Tag Archive: change

The Power of WHY And Your Business

September 26th, 2019

I was always the inquisitive, and sometimes annoying, child in elementary school asking the teacher WHY as it pertained to certain math problems as I wanted to understand how and WHY that answer was correct or WHY my answer wasn’t. In most cases it was easy to understand and absorb but on at least 2 occasions my annoying questions of WHY uncovered mistakes in the grading book, much to the chagrin and embarrassment of my teacher. As I grew I applied the WHY to learning and competing in sports…WHY does that method produce better results than that method. So through my 40+ years of executive sales leadership and business ownership I’ve never lost site of how WHY can be used to succeed. So…let’s talk about how WHY may be the most powerful word you can apply to your business.

  • “WHY do customers buy and not buy our products or services?”
  • “WHY do we exist as a company?”
  • “WHY does our sales team continually miss their sales goals?”
  • “WHY did our competitor take away business from our top customer?”
  • “WHY do our employees like to work here?”

These and hundreds more can be the key to your success if you take the time to understand the power of the word WHY and how you can use it to identify business problems and uncover the solutions to those same problems.

Let’s take a quick look at the first question above: “WHY do customers buy our products or services?” Pretty simple and straight-forward, right? Well…in many cases it’s not that straight-forward and requires you to take a deep dive into every aspect of your business and not be afraid of what you might find. From your Business Value Proposition to understanding how each department impacts the Customer Experience, to how you manage warranty claims, to shipping orders on time, to how you handle delinquent accounts without losing the customer, to how your products or services can make or save money, to something as simple as the tone of your voice when you answer the phone and on and on and on. The Power Of WHY is the single most powerful word you can use in assessing you business.

Let’s look at how the Power Of WHY can be used to identify issues in your business.

COMPANY A – Manufactures plumbing products, have 5 key competitors and have declining sales the past 2 years. WHY are their sales stagnant? The CEO sits down his management team and works through a brainstorming and information gathering event they have called Operation WHY. Here are some of the questions and team answers:

 WHY do customers buy our products?

  • We have a vast line of products so customers can obtain most everything they need from a single source.
  • We’ve been in business 42 years and are known as an industry leader.
  • We ship 97% of all orders the same day.
  • Our products have low warranty claims.

 

WHY are our sales stagnant and not growing?

  • We haven’t stayed ahead of the competition who has developed some new products that our customers want and need.
  • Our company has lost it customer-first commitment.
  • We had turnover in Customer Service and have issues with attitudes and lack of relationship building.
  • Competitor A is targeting our key accounts and offering lower pricing on several of our key products.
  • Competitor B offers an extra 15 day terms to all their larger customers.
  • New account and pipeline development has declined.

Do you see some key trouble signs here? Absolutely…Competition is luring customers or part of their business away because they are In It To Win It. Company A has stopped being the industry leader in many critical aspects of their business and lost out to more aggressive and forward-thinking competitors.

Hopefully this exercise was a wake-up call for the management of Company A and they re-commit themselves to being the best in every aspect of their business as just having a great product is only a part of WHY customers buy from you. Like Lean Manufacturing Best Practices, you must constantly evolve and improve as a business and the Power Of WHY is a great place to start.

Another aspect of business is understanding who contributes to a positive customer experience. This is part of your “WHY do they buy from us analysis?”. Since People Do Business With People, the first exposure to your company may be the salesperson BUT…they aren’t the only ones who contribute to the overall Customer Experience. Anyone that interfaces with your customers such as the Receptionist, Customer Service, Delivery Person, Accounting, Technical Support, Operations and more are representatives of your company and your reputation is in their hands. You will succeed by making sure that everyone who interfaces with customers have the same commitment to treating customers as they would want to be treated themselves. If your first cultural business change is the Customer Experience then you are off to a great start.

WHY CHANGE? – WHY NOT?

www.salesxceleration.com/advisors/steve-weimar/

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Is Apple Moving Design In-House?

December 15th, 2017

According to an Industry Week article, Apple is considering designing chips in-house.  The Japanese Nikkei said that Apple could replace as much as 50% of the power management chips that go into iPhones with its own design.  That could be a dramatic change!

Supply Chain Impact to Component Vendors
Apple has developed its own processors for years but has recently increased its focus on the in-house design of components. There have been recent changes in supply chain (recent acquisitions have reduced the number of chipmakers).  Could this be a change in strategic direction or a response to a changing supply chain or something else?  No matter the reason and whether it will come true, the question is whether you would be aware of this change if you were in a related industry or dependent on suppliers related to this potential change.

What Should We Consider and/or What Impacts Could Arise?
Of course, if Apple moves design in-house, it will impact the current supplier (Dialog); however, it doesn’t stop there.  The suppliers who supply Dialog should be thinking about the impacts and how they can redeploy resources.  It begs the question of the level of diversification of your customer base.  Has this been a priority?  Is there a way you could turn part of this situation into a positive, whether you are Dialog or a related company?

Think About Potential Changes in Your Industry
Even if you are unrelated to any of these companies and impacted parties, it pays to be thinking about potential changes in your industry.

  • Are you in lock step with your customers and suppliers?
  • Do you know what is on their minds?
  • Do they know what you are thinking?
  • Could it be of benefit to brainstorm markets, products, and more with supply chain partners?
  • Do you have relationships within your industry that could alert you to key trends or do you attend important trade events?
  • At a minimum, what are you doing to ensure you are not surprised?

If your strategy includes keeping your eye on industry and customer change and your ear to the ground, you most likely will see the change coming so that you can steer the right course.  If not, now if the time to get started.