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Thursday, March 31, 2011

Where is the path in Continuous Improvement for Sales and Marketing?

In the sales and marketing process we have always stayed away from a process. Things were just not consistent enough to enable us install a process. Very few people take on the challenge of bringing continuous improvement to sales and marketing and one of the reasons it is so difficult is that sales always has been about relationships and people. And when you are a “people person” you blame errors and faults on people not the processes. You just don’t consider a process at all. I would argue that you cannot improve a system without a process and that sales and marketing does things within the boundaries of a process.

In fact, I am going to paraphrase the Six Best Practices Business executives handshaking after striking a business dealoutlined in a book by Daniel Stowell, Sales, Marketing, and Continuous Improvement . And if you would like to know how large of a gap we have to close to bring continuous improvement to Sales and marketing read the one review on this book: “The author couldn't lead a fly to cr*p, and the book is poorly written. Don't waste your money.” Quite a significant gap because I think the author considering it was written in 1997 lays out a good guideline.

The Six Best Practices needed:

Manage for change: Change, whether incremental improvement or radical restructuring, does not just happen. It requires leadership and management based on a foundation of a lasting commitment by everyone in the organization. Of all of the best practices, management commitment stands alone at the top of the priority list.

Listen to Customers: Sales and marketing need input from their current and past customers, prospects, and competitive users on which to have their continuous improvement activities. To be most effective, they need to use several complementary listening methods tailored to their specific customer set. Although listening to customers appears to be easy to do, there are pitfalls and barriers along the way. However, the input from listening will provide the requirements and feedback that they need to implement the other best practices. Without that information, they are just guessing.

Focus on Process: Leading companies have applied all five of these process improvement techniques to sales and marketing processes. As we have seen, when process improvement techniques are focused on the most important processes and used properly, they can make dramatic improvements in an organizations effectiveness and efficiency.

Use Teams: Teams are not appropriate for everyone or in every situation, but virtually every organization can benefit from expanding its use of teams. This is especially true of sales and marketing departments. They can apply teams in almost every combination of scope, size, mission, authority, and duration. These teams build on the synergy of the team members, improve communication and buy-in, increase productivity, raise employee morale, and provide a forum for personal development. To achieve these benefits from sales and marketing teams, organizations must be prepared to address both the critical success factors and the issues unique to teams in sales and marketing. When they do, they have taken another major step toward an open organization culture.

Practice an open Organization Culture: To be effective, all the elements of the open organization culture must be used together. Gathering information by practicing awareness and taking a global view is of no value if the organization does not share the information or take informed action. Reserving action for the top of the business does not support fast response or take advantage of the skills of the people who really get the work done. Taking action without questioning the organization's underlying beliefs and assumptions may lead to repeating mistakes. It is when all the elements of an open culture work together that an organization becomes more effective and efficient, whether that organization is an entire company or a sales or marketing function.

Apply Technology: Of all best practices described in this book, applying technology is today’s most visible. It has reached this status within the past five years and it appears that it will continue to revolutionize the way customers buy and companies sell in the future. That makes it important to stay aware of changing technology, looking for ways to use it to address opportunities and resolve problems. It is the companies that find ways to use technology, frequently ways it was never intended to be used, that will create and maintain their competitive edge. The others will just be playing catch-up.

His book lays out a good foundation for the above practices. Granted it may be dated but it reinforces not so much the ideas that I have been writing about but just how wide of a gap that we have bringing continuous improvement to sales and marketing. To have a chance resides in the power of Deming's concept and its simplicity. The concept of feedback in the Scientific Method is firmly rooted in education and well understood. The tools used in PDCA process are very visual and deceptively simple to start with (as you understand them, they tend to get harder ;)). And for the “people person”, Lean is all about people; training, empowering and respecting.

Related Posts:
Understand Scrum, Understand Implementing PDCA
Why does sales and marketing operate to a different quality standard?
The Future of Marketing is Lean
Why Lean Marketing? Because it is the Future of Marketing …
PDCA for Lean Marketing, Knowledge Creation
Lean Marketing Creates Knowledge for the Customer

 

Wednesday, March 30, 2011

Becoming an Agile Family thru Personal Kanban

Maritza van den Heuvel. a Certified Scrum Master and Certified Product Owner has been part of a software development team changing from waterfall to agile over the last three years, first as lead tester and now as the Product Owner. profile pic kirstenboschShe is also a mom, with the ongoing challenge of keeping family life organized with her husband – from arranging kids’ activities and school stuff, to planning out financial goals and priorities.

Maritza took that agile work experience where she was introduced to Kanban home one evening and the rest is history. She is one of the most devoted of all Personal Kanban users. Her Becoming An Agile Family blog is excellent and if I have one complaint is that she does not blog often enough.  I take great tips away from it to use in a one chair consultant practice. 

Personal Kanban is neither a prescription nor a plan. The book provides a light, actionable, achievable framework for understanding our work and its context. This book describes why students, parents, business leaders, major corporations, and world governments all see immediate results with Personal Kanban.

Related Posts:
PK Flow – What is it and Why Use It?
Personal Kanban Website
Keeping it all together with Personal Kanban
7 Habits, Getting Things Done and now, Personal Kanban
A Strategic Collaborator’s use of Personal Kanban

Tuesday, March 22, 2011

Why does sales and marketing operate to a different quality standard?

After reviewing the new edition of Juran's Quality Handbook: The Complete Guide to Performance Excellence 6/e,  I wondered why companies hold the entire company to such a high quality standard but leave Sales and Marketing off the hook. Technological measures of quality has existed on shop floors for many years, but measures of quality have not existed in sales and marketing. It has been difficult for organizations to recognize this need as they lacked the necessary alarm signals.  As an increasing number of companies become commoditized and market share dwindles, these alarms are going off all over country. It is simply a lack of demand.  

Round stamp with text: QualityThe good news is that the methods, tools and know-how now exist to use quality in your process to drive market share and increase revenue. Sales and Marketing needs to become part of the quality process within your company. not only to improve their own methods but to lead their companies out of this dilemma of surviving in an economy of an overabundance of supply. However, what’s not in place is the culture of continuous improvement and the ability to understand the changing perception of customer value.

In the new Juran Quality Handbook they listed the lessons learned by organizations that were successful in their quality initiatives. Their analysis showed that despite differences among the organizations, there was much commonality. These common strategies included the following:

  1. Customers and quality have top priority. Thus customer satisfaction was the chief operating goal embedded in the vision and strategic plans. This was written into
    corporate policies and scorecards.
  2. Create a performance excellence system. All organizations that attained superior results did so with a change program or a systematic model for change. This model enables
    organizational breakthroughs to occur.
  3. Do strategic planning for quality. The business plan was opened up to include quality goals and balanced scorecards, year after year.
  4. Benchmark best practices. This approach was adopted to set goals based on superior results already achieved by others.
  5. Engage in continuous innovation and process improvement. The business plan was opened up to include goals for improvement. It was recognized that quality is a moving target; therefore there is no end to improving processes.
  6. Offer training in managing for quality, the methods and tools. Training was extended beyond the quality department to all functions and levels, including upper managers.
  7. Create an organization-wide assurance focus. This focus is on improving and ,ensuring that all goods, services, processes, and functions in an organization are of high quality.
  8. Project by project, create multifunctional teams. Multifunctional teams, adopted to give priority to organization results rather than to functional goals, and later extended to include suppliers and customers, are key to creating breakthroughs in current performance. They focus on the “vital few” opportunities for improvement.
  9. Empower employees. This includes training and empowering the workforce to participate in planning and improvement of the “useful many” opportunities. Motivation was supplied through extending the use of recognition and rewards for responding to the changes demanded by the quality revolution. Measurements were developed to enable upper managers to follow progress toward providing customer satisfaction, meeting competition, improving quality, and so on. Upper managers took charge of managing for quality by recognizing that certain responsibilities were not delegable—they were to be carried out by the upper managers, personally.
  10. Build an adaptable and sustainable organization. Quality is defined by the customers. Customers are driven by societal problems. Quality now includes safety, no harm to the environment, low cost, ease of use, etc. To succeed, all organizations must focus on attaining sustainable organizations.

You may consider your organization is doing many of these things very well. I challenge even the most successful companies to rate their sales and marketing by the same standards. What would you find? Just citing one area, do you measure improvements of processes, or do you compensate people? These ten strategies are possible in sales and marketing. However, quality improvements are seldom obtained without a methodology.

This is why I believe the Future of Marketing is Lean!

Related Posts
The Future of Marketing is Lean
PDCA for Lean Marketing, Knowledge Creation
Lean Marketing Creates Knowledge for the Customer
Why Lean Marketing? Because it is the Future of Marketing …
The Pull in Lean Marketing
The 7 step Lean Process of Marketing to Toyota
The Marketing Knowledge Spiral