I am back to blogging after a very busy summer and fall. I hope these posts will be of value.
The other day I received a survey in the mail from service business and one of the questions asked what kind of firm I had. These were the choices:
Media Agency
Promotions Agency
Design Agency
Social Media Firm
Mobile Marketing Agency
Marketing Research Firm
Public Relations Firm
Digital-Only Agency
Marketing Consultancy
Full Service Ad Agency
Direct Marketing Agency
Digital Agency that Also Plays in Traditional Media
Guess what. Most “traditional firms – be they advertising agencies or public relations firms – are doing much if not all of the above.
PR agencies are clearly deriving good revenue from digital; digital firms are hiring PR people for content development; advertising agencies believe they should “own” social media; design firms are getting into mobile apps; research is a “must have” for almost all marketing services firms today, etc. etc. etc.
What’s an agency owner to do?
Positioning your firm and differentiating your firm from competition (all forms of it) is fast becoming job #1 for agency heads. Look to thought leadership and specialization as the only ways to truly be distinctive – and with all the noise it is becoming harder to make any point of differentiation stand out.
It is critical to devote some of your 2012 planning time to address this. To be truly competitive today, your firm has to stand for something that clients value and you have to do a great job of getting that word out.
What do you think? Is the blurring of our business an opportunity or simply a curse we all have to live with?
Friday, December 9, 2011
Tuesday, May 10, 2011
Divide Your Marketing/Sales Pie Differently
I talk to a lot of agency owners and I ask them the same question: how do you plan to grow your firm? The answers I almost always get are these:
• “Do a better job of marketing”
• “Hire a marketing director”
• “Win more new business presentations”
• “Get more referrals”
• “Make the agency an account”
Now these answers aren’t totally wrong – they are just not the right one.
What agency owners and CEOs should be saying is. “We have to do a better job of sales.”
After all isn’t business development all about selling and winning?
So why don’t I get the right answer? I think it is because many people are confused about the difference between sales and marketing. So here are my definitions:
Marketing: The process of making a “universe” of potential business prospects know more about your firm and how you think
Sales: The process of persuading a potential customer to buy your services
Now where would you put the emphasis?
From now on divide your sales and marketing “time pie” differently – 75% of your time on sales and 25% of your time on marketing.
Making the time commitment is only the very first step of the sales challenge. I’ll be addressing other challenges and offering potential solutions in future postings.
• “Do a better job of marketing”
• “Hire a marketing director”
• “Win more new business presentations”
• “Get more referrals”
• “Make the agency an account”
Now these answers aren’t totally wrong – they are just not the right one.
What agency owners and CEOs should be saying is. “We have to do a better job of sales.”
After all isn’t business development all about selling and winning?
So why don’t I get the right answer? I think it is because many people are confused about the difference between sales and marketing. So here are my definitions:
Marketing: The process of making a “universe” of potential business prospects know more about your firm and how you think
Sales: The process of persuading a potential customer to buy your services
Now where would you put the emphasis?
From now on divide your sales and marketing “time pie” differently – 75% of your time on sales and 25% of your time on marketing.
Making the time commitment is only the very first step of the sales challenge. I’ll be addressing other challenges and offering potential solutions in future postings.
Tuesday, January 11, 2011
Agency Owners: Avoid This Mistake!
New business is the lifeblood of any public relations or marketing communications firm. Finding prospects and converting them into new clients is normally the #1 need for most firms. Today’s economic uncertainties make this an even more pressing need.
However, ask most owners how they plan grow and win new clients and they answer, “By doing a better job of marketing.”
What they should say is “By doing a better job of selling.”
As both a former agency leader and current adviser to PR and marketing firms, I believe that most agency leaders confuse sales and marketing and as a result lack a real sales strategy to win business. And, a sales strategy is not just a list of potential new business opportunities,a training program to make your people better presenters, or more impacful PowerPoints.
Here‘s what I mean. For many (perhaps most) agency owners, one of their biggest gripes is the lack of an effective marketing program to make that proverbial phone ring off the hook, generate more referrals and ideally stimulate prospects to simply award them the business.
Do the words “positioning”; “messaging”; new website; “USP”; recognition; reputation; etc. ring a bell? These are the words agency owners often use when either trying to fix their marketing effort or launch a new one.
The reasoning is simple: the better known (and known for the right reasons) the more likely we are to attract potential clients. Once they get to us we can “sell” them. And, they are not wrong – just a little misguided that this is the primary solution to their growth issues.
I believe that the real solution to growth lies with the right kind of sales strategy supported by a complimentary marketing program – not the other way around. If you know to whom you are selling, what they have bought in the past or could be buying now, and what you can offer them that competition cannot, then you have the basis for a strategic sales development program.
Do you have a sales strategy or just simply a marketing strategy? Or, perhaps neither.
However, ask most owners how they plan grow and win new clients and they answer, “By doing a better job of marketing.”
What they should say is “By doing a better job of selling.”
As both a former agency leader and current adviser to PR and marketing firms, I believe that most agency leaders confuse sales and marketing and as a result lack a real sales strategy to win business. And, a sales strategy is not just a list of potential new business opportunities,a training program to make your people better presenters, or more impacful PowerPoints.
Here‘s what I mean. For many (perhaps most) agency owners, one of their biggest gripes is the lack of an effective marketing program to make that proverbial phone ring off the hook, generate more referrals and ideally stimulate prospects to simply award them the business.
Do the words “positioning”; “messaging”; new website; “USP”; recognition; reputation; etc. ring a bell? These are the words agency owners often use when either trying to fix their marketing effort or launch a new one.
The reasoning is simple: the better known (and known for the right reasons) the more likely we are to attract potential clients. Once they get to us we can “sell” them. And, they are not wrong – just a little misguided that this is the primary solution to their growth issues.
I believe that the real solution to growth lies with the right kind of sales strategy supported by a complimentary marketing program – not the other way around. If you know to whom you are selling, what they have bought in the past or could be buying now, and what you can offer them that competition cannot, then you have the basis for a strategic sales development program.
Do you have a sales strategy or just simply a marketing strategy? Or, perhaps neither.
Thursday, January 6, 2011
New Revenue Generator for PR Firms?
After reading Steve Cody’s entertaining and thoughtful RepMan blog the other morning, it just confirmed my feeling that helping clients develop outstanding customer service programs could be a big new revenue generator for public relations firms. It’s wonderful to improve one’s own client relationships – but why stop there.
Great agencies are always looking for new ways to become more valuable to their clients – and increase budgets at the same time. Harold Burson has said that the chief internal public relations officer must be the conscience of the company. Well, how about the public relations firm becoming the conscience of their client’s customer relations function?
It’s possible. Agencies need strong client relationships at senior levels to sell-in their value and expertise to the right decision-maker; true expertise (e.g. someone who’s been there/done that for a corporation) to give it credibility and knowledge of best practices; and the creativity to develop programs that improve what has to be one of the weakest areas of company/brand/user communication.
Here are just a few possibilities for agency customer service programs for their clients:
• A Customer Service Assessment Program to develop new policies and procedures based on an in-depth audit of the customer relations function (agencies help clients develop social media policies, why not customer relations policies).
• Customer relations training (agencies “train” clients for a variety of needs already. This becomes one more training tool in your toolbox).
• Role playing workshops and involvement programs with a client’s CR managers/staff
• Strategic integration of social media tools (e.g. twitter) with the customer relations function.
• Strategic counseling in the agency’s role as “customer relations conscience.”
• “Mystery” customer programs to assess and measure impact.
These are but a few. And they may not be the right ones. There are a number of great corporations who put a premium on excellent customer relations. Study them and adapt their techniques to your clients.
Be one of the first to carve out a niche specialty in customer relations communication.
Great agencies are always looking for new ways to become more valuable to their clients – and increase budgets at the same time. Harold Burson has said that the chief internal public relations officer must be the conscience of the company. Well, how about the public relations firm becoming the conscience of their client’s customer relations function?
It’s possible. Agencies need strong client relationships at senior levels to sell-in their value and expertise to the right decision-maker; true expertise (e.g. someone who’s been there/done that for a corporation) to give it credibility and knowledge of best practices; and the creativity to develop programs that improve what has to be one of the weakest areas of company/brand/user communication.
Here are just a few possibilities for agency customer service programs for their clients:
• A Customer Service Assessment Program to develop new policies and procedures based on an in-depth audit of the customer relations function (agencies help clients develop social media policies, why not customer relations policies).
• Customer relations training (agencies “train” clients for a variety of needs already. This becomes one more training tool in your toolbox).
• Role playing workshops and involvement programs with a client’s CR managers/staff
• Strategic integration of social media tools (e.g. twitter) with the customer relations function.
• Strategic counseling in the agency’s role as “customer relations conscience.”
• “Mystery” customer programs to assess and measure impact.
These are but a few. And they may not be the right ones. There are a number of great corporations who put a premium on excellent customer relations. Study them and adapt their techniques to your clients.
Be one of the first to carve out a niche specialty in customer relations communication.
Wednesday, November 24, 2010
A Thanksgiving and New Year's Wish
The end of November is a time to remember
We give thanks and good cheer for the good times this year
Put your worries aside give a smile so wide
Say thanks for your turkey say bye to things murky
Drumsticks, stuffing, carrots, and such
Fill up your plate but don’t eat too much
Save room for the pie and also the thought
That all that has happened has not been for naught
We learn, we improve, and also we grow
Year end is approaching that much I know
So here’s a combined wish for all that can hear
Happy T-Day, C-Day, H-Day, K-Day, and a healthy New Year
We give thanks and good cheer for the good times this year
Put your worries aside give a smile so wide
Say thanks for your turkey say bye to things murky
Drumsticks, stuffing, carrots, and such
Fill up your plate but don’t eat too much
Save room for the pie and also the thought
That all that has happened has not been for naught
We learn, we improve, and also we grow
Year end is approaching that much I know
So here’s a combined wish for all that can hear
Happy T-Day, C-Day, H-Day, K-Day, and a healthy New Year
Thursday, October 28, 2010
10 Things That Bug Me
Here are a few of my favorite pet peeves practiced diligently by too many people.
1. Not returning phone calls or emails from people you know or who are not pestering you. No excuse for being rude.
2. Sending an email, which invites a response, and then not answering your phone one minute later.
3. Using this cliché excuse for not responding to a phone call or email: “I didn’t have time”; or “I was so busy.” A simple acknowledgment takes 15 seconds!
4. Asking for a proposal and then disappearing into a “black hole” never to be heard from again.
5. Giving advice for free and then complaining that no one wants to pay for it.
6. Being afraid to work on themselves to become a better leader, manager or just a better person. What are they afraid of finding out?
7. Believing so strongly in one political side or the other that they can’t possibly see any middle ground.
8. Always finding a reason (or making excuses) not to do something that they really need to do.
9. Not understanding the basics of customer service and so there isn’t any.
10. Letting bureaucratic policy get in the way of good common sense.
What about you? What really bugs you?
1. Not returning phone calls or emails from people you know or who are not pestering you. No excuse for being rude.
2. Sending an email, which invites a response, and then not answering your phone one minute later.
3. Using this cliché excuse for not responding to a phone call or email: “I didn’t have time”; or “I was so busy.” A simple acknowledgment takes 15 seconds!
4. Asking for a proposal and then disappearing into a “black hole” never to be heard from again.
5. Giving advice for free and then complaining that no one wants to pay for it.
6. Being afraid to work on themselves to become a better leader, manager or just a better person. What are they afraid of finding out?
7. Believing so strongly in one political side or the other that they can’t possibly see any middle ground.
8. Always finding a reason (or making excuses) not to do something that they really need to do.
9. Not understanding the basics of customer service and so there isn’t any.
10. Letting bureaucratic policy get in the way of good common sense.
What about you? What really bugs you?
Thursday, September 23, 2010
Get Rid of Destructive Employees -- Now!
Apart from financial performance, smart agency owners know that success in the agency business (e.g. new clients, great work, industry reputation, awards) is based on:
• People
• Chemistry
• Relationships
• Teamwork
• Collegiality
I am sure there are some “successful” firms that turn a blind eye to internal flare-ups, disrespect of colleagues, berating team members, constant complaining, etc., but who the hell would want to work there?
Have you ever had a “destructive” employee? Moreover, have you ever had a destructive employee on your management team?
Unfortunately, some of the most destructive employees (particularly the senior ones) are often among your most valuable. They do great work; certain clients love them; they are aggressive in their pursuit of business, and they are vocal in their ideas on how to make your firm better.
After experiencing several such destructive “stars” when I was in the agency business, and having seen how they have affected some of the agencies I now consult with, I can say unequivocally – get rid of them.
They will bring your firm down not up; they will spur others to leave; they will ultimately create client problems, and they will frustrate your efforts to make your firm a great place in which to work.
Any destructive employee “horror” stories you care to share?
• People
• Chemistry
• Relationships
• Teamwork
• Collegiality
I am sure there are some “successful” firms that turn a blind eye to internal flare-ups, disrespect of colleagues, berating team members, constant complaining, etc., but who the hell would want to work there?
Have you ever had a “destructive” employee? Moreover, have you ever had a destructive employee on your management team?
Unfortunately, some of the most destructive employees (particularly the senior ones) are often among your most valuable. They do great work; certain clients love them; they are aggressive in their pursuit of business, and they are vocal in their ideas on how to make your firm better.
After experiencing several such destructive “stars” when I was in the agency business, and having seen how they have affected some of the agencies I now consult with, I can say unequivocally – get rid of them.
They will bring your firm down not up; they will spur others to leave; they will ultimately create client problems, and they will frustrate your efforts to make your firm a great place in which to work.
Any destructive employee “horror” stories you care to share?
Monday, August 30, 2010
30-60-90 hike!
Guess what sports fans? It’s almost football season. The sports talk airwaves are filled with football speak – preseason college rankings, upset specials, NFL preseason games, etc.
Pretty soon we’ll be hearing field microphones capturing the quarterback’s “hut one, hut two, hut three” hike calls.
I’ve got my own version of the quarterback barking signals over the center, and it’s called “30-60-90 hike.”
If you are an agency owner, CEO or COO it’s that time of year to get serious about the next 90 days. And, if you are, you’ll be able to enjoy the last 30 – December – with less stress than normal.
Here’s what I suggest to my clients:
Create specific goals for the next 30 days; the next 60 days; and the next 90 days. Make the commitment to achieve those in the time frame you set. Take a measure of what you have achieved after each 30-day period.
You will be surprised at much you can accomplish if you set achievable goals that move you and your agency forward.
Your 2011 revenue goals will be, in part, dependent on how much new business you can generate in the last third of this year. So, as you create your goals make proactive business development a priority.
Pretty soon we’ll be hearing field microphones capturing the quarterback’s “hut one, hut two, hut three” hike calls.
I’ve got my own version of the quarterback barking signals over the center, and it’s called “30-60-90 hike.”
If you are an agency owner, CEO or COO it’s that time of year to get serious about the next 90 days. And, if you are, you’ll be able to enjoy the last 30 – December – with less stress than normal.
Here’s what I suggest to my clients:
Create specific goals for the next 30 days; the next 60 days; and the next 90 days. Make the commitment to achieve those in the time frame you set. Take a measure of what you have achieved after each 30-day period.
You will be surprised at much you can accomplish if you set achievable goals that move you and your agency forward.
Your 2011 revenue goals will be, in part, dependent on how much new business you can generate in the last third of this year. So, as you create your goals make proactive business development a priority.
Tuesday, August 24, 2010
Where's Your Marketing?
I just read an article in Advertising Age, “How Social Media Is Helping Public-Relations Sector Not Just Survive, but Thrive”.
It is an interesting piece about how public relations firms are capitalizing on their inherent strategic thinking and social media expertise to develop innovative, result-oriented programs for clients and helping the industry rebound quickly from the recession.
I have only one issue with the story. Look who’s cited and quoted: Edelman, Omnicom (parent of Ketchum, Fleishman and Porter Novelli), Interpublic (which owns Weber Shandwick, Golin Harris and MWW), and Hill & Knowlton.
We all know that excellence in social media/marketing programs are not the province of the big global firms – so why are there no small or mid-size firms mentioned. The easy answer may be that none of you are advertisers in Advertising Age.
Yet, I wonder, how many of you out there have even thought about trying to interest Ad Age in even doing a story? If, like many firms, you want bigger clients, bigger brands and bigger budgets, what are you doing from a marketing standpoint to make those prospective clients aware that you exist?
Shouldn’t traditional public relations (read print publicity) still have a place in your marketing mix?
It is an interesting piece about how public relations firms are capitalizing on their inherent strategic thinking and social media expertise to develop innovative, result-oriented programs for clients and helping the industry rebound quickly from the recession.
I have only one issue with the story. Look who’s cited and quoted: Edelman, Omnicom (parent of Ketchum, Fleishman and Porter Novelli), Interpublic (which owns Weber Shandwick, Golin Harris and MWW), and Hill & Knowlton.
We all know that excellence in social media/marketing programs are not the province of the big global firms – so why are there no small or mid-size firms mentioned. The easy answer may be that none of you are advertisers in Advertising Age.
Yet, I wonder, how many of you out there have even thought about trying to interest Ad Age in even doing a story? If, like many firms, you want bigger clients, bigger brands and bigger budgets, what are you doing from a marketing standpoint to make those prospective clients aware that you exist?
Shouldn’t traditional public relations (read print publicity) still have a place in your marketing mix?
Thursday, August 19, 2010
Turn Around -- Sept. 1 is Gaining on You
Turn around. September 1 is gaining on you.
What’s so special about September 1?
It marks my official start to the last 1/3 of the year. Most people think about the last quarter – I suggest you start to think about your business in thirds.
January-April:
• jump-starting new clients
• launching new programs for existing clients
• executing your business plan or (in January) developing your new one
• active business development and marketing
• investing in the business
• revising your operating budget based on current results
May-August:
• keeping the proactive business development and marketing going
• taking a critical assessment of the first six-eight months and revising your plans accordingly
• conducting formal client reviews
• continuing your rolling budget review
• adding new resources
• preparing for the stretch run to December
September-December: you are entering one of the most critical periods of the year. This is the time frame that can make or break the following year. Develop a four-month plan for success.
• winning business that will carry over to next year
• reviewing your stars’ career development track, and keeping them motivated and enthused
• addressing client vulnerabilities and opportunities with additional client review sessions
• selling in new services to achieve stretch goals
• beginning to plan for the following year
September 1 is almost here.
What are you doing to prepare for this critical 1/3 of your year?
What’s so special about September 1?
It marks my official start to the last 1/3 of the year. Most people think about the last quarter – I suggest you start to think about your business in thirds.
January-April:
• jump-starting new clients
• launching new programs for existing clients
• executing your business plan or (in January) developing your new one
• active business development and marketing
• investing in the business
• revising your operating budget based on current results
May-August:
• keeping the proactive business development and marketing going
• taking a critical assessment of the first six-eight months and revising your plans accordingly
• conducting formal client reviews
• continuing your rolling budget review
• adding new resources
• preparing for the stretch run to December
September-December: you are entering one of the most critical periods of the year. This is the time frame that can make or break the following year. Develop a four-month plan for success.
• winning business that will carry over to next year
• reviewing your stars’ career development track, and keeping them motivated and enthused
• addressing client vulnerabilities and opportunities with additional client review sessions
• selling in new services to achieve stretch goals
• beginning to plan for the following year
September 1 is almost here.
What are you doing to prepare for this critical 1/3 of your year?
Tuesday, June 8, 2010
Six Strategies for the Next Six Months
I recently returned from several days in Asheville, NC where I attended the 2010 Counselors Academy Spring Conference.
I love going to the conference and I have attended perhaps 20 of them over the years. I consider myself a Counselor’s regular.
I have been fortunate to present at breakout sessions and breakfast roundtables. This past Conference I facilitated a roundtable on strategies that agencies should be using over the rest of the year. I identified six that I cited:
1. Critically assess the first half-year
I’ll be going into more detail on all of these in coming posts.
What other strategies would you add to this list.?
I love going to the conference and I have attended perhaps 20 of them over the years. I consider myself a Counselor’s regular.
I have been fortunate to present at breakout sessions and breakfast roundtables. This past Conference I facilitated a roundtable on strategies that agencies should be using over the rest of the year. I identified six that I cited:
1. Critically assess the first half-year
- What have we learned?
- What must we do differently?
- Or develop one if you don’t have one
- Start thinking like a salesperson not just a marketer
- Conduct formal account reviews with all key clients
- Over communicate
- Do you have a clear and compelling vision of the firm you want to become?
I’ll be going into more detail on all of these in coming posts.
What other strategies would you add to this list.?
Friday, March 12, 2010
Get out of Your Office
I have been very fortunate this first quarter to have facilitated 2010 planning retreats for two agencies. One was in Miami Beach (South Beach) and the other in San Juan. One client was based in New York and the other in Massachusetts.
The retreats were great. Good business meetings and great bonding among the staffs.
Why did each firm choose to “get out of their offices” and head south? Several reasons: warmer weather, an opportunity to “reward” their staffs after a tough but successful 2009, but third, a chance to spend quality time on their business without the normal distractions of phone calls and emails. Ironically, both firms did have to work on major new business proposals but they were able to successfully do that without interrupting our meetings.
While most firms conduct their new year’s planning late 4th quarter or early 1st quarter, think about the value of mid-year management or staff retreats as well.
Here are some benefits to consider:
• The opportunity to critically assess the first half of the year and make changes as necessary
• The opportunity to recharge your business development or marketing efforts if they haven’t paid off like you hoped
• The opportunity to decide on staffing adjustments or new additions
• The opportunity to set new financial goals, including new stretch goals
• The opportunity to reward your people for their efforts
Not all agency retreats need be in a resort setting. But, they should be out of your office. Take a hotel room down the street; go to a nearby city, or convene at someone’s home.
Working on your business instead of just in your business is a critical leadership requirement. Tough on a daily basis unless you plan for it. Agency retreats are way to do just that.
So, as Nike says, just do it. It will be well worth the effort and cost.
The retreats were great. Good business meetings and great bonding among the staffs.
Why did each firm choose to “get out of their offices” and head south? Several reasons: warmer weather, an opportunity to “reward” their staffs after a tough but successful 2009, but third, a chance to spend quality time on their business without the normal distractions of phone calls and emails. Ironically, both firms did have to work on major new business proposals but they were able to successfully do that without interrupting our meetings.
While most firms conduct their new year’s planning late 4th quarter or early 1st quarter, think about the value of mid-year management or staff retreats as well.
Here are some benefits to consider:
• The opportunity to critically assess the first half of the year and make changes as necessary
• The opportunity to recharge your business development or marketing efforts if they haven’t paid off like you hoped
• The opportunity to decide on staffing adjustments or new additions
• The opportunity to set new financial goals, including new stretch goals
• The opportunity to reward your people for their efforts
Not all agency retreats need be in a resort setting. But, they should be out of your office. Take a hotel room down the street; go to a nearby city, or convene at someone’s home.
Working on your business instead of just in your business is a critical leadership requirement. Tough on a daily basis unless you plan for it. Agency retreats are way to do just that.
So, as Nike says, just do it. It will be well worth the effort and cost.
Tuesday, February 16, 2010
Part 6: Positioning Your Agency for 2010 Success
Here are the first five key strategies for your success in 2010:
1. Critically assess 2009
2. Revisit your firm’s vision and strategies to get there
3. Critically evaluate your client relationships and your work
4. Develop a smarter new business and marketing strategy
5. Keep your stars motivated and invest in the next one
Now, number six – one of the most neglected strategies for success.
Strategy 6: Commit to and develop a formal business plan and operating budget consistent with your vision
I’ve been fortunate to help firms develop their business plans for the year and I can tell you without question that it is an important step in ensuring a successful year.
A well-crafted business plan:
• Provides a framework for decision-making
• Takes the guesswork out setting priorities
• Creates a context for investments, new hires, and new service offerings
Start by analyzing the competitive landscape and what your clients are saying. Where are the opportunities to accelerate your agency’s growth? What did you learn from your assessment of last year? How has your vision changed?
By the way, if you don’t do personalized (by telephone) surveys of your clients each year, you should. Clients will tell you a lot about how you’re doing and what you need to be doing better. Consider an outsider rather than agency leadership to conduct the survey.
In your plan, include new services, service enhancements, and new agency “products”. Identify staffing needs and changes. From your prior year’s assessment, specify internal changes you need to make to the way you conduct, manage or operate your business. Remember, this is a plan you intend to execute – so be brutally realistic and honest.
Include your marketing and business development action plans as part of the overall agency business plan.
Finally, develop a formal operating budget for the year that reflects the actions you’ve specified in your plan. Budget for new hires and any new investments when you believe they will occur. Review your budget monthly against your P&L and adjust the budget as necessary to deliver your profit margin goal.
There you have it: 6 key steps to success in 2010. If you commit to follow these strategies you are well are on your way to a great 2010.
What are your key strategies for success? Are there some I’ve missed?
1. Critically assess 2009
2. Revisit your firm’s vision and strategies to get there
3. Critically evaluate your client relationships and your work
4. Develop a smarter new business and marketing strategy
5. Keep your stars motivated and invest in the next one
Now, number six – one of the most neglected strategies for success.
Strategy 6: Commit to and develop a formal business plan and operating budget consistent with your vision
I’ve been fortunate to help firms develop their business plans for the year and I can tell you without question that it is an important step in ensuring a successful year.
A well-crafted business plan:
• Provides a framework for decision-making
• Takes the guesswork out setting priorities
• Creates a context for investments, new hires, and new service offerings
Start by analyzing the competitive landscape and what your clients are saying. Where are the opportunities to accelerate your agency’s growth? What did you learn from your assessment of last year? How has your vision changed?
By the way, if you don’t do personalized (by telephone) surveys of your clients each year, you should. Clients will tell you a lot about how you’re doing and what you need to be doing better. Consider an outsider rather than agency leadership to conduct the survey.
In your plan, include new services, service enhancements, and new agency “products”. Identify staffing needs and changes. From your prior year’s assessment, specify internal changes you need to make to the way you conduct, manage or operate your business. Remember, this is a plan you intend to execute – so be brutally realistic and honest.
Include your marketing and business development action plans as part of the overall agency business plan.
Finally, develop a formal operating budget for the year that reflects the actions you’ve specified in your plan. Budget for new hires and any new investments when you believe they will occur. Review your budget monthly against your P&L and adjust the budget as necessary to deliver your profit margin goal.
There you have it: 6 key steps to success in 2010. If you commit to follow these strategies you are well are on your way to a great 2010.
What are your key strategies for success? Are there some I’ve missed?
Friday, January 15, 2010
Positioning Your Agency for 2010 Success – Part 5
My fifth strategy for success in 2010 involves your people.
I used to hear this all the time at Burson Marsteller: “our most important products go down the elevator everyday”.
I’m a big believer in stars. People drive success.
As a leader you and your senior team must:
• Motivate and retain your current stars
• Hire new stars for every new position
In 2002, as we began to emerge from the last recession, I wrote an article for PRWeek in which I predicted that “job switching, the inevitable curse of good times in the agency business” was a gathering storm that was moving closer.
Be prepared – it is going to happen again. So, as we enter the New Year, commit to keeping your current stars motivated.
• Over-communicate – let them know what‘s happening (both positive and negative) so they feel a part of the firm they’ve committed to. Being secretive is a disaster recipe.
• Be transparent – share your financials and help them learn the business side of your firm. It will help better understand their clients’ business and it will give them a greater sense of their role in ensuring the financial health of your firm.
• Listen and learn – I once had a boss who said if I don’t ask people how they’re feeling, I won’t ever have to hear them complain. What a sad commentary on leadership. Your stars keep a pulse on the firm. Keep a pulse on them. Find out how they are feeling and what they need from you.
And, in terms of your 2010 planning, find the next star; invest in that person now – ahead of the business if you can. Harold Burson used to say, “find me the next star, and they’ll be fully billable in six weeks.” Everyone wants to work with a star; stars attract business. They will make your firm better.
Don’t settle for good. Find great.
Remember, motivation cannot be delegated. Attend meetings you used to pass up; open your door and your phone lines; practice walking-the-halls management; get instant feedback; always stress what’s in it for them and share your vision – for the nest quarter, the coming year, and the future.
Other ideas?
I used to hear this all the time at Burson Marsteller: “our most important products go down the elevator everyday”.
I’m a big believer in stars. People drive success.
As a leader you and your senior team must:
• Motivate and retain your current stars
• Hire new stars for every new position
In 2002, as we began to emerge from the last recession, I wrote an article for PRWeek in which I predicted that “job switching, the inevitable curse of good times in the agency business” was a gathering storm that was moving closer.
Be prepared – it is going to happen again. So, as we enter the New Year, commit to keeping your current stars motivated.
• Over-communicate – let them know what‘s happening (both positive and negative) so they feel a part of the firm they’ve committed to. Being secretive is a disaster recipe.
• Be transparent – share your financials and help them learn the business side of your firm. It will help better understand their clients’ business and it will give them a greater sense of their role in ensuring the financial health of your firm.
• Listen and learn – I once had a boss who said if I don’t ask people how they’re feeling, I won’t ever have to hear them complain. What a sad commentary on leadership. Your stars keep a pulse on the firm. Keep a pulse on them. Find out how they are feeling and what they need from you.
And, in terms of your 2010 planning, find the next star; invest in that person now – ahead of the business if you can. Harold Burson used to say, “find me the next star, and they’ll be fully billable in six weeks.” Everyone wants to work with a star; stars attract business. They will make your firm better.
Don’t settle for good. Find great.
Remember, motivation cannot be delegated. Attend meetings you used to pass up; open your door and your phone lines; practice walking-the-halls management; get instant feedback; always stress what’s in it for them and share your vision – for the nest quarter, the coming year, and the future.
Other ideas?
Friday, December 4, 2009
Part 4: 2010 Success -- New Business
In parts one, two, and three, we stressed the importance of taking a critical assessment of 2009, revisiting or creating your vision for the firm you want to become, and evaluating and maximizing your client relationships.
These are all critical components of becoming more successful in 2010. But, as we all know new business is the lifeblood of all successful firms. So here are some ways to make your 2010 new business effort more effective.
1. Assess what’s working and what hasn’t worked. Take a critical look back at the plan you developed and create a simple list of those tactics that were successful. Commit to doing more of that in 2010.
2. Review what you learned from your new business wins and losses during the year. Are you building relationships with the prospects? Have you really made the effort to be smart about the prospect’s business and communication need? Are you delivering “cookie-cutter presentations and proposals? Have there been “chemistry” problems?
3. Have an “outsider” review your agency’s capabilities presentation. Is it dull? Are you using latest presentation techniques? Are you committed to “creative theater” – making your presentations fun and demonstrating your creativity as an agency?
4. Evaluate your marketing efforts. Do you have a formal plan? Do you have an adequate budget? Whom are you reaching? How are they responding? What do you need to be doing differently in 2010?
5. Identify new potential targets, including your “dream” clients – clients you would “die” to have on your client list. Create an action plan for each one – a simple series of actions designed to get an introduction, a referral or ideally a meeting. Remember “six degrees of separation”. Who do you know that knows someone (who may know someone) at the prospect organization”? I guarantee you will be able to make a connection to your ideal clients.
Many agencies have hired business development specialists either on a full or part-time basis to lead their new business efforts. Consider whether this is a smart strategy for your firm.
What other ideas do you have for new business success in 2010?
These are all critical components of becoming more successful in 2010. But, as we all know new business is the lifeblood of all successful firms. So here are some ways to make your 2010 new business effort more effective.
1. Assess what’s working and what hasn’t worked. Take a critical look back at the plan you developed and create a simple list of those tactics that were successful. Commit to doing more of that in 2010.
2. Review what you learned from your new business wins and losses during the year. Are you building relationships with the prospects? Have you really made the effort to be smart about the prospect’s business and communication need? Are you delivering “cookie-cutter presentations and proposals? Have there been “chemistry” problems?
3. Have an “outsider” review your agency’s capabilities presentation. Is it dull? Are you using latest presentation techniques? Are you committed to “creative theater” – making your presentations fun and demonstrating your creativity as an agency?
4. Evaluate your marketing efforts. Do you have a formal plan? Do you have an adequate budget? Whom are you reaching? How are they responding? What do you need to be doing differently in 2010?
5. Identify new potential targets, including your “dream” clients – clients you would “die” to have on your client list. Create an action plan for each one – a simple series of actions designed to get an introduction, a referral or ideally a meeting. Remember “six degrees of separation”. Who do you know that knows someone (who may know someone) at the prospect organization”? I guarantee you will be able to make a connection to your ideal clients.
Many agencies have hired business development specialists either on a full or part-time basis to lead their new business efforts. Consider whether this is a smart strategy for your firm.
What other ideas do you have for new business success in 2010?
Wednesday, October 28, 2009
Part 3: Positioning Your Agency for 2010 Success
One of the most important aspects of your 2010 planning should be a critical evaluation of your relationships and work for your major clients.
I grew up in Burson-Marsteller, where formal account reviews were part of the fabric of the culture that made Burson a great firm.
It doesn’t matter how small (or large) your firm is, account reviews must be an integral part of your business planning. And, what better time than now as many companies are beginning to plan and establish marketing communications and public relations budgets for 2010.
Besides, how can you create your agency’s revenue goals without having a good handle on the revenue you can expect from your current clients?
While new business is the lifeblood of all agencies, organic growth from your existing clients is the easiest new business you will ever get. Yet, too many firms are concerned more with “just doing the work” than with building the relationships and uncovering new opportunities that will add revenue to the firm.
That’s where the account review comes in.
When I work with agencies on account reviews, we go through a structured process that answers the following questions, among others:
• A critical assessment of the work you did this past year and whether you really achieved the objectives and if not, why not? Where is the agency vulnerable?
• A financial review. Did fees increase or decrease? Was the account profitable? Why?
• Key challenges the client faces now and in 2010.
• What new ideas if implemented would have the greatest impact on the client’s business?
• How do you rate your client relationships? With whom must you build relationships in 2010 and how will you go about it?
• How do the key client contacts perceive the agency? Do you need to change that perception?
• Do you have the right staffing mix?
The account review can be an important part of your success in 2010. It eliminates surprises, helps you develop new ideas for new budgets, and creates a plan to build or reinforce key relationships.
I grew up in Burson-Marsteller, where formal account reviews were part of the fabric of the culture that made Burson a great firm.
It doesn’t matter how small (or large) your firm is, account reviews must be an integral part of your business planning. And, what better time than now as many companies are beginning to plan and establish marketing communications and public relations budgets for 2010.
Besides, how can you create your agency’s revenue goals without having a good handle on the revenue you can expect from your current clients?
While new business is the lifeblood of all agencies, organic growth from your existing clients is the easiest new business you will ever get. Yet, too many firms are concerned more with “just doing the work” than with building the relationships and uncovering new opportunities that will add revenue to the firm.
That’s where the account review comes in.
When I work with agencies on account reviews, we go through a structured process that answers the following questions, among others:
• A critical assessment of the work you did this past year and whether you really achieved the objectives and if not, why not? Where is the agency vulnerable?
• A financial review. Did fees increase or decrease? Was the account profitable? Why?
• Key challenges the client faces now and in 2010.
• What new ideas if implemented would have the greatest impact on the client’s business?
• How do you rate your client relationships? With whom must you build relationships in 2010 and how will you go about it?
• How do the key client contacts perceive the agency? Do you need to change that perception?
• Do you have the right staffing mix?
The account review can be an important part of your success in 2010. It eliminates surprises, helps you develop new ideas for new budgets, and creates a plan to build or reinforce key relationships.
Friday, October 16, 2009
Positioning Your Agency for 2010 Success -- Part 2
As I said in Part 1, it is not too early to start your planning for 2010. In fact, it is never too early to start thinking ahead about where you want your firm to be in the next 3 months, 6 months, year, or even three years.
This is called working “on” your business, not “in” your business. So, here’s my second critical strategy for success in 2010.
Strategy 2: Revisit Your Firm’s Vision and the Strategies to Get There
Once you’ve assessed 2009 and captured critical insights, start thinking about 2010. For me the first step in business planning is to understand how next year’s plan will move the firm toward what you want your agency to become. I’m not talking about meeting financial goals (though that’s obviously a key need), but rather your vision of the firm you want to create.
When you started your firm you had a vision even if you didn’t call it that. What’s happened to that vision? Still valid? Needs to be reassessed? Already achieved it? Not possible?
Having a clear and compelling vision of the firm you want to “become” is the cornerstone of a great agency and the hallmark of great leadership. It is also a vital step in successful and meaningful business planning.
I have conducted visioning sessions and strategy sessions for more than 25 firms and I can assure you unless you have a roadmap – a guide – for where you want to end up and how you will get there, the journey will be so much harder.
“Most companies fail in their growth because they don’t have a vision,” says former Southwest Airlines CEO Howard Putnam. “When you have a vision and someone comes to you with some convoluted idea, you can hold it up to the vision and ask ‘Does it fit? Does it fly? If not, don’t bother me.’”
It worked for Southwest and scores of other major corporations – and it has worked for agencies both large and small.
Here are some criteria for a vision:
• It must be realistic, yet idealistic and cannot be achieved without “stretching”.
• It is aspirational – future-oriented. A vision is not today; it is tomorrow.
• It must be attractive to you your staff. They must want to be a part of it.
• It provides direction for the future in succinct, often competitive terms.
• Most importantly, your vision must be specific enough to become a filter for key decision-making.
Commit to making every major decision in 2010 -- staffing, resources, investments, new business, marketing, etc., -- one that propels your firm towards your vision.
Once you have the vision that excites you and your team, begin to identify the strategies over time to get there. Make it a three-year horizon. As you begin your 2010 planning, review and prioritize these strategies and build in next year’s strategies into your actual business plan.
Finally, identify the barriers to achieving those strategies, specify how you will overcome each and then commit to overcoming them in 2010.
This is called working “on” your business, not “in” your business. So, here’s my second critical strategy for success in 2010.
Strategy 2: Revisit Your Firm’s Vision and the Strategies to Get There
Once you’ve assessed 2009 and captured critical insights, start thinking about 2010. For me the first step in business planning is to understand how next year’s plan will move the firm toward what you want your agency to become. I’m not talking about meeting financial goals (though that’s obviously a key need), but rather your vision of the firm you want to create.
When you started your firm you had a vision even if you didn’t call it that. What’s happened to that vision? Still valid? Needs to be reassessed? Already achieved it? Not possible?
Having a clear and compelling vision of the firm you want to “become” is the cornerstone of a great agency and the hallmark of great leadership. It is also a vital step in successful and meaningful business planning.
I have conducted visioning sessions and strategy sessions for more than 25 firms and I can assure you unless you have a roadmap – a guide – for where you want to end up and how you will get there, the journey will be so much harder.
“Most companies fail in their growth because they don’t have a vision,” says former Southwest Airlines CEO Howard Putnam. “When you have a vision and someone comes to you with some convoluted idea, you can hold it up to the vision and ask ‘Does it fit? Does it fly? If not, don’t bother me.’”
It worked for Southwest and scores of other major corporations – and it has worked for agencies both large and small.
Here are some criteria for a vision:
• It must be realistic, yet idealistic and cannot be achieved without “stretching”.
• It is aspirational – future-oriented. A vision is not today; it is tomorrow.
• It must be attractive to you your staff. They must want to be a part of it.
• It provides direction for the future in succinct, often competitive terms.
• Most importantly, your vision must be specific enough to become a filter for key decision-making.
Commit to making every major decision in 2010 -- staffing, resources, investments, new business, marketing, etc., -- one that propels your firm towards your vision.
Once you have the vision that excites you and your team, begin to identify the strategies over time to get there. Make it a three-year horizon. As you begin your 2010 planning, review and prioritize these strategies and build in next year’s strategies into your actual business plan.
Finally, identify the barriers to achieving those strategies, specify how you will overcome each and then commit to overcoming them in 2010.
Thursday, October 8, 2009
Positioning Your Agency for 2010 Success -- Part 1
What’s the old saying – the early bird catches the worm? I think it’s true for agencies too.
Now is the time when many forward-thinking firms are beginning to start their planning for 2010. I’ve already begun to work with firms on their next year’s plan.
I am going to give you six key strategies that will guarantee you a successful 2010 (full disclosure: I cannot fix the economy but I am confident it is improving) and here’s the first.
Strategy 1: Critically Assess 2009
It is extremely important that before you start your 2010 planning you take a critical assessment of 2009. Put the economic issues aside for this. What did you learn about your agency?
Review the following:
• Time management and staff billability. Are you meeting industry benchmarks? Are you spending your time working on your business not just in your business? Where can you be morfe efficient? What did you neglect in 2009 that you won;t tolerate in 2010?
• Process improvement. Where can you improve your internal processes? What's not working well?
• Financial data. Are you getting the right reports to help you understand your P&L, running rates, monthly revenue against budget, accounts receivables, etc?
• Standards of excellence. Do you have them – both internal and external? Does your staff adhere to them? What must you do differently in 2010 to make these standards the basic fabric of your business?
• Management team. Are you satisfied with their performance? Do you need to make changes? Does the team really help you run your agency effectively? What do you need them to do differently next year?
• Staffing. Where do you need to upgrade staff? What new positions might you need to establish?
• Services. What new services, capabilities, or expertise do you need to add to keep your firm on the forefront of trends in your business or improve your offering to clients?
• Marketing and business development. How effective was your agency marketing and business development programs? What do you need to do to improve them?
Don’t drink your own Kool Aid! Look at these and other issues with a critical eye as you start to plan for a great 2010.
Now is the time when many forward-thinking firms are beginning to start their planning for 2010. I’ve already begun to work with firms on their next year’s plan.
I am going to give you six key strategies that will guarantee you a successful 2010 (full disclosure: I cannot fix the economy but I am confident it is improving) and here’s the first.
Strategy 1: Critically Assess 2009
It is extremely important that before you start your 2010 planning you take a critical assessment of 2009. Put the economic issues aside for this. What did you learn about your agency?
Review the following:
• Time management and staff billability. Are you meeting industry benchmarks? Are you spending your time working on your business not just in your business? Where can you be morfe efficient? What did you neglect in 2009 that you won;t tolerate in 2010?
• Process improvement. Where can you improve your internal processes? What's not working well?
• Financial data. Are you getting the right reports to help you understand your P&L, running rates, monthly revenue against budget, accounts receivables, etc?
• Standards of excellence. Do you have them – both internal and external? Does your staff adhere to them? What must you do differently in 2010 to make these standards the basic fabric of your business?
• Management team. Are you satisfied with their performance? Do you need to make changes? Does the team really help you run your agency effectively? What do you need them to do differently next year?
• Staffing. Where do you need to upgrade staff? What new positions might you need to establish?
• Services. What new services, capabilities, or expertise do you need to add to keep your firm on the forefront of trends in your business or improve your offering to clients?
• Marketing and business development. How effective was your agency marketing and business development programs? What do you need to do to improve them?
Don’t drink your own Kool Aid! Look at these and other issues with a critical eye as you start to plan for a great 2010.
Monday, September 7, 2009
Threat or Opportunity? The Southwest Emerging Media Model
I read a post in ragan.com about the success of Southwest Airlines’ social media efforts. It sparked a question: is this a threat to the growing revenue potential that agencies see in social media?
SW started a blog in 2006 called “Its Nuts About Southwest” to bring customers and the airline closer together. The success of the blog broadened the company’s social media efforts and they named a Manager of Emerging Media, Paula Berg, to oversee their efforts.
But here are the paragraphs that sparked my question:
“As the blog evolved, so did the roles of Berg and her colleagues. When Berg started working on the site she was part of the company’s public relations team. Her co-manager, Brian Lusk, was a corporate editor in the company’s executive office. Soon after the airline began experimenting with Twitter and other social media tools, it moved Berg and three of her colleagues into a new Emerging Media department.
There Berg’s six-person team (two new employees joined it last November) maintains a Twitter feed, Facebook fan site, Flickr group and YouTube channel. Each tool is overseen by a single team member and geared to reach a slightly different audience. “
I wonder, is the emerging (read social) media department separate from the public relations department? It sounds that way. Could this be a trend in other corporations where conversations and connections with the consumer or end user are critical to sales and reputation? And, if so, will it require PR agencies to build new relationships not only with public relations, marketing, top management and finance, but also with social media departments who might logically hire (if they need to) social media agencies and let the PR department deal with the PR agency?
Or, does this signal another reason why it is so important for the traditional PR firm to reinvent itself, and why positioning and marketing an agency will be even more critical in the future?
SW started a blog in 2006 called “Its Nuts About Southwest” to bring customers and the airline closer together. The success of the blog broadened the company’s social media efforts and they named a Manager of Emerging Media, Paula Berg, to oversee their efforts.
But here are the paragraphs that sparked my question:
“As the blog evolved, so did the roles of Berg and her colleagues. When Berg started working on the site she was part of the company’s public relations team. Her co-manager, Brian Lusk, was a corporate editor in the company’s executive office. Soon after the airline began experimenting with Twitter and other social media tools, it moved Berg and three of her colleagues into a new Emerging Media department.
There Berg’s six-person team (two new employees joined it last November) maintains a Twitter feed, Facebook fan site, Flickr group and YouTube channel. Each tool is overseen by a single team member and geared to reach a slightly different audience. “
I wonder, is the emerging (read social) media department separate from the public relations department? It sounds that way. Could this be a trend in other corporations where conversations and connections with the consumer or end user are critical to sales and reputation? And, if so, will it require PR agencies to build new relationships not only with public relations, marketing, top management and finance, but also with social media departments who might logically hire (if they need to) social media agencies and let the PR department deal with the PR agency?
Or, does this signal another reason why it is so important for the traditional PR firm to reinvent itself, and why positioning and marketing an agency will be even more critical in the future?
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