August 2019

Growth Strategy

Growth strategy of any business organization should keep following points in special consideration; budget for customer acquisition, cost per customer acquisition, merchandize value per customer, margin per customer, natural churn (a segment of fleeting customer who will never be yours. They keep experimenting and pricing is their key nudge to buy any product or services) and cost of customer retention. If the cost of successive customer acquisition is lower than retention of a loyal customer, then going all out aggressively for customer acquisition makes more sense ignoring the complaints of existing customers for sometime than staying conservative to build the business. By doing so, you will still have more customer despite natural churn and exit of few disgruntled customers than your conservative growth strategy.


If you remain focused on providing value to each and every customer (Though this should be your ultimate goal) before moving ahead, then you will be stuck at very small scale; low sales and low margin making your interest in the business dwindle. If you leave your target customer unattended, then someone else will come and make them their customer. It will make customer acquisition more difficult.


If your customer’s gross merchandise value is very high and they are very sensitive towards being served with full attention, then aggressive growth strategy will kill your business. For obvious reason, a customer spending big amount of money on buying a segment of merchandize on the regular basis will be high net worth Individual with the circle of similar customer base. If you lose attention on any of them, then you will lose business of many of them.


Five Rules to Sell Yourself as a Consultant


It is very easy to present yourself as a consultant but very difficult to sell yourself as a consultant. Every individual has a thinking brain which acts according to situation, time, resources, past experiences, educational qualifications, biases and heuristics. Those actions may or may not yield planned positive outcome all the time.


Whenever the outcome is not as planned, then thinking brains sit down to find the answer, which they call brainstorming. And when they fail to find the answer and demand of the expertise is for long period of time, they opt for a new employee, but when the demand is for the short term, then they opt for the services of a consultant. As mentioned in the first line itself, presenting yourself as consultant is very easy but selling yourself as consultant is very difficult. I have broken down the answer of this challenge in five parts:


-If organization perceives the problem as complex, so make it complex for them: If you make the problem easy to understand, then why would someone hire you. Let the problem remain complex for them either resources wise, time wise or knowledge wise.


-Don’t go for discovery journey: C-Suite people don’t enjoy being questioned. They assume that person coming to him/her has already done the research and ready with the answer. This may seem against the established sales norm, which demands us to know the customer’s need, but these customers don’t fit into that category and more so when it is about their business.


-Only you are the right person: Consultancy proposals are sold to C Suite people who are already well informed but have paucity of time to address the challenge. So, discussing numbers with them won’t cut the haze. Present your credentials, talk about the insights and offer the solution.


-C –Suite professionals have complex ‘Status Quo Bias’ – While a C-suite professionals hate status quo bias among his employees, but they like to maintain status quo for themselves. So, it is very important to know as maximum as possible about the person you are going to meet.


-Use loss aversion bias in your favor- Though everyone hates to lose money, but in an organization, a lower level employee will be more bothered about doing his/her part of job than its financial implications. Only C-suite professionals hold control over financial matters and they need to be convinced that any delay in applying the solution will cost the business dearly.


Challenges a Manager Face in Personal Branding

Eureka moment of personal branding struck me around twelve years ago standing in one of the stores of my employer at that time. A customer was aggressively rebuking one of the Customer Support Associate for something which he had no role to play. It was my second day in the organization. I tried to intervene but only thing happened was direction of his ire got diverted towards me.


Organization is an established Indian MNC with diverse business interest spread across the world, but the business operation which I was part of, had started the operations around six-seven months back. I can vouch for the fact that everyone I met during those two days and had been meeting earlier also were doing the maximum best to create the best consumer experience. But since this operation was expanding at break neck speed, many a thing which needed attention was not getting attended on priority. 


The customer probably had a grudge towards new generation of professionals who are career oriented and keep striving for financial growth. His views were preposterous but since he was the customer, I listened to his verbal aggression patiently, appreciated him for taking time out to register his protest, immediately informed the concerned Category Manager and assured him to address his challenge. Initially I disliked his words about the professionals like me but when I pondered over the event and his outpouring against us and not towards the business owner, I realized that the business owner has reputation consistently build by him and his previous generations over more than hundred years which we don’t have and that’s why this customer and many others like him are ready to put their faith in business owner and not in us. After that I started taking my personal brand a bit seriously. Though certain exigency took my time off from my endeavour towards building a solid personal brand but I kept talking about it with other professionals since then. I also started helping them in crafting their personal brand strategy. Since then I have talked to more than a thousand people and have realized that only leaders can think about creating his or her personal brand, not the managers. Managers live their personal and professional life with many self imposed mental constraints. Some of the prominent mental constraints I have come across are as follows: 


- Managers dislike questions- You are a leader when take your people along, lead from the front and relegate yourself in the background at the time of claiming the reward. Once I came across an incident where new CEO of a reputed organization gave continuous lecture to employees about integrity and scope of the meaning of integrity according to him. He forfeited the incentives of all the middle management and lower level employees to the extent of seventy five percent in the name of poor financial condition of the organization, but rewarded himself with the hundred and twenty percent incentive. This news of course got leaked in the organization led to disgruntled murmurs but since it was the time of financial crisis due to US subprime crisis and many were losing jobs across the industry and in the said organization also, so no one talked and eventually this act got buried down in no time.


They doesn’t entertain their critical evaluation from their people to make themselves more likeable and approachable. This is something which is missing in the managers. They assume that they have been hired by the management to guide his team to targeted result and that’s why they must have all the answers ready to not to let any question arise. Though they like to call it being pro-active, but they create the question beforehand for their answers.


-Managers hate criticism: - Criticism, even the honest one hurts the emotion of managers. Since they are know-all people, they don’t accept the fact that they can go wrong. They have strong confirmation bias, where they often lead their decisions to. Recently I posed a question on social media to a senior professional about something related to his area of expertise. I agree to the fact that though question was related to his area of expertise but it required to think thoroughly before giving the answer. Since that professional falls into second level of my network, I got the feedback that he was afraid to answer my question in the fear of going wrong and inviting either a counter question or a rebuttal. This is just one of the many examples. 


-Managers don’t create a feedback mechanism unless and until it is forced upon them: Due to above two reasons, managers don’t create feedback mechanism unless and until it is forced upon them. Even in the case of forced feedback mechanism, organizational culture doesn’t entertain criticism of senior professionals in the name of discipline. This leads to strengthening of behavioural status quo bias among managers.


 -Managers like controlled environment where only they can talk:- Though managers pretend to encourage discussion and opinion sharing but they don’t appreciate it in reality. They like the controlled environment where only they get the chance and authority to speak. 


In 2017, a Google employee James Damore wrote an anti-diversity memo at an internal platform, which was considered misogynistic. Somehow it got leaked in the media and employee was fired. Sundar Pichai, CEO of the company, came out with a statement in media that he don’t misogynistic opinions and comments in the organization and that’s why that employee was fired from the organization. My point is; the organization like Google, which has invested billions of dollars in neuroscience research and has infinite permutations of human behavioural data, could have countered the arguments with facts and research, instead he was fired unceremoniously. Had he been countered by the organization with research data and facts, it could have settled the debate of difference between man and woman in tech industry probably once and for all.  


Steve Balmer groomed Satya Nadella for the position of CEO of Microsoft. If you read the book “Hit Refresh” written by Satya Nadella, you will find him very critical of the organizational culture he inherited from Steve. Not only he brought in three sixty degree shift in organizational culture but reversed the business decisions of Steve. You listen to Steve Balmer and you will find nothing but praise for Satya Nadella and pride in his achievements.


-Managers don’t appreciate something which doesn’t fit into their scheme of things: For a manager, everything is a resource which he has to use to achieve his objective. If something is not serving a manager’s purpose, it won’t be appreciated even if it is highly valuable to someone else or had been highly valuable to the same manager in the past.


I was talking to my ex-boss sometime back. He told me about the organization where he worked and helped to build robust sales figure for seven years. Two successive government decisions of demonetisation and implementation of GST brought in huge shock in the market. These decisions impacted also impacted his business and initially he was cold shouldered and ultimately had to leave the organization. I asked him whether he was disappointed the way he was treated. He said that initially he was of course disappointed but accepted the fact that he is just a resource which has to return the value of salary being paid to him.  


If anyone wants to stick to above points as their core guiding principle of professional life, then they can be successful managers but not the business leader and definitely not fit for creating personal brand, because people will follow their business success not him.


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