Like it or not, it’s past time for all of us in Corporate America to move forward and map out a game plan for 2010. I suspect that this will be a welcome, albeit difficult, task for many, given the economic challenges that occurred over the last 12 months. However, there are still some companies out there that believe the state of the economy will determine their success, and while that premise might hold true in certain circumstances, organizations will have a greater chance of failing when they do not prepare for what lies ahead.
Taking a back seat is simply not an option. Recession or not, businesses can most certainly take steps to influence their destiny. At my company, Red Door Interactive, we’ve learned over the course of our existence that preparation is the key to success. The earlier you map out a plan for the upcoming year, the more organized and ready you’ll be when the ride begins. So for those of you who have yet to start, consider these strategies to help give you a strong start in the New Year:
Look ahead by assessing the past – This is a great means to determine what worked in 2009 and what needs to be improved. Although many companies struggled at no direct fault of themselves, there were undoubtedly financial, human resource, operational and marketing initiatives conducted over the past year that could be improved if they are to meet expectations for next year.
Develop a specific list of target customers to pursue – This is an important exercise of outlining quantifiable revenue goals for the coming year. For instance, we’ve created a list of target companies to go after, and devised a plan to successfully do so.
Map out a schedule of events – If your company hosts webinars, customer appreciation events, speaking engagements or other such initiatives throughout the year, determine early on what topics you’ll cover in 2010. Poll employees on issues that are relevant to them and would be interesting for others. For example, at my company, we have an intranet where employees frequently post blogs, and have discovered that some of the best ideas come directly from our staff. Find out what your team members are passionate about because chances are pretty good that other folks with an interest in your field will enjoy the topic as well.
Determine what resources are needed – It’s a good idea to understand where you believe resources will be most utilized and provide support accordingly. If one area of your business is expected to grow, for instance, start determining how you will scale for that expansion if it occurs. If your company is looking to hire additional employees, focus on creating strategies to recruit talented folks. For example, my company is expecting to grow in numerous ways in 2010 and our goal is to recruit the best talent out there. To prepare for this growth and keeping with its popularity, we’ve created a @reddoorjobs Twitter account to assist us in our search. Whether your business plan is working well, these need to be revisited annually in order to prepare for any unforeseen events that may arise in the coming months.
Above all else, companies and their management team must remain open and flexible to new ideas. Just because you create a plan of attack now doesn’t mean that it can’t be altered throughout the year. In fact, chances are pretty good that it will be revised on more than one occasion based on new developments. But here’s the main point – simply letting external factors determine your future and not preparing for the coming months will be a sure fire way to guarantee that your company will not live up to its potential in 2010. Going into the year with a game plan will create a sense of excitement that you’re ready to start off with a bang.
It seems that not a day goes by that I don’t read about another once highly-regarded magazine or newspaper filing Chapter 11 or closing up shop. I feel sad, yet somewhat responsible, for its demise like so many other well-known and long standing periodicals. While I’ve enjoyed many of the now-defunct periodicals, I may have mentioned an article to someone only from time to time.
I now realize that I never advocated for the products, and may be partially responsible for their demise.
There is a new obligation for the consumers and entrepreneurs now that social media has transferred ownership of brands to the masses, and that means companies and brands can no longer be expected or capable of promoting their value all by themselves. In short, we as consumers and partners need to speak up, and no longer take for granted that magazines – or any media program for that matter – will go on in perpetuity as we passively enjoy their product.
Now here’s the good news - the now popular social media feedback movement gives magazines the opportunity to listen and publicly respond to customers, to being transparent and to being consistent. Like all good companies, some forward-thinking publishers have made this initiative an integral part of their corporate culture and a key component of their marketing, sales and customer service functions.
But that’s not good enough. Readers must become raving fans, and be ready to tell others how much they love the magazine. What’s more, when a consumer doesn’t like something or disagrees with a media outlet’s approach, they should also embrace the democracy of social media and communicate their displeasure, though not in a vengeful way as it will damage its long-term viability just as some of the heavy-handed practices of corporations damaged theirs.
So moving forward, I’m calling for a new approach – to not sit on the sidelines as we witness the loss of our dearly-departed magazines, but do something to make sure they survive and thrive. It’s in our interest and power. While I’m on the subject, let me formally make a plea here -- please don’t take away my Mental Floss magazine (www.mentalfloss.com). It feeds my need for useless trivia answers and fills obscure corners of my memory with interesting facts, figures, irony and history. Try it and tell everyone what you think.
As a frequent attendee of local marketing association events, I am perplexed by the occurrence of regular, prevailing discussions that focus more on areas such as the best use of social media and less on aligning the campaign’s goals and metrics with that of the corporation as a whole. The days of such practices are numbered to say the least.
The old adage is true – if you don’t know where you’re going, how will you ever get there? Good campaigns focus on developing impactful, creative and powerful messages that generate expected, desired and measurable calls to action. This is where many marketing agencies fall short; determining the success or failure of a campaign must be based upon a clearly defined set of quantifiable and relevant business objectives. A Business Leader First, A Marketing Expert Second In effectively measuring the value of campaigns, marketing agencies must recognize that they are business managers first and marketing professionals second. Before any tactical initiatives are drafted, the account team must thoroughly understand their clients’ plan for the initiative in question, such as a product or service launch. Secondly, the agency must have a working knowledge of the established goals for their counterparts in sales, product management and other relevant areas. This is critical; only by understanding each business unit’s objectives will marketing agencies be able to align programs and resources to support its goals.
Lastly, firms must also clearly be aware of how the organization’s executive team measures success. While sales may be the most frequent answer, other aspects of the business may also be as valued, such as:
Profit margins,
Distribution and technology partner agreements,
Investor interest,
Rate of customer acquisition,
Strategic product roadmap,
Average sale price per customer and so on.
Marketing agencies will fail to realize true success if their evaluation differs – or worst case contradicts – the criteria of the organization as a whole. Align Your Promotion Campaigns Accordingly With the business goals identified and understood, most marketing firms will create tailored messaging for each audience segment they target. That’s certainly no surprise. However, many will stop at just understanding the unique communication barriers of each group and not what will get them to respond in a way that supports the established objective. For a campaign to reach its strategic goals, agencies must understand the interdependencies of each stakeholder group – such as decision makers, influencers and end users – and how their organization can solve their specific problems or needs, and how to get them engaged in the discussion.
Change For The Better Marketing agencies that embrace the need for their efforts to be measured based on their impact to a company’s business goals will realize greater client acquisition, retention and referral rates. Moreover, firms will also find themselves spending more time in the strategic service of their organizations, and less time explaining its value. In essence, marketing agencies can commit to achieving results that matter – and reap the rewards as a result.
Just because there is no one selling ice to Eskimos doesn’t mean you should enter that market. Conversely, a competitively crowded industry just means there is demand for it. The key to succeeding in a crowded industry lay within your company’s ability to do something different or present yourself differently.
There are so many ways you can differentiate yourself in a crowded marketplace. To name a simple few, you can choose to sell to different people, such as small businesses; you can find new distribution channels; you can stratify the industry’s price points by introducing a luxury class; or, you can redefine your selling proposition – for example, Starbucks sells “experience” rather than “coffee.” However you choose to be different, you need be great at the basics and be exceptional at your defining factor. The key here is to know who you are and who you are not. Don’t conform if you know you’re right; a true customer mind-shift will take time and education; be patient (and listen).
To know how to be appropriately different, you have to know your customer and their expectations. Discover their baseline needs or expectations to be considered and make sure you cover those as well or better than other options they can find, but then go beyond that and understand their environment, their job, their experience and their pain. Shake up their expectations by providing them something they didn’t know they needed or wanted. Ideally, you reset your customers’ expectations to match your offering where ultimately they want YOU, rather than a widget that any of your competitors can offer.
On the flip side, there are many reasons not to enter a competitive market, but entrepreneurs must not break the cardinal rule when doing so – playing by a rival’s rules. New entrants must change the ground rules by openly challenge operational, customer and service assumptions through calculated risk-taking measures. The old adage is true; build a better mousetrap, and the world will beat a path to your door.
Many examples of unsuccessful “Me Too” companies exist – the early days of the dot-com era were littered with such firms. It’s a common tale, particularly in the infantile stages of a new market opportunity. Entrepreneurs will, at times, feel like it’s anybody’s to win, so long as they can sign up customers faster than the next guy. While that may be true for some low-hanging prospects, it will soon come down to what firm has the better offering. Make no mistake – over time, people will pay only if they see a value they perceive is better than someone else.
There is often no better business opportunity than entering a crowded market. It has demand, therefore revenue and it has available market-share (you just have to take it). I would say that there are very few category leaders out there who hadn’t entered the market until others had already done so. To be successful, you just have to know more than the next guy and then differentiate yourself. Aim for nothing less than excellence.
My last blog post discussed the need to look at interns as potential full-time hires, and integrating them more in the daily operations to get them the experience they need while providing employers a true opportunity to evaluate their capabilities and potential. While some organizations my respond with an “easier said than done” attitude, I submit that it’s not only necessary, but very much doable.
At my company, Red Door Interactive, an Internet Presence Management agency based in San Diego, we have partnered in the past with area university students to create an “incubated,” pro-bono project team made up entirely of marketing and business interns.
The “Ground Floor at Red Door” group consisted of seven student team members, each with their own agency counterpart, who acted as a mentor through their process. These individuals were assigned creative, graphic designer, advertising/promotion, technical programming and account management roles. The program was divided into four phases: Discovery, Strategic Planning, Creative and Development. The objective was to provide the students with a unique, structured learning experience that gets them through an interactive project from start to finish. The interns were given Red Door Interactive’s entire set of resources from which to draw upon, including tools and staff members, in order to better understand how a real-world project would play out within an active agency. Additionally, the project also provided the students something a practical example for use in their resume portfolio once they begin looking for a job after college.
We then selected a non-profit organization to service in order to remove any perceived conflict of interest that we were using these unpaid resources for profit. This initiative fell in line with Red Door Interactive’s corporate culture, as we have regularly provided pro bono services to worthy causes in the past. In this instance, the Ground Floor team spent the summer developing a Web site and media marketing plan for a local non-profit, Bionic Golf that teaches golf to handicapped youngsters.
The expectations at the outset were that the interns will get a chance to work on this project in addition to day-to-day tasks and duties within their various agency departments that may include typical intern-type work. We believed that doing so would give them exposure to various staff and agency lifestyle – including both work and after hour social events. We also believed that this experience would help the students build their own professional network while, at the same time, allow us to get a feel for the next generation of talent.
As is the case when an organization empowers others to achieve a stated objective, the Ground Floor team exceeded our own expectations. In about 10 weeks, the interns created a Web site for Bionic Golf that, without question, provided a more interactive and valuable marketing tool to attract volunteers, sponsors and participants. The associated media plan was also a comprehensive – yet usable – roadmap that the non-profit’s management team can implement to increase their awareness and business goals even further.
The feedback we received from students was powerful, as many expressed gratitude and pride for being able to obtain the hands-on experience they lacked from other projects. Equally and rewarding was the response we received from our full-time staff, who were able to exchange ideas and suggestions, often times coming away with new strategies and tactics to use for our existing client bases.
For Red Door Interactive, Ground Floor was one of the most worthwhile ventures we’ve undertaken, will most definitely continue. For other organizations, I challenge them to come up with similar ways to integrate interns into their day-to-day sales and marketing activities. Rethinking their role in the workplace will enhance their experience and your return of investment.
Many of us remember our internship programs during college as little more than a "check in the box" toward graduation credit and, if we were lucky to get a paid one, some pocket change to cover the occasional t-shirt purchase at the university book store. Back in my college days as an advertising major, I rarely heard of any fellow classmate ever receiving valuable hands-on experience while interning at an agency, other than being a small fly on the wall watching the full-time staff members at work.
The problem is that many organizations view undergraduate students as under qualified to do more than administrative "busy work," and that the only option, therefore, is for them to give them the opportunity to simply see how the so-called professionals go about their day-to-day operations. Herein lies the dilemma -- companies that believe college interns are ill-prepared to handle the more complex taskings within their organization create this self-fulfilling prophecy by NOT integrating them more into their process.
As managers and business owners, we have both the opportunity and responsibility to assimilate internship programs more with current operations for a host of reasons. The benefits to the students are immediate and tangible. Not only do they receive more real-world experience, but a more comprehensive understanding of what type of sales and marketing strategies work under certain circumstances. This can also help the student tie in their academic curriculum more, making the classroom instruction less abstract.
Additionally, interns can gain a greater appreciation for their work and skill sets acquired that will ultimately help in their transition to the full-time workforce after graduation. Students are often times hampered in obtaining good-paying jobs once they leave the university setting due to a lack of practical experience. Even those that highlight internship programs they did on their resume fall short when pressed by the hiring manager for examples of their work. Integrating them more into day-to-day operations would greatly enhance their preparation to enter the real world.
For agencies and organizations, rethinking their internship programs would add both immediate and long-term benefits. Companies can optimize their internal resources more effectively by utilizing this temporary talent pool for more direct client support instead of simply "creating" administrative stuff for them to do. While there will undoubtedly need to be some hand-holding in the beginning, interns who were hired for their initiative and creativity will catch on to processes and procedures quickly and become a value-add to the team.
Moreover, organizations get a much better feel for which student will make for good hires upon graduation by integrating them more in real work. It's not uncommon for a company to not know an intern's true potential if they relegate that individual to more mundane tasks for the period of time that they have them. Even if a company doesn't have a specific job opening in the future, making students a more valuable part of the team will increase the competency level of the sales and marketing industry as a whole, and that's a benefit we can all share.
Coming in Part II: How to do it - Incubation at the Ground Floor
When starting a company, business owners create a list ofgoals they want to accomplish. Some are heftier than others, but the biggest milestone a company can achieve is consistent growth combined with healthy profits. There are many ways to do this including doing it organically, but one option we chose was to acquire a company in a different geographic market or be purchased by an outside organization.
A year ago, my company, San Diego-based Red Door Interactive, acquired Breckenridge Communications, which was headquartered in Denver. Both firms felt that the timing
was right, and I believe we’ve set up this new growth initiative for long-term success. However, history tells us that most acquisitions end up failing to achieve their original goals. So before other companies integrate, here are five critical points I
feel organizations must consider before signing the next term sheet that crosses their desk.
1. Determine your value proposition
When deciding where to expand, companies need to find out if their services are unique and valuable within the prospective markets. Denver was an attractive prospect for Red
Door Interactive because no other Internet Presence Management firm existed in the area. While there were several interactive agencies in town building Web sites for clients, we felt Red Door’s comprehensive online strategies that focus on ensuring that organizations will profit from their Web initiatives was a compelling competitive advantage.
2. How to replicate the business model
Attempting to take a formula and transfer it to a new city can be a daunting, but necessary, task to ensuring a successful acquisition. It’s essential for an established, successful model to be secured and a new destination be selected where it has the ability to flourish.
In our case, we spent almost seven years fine tuning the Red Door Interactive business model in San Diego with the intent on expanding it into new markets. Breckenridge Communications saw the benefits of increased efficiencies and profitability by adopting the processes for the Denver market,
so integration was not only possible, but welcomed by all parties.
3. What to look for in a partner
When searching for a company to acquire, we had to closely examine the team, even more so than its client base. Finding people who could embrace and foster the company culture was a necessity in order for the acquisition to succeed.
To that end, we needed to focus on the experience of team members to ensure their skills and personal philosophies were compatible with Red Door’s mission and core values. We found Breckenridge Communications and Red Door Interactive’s team members held complimentary skill sets while
possessing very similar work ethics. I feel that acquisitions tend to fail more often because of the incompatibility of both organizations’ cultures. We had to make sure that was not the case with us.
4. Build versus buy – what makes more sense
When considering an acquisition, both parties involved may wonder if it’s better to simply grow organically than to integrate into another firm. In our case, we had a variety of reasons why acquisition was the best approach.
Among those reasons was local knowledge. Breckenridge Communications’ experienced team of five had been working together for years and possessed extensive current market knowledge that Red Door Interactive found much more beneficial than to simply uproot a team well-versed in the San Diego market to the Mountain West. At the same time, Breckenridge believed that
Red Door’s added financial and operational support positioned them well in meeting their own expansion plans.
5. Commit to the end result
Growing a company in a new market can be a challenging – yet exciting – process with many benefits to offer.The negotiation phase was not one of them for us. When going through the acquisition process, I learned that it’s important to believe it will work and commit to it. There were certainly bumps along the way, but we react to those challenges and respond to
them as we naturally do: We keep focus on the end state and work toward the vision By maintaining a focus on the desired outcome, we were able to, rather than write something off, make it work.
Hiring in this environment, I have to say, has been an experience unlike any other I've witnessed. My company, Red Door Interactive, is one of the lucky ones that have needed to fill new positions in order to keep up with our continued growth. However, a lot of the applicants have shown, and I feel to their misfortune, a certain element of desperation.
As understandable as that may be, I believe that level of anxiety is detrimental to both the employer and employee. I still proclaim that the right job and person for everyone and every organization is out there - or at least will be in the near future. The key is to avoid falling into the same pitfalls as others to ensure that both the applicant and employer are a good fit for one another. So before the next job interview is offered or accepted, I submit the following observations:
Stay at the right level
I'm of the strong opinion that this market is neither "an opportunity" for companies to take advantage of higher-level talent willing to work below their market value or one for potential employees to settle for less-than-challenging positions just to hold down a job. I know that if we hire someone for above the level we're looking, they're out the door as soon as things turn around. Additionally, there would always be a chip on that person's shoulder that said "I took a pay cut for this."
Focus on the right job
There are swift ways for someone to show that they are just looking for a position rather than a copy or career. An individual who applies for every open job a company advertises or fails to tailor their resume or application to the specific opening for which they're applying is a dead giveaway. Yet some companies feel that a person who does this is simply showing their willingness to do anything for the organization. In fact, the opposite is true; that the candidate most likely has very little understanding about what area of the company is most appealing to them.
Don't worry about gaps
Many employers are too critical about gaps in a person's work history, particularly in this economy where finding the right position while in transition may take longer than in years' past. In that same light, individuals should not be afraid to show them on a resume. Instead, I'll often look at how a candidate has kept up with the industry during those periods of time with things like attending relevant workshops or volunteering their time with quality trade organizations. Doing so illustrates their passion for the business as well as their drive for continued learning; two things we value highly at my company.
Keep your eye on the long run
Hiring and job hunting practices should never shift due to the prevailing economic winds; for such practices will be much more costly to both employers and employees. Rather, both parties should, first and foremost, remain true to their skills, values and goals, and select the right position or candidate for those reasons. Recessions will come and go, but companies and solid performers will continue to prosper if they keep a focus on what's best for them over the course of time.
Undisputedly, employees are the most precious asset of a company. So it’s vitally important for organizations to recognize and communicate their value in a variety of manners. Some ways include giving them public attention while other methods could mean offering a quick, personal “kudos” or simply letting them know that they’ve got a team that has their back. These displays of appreciation can be the incentive staff members need at times to take things to the next level.
While I’ve made it a point to highlight certain individuals for specific instances where they performed well, there are a litany of occasions where everyone from top-management on down do little daily things that add up to a big positive impact for the company in the long term. We try to celebrate those achievements just as often. That’s why it is a priority to instill a culture of “thank you” in our organization. Doing so recognizes the efforts people give on a regular basis and helps increase employee satisfaction, morale and performance. To that end, we’ve implemented the following five tactics in order to show frequent gratitude towards employees:
Expo
Often when a company is so large that it encompasses different departments, not everyone knows what’s going on or who’s doing what. To help keep folks on the same page we’ve implemented the monthly “Expo,” where employees have an opportunity to showcase their work to the entire company. Dedicating a few hours on a routine basis to highlight their projects is a great way to praise staff members.
Ring the Bell
Observing company or employee wins should be done on the spot and publicly. We’ve found that incorporating a physical bell in the office and using it to salute those who have hit a milestone, personal victory, project completion or new client win provides a quick “Hooray” for the people involved. Following the bell celebration, a company-wide email is distributed
to inform everyone of the event. Implementing a strategy that recognizes employees on the spot directly boosts company morale and encourages others to perform at high levels to gain similar recognition.
Personal Notes
In today’s world, many folks prefer to do all of their communication via email because of its convenience and speed. However, I’m a strong advocate for taking a few extra minutes to write a personalized, handwritten “thank you” note to acknowledge achievements. Not only is this tactic a friendly gesture, but employees appreciate the extra effort put forth to single out their work and are motivated to continue along the same path. We provide cards to all the managers to make sure they’re always ready to write.
Mad Props
Acknowledgement should come from all levels, and it’s important to create opportunities for team members to recognize and thank each other. For example, we’ve created “Mad Props,” a place on our intranet that is the first thing staff members see when they log-on. This page provides an outlet for employees to offer shout-outs to others, and is an easy way to show appreciation to a peer, subordinate or supervisor. I’ve been told countless times how happy team members are when they see their name and picture posted for the rest of the company to view.
Tokens with Meaning
Providing a small symbol of gratitude is always a nice way to thank employees for performing above and beyond. For example, at Red Door, we’ve implemented Business Initiative Goals, “BIG,” where staff members are awarded with coffee mugs each quarter to acknowledge their contribution in helping the company achieve a specific initiative. The focus isn’t on the gift itself, but rather the celebration of specific achievements.
Identifying and supporting little wins or good work of employees is crucial to maintaining a happy office environment and it’s important that everyone participates in the process. Not only does thanking one another for their hard work need to stem from all levels of the organization, but being specific about what talent or accomplishment is being recognized and to mention how it has benefited the company is equally important. Implementing strategies and providing simple tools to thank staff and help them highlight one another’s achievements are the best ways to promote a culture where everyone gives thanks to those who deserve it.
I read a lot about leadership principles for managers. In most cases, the books and articles I look at refer to the responsibility of the CEO or upper-level manager. Clearly, employees turn to their managers for leadership, however often other folks crop up as leaders of many of the important intangibles within a company. For example, whenever a happy hour is organized, you can be sure the same few people are leading the charge. People follow them not only because they know the way to the bar, but because they’re the ones putting forth the effort to socialize with team.
The intangibles, I feel, are what sets Red Door Interactive apart from a lot of other small organizations. Provided we and our competitors have vision, passion and the ability to execute, there are elements such as brand voice, social responsibility, morale and culture and other aspects that make the company “who we are.” That can only happen through leadership at every level of our company. We have a project manager who inspires passion in others to join a cause, we have a designer who organizes all-company lunches or we have a programmer who kicks up the music in the office when it is time for a beat. They are not managers, but others, including managers, turn to these people consistently for that guidance, inspiration and direction (which are critical leadership qualities).
Over the years, I’ve come to fully appreciate the leadership roles others hold at Red Door Interactive, and think other CEOs may fare well by cultivating and supporting them in their own organization. There are a few things I’ve found helpful in developing such people, and I offer them here for reflection and discussion:
- Leaders are at all levels of the company: When I speak of helping people take on influential roles of our company, most assume I’m referring to my direct reports; those responsible for one or more of Red Door Interactive’s business units. That’s only partially true. In fact, I’ve found that depending on the circumstances, virtually anyone can be a leader given the right scenario. The key for me is to identify those with potential and desire and then help them grow in those specific instances.
- Leadership needs direction: Some people are inspired to take action when they feel they can make a difference. My responsibility is to help make that leadership productive, consistent with company values and that it supports our mission. This requires up-front and continual (often repetitive) communication about the priorities and values of the company to internal and external stakeholders.
- Leaders have strong opinions: If possible, I try to get feedback on strategic ideas or other company-related initiatives with key folks in the company before putting them into effect. That’s because I realize that employees will look to them for their buy-in on a new idea or policy before they commit themselves. If I don’t have their support, I may find it difficult to get everyone else’s.
- Be supportive, not directive: As Red Door Interactive has grown, I’ve learned to delegate (which is another subject altogether). eThat means when fellow leaders come to ask me a question, often times they’re just looking for a “sanity check,” and not for someone else to make the call. must be careful not to be too authoritative because it will only stifle creativity and growth.
- Hire both leaders and role players: We’ve been fortunate enough to grow in double digits for several consecutive years now, and that means bringing additional team members aboard. I’ve found myself selecting new employees for their leadership potential, general intelligence as well as the skills sets needed to do their specific jobs. Doing so pays big dividends in the long run.
I still take responsibility for the company’s performance, but the only way we can remain on the same growing trajectory we’ve experienced over the last several years is to hand over a lot of areas of leadership to others. I take into account the perspectives of those who have assumed leadership roles at Red Door Interactive, and look for their input, ideas and buy-in before we set a plan in motion. And, more importantly, I look to them to enact plans and ideas of their own. Supporting others to spearhead those areas will ensure our success for years to come – and that’s good for everyone!
