By Category: New Business Strategies
The greatest change of our work lives is on the horizon
by Todd Knutson | published on June 23, 2009
Michael Malone's new book, The Future Arrived Yesterday hit bookshelves on Monday. You may remember his name from the early 1990s prediction that work was going to become increasingly virtual. He got that right!
He now predicts that:
The best companies in the world will use the latest information processing, communications, and social networking technologies to become shape-shifters, constantly restructuring themselves to adapt to changing circumstances and new opportunities. They will become protean.
"These new protean corporations...will behave like perpetual entrepreneurial start-ups, continuously changing their form, direction, and even their identity."
We need to plan for the following fundamental changes to our business worlds:
- Technology: digital devices will be ubiquitous; new management tools will be required to manage a globally diverse and scattered workforce.
- Organization: we'll see accelerating de-centralization and destruction of hierarchies in larger enterprises; also, frequent restructuring - in a matter of weeks or months, which will require employees to continuously find their place in the new organization.
- Historical - there will be a continuing trend toward more web-based, mass-customized, "smart" products and services; a company's history, myths, values and culture will be what keeps it together.
- Generational -Gen Y is an entrepreneurial generation whose impact will be making the new technologies work right; they will demand that their work be as challenging and change as frequently as the rest of their life.
Malone also suggests that the tools for success already exist for becoming protean, and cites companies like Google, Twitter, and Wikipedia as being early-stage protean, as well as some large, well-known companies like HP, Intel and IBM.
How will these changes impact agencies and new business? Here are a few of my recommendations and predictions...
- Stay current with the latest technologies. Those agencies that fall behind will be left permanently behind. Marketers will need to be incredibly adaptive just to survive the coming upheavals in their own companies and industries, and will depend on marketing partners who are more knowledgeable than they are.
- The continuing destruction of corporate hierarchies is going to make it harder to determine who's in charge, and that responsibility will change and morph more than it already has.
- There will be increased opportunities to communicate a company's myths and history internally to widespread and diverse employees. Everyone will need to know what the company stands for; effective communication to all stakeholders will be critically important.
- One of the greatest opportunities will be harnessing the creative, entrepreneurial energies of Gen Y employees.
- New business development will also change shape, and will likely be driven by connections that will begin and grow digitally through social networking. Meetings are likely to take place more virtually than they do today.
What I don't predict will change: people will still do business with people they like. The ability of your new business person to "connect" with your prospects will be as important as ever.
This book is likely to become a business bestseller. Change is coming and you'll want to keep up with it.
4 steps to benefit from focused learning and strategic targeting during slowdowns
by Todd Knutson | published on June 16, 2009
Elizabeth Baskin of Tribe passed along a good idea to me yesterday that may be of use to those who work or own small agencies. We ran into each other at Catapult New Business' New Business from Social Media conference, which is being held through today in Atlanta (full disclosure, I have a financial stake in Catapult).
Elizabeth founded Tribe about 10 years ago. She describes it as "a branding company with an expertise in niche markets. Our sweet spot is building relationships between specific tribes of people and the brands that can make their lives better." This is a good, solid positioning statement. And what I really like is that you can tell they live what they say they do; this is not some fluffy positioning written by someone uninvolved with the business.
One of her secrets to drive new business in this: every summer, when things slow down a bit, her team focuses on in-depth learning of a new niche market or skill. In the past they've immersed themselves in Gen X employees, Millennials, and high income households. This summer, it's social media.
They use their new-found knowledge immediately. Here's their simple 4-step process:
- Identify very specific corporate marketers who you believe will be interested in the subject matter.
- Create short, focused thought-pieces.
- Send one to each prospect.
- Follow up with each prospect, engaging them in conversation about the subject.
They've found that if what they study is current and they target appropriate marketers, it's relatively easy to begin a conversation.
And that's all you can ask of a new business strategy like this: use it to crack open the door so you can start a conversation.
Aggregating or disaggregating your services could be the key
by Todd Knutson | published on June 15, 2009
Too often marketers complain that agencies are alike, that their services are a commodity.
As frustrating as this may be, Kaihan Krippendorff argues in a recent Fast Company article that there's a way to distinguish yourself from the competition.
He poses three questions:
1. How might I aggregate the parts to create something new?
2. How can I disaggregate things to create new things?
3. What does my competition offer, and how can I make my approach more appealing?
Let's brainstorm ways in which this might apply to your new business efforts:
Aggregation
Say you have expertise in interactive, passion for social media, and a new hire who's an expert in branding? Might you create a social media 'product' that combines the three and would be attractive to an industry niche you know well? Might this satisfy an existing customer's unmet need? Think about the services marketers have asked you to perform, or that you think they need. Can you combine them in ways you haven't tried before?
Disaggregation
Let's say you pride yourself in being a "full service agency". Have you ever felt that you leave money on the table, perhaps offering high-value services for a low price - that others charge a premium to handle? Might there be a way to reconstruct your business model and instead sell less, for more? Or, could you repackage certain offerings and combine then in ways no other agency is (yet)?
Appeal
Have you spent time analyzing your competition's offer, piece by piece? Why do their clients buy their services? Is it their creative product, their people, their process, their hourly rate, their location? How can you change your approach to how you differ to make your agency more appealing - not more similar? The idea is to distinguish yourself, not make yourself more the same (proving the commodity stereotype). This demands a fresh look at your agency, and may require an outside opinion, perhaps from someone outside the industry.
A homeless man provides a life lesson
by Todd Knutson | published on June 12, 2009
My son got a powerful dose of wisdom from a homeless man yesterday. When I heard the story, I couldn't help but think about the applicability of what he said to business in general, and to ad agency new business in particular.
Here's the background. In Atlanta, as in many other cities, if you want to get better at a sport you need to play on a club team. My son has been playing soccer with a particular team for about seven years. This year, though, he decided to try out with another club that's known for attracting some of the best players and coaches.
On the way home from the first tryout, he was very pessimistic about his chances of making the team, complaining that everyone was better than him. My wife would hear none of it, and being the calm, demur person that she is (not!), and being up to her ears with his 13-year old attitude, she gave him a piece of her mind. The central theme was setting high expectations for yourself and never giving up. Much of this took place at a stop light; neither of them realized that someone was listening.
The next thing they knew, a homeless man was at my son's window saying,
Son, listen to your mother, like I should've listened to mine. If I'd set high expectations like she told me to, I wouldn't be homeless today. And son, you don't ever wanna be homeless.
What a statement, and what a lesson! Both son and wife were speechless.
I've been around many an agency or new business person who have set really low expectations for themselves or their agency. Perhaps it comes from the way they were raised, maybe from insecurity about the sales process, or perhaps lack of confidence in their creative product. But in any case, it's demotivating. Do you want to work where "same old, same old" is okay?
Contrast that with the CEO who has a vision and sets big hairy audacious goals for every department in the agency, and gets everyone to believe that together they can win.
Setting high expectations is the difference betwen maintaining the status quo or going backwards versus experiencing growth and opportunity. Which do you want in your business life? Are you challenging yourself and your agency's new business process? Are you setting stretch goals? Are you striving to learn and grow as a person so you can contribute more in your current role and create opportunities for yourself in the future?
5 ways to ensure your appointments stick
by Todd Knutson | published on June 10, 2009
Does this sound like something you'd say, after hearing your prospect express interest in speaking further about your agency's credentials (recent work, award, new client win, etc.):
"Great! I'll call you next week.
More than likely, what's going to happen next week? You'll call a few times, get their voicemail, and then try for weeks to get them back on the phone. Any momentum you had after the last conversation will be lost.
Instead, follow these 5 steps whenever your prospect wants to talk further:
- Pick a specific day (Wednesday).
- Set a specific time (2:30 pm - know their time zone and plan accordingly).
- Identify the subject, the purpose of the call (to discuss how ABC agency helped XYZ company exceed the new product's sales plan by 20% in the first 6 months).
- Determine the amount of time your prospect needs to block off on their calendar (10 minutes? 45 minutes?) There's nothing worse than hearing that they have to go to another meeting, just as you're getting to the good stuff.
- Put the appointment on both or your calendars by setting it up in Outlook, or some other software, which they need to electronically Accept.
Too often even experienced new business pros forget steps 3 - 5. It may seem presumptuous at the time, but do it anyway. Think about it this way: you're showing how your agency works: are you casual about appointments and deadlines; or, are you always prepared and professional in your approach?
With these five steps established beforehand, your prospect will be ready for your call at the correct time and be prepared to hear what you have to say. And, with a little luck, they'll even listen and ask you follow up questions, which will reveal challenges and opportunities for your agency.
Recession success proves the power of a well executed strategy
by Todd Knutson | published on June 09, 2009
Amid stories about client losses, staff cuts and reduced spending are powerful reminders that a well-executed organic growth strategy can be a powerful revenue-generator in good times as well as during the recession.
I've had some impromptu conversations with agency leaders recently about what's working in their drive for organic growth. Most recently it was with Nancy Katz Aresu of Lowe NY during our 25th college reunion (Trinity College class of 1984) this past weekend.
Nancy runs Lowe's Unilever business across North America and has 25 years experience in the agency business. She knows something about the subject and confirmed the three keys to organic growth that I've been hearing:
Build a relationship.This can only be acquired over time and requires that you:
- Ask smart questions to learn your client's business. Know their goals, opportunities, and most importantly - what keeps them up at night.
- Demonstrate your capabilities on the project or account you've been awarded.
- Communicate daily - by phone. There is no substitute for direct, verbal communication. Find any excuse to call and talk.
If you've built your relationship well you will have developed a solid foundation based on mutual respect.
Develop an honest and trusting connection at the top. Assuming you've earned you're client's respect, you need to develop this level of communication with their key agency decision maker. You need to be able to talk openly about the good, the bad, and the ugly. If you're unable to speak this way, keep working on number one, above.
Ask for more. Once your agency proves itself on one piece of business, ask for more. Use what you've learned about your client's business to identify a problem or new opportunity, and then ask the agency decision maker for a shot at it. Note: if it's a large client don't get greedy; build your relationship one step (project, brand) at a time.
This is consultative sales at its best: you need to ask good questions, build trust and respect, prove your capabilities, and then ask for the sale.
A successful organic growth effort requires experienced, self-confident account executives with strong consultative sales ability. If you have these skills at your agency you can drive revenue growth, even in the recession (as Lowe is). If you don't, you might start thinking about either providing training to your account execs, or consider upgrading your agency's talent base.
Relentless focus on improvement is a key to success
by Todd Knutson | published on June 08, 2009
Bottom Line interviews Josh Waitzkin, a former national chess champion and current martial arts world champion, in their most recent newsletter. Waitzkin shares insights that may cause you to change your perspective on how to learn and improve your new business skills.
His insights come from both competing at the highest levels in chess and tai chi, as well as from his personal experience pushing himself to win.
He has found that the most successful competitors are relentlessly introspective. They first recognize how they learn best and then take on their weaknesses, one at a time.
Attacking your weaknesses in this way breaks down the walls "between work and play, which leads to a fully engaged performer...and a learner who loves every step of the journey."
How would your new business skills and performance improve if you approached it as play, and less like work?
Waitzkin also discusses how to maximize your learning. He has found that concentrated effort on a limited amount of subject matter is critical.
- Spend days, weeks, or even months "gaining a feel for the operating principals" of a very limited amount of material.
- Only after you have achieved a "deep feeling" for it should you move on to more complicated material.
Consider what you currently know about new business. Let's say you don't feel particularly confident at being able to engage with a corporate marketer on the phone. What if you focused solely on gaining a deep understanding of how to engage better. I know from experience that it would probably take you weeks of reading, studying, and practicing before you should actually pick up the phone with a prospect. And then, months of actual telephone experience to achieve what Waitzkin calls a "deep feeling". But, think of the professional rewards that would come from being two or three times as effective as you are today.
Perfection is dangerous. Waitzkin argues that "when we believe that we have achieved perfection...we lose...our ability and willingness to absorb new information. Do you believe you've mastered new business? Are you open to learning more?
If those at the top of their fields relentlessly pursue improvement, what does that say about how we should approach our careers as new business professionals? Do you approach each day as a learning opportunity? Do you know what you need to work on to improve your skills, and are you "plunging deeply into a small pool" of information in order to do so?
I'm sure all of us can remember the single-minded focus we had as kids when we were learning something new. That approach caused us to quickly 'climb the learning curve'. It's that focus that we're talking about here, and that can yield significant results.
It may be the most dreaded type of prospecting effort. Some claim it's dead. But, it still works.
by Todd Knutson | published on June 04, 2009
"I just got a call-back from International Paper."
Turns out this new business person made one introductory phone call to track down the appropriate person, left a voicemail message, sent information, and got a call back from a senior marketer. This was yesterday, not five years ago. So, is cold-calling dead? No!
Let's break down what took place:
- Identify suitable prospects
- Get a good list of marketing contacts at your target companies
- Craft your messaging and hone your voicemail series
- Leave a compelling voicemail message
- Send relevant information (if sending an email, this post may help)
- Follow up and set next actions
Another sales person just walked in my office and left me with this nugget: good sales people must be eternally optimistic. If you're not, you can't possibly survive. It's true, particularly if you make cold calls (and he does).
So, even though times are tough and popular wisdom is that cold calling doesn't work, you might think about it this way: there are now fewer people making cold calls, which means that your odds of success have just gone up.
I'm curious: What you are encountering in the market? Are you having success with cold calls? If so, what's working?
The deal was almost inked, and then he tried to change the terms
by Todd Knutson | published on June 01, 2009
I love asking agency principals the question, "What's the first thing you think of when you think of sales?" The answer is almost inevitably "car" or "used car".
Last Saturday morning my wife asked me to test drive a car with her. We've been talking about what to get as her lease is up in August. She's been researching, visiting a few dealers, test-driving a handful of cars, and had narrowed her choice down to two models, but was focused on a Toyota Highlander. Before heading out, we agreed we were not going to buy a car today, just test-drive it. Right.
Five minutes into our visit (and even before the test-drive)...
Wife: I love that color! That's the one I want.
Salesman: It's the only Limited we have, and we only get one of these models a month...
Hours later we're putting the final touches on our negotiation. We agreed that the dealer would make the final two payments on our lease and take care of the disposition fee; we just had to agree to the purchase price, which we did after the usual back-and-forth with the sales manager. We shook hands on the deal. The salesman then started working up the paperwork.
20 minutes later, the salesman announced, "Sorry, we can only pay half what we told you we would towards your final lease payments."
The fun disappeared and what remained were those age-old feelings about shopping for a car: bait and switch, distrust, disappointment, and that sinking feeling in the pit of your stomach. Everything you don't want your prospective client to feel after wooing them for a long time.
Think about all the different ways a new business person can set expectations and fail to follow up on them as promised:
- Mail something with a cover letter and promise to call, and never do so;
- Leave a voicemail and say you'll call back, and don't;
- Send an email and promise to call, and don't;
- Have a conference call and say you'll follow up on Thursday, but you don't until the following Tuesday;
- Have a meeting and promise you'll get them a proposal within the week, but it takes you two.
If you're on the receiving end of any of these unfullfilled expectations the effect is the same: a broken promise. It doesn't take many broken promises to kill your new business process.
I left the dealership and got lunch while my wife tried to get the manager to see what he'd done, but he wouldn't explain himself or budge, so we left. Bad move for them; deal lost. In this economy, with sales down 46%, you'd think car dealers would want every deal they can get.
Let's be sure we don't break any of the expectations we set with our prospects.
If you determine the depth and weight of your prospect's needs you'll clearly define the potential opportunity
by Todd Knutson | published on May 27, 2009
Most proactive new business efforts take place over the phone, which is at the heart of any outbound new business process. Most sales people know about the idea of identifying needs, but as Art Sobczak says in a recent edition of the "Telephone Selling Report", that's not enough.
Say you're speaking with a marketer and you identify a need, and she confirms it - does that mean you're on your way to landing a new client? No!
"Some needs are more urgent and important than others. Consequently, some needs get acted upon and others are placed on the back burner."
Successful lead generation will come from determining the depth and weight of a need, through what are called "analysis questions". By asking the right type of questions, the skillful new business exec will get the marketer to both articulate and prioritize their need(s).
Let's explore a fictional conversation to see how analysis questions can be used to further define a need.
New business person (NB): Sue, you mentioned that you have a social media program. You said that some parts were good and some not so....
Marketer (M): Yes.
NB: Describe some of those not so good efforts.
M: Well, they didn't meet expectations.
NB: Well, what was the impact of those programs on your customers?
M: Hmm...I haven't thought about that, but it wasn't always positive.
NB: (from another angle) What was the reaction from employees to those programs?
M: Well, some came off pretty badly.
NB: Badly? How so?
M: We've an employee-owned company and some employees feel we've been wasting money.
NB: What impact has that had on subsequent social media efforts?
M: Well, the budget was cut and we're subject to greater scrutiny.
NB: Cut, by how much, say on a percentage basis?
M: About 20-25%.
NB: Have your marketing goals been lowered, too?
M: (Laughing) Not!
NB: How are you making up for the shortfall?
M: Well, we're trying to spend our remaining dollars better, to try higher results. We're had to hire some contractors that we didn't have in the budget to make that happen.
NB: Any idea how much that's cost?
M: Not at the moment, but I see your point. If I add the loss in budget to the extra expense we've been forced to incur just to try to catch up, plus the negative feeling among employees...it's significant.
NB: So, having a really cost-effective social media program that drives much better results is important?
M: Yes.
As you can see, analysis questions help you further explore a situation. You'll reveal needs, and also their significance for the organization. And with them, the potential opportunity your ad agency can pursue.
