Bulletin:  Tools are instruments used to assist in getting a result.  Tools by themselves do not get the result unless they are in the hands of a knowledgeable user.  Here is a tool to help get to the core of a problem;

The tool is called “WHY”.

This is a multiple function tool that can help anyone get to the key issues causing a problem so that it can be resolved effectively.

Function One; Use WHY in the form of a question when someone brings you a problem and use it until you cannot use it any more.

Example:

My car won’t run.
WHY?
It won’t start?
WHY not?
When I turn the key, I just hear a clicking sound.
WHY do you think it clicks?
Maybe it’s the battery.
WHY do you think it is the battery?
It has been taking longer to start the past several weeks.

Result: Start by checking the battery

Function Two: Use W.H.Y as an acronym to help to prompt the questions that need to be asked when searching the core issues of problems;

W-What is the problem?
-Gather as many symptoms as possible.
- Create a detail description of the problem

H-How do you think it happened?
-Gather as many possibilities for the cause of the problem as possible

Y-Your action taken so far?
-Gather the actions taken and results of the action taken (in great detail)

It’s a process of elimination once the information is gathered using the WHY Problem Solving Tool.  Some resolutions will be obvious and others will be more obscure, but keep asking WHY and probing with the What, How, Your Actions and you will get to the core of the problem more efficiently.

Getting to the core of any problem is key to a timely resolution.  Using the WHY tool is one way to approach the situation.

Let us know which problem solving tools you use!

Here are a few suggestions:

Recognize that Mo has left.  Productivity and morale are down, innovation is marginal, the organizational energy level is flat, and status quo is the theme of the day—Mo has left the building.

Accentuate the positive. It is much easier to focus on negative events or results than on the positive, but if the recognition received is punitive based on negative results, the only motivation to improve is fear.  Fear and money are the two most commonly used motivators and are both very short term.  Find results, activities, events, and actions that are positive to the organization and its stakeholders and make them public.  They don’t have to be large; they just have to be positive.

Reset short term goals. If the organization’s goals are too long term or unachievable; that will open the door for Mo.  Review the short or mid-term goals and make sure they are achievable.  New targets that are clearly doable can rejuvenate an organization.

Cross train wherever possible.  Setting up a cross training or mentoring program will create greater benefits to the organization and the workforce.  The company has a more effective workforce and the employees have expanded their knowledge and skill levels-that’s a win-win.

Innovate, innovate, and innovate. Focusing first on the product or service to innovate may cause you to lose more Momentum.  Why?  Because it is much harder to innovate something that is driven by market acceptance, development timelines and competition with existing product investments.  So where do you innovate?  Don’t look at just what you produce, but look at how you produce it.  Innovate internally by looking at your back office processes, how you work with suppliers, how and what you communicate, by streamlining the work flow between activity centers, etc.  Create a new organizational mindset that focuses on making it just as important to innovate how you produce as it is to innovate what you produce.

These were just a few ideas to get you thinking.  Let me know your ideas and we can collaborate on helping others.

I use to discount that response, “but we are different”, because I knew that they were not different when looking at the “required” activities needed to correct their situation.  However, after many years of working on many different operating and performance challenges for organization, I have come to the conclusion that they probably are different, but how?

Like people, organizations are like “snowflakes”, no two are exactly the same.  Even identical twins are not identical in every way say clinicians.  Why would an organization be treated as if it were the same as another?

Have you ever seen two organizations with the same exact cultures?  Cultures evolve over time based on leadership influences, operating practices, environmental factors, and results (positive or negative).

Have you ever see two organizations with the same exact operating processes?  Operating characteristics are created from external influences and proprietary methods and practices that have proven to generate the results required by the organization.

Have you seen any two organizations treat their customers in exactly the same way?  Customer relationship management is not a computer system, but a reflection of the respect that the organization has for their customers, and the customers respect they have for the organization and its products or services.

So what is the significance of knowing that no two organizations may be the same? It is important NOT to prematurely classify a company or its workforce as having the same issues or initiatives as others that may be in their same market, industry or organization type.   This means internally and externally to the enterprise.

If you’re a CEO, don’t make the mistake of trying to clone your new assignment into an exact copy of your previous assignment, no matter how successful you were.  You have a new environment that may need changing, but your success will depend on how you integrate new activities with the existing operation and culture.  It all takes time and patience.

If you’re a sales person, you better do your homework on the prospect and not assume they are like your last sale, they are not.  Your techniques may be the same, but their need for your product or service will probably be for different reasons than you last client.  Get to know them, understand them and serve them—then you will have a loyal customer.

If you’re a vendor or supplier, don’t assume that your customers require the same type of service.  They may require the same level of service, but delivered in different ways.  Your objective it so know them well enough and to care enough about them to meet their requirements for uniqueness.

No matter what your connection is to an organization, do not overlook the importance of having a trusted relationship with that organization.  It is this trusted relationship that will make that connection between the organization and yourself a more successful one.

I see four areas of failure that have an impact on organization because they are unsure of what the future holds.  Looking out into the future trying to predict what actions to take, without keeping focused on the near term, the organization may encounter four key failures:

• Failure to execute
• Failure in focus
• Failure in confidence
• Failure in trust

Failure to execute is an issue during both certain and uncertain times.  If the organization cannot translate their strategies into tactics and act on those tactics, the organization will continue to operate on daily activities as they occur (Parkinson’s Law), whether or not they are the correct actions.  Execution goes beyond planning and strategizing, it takes a work plan and a willing workforce to implement the plan.

Failure in focus comes from being so concerned with the unknown, that there is a paralysis of the leadership and a shortage of direction.  This inability to chart a course and take action is a symptom of an organization that is unwilling to take risk.  The enterprise will move forward, but the wasted resources from a lack of direction can take a lasting negative financial impact.

Failure in confidence points to the level of uncertainty experience within the organization.  If financial strength is an issue and a lack of focus, then the confidence that the direction will produce the desired results is weak.  Without confidence, risk becomes a major issue that cannot be easily overcome.  If a lack of confidence lingers, it can have a long term impact on the organizations culture.

Failure in trust causes operating activities to slow and the cost related to wasted resources to rise.  Internally this factor shows up on inter-departmental turf wars and office political power plays.  Externally the impact is a lack of cooperation, delayed deliveries, incomplete communication and an increased reliance on contractual measurement of performance.  The end result is a lack of cooperation and performance.

Look at these four failures as the trees and the level of uncertainty as the forest.  Knowing how to see the benefit of focusing on the trees will make the forest of uncertainty much less daunting.

Advertising does not build relationships, it only hopes to influence the moment and convert those few seconds into a buying decision for a product.  Word of Mouth (WOM) is the best and most reliable method of promoting a product.

A Testimonial from one person to another brings with it a level of positive bias and a tested experience. These endorsements or referrals are provided from one trusted person or company to another.  It is the trusted relationship that makes the recommendation more credible.

Word of Mouth (WOM) relationship building is growing rapidly due to wider use of social media applications (e.g. blogs, facebook, myspace, twitter).  How can your company use a WOM approach to expand your loyal customer base?  I am working with an organization that has some new and innovative ways to use this technology to help businesses grow – I will be writing more about this approach next month.   To provide a little more introduction and background to WOM, I am offering you a FREE look at an e-book that is the first of a series on how to use digital applications to expand your presence in your market.

Click here for your FREE eBook access: http://wom10.com/Pages/business-tools-book

Let’s explore the attributes of effective teams:

Definition of an effective team- An effective team “is a small group of people who are mutually accountable to achieve a common purpose and performance goals through their collective talents and collaboration.” (Kristiina Hiukka, BigAgendaCoaching.com)

8 Attributes of an effective team leader:

• Creates a compelling mission for the team
• Knows the priorities:  1. team mission, 2. team, 3. individual members and 4. themselves
• Communicates concisely, clearly and openly (communication occurs when both sides understand what the other is trying to convey–until then it is just talking)
• Encourages feedback
• Supports and encourages diversity
• Supports members by mentoring and coaching
• Delegates authority and accountability
• Selects members for their skills and desire to participate
• Promotes continuous improvement
• Fosters a positive team culture

7 Attributes of an effective team member:

• Strong discipline skills
• Good communicator
• Proponent of working in teams
• Enjoys collaboration with other member
• Self motivated
• Strong work ethic
• Self-directed within team roles and responsibilities

10 Attributes of an effective team:

• Clear purpose
• On-going supportive leadership (coaching/mentoring)
• Enabling processes and structures
• Supportive organization
• Members possess the “right” skills
• Commitment and trust of members
• Clear roles and responsibilities
• Clear team ground rules and protocols
• Open communication
• Performance goals and accountability
• Adequate resources
• Support group diversity
• Members are us-directed
• Self-directed
• Driven to continuously improve

My definition of an Entrepreneur is an individual or group of individuals that take an idea, and develop that idea and manage their business to the point where it becomes sustainable.  A sustainable business is an enterprise that can generate cash flow levels that support itself on a going-forward basis.  It is no longer depending on investor funding or credit to support its operations.  Investors that have believed in an idea, invested in an “Entrepreneur” and eventually saw their investment disappear due to company failure, know exactly what sustainability or the lack of it means to them.  More than likely that Entrepreneur may have not been an Entrepreneur at all, they may have been a Permopreneur^TM.

What is a “Permopreneur^TM”?  They are those individuals or groups that take an idea and create a business based on that idea, but are unable to generate enough cash flow to sustain their operation on its own.  There are two types of Permopreneurs^TM; The first type are those that are blessed with the gift of turning ideas into business opportunities, and are very secure in their abilities to know when to turn the business over to professional leaders and operators.  They usually employ professional operators to help raise additional funding and direct the company to sustainability.  The second type of Permopreneur^TM is either intentionally or unintentionally headed toward failure.  They are very skilled at convincing investors to finance their idea or technology, skilled employees to join their company, and they believe they can operate their way to sustainability.  Unfortunately, they don’t have the leadership ability and operating skills to keep the company from eventual failure.   The end result is another failed business with a bewildered promopreneur wondering what happened with a following number of devastated investors and employees. A more sinister version of the Permopreneur^TM has no intention of taking the company to sustainability.  Their “rush” comes from raising money to support a luxury life-style while they look for the next idea, and the cycle is repeated.  They have no intention of taking the company to cash flow sustainability.  They know there are plenty of investors that fail to do a proper job of due diligence and are greedy enough to feed the Permopreneur^TM ego with lots of opportunities.

I have had experience with Entrepreneurism for many years, having worked with Entrepreneurs and I have held the title myself.   I have tremendous respect for those Entrepreneurs and Permopreneurs^TM that have successful track records for creating sustainable businesses.  If you consider yourself an Entrepreneur, it would be worth your time to do a self-evaluation to honestly determine if you have the skills (not just the desire) to direct your business idea all the way to the goal line -cash flow sustainability.  If you are not sure, then look for the right time to hand off the company to a skilled leader and operator and consider yourself a successful Permopreneur^TM.

Most students learn about marketing through an explanation of the “Four P’s of Marketing”, as first mentioned by E. Jerome McCarthy.  However, this article expands the discussion of the marketing viewpoint to include a fifth “P.”  These five P’s should be included in any discussion about promoting the organization’s products within a target market.  Our “five Ps” of marketing are:

1. Product
2. Price
3. Place
4. Promotion
5. Profitability

Product- A product comprises a physical item or service which an organization produces for sale to customers within a selected market, whether directly to consumers or through wholesalers/resellers, retailers, original equipment manufacturers (OEMs), value-added resellers (VAR), etc.  Factors that should be considered in marketing the “product” are the following:

• Form

• Functionality

• Quality

• Packaging

• Support

• Warranty/maintenance/repairs

• Branding

Form - The look and feel of a physical item or the description of a service.  How does the product look to the potential consumer?  If the intended consumer cannot visualize how they will benefit from the product at first glance, then the demand for the product must be generated from one of the other attributes of the product.

Functionality- How does the product function? What does it do? How does it do it?  How does the product benefit the intended customer?  How does the product surpass the functionality of that offered by the competition?  Marketing the functionality of the product is a key point in most campaigns.  If the form factor is not distinguishable from the competition’s product or service, but there is a difference in functionality, then a neutral form factor may not be a limiting issue.

Quality- How well does the product function or benefit the customer?  Is it constructed in a way that the customer believes it is worth purchasing?  Does the customer perceive that the service will benefit her?  Does the way it is presented give the prospective customer the feeling of a quality program?  Will the product hold up over time?  Can it be reused repeatedly?  Are the benefits of the service sustainable over time in order to make the expense worthwhile?

Packaging- Is the product packaged in a way that it catches the eye of the prospective customer?  Does the packaging reflect other attributes of the product (functionality, quality, benefits, price, etc.)?  Does the packaging design reflect the mission of the organization as well as the product attributes?  Packaging always should be considered as a piece of advertising for both the product and the organization.

Support- Customer support is a significant product attribute for customers.  The customer wants to know that he will have support if he should have questions or problems with the product.  Is there personal support through a toll free number?  Is there email support? How about the availability of a frequently asked questions (FAQ) listing? Is there a physical location where customers can go for assistance?  Often, customers will pay a higher price if they know they will have good customer support available.

Warranty/maintenance/repairs- In addition to support, how well does the organization stand behind the quality of its product?  How comprehensive is the warranty and what is the warranty coverage period?  How easy is it to return the product to have it maintained, or to return for repair or replacement?  Not mentioning these benefits may cause a customer to shy away from the product.  Assuming all other attributes are comparable, good warranties sell products. Repeat sales come from customers who have been treated well when products have problems.  How the customer is treated when a product fails may determine if that customer makes another purchase.

Branding- How recognizable is the name of the organization or product?  Is the organization or product logo recognizable to most customers?  How powerful is the brand? Can it create a market segment such as Kleenex, Coca-Cola, Google, etc?  When you need a tissue, do you ask for a Kleenex or do you ask for a tissue?  When you are thirsty, do you ask for a cola or a Coke?  If you are searching the Internet, do you say you are searching it or are you “Googling” it?  These are all examples of extensive branding efforts that have survived the test of time.  In order that customers ask for a product by brand name, the goal is to have a brand that reflects the attributes of the products provided by the organization.

Price- Product pricing should always be developed through the collaboration of many disciplines within an organization.  Make sure that the price established will generate adequate profits or returns to the organization after all expenses, including those costs required to produce and sell the product.  Pricing strategies are key issues when developing successful marketing programs and often consume much of the marketing attention in many organizations.  Pricing schemes should include, at a minimum, the following items:

• Base Price

• Discounting

• Discrimination Pricing

Base Price- The price the organization believes is a reasonable starting point for the market they are approaching. This is often called “suggested retail price” (SRP) or “manufacturer’s suggested retail price (MSRP).  The base price is the level on which all further reductions, for whatever reason, are based.  The base price should be at a level being anticipated by the market we are attempting to penetrate.

Discounting- Discounts are price reductions that are extended under defined circumstances.  The primary reasons for providing discounts are to increase the number of units sold or to stay competitive within a price-sensitive market.  A commodity-based market is an example of a price-sensitive market.  This is true because in a commodities market there are very little product function or feature differences between sellers, so the price is the primary differentiator.

There are many ways to provide discounts that are tailored for the purpose of stimulating sales:

- Volume discount-Offering a lower price based on the larger number of product units being purchased or the total dollar volume of the order (can be retail or wholesale).

- Seasonal discount-Offering a lower price for products that will not be demanded due to entering a new season, e.g., summer clothing sales in the fall..

- Bundle discount- Offering a lower price when a customer purchases more than one product at the same time.

- Special Pricing- Offering a special price is a form of discounting that is based on a particular circumstance.  Special pricing may be offered to an organization that partners with the selling organization to cross-sell each other’s products.  Also, special pricing may be offered in a co-branding agreement, which benefits both companies promoting their products or organizations into the future.

Discrimination Pricing- Price discrimination is the process of offering the same product to different customers at different prices.  Price discrimination is done every day, and the only time it becomes visible is when someone calls attention to it.  If an organization sells its product to one organization under the exact same terms as to another organization – but for a different price – it is practicing price discrimination.

There are dangers to the selling organization for treating the organization’s customers differently.  An organization that is exposed for using this practice may lose customers due to their dissatisfaction with this inequality of pricing.  There are state and federal laws that protect consumers and organizations from pure discriminating practices, and an organization may be subject to punitive measures if found guilty of willful price discrimination.

Place- “Placing the product” implies focusing on all of the distribution components required to deliver the product to the customer.  When it comes to placing the product, there are two primary issues that may impact an organization:

• Product availability
• The cost of moving product to each market

Customers do not want to wait for a product.   Instead, they want it is stock when they are ready to purchase it.  Furthermore, organizations do not want to pay a high cost to get the product to those customers.  To balance these two issues, there are four factors that come into play. These factors include:

• Transportation

• Warehousing

• Distribution

• Order/Inventory Control

Transportation- How are the products getting to the customer, to distribution centers and to warehouses?  Which form of transportation highway, rail, air or sea is the most cost effective to satisfy the needs of the market?  Shipping by sea can be the least expensive way to move product overseas, but it may take too long to replenish inventories from the customer’s perspective.  In many cases, there can be a combination of transportation methods used, such as sending by rail to a distribution point and then trucking to the customer location.

Warehousing- Storing products as close as possible to the greatest number of prospective customers is the overall objective of warehousing.

In order to satisfy customer orders, where is the best place to store product in the most cost effective manner while meeting customer demands?

Different products have varying warehousing requirements, e.g., heavy duty equipment, electronics, perishable goods, etc.  Organizations shipping product by rail may find warehousing requirements need to include being next to the rail-line or the availability of a rail spurs to allow for more effective material- handling activities.  Long haul trucking methods for moving product cross country may require warehousing near major interstate highways.

Distribution- Developing the best distribution channel for an organization’s product is important to how an organization will market its product and to what degree.  There are four primary distribution channels. They are:

• Direct- Selling direct to customers through company stores, catalog, Internet, door-to-door, etc.

• Agents- Independent individuals or groups may sell product on behalf of the organization to customers, distributors or retailers.  Agents usually do not purchase product from the selling organization. Generally, they take orders and the selling organization fulfills those orders and pays the agent a commission or other form of compensation.

• Distributors- Independent individuals or groups that purchase the product directly from the selling organization mark up the price for their profit margin and resell to the customer. Distributors are also called wholesalers or resellers.

• Retail- Retailers buy product from the selling organization or agents of the selling organization and sell directly to the customers.

Order/Inventory Control- The order/inventory control process is essential to ensure that product orders are properly handled through delivery to the customer and that adequate quantities of product are available to fulfill orders.  Use of real-time computer systems or Internet systems can provide instantaneous communication between customers and suppliers.  Orders can easily be tracked and customers can feel more confident that their orders are going to be fulfilled properly.  Inventory control systems work through the supply chain to ensure that components and finished product quantities are managed properly so that product is available when the customer places the order.

Promotion- Promotion is the process of communicating information about the organization and its product to target markets with the goal of stimulating demand and, therefore, generating additional sales of product.  Promotion represents several different forms of marketing communication.   Key factors within the marketing communications tactics are as follows:

• Advertising

• Sales Promotion

• Public Relations

Advertising- Advertising is the method used by an organization to publicize and position products to their target market, including product launches, image and brand building.  Organizations control the content, the target audience and timing for their advertising, all with the intention of reaching the greatest number of potential customers.  Forms of advertising include media (TV, Radio, Print, etc); direct mail, brochures, car/bus signage, bill- boards, handouts, web site/web networks and a direct sales force.

Sales Promotions- Sales promotions include several communications activities that attempt to provide added value or incentives to consumers, wholesalers, retailers or other organizational customers in order to stimulate immediate sales. These efforts are an attempt to encourage product interest, product trials, and purchases. Examples of techniques used in sales promotion include event sponsorships, coupons, samples, premiums, point-of-purchase displays, contests, rebates, and give-a ways.

Public Relations- Public relations (PR) consist of a variety of activities that are intended to promote a positive relationship or image with customers and prospective customers.  Image building and maintenance is the role of public relations.  Tools used include press release announcements, trade articles, charity events or contributions, and integration with promotional activities.

Profitability- The fifth “P” of marketing is Profitability, which is calculated as the sales price minus all costs associated with creating and selling the product.  What does marketing have to do with profitability?  Everything!  Marketing people must keep all their activities geared toward the primary goal of creating demand for and the selling of a product at a price that generates the profits planned during the earliest stages of product design.  All too often, marketing people are only concerned about sales, market penetrations and customer response.  However, if all these numbers are excellent and the product is selling below profit targets, the organization will miss its profitability goals.

How does marketing make such a miscalculation?  Occasionally, marketing has full authority for pricing and discounting.  If the product base price is not set correctly or if this base price is discounted improperly, then the end results are reduced profits.  There needs to be a check and balance with leadership to ensure that pricing contributes the correct and anticipated (budgeted) profit margins.

Often, promotion and advertising activities that were planned to generate sales are deemed inadequate; and, therefore, new programs are put in place and executed at a higher price without making a change in selling price.  The effect of this tactic is lower profits.

Whether the organization has a product or a service for sale, in order to be in the most advantageous position to convert prospects into customers, the marketing department must focus its efforts on Product, Price, Place, Promotion and Profitability.

The five Ps are the core disciplines to an effective marketing function within any organization.