LLH Enterprises

Every company places a high value on an executive’s ability to forecast the future correctly, develop plans that will optimize opportunities, and execute according to those plans. Being right counts a lot—because if you’re wrong too often, you may soon find yourself updating your resume.

This is the time of year when many companies start the planning process for the next year. Senior managers will forecast next year’s revenue and that number will drive many plans through out the organization. Managers will look at market trends, year end results, competitive entries, economic projections, customer confidence reports, and an array of other data. The amount of data available to executives has multiplied considerably over the past few years and advances in computer technology and customer software programs have yielded mountains of information. Yet, it’s hard to see much evidence that executive projections are more accurate now than they were before all this information was available. That’s because good plans don’t come from looking at all this information. They come from building your plan based on a solid strategy. It’s well thought out strategies that can best help leaders predict next year’s outcomes.

The Gallup Organization has conducted research that identified the key factors that have strong predictive linkages to sustainable growth. They found that knowing how successful your company—and particularly your individual team—is at building customer engagement and how your success compares to that of your competitors is one of the most valuable pieces of information you can have.

It is not surprising that your company’s relationship with its customers, compared to the relationship your competitors have with their customers, has a lot to do with your future success. Yet traditional methods of evaluating customer relationships have had little predictive value. For example, Gallup believes that customer satisfaction data seems like it should be important, but in most cases, it isn’t. What Gallup notes is that your company’s customer satisfaction levels—and those of your competitors—probably look similar; both measures are probably between 75% and 80%. And, if you experience a steep decline in satisfaction levels, then you know you have a serious problem. But that usually doesn’t happen even when revenue is decreasing. And, the data alone won’t tell you which competitor will be able to take business away from you. While the data is important, a strong strategy is the key to a winning plan.

Gallup’s research reinforces the need to have your company lead the way in customer focus. Think about the standard of excellence in the Malcolm Baldrige National Quality Program. The Award focuses on two goals, “delivering ever improving value to customers and overall organization performance.” Spend time in sessions with managers finding your company’s unique value. Then spend time bringing business units together to develop and review market segment priorities and plans and aligning the necessary resources.

Lead and participate in growth initiatives with your managers that may represent significantly new directions, with technological breakthroughs or in response to changes in market trends. Top management should use their analytical and creative skills to help the organization understand, attract and keep customers. Use meaningful and future-oriented measures to assess performance. Most companies make the mistake of measuring themselves by looking backward and inward which limits future-thinking and future-growth. Benchmark your company against competitors that are predictive of future results so you can propel your performance.

One of the problems we run into with planning is getting it to a depth where it is really making changes to the organization. To improve the depth of planning for the coming year, use four performance factors: customer focus, financial, internal process, and learning and growth perspectives.

For each performance factor, focus on three strategies: Customer Value Proposition Strategies, Relationship Strategies and Image Strategies.

In the example below, we are developing a customer focused performance factor in an endeavour to increase revenue and gross margin. Our action plan therefore requires actions by each department in the three strategies, which are linked to the other three performance factors.

Since each division/department within the organization will be using the same planning model you will see integration to the planning. As all the performance factors come together you may see the need to build certain knowledge, skills, and systems (learning and growth performance factors) to innovate and build the right strategic capabilities and efficiencies (internal process performance factors) so that they can deliver specific value to the market (customer focused performance factors), which will lead to specific financial performance factors which will result in an increase in revenues and gross margin.

Will your strategy for the next business year produce results? Contact Linda at LLH Enterprises today to see how our in-depth planning can help you strengthen and help attain higher results in the New Year or email us at lhanson@llhenterprises.com. In addition, ask about our new computer software designed to build strategies, pricing, marketing and business planning.

Tom Peters Goes to Bat for Women

Tom Peters was in Toronto recently hyping his new book “Re-imagine!” And because I had never seen him in person I went to the Toronto Board of Trade to hear this great guru of management. While most of what Tom was talking about can be found in his new book (after all he was there to publicize and sell books) one of his points caught my attention. The issue of women!

Research from Harvard psychologist Carol Gilligan’s study In a Different Voice indicates:

Tom and Carol’s research shows that women can be an added benefit to a corporation.

The fact is that men and women do think differently and have very different emotional make-ups. Women care about the human condition which has enormous positive implications for any business. Women take a fresh approach to solving business and relationship problems. They can help your company build a team, nurture the next level of managers, find new ways to do things, look for the right questions, seek change, be identity adaptable and process-oriented. All of these are critical skills for leaders—yet what Tom Peters is saying is that there are not that many women leaders. Now is the time to capitalize on what women can bring to your company. But what I find, as I visit clients and prospects in Canada, the United States and the U.K, is a failure to change current business models to take advantage of this huge untapped segment. As Tom says, “What we’re talking about is Re-imagining the Total Enterprise: Recruiting, Hiring, Promoting, Organizational Structure, Business Process, Product Development, Marketing, Branding, Strategy, Culture, Leadership--Everything. And, women are the Long Run!”

Over 40% of marketing professionals told Lightspeed Research that direct mail is the best ad vehicle to measure for ROI and 31% of US consumers told Vertis Research they prefer learning about new products and services from direct mail.

This research reinforces the fact that direct mail is still a strong marketing vehicle for many companies. No other form of advertising can so specifically target your customers and prospects as direct mail. The major attraction of direct mail is its measurability and if handled properly, direct mail can generate leads that turn into sales.

Contact LLH Enterprises to see how direct mail can help you generate leads, build awareness, and inform your prospects and customers. Email Linda at lhanson@llhenterprises.com.

Just when you think you’ve heard the last of the Enron scandal, more information comes to light--this time on the Canadian side of the border with Toronto Dominion Bank (TD). TD is the second Canadian bank implicated in the Enron scandal. The other bank, the Canadian Imperial Bank of Commerce, knew the company was concealing billions of dollars in debts from the public and that some of the one-time energy trading giant’s profits were due to “financial engineering.” Apparently TD knew one year before Enron sought bankruptcy protection that its books were being manipulated. TD participated in more than $3-billion in financing for Enron and earned revenue totaling $30-million. CIBC is owed $205-milllion by Enron. Unfortunately the buck doesn’t stop at the CEO. TDs shares closed at $42.25 Canadian, at the end of trading on Nov. 26^th on the Toronto Stock Exchange, down 90 cents. Profit secured out of ruthless behavior of CEOs may generate profit in the short run but is destructive to companies in the long term. How should we feel about yet another set of CEOs who exhibited a lack of values and ethics while seeking profit? Perhaps it is time to look for new CEOs. Ones who aren’t ruthless, but have the strength of knowing who they are, based a strong value system.

Canadian factories geared up production in September again indicating the economy is gaining momentum Shipments soared 5.2 per cent to $43-billion during the month, the highest level since March according to Statistics Canada. The report also indicated that unfilled orders—an indicator of future shipments—posted the first improvement since August 2002.

The Canadian loonie continued to alarm exporters and economists as it climbed over 76 cents (U.S.) in October to a near-to-year high. Analysts warn that the dollar’s strength could hamper the country’s economic growth over the next two years. Meanwhile, it has been speculated that the U.S. government is deliberately weakening the greenback to fuel it own recovery. That said Canadian eBay enthusiasts, long the victims of unfavorable exchange rates, couldn’t wipe the grins off their faces.

One in four of the world’s turkeys is hatched by Cuddy Farms, headquartered in Strathroy, Ontario. Cuddy produces 130 million eggs a year from its four hatcheries in Ontario, the United States and Europe.

Smoothing Out the Tough Times--Tough times don't have to be as tough as you think. In every down economy, some businesses lose money while others make money usually because they are able to work in relatively shorter time frames. In addition, their desire for information enables them to react more quickly and creatively to the marketplace. The process of marketing is very much akin to planting a garden. Marketing plans are the seeds and marketing activities are the nourishment given to each plant. Like the flowers in a garden, profits don't come in a short time. They come if you start with a plan and commit to it—which is the real secret of successful garden or of marketing during rugged economic times.

Say What!—After helping further confuse the language of business, Deloitte Consulting decided, in June, to cut the bull. Realizing that terms line “repurposeable” had no purpose to begin with, or that “incentivize” was insanity, the New York-based firm released Bull-fighter, a piece of software designed to help business writers avoid pointlessly complex words. Upon hearing the news, one self-described “knowledge worker” was overheard asking, “Is such a rethink backward-compatible or will it merely right-size the bleeding edge?”

Competitive Advantage!—According to the Guinness Book of Records, the largest dressed weight for a turkey is 86 pounds recorded on December 12, 1889.

Linda’s article on Achieving Corporate Alignment was published in the English and French versions of Contact magazine.

Linda was a panelist at the Institute of Management Consultants fall conference where she spoke to a packed session with a presentation called “Revenue Generation: How to Build Repeat Business.” Linda brought to life the importance of building repeat business to growing a business.

To book Linda for your next conference or management meeting, contact us at lhanson@llhenterprises.com.

Living in Canada, I look forward to going back to the U.S. to work with clients. It is such a joy to see so many successful businesses. Yes, we all are going through various types of change and for the most part as we come to a new year we are in a better place than before…sometimes it just takes a while to see. This year I added a new client in Cyprus and am planning a trip to visit her in March or April. She is a former Canadian (actually once a Canadian, always a Canadian) and I am excited to see how business is conducted there. I am so blessed to be able to grow and learn so many things from all of you that sometimes I feel like a student rather than a consultant. I hope you are enjoying my newsletter and that you find something to implement in your businesses from each issue. Or, at least, that it makes you think about changes you want to make.

Whatever your plans are for the holidays, be sure to take the time to enjoy the company of family, friends and co-workers. And, have a safe and memorable holiday season. I look forward to seeing you in 2004.

Please give us feedback on this issue of The Superior Performance Report (click here) and let us hear your insights and what you would like to hear about next time.