Most organizations conduct employee surveys of various types either annually, every two years or sporadically. Some organizations use the data from the employee survey to affect real change that contributes to their ongoing success. There are organizations who like to focus on comparing their survey scores to the scores of other organizations and there are the organizations that do little with their survey results. The focus of this article is to discuss the middle group: those organizations that like to focus on and compare their employee survey scores against the average scores of all the organizations that are in a third party database.
Many surveying companies sell their services on the basis that they will be able to compare the scores of the one company against the average score of all of the organizations in their database. Comparing yourself to someone else is enticing. We have been exposed to comparative data from the first day we stepped inside a school. Throughout our primary and secondary education we were compared to the rest and typically this comparison was against the “class average”. We knew who the smartest and the dumbest kids were but it was the average that counted. Was I above or below the class average? That was important in terms of dealing with our own self esteem and dealing with our parents. This was not the case for all students. The parents of some students demanded top marks and that is exactly what those few students worked towards. They had to be the best. They had to have the top marks.
This was all very interesting but in the end it was irrelevant. When it came time to apply to university a new standard had to be reached. University entrance requirements varied but one thing was clear. Average marks were not good enough. In fact being above average in many instances was not good enough. University entrance requirements were demanding and one had to strive for a new and much higher standard than “average”. The profile or status of a university that you were interested in attending, determined the level of academic excellence you had to achieve.
It is puzzling to see how many organizations fall into the trap of placing a great deal of emphasis on comparing their surveys scores to a database that represents the average of a number of companies. These comparisons are sought not only for the overall scores of the employee survey, but for every question in the survey.
It would appear that a fundamental question needs to be asked by every organization-why are we conducting an employee survey in the first place and what are we going to do with the results.
From a strategic perspective it would seem reasonable to think that an organization would wish at the very least, to demonstrate that the survey is helping the organization to achieve their strategic goals. In other words, they are conducting the employee survey as a way of obtaining employee information that can be used to improve for example, workplace practices in order to lift their employees’ working experience. In turn this will lift the customer experience and profits.
However, if this or some other strategic purpose is not being fulfilled by the employee survey than the value of conducting the survey is questionable. One could argue that comparing oneself to other organizations is in fact a legitimate strategic objective. It is worth knowing how you compare to the best. How does your stock performance compare to the best in your business sector-not the average of all the companies in your business sector but only the best? How do your employee survey scores compare to the best in your business sector-not the average of all the businesses in the database but only the best?
Comparing oneself to the very best is legitimate especially if the best sets a benchmark that you adopt as your own. But to compare oneself to the average serves no useful purpose. If a senior management group knows that their scores are better than the average of all the companies in a database, strategically of what use is this information. Perhaps it may give them a sense of pride knowing that they are better than the average. But it may also lull them into a false sense of confidence. The question that should be top of mind is “are we really as good as we can be and are we really achieving a level of excellence that will sustain us over the long term.”
For example, employee turnover in the retail sector is fairly high. Most retailers take it for granted. Entec Corporation has been working with Gap Inc. Canada for several years. Gap offers excellent training programs especially for their associate managers and store managers. In 1999, Gap was routinely being raided by other retailers and their annual turnover rate for store managers was 39% and for associate managers it was 48%. This was costing Gap hundreds of thousands of dollars each year in recruiting and training. With over 200 stores and 10,000 employees across Canada, these costs were unacceptable. Entec Corporation was engaged by Gap to conduct an Organizational Health Survey. Gap acted upon the recommendations in the survey and was able to reduce manager turnover rates to 13% in one year.
But these lower turnover rates were accompanied by real business gains. For example, secret shopper scores increased by 5% after only eight months and sales in Canada over the last few years have improved to a level where the Canadian operation moved from being about in the middle to becoming one of the most profitable divisions in the world. The survey results were linked directly to the bottom line.
If Gap accepted “the trap of comparing themselves to the average” and accepted the conventional wisdom that “this is the average turnover rate in retail so we are OK”, they would not have saved thousands of dollars each year in training and recruiting. More importantly they would not have experienced the benefits that reduced turnover brought them; namely preserving human capital of highly trained managers that helped to grow Gap’s business. This last point is typically overlooked. The impact of a reduction in turnover of well trained employees to the bottom line of a company is considerably higher than the cost savings achieved from reducing recruiting and training.
Several points need to be considered when embarking on an employee survey:
1. Develop clear strategic objectives
2. Measure towards those objectives
3. Inform your employees of the survey scores
4. Follow up with positive implementation
5. If you must compare yourself to others, compare yourself only to the best
If this process is not followed the organization can expect:
1. Employee participation rates in the survey to be low (30% or lower)
2. Rising employee cynicism with the organization (why bother if the activity of completing an employee survey does not make a difference)
3. Employees become disengaged from the organization
4. The organization loses an opportunity to make significant strides in performance
Conclusion
The trap an organization falls into when they become focused on benchmarking themselves against others is that they lose sight of what is really important-what is it that we are doing well and where do we need to improve in order to create an even better organization than the one we already have. If you must compare yourself to others, compare yourself only to the best and do not get side tracked.
A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals.
Showing posts with label Management. Show all posts
Showing posts with label Management. Show all posts
Five Tips To Managing Your Small Business
Managing a small business is rewarding, both personally and financially. However, it is also stressful and time consuming. By keeping in mind the following five tips, small business owners can better manage their business and feel less stressed.
• Maintain a healthy work-life balance. If your business is run out of your home, try to set business hours that you work by, take breaks throughout the day or go out for lunch. Destress and recharge your batteries by developing interests or hobbies outside your business.
• Set goals. Setting short and long-term business goals can help you keep your business on track. They can also offer a sense of direction that helps to guide business growth. Whether it's opening another store or increasing profit, it doesn't hurt to "think big."
• Keep finances in order. Keeping track of money coming in and going out can easily get out of control using paper, spreadsheets and file folders. If this is your method, it's time to accurately track and keep your company finances organized throughout the year. This will also make tax time a whole lot easier. No matter if you have simple or complex accounting needs, with the help of financial software such as QuickBooks, you'll be able to easily and effectively manage your finances. For more information about managing your business finances.
• Stay informed. With any business it's important to stay informed about the industry, business trends and current events. At the same time, you need to stay informed about specific laws, regulations and tax codes that affect your business.
• Develop a network. Small business owners often don't have the support and resources that a large company can provide. Therefore, it's important to build a strong network of people-employees, vendors and other small business owners.
For example, participating in local business organizations and conferences are good ways to find support and develop a professional network. This network will prove invaluable when you need inspiration or advice on how to better manage your business.
Managing a small business doesn't have to be a juggling act. Simple tips can make managing a small business a breeze.
• Maintain a healthy work-life balance. If your business is run out of your home, try to set business hours that you work by, take breaks throughout the day or go out for lunch. Destress and recharge your batteries by developing interests or hobbies outside your business.
• Set goals. Setting short and long-term business goals can help you keep your business on track. They can also offer a sense of direction that helps to guide business growth. Whether it's opening another store or increasing profit, it doesn't hurt to "think big."
• Keep finances in order. Keeping track of money coming in and going out can easily get out of control using paper, spreadsheets and file folders. If this is your method, it's time to accurately track and keep your company finances organized throughout the year. This will also make tax time a whole lot easier. No matter if you have simple or complex accounting needs, with the help of financial software such as QuickBooks, you'll be able to easily and effectively manage your finances. For more information about managing your business finances.
• Stay informed. With any business it's important to stay informed about the industry, business trends and current events. At the same time, you need to stay informed about specific laws, regulations and tax codes that affect your business.
• Develop a network. Small business owners often don't have the support and resources that a large company can provide. Therefore, it's important to build a strong network of people-employees, vendors and other small business owners.
For example, participating in local business organizations and conferences are good ways to find support and develop a professional network. This network will prove invaluable when you need inspiration or advice on how to better manage your business.
Managing a small business doesn't have to be a juggling act. Simple tips can make managing a small business a breeze.
Labels:
Management
Becoming A Coach In Everyday Life
Be the change you want to see occur in the world around you. We can't make other people be more considerate, helpful, honest, etc., but if everyone were to work on themselves and develop these attributes, our world would be a better place.
Don't be judgmental. Look for and recognize the good in yourself and in others. We are all capable of so-called "good" and "bad" behaviors and we all have our "good" and "off" days. We are all unique and it is wonderful that we are different and not all the same - in our appearance, our thoughts, our opinions, our likes and dislikes. Being different is not threatening, it is not "bad", it is just "different". Embrace the differences and be happy for the variety. Likewise, forget the concepts of "right" and "wrong". People are not good or bad or right or wrong; they just are. If you were in "their shoes" maybe you would act differently, or maybe not. Being judgmental wastes time and cuts you off from opportunities and meaningful relationships - because you are not perfect either, and your judgment might be worse than the person's you are judging!
Respect. Don't make the mistake of thinking your rights are the only ones that count. Don't ignore the other person's rights. Our fundamental right is to be respected. Being wealthy does not make a person more deserving of respect and neither does a high-flying career with a fancy title. Respect is not about material issues or where one sits on the social ladder. Respect is acknowledging another human being's dignity and treating them how you wish to be treated yourself. We all came on to this earth equal and we're all checking out as equals. What happens in between is just a series of different life experiences. The poor man who lives in a slum, who cares for strangers, volunteers assistance without expecting anything in return and lives a clean, honest life is more deserving of respect than a wealthy businessman who dresses in fine clothes, lives in a huge mansion, and treats everyone like pond amoeba, cheats on his wife, swindles his shareholders and has forgotten how to tell the truth.
Be a Good Listener. How often do you really listen to other people? How often do you plan what you are going to say next while they are talking, or allow your mind to drift off onto something else instead of concentrating on their every word? It takes practice to be a good listener, but in being one, you are showing respect and in a position to better comprehend the real message being given to you. You avoid misunderstandings and missed instructions. Furthermore, the other person will appreciate your attention and return the courtesy.
Be interested - not interesting. This goes hand in hand with being a good listener. People love to talk about themselves and will delight in the opportunity to do so, so ensure you ask questions and take an interest in what they are telling you. Don't worry about them hogging the limelight - you can have your turn during the conversation. Have you ever met someone who only talks about themselves? Count the number of times you use "I" in your conversations. Judging, arguing points, interrupting the conversation, and using "I" a lot are sure signs you need to review your communication skills.
Respond from Your Heart. We tend to respond to others using our head, not our heart. We formulate stories about us, we defend our ego, or we judge other people or what they have said. If we respond from our heart, we can respond with understanding and a sense of connection. Find something good to say about people and to people. Build people "up" - don't knock them down. Go with your gut instincts.
Be truthful. There is a good reason for the saying "honesty is the best policy." Nothing good ever comes from lies, and there is a difference between being diplomatic and telling an outright lie. Nobody trusts a liar. If you've made a mistake, well, welcome to the human race! You don't have to lie to cover it up. You don't have to tell your truth "brutally", there are gentle and tactful ways of delivering truths and you should think carefully before you speak. But don't try to be deceitful because it has a habit of coming back to haunt you, and in those situations you are worse off than if you had just come clean in the first place, as uncomfortable as that may seem at the time.
Be helpful. When you need a helping hand, don't you just love the person who comes up and offers that to you? Wouldn't you love the opportunity to repay them? You can be that person that others look to respectfully with gratitude in their hearts, who will, one day, repay the gesture. What comes around, goes around. If you want people to be helpful to you, you must be helpful to others. It doesn't matter whether this is assisting your boss with a special project you can see he needs help with, or a co-worker who is struggling with a large workload, or an elderly neighbor struggling up the stairs with her arms full. People do remember kindness.
Maintain Your Integrity and Your Dignity. People with their integrity intact are easier to deal with in work or personal situations. They know where they stand and you know where you stand with them. You will feel better about yourself when you set your standards and stand by them and you will attract those who respect your standards and who have standards of their own. Being a doormat is disrespectful to yourself and to the person 'walking all over you'. It does not allow them to grow and learn to do something for themselves. Learn to say no gracefully. You have as much right as everyone else on the planet to have your own opinion and your own way of doing things, and reminding you of point (1) above, nobody has the right to make you feel 'bad' if you think, feel or dress differently. Remember, "to thine own self be true."
Go the Extra Mile. I mean this in a couple of ways. First, whether you are either asked to do something, or you are offering to do something, remember that if something is worth doing in the first place, then it is worth doing well. And while you are at it, what little touches can you offer to improve it? For example, who would you rather go to for your shoeshine… Mr. A does a wonderful buff and polish and is timely and not too expensive. Mr. B also does a wonderful buff and polish, he is also timely and not expensive, but he is also cheerful and interested in you and whistles while he works, so after your polish, you go on your way feeling on top of the world! Mr. B just went the extra mile for you. He didn't just polish your shoes, he lifted your spirits and made you feel good. If you are offering a co-worker assistance with copying some documents, go the extra mile and ask if she needs a hand stapling them or collating them. Going the extra mile need not involve a large expense of time, energy or money, but it's value to the recipient is often priceless, and one day, it will be reciprocated.
Say What You Mean and Mean What You Say. Neither beat around the bush being evasive, nor make promises you can't keep. On the other hand, if you say you are going to do something, do it. Be known as a reliable person. Honor your promises and agreements wherever possible - this stems back to integrity. Prepare to be flexible if need be, but know that you don't have to bend over so far backwards that your back snaps. Being assertive and being aggressive are two entirely different things, and you do not need aggression to be assertive. In fact, you are better off without the aggression! If you are wishy-washy and allow people or circumstances to be unconcerned for your position, you will develop that reputation and find more and more people willing to walk all over you and more situations in which it occurs. Being like this does not prove you are valuable to anybody - it just means you are a 'pushover'.
Don't be judgmental. Look for and recognize the good in yourself and in others. We are all capable of so-called "good" and "bad" behaviors and we all have our "good" and "off" days. We are all unique and it is wonderful that we are different and not all the same - in our appearance, our thoughts, our opinions, our likes and dislikes. Being different is not threatening, it is not "bad", it is just "different". Embrace the differences and be happy for the variety. Likewise, forget the concepts of "right" and "wrong". People are not good or bad or right or wrong; they just are. If you were in "their shoes" maybe you would act differently, or maybe not. Being judgmental wastes time and cuts you off from opportunities and meaningful relationships - because you are not perfect either, and your judgment might be worse than the person's you are judging!
Respect. Don't make the mistake of thinking your rights are the only ones that count. Don't ignore the other person's rights. Our fundamental right is to be respected. Being wealthy does not make a person more deserving of respect and neither does a high-flying career with a fancy title. Respect is not about material issues or where one sits on the social ladder. Respect is acknowledging another human being's dignity and treating them how you wish to be treated yourself. We all came on to this earth equal and we're all checking out as equals. What happens in between is just a series of different life experiences. The poor man who lives in a slum, who cares for strangers, volunteers assistance without expecting anything in return and lives a clean, honest life is more deserving of respect than a wealthy businessman who dresses in fine clothes, lives in a huge mansion, and treats everyone like pond amoeba, cheats on his wife, swindles his shareholders and has forgotten how to tell the truth.
Be a Good Listener. How often do you really listen to other people? How often do you plan what you are going to say next while they are talking, or allow your mind to drift off onto something else instead of concentrating on their every word? It takes practice to be a good listener, but in being one, you are showing respect and in a position to better comprehend the real message being given to you. You avoid misunderstandings and missed instructions. Furthermore, the other person will appreciate your attention and return the courtesy.
Be interested - not interesting. This goes hand in hand with being a good listener. People love to talk about themselves and will delight in the opportunity to do so, so ensure you ask questions and take an interest in what they are telling you. Don't worry about them hogging the limelight - you can have your turn during the conversation. Have you ever met someone who only talks about themselves? Count the number of times you use "I" in your conversations. Judging, arguing points, interrupting the conversation, and using "I" a lot are sure signs you need to review your communication skills.
Respond from Your Heart. We tend to respond to others using our head, not our heart. We formulate stories about us, we defend our ego, or we judge other people or what they have said. If we respond from our heart, we can respond with understanding and a sense of connection. Find something good to say about people and to people. Build people "up" - don't knock them down. Go with your gut instincts.
Be truthful. There is a good reason for the saying "honesty is the best policy." Nothing good ever comes from lies, and there is a difference between being diplomatic and telling an outright lie. Nobody trusts a liar. If you've made a mistake, well, welcome to the human race! You don't have to lie to cover it up. You don't have to tell your truth "brutally", there are gentle and tactful ways of delivering truths and you should think carefully before you speak. But don't try to be deceitful because it has a habit of coming back to haunt you, and in those situations you are worse off than if you had just come clean in the first place, as uncomfortable as that may seem at the time.
Be helpful. When you need a helping hand, don't you just love the person who comes up and offers that to you? Wouldn't you love the opportunity to repay them? You can be that person that others look to respectfully with gratitude in their hearts, who will, one day, repay the gesture. What comes around, goes around. If you want people to be helpful to you, you must be helpful to others. It doesn't matter whether this is assisting your boss with a special project you can see he needs help with, or a co-worker who is struggling with a large workload, or an elderly neighbor struggling up the stairs with her arms full. People do remember kindness.
Maintain Your Integrity and Your Dignity. People with their integrity intact are easier to deal with in work or personal situations. They know where they stand and you know where you stand with them. You will feel better about yourself when you set your standards and stand by them and you will attract those who respect your standards and who have standards of their own. Being a doormat is disrespectful to yourself and to the person 'walking all over you'. It does not allow them to grow and learn to do something for themselves. Learn to say no gracefully. You have as much right as everyone else on the planet to have your own opinion and your own way of doing things, and reminding you of point (1) above, nobody has the right to make you feel 'bad' if you think, feel or dress differently. Remember, "to thine own self be true."
Go the Extra Mile. I mean this in a couple of ways. First, whether you are either asked to do something, or you are offering to do something, remember that if something is worth doing in the first place, then it is worth doing well. And while you are at it, what little touches can you offer to improve it? For example, who would you rather go to for your shoeshine… Mr. A does a wonderful buff and polish and is timely and not too expensive. Mr. B also does a wonderful buff and polish, he is also timely and not expensive, but he is also cheerful and interested in you and whistles while he works, so after your polish, you go on your way feeling on top of the world! Mr. B just went the extra mile for you. He didn't just polish your shoes, he lifted your spirits and made you feel good. If you are offering a co-worker assistance with copying some documents, go the extra mile and ask if she needs a hand stapling them or collating them. Going the extra mile need not involve a large expense of time, energy or money, but it's value to the recipient is often priceless, and one day, it will be reciprocated.
Say What You Mean and Mean What You Say. Neither beat around the bush being evasive, nor make promises you can't keep. On the other hand, if you say you are going to do something, do it. Be known as a reliable person. Honor your promises and agreements wherever possible - this stems back to integrity. Prepare to be flexible if need be, but know that you don't have to bend over so far backwards that your back snaps. Being assertive and being aggressive are two entirely different things, and you do not need aggression to be assertive. In fact, you are better off without the aggression! If you are wishy-washy and allow people or circumstances to be unconcerned for your position, you will develop that reputation and find more and more people willing to walk all over you and more situations in which it occurs. Being like this does not prove you are valuable to anybody - it just means you are a 'pushover'.
Labels:
Management
Advantages Of Time Management
The advantages of time management include reducing stress, gaining time, reducing avoidance, while promoting reviews and eliminating cramming. Another advantage is that managing time helps us to stay motivated while we avoid procrastination.
The trick to successful time management is setting up goals that work, while having an awareness of those goals and prioritizing your list of goals. When you set up an effective time management plan, you are growing and upholding a personal commitment to yourself, with the ability to be more flexible.
When you have a great time management plan, you are giving yourself an individual chance to, to generate a timetable that works to suit your busy caseload. When you create a good plan, you will soon find time to do all the things that matter most to you in life. In addition, when you have a good time management plan, you are saving your health.
Plans have a schedule timed, which includes all the activities you are responsible to handle. Your Master Timetable should include all the most important activities you are responsible to handle. It is important that you modify this schedule according to your time changes. When you set up a Master Timetable, you will need to list the priorities first, and work your way down to the least important tasks.
It is important that you follow as you write the tasks first listed. In other words, if you state on your Master Timetable that you need to write up some documents for your business, then do this task first and proceed to the next task. Try to avoid handling multitasking at once, unless it is your job and you are sufficient, and have laid out a time management plan.
You will also need to include meals, sleep, family, friends, yourself, and other tasks if you they are a part of your time management. By setting up a Master Timetable, you can work out your time scheme by working through the list on the time chart. Try to avoid skipping a scheduled task, or procrastinating, since this will only delay your plan.
It is important to keep in mind, that time is essential. When we waste time, we are wasting money. After you have laid out a suitable Schedule Timetable, you will soon learn that your motivation has increased, while your progress is moving ahead. In addition, you will soon find that your stress level is at a normal state. When you are not focused, or do not have a time management plan, you are only hurting yourself in the long run.
Most people without a time management plan often suffer with poor health, insomnia, and other discomforting issues. Some people even find themselves in court waiting for the judge to say “You are now divorced.” So you can see that time management is important since it affects everyone around you, but most of all, it affects you.
A final tip: Exercise and eating right plays an essential role to time management, since when you feel good, you work well under a management plan.
The trick to successful time management is setting up goals that work, while having an awareness of those goals and prioritizing your list of goals. When you set up an effective time management plan, you are growing and upholding a personal commitment to yourself, with the ability to be more flexible.
When you have a great time management plan, you are giving yourself an individual chance to, to generate a timetable that works to suit your busy caseload. When you create a good plan, you will soon find time to do all the things that matter most to you in life. In addition, when you have a good time management plan, you are saving your health.
Plans have a schedule timed, which includes all the activities you are responsible to handle. Your Master Timetable should include all the most important activities you are responsible to handle. It is important that you modify this schedule according to your time changes. When you set up a Master Timetable, you will need to list the priorities first, and work your way down to the least important tasks.
It is important that you follow as you write the tasks first listed. In other words, if you state on your Master Timetable that you need to write up some documents for your business, then do this task first and proceed to the next task. Try to avoid handling multitasking at once, unless it is your job and you are sufficient, and have laid out a time management plan.
You will also need to include meals, sleep, family, friends, yourself, and other tasks if you they are a part of your time management. By setting up a Master Timetable, you can work out your time scheme by working through the list on the time chart. Try to avoid skipping a scheduled task, or procrastinating, since this will only delay your plan.
It is important to keep in mind, that time is essential. When we waste time, we are wasting money. After you have laid out a suitable Schedule Timetable, you will soon learn that your motivation has increased, while your progress is moving ahead. In addition, you will soon find that your stress level is at a normal state. When you are not focused, or do not have a time management plan, you are only hurting yourself in the long run.
Most people without a time management plan often suffer with poor health, insomnia, and other discomforting issues. Some people even find themselves in court waiting for the judge to say “You are now divorced.” So you can see that time management is important since it affects everyone around you, but most of all, it affects you.
A final tip: Exercise and eating right plays an essential role to time management, since when you feel good, you work well under a management plan.
Labels:
Management
Creating Unique Business Alliances: Six Insights To Help Transform Your Company’s Value
Recent news concerning IT industry strategic alliances increasingly trumpet the word “unique” as in ‘unique alliance’ or ‘unique partnership’. Usually these unique arrangements bring together a marketer (either a system integrator or a service provider) with a solid footprint in a niche market and a technology developer or manufacturer with an innovative or proprietary capability.
This type of alliance transfers to the marketer a unique technological edge. The marketer's objective in many such cases is to keep competitors at bay, grow market share or create enough performance value to justify a higher price. For the developer partner, aligning with the marketer provides a significantly extended market reach that simply translates into the sale of an increased number of units as well as a branding leap into greater market visibility.
This deal constitutes an excellent exchange of value for both partners. But as business alliances are not forever, the true assessment of the deal's value must be evaluated over time. In its early days Microsoft supplied DOS in a partnership with IBM's original desktop PC. In time Microsoft’s OS took over the PC market supplying all manufacturers. IBM was forced to back up out of the PC driveway, but it learned the power of partnering brilliantly transforming its business model into the world’s most prolific and successful IT services partnership network builder.
Acquiring a Unique Value Proposition
Of the many reasons for initiating a strategic alliance, the most highly-sought after type is one that creates a “unique value proposition” (UVP) — the three golden words so enticing to venture investors throughout the world.
How do you get UVP if you don't produce it?
A strategic alliance can transform nearly any traditional sales and distribution enterprise into a uniquely positioned provider -- all you need are customers! Have your considered this? Transform your company instantly into an unstoppable juggernaut simply by formulating a strategic alliance with one or more suppliers who may add a unique piece to your package, program or end-to-end offerings. Suddenly, your company acquires a UVP. More orders, greater equity value...before you know it, investors come sniffing around.
What are they looking for?
They want to know what you'll do for your next act.
Sure. That first alliance you just made was a successful move. It got attention. And it’s working. But, don't get too busy with that. Save some time for developing additional alliance ideas. You need to look at your company’s future in terms of a total, long-term strategic alliances plan.
Six key questions to formulating a long-term alliance road map
Use these six Partner M questions to develop your own alliance road map:
- What are my core competencies?
- What are my customer assets?
- How bad are the performance gaps as experienced by my customer/user?
- What are the innovative upgrades desired by my customer/user?
- How well are my competitors performing in areas where we are weak?
- Where do we perform better than our competitors?
Now answer this:
Can you locate and negotiate a deal with potential suppliers who can deliver to you
a unique product or service that:
(a) your company cannot duplicate more profitably with its core competence;
(b) will be highly valued by your customers;
(c) will fix a problem or enable you to offer customers an optional upgrade;
(d) will strengthen an area where you had been weak; or,
(e) will help insure that you can continue to outperform our competitors?
If your answer is yes to any one or more of these options, then you have the basis for a strategy that would result in higher order volume, as well as a path to added value and increased brand equity.
How do you validate that assumption?
Project the pros and cons of executing your alliance plan
Calculate a scenario assuming the amount of revenue you could generate and profits you would achieve after you’ve found one such partner and have successfully negotiated an alliance.
Be sure you have identified and adjusted your projection for any possible downside and cost of implementing the partnership. Next, forecast where you’ll be in three years without this alliance or a comparable strategy.
In addition you should assess the impact of your alliance on the competition with a sober determination of how they may react. Here is where the value of establishing a 'unique alliance' becomes so important. Paradoxically, your alliance's UVP shelf life must be viewed as both temporary and continuous. Any one alliance you enter is temporary. Your strategy must be continuous.
How temporary is your alliance? If any of your competitors can match your partnership with another and duplicate the contribution of your unique ally in fairly short order, your UVP will not last long. You may need to move faster to extend the your UVP shelf life and begin to plan your next UVP partnership. Within this scenario you would need to move faster on the alliance front or find yourself having to plax deep catch up if your competitor takes the initiative before you do.
Design an ongoing alliance strategy
To develop a continuous UVP plan extend your alliance road map by duplicating your forecast calculations to include all potential alliances you foresee into the future. How far can you go using this strategy? If possible, don’t stop until you're able to imagine this process reaching a global scale or an exit strategy. Finally, your alliance plan must weigh alliance costs and risks against the benefits/costs/risks of alternative strategies.
Whether your enterprise takes the role of a marketer or a supplier, you shotld consider formulating a phased-in partnership plan containing a list of target partner prospects, financial validations, a timeline and undertake a marketing initiative aimed at shaping a receptive and synergistic relationship with partner executives and operational teams. Executing the plan is your next challenge. Don't hesitate to seek help in developing your plan and making it happen.
This type of alliance transfers to the marketer a unique technological edge. The marketer's objective in many such cases is to keep competitors at bay, grow market share or create enough performance value to justify a higher price. For the developer partner, aligning with the marketer provides a significantly extended market reach that simply translates into the sale of an increased number of units as well as a branding leap into greater market visibility.
This deal constitutes an excellent exchange of value for both partners. But as business alliances are not forever, the true assessment of the deal's value must be evaluated over time. In its early days Microsoft supplied DOS in a partnership with IBM's original desktop PC. In time Microsoft’s OS took over the PC market supplying all manufacturers. IBM was forced to back up out of the PC driveway, but it learned the power of partnering brilliantly transforming its business model into the world’s most prolific and successful IT services partnership network builder.
Acquiring a Unique Value Proposition
Of the many reasons for initiating a strategic alliance, the most highly-sought after type is one that creates a “unique value proposition” (UVP) — the three golden words so enticing to venture investors throughout the world.
How do you get UVP if you don't produce it?
A strategic alliance can transform nearly any traditional sales and distribution enterprise into a uniquely positioned provider -- all you need are customers! Have your considered this? Transform your company instantly into an unstoppable juggernaut simply by formulating a strategic alliance with one or more suppliers who may add a unique piece to your package, program or end-to-end offerings. Suddenly, your company acquires a UVP. More orders, greater equity value...before you know it, investors come sniffing around.
What are they looking for?
They want to know what you'll do for your next act.
Sure. That first alliance you just made was a successful move. It got attention. And it’s working. But, don't get too busy with that. Save some time for developing additional alliance ideas. You need to look at your company’s future in terms of a total, long-term strategic alliances plan.
Six key questions to formulating a long-term alliance road map
Use these six Partner M questions to develop your own alliance road map:
- What are my core competencies?
- What are my customer assets?
- How bad are the performance gaps as experienced by my customer/user?
- What are the innovative upgrades desired by my customer/user?
- How well are my competitors performing in areas where we are weak?
- Where do we perform better than our competitors?
Now answer this:
Can you locate and negotiate a deal with potential suppliers who can deliver to you
a unique product or service that:
(a) your company cannot duplicate more profitably with its core competence;
(b) will be highly valued by your customers;
(c) will fix a problem or enable you to offer customers an optional upgrade;
(d) will strengthen an area where you had been weak; or,
(e) will help insure that you can continue to outperform our competitors?
If your answer is yes to any one or more of these options, then you have the basis for a strategy that would result in higher order volume, as well as a path to added value and increased brand equity.
How do you validate that assumption?
Project the pros and cons of executing your alliance plan
Calculate a scenario assuming the amount of revenue you could generate and profits you would achieve after you’ve found one such partner and have successfully negotiated an alliance.
Be sure you have identified and adjusted your projection for any possible downside and cost of implementing the partnership. Next, forecast where you’ll be in three years without this alliance or a comparable strategy.
In addition you should assess the impact of your alliance on the competition with a sober determination of how they may react. Here is where the value of establishing a 'unique alliance' becomes so important. Paradoxically, your alliance's UVP shelf life must be viewed as both temporary and continuous. Any one alliance you enter is temporary. Your strategy must be continuous.
How temporary is your alliance? If any of your competitors can match your partnership with another and duplicate the contribution of your unique ally in fairly short order, your UVP will not last long. You may need to move faster to extend the your UVP shelf life and begin to plan your next UVP partnership. Within this scenario you would need to move faster on the alliance front or find yourself having to plax deep catch up if your competitor takes the initiative before you do.
Design an ongoing alliance strategy
To develop a continuous UVP plan extend your alliance road map by duplicating your forecast calculations to include all potential alliances you foresee into the future. How far can you go using this strategy? If possible, don’t stop until you're able to imagine this process reaching a global scale or an exit strategy. Finally, your alliance plan must weigh alliance costs and risks against the benefits/costs/risks of alternative strategies.
Whether your enterprise takes the role of a marketer or a supplier, you shotld consider formulating a phased-in partnership plan containing a list of target partner prospects, financial validations, a timeline and undertake a marketing initiative aimed at shaping a receptive and synergistic relationship with partner executives and operational teams. Executing the plan is your next challenge. Don't hesitate to seek help in developing your plan and making it happen.
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