Delivered at the 2011 Affiliated Distributors CFO Conference, this presentation offers macroeconomic and c-level researce. This provides the basis both economic analysis and implications on those in the construction trades.
16. But Don’t Forget Psychology Will the economy fall into recession? What happens to commodities? Will the consumer stop spending? Are industrial production numbers a mirage? What about automotive? Where will construction go? Will we have jobs? What about the debt reduction plan? What happens if Europe collapses? Will a slowing China ruin everything? Will energy prices skyrocket? What happens if stagflation returns?
19. How Does This Impact Demand? 2,642 C-level executives invited to participate 153 respondents in total Research completed between September 14 and September 29
28. Implications for the Construction Trades Corporate hesitance to spend Longer and more involved sales cycle Increased price competition Diminished value of relationships in place Shift from build to renovate
30. Adaptation #1: Managed Ambiguity Multiple higher-likelihood scenarios Timeline and action driven Heavy focus on next 90 days Well defined future state Clearly outlined assumptions Short term focus on revenue, internal obstacles
31. A Well Managed Business Goals Direction Feedback Objectives Objectives Objectives Action/ Behavior Action/ Behavior Action/ Behavior Action/ Behavior Action/ Behavior
32. Elements, In Triplicate Please Clearly defined future state Small number of achievable objectives Understanding of external threats Documented list of assumptions for success Internal focus on why it won’t work 90 day action plan
33. Plan the Work, then Work the Plan Review weekly Sales activity General assumptions KPI Review monthly Revenue Specific objectives
34. Harness Your Team Small group of leaders who can get things done Define a game plan, playbook for each scenario Fewer meetings, more joint work In God we trust, all others bring data
35. Adaptation #2: Push the Sales Team “Increased revenue cures most ills, but the right revenue cures them all!”
36. The 45 Second MBA in Marketing Three ways your company can compete1 Best total cost = Operational Leadership Best product = Product Leadership Best total solution= Customer Intimacy World class organizations choose one to drive their business Which model describes your company? 1. Treacy and Weirsema: The Discipline of Market Leaders. 1997, Perseus.
37. { Customer Value Driving Force For Customer To Buy Customer Benefits Zone of Possible Agreement Price Driving Force For Supplier To Sell Supplier Profit Cost Source: Frank Cespedes, Harvard University. November 2008, YPO MI West Maximizing Pricing and Value
38. Success and Failure Success: Solution Marketing Solution Program and Resources Opportunities Transaction Marketing Transaction Program and Resources Opportunities Failure: Solution Marketing Solution Program and Resources Opportunities Transaction Marketing Transaction Program and Resources Opportunities Source: Frank Cespedes, Harvard University. November 2008, YPO MI West
39. A Tale of Two Sales Guys Charlie, the Finder Sets aggressive goals Communicates progress Asks for field support Works with ops to improve Consistently beats expectations Bob, the Minder Accepts your targets A black hole Hides “His” customers Lets ops figure it out Consistently tells you why he missed expectations
40. The Big Finish! Do not expect a double dip recession in 2012 Data is quieter than fear, but still positive Companies continue to plan for construction Slight downgrade in anticipated demand Prepare for increased ambiguity Manage your sales team