The Proactive Solution to Turbulent Times »
Print friendly
“…you can grow profits faster and better by growing sales than by using an axe.”
As life goes on it seems that whatever you could take for granted and assume stable in fact is anything but. Over the past few years, sales and marketing jobs have become that way. There was a time when it was quite normal for people to put in 20 or even 30 years with the same company. It was frowned upon when you had more than two or three career moves during one lifetime. The world, however, was somewhat predictable and longevity with a company, product or service really added value to the client/sales relationship.
How times have changed. Now if you survive perhaps as long as three years in a position in some organizations, you are doing well. At present, different organizational experiences seem more valued, and this has some merit. Long-term today equals two years max compared to the post-war Japanese model that measured long-term in decades. Times have changed - but some things never do. While the one thing constant in this new information/wired/turbocharged world is how unpredictable it has become, the value of good, experienced, stable, older minds increases rapidly as things deteriorate.
I am of mixed minds about how much better some modern ways are, particularly when they have yet to be tested under the fire of an economic downturn. North America has led a huge global economic expansion over the past eight years and an entire generation of management has yet to experience the ravages of any form of economic recession. I question how many managers under 40 are ready for that when it comes, as come it surely will one day. They have no concept of what it can be like to work with double-digit inflation for example. Much as I hope they never do, I cannot bring myself to trust that anyone has that much control over an unstable world.
It is hard to know how strong the foundations of many young businesses are to sustain that type of pressure. And as far as people go, when you have only a short time invested in a cause or corporation, the mindset is different than when the organization or individual has been there for 15-years, for example. There is an inherent value to dedication and loyalty from customers, vendors and employees which increases over time, that combines to make an organization stronger not weaker. These are foundations that may need to be shored up prior to a storm because nothing can be taken for granted - except that the unexpected will probably happen.
When economic effects start to cause sales to slow, as cut-backs, increased unemployment and inflationary spirals start to erode confidence, the first thing most organizations do is focus on their expenses. They start to rein in, just as it is quite expected to see expenses increase when business is going gangbusters. The belt tightening process is something that should be done all the time. But this can become almost cancerous if circumstances do not improve and, slowly but surely, earnings and profits are achieved more by cutting costs than anything else.
For Sales and Marketing executives the call to action is loud and clear. At least it should be. Now is the time to start, before a few things you cannot control start to get out of hand, such as the price of gasoline. To do what? Increase sales of course.
There is one absolute way to increase profits and protect your organization against any downturn no matter what business you are in - and that is to increase sales. The greater your sales, assuming you can hold your margins, the greater your profits. And even if you have to suffer some margin erosion, chances are still good you will come out ahead of the game in the long run because you have expanded your customer base. Trust me, you can grow profits faster and better by growing sales that you ever can by using an axe!
The mission therefore for sales and marketing executives is to quickly identify those customers and those markets where you can gain increased sales - and then focus your promotional activities towards them. Maintain your existing customer relations but crank up your business development activities at the same time. Challenge your sales force to start making two cold calls a day to new prospects inside their territories over and above their normal quotas. Start reviewing the number of new business presentations being made each week. Push hard now and you will reap the rewards over time.
In tumultuous times such as these, the first job for management must be to prepare the organization to survive the storm. Hatches have to be battened down and precautions taken to weather changing conditions. Extreme change may be required in certain circumstances. But hidden away are new opportunities for those willing to see the reality of a changed environment and leverage their assets accordingly.
In the big scheme of things you will never regret this work. You also stand a much better chance at recession-proofing your business and sustaining continued growth when firm growth sets in again.
© Bald Eagle Consulting Inc. Reproduced with permission.
------------------------------------------------------------------------
R David Gould is President of Bald Eagle Consulting Inc, an independent marketing management and customer service consulting practice based near Toronto, Ontario that specializes in business development, digital strategy and execution for North American businesses. Website: http://www.baldeagleconsulting.com
by R David Gould
“…you can grow profits faster and better by growing sales than by using an axe.”
As life goes on it seems that whatever you could take for granted and assume stable in fact is anything but. Over the past few years, sales and marketing jobs have become that way. There was a time when it was quite normal for people to put in 20 or even 30 years with the same company. It was frowned upon when you had more than two or three career moves during one lifetime. The world, however, was somewhat predictable and longevity with a company, product or service really added value to the client/sales relationship.
How times have changed. Now if you survive perhaps as long as three years in a position in some organizations, you are doing well. At present, different organizational experiences seem more valued, and this has some merit. Long-term today equals two years max compared to the post-war Japanese model that measured long-term in decades. Times have changed - but some things never do. While the one thing constant in this new information/wired/turbocharged world is how unpredictable it has become, the value of good, experienced, stable, older minds increases rapidly as things deteriorate.
I am of mixed minds about how much better some modern ways are, particularly when they have yet to be tested under the fire of an economic downturn. North America has led a huge global economic expansion over the past eight years and an entire generation of management has yet to experience the ravages of any form of economic recession. I question how many managers under 40 are ready for that when it comes, as come it surely will one day. They have no concept of what it can be like to work with double-digit inflation for example. Much as I hope they never do, I cannot bring myself to trust that anyone has that much control over an unstable world.
It is hard to know how strong the foundations of many young businesses are to sustain that type of pressure. And as far as people go, when you have only a short time invested in a cause or corporation, the mindset is different than when the organization or individual has been there for 15-years, for example. There is an inherent value to dedication and loyalty from customers, vendors and employees which increases over time, that combines to make an organization stronger not weaker. These are foundations that may need to be shored up prior to a storm because nothing can be taken for granted - except that the unexpected will probably happen.
When economic effects start to cause sales to slow, as cut-backs, increased unemployment and inflationary spirals start to erode confidence, the first thing most organizations do is focus on their expenses. They start to rein in, just as it is quite expected to see expenses increase when business is going gangbusters. The belt tightening process is something that should be done all the time. But this can become almost cancerous if circumstances do not improve and, slowly but surely, earnings and profits are achieved more by cutting costs than anything else.
For Sales and Marketing executives the call to action is loud and clear. At least it should be. Now is the time to start, before a few things you cannot control start to get out of hand, such as the price of gasoline. To do what? Increase sales of course.
There is one absolute way to increase profits and protect your organization against any downturn no matter what business you are in - and that is to increase sales. The greater your sales, assuming you can hold your margins, the greater your profits. And even if you have to suffer some margin erosion, chances are still good you will come out ahead of the game in the long run because you have expanded your customer base. Trust me, you can grow profits faster and better by growing sales that you ever can by using an axe!
The mission therefore for sales and marketing executives is to quickly identify those customers and those markets where you can gain increased sales - and then focus your promotional activities towards them. Maintain your existing customer relations but crank up your business development activities at the same time. Challenge your sales force to start making two cold calls a day to new prospects inside their territories over and above their normal quotas. Start reviewing the number of new business presentations being made each week. Push hard now and you will reap the rewards over time.
In tumultuous times such as these, the first job for management must be to prepare the organization to survive the storm. Hatches have to be battened down and precautions taken to weather changing conditions. Extreme change may be required in certain circumstances. But hidden away are new opportunities for those willing to see the reality of a changed environment and leverage their assets accordingly.
In the big scheme of things you will never regret this work. You also stand a much better chance at recession-proofing your business and sustaining continued growth when firm growth sets in again.
© Bald Eagle Consulting Inc. Reproduced with permission.
------------------------------------------------------------------------
R David Gould is President of Bald Eagle Consulting Inc, an independent marketing management and customer service consulting practice based near Toronto, Ontario that specializes in business development, digital strategy and execution for North American businesses. Website: http://www.baldeagleconsulting.com