Why Does The CFO Continually Fight Us?

A READER ASKS:  We are truly a sales driven team of tangible big ticket items.  We are constantly coming up with new or improved methods to differentiate ourselves from the competition.  But our marketing and sales plans seem to continually get hijacked by the finance department, who focus on daily or monthly data and not long term goals.  How do we get over the CFO’s wall of resistance? 

There is little doubt my answer to this multi-company corporate problem will probably bring a touch of anger from our readers within the finance arena.  Although we’ve all got an intricate place in the company structure, I continually state that companies should be managed by a management team that tends to lend itself to the sales side.  However with that said, Performance Management Systems can be developed and deployed to help win over the finance men and women.

Performance measurement systems are affected by the very culture of the group designing and using them. There is nothing wrong with a financial reporting system, but this should not be confused with a performance management system. The latter is intended to guide an organization to results. The finance function, however, is embedded in a culture of risk avoidance and control. The effect of that perspective is to focus on process, accuracy of predictions and variance with expected data.

How much variation in month to month results is typical for your industry? Are long-term trends heading in the right direction? Does your executive team have evidence that past variance with plans is a good predictor of failure to meet goals? Is there a basis to believe this is the case now? Is the finance function being given undue influence over business operations? Remember, accounting is a trailing indicator and, while a provider of important data, it is a supporting function and should not be confused as a business driver.

Discuss with your finance group about a performance measurement system designed for your specific culture, perspective and the impact each department will have on providing data and interpreting that data. Talk about how decisions will be made if one set of data is well outside of expected predictions. How are accountabilities to be set, i.e., how much allowance is appropriate for variance and who is accountable for "fixing" that variance? Have these conversations during the design phase and it will help reduce conflicts with regard “a number” rather than measuring progress against long-term organizational objectives.

As always, your comments are welcome.  Please accept my wishes for an outstanding week!  If we can assist in any way, call or write and we will respond immediately!

Regards,

George F. Mancuso

George F. Mancuso, CPC 

Your Thoughts of Today Are Programming Your Tomorrow

A Reader Asks:  As the economy rebounds, what suggestions do you have
for broadening my sales prospects, thus growing my own business?

Race car drivers accelerate coming out of a turn instead of waiting for the straightaway. This is also a good model for sales people. What areas of the economy and your market are going to be slow to recover or never recover? Which of your clients will YOU stand by if it takes longer to get back to their former strength? What trends were YOU counting on that are picking up strength or were shut off by a changing economy? Now is a great time to be looking at regional and/or national trends to identify where you can begin to cultivate opportunities.

Many major trade organizations publish on occasion a "state of the industry" summary. Recognizing that these are promotional to some extent, they still contain good information on current structure, capacity, demand for products, and changes in production practices or consumption of its products. Also consider government reports that address more macro trends or longer term trends. These reports, even if they are not in your industry, can provide some deep insights into how the economy is changing and where your opportunities may lie.

If the trade association for your industry has no such "State of the Industry" research, and you feel reasonably sure you know a lot about the industry, suggest teaming up with the association's research staff in developing such a report. This is something their members would value and what better way to get known as the "industry expert" than to have the implicit endorsement of a trade association.

Now with all this said, I would strongly encourage you keep a positive mind, positive attitude, positive speech pattern, positive body language and develop my “SURE ‘NUF” thought process.  And if missed that in one of my previous newsletters, here it is again:

“My thoughts of today are programming my tomorrow!”  SURE ‘NUF.  You wake up in the morning, put your feet over the bed, look out the window and say to yourself, “it’s going to be a lousy day!”  SURE ‘NUF!  You tell yourself, “this State is so depressed, I’ll never sell enough to make a living.”  SURE ‘NUF! 

So the call is yours.  Get your proverbial act together, get into the field, be a leader and make things happen.  If you are lazy and are waiting for somebody else to do it then hand it to you, the time has come to change professions.  Without sales teams growing themselves and their companies, the company ceases to exist.  The burden is on OUR shoulders. 

As always, enjoy your week and your comments are always welcome.

Regards,

George F. Mancuso, CPC, CEO
Client Growth Consultants, Inc.

What are the values of "testimonials?"

A READER ASKS:  In your experience, do prospective clients pay attention to testimonials?  
Remember that selling has a great deal to do with not only the perception of competence, but the concept of confidence as well. A testimonial is one way to lower the [mental] perceived risk that the intangible and/or intangible service a client is about to buy are plausible, realistic and risk free or at least "low risk."  When you ask a client for a testimonial, think more about what a risk-averse executive or manager needs to hear and request the testimonial address the risk issues they considered in buying from you.

First, consider the greatest value your clients have received. What have they said was the most important benefit you provided? Then build your requested testimonial around that. Consider including the following, in a sequence that works best for you;

• The project issue or challenge (the preamble for why product or services were required)
• The intended outcome of the engagement (the value provided)
• The actual outcome (especially longer term, in unit terms of dollars, output, or other measure that might translate to a prospective client)
• The reason the client selected your firm (this is the key element to convincing the next client why they should select you, and should include why any reservations were quickly overcome by your performance)
• The core strength you brought to the project (what aspect of your firm's offering you want to highlight)
• The reason the client selected you above other consultants (here is the second most important aspect of the testimonial to induce your prospect to select you)
Think about the points above when you are writing your printable marketing pieces or updating the presentation of your website.  Use these concepts to make your company standout and demonstrate why “YOU” and not “another firm.”

There is good value in planning your "testimonial portfolio" to be a working part of your sales and marketing tools.  Consider the range of compelling reasons you would like to place before a prospect. Since each testimonial can't realistically present all of these reasons, work with your client to create a testimonial that fills the gaps.

P.S.  Clients are less impressed by a testimonial about a firm when it doesn't necessarily relate at all to the buyers proposed needs. If possible, collect testimonials for the individuals on the team rather than the firm in general.  People relate to people.

The 4th quarter is almost upon us and I wish you a tremendous and profitable finish to 2013!  Call or write if I can be of any assistance.

Regards,
George F. Mancuso, CPC, CEO
Client Growth Consultants, Inc.

Four (4) Salient Points To Strengthen Your Team(s)

My beliefs don’t changes much from company to company.  I say this because I have always contended that in most any company, it is PRIMARILY about people.  All of the people, customers included.  So here is the short version of this concept:

1.    ACCOUNTABILITY; Every employee must take ownership and accountability of their actions.  No excuses, YOU MUST BE ACCOUNTABLE FOR YOUR ACTIONS.  I don’t accept finger pointing and my method of resolving issues is simple.  I get both or all parties of conflict in the room immediately upon being aware and then it starts something like this…..”….He said that you said XXX.  Is that true?”  Then I turn it around.  Believe me once the word gets spread that people can’t pass the buck, the buck passing stops. 

2.    PROPRIETARY SPACE:  We have to be very careful here as people who are insecure seem to take invasion of their space, very personal.  But on the other hand there are employees who just want to have their nose stuck in everybody else’s business.  The later reminds me of the great big arm at the waste treatment plant…..continuingly stirring the matter!  Spend your concentration and effort in YOU doing a good job and if one of your fellow employees is in some difficulty, offer to help don’t just impose yourself upon them.  You can get more bees with honey than you can with vinegar. 

3.    YOUR REPLACEMENT; I am a firm believer that we should always be training our replacement.  And when I state that, I inevitably hear, “well if I train her to do my job then they won’t need me here.”  This of course is ridiculous and counterproductive to any professional team.  What happens if someone experiences a catastrophic event in their lives and can’t work?  Why not have the replacement trained and ready.  What if a promotion comes along and you don’t get it because there is no one to take your place?  In this day and age, it is very common and pretty much expected that loyal employees are willing and able to function in multiple roles.  The more you know and the more you contribute the more valuable YOU become. 

4.    COMMUNICATION; In most companies, communication is at an all-time low.  One almost has to pry or extract in some way, needed information.  Communicate via Email, written notes, telephonically or in person, but communicate with each other.  Don’t believe that just because you’ve been employed at your company for a long period of time, you can come and go as you please.  Communicate with each other.  Learn about each other.  Have healthy open discussions to help each other understand the goals, paths and/or expectations.  And did I mention, “Communicate with each other?”

There are 3½ months left in 2013 and this is arguably, the most important 100 days of the year.  This is the time people and companies make decisions to spend before the year comes to an end or what they are going to buy in the first quarter.  Be sure to set yourself in position to get your piece of the sales pie as well.

Regards,

George F. Mancuso, CPC, CEO
Client Growth Consultants, Inc.

 

Fail Safe Suggestions To Manage People Effectively???

One reader writes:  “I have just accepted an executive level position with a new company.  This is my first position at this level and I want to do things right.  Any fail safe suggestions for the new girl on the block?”

I could probably write books on the do’s and do not’s if I knew more about your life experiences and the new company.  But let me to provide an extremely short version of items that just pop into my head without much of an in-depth or detailed thought process.  P.S. there are no “fail safe” processes, just learning to treat people with respect they are due.

1.    Work on being consistent.  Employees like to know where “YOU” stand on a given day.  Try to present the same game face almost every day no matter how stressed you may be or problems on your mind.

2.    Do not attempt to micro manage as this would be the kiss of death.  Instead become a sponge, ask questions that show employees you truly are trying to learn.  It gives them an opportunity to show you what they know and once they know how you are and that you care, they will open the flood gates of knowledge.

3.    Don’t burden them with massive amounts of meetings.  Start slow, gain knowledge and then move forward accordingly.

4.    Do not make sweeping changes in the first few weeks.  My personal belief is that change brings opportunity but most rank-in-file employees’ thought process, doesn’t necessarily embrace change when it’s forced upon them.  Learn how to be subtle and learn to allow it THEIR idea.

5.    You have a business to run, but always remember that employees like customers like to know W.I.I.F.M.?  (What’s In It For Me?)

6.    Sense of humor is very important.  Please do not walk through your manufacturing facility with a stoic or offended look on your face.

7.    Do not forget the words, “thank you, please, looks good and great job!”

8.    If you are a workaholic remember that most rank in file employees are not.  They have families and lives to go to and that should always be respected.

9.    Keep employees informed.  The office staff knows when good things happen so why not have regular and/or impromptu plant meetings and updates everybody?  i.e. Big sale, or a new customer that will be bringing business, job security issues, new ideas, issues that affect all are just a few suggestions of topics.

10.  In all manufacturing environments, safety is a huge issue.  As an executive, practice what you preach.  i.e. Wear eye/ear protection, no loose clothing, watch where you walk etc.

11.  Be a great example of being a team player.  And I define a great team player as one who knows when to lead and when to follow.

12.  Don’t ever have critical or disciplinary discussion in public.

13.  And finally remember this; A manager is a person that employees are directed to follow.  A leader is a manager that employees WANT to follow.  Your choices will help them make their choices. 

So “new girl on the block” I wish you the best and hope these few tips are of value to you.  I salute you for your determination, definition and CAN DO attitude.  I look forward to hearing about the great results from the fruits of your labor.

As always, your comments, opinions and suggestions are always welcome.  Go forth and make this a tremendous week by making an outstanding contribution in someone’s life.  If I can help in any way, please call or write and I will respond immediately!

Regards,

George F. Mancuso
George F. Mancuso, CPC