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Just how pervasive is marketing ?

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The lecture I gave to the BBA / MBA students at the Glion Institute for Higher Education

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Just how pervasive is marketing ?

  1. 1. JUST HOW PERVASIVE IS MARKETING ? Using marketing to restore the profitability of a technical team Serge Crinquand |PMP|MBA Glion Institute of Higher Education
  2. 2. Objective Understand how pervasive Marketing is and how it could be used by people other than the creative types.
  3. 3. The IT world in the late 1990s
  4. 4. And then… Nasdaq index
  5. 5. What did that mean for us ? Fixed costs Revenue>>
  6. 6. What were our options ?
  7. 7. 1 – increase revenue   Sell more equipments   Margin ? Volume ?   Find niche product for higher price   Time ? Training ?   Sell more services   Sell better !   Define ?   How ?
  8. 8. 2 – reduce costs   Reduce headcount   Credibility ?   Find cheaper people   Quality ?   Reduce fixed costs   Define ?
  9. 9. What we did: ➴ ➴ ➴ The holistic marketing framework
  10. 10. The holistic marketing framework « Managing a superior value chain that delivers a high level of product quality, service and speed »
  11. 11. Cognitive space Existing and latent needs
  12. 12. 1 - take stock of your sales force Account managers Engineers • Hunt for new accounts • Develop existing accounts • Own the relationship • They have a special relationship • They can bring back information • Upsell / cross-sell 2 sales forces: Even the engineers are professional sales men !
  13. 13. 2 – train them • sell • price • define Training for all ! Services Strong involvment of the engineers in the pre- sales phases Rules • NO discounts • NO free lunches • Upsell / cross-sell Change of culture for sales staff and customers !
  14. 14. Customer benefits Identify new customer benefits from the customer’s view
  15. 15. 1 – understand your customer   How would customers react in turbulent times ?   Reduced budgets for investments   Might prefer expenses vs investments   Avoid any new investment !   Focus on optimizing existing infrastructure:   Faster   More secure   More robust   … find ways to add value !
  16. 16. 2 – match your customer’s needs   Develop new services:   Monitor infrastructure   Maintain / extend lifecycle of infrastructure   Optimize: do more with less   Develop new ways of selling services:   Projects vs hourly billing   Discounted prepaid blocks of hours   New maintenance models
  17. 17. 3 – raise the bar on quality   Increase the perceived value:   Quality as a differentiator   First time right: reinforces the feelings of efficiency and technical mastery   Position our teams as the only choice   Hire the bests among the bests   Train, develop, raise the bar on the engineers
  18. 18. Internal resources management Have control over your resources
  19. 19. Internal resources management 1.  Increase efficiency 2.  Educate and empower 3.  Manage by objectives 4.  Build a cohesive team
  20. 20. 1 – increase efficiency Time reporting for engineers ? « Hey, what did you do yesterday ? » « Yesterday ? I worked !»
  21. 21. 1 – increase efficiency Time reporting for engineers ? Yesterday work Yesterday administration training project 1 project 2
  22. 22. 1 – increase efficiency Time reporting for engineers ?   Without:   Poor resource utilization / overload   Revenue leakage, gold plating   Project management issues (scope)   Longer billing and charge back cycles   Errors and delays in billing   Errors and delays in cost allocation   Inaccurate estimates / biased forecasts   With:   Control of resource utilization   Shorter ‘order to cash’ cycle   Less billing errors   Accurate estimates and forecasts   Indentification of the time sinks   Future reference for service quotes   …
  23. 23. 1 – increase efficiency Measuring & Forecasting   Without:   Poor resource planning   Poor financial planning   No visibility on the business
  24. 24. 1 – increase efficiency Use a dashboard   Use it   Every day !   Share it   Colleagues   Boss (and ask for his !)   Subordinates   Tweak it   Your tool
  25. 25. 1 – increase efficiency   Check your processes:   Are they still valid ?   are they flexible enough ?   do they help people do their job or do they hinder them ? GOAL: reduce order to cash cycle
  26. 26. 1 – increase efficiency   Put new rules in place:   reinforce the right behavior   Show you’re serious about the change   Examples of new rules:   ALL service offers have to go through the Technical Manager’s desk for approval   New formal project closure procedure
  27. 27. Internal resources management 1.  Increase efficiency 2.  Educate and empower 3.  Manage by objectives 4.  Build a cohesive team
  28. 28. 2 – educate and empower   Don’t just give ‘orders’, explain, coach, teach, empower !   Remove any ‘hang-ups’   Reward time management   Less overtime   Less time spent on site, increased efficiency   Time management = life management
  29. 29. Internal resources management 1.  Increase efficiency 2.  Educate and empower 3.  Manage by objectives 4.  Build a cohesive team
  30. 30. 3 – manage by objectives   Set objectives:   To individuals   To the team   Give the engineers the incentive to sell services   Make sure your objectives :   are S.M.A.R.T (Specific, Measurable, Achievable, Realistic, Time-bound)   will cement the team and not make it fall apart
  31. 31. Internal resources management 1.  Increase efficiency 2.  Educate and empower 3.  Manage by objectives 4.  Build a cohesive team
  32. 32. 4 – build a cohesive team   Why should you care ?   High cost of a recruitment   High cost of training   Highly difficult to find the bests   Good engineers are courted from all sides   How to retain engineers ?   Give them interesting projects   Train them, help them reach the next step in their career   Make them feel part of a family !
  33. 33. The results ? ➴ ➴ ➴   Billable time:   from 20% to 80%   Revenue:   target +30% the 1st year   Customer satisfaction:   4.8/5
  34. 34. Questions ? Thank you !

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