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. 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. Objective Understand how pervasive Marketing is and how it could be used by people other than the creative types.
- 3. The IT world in the late 1990s
- 5. What did that mean for us ? Fixed costs Revenue>>
- 6. What were our options ?
- 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. 2 – reduce costs Reduce headcount Credibility ? Find cheaper people Quality ? Reduce fixed costs Define ?
- 9. What we did: ➴ ➴ ➴ The holistic marketing framework
- 10. The holistic marketing framework « Managing a superior value chain that delivers a high level of product quality, service and speed »
- 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. 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. Customer benefits Identify new customer benefits from the customer’s view
- 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. 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. 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. Internal resources management Have control over your resources
- 19. Internal resources management 1. Increase efficiency 2. Educate and empower 3. Manage by objectives 4. Build a cohesive team
- 20. 1 – increase efficiency Time reporting for engineers ? « Hey, what did you do yesterday ? » « Yesterday ? I worked !»
- 21. 1 – increase efficiency Time reporting for engineers ? Yesterday work Yesterday administration training project 1 project 2
- 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. 1 – increase efficiency Measuring & Forecasting Without: Poor resource planning Poor financial planning No visibility on the business
- 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. 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. 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. Internal resources management 1. Increase efficiency 2. Educate and empower 3. Manage by objectives 4. Build a cohesive team
- 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. Internal resources management 1. Increase efficiency 2. Educate and empower 3. Manage by objectives 4. Build a cohesive team
- 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. Internal resources management 1. Increase efficiency 2. Educate and empower 3. Manage by objectives 4. Build a cohesive team
- 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. The results ? ➴ ➴ ➴ Billable time: from 20% to 80% Revenue: target +30% the 1st year Customer satisfaction: 4.8/5
- 34. Questions ? Thank you !