Jan 2009
Don't worry about the rain...
15/01/09 13:32
Change. We all like to think that we can handle (even thrive on) change, but recent financial market turmoil has almost everyone feeling disoriented and dizzy.
Major investment banks, insurance companies, auto manufacturers and more boarding up the windows and shutting off the lights. Throw in a Madoff Ponzi scheme and a couple of trillion dollar deficits-- it may be enough to make you want to just pull the covers over your head and go back to bed. (By the way, check out NPR's Planet Money podcast for a reasonably succint, yet in-depth look at relevant financial news on a daily basis.)
But you can bet that the smart CEOs are not sleeping in late. They know that now is the time to invest in increasing efficiency and expanding opportunism. Those who are going to weather the storm are going to end up dominating their markets in the end-- and the way to start down that path is to find ways to grab a bigger piece of the shrinking pie.
So my need for a healthy top line and bottom line hasn't changed. What has changed is that I am even less willing than ever to listen to your sales pitch about your products' features (or even benefits) without a clear picture up front as to how it is going to address my very specific and increasingly daunting financial objectives. While the necessity of finding high ROI initiatives against which to deploy scarce resources is every bit as critical as ever (if not more so), my psychological and financial "hurdle rate" is now sky high.
But make no mistake-- if you can really make me a hero in front of my stakeholders, I'm more than willing to listen. Just give me the bottom line first, and work backwards from there-- show me (credibly) how you came up with those numbers and take your ticket for the front of the line.
Major investment banks, insurance companies, auto manufacturers and more boarding up the windows and shutting off the lights. Throw in a Madoff Ponzi scheme and a couple of trillion dollar deficits-- it may be enough to make you want to just pull the covers over your head and go back to bed. (By the way, check out NPR's Planet Money podcast for a reasonably succint, yet in-depth look at relevant financial news on a daily basis.)
But you can bet that the smart CEOs are not sleeping in late. They know that now is the time to invest in increasing efficiency and expanding opportunism. Those who are going to weather the storm are going to end up dominating their markets in the end-- and the way to start down that path is to find ways to grab a bigger piece of the shrinking pie.
So my need for a healthy top line and bottom line hasn't changed. What has changed is that I am even less willing than ever to listen to your sales pitch about your products' features (or even benefits) without a clear picture up front as to how it is going to address my very specific and increasingly daunting financial objectives. While the necessity of finding high ROI initiatives against which to deploy scarce resources is every bit as critical as ever (if not more so), my psychological and financial "hurdle rate" is now sky high.
But make no mistake-- if you can really make me a hero in front of my stakeholders, I'm more than willing to listen. Just give me the bottom line first, and work backwards from there-- show me (credibly) how you came up with those numbers and take your ticket for the front of the line.
A CEO's New Year's Resolutions
05/01/09 09:46
So it’s the start of a new year. You’ve got (or will soon get) new quarterly and very possibly new annual quotas. January seems like a good time to set some new goals and refocus on your objectives for the next twelve months. After all, everyone’s doing it, right?
Not necessarily.
To many a CEO or CFO, January 1st is just the beginning of another quarter—no more, no less. As we discussed in the last post, understanding your prospect’s calendar is a baseline component in understanding that prospect’s business. Many companies have fiscal years that don’t coincide with the calendar year. In fact, in many international markets, the fiscal year more typically ends March 1st, making this week the beginning of 4th quarter, not 1st quarter. You certainly can’t afford to be out of synch with your customer by 3 months or more!
For argument’s sake, let’s assume that their fiscal year starts in January. So now it’s safe to assume the CEO is focused on new annual goals and objectives, right. Not really. Any CXO worth his or her salt has been working on this year’s objectives for at least six months. By now, not only are those goals and objectives pretty much set in stone, there are likely execution plans and management reporting systems already up and running.
And do you think any of your client’s goals for this year have anything to do with helping you make your quota? Not on your life. So if your goal is to really bring value and to help your clients be successful (and it should be), you are going to have to find out what they consider “success.” What are their goal? How will they measure progress? And most importantly, what can you do to help?
You can likely guess at some of the answers, but I can guarantee that if you want to make an impression at the C-level that leads to mutual success, you’re going to have to dig deeper—and you may be surprised at what you find.
Not necessarily.
To many a CEO or CFO, January 1st is just the beginning of another quarter—no more, no less. As we discussed in the last post, understanding your prospect’s calendar is a baseline component in understanding that prospect’s business. Many companies have fiscal years that don’t coincide with the calendar year. In fact, in many international markets, the fiscal year more typically ends March 1st, making this week the beginning of 4th quarter, not 1st quarter. You certainly can’t afford to be out of synch with your customer by 3 months or more!
For argument’s sake, let’s assume that their fiscal year starts in January. So now it’s safe to assume the CEO is focused on new annual goals and objectives, right. Not really. Any CXO worth his or her salt has been working on this year’s objectives for at least six months. By now, not only are those goals and objectives pretty much set in stone, there are likely execution plans and management reporting systems already up and running.
And do you think any of your client’s goals for this year have anything to do with helping you make your quota? Not on your life. So if your goal is to really bring value and to help your clients be successful (and it should be), you are going to have to find out what they consider “success.” What are their goal? How will they measure progress? And most importantly, what can you do to help?
You can likely guess at some of the answers, but I can guarantee that if you want to make an impression at the C-level that leads to mutual success, you’re going to have to dig deeper—and you may be surprised at what you find.
