Monday, October 20, 2008

How to Make A Big Change Happen: aka Making Elephants Dance

Part 1 Realizing Just What You Are In For
[This is going to take a few installments.]


Making elephants dance is no trick for amateurs. Neither is making a major organization change such as introducing SAP or any other "big thing."


So how does it happen without running off the talent, tanking the company, or giving the competition the break they were looking for?


Does one just bear down harder?
Make threats?
Promises bonuses if everyone will just wait and see if this bird will fly?
Make more threats?


Or trust in that tried and failed strategy called: "Hopium".


A big change or project is [really is] a big deal.


Most M&As fail: more than 60%. Bean counter's dreams of that bottom right cell on the spread sheet never quite come to fruition. The investment bankers who sold M&A have long ago ridden into the sunset in their new hot cars. You are left with what's left. Grief, pain, and yet-to-be-realized expectations.


And that last word, expectations, is where we are going to start.


Yep, after the "vision" has been surveyed and savored, after the dreams of "hopium" have swirled away, what we have left are expectations.


There are two kinds of expectations from two kinds of people with which one must contend.


First the expectations. There are those which have been spelled out in the agreements, contracts, press releases, technical specifications.....and those which have been omitted but continue to be held but which still will come into play when determining if the project and you were a success or.......or the reason you are now out of the loop and pursuing special projects, leaving to spend more time with your family, or just unavailable for comment. You thought you won, but somehow there was no ticker tape parade.


Next the people. There are those involved in the deal: the merger team; the action squad; the raiders; the project team; the red team, blah, blah, blah. All those people who are in the know, hope they are in the know, want to be in the know. And then.....and then there are people who are organizationally above you them and beside you them who form the contextual interface.


Ignore them and the change will fail.


But you ask, how can a project or big change be measured on anything but stated objectives, agreements, tech specs, ROI, measured progress, etc., etc., etc., etc. Silly rabbit!


Check the next post, Part 2, and I will start walking you through how to make a "big change" and use strategy and tactics which have worked and will work...and much better than furrowing one's brow, working longer hours, and searching for that elusive hit of "hopium."

Note: the actual field data used to generate these conclusions is based on the authors work as senior consultant with www.Bechtel.com, Proctor & Gamble www.PG.com, the Williams Companies www.Williams.com, www.ExxonMobile.com, the World Bank www.WorldBank.org, the United States Trade and Development Agency www.USTDA.gov, and Chief of Party at the United States Agency for International Development www.USAID.gov.


Note: If you would like a copy of the full article, please send me an email so requesting.

Commandment Three: Use Direct Response

Commandment Three: Use Direct Response Advertising to Grow Your Business
[See special note at the end of this article.]
There are two kinds of response advertising according to M.J. Stoddard: direct and indirect.

What are they?

Indirect response advertising seeks as it's first priority to build awareness.

Direct response advertising seeks to gain a direct response from the customer to the business.

Let me explain as both are useful and employed around the world. Before I explain it is important to realize that product distribution channels availability helps determine whether direct or indirect advertising is used.

If every corner grocery store is able to carry your product then your object is to create an exhilarating awareness in your customer so they will feel compelled to run down to the store and buy your product. That is when indirect advertising works very well.

On the other hand, if you have 10 dealers in the US who sell your product but have little walk in traffic and rely on sales people to go out and get sales, then you would select direct response advertising to your customer to drive them into those 10 dealerships. The sales force will gather some of the customers but not nearly all that are available.

Also if you are introducing a new product, you will be seeking both customers and dealers. You have no choice but to advertise direct. Dealers will come after customers. Dealers tend to be skittish about new products. Dealers are not the first to work with a new product, the customer is.

In direct response marketing you want....a direct response from the customer. That means a phone call or a customer walking in your door or the dealers door. You want the customer to take the action you are requesting. You want much more than awareness. You want action.

After customers are established then willing dealers line up to cash-in on your efforts. That's good. When the product starts to fade [and EVERY product has a life span] then dealers are the first to dump your product even though some customers will remain. That's bad, but that's life. Study product life cycle for more on this subject. [Companies are also subject the same life cycle especially when they are built around one product or service.]

Use AIDA!
In direct response subtly is fails. Your advertising will not likely win awards, but it should win customers and sales. Awards are won by ad agencies who do indirect response ads. When you develop your direct response program a failure to use AIDA guarantees a failed marketing program.

What is AIDA: Simple!
Attention: you must grab your customers attention
Inform: you must tell your customers exactly what this products or service will do for THEM!
Desire: you must generate a positive emotion in your customer while informing them about your product or service. It doesn't matter if you are selling nuclear reactors, steel, coal, or lipstick....no emotion or desire = no sale.
A: Ask for the sale and get the money. First three rules in business I learned in the Middle East are: 1. Get the Money, 2. Get the Money, and 3. Get the Money. To get the money you have to ask for the sale.

[My brother M.J. teaches fledgling opera singers in the US and Europe how to grow their wings and fly; he came up with this apropos acronym.]

Funny story about asking for the sale. I was ready to pop the matrimonial question to my wife and I said this: " I would sure like to marry you." She said nothing. And nothing. And after ten minutes still said nothing. Suddenly it occurred to me that I had NOT ASKED her to marry me. I quickly recovered and asked. Immediately she said yes. I asked what happened, she told me she wasn't sure if it was a proposal or just a general comment. Zounds what a fool I was.

Remember, always ask for the sale. You are NOT there to make observations or general comments about business.

Next, unless your are Coke or Ford, a direct response marketing and advertising better be the objective of your ads.

SPECIAL NOTE: If you would like the other 7 Commandments send me and email and I will send you the whole article.
Cheers!