Register Early for RISE Week Austin!

Registration is now open for RISE Week Austin to be held May 13-17. Named a “Must-Attend 2013 Conferences for Entrepreneurs” by John Hall at Forbes, the event “offers a variety of events, including fast pitch competitions, funding forums, and talks from well-known keynote speakers.”

In a session called “Self-Fueling Partnerships” on Friday, May 17, we’ll discuss how to grow revenue and profits by leveraging the marketing clout, technology, and customer base of larger companies.

To ensure quality interactions, only 25 people are can attend each session, and savvy attenders sign up early.

See you there!

What You Think You Know May Blind You To Growth Opportunities

TexasCEO magazine just published my latest thoughts about partnerships. In addition to correcting myths about partnerships in general, it describes major types of self-fueling partnerships and the series of steps you can employ to accelerate the growth of your business.

As always, let’s hear your feedback, either below or the TexasCEO web site.

 

How Infoglide Enhanced Its Acquisition Options

How does a company get acquired? FICO’s acquisition of Infoglide provides an excellent example of applying deliberate steps to increase the odds and accelerate the process.

CEO Mike Shultz graciously allowed us to describe the backstory in a short case study. Read it to discover what you can do to attract potential acquirers. 

 

>> CASE STUDY: How Infoglide Enhanced Its Acquisition Options

 

 

Is Your Company Geared Up for Growth?

“Gear up” means “to prepare for something that you have to do” or “to prepare someone else for something” (source: Cambridge Dictionary). To assess whether your company is prepared to grow, ask whether your management team has clear answers to 4 questions:

1. Does the company offer something special enough to compel customers to spend money?

The instinctive answer is “of course it does.” After all, a customer base exists and the company is stable, even if growth is slow. But can the management team relate a shared, crystal clear vision of the company, its category, and its primary benefit? The kinds of companies it sells to? The roles of people within those companies that are involved in purchasing? Other unique qualities that differentiate you from competitors? Answers to these questions comprise a company’s strategic positioning, and a lack of team alignment on it leads to huge inefficiencies.

2. How does the company fit into the bigger picture of the market served?

Understanding which companies are competitors and which are potential allies is essential for sales success. Companies often assume competition exists when there may be a chance to partner effectively instead. Understanding the needs of other key companies leads to a clearer understanding of current opportunities, where value exists in your market space, and the potential to leverage the success of potential partners to provide better customer solutions.

3. What relationships with other companies can accelerate growth?

Most CEOs are skeptical about partnering with another company because it’s perceived as too difficult to be successful. While most partnerships fail because of poor analysis, poor planning, and poor management, a well-planned partnership can enable a company to leapfrog its competitors.

4. How can the company operate more effectively to bring the CEO’s vision to reality?

Having the right growth strategy is important, but execution ultimately determines success. Once a company reaches a certain size, growth can be limited by having outmoded or inappropriate processes in place. “We’ve always done it this way” is not an acceptable answer. Outside help may be required to drive the strategy into successful execution.

The chart below illustrates three levels of “gearing up” that a company can find itself in: stalled, moving, and accelerating.




 

 

 

 

 

 

 

Learning how to accelerate your vision and take your company from “stalled” to “accelerating” will be the topic of a subsequent post.

20/20 Outlook’s Third Anniversary

It’s been three years since the launch of 20/20 Outlook as an advisory service for CEOs, and I’ve been blessed with wonderfully rewarding and interesting experiences along the way. By acting as a sounding board for creative business leaders and helping them get clarity about their purpose, value, and relationships, each one has accelerated the quest to achieve his/her business vision.

Recently, Brad Young came into the 20/20 fold as another trusted CEO advisor, bringing with him a whole new set of gifts and talents. His major focus is on initiatives that complete strategies with flawless execution.

Our client discussions cover every aspect of each business, and we often discuss areas of personal challenge and growth. Similar to traditional executive coaching, building trusted CEO relationships has enabled discussions of their strengths and weaknesses, passions, and even the personal search for meaning and purpose. A side benefit that clients have cited is more effective communication with board members, leading to more productive relationships.

Along the way, a wonderful network of people has evolved around us. Each one has generously supported 20/20’s steady growth with introductions and recommendations, suggestions for new offerings, adoption of 20/20 processes, and partnering to help clients. Because of this network, LinkedIn recently recognized my profile as among the top 1%  frequently viewed profiles in 2012.

To our friends and colleagues, thank you for your continuing support!

 

 

Five Disciplined Steps to a Successful 2013

If you lead a business and haven’t yet committed to your resolutions for 2013, here are five ways to start the year off right:

  1. Take Time for “Disciplined Dreaming”
  2. Choose the Right Focus
  3. Find Your Breakout Strategy
  4. Avoid Strategy Mistakes
  5. Move Past the Second Chasm

1. Take Time for Disciplined Dreaming: If you ignored our sole suggestion for 2012, you can redeem yourself in 2013. It’s tempting to work “heads down” all the time, but “heads up” thinking moves your company toward growth much faster.

2. Choose the Right Focus: Key factors in opting to narrow or broaden your focus include available market opportunities, strength of brand, and the company’s ability (e.g. capitalization) to execute, including integrating, partnering, and acquiring. Read more to understand where you stand and where you’d like to move.

3. Find Your Breakout Strategy: If you’re unfamiliar with the term, breakout strategies free your business from current growth-limiting constraints. Even the most visionary CEO may need help in translating a vision for growth into clear, actionable strategies that move the company out of the the plateau it’s mired in.

4. Avoid Strategy Mistakes: In a 2012 Harvard Business Review post, Joan Magretta identified five common strategy mistakes that we believe derive from two common antecedents – lack of clarity and lack of focus. Become familiar with these mistakes so you can avoid them.

5. Move Past the Second Chasm: The most delicate yet most important action for a consultant is pointing out the elephant in the room, especially if it involves challenging the CEO to learn how and when to let go. “Crossing the second chasm does not call for securing a second beachhead. Instead, the challenge is personal: the CEO must modify the way the business operates without losing the uniqueness that created its initial successes.”

Start your year off with disciplined thinking and greatly improve your odds of success.

Happy New Year!

 

Breakout Strategies in Tough Times

Entering 2013, we have larger challenges than ever.  Economic slowdowns in Europe and projected softening demand in Asia and elsewhere are forcing CEOs to pursue more challenging growth opportunities.  This is not an option: we grow or we die.

For many firms, growth has historically come from new products or innovative extensions to existing products.  The simple growth strategy where R&D generates a new widget, Marketing promotes it, and Sales introduces it to customers isn’t working that well any more.  And even if revenue is growing, profits are often generated at the expense of ever deepening cuts in personnel, core capabilities, and reduced investment in capital and equipment.  CEOs are worried that soon they will have to pay the proverbial piper.

M&A alone won’t do it either.  While firms can and often should acquire or merge to become more competitive, most M&A data shows that the combined enterprise delivers little increased profitability.  At best, results are additive, not multiplicative or geometric.  So what’s next?  Where can we find that elusive growth?

Leading companies are broadening their definition of growth beyond traditional product-based categories to include more novel growth strategies.  For CEOs to take advantage of any of them, they must consider the real impacts on their businesses and determine the capabilities they will need to succeed.

First, creative CEOs need to generate a complete portfolio of growth initiatives that include: geographic expansion and M&A; product-based extensions and positioning; integration or bundling of products and services; marketing-driven initiatives like segmentation and value-pricing; localized delivery through outsourced capabilities; value-driven arrangements like performance guarantees; and IT-based strategies like remote services.

Second, CEOs need to determine how best to apply scarce resources to these initiatives, being especially careful to avoid the trap of over-investing in existing businesses – through both capital and key resource allocation – at the expense of novel and potentially much more profitable strategies.  Communicating the necessity of and how best to implement novel strategies to their boards is a critical challenge.  Key questions include: “Do I have the right leaders in the current businesses?  Can my current team succeed in these new lines of business?  Is the plan aggressive enough?  Have we achieved the right balance of risk and projected return?”

Finally, only careful analysis will determine whether any of these breakout strategies are appropriate for your firm.  Can you get buy-in from all stakeholder groups?  Will employees get excited about the new opportunities?  Will the board support the initiatives?  Can you communicate the new direction effectively to analysts and investors?

In these especially demanding times, CEOs must gain a broader perspective and challenge their internal teams’ assumptions.  Make sure that you incorporate external research and insights into your thinking before making the hard calls.

Mutual Accountability Magic

While the latest formula or insight sells business books, most business leaders tend to find their own way, then apply and reapply principles that emerge through their experience.

James Weaver is a serial CEO who’s led multiple companies out of deep holes back to relevance and profitability. He’s one of those gifted CEO’s who quickly finds the right course of action for a failing company and leads the organization to a new and better way to operate.

When I invited him to participate in a book of CEO principles I’m assembling called Shoot the Runt, he suggested a topic immediately. In turning around companies like Gold’s Gym, James developed a mindset and process that encourages everyone in the organization to achieve their highest potential, and he was generous in sharing that process to help the book.

James found repeated success by generating a sense of accountability that drives organizations to new heights of success. Check out the latest CEO/mentor dialog called Mutual Accountability Magic that’s based on the process he’s used successfully multiple times.

Happy Thanksgiving!

Messaging – the Holy Grail of Marketing

[Guest post contributed by Cathy Martin]

Have you ever read a company’s website or marketing collateral, or had a conversation with one of its execs, and come away from the encounter with absolutely no idea what the company does – or why you should care? Me too, all the time.

Obviously, the company in question has major issues with messaging. 

What troubles me most when I encounter ineffective messaging is that it’s usually an indication that the company lacks a solid positioning foundation. A well-defined positioning strategy is mission-critical for any business. For entrepreneurial companies, it’s pretty much a make or break deal.

Let’s talk about positioning for a moment. 

Positioning can be defined in many different ways. I often explain it to clients like this…

Okay, imagine the ideal impact you could have on your ideal target customer. Now, imagine marketing that conveys this impact in a way that creates the ideal perception in the mind of that target customer. The process of defining this perception, the “mental position” you want to occupy (in the mind of the customer), is the fine art of positioning.

Al Ries and Jack Trout said it best in the classic, The 22 Immutable Laws of Marketing: “Marketing is not a battle of products, it’s a battle of perceptions.”

Positioning is key because it shifts your focus from the internal issues of building your company/product, and aims it squarely on your real “reason for being” – the unique customer value that you offer (your secret sauce and greatest competitive advantage) Once your positioning approach is defined, then it’s a matter of crystallizing this positioning into clear, concise, consistent messaging that inspires and engages the target customer.

How’s your messaging working? 

Here’s a litmus test, in case you’re wondering… the most common messaging mistakes I see:

Kitchen sink messaging: When your messaging tries too hard to cover all the bases (be everything to everyone), the end result is that it speaks to no one. If your target customers can’t identify, quickly and easily, how your product offering relates to them, they’re off to the next contender (over and out).

Head scratch messaging: If your messaging is overly complex, vague or confusing – if it contains acronyms, “tech speak” or language that doesn’t readily resonate with the target customer – then you’ve lost a precious opportunity to create a connection with them. They quickly throw in the towel and move on.

Kool-Aid messaging: It’s all too easy to get caught up in your own world, aka “drink the Kool-Aid”, where the center of the universe is the product you’re delivering. After all, those bells and whistles are very cool, right? Unfortunately, folks aren’t going to care about all that, unless your marketing makes them care – by clearly conveying the unique value that you offer and precisely what it means to them.

Yeah, right messaging: Sure, your messaging should absolutely put your best foot forward in a way that’s bold and compelling. However, if it makes claims that seem too grandiose or unbelievable, then target customers are left to wonder about the reality of what you’re offering and the truth of your promises. Obviously, that’s deadly.

Me too messaging: I know, sometimes your competitors say things that you believe are “more true” about your company or product than theirs. But, if your messaging mimics theirs, or generally sounds like everyone else, your target customers are going to see you as just another sheep in the herd (or is that the flock?).

Messaging du jour: Here it is, the  #1 Hall of Fame messaging pitfall… messaging that changes as fast, or as often, as central Texas weather. When your messaging is constantly shifting – without a validated reason or managed approach – nothing sticks, nobody gets it, you stake no clear ground in the marketplace. Game over, time to pack up your toys and go home.

Any way you slice it, creating messaging that captures and conveys your unique customer value, with precision and impact, can be a challenging endeavor. If you suspect that your messaging isn’t working quite right, don’t take it lightly. Find a way to remedy that situation – and fast.

This post was provided by Cathy Martin, owner of Cathy Martin Consults, an entrepreneurial marketing consulting firm based in Austin, Texas. Over the last two decades, Cathy has worked with dozens of companies – all shapes, sizes, stages and flavors – to define positioning strategies, messaging platforms, practical marketing plans and programs. For more entrepreneurial marketing insights, see: www.cathymartin.com.

 

 

 

 

Lead Through Culture

Last week, I attended Austin Business Journal’s CEO awards event with Ed Trevis, CEO of Corvalent. The city’s vibrant entrepreneurial scene wouldn’t exist without talented and dedicated CEOs, and an invited group had gathered to honor Austin’s best and brightest.

Brett Hurt, CEO of Bazaarvoice, won the award for large company CEOs. His company recently went public and continues to grow at a rapid pace. Fortunately, I met Brett a couple of years ago and was later able to spend some time in his office talking about his passion – managing company culture.

In the book I’m writing called Shoot the Runt, the latest CEO/mentor dialog illustrates one example of how culture affects success. Each dialog is based on real principles from serial CEOs. I’m very grateful to Brett for providing the concept for this chapter and agreeing to help with the book.

I hope you enjoy the dialog called Lead Through Culture, and as always, your input is appreciated.

 

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