, will help decide what company or firm is right for you.

Resiliency During the Pandemic
The pandemic has changed the face of business for the long-term. COVID-19 has left its mark on the way we work from home. It has determined which industries are essential. The pandemic has even reinforced online markets and delivery services.

Small and large businesses alike are having to rearrange their business models and reinvent or scrap previously profitable product lines. The threat of the pandemic has also created an opportunity to connect more with consumers digitally.

An online strategy consultant can help your business weather the pandemic as part of the annual strategy process or not. The best consultants can give you information on new stimulus packages, loans, or government business incentives.

These impacts are changing quickly and can be hard to follow in the news. Having a trusted consultant at your side to keep your business moving forward is important now more than ever.

Although consulting used to be a travel intensive industry, travel is largely on hold these days. This does not mean your business must forfeit expert consultant third-party advice.

To maintain resilience during the pandemic, consider working with a strategy consultant to help you through the worst of the economic downturn. Flexibility and adaptability have always been the name of the game. The pandemic has just sped up the competitive process.

Kickstart Your Business’ Path to Success
Keeping a business moving toward its goals is the primary objective of every business owner or leader. Incorporating an annual strategic planning session into your yearly calendar can help you keep your eye on the ball. It can also help keep your business competitive and responsive to every opportunity.

Your business’ strategy consulting pathway to success starts by hiring the right third-party consultant expert for your team. For more information on how to keep your business competitive, and more business strategy tips, check out our blog.

The post What is Strategy Consulting (and Why You Need It) first appeared on Kamyar Shah.

Strategy Consulting vs Management Consulting

0
0

Strategy Consulting vs Management Consulting

Are you wondering whether your business needs strategy consulting vs management consulting? While at face value they might seem the same, but there are key differences.

In this in-depth guide, you’ll get to discover what strategy consulting is and isn’t, and what management consulting is and isn’t. Read on to explore how consulting can help your business succeed whether it’s becoming more profitable, fixing problems, or standing out in the competition.

What Is Consulting?

Consulting is when a business gives expert opinions to a specific field or person. It’s giving advice to different businesses based on organizational structures, strategy, management, and operations.

A consultant will bring their experience to help businesses succeed. While the base term of consulting doesn’t require certifications, firms, or degrees, management consulting and strategic consulting often do.

It’s about helping a person solve their problem and move from the current situation to the desired state. For example, say someone who is an accountant makes about $60,000 a year.

Maybe they’d make more working for a company, but they have entrepreneurial goals. A management consultant or strategic consultant can work with them to help go after their desired goals to make more money and stand out.

Some consultants will reach out to other experts to ensure that they’ll deliver the results the client is looking for. For example, an accountant looking to grow might require learning digital marketing to stand out online.

Why Hire Consultants?

Many hire consultants for 3 main reasons. The first reason is that they don’t want to waste their efforts or time. They want a proven system to follow.

The next option is that although they might have an idea, they’re not quite sure how to implement it. The last reason is that they know the problem, but aren’t sure how to solve it.

Obtaining Goals Quicker

While some might be patient and take time exploring the best methods for problems, many want the reward as quickly as possible. They realize that if they try to learn it from the beginning, there might be mistakes along the way, and it’ll take longer.

Proven System

Management and strategic consultants will have the education and expertise necessary to give businesses a proven system. It’s up to the business to implement the system after the consultant leaves.

What Is Management Consulting?

Another term for consulting at a base level is giving advice. When you take a look at different types of consulting, for example, IT, they help their client with IT problems.

Management is about combining the different departments and functions of a company. Management consultants work on business problems at a top-level. That includes the Board of Directors, Boards of Management, CEOs, etc.

Another term for a management consultant is what’s known as a management analyst. Their goal is to help businesses come to an outcome whether that’s to be competitive, profitable, or solve a problem.

Management consultants can break down into different functions such as IT or inventory control. They can also have specialties within an industry such as education, manufacturing, and healthcare.

Identify Problems

A management consultant works with a leadership team to identify the different problems in order to come up with a solution. They can be found in teams or self-employed working with different businesses. Most work for a consulting firm and will help different businesses.

Responsibilities:

  • Review company data such as payroll information
  • Inspire faster utilization
  • Meetings with clients
  • Communicate the work product or results
  • Go over the scope of the work
  • Plan out schedules
  • Research a client’s business challenges

What Is Strategy Consulting?

Strategy consulting is where the consultant has experience in what they’re providing expert advice on. This can include future directions or strategic issues so the value and growth of the company improve.

This can include marketing and corporate strategies. The marketing strategy can include relating products with products of the competition for customer experience, channels, and pricing. Under the corporate strategy, it’s about market positioning, growth, etc.

Scope

Since management consulting is a broad term it can refer to different niche areas of business management and handles different problems and issues of an organization. It’s about taking a look at data gathering, recommendations to management, defining problems, and being part of the implementation process.

Under strategy consulting, it’s about taking a look at the overall strategy of the management team. While it falls under management consulting, it takes a look at specific issues that those in management experience.

All strategy consulting firms fall under management consulting. Not all management consulting firms are strategy consulting firms.

A Breakdown of Management Consulting

Certified consultants will gather research and data for their company. They spend a large amount of their time doing the necessary amount of research.

They’ll take a look at different focus groups with 3rd parties, research industry reports, interview company employees, and take a look at internal financial figures.

This can include large files with raw data. Management consultants are organized and will have this data on an Excel sheet to better understand it.

Client Meetings

The consultant will meet with them to further discuss the project and plans. Every meeting doesn’t have to be with a C-level executive, but instead, the consulting team that you as the client approves.

This can include directors, VPS, etc. You’ll receive updates every few days or weeks from the point of contact.

Understanding Objectives

Your management consultant will spend a large amount of time with their management team in order to have a clear objective in mind before beginning.

Discussions can include interviews with employees or taking a look at financial information. Many consultants will start with a hypothesis for a solution and what data they’ll use to test this idea.

Suitability Differences

Both strategy consulting and management have different methods when it comes to business situations. Strategy consulting comes up with plans for a certain period of time to ensure that there are cost reduction and promotion of a new product.

It’s about solving a problem for the client to have satisfaction. Strategic consultants are a good idea when there are issues that need to be solved. Whether that’s unexpected events, developing a new business, etc.

Management consulting is about developing a method for faster solutions. They’re good when there’s a known opportunity or issue. Or, when there’s a tested solution available.

Why Work With a Strategic Planning Consultant?

They’ll come up with a competitive business strategy for different businesses with a detailed action plan. Different methods and tools will be provided to meet the goals of the company.

It can include:

  • Everyone involved
  • Documentation
  • Notes on all discussions
  • Coaching
  • Advising
  • No short cuts

Since a strategic planning consultant is from the outside they can give you a new perspective without being influenced by the company’s culture. This can lead to new ideas and suggestions that’ll help the business gain clarity.

Conducting Research

They’ll collect market intelligence and analysis on markets, competitors, industry trends, etc. This research will help businesses in evaluating and identifying opportunities that lead to growth.

Developing a Plan

They work with management to come up with a business strategy that works for a business. This includes taking a look at the budget, tasks, strategies, goals, and other needs of the strategy implementation process. It lets a company know what will be done, and what will be the goal.

What To Look for in a Management Consultant?

A high-quality management consultant will make a company’s issues and business a top priority. A management consultant will ask business questions during the sales process to dig deeper.

There are industry specialists and generalists. While a generalist might not have that special quality, they can solve and see different problems and opportunities from a fresh perspective. A specialist in that industry can bring in an understanding as well.

They See the Gray Areas

As a business, it’s important to see the gray areas to develop and use them in businesses. A strong management consultant will see the gray areas in order to see the difference between OK and good opportunities.

Before hiring a management consultant, find out who you’ll be working with before you begin. See if they take into consideration the gray areas as well.

Easily Translate

The right management consultant will create reports in a timely manner. It’s harder to find one who will give you measurable results as well, but it’s possible.

They’ll help with building out new ideas into the real world. A firm that can take a look at tactical and conceptual ideas is important as well.

Strong Outcome

A management consultant should have the outcome as the most important part of the process. A company’s interests should always be at the forefront of what a management consultant does.

Understanding the Project

Before hiring a management consultant, it’s a good idea to find one who understands the scope of the project. After they pitch to a business, a company should decide whether the consultant understands the problem and their needs.

Responds to Questions

Ask the management consultant how often before a response will be received, or questions a business may have. A consultant with a strong response time is important to ensure that there are no steps or questions missed.

Avoid a consultant who will walk around the question and make a response to salesy. Pick someone who will listen to the needs of the business to ensure that they understand the facts. Make sure that the business will receive the specific answer to that question before proceeding with that consultant.

Experience

Look for a consultant who has the experience necessary to help. While each business will have different requirements, it’s a good idea to find a management consultant with plenty of experience.

Understanding the Differences

To understand the differences between strategy consulting vs management consulting it’s important to take a look at examples. Imagine a restaurant that’s having trouble with getting new customers.

Maybe they had a commercial to advertise their products but it fell flat. Also, say this company underpays its staff who is also overworked. They also don’t have healthy options so lack variety.

This restaurant keeps going to the same methods and hoping something will change. Strategy consultants and management consultants will handle this situation in a different way.

The Strategic Consultant Way

A strategic consultant will provide advice on specific management topics instead of identifying the problems as a whole as a management consultant will do. To help the business, they might reach out to different consumers and conduct surveys and interviews.

They’ll also take a look at different data to analyze and test different hypotheses they come up with. The conclusion is what path they’ll take to help this failing business. As a strategy consultant, they’ll take a look at one management issue and come up with a plan to fix it.

The Management Consultant Way

A management consultant will take a look at the restaurant’s entire business operation. They’ll take a look at the different components that are behind the company’s problems. This can include different parts of the organization such as IT, marketing, finance, etc.

It includes taking a look at the different concerns from the different parts of the organization. They’ll provide either advice or actionable solutions that the organization can take.

This can include a new plan from new market research, or even creating a healthier menu. It might also include improving the training for the restaurant managers.

They might also recommend higher pays for the employees and how this can be done. Objective opinions, guidance, and advice can also occur as well. A management consultant will use their understanding from different businesses, problem-solving, and other professional experience to solve the problem.

How To Pick the Right Consultant?

When looking for an external consultant, find one who has strong experience. Whether you’re looking for a strategic consultant or management consultant is up to the needs of the company.

Choosing a Consultant

For example, for more of a consultation to do with the business, choose a strategic consultant. For a broader sense of multiple issues, they’ll want to pick a management consultant.

Communication Skills

A strong management consultant will have good communication skills in writing and speaking. Also, one who will listen to the needs of the company they’re working with.

The management consultant will listen to the business and current needs in order to help. If a management consultant doesn’t listen, then it’ll be harder to come to a strong conclusion.

Organized

The right management consultant will be organized with the information when they come up with a solution. Not just organization on their desk and in papers, but in their mind as well. They’ll be able to formulate a solution that best fits the business based on their past experience.

Adaptable

Every business and client is different. Whether it’s the same business or completely different, a management consultant will need to be able to adapt to the needs of each business.

Creative Thinking

Since each situation and client is different, a strong management consultant will be able to think creatively in order to achieve results. There will be no cookie-cutter approaches, and instead, they can take a look at the weak points of a business. They’ll take a look at what needs to improve, the different facts and figures, and solutions to the problems.

Writing Skills

The ideal management consultant will have writing skills to fill out different manuals, reports, and other types of documentation. They’ll be able to communicate their different reports to you as well.

Time Management

A high-quality management consultant will be great with time management. This is due to either being paid with a fixed-fee agreement or per the hour.

Management Consultant Job Description

In order to become a management consultant, a person must have at least a Bachelor’s degree from a strong institution. They must have strong attention to detail, knowledge on researching, presentation, and analysis knowledge.

They must be independent contributors who can work alone or with others. They’re self-directed and don’t need guidance.

Preferably, they should have a few years of experience under their belt, and an MBA from a top institution. They need to be strong in PowerPoint, Microsoft Suite, and Excel as well.

A management consultant needs to be confident in what they say and be able to work in a team environment. They also need to be able to work with heavy workloads. Some management consultants will have different certifications such as a Financial Modeling & Valuation Analyst.

The Different Types of Management Consultants

Under the umbrella term of a management consultant, you have different consultants such as information technology and strategy. An operations consultant is someone who provides the business with guidance for business practices.

A financial advisory consultant gives advice to clients regarding acquisitions and mergers. Human capital consultants give businesses solutions as far as organizational changes.

Main Roles

The main role of a management consultant focuses on research and white papers. They contribute to the pieces. As time goes on they normally pick a specialty to focus on.

A management consultant’s role is about giving solutions to different businesses. It can include strategy development, process optimization, new technology introduction, etc.

Management Consulting Facts

When hiring a management consultant, they help businesses grow. Whether it’s guidance or help in solving one problem or multiple, a management consultant can help. Management consultants can help identify problems that businesses aren’t even sure that they have.

Different Results

Some think that management consultants are only hired when advice is necessary. The truth is, they can be hired as well for improving profits and efficiency as well. They can help with standing out in a competitive market.

Various Methods

Different methods are used in order to come up with a plan of action. For example, that can include interviewing management and employees. They do so in a manner that won’t interrupt a business.

Can Be Self-Employed

While some business management professionals can work for a business, some are self-employed. Whether a business wants to work with a large, small, or self-employed firm is up to them.

But, with a self-employed firm, there’s that personal touch. You can find consulting firms within public institutions, big corporations, private equity funds, and non-profit organizations.

Typical Consulting Projects

The length of time a management consultant will work with a company varies from 3 months to 1 year. It can start out with signing a short-term contract of about 2-3 months, and then change from there.

The fees involved depend on which consultation team you choose. Consultants charge more because they work with other consultants across the world for different ideas.

Work Schedule

Many management consultants work overtime to meet the needs of the different companies they work with. The role tends to require travel whether that’s by car or plane. They spend very little time in the office and are often out and about from place to place.

When To Hire a Management Consultant?

A management consultant should be hired when a business is looking for temporary help with a problem or skill. When a problem comes up in a business and they’re not sure how to solve it, a management consultant can help.

Consulting vs Supporting

In the supportive role, they’re similar to consulting but slightly different. For example, function specialists are within the function support center. In the research and intelligence role, they’re in offices providing support for projects in multiple locations.

A more popular supporting role is what’s called an implementation consultant. It’s similar to a consultant since they work with clients. The focus of their work is mostly on the implementation of recommendations from past projects.

Do Consultants Help Clients?

The advice given by a consultant comes with conditions that must be met by the business. While some are done properly, others are not.

Consulting is known to be a prestigious field and many go into it. Many who start out in consulting may eventually go into other roles as well.

Consulting Track Levels

There are different tracks for consulting such as entry and ranks. Entry is for those with a background in any education. Business knowledge isn’t required.

Some consultants might have a background in Math, engineering, etc. Next is what’s known as different ranks.

At different firms, there will be different ranks, but normally 3 groups. There are project owners, managers, and staff.

After consulting, you might find some switching to other roles such as corporate strategies, entrepreneurship, operational roles, etc. They can also head into finance and work with Corporate Finance or Private Equity firms.

Who Should Hire Strategy Consulting?

Strategy consulting is great for an entrepreneur who doesn’t have a plan of action. Many who own their own business often make the mistake of taking a look at the competitors and what they feel comfortable with only.

Why Strategy Consulting?

While some might wonder why employers can’t pull employees from different departments to fix an issue, it has to do with focus and time. Strategic consultants have the experience necessary to guide a business with the right strategies.

Strategic consultants are normally hired for a set period of time. During this time they’ll place their effort, time, and energy into different problems.

Executives at businesses are busy running their business. That’s where a strategic consultant comes in. They’ll be able to focus on the different implications of changes within the business.

Also, they’ll bring new ideas instead of just the company’s ideas. They won’t have judgments or sensitivities that an employee might.

Whether they’re managers, board members, or executives at businesses, they’ll have stakes in the business they won’t want to risk. Having a consultant come in will bring a fresh perspective that can help.

Strategic Consultant Skills

Being a strategic consultant involves analytical thinking. Along with this, there must be problem-solving skills as well. Under strategic consulting, they’ll have a specialty as well.

Along with these, a strategic consultant must have time management. This is due to being able to research, meet with clients, and meet deadlines.

Since they work with people they must have strong communication skills. They’ll also need to be able to get down to the problems a business is facing.

Flexibility is important as well since no one knows everything. This means that there will still be parts of a business they’ll need to learn to come up with a solution.

This includes coming up with new information and trends. Strategic consultants often work with CEOs of different companies.

Questions a Strategic Consultant Will Ask

A strategic consultant will take a look at whether or not you want to launch a new product. At that point, they’ll decide how the business can stand out from the competition, and if it’s possible.

They’ll also find out whether the company wants to collaborate with other companies or not. Also, how they’ll market for the future.

Requirements of a Strategic Consultant

Plenty of experience will be a requirement for a strong strategic consultant. They’ll need to understand how to be professional with executives, and have an effective approach.

They’ll need to be confident in the results and advice they give. It’ll take a few years before a strategic consultant will meet the requirements to be a successful consultant.

A strategic consultant will have at least a bachelor’s degree, often in the business field. Having a bachelor’s degree doesn’t guarantee a position, and it often requires an MBA.

This is due to firms wanting candidates who have knowledge of business management and problem-solving skills. They’ll also develop analytical skills from the MBA as well.

How To Choose a Strategic Consultant?

First, look for a strategic consultant who has experience within the business industry. Choosing one who specializes in the field is another option.

Next, decide what services they’ll be offering you, and if they fit the business needs. Some consultants might only provide you with a report on how to proceed, but others will give more in-depth knowledge.

Next, decide on the budget of the business. While it’s important to find one who has experience within the industry, they need to be within budget as well. Some strategic consultants charge a flat-rate project fee, while others charge by the hour.

Research

Next, check online to identify the right consultants for the business. Do they have reviews online? If not, businesses can ask for testimonials from previous clients.

While asking friends and colleagues for referrals is an option, every business will have different needs and requirements. After the research process, you’ll need to interview the consultants.

Interview

It’s important to ensure that not only will the consultant fit within the budget, but they must bring what they claim. It’s a good idea to interview different strategic consultants to find the right one for each business.

Next, decide whether a self-employed consultant or one who works for a firm is the better option. Look into the different expertise that the consultant has as well.

Facilitation Skills

You’ll want to find a strategic consultant who has facilitation skills. Facilitation is what can help you succeed in your business.

Facilitation is an important part of the complex components of the business. When a facilitator comes in they’ll be able to take a look at the different personality types within a business to see what’s working. They might make adjustments to the discussions for the most effective results.

Experience With Multiple Industries

Another advantage is having a strategic consultant who has experience in various industries. While it’s important for them to have experience within a certain industry, they can bring more to the table with multiple backgrounds.

A consultant who has experience in multiple industries can provide curiosity and versatility. This can lead to success within the business when they’re given a fresh perspective.

Professional Knowledge

A strong strategic consultant will have experience, confidence, and competence. They’ll have a strong portfolio to back up what they say and communicate it properly.

A strong strategic consultant will be able to speak with different employees and help them gain confidence in what they’re doing. Without building that rapport the employees may fail to deliver the requirements.

Encourage Transparency

Before hiring a strategic consultant, it’s a good idea to encourage honesty and transparency before beginning. A consultant who is transparent about the good and bad about a company is vital for a business.

Even going with a strategic consultant, it’s a good idea to find one who has open communication and will let a business followup with questions. A business should understand too that while a strategic consultant will provide a plan, it’s still up to the business to run it, in the end, to be successful.

Open to Recommendations

Businesses should be aware that as they choose a strategic consultant, they’ll need to be open to extending deadlines and other recommendations. While it’s important to be open to recommendations, it’s also vital to understand why a consultant can’t meet the deadline if they promised a certain date.

Strong Solutions

When a business interviews each strategic consultant, they should see if the solutions they brainstorm make sense for the company. Ask the consultant how the solution will address the needs of the business and how it’s better than other choices.

Communication

Picking out a consultant who can communicate in a clear way is important. While a consultant who speaks in hard-to-understand jargon might be appealing, it’s important to understand what they’ll do and why.

Fee Structures

Some consultants charge for the whole project, others by specific tasks, and some by the hour. Some might offer the option to break the project into different sections. Within each section is a fee. It’s about ensuring that these fees are affordable for the business as well.

How Many Projects?

How many projects is the strategic consultant currently working on? Do they have the time necessary to take on another project?

Or, do they focus on one project at a time? Find out the time frame they’ll be able to finish up the different work requirements.

Future Help?

Once the contract ends, will they answer questions? Even after the report ends, it’s a good idea to find out if they’ll be open to helping with any questions a business may have. While not every business needs ongoing support, it’s a good idea to find out whether a consultant does provide it just in case.

Management Consultation Cons

Being a management consultant can have cons. For example, they might experience a large amount of stress.

Businesses can demand a large amount from a management consultant. While they’re providing exemplary results, it’s about balancing the needs of the client, meeting the requirements for solving a problem, etc.

While there’s much critical thinking involved in the role of management consulting, creativity is limited. At a junior role, they’re more involved in analyzing data and gathering research. For creatives, it’s not the best role.

No Tangible Results

Being a management consultant there aren’t tangible results. At the end of the day even with strong research and support, it’s up to the client to follow the guidance given. Seeing these results is rare since when the project is done they’ll head to the next project.

Independent Consulting

Independent consulting is when a person chooses to run their own business around what they know. This is when they choose to be self-employed instead of working for a company.

Many can be found online building their business. Also, independent consulting can be on a broad range of expertise.

Corporate Consulting

This is often when someone has years of experience under their belt in a particular industry. This can include technology, software, and IT. It can be B2B consulting, in-housing consulting, etc.

Delivery Models

The different types of consulting can include online programs, individual coaching, group coaching, done with you consulting, and done for you consulting. Done with you consulting is where the consultant and the client split the work.

It’s not providing the entire service, but instead, just a section. It can include receiving a part of the service but still receiving advice on the other methods.

Done For You

This is where the services are delivered by the consultant. For example, maybe you’re helping a business increase their sales you’ll offer lead generation. This is the most time-consuming delivery option for consultants.

Group Coaching

This is where a group of clients will receive help at the same time. It can include 20 people or 3. Whether on a phone call or through the internet, there are different options available.

Online Programs

This is where a consultant creates a course or program that can be viewed by as many people as they’d like. This allows clients to learn different information in their own time.

Some consultants choose this method since it’s a more passive option. There isn’t a time commitment required with this method. They receive the course and then implement the methods taught.

Before Choosing a Consultant

Before choosing a consultant, businesses should request proposals that state project goals, the budget, and time constraints. This helps both the consultant and business decide if they’re the right fit.

The post Strategy Consulting vs Management Consulting first appeared on Kamyar Shah.

Strategy Consulting vs Business Consulting: What’s the Difference?

0
0

Strategy Consulting vs Business Consulting

There is every chance that at some point in your career you will need to take on advice on where to take your business. Maybe you will get this from a peer, a previous colleague, or it might be your manager. Either way, it might turn out they do not have the answer you need.

This is ok, not everyone has every answer available at their fingertips at all times. Sometimes you need a little extra help, and that is where consulting firms come in. With so many businesses dedicated to consulting, however, what type of consultancy do you need?

This article will delve into both strategy consulting vs business consulting. By the time you have finished reading, you should have a good idea of what both directions can offer you and which you should be aiming to hire.

Why Might I Need a Consultant?

There are a large number of reasons why you might require a consultant, generally. It could be that you are losing money, or you might not be making the deals you wanted to make. You could have conceived of a strong concept for your company but when it came time to actually implement it you may have had problems.

In general, a consultant should be coming to your company with a strong sense of who you are and an intent to improve your business in a variety of ways. They may already know what the problem is, or they might need to spend time investigating your issues from the ground up.

Given enough time and freedom to make suggestions, a consultant can help your company plan for the future of your industry. They can also give both general and specific advice on how to improve your potential in your friend.

It may be that you are missing opportunities that come up due to putting out fires in your own workplace first. If that is the case they will suggest reorganizations you can do to make the most of the situation as it currently stands.

One of the best things about a consultant is they can give you an outsider’s view. This will likely be far more objective than any viewpoint currently espoused within the company itself.

Third-parties are much more likely to see problems and talk plainly about them. Whereas insiders often cannot see the woods for the trees or feel they must hide behind etiquette.

Generally, consultants can assist you where your own teams have failed and can be a boon for any company looking to be self-reflective. So long as the company has the follow-through to improve, they can take what they get told on board.

Strategy Consulting vs Business Consulting

Both the use of strategy consulting and business consulting can be a time to reflect. They are often used to improve your company’s processes one step at a time in a way that should improve your approach. Which one is best for your company depends on exactly the situation you are trying to resolve.

In a very broad sense, business consulting is generally focused on business processes. These are things like human resources, finance, building maintenance, and health and safety. A consultant would look at these and discuss methods by which money could be retainable in each area.

They would also search for areas of liability and determine where you may get in trouble in the future. This can be so the efforts by the consulting are not in vain at a later time.

Strategy consulting, on the other hand, will focus itself on a specific concern. It may be that your company is losing money to a competitor. If that is the case they may focus on what makes you and your competitor unique to find a unique selling point for your product.

Strategy consulting is often described as a niche in management consulting. It will often advise the highest echelons at a company.

Alternatively, it could be that one of your products underwent a market perception shift. If that is true, they may be able to inform you of how to remarket yourself towards a new vision for the product.

There is a lot more to both approaches, however, and you should be aware of exactly what each one entails before deciding on a path for your business.

The History of Strategy Consulting

Strategy consulting began as a part of the larger concept of management consulting. This started in 1886, formed by a group called Arthur D. Little Inc.

Their first major project was with General Motors’ initial research and development branch. In this area, they gained a fast reputation as being able to solve any problem.

In the 1930s, however, a boom in the economy led to huge growth in the demand for such services. Multiple companies opened their doors to assist other groups. Many new businesses needed advice, and such consultancies were champing at the bit to prove their worth.

By the 1980s, the industry had grown in leaps and bounds. In this decade, there were at least five consultancies with over one thousand employees. By the ’90s, this had exploded to over thirty firms.

One of the main reasons for this was the sudden surge in information technology needs. This meant a great many people needed advice on how to set up and maintain I.T. infrastructure.

This new technology pushed the strategy consulting business in new directions. They took advantage and expanded their ability to promote themselves.

These days, even governments hire strategy consultants. They do not take part in decision-making. Instead, they evaluate government entities.

Government strategy consultants evaluate existing industries or publicly-owned groups. and provide reports on their success. This entitles the governments they work with additional insight into these areas. Areas where the government may not have personal experience or good business acumen.

Strategy consultants are also often seen these days as people who focus on trying to change company culture from within. Directives such as the FISH! Philosophy or diversity groups present themselves as this kind of consultancy in action.

The History of Business Consultancy

During the history of management consulting, a specific set of niches developed. These were for when companies needed to focus on their internal processes, such as finances, law, marketing, or human resources.

Many of the same players as in the strategy consulting world got involved with business consulting from an earlier stage. It was only when different forms of consulting began to take shape, however, that business consulting became a form in its own right.

These days, business consultants get brought in earlier and earlier in a company’s timeline. They are often focused on companies in a period of growth and upheaval. Therefore, they tend to assist when a human resource division needs to be set up.

Alternatively, they get involved when companies install various legal frameworks. They enter at this stage to ensure the company follows appropriate guidelines to ensure its legal position.

Over the history of business consulting, they have grown more and more focused on specific areas. At the start of the consultancy industry, you might have one consultant for your whole business. These days, you would tend to require one for each area where you are having difficulty.

As the Internet has become more ubiquitous, business consultants have been able to stay more and more in contact. This has allowed niche consultants to remain off-site and get called on for specific tasks more often and not always be on call.

Despite the disparate nature of such consultants in this day and age, the market for business consultants has now grown. It now stands at over one hundred and thirty billion dollars. This has made it a very healthy place to work and thrive.

Who Are the Big Players in Business and Strategy Consulting?

Business consulting, or management consulting, is a very large part of the consulting industry. Because of this, most consultancy firms have dipped a toe in its waters.

Due to this lack of focus, the business consultancy industry has split itself into multiple spheres of interest. These include information technology, recruitment, or employment agencies. Each of these spheres has skewed into the consultancy business to take advantage of the profession’s needs.

Regardless, some companies hold onto these branched firms. They continue to consolidate themselves into corporations with significant reach. This allows them to reach dizzying heights in the industry and beyond.

The four primary consulting firms, known as “the big four”, include:

  • PricewaterhouseCoopers, an English and American conglomeration that operates in over 150 countries
  • KPMG International, focusing on tax, audit, and advisory services in over one hundred and fifty countries
  • Deloitte Touche Tohmatsu Limited, a private company in the United Kingdom consisting of multiple firms
  • Ernest & Young Global Limited, a British-based service with nearly three-hundred thousand employees.

The above four consultancy firms make up over thirty-nine percent of the consultancy market in terms of business share. This makes them a significant player in the area.

With the rest of the top two hundred entries, they add up to around eighty percent of the market. This shows that these four hold a significant amount of clout.

As time goes on, both the market as a whole, as well as these four’s shares, continues to grow. There are huge gains still available even for those who are not currently in the top four.

Booz Allen Hamilton, for example, recently won a contract with the US Department of Transportation. They are showing that even the big players are beatable in the open market.

What is Unique About Strategy Consulting?

This method of consulting focuses only on the proverbial levers it can pull to deliver the intents of the business. It is externally-focused. While it may change things within the company, its goal is wholly the grand success of those it grants consultancy for.

Changes it may choose to make could be from a wide set of areas, examples include:

Challenging organizational structures: This is to ensure employees are well-managed. They will ensure members of staff follow processes appropriately. Older companies are prone to stagnation, meaning a shakeup can help discover areas of issue.

Encouraging transparency: Ensuring the top level of the organization has eyes on all of those underneath them. This is so that management can make decisions with the highest level of scrutiny and knowledge available.

Preventing micromanagement: This is often done by retraining management and executive teams. After this, they will have greater trust in those underneath them. If necessary, hiring and firing of others must occur so that the executive team can have faith in those they are overseeing.

Investigating the current strategy: To ensure management aim the company in the correct direction. If money is being wasted on superfluous tasks, the consultant will discover it. Those in charge can then ensure things are moving forward wisely.

Checking human capital: The consultant can ensure the business’ human resources are well-assigned.  This is to make sure the correct amount of human resources are available to reach the company’s strategic goal. They will be able to inform a business of exactly how much they need to upscale or downsize in each area.

Discovering specific concerns: A strategy consultant will interview individual team members. This will occur to find weak links in the chain. They will then make recommendations on retraining or reassignment as needed.

What is Unique About Business Consulting?

Business consulting is usually aimed at senior management. It aims to focus on the business’s processes to find areas of concern in how they organize themselves.

Executives hire business consultants for one specific purpose. For example, a company may wish to focus on ensuring their team does not limit customer growth. Or will encourage the company to innovate in a particular area above everything else.

Business consultants will investigate that one concern above all others. They will then iterate on methods to boost the company’s ability in that regard.

Some of the consultant’s roles may overlap with those of a strategy consultant. A business consultant, however, also attends to organizational matters. While their role may involve discussing a new strategic plan for the company, it will not come down to them to put it in place.

Example tasks for a business consultant may be to focus on:

Outsourcing: Determining what the company can remove from their docket by pushing it to an external agency. This will assist the organization by allowing them to focus on important and complex matters. This is in contrast with day-to-day problems which the company can move elsewhere.

New Technology: A business consultant may investigate a new IT system, especially if the old one is holding the company back. They will make use of the resources at their disposal to upgrade the company with minimal cost.

Optimization: Some companies have a definitive output. such as software iterations or discrete products. In these situations, a business consultant can look at the internal processes by which the company produces its product. They may make recommendations on new flow, systems such as Agile development or lean architecture.

Is Either Of These the same as Management Coaching?

Management coaching has often been mistaken for business and strategy consulting. This is due to such consulting sometimes needing to improve management’s outlook.

Management coaching is a process by which those in an organization’s decision-making tier improve their methods. There are many methods by which this can happen. Examples include direct teaching and training, or by allowing managers to shadow other members of the company.

Business consultants may encourage the upper echelons of a company to undergo management coaching, but it is not the same process. Similarly, strategy consultants might ask for managers to gain a better understanding of how to succeed. It is still not the same, however, as other things happen at the same time during a consultancy period.

When Might You Need a Strategy Consultant?

A strategy consultant is often required when you notice a company has lost its direction. This may be due to several reasons, but a common symptom will be that it tries multiple methods of changing its output in quick succession. This often suggests it is struggling to find its feet after a failure.

In this situation, the effectiveness of the company’s current strategies has been somewhat lacking. They may need an outside perspective.

Internally, their organization may be performing poorly and morale may be at an all-time low, leading to a failure to output products. Externally, the perception of the company may show confusion and it may be hard to ascertain what the company’s direction is.

If external impressions are that the company can travel in a straight line. If that continues, it will start to lose clients as they feel like the organization cannot match their needs.

As someone in charge of the organization, you should remain aware of this possibility at all times. Other symptoms may include increased defensiveness from senior staff. This will likely be due to them wishing to justify their position.

Alternatively, problematic behavior from non-management staff may suggest such problems. This will be as they feel aimless or pulled in multiple directions.

There is often not one reason for this to be the case, but you should investigate which it is. Different problems may lead to you requiring different forms of strategy consultant to react in unique manners.

There is a great diversity in the disciplines of strategy consultants. As this is the case, being able to communicate your needs well is a good first step.

Then again, you can always hire a strategy consultant to perform the diagnosis first.

When Might You Need a Business Consultant?

Sometimes you may find your output slowing down when there has been no need to pivot. This is often a good sign you should hire a business consultant. It will often be a symptom of an internal problem rather than a concern with the business’ direction in the wider world.

Another area might be if you find yourself falling behind technologically. Sometimes tech has simply been an area you have not ficus and therefore you do not have the internal expertise to diagnose how to improve. A business consultant can interface with your I.T. specialists and ensure you get the best upgrade possible.

Other areas of business consultancy include attempting to reassert an appropriate company culture. This can be very difficult, especially if you wish to pivot to a new line of thinking within an existing space. Business consultants are well-placed to assess your company and determine how to go about this.

They can investigate how your employees currently work, then determine how best to change that. Trying to enforce a new culture from the executive level down rarely works. Instead, they will foster a culture that fits your employees and gets the best work out of them.

If you find your company growing, remember that you do not always need to set up internal processes yourself. If you require a new HR department due to your company growing, business consultants can help get them off the ground.

Alternatively, you might all-of-a-sudden find your business not needing a portion of the company. This may be due to an internal redundancy or a market change. In these situations, business consultants will look at your company’s needs and perform a variety of roles to determine how best to move forward.

What Are the Signs of a Good Strategy Consultant?

When you bring a strategy consultant onboard, you will want to ensure they are up-to-speed on the company’s history. You will also want to make sure they are aware of existing strategies.

This requires they be a fast learner and able to pivot to working how your business currently operates. If they do not, they will fall behind. They will be unable to evaluate your position in the market and provide methods by which you can seek to improve.

A consultant must work with many external businesses. Because of this, they should be able to adapt to any situation no matter what they get thrown their way.

You do not want someone who uses the same methods again and again, because they worked with previous companies. You want someone who is highly adaptable and able to work with you to produce results despite not being in the same location they were before.

When working with a strategy consultant, you want to ensure they are self-motivated enough to get going without your oversight. They are the ones who should produce reports on how to improve your company, not you. You are, however, expected to follow their advice.

When working with a strategy consultant, you should also ensure they have a strong understanding of the market as it currently stands. There is no use in having someone focused on strategy when they do not know how to move. It would be like playing chess and not being able to see your opponent’s pieces despite knowing how they can move.

Finally, trust your gut. If you feel you do not trust a strategy consultant to have the best interest of your company at heart, you can always ask for a new one. Sometimes someone might simply not be a good fit.

What Are the Signs of a Good Business Consultant?

Similar to a strategy consultant, make sure any business consultant you bring on has your specific company in mind. If you get the feeling they are peddling out the same tried solutions to everyone, show them the door and hire someone bespoke. If they are not invested in making your company the best it can be, they are of no use to you.

A good business consultant will also not give you one solution. They should have a good range of knowledge and also allow your business to make its own decisions based on many options. Therefore, a consultant who knows their stuff will be able to offer a range of solutions.

You will then be able to pick one which matches your culture and budget. This will get much better buy-in from your staff than receiving a mandate about what they should do at every turn.

Good business consultants should also have a solid network of contacts. If you hire them to assist you in building an HR team or an IT infrastructure, they should have multiple people who they can draw on to assist. If they only know of one group who can help you with a particular problem, they are either accepting bribes or are terrible at networking.

Finally, you should know that the best choice for consultants is someone who cares about improving a company, not pushing methods. They may love Agile, lean processes, waterfall, or many other things. That does not matter, however, when it comes to the fact your company’s output should be the priority for them.

If the consultant is pushing a personal favorite methodology, maybe it does work. They should also be aware, however, that your company might not work with that process.

Making Sure a Strategy Consultant Can Do Their Job

Ensuring a clear line of communication between the management team and a strategy consultant will be the best way to empower them both. Without this, the consultant will not be able to ask questions when they need to and the managers will be unable to learn what to do next.

This often starts with focused meetings and interviews with those in charge but can go a lot further than that.

Ensure the managers know the reasons the consultant will have involvement in the company. There needs to be buy-in from all affected levels, so they need to understand and own up to their own failures. If they do not, the company will be unable to move forward even with the consultant’s assistance.

Regardless of what kind of consultant you have, you also need to make sure they get feedback. Consultants thrive on knowing how they are performing and how the team is responding to their suggestions.

One of the biggest problems a strategy consultant can come across is a team that does not trust them. The consultant’s credentials and attitude should speak for themselves. If this is not the case, however, work with them to improve the situation.

Sometimes the best thing a consultant can do is be honest about the reasons behind their purpose there. Even if there is a chance their feedback will have wide-reaching repercussions for the future of the company.

It is better for everyone that their interactions be from a position of transparency and honesty than finding out the worst later on. If that happens, it will taint any further interaction. You do not want to find yourself with a consultant whose expertise is no longer put to use as they are not trusted.

Making Sure a Business Consultant Can Do Their Job

Working with a business consultant to make changes in your company can have many benefits, but their hands need to be free to make those changes.

To ensure this happens, make sure to get them up-and-running with whoever it is they need to be working with.

As they will be new to the company, introduce them to whoever their main point of contact will be and make sure they have an open line to them whenever needed. This will prevent them from finding bottlenecks as they start to work and allow them to get answers to questions fast.

It is very unlikely they will need as much onboarding as new employees, as they will not be actually working within the processes of the company. It is important, however, to ensure they get the same literature as the rest of the company. Handbooks and other documents may reveal issues with the internal policies which ripple into other areas.

You should also be aware that sometimes consultants try to move outside of their assigned field. If someone is there to set up a new HR department, then they attempt to look into hiring and firing processes, you should not be afraid to question it.

They may be acting with the best intentions and may even believe these are part of their role, but you want to focus them on their primary task.

What you should do is define a direction for the consultant, communicate expectations, and have them show they understand. It is not a problem to put limitations on someone if that is all they are there to do. On the other hand, be aware that you may do this when it is not required and you should be aware of your own motivations at all times.

When Might You Need Both Consultants?

Sometimes it is very important to get different outlooks on a particular issue. Some firms, therefore, choose to hire one consultant for advising on strategy. Then they adjusting the business based on the results of that consultation with another consultant.

This may be for a variety of reasons, but one of the most significant ones is that some firms are better at some tasks than others. One might be better at the analysis of a problem in a company, whereas the other might have a better network of people who can assist with a solution.

Be aware that you have formed your company out of disparate demographics. The consultants who work with the executives may have buy-in from your CEO, but that does not mean a shop floor or group of programmers will trust them. The reason the consultant works well with the CEO might be that they think alike, leading to a culture clash with other sections of your company.

Alternatively, the issue may come down to money. A consultant for your business may pitch a different estimate for costs for different kinds of consulting. Make sure to talk to multiple companies about what they can offer and for how much.

Also, be careful of hiring both in at the same time. The last thing you want is different firms vying for your attention at different times. Most will be too professional for such a thing to happen, but it is not outside the realms of possibility if two groups compete.

Which Consultant Will Cost You More?

According to popular comparison websites, consultancy rates can vary depending on several factors.

Unfortunately, most consulting is a well-kept trade secret. This is because companies wish to charge different rates for the same services based on the client. This means there is only limited advice available to work with.

Rates can go from $50 an hour for a business consultant all the way up to $350 per hour for someone working for a leading strategy consultancy firm, or more.

In general, however, most fees are not related to the types of consultancy which are occurring. They are instead more based on the firms which are providing the service.

As expected, the top four firms are those who will be charging you the most. In exchange for that, you can expect a level of professionalism. Many people, however, prefer a small independent outfit for the bespoke service they provide.

Also, you should be aware that a consultant may start to discuss “retainer agreements”. These are a flat fee for a service, rather than for hourly work. If you begin to trust an individual, this may be more beneficial to you as a business to save money.

Business consulting will often be likely to only take up one smaller project, rather than ongoing work. For this reason, a strategy consultant kept on over a longer period of time will likely ask for a retainer. This is up to you if you choose to go for it, but just be aware of how it may affect your annual or monthly budget.

How Might Consultants Affect Employees?

There are potential differences between how those in the workforce perceive different consultants. Most of these relate to who they interact with and produce very different results.

If a consultant is only working with the executive team, as strategy consultants often do, employees may perceive them as aloof. There may also be a lack of trust if they work with an adversarial exec group. This would be part of a larger problem, so you should be aware of it as a possibility.

The perception of business consultants is far less likely to be similar. This is due to them focusing on improving specific business areas. They are far more likely to make enemies if they tread on people’s proverbial toes. If they make sure to work with other employees and prove their worth, however, you should not have issues.

Those in your company may welcome a business consultant, but make sure to remind them that the individual is not a part of the company per se.

Not only will that improve morale once the contract is over and the consultant must leave your services, but there are legal reasons for this also. You do not want to confuse the matter of whether or not the consultant works for you as a full-time employee or not.

The post Strategy Consulting vs Business Consulting: What’s the Difference? first appeared on Kamyar Shah.

Fractional Chief Marketing Officer vs. Chief Marketing Officer

0
0

Fractional Chief Marketing Officer vs. Chief Marketing Officer

Have you ever had the perfect dinner at your favorite restaurant and the waiter brings you the dessert cart?

The temptation is real as you stare at those decadent creations but you know you can’t finish one. All you need is a bite to make you happy.

That one bite is very similar to the feeling you’ll get from hiring a Fractional Chief Marketing Officer. You’ll enjoy the flavor, without the burden of a full portion.

In this post, we’ll discuss what you need to know about a Fractional Chief Marketing Officer vs. a Chief Marketing Officer. Keep reading our in-depth guide below.

What Is a Chief Marketing Officer?

Whether you are starting a business or getting ready to invest heavily in sales or marketing, you could benefit from having a Chief Marketing Officer. If that investment or startup includes starting a major commercial website, an advertising campaign, or an SEO-driven content marketing initiative a Chief Marketing Officer would be an invaluable asset.

Chief Marketing Officers can go by a variety of titles like Marketing Director, Global Marketing Officer, or Chief Commercial Officer. Regardless of the title, the duties remain the same. The CMO is responsible for all things marketing within an organization.

A good Chief Marketing Officer job description will include oversight in marketing communications, brand management, public relations, advertising, market research, distribution channel management, product pricing, product marketing, and customer satisfaction.

As a member of the C-level management team, the Chief Marketing Officer in most cases will report to the Chief Executive Officer. If your business doesn’t include a C-level management team that won’t preclude you from bringing in a CMO. You probably have the structure in place already without the C-level titles attached that a CMO can effectively operate within.

The Challenges Facing a Chief Marketing Officer

The Chief Marketing Officer is much more than a salesperson. They must possess a diverse skill set to help them manage the brand from concept to customer satisfaction. CMOs will coordinate efforts between research and development, operations, manufacturing, and sales.

They will create a marketing strategy for profitable growth that increases brand recognition while mitigating risk and reducing and controlling costs that might easily spiral out of control.

Research and Development

Any research and development efforts will be closely monitored by the Chief Marketing Officer. New products must be forecast into the sales process, both financially and from a marketing perspective.

They must be developed to dovetail into the CMO’s vision for the future. Otherwise, they will create contrasting perspectives to the overall brand.

Online Sales and Website Development

Your Chief Marketing Officer will work closely with your Chief Information Officer to develop a website that captures the CMO’s vision of the company brand.

The CMO will also be involved in any online sales platform you may need or use to ensure that customer satisfaction is achieved throughout the online sales process. This will include capturing critical data from the online sales and marketing process to help improve and grow the brand.

Manufacturing

If manufacturing is part of your business model, your CMO will work closely with your Chief Production Officer or manager responsible for overseeing the production and manufacturing processes.

Their communication is critical to effectively manage the sales process, especially when running promotional campaigns. Your CMO will strike a balance between production and sales that doesn’t overwhelm one while shorting the other.

In-Person Sales Channels

Brick and mortar sales channels present their own challenges for a Chief Marketing Officer. Brand management is critical across multiple retail outlets.

Your CMO will develop advertising campaigns to include signage and other advertising through online, television, or radio channels. Overall store decor and even employee uniforms or dress code fall under their oversight to ensure the brand’s vision is realized.

Distribution

They will also coordinate the distribution effort between manufacturing and operations to ensure timely delivery of your product. While your Chief Marketing Officer doesn’t get involved in shipping arrangements directly, they will need to forecast effectively the needs to support both the regular and promotional sales efforts.

Navigating the Marketplace

Good Chief Marketing Officers are able to react quickly to changes in the marketplace, whether they be environmental in nature, new competition, or the creation of new vertical markets. Often they will predict what will happen before it does, which could give you an edge over your competition.

Their ability to reshape your company’s strategy and execution plans in a fast-paced environment can be the deciding factor to successfully navigating market fluctuations.

Analytical Ability

Chief Marketing Officers will constantly analyze sales and marketing data looking for trends both positive and negative. They will take critical customer demographics, product sales, and sales channel effectiveness to help plan for the future.

The results will then be communicated back to the CEO for review and together they will plot the future efforts of your company, sometimes a year or more in advance. At this point, the cycle starts over again with R&D, manufacturing, operations, distribution, and sales planning.

This takes a deft hand to unite these departments which can often seem at odds with one another. Your CMO will need to be an expert communicator and motivator, and in many ways a politician because they must bring together these teams to pull in the same direction.

What Is a Fractional Chief Marketing Officer?

A Fractional Chief Marketing Officer is essentially what the name says it is. They have the ability to meet all of the above challenges, yet they will only perform a fraction of them. Basically, they are brought on in a part-time or temporary capacity, but that will depend on you and what your business needs and can support.

This fraction might come in the form of time. You can hire a Fractional Chief Marketing Officer to work 10, 15, or 20 hours per week during which time they will work the entire marketing plan from R&D to customer satisfaction. They will then spend the other fractions of their time with other companies.

Most Fractional Chief Marketing Officer arrangements are set at a six-month minimum, regardless of the model. This is essential because most efforts take time to come to fruition.

What Will a Fractional Chief Operating Officer Do?

When you first begin discussions with a candidate, you should have an idea of what you want them to do for you. Once hired they will focus on these predetermined tasks, but they will also offer their expert opinions on a variety of subjects within your organization.

They will assess your operation and make recommendations as to what else they could or should be doing. This doesn’t mean you can’t pick and choose which recommendations to move ahead with. It simply gives you an idea of what they believe will be helpful.

Remember also that they are marketing their services and any good marketer will make a compelling argument. They should always present these recommendations with a return on investment.

Implement Entry Into a New Vertical Market

You might hire a Fractional Chief Marketing Officer to oversee specific challenges, like planning entry into a new vertical market. This FCMO will work with your management group to assess the individual departmental challenges your company will face.

These challenges will include internal production and sales issues, as well as specific issues you will face unique to the new vertical market. They will then create a plan that unites the team and drives the company forward to successful implementation. Upon completion, the FCMO will move on to other clients.

Rebranding Your Company

If you are planning to rebrand your company then hiring a Fractional Chief Marketing Officer can help. They will work closely with the CEO or company strategist to capture a new vision and create a new brand.

This effort will tie together all aspects of your marketing and sales to fit within the brand concept. Your FCMO will work with research and development to ensure they work with future products to fit the brand. They will also forecast and create advertising campaigns to present the new brand concept to your customers.

Aggressive Sales Campaigns

You might feel like you are missing out on reaching the entire market for your product and you wouldn’t be the first company to realize this. Aggressive sales campaigns can be scary because, by their very name, aggression can be risky.

An FCMO will review your intended results and create a measured approach designed to help minimize your risk while staying aggressive. This might include a unique multi-media advertising approach or bundling products and services.

Regardless of the campaign, they have the experience and knowledge to implement it effectively and keep the risks and costs manageable.

Company Expansion

Many businesses have a great product, a great manufacturing program, and a great sales team, yet need a little help taking the company to the next level. Maybe you’re considering taking your product from a regional market space to national market space, or maybe national to global.

A Fractional Chief Marketing Officer can help you make this jump in a deliberate way. They will assess the new market’s growth potential, forecast the cost to expand from a distribution standpoint, and provide feedback to the manufacturing department to help them forecast for the new demand. They will also develop a sales and marketing plan to address the new market space.

Unify Your Sales Team

Sometimes a company’s growth occurs organically and they find themselves operating at levels they hadn’t originally planned on. You might end up with a national sales force that might be producing just fine, but with distinctly different processes.

This can result in uneven production and fulfillment issues which ultimately cost you money and customer satisfaction, limiting your future growth potential.

A Fractional Chief Marketing Officer can help implement a national strategy that keeps everyone marching to the proverbial beat of the same drum. An FCMO will create national proposals that reinforce the company’s brand and product. They can also implement new software to assist in both the prospecting process and the closing of new sales to streamlining your distribution efforts.

New Product Lines

If your company has developed a new line of product or products you could benefit from hiring a Fractional Chief Marketing Officer. This is especially important if your new product is outside your original scope of products offered, and even more so if your new product has the potential to revolutionize the way people do things.

Your FCMO will need to work closely with all areas of your company to ensure consistency with your brand and your new product. Marketing and sales presentations must be developed to highlight your new capability.

Advertising must be deliberate and targeted to reach your customer base and make them aware of your new product. Your manufacturing team must be ready to handle the forecasted increase in sales and your distribution and fulfillment channels have to be prepared as well.

Benefits of Hiring a Fractional Chief Marketing Officer vs. a Chief Marketing Officer

As the Owner, President, or Chief Operating Officer of a company, your time is always precious. You are responsible for all aspects of your company’s success.

If you’ve created a solid organization with capable managers at every level, then perhaps you can manage to perform the duties of a CMO while delegating other duties.

However, the question always comes down to competence, and marketing is a unique animal in the business jungle. If you don’t have the experience to handle the myriad of duties, you are better off hiring either a Fractional Chief Marketing Officer or a full-time Chief Marketing Officer.

1. Not Ready for a Full-Time Marketing Professional

One reason you should consider hiring a Fractional Chief Marketing Officer vs. a Chief Marketing Officer might be because you are a small to medium-sized business and simply don’t have the budget to support a full-time CMO. In fact, this is the most common reason to bring one in.

An FCMO affords you access to C-level leadership without the cost of hiring a full-time CMO. In most cases, this ultimately ends up with you hiring a CMO full-time because the initial effort has grown your business enough to support one.

2. You Lack a Consistent Marketing Message

Your business may be functioning okay but there is no consistent message being presented to customers. This could be a lack of marketing material. That leads to individual sales representatives producing their own flyers, proposals, and more.

Chief Marketing Officers and Fractional Chief Marketing Officers can create a consistent brand message. They do so through marketing materials, proposals, and presentations. They can also create training programs to help the sales team speak with one voice.

If this is only one of a few skills you are looking to find, an FCMO can handle it at a lower cost than a full-time CMO.

3. You Need an Effective Sales Technique

For decades, salespeople have been negatively stereotyped as particular types of people. They’ve been called everything from sharks to snake oil salespeople. There’s no question that some industries have earned their reputations.

Car salespeople have had a notorious reputation for the longest time. Car salespeople have a stigma that many dealerships are looking to remove. It’s because they realize the negative connotation doesn’t sit well with consumers anymore. It comes down to trust. No one likes walking away from a purchase feeling they didn’t get a fair deal.

Companies today realize this and are careful to craft a sales approach that doesn’t offend consumers. If your company doesn’t have a sales process that consumers can trust, a Fractional Chief Marketing Officer can craft one for you.

This is true whether you need a consultative approach, a formula-driven bidding process, one based on addressing needs, or some other method that your industry embraces. An FCMO can create one that works for you and your customers just as well as a CMO, but for a lower cost.

4. You Don’t Have Marketing Savvy

Marketing savvy in this case speaks to having the proper knowledge to make good marketing decisions. Too often companies will create a website because someone said they needed one.

Or they might jump on the pay-per-click bandwagon because that’s what SEO experts tell you is another hot way to market your business. Sometimes they invest in branded giveaways like shirts or coffee mugs to give away at conventions or sponsored events.

A Fractional Chief Marketing Officer and a Chief Marketing Officer possess the skills and knowledge to identify where your marketing dollars can be best spent. They do this by evaluating specific metrics within your industry and your company in particular.

They then develop a strategy to spend your marketing dollars wisely, getting you a positive return on your investment. Everything your FCMO does will be to drive revenue and growth. Most importantly, they will not succumb to frivolous spending for the sake of spending.

Chief Marketing Officers and Fractional Chief Marketing Officers both must get results to justify their salaries. However, a CMO is held to a slightly different standard for delivering results than an FCMO. A CMO is a permanent, full-time employee with a high salary, excellent benefits, a robust commission structure, and even profit-sharing in some cases.

These are all great perks for your CMO when they succeed. But what happens when their intended results fall short? They are far more likely to try riskier endeavors to keep themselves employed.

An FCMO has a contract with a term that expires, with or without results. They are far more likely to ride out their plan and show a marginal gain, rather than spend more of your money on riskier projects. Spending frivolously doesn’t have any upside for them.

A savvy FCMO knows that even marginal gains can create a return on investment and they can build off that for future contracts. These will come as part of a proposal to extend their services, complete with detailed ROIs on any new initiatives.

5. You’re Late to the Marketing Party

What if your company is well-established in the industry and has been operating for years or even decades, but you’ve never had a marketing manager? You likely will benefit from hiring one.

Times change, now more so than ever. Technology, social media, and global markets can catch companies like this unprepared. Have you suddenly seen your sales or market share dropping and can’t understand why?

Hiring a Fractional Chief Marketing Officer vs a Chief Marketing Officer can address this concern effectively without the full-time investment. They will develop a strategy to bring your marketing program into the modern business environment.

They can take advantage of technology and other mediums like social media to build brand awareness and make you more competitive.

6. You’re In-Between Chief Marketing Officers

You might be a well-established company that has employed a full-time CMO for years but the position has recently become vacant. Hiring a Fractional Chief Marketing Officer vs. a Chief Marketing Officer in a rush is a bad idea.

It can be detrimental to the long-term success of the position and your company to hire too quickly. An FCMO can help bridge the gap while you take the necessary time to search for a permanent replacement.

7. Audit Your Existing Marketing Program

If you’ve been working with the same marketing program for years, you could benefit from hiring a Fractional Chief Marketing Officer vs. a Chief Marketing Officer. Having them conduct an audit of your program is smart. You might have a marketing manager already and simply want to give them support, or you might be considering adding one.

Regardless, they will come in with a non-biased perspective and assess what you are doing. This can be very helpful to companies whose growth remains static within their industry.

An FCMO will review all aspects of your marketing and make a list of recommendations. In many cases, they will help you implement new strategies as part of an ongoing consulting agreement. You won’t find a CMO for a temporary assignment like this.

How Do I Find a Fractional Chief Marketing Officer?

Fractional Chief Marketing Officers are usually highly qualified, experienced marketing executives. They aren’t consultants, per se, yet they can be brought on in a consultative manner. Typically though they are contracted for a minimum of six months up to two years, sometimes with extensions built into the contract.

Marketing is a fast-paced, ever-changing field and might be the single most important element to a successful business. You could have the best product on the market, but if you aren’t marketing it properly you may never succeed. Good marketing can take a good business and make it into a great business, so don’t undervalue it.

Finding the right Fractional Chief Marketing Officer is critical to the continued growth of your business. A strong leader in the marketing department is challenging, especially in a small to medium-sized business. There are some important steps to take when searching for a Fractional Chief Marketing Officer to ensure you make the right decision.

1. Conduct Your Own Internal Assessment

You should begin with an assessment of your marketing operation. This can be done by the CEO or another operational manager, or you can bring in a business consultant. Either way, you need someone to review your processes with a critical and unbiased eye.

You’ll be looking at a number of key measurables first. How much are you spending on marketing? Where are you spending that money? What, if any, is your return on investment?

Marketing is a costly endeavor and the money can disappear quickly. Knowing how, where, and why are important measurables that will help you plan for the future.

Once you get through the financial part you need to look at what kind of demographic information you’ve collected on your customer base. Who is buying your product? Who isn’t? Are they male or female? How old are they?

These are important insights you should be collecting. If you haven’t been collecting them by now then you most certainly need to create a system moving forward. This information can help you spend wisely.

After a demographic review, you want to drill down a little more. You should be looking at advertising campaigns you’ve run in the past. You want to look at the materials and methods you used during these campaigns.

You’ll also want to look at the company or companies you worked with to create these marketing materials. It doesn’t matter whether they be print, radio, television, social media, or something else.

Also very important is a review of your company’s operating philosophy and culture. Be sure you can easily describe these things.

A casual workplace with break rooms that feature video games, massaging recliners, and a well-stocked and free snack bar is much different than a business-professional environment that is fast-paced and bottom-line focused. These will be important considerations during your search because you’ll want to find an FCMO who blends well with your culture.

2. Set Goals for the Future of Your Marketing Program

Once you’ve completed your internal assessment, you should have a clear picture of what, if anything, is working. You’re probably starting to get an idea of where you’d like to improve too. Now it’s time to set some goals.

Your goals should run the gamut from easily achieved to wildly optimistic. Don’t sell anything short because good marketing can make almost anything a reality. Assembling a variety of short-term, medium-term, and long-term goals is the best approach.

A good short-term goal might be to revamp your company’s proposal package or create some new, modern advertising flyers. You might also consider creating several advertising campaigns targeting specific demographics you know to be consumers.

Mid-term goals might include an expansion into a new vertical market you know has a need you can fill, but you haven’t yet attempted to reach. This could also be true from a regional expansion perspective. Entering new, untapped markets outside your area of influence can prove profitable.

Long-term goals might include a rebranding of your company or product line. As previously stated, times change. Your product may still be useful, but if you are targeting a stale market you won’t realize your full potential.

Regardless of your goals, keep in mind they aren’t something you can necessarily complete on your own. That’s the point of hiring a Fractional Chief Marketing Officer.

3. Search for Qualities That Will Help

At this point you should have a clear understanding of what you’ve done right, what went wrong, and perhaps even why. You also have an eye toward the future of your company and its marketing program. Now it’s time to start looking.

All your candidates will have the qualities you would want in a Chief Marketing Officer. That’s why they do what they do on a fractional basis. However, you should look for those with experience in what is important to you.

Start with your industry. Anyone with experience in your industry will shorten their learning curve. This is important when it comes to understanding how to market your company.

If one of your goals is to expand into a new vertical market you’ll want to find candidates with this experience. They will have met similar challenges and be better equipped for such an endeavor.

Perhaps one of your goals is to revamp your sales process from the ground up. Maybe you wish to install new techniques, equipment, and technology. Someone with a record of success with this type of work will be more beneficial than a candidate without this experience.

Maybe you want to get into rebranding your company. Someone with a track record in creating brand identity and awareness will work better than someone without it.

One important quality you should be looking for is will their personality fits with your company’s culture. As previously stated, the casual work environment is different than the suit and tie business world. Your Fractional Chief Marketing Officer will need to fit in with whatever your culture might be.

4. Have Them Submit a Statement of Work

This doesn’t have to be a long, drawn-out proposal. A good Fractional Chief Marketing Officer will submit an overview of their qualifications. They should relate to what your stated needs are. The more specific you are upfront, the easier it will be for them to give you a comprehensive Statement of Work.

As part of their Statement of Work, they should include measurable actionable items. These should also include some rough pricing information at the least. They should know what these things will cost you. Your return on this investment should also be explained.

Some of these actionable items are easier to quote than others. A good FCMO will be very detailed when presenting a proposal to you. They should also come with timeframes for completion.

5. Negotiate a Contract

You’ve found the right marketing professional, congratulations. Now it’s time to sign a contract.

Everyone has a different idea of how much they are worth. As a rule, you should check the current salaries for Chief Marketing Officers in your industry. Salaries can vary by region as well, so be conscious of this fact. If your company is in New York City, you can expect a higher salary than say for Boise, Idaho.

If you are contracting for a certain number of hours per week, you should take the annual salary and divide it by the number of weeks. From there you then divide it again by the number of hours you’ll need them. This is a fair number for most people and a good place to start, but, they will be submitting their price to you.

You always have the option to turn them down. Negotiating a different price isn’t considered bad form either, but not everyone will. If they are an experienced and desirable Chief Marketing Officer, they might be able to pick and choose their clients. This will seriously limit your ability to negotiate.

That said, if they have the requisite skillset you need, then you should feel good about hiring them. If they fit with your culture, and their Statement of Work is one that offers a good return on investment, you should feel good about signing a contract.

An integral part of the contract negotiation should center around time. Not only the hours per week you will need them but the length of time of your contract. Some will be willing to go with monthly contracts, but most are looking for at least a six-month agreement.

They will need time to implement their plans and changing a marketing program isn’t like turning your car around. It’s more like changing the direction of a cruise liner in a tight port. It must be done carefully and without rushing.

Another element of time to consider is what will happen at the end of the contract term. Will your Fractional Chief Marketing Officer be available to stay on? Will an extension be month to month or a simple six-month renewal? Will there be an option to hire them permanently?

Be prepared for the worst here, because there’s a real possibility they will want to move on. They are highly skilled individuals with a unique mindset to create solutions. Once things are running smoothly they may have a natural desire to find their next challenge. They may want to stay on, too, but it’s always better to plan for the worst and hope for the best.

And the best thing you can do is to put a consulting clause in the original contract that gives you an easy way to invite them back for special projects. At least this way you have someone who helped design, build, and implement your marketing program only a phone call away.

What if I Already Have a Marketing Agency?

There’s nothing wrong with having a relationship with a marketing agency while looking to hire a Fractional Chief Marketing Officer. In some cases, having a relationship might be beneficial. Your FCMO will likely need some marketing material to be produced, and maybe in several different mediums, so the agency you have could be the answer.

Many marketing agencies need a contract that can prove burdensome, especially if you consider taking on an FCMO at the same time. Often the contracts come with a retainer fee built-in and billed monthly, quarterly, or semi-annually. This retainer fee works like a draw on services provided.

If you have a $10,000 retainer fee you essentially must spend that money on marketing services with them. They will provide you with suggestions on how to spend it and will develop the material which you will have final control over.

Yet you won’t get the level of expertise you would from a Fractional Chief Marketing Officer. A marketing agency will have subject area experts, but probably no single person at the agency will possess the C-level skillset of an FCMO.

You’ll have a cancellation clause with your marketing agency so you won’t want to cancel. If you are considering hiring an FCMO then you are probably not satisfied with your marketing agency on some level.

A good idea would be to plan on hiring a Fractional Chief Marketing Officer shortly before your marketing agency agreement ends. You’ll give your new FCMO a chance to review their prior work, evaluate the services they offer, and decide which they would like to keep.

If your new FCMO is interested in keeping them on in some capacity, he can handle negotiating a new contract.

Is It Time to Hire a Fractional Chief Marketing Officer?

This answer is dependent on your particular circumstances. As previously detailed, an FCMO brings a unique skill set focused entirely on marketing. If you are a small company just starting out, hiring a Fractional Chief Marketing Officer vs. a Chief Marketing Officer is the right choice. Hiring a full-time CMO is likely too expensive.

If you already have a steady revenue stream and are ready to invest in the future, an FCMO is an investment in that future with tremendous upside.

The post Fractional Chief Marketing Officer vs. Chief Marketing Officer first appeared on Kamyar Shah.

Fractional Chief Operating Officer vs. Chief Operating Officer

0
0

 

Fractional Chief Operating Officer vs. Chief Operating OfficerWhen a company begins to scale up, it may find itself faced with problems it just doesn’t know how to solve. When this happens, it may be time to consider bringing in a Chief Operating Officer (COO). However, that may not be the right fit for every kind of company.

The goal of this article is to analyze the differences in the roles of the Fractional Chief Operating Officer vs. Chief Operating Officer. It is important to determine which one is right for each growing business.

Understanding what a Fractional Chief Operating Officer is, and the ways the role differs from a traditional Chief Operating Officer can be pivotal to setting a growing company up for long-term success.

What is a COO?

Before making any decisions, it’s important to understand the complicated role of a Chief Operating Officer. According to Accenture, the COO is “perhaps one of the least understood roles in business today.”

Yet, having a COO can be vital. Especially in times of rapid growth and transformation, when the risk for business execution is highest, a COO can make all the difference.

Keith Rabois, former COO of Square, describes the COO like a doctor in an emergency room. This means they will be the ones fixing and diagnosing problems to see if they are minor or serious. If a company faces an uncertain future, a COO could be the critical component to completely transform business operations and ensure long-term success.

When a company is ready to scale up, a COO can serve as the leader of the necessary change efforts a company needs to make. They define needed changes, lead the charge, and manage the change efforts. Perhaps most importantly, COOs celebrate each change’s success.

Often, the COO will serve as the glue holding a company together. They are a vital part of rounding out the leadership team.

What Makes for a Good COO? 

Well, there are many different types of COOs. In fact, the COO position is one of the most varied positions in the world of business. It’s rare for any two COOs to come from the same background, have the same experience or operate in the same way.

Commonly, COOs should at the very least have deep knowledge of marketing, sales, and operations. It is their job to integrate all aspects of a company’s revenue cycle, ensuring that a CEO’s vision leads to actual profit.

In fact, a COO is generally regarded as the CEO’s second-in-command. They need to be able to have strategic competency. This means they can analyze and lead the implementation of necessary strategies to help businesses turn a profit.

Bringing in someone with a fresh perspective, but deep respect for the CEO’s vision is key.

Common Traits of Effective Chief Operating Officers

The Ability to Think Both Large and Small

A COO must have the ability to keep their company’s high-level strategy front and center while making detailed decisions about day-to-day operations.

A People’s Person

Someone who values and appreciates talent. At the end of the day, a COO should have the ability to recognize how to find the right people for each job.

No Ego

If a COO spends their time trying to usurp the CEO, the partnership probably won’t work out. They need to be trustworthy and respectful.

Data-Driven

Being able to study the minutia of daily-data can ensure that high-level vision translates to profitable operations.

Ultimately, the role of a Chief Operating Officer is to bring a company together. It is their job to ensure a more efficient, and therefore more effective, workflow.

On occasion, a Chief Operating Officer may even be someone with more experience than a CEO. This can be vital, as a deep understanding of business operations on all fronts is a necessity. Also, they should be someone who can think about a high-level, while still maintaining a deep focus on day-to-day operations.

What Makes a Chief Operating Officer Different from Other Roles?

The role of the Chief Operating Officer can be difficult to define. It is a role that is unique structurally, socially, strategically, and politically. It is also a role that is extraordinarily situational.

In fact, when examining COOs as a class, the Harvard Business Review found that there were almost no constants. Salespeople and marketers have been successful in the role, as have Financial and Human Resources executives.

Despite their many different ways of operating, they found that anyone from any background could succeed in the role, as long as they meet the needs of the company, and more importantly, the needs of the CEO.

The Many Types of COOs

As previously mentioned, there are many different types of COOs. It is not a one-size-fits-all type of role. Many times, the function of a COO is dependent on the specific needs of a company.

The main purpose of a Chief Operating Officer is to fill in the gaps of expertise that a CEO may be lacking. Because of this, the COO position is unique in that it is less related to the actual nature of the work, and more related to the needs of the CEO as an individual. However, in some cases, a COO’s position may be more related to the specific needs of the business itself.

The main thing that sets a Chief Operating Officer apart is the high level of trust established between them and the CEO. This should be a close working relationship, with extreme respect between both parties.

Traits that set a Chief Operating Officer Apart

Selflessness

A COO may be responsible for a bulk of a company’s operations, however, they usually receive little of the credit. The CEO will always have a larger spotlight.

A COO’s work is almost always done behind the scenes. Therefore, a good COO must be someone who recognizes the importance of their work without needing public attention.

Communication

COOs must be excellent communicators. They must be able to communicate effectively with executives and the teams and departments they oversee. A large part of their role is the ability to mediate conflict and negotiate among stakeholders.

Besides, they will have to act as a spokesperson for both the staff and C-suite executives of a company. Generally, they control the flow of communication, so attentiveness to messaging and communications is vital.

Ability to Think Strategically

The COO is there to transform the CEO’s abstract vision into a profitable reality. They have to be able to achieve measurable results. Aligning company goals with day-to-day operations is pivotal. They have to be sure they can think both at a high-level and in the daily minutia of operations.

Delegation

Delegating tasks is a key function of the COO role. It is imperative COOs know which tasks should go to which departments and teams. This requires a unique understanding of each departments’ skills and strengths to ensure that everyone on every team is working at their most effective level.

It is important for the COO to understand the overall vision of the company. This is because they are also in charge of ensuring every team is working toward the same goals.

It Takes All Four

A good COO will have all four of these major traits. That’s a unique ask from one single employee, but that high level of skill is what sets Chief Operating Officer apart from everyone else. COO is a demanding position that requires a highly skilled employee.

At the end of the day, the COO is there to make the CEO’s long-term vision a reality. This means that a COO must have ultimate trust in the CEO’s vision. On the other hand, the CEO must have ultimate trust in the COO’s ability to implement that vision.

What Are the Different Types of Chief Operating Officers?

As previously stated, the role of COO is a varied one. They come from many backgrounds, with all manner of unique experiences and leadership styles.

However, according to Harvard Business Review, COOs can typically be put into one of seven categories. These include:

The Executor

When most people hear the term COO, this is usually what comes to mind. Executor-style COOs are focused entirely on day-to-day operations.

This leaves the CEO free to focus on the larger vision, public relations, and high-level decisions. This type of COO minimizes the CEO’s need to keep close tabs on the minute details and inner workings of the company.

The Change Agent

This type of COO is usually brought in to help a stagnant company get moving again. When growth vision stalls or market performance is weak, these COOs can come in to reinvigorate public interest in the company.

Usually, they have a unique set of skills and experiences. Sometimes, they even come from a different industry with fresh ideas to shake things up.

The Mentor

Sometimes, the CEO may be new to the business world. They might have become CEO thanks to a novel idea or invention, but lack the business acumen to lean on.

If the CEO is inexperienced in business, the mentor-type COO can help guide them through difficult business decisions. Usually, this type of COO is a highly seasoned professional.

The Other Half

Here, the COO and CEO complete each other. They almost function like the left and right sides of the brain.

This type of COO stays grounded and logic-oriented. This allows the CEO to think more abstractly and unpredictably. This COO will ensure their workforce receives consistent instruction, information, and communication.

The Heir Apparent

This COO is often being prepared to follow in the CEO’s footsteps. If a CEO is planning on retiring or stepping down, having their next-in-line serve as COO can be a great shadowing opportunity.

This COO is mainly there to learn the ropes of managing a company. This is a great way to streamline CEO transition.

The MVP

This is when a former staff member rises to the rank of COO. Typically this happens when a team member displays a high level of value to the company.

Promoting them to COO can be a good way to keep them at the company, providing them with higher status and compensation. This will make a great employee much less likely to leave the company to chase competing offers.

The Partner

This COO helps to round out a leadership team. For some CEOs, having a team can make them more efficient. This provides CEOs with the ability to bounce ideas off of another person, while also drawing useful knowledge and skills from an experienced individual.

Though the CEO will slightly outrank the COO, they are more close in standing when in this kind of relationship. Similar to The Other Half, they operate almost as one entity in terms of managing the company.

Striking the Balance

Each of these types can bring something unique to a fledgling company. Based on the needs of the CEO or the company itself, finding the right type can supplement a company’s strategy.

Additionally, these seven roles are not mutually exclusive. Though it is unlikely that one person could serve in all seven roles, it is not far-fetched to imagine a single COO wearing one or two of these different hats. However, the distinction between them makes it clear why outlining the role of COO is such a difficult task.

At the end of the day, however, the most important factor in finding a COO is for the CEO to find someone they can trust completely. They must be able to fill the role most needed by the CEO. According to Wendell Weeks, who went from COO to CEO at Corning, the CEO-COO paring needs to be a “true partnership, in every sense of the word.”

As a CEO, finding the right type of COO can turn a good business into a great one.

When Is the Right Time to Get a Chief Operating Officer?

Most companies do not start out with a Chief Operating Officer. For the early stages of business development, they aren’t really a necessity. However, as a company begins to grow, so does the need for efficient operations.

Many companies wait until it’s too late to hire a COO. Sometimes this is because of budgetary restraints or the idea that COO is an unnecessary position. It’s important to have an understanding of where a company is at and where it’s going to understand their need for a COO.

Basically, a company should begin thinking about bringing on a COO right before things go bad. If a CEO realized their company is beginning to scale up, odds are they’ll soon be overwhelmed by the workload. Hence, the use of a COO will be necessary.

Another reason to bring in a Chief Operating Officer is if there is a specific business need or area of expertise the CEO lacks. COOs can be pivotal in filling in those necessary gaps, which in turn will ensure long-term success.

Signs a Business May Need a Chief Operating Officer Very Soon

CEO Stretched Too Thin

A CEO is spending too much time working in the business instead of on the business. They do not have the capacity to shift their focus to long-term goals and vision.

Daily Struggle

Many in the company, but especially the CEO, are feeling overwhelmed. There is a daily struggle to ensure appropriate operational efficiency.

Time to Scale Up

A business is maintaining a steady profit. There is a specific need to begin scaling up. Without the ability to scale up, the company’s growth will stagnate and stall.

Leadership Gaps

A company needs a stronger leadership team. Without it, everything may begin to unravel.

Questions a CEO Should Ask

There are important questions you should ask to determine if it’s time for a COO.

  • What is your company’s current bandwidth? How much revenue can you currently generate?
  • Will you be able to successfully reach your yearly revenue goal?
  • What is your maximum capacity limit for operations? When will you reach this capacity?
  • How much capital do you have available? How much capital will it take to reach your revenue goal? When will you need a capital infusion?
  • Are your prices set correctly? Or, are you undervaluing your product or service?
  • How many more sales are necessary to reach your yearly revenue goal?
  • Are your current marketing efforts supporting your sales team in reaching that revenue goal? Do these efforts generate enough leads?

If a CEO can confidently answer these questions, a Chief Operating Officer may not be necessary. However, if they struggle to come up with the right answers, or see far enough ahead into the future, it’s probably time to start looking for a COO.

What if I Can’t Yet Hire a Full-Time Chief Operating Officer?

Many growing businesses may find it difficult to bring on a full-time executive. The costs can be astronomical, and they might not even know what exactly they want or need from the position.

For these companies, it might be counter-intuitive to bring in a full-time COO right off the bat. There are many things that go into bringing on a new executive, such as building a new executive office, creating a unique hiring process, and putting together an expensive perks and benefits package. Doing all of this could put a company even farther into the red, which isn’t great when trying to scale up.

Luckily, there is another option. If a fledgling business is not yet ready to bring on a COO, a Fractional Chief Operating Officer may be the answer. Fractional COOs can ensure more effective business operations for a growing business, while still maintaining budget-appropriate costs.

What Is a Fractional COO? 

Simply put, a Fractional Chief Operating Officer is a highly-experienced consultant who operates as a part-time COO. This allows a business to retain the insight of a COO without having to bear the full-time costs.

This is perfect for small businesses and start-ups who need the support of an operations expert, but cannot yet afford a full-time executive. The main purpose of a Fractional COO is to provide leadership support and cost flexibility for those up-and-coming businesses trying to scale up in a competitive market.

Hiring a Fractional COO can mean the difference between successful business scaling and harmful stagnation for any company on the upswing.

What Exactly Does a Fractional COO do? 

Often times, Fractional COOs may be more useful to a small business than a full-time executive. They provide businesses with the flexibility they need while remaining laser-focused on the company’s needs.

To begin, a Fractional COO will get to know a company’s business model. Once they’re well versed in that, they will begin to work within that framework to bring a business the leadership and accountability in any area of the CEO’s choice.

A CEO may use a Fractional COO to:

  • Head up senior operations in areas the CEO isn’t able to
  • Analyze business data, including KPIs, analytics, etc, and produce detailed business reports
  • Provide unbiased and insightful strategic input in areas where the CEO’s expertise may be lacking
  • Oversee staffing procedures, including interviews, recruitment events, and outlining necessary hiring requirements for each position
  • Delegate tasks to the appropriate teams or team members
  • Lead sales and marketing departments while offering key innovations
  • Innovate better ways to produce products or services, including more efficient technology
  • Strategize the company’s business growth goals by using more detailed or innovative success metrics
  • Serve as second-in-command or interim CEO when necessary

Often times, a Fractional COO is brought into a company to completely overhaul operations. By introducing new strategies and processes, Fractional COOs can be the key component in bringing businesses to the next level. This creates a smooth scaling-up process.

Different Types of Fractional COOs

A Part-Time or Temporary Contractor

This type of Fractional COO will be with your company for a set amount of time, serving until a company no longer has a need for them, or is ready to hire a full-time COO.

On a Project-Based Level

These Fractional COOs may assist a company with one or more projects. Then, when those projects are over, so is their involvement with the company. This type is useful if there is a very specific business need.

An Advisor Without Team Involvement

This type is often brought in to assist the CEO. They serve as a consultant to the CEO, providing advice without necessarily taking over any operations.

Choosing the right type of Fractional COO is entirely dependent on a company’s immediate needs, as well as any budgetary constraints. But, one of the key benefits of hiring a Fractional COO is the flexibility to choose what is actually needed.

What Are the Benefits of Hiring a Fractional COO?

The most obvious benefit is the cost. Hiring a Fractional Chief Operating Officer allows a company to customize the level of involvement the Fractional COO has with a business. Therefore, this allows a company to customize the necessary compensation package for the Fractional COO based on the company’s budget.

In addition, a Fractional COO is oftentimes more laser-focused on a specific area. This means when a company has a very specific need, a Fractional COO could provide the necessary expertise to fill in any gaps. For example, if a company struggles with innovating in the realm of marketing, they can bring in a Fractional COO who specializes in marketing processes.

Fractional COOs can also supplement the current CEO’s knowledge. They may be able to pick up in areas where a CEO’s genius might be lacking. So, while a CEO might be more attuned to focusing on high-level vision, a Fractional COO can come in to clean up day-to-day operations.

Another use of a Fractional COO in a growing company is to help build or advance talent and teams. They can help oversee the hiring process and ensure a business is recruiting the right people for the job. With their guidance, a company can build teams that help them reach new levels of dominance in their sector.

Fractional Chief Operating Officer vs. Chief Operating Officer: Which is Right for My Company?

Fractional COOs and traditional COOs can have many similarities. But, for some businesses, one may be better than the other based on their specific needs and areas of interest. Here are some specific benefits of hiring a fractional chief operating officer vs. chief operating officer.

Remote Workers

Fractional COOs usually work remotely. Even when they do not, they usually do not require a separate executive office, whereas a full-time COO would.

Easy on HR

There is no elaborate hiring process when selecting a Fractional COO. Usually, Fractional COOs are already experienced leaders who have worked at an executive level. Often, they will come with proven track records for success.

A traditional COO might require a completely unique hiring process, which could put a strain on an already small Human Resources department.

Inexpensive

You do not have to provide a Fractional COO with extensive benefits, bonuses, or perks, as they are hired as contractors. This could save your business thousands.

Trial Runs

Hiring a Fractional COO lets you “test run” the COO position. This can help your business decide what you actually want and need from a Chief Operating Officer, without any major commitment.

Easier to Let Go

It is much easier to let a Fractional COO go if things don’t work out. Releasing a full-time COO from a contract might be much more difficult. They can often get tied up in legal stipulations and expensive payout packages that complicate matters.

Since fractional COOs are contractors, letting them go is usually a relatively easy process.

Rounding Out Teams

Fractional COOs are there to help you build. This means, they can find the right talent for you, and in some cases, even help you find their full-time replacement.

Proven Expertise

Fractional COOs usually have years of proven results. This could mean bringing on someone with much more experience than someone new to the Chief Operating Officer position.

Flexibility

Perhaps most importantly, Fractional COOs are flexible. For a growing business, this means they can roll with the often unpredictable punches that come with scaling up a business. Fractional COOs can usually work as much or as little as you need, or as your budget allows.

Size Matters

All of this being said, there are some cases in which hiring a full-time Chief Operating Officer might be the better option. For larger businesses, or those growing at a truly exponential rate, hiring a COO could see greater stability in the long-run. It could also help build a stronger long-term relationship between COO and CEO.

However, for most small to mid-level businesses or start-ups, the Fractional COO might be the best choice. Fractional COOs can help mitigate costs. At the same time,  they can help a company to build both day-to-day and more long-term business operations strategies.

In addition, businesses with very specific operations needs or questions would also likely benefit more from the help of a Fractional Chief Operating Officer. Fractional COOs are more likely to come in with specific experience in one area. This can be especially helpful to businesses that need laser-focus in, particularly weak spots.

Common Mistakes in Hiring COOs

Once you’ve decided whether a Fractional COO or COO is right for you, it’s important to make sure you find the right person for the job. When doing so, it’s also important that you stay away from these common mistakes when hiring COOs.

Seeking out a Director or Vice President of Operations

Sometimes, companies will hire below a C-suite executive level in order to cut costs.

These people are then expected to operate at the level of an executive but without the benefits or necessary experience. Because of this, they often fall short of what is actually needed by the business.

Lowballing the Chief Operating Officer’s salary

Again, this is done to cut costs.

Here, we once again have a business that is forced to hire someone at a Director or Vice President level. People without the necessary experience typically cannot function at the executive level.

Not Distinguishing the COO Hiring Process

Occasionally, companies treat the hiring process for Chief Operating Officer as if it were any other position.

COOs have very unique, highly specialized functions. This requires specialized hiring processes and unique labor structures. Without that, the COO is often doomed to fail.

Why do companies make these mistakes in the first place?

Well, there is usually one of two reasons:

  • They cannot afford the talent they actually need
  • They don’t understand the inherent differences of the Chief Operating Officer position vs. the other positions in the company

COO can be a complicated position. A fledgling company or new CEO may not have an understanding of how to make the role most effective.

This Is where a Fractional COO comes in

Before making these common hiring mistakes, a company might consider hiring a Fractional COO to see what they actually need from the position. This can also ease the financial burden of hiring an executive until the company is actually able to scale up in terms of profit.

Even so, there are still some important considerations to make when choosing any COO, Fractional, or otherwise.

The most important thing when choosing a Fractional COO or full-time COO is finding someone the CEO can really trust. The CEO and COO should have a natural rapport and the potential to develop a good relationship.

There Must be Trust

Remember, the CEO and COO will be working very closely together toward a common goal. It is important any potential COO understands what a company wants and needs at the current phase of its development.

This also means that any Fractional COO or COO that is hired should trust that the CEO has the best vision for their company. They must respect the work that has already been put in to get the business to its current level. However, they should also challenge the CEO to expand their thinking.

When bringing on a COO or Fractional COO, the company should be prepared for some major changes. While the COO can and should work within the established business model framework, it is also their job to do a complete operations overhaul.

If the CEO or the rest of the company is not prepared to trust the COO to make the right changes, the partnership will not be successful. In addition, the CEO must trust that the COO only wants what’s best for the company.

Give and Take

According to Harvard Business Review, there are several things a CEO must be prepared to give their COO upon hiring. These include:

Communication

Those vying for the COO position typically understand that it is their job to embrace the CEO’s strategy and vision. However, they can only achieve this if the CEO is clear in their communication. CEOs must be direct and unafraid of being honest with their COOs.

Clear Decision Rights

It is vital for both the CEO and COO to define which responsibilities will fall to which role. Setting explicit and reasonable lines of demarcation between the CEO and COO can help smooth out the relationship.

Though the lines may sometimes get blurry, and overlap is often required, setting clear lines at the start of the professional relationship can help the COO to feel more valued in their role. Often, these decision-making lines are drawn based on the particular competencies of each party.

A Lock on the Back Door

When a COO is brought into a company, a new layer of management is added. Executives who were previously able to address the CEO directly must now flow through the intermediary of the COO.

It is the CEO’s job to ensure that line of delegation is followed. This ensures the lines of responsibility are respected. When the lines of responsibility are respected, the CEO and COO are able to build a more trusting relationship.

A Shared Spotlight

Many COOs understand that the CEO will be largely in the spotlight. They typically come into the position knowing that it is their job to make the CEO more successful.

However, a CEO should be deliberate in ensuring the COO is given credit where it is due. They should communicate with the company and the public the importance of their COO. This creates a more trusting relationship, as everyone likes to be appreciated.

Building a Strong Relationship

If the CEO is prepared to make these changes for their COO, they can often build a more trusting, and therefore more successful, relationship. In any case, it is imperative the CEO find the right person whom they can really trust. Only by finding the right person, will they achieve any success in adding the COO role.

Whether they are Fractional or full-time, a COO can be the necessary ingredient for large-scale and long-term business success. They can keep any business from growing stagnant, so it is important to find one that is trusted and respected, both by the CEO and the industry at large.

Having the Right COO by Your Side Could Make All the Difference

It’s is imperative a company chooses the right COO, and the right type of COO, to oversee their business operations. Without total trust and effective communication, the growth of a business may stall entirely.

Deciding between Fractional Chief Operating Officer vs. Chief Operating Officer, and then choosing the right person for the job, might be a difficult and complicated process. However, understanding and undergoing this process could help your business reach new heights of success.

The post Fractional Chief Operating Officer vs. Chief Operating Officer first appeared on Kamyar Shah.





Latest Images