Glossary of Management Terms*

December 15, 2016

* “Glossary of Management Terms” did the ’rounds in the 80’s… but still brings a smile to many – enjoy!
Delegate: Pass the buck
Pending: What the hell do we do with this?
Delayed: Forgotten
Urgent: Panic
Extreme Urgency: Blind Panic
Frank and open discussion: Flaming row
Analytical projection: Guess
Forecast: Guess
Long Range Forecast: Wild guess
Scheduled: Hoped for
Deficiency Analysis: Pointing the finger
Ambitious: Ruthless
Strategy: Low cunning
Shrewd: Devious
Profit: Profit
Profit before tax: Loss
Deficit: Staggering Loss
Industrial by-product: Our waste
Environmental pollution: Other people’s waste
Pilfering: Theft by employee
Fringe benefit: Theft by executive
Terminal payment: Golden handshake
Supplementary statistical information: Padding

Advertisements

The two most common threats to big corporates can be ORGANISATIONAL and/or ENVIRONMENTAL.

 

As I’ve often said, “Companies don’t fail. Businesses don’t fail. Products don’t fail. Brands don’t fail… It is Leadership and Management that causes these to fail.”

 

In Woolworths case, their internal issues are their sheer refusal to believe that anyone outside their company knows anything worthwhile. It reminds me of the saying, “Only a fool knows everything” and Woollies, for all their admirable knowledge, expertise, and ability, are sailing 5º off course, right into the proverbial Titanic’s iceberg!

 

They stubbornly have refused the recent counsel of a previous CEO who has told the Board, that WOOLWORTHS has chronic “ABC Corporate Cancer” (a term coined by Warren Buffet that identifies the destructive combination of arrogance, complacency and bureaucracy). This is clearly observable when you consider their absence of strategic leadership in overcoming the long-running Coles Price war, their botched and re-botched Every-Day Reward loyalty programs, their high staff turnover in Marketing & Strategy personnel, and turnover of Chairman and CEO.

 

So THREAT No 1, the Denial in recognising the ORGANISATIONAL aspects of ABC, is sending WOOLWORTHS cascading towards disaster. They need to embrace a humility and adopt attitudinal shift to listening to and accepting external advice.

 

The often spruiked Einstein-quote of “Doing what you have always done, and expecting a different result is insanity”, might apply in the face of their diminishing success over the past 10 years.

 

Threat No 2 is an External One. WOOLWORTHS see Coles as their major competitor. While Coles struggles against WOOLWORTHS, Aldi is left to grow consistently at 7%+… Why can’t WOOLWORTHS see the writing on the wall, or at least the significance of this trend???

 

WOOLWORTHS (and Coles) have adopted the short-term, and brand corrosive pursuit of private label and house brands, at the expense of branded products. They have made enemies of FMCG companies that they should be partnering with to undo the generic attack on brand value. They should be encouraging brand equity development and new product development, and supporting brands in ways they never have than before.

 

Instead, they connive to squeeze what little is left in profits for their FMCG partners, forcing budgets dry, eliminating insights for NPD by research, or revenue for brand equity development.

 

So THREAT No 2, the Denial in recognising the ENVIRONMENTAL aspects of ABC, is undermining their own competitive advantage and market positioning, creating an industry and a market place that is becoming more willing to reject WOOLWORTHS as a preferred solution to its needs.

 

Inevitably, of course, the WOOLWORTHS Board will retire, fat on its Directors’ Fees. WOOLWORTHS senior executives will ‘migrate’ to other retail organisations, employed due to their position and political savvy, rather than their failure to save WOOLWORTHS, and WOOLWORTHS will become a company that older people “might remember”.

 

It the poor shareholders of WOOLWORTHS , the faithful investors who trusted the Board and senior executives, for whom I feel sorry; particularly when WOOLWORTHS could return to favour dominance and mega profits, by simply jumping form their self-imposed pedestal and holding cap in hand.

 

NB: WOOLWORTHS were offered a means of generating $400M is EBIT p.a. in 2007… and two senior executives individually approved the concept… but shuffles in management and politics… combined with insurmountable corporate arrogance quashed that concept regardless. Now they’re in trouble – go figure!

Both academically, and commercially, Pricing Strategy is poorly understood.

Pricing is not a skill that is commonly well taught or well implemented – either in Australia or globally.

Even many known and vocal “pricing experts” fail to deliver much more than Pricing “tactics” and implementation methods, pricing debate and model interpretation, rather than empowering you with key Pricing Strategy for senior management decision-making that creates enduring profits.

Which is why I am conducting my upcoming Pricing Strategy Workshops, one only B2C Pricing Workshop on August 21 & 22, and one only B2B Pricing Workshop on August 23 & 24, in Shanghai.

These workshops are genuinely SO IMPORTANT, particularly for CMO’s, Marketing Directors, CEO’s COO’s and aspiring corporate leaders. They are unlike Pricing workshops you may have been exposed to before… they are the connective tissue between pricing and corporate governance, and unless your pricing is perfect, you’ll hone real value by attending.

In these workshops, the key issues, methods and functions of strategic pricing will be addressed, so executives can confidently embrace and apply real pricing strategy and innovative pricing approaches that could revolutionise their businesses and create metamorphic improvement in profit outcomes.

With many Pricing Strategy “experts” focused on operational, rather than strategic, issues… Pricing Strategy has often be seen to be simplistic and “light-on”, often relegated to the Finance or Accounting department, or subject to pressure from sales-driven executives, eager to achieve volume budgets, at the cost of profit margin.

These workshops will turn that approach on its head and open your minds to new thought, perception and paths to success that might otherwise stay hidden indefinitely.

I’d urge anyone who has senior marketing responsibility to join me.

Why not download the brochure from…

for more detail or fire some questions at me in the comment section?

I haven’t delivered this type of workshop since 2014, and there’s fresh material as well as topic matter than inspired past attendees from companies like Nestle, Subway, Dell and others. In fact, a delegate to my last workshop, who now heads up the global management teams for supply chain, said, “Your Pricing Strategy workshop was one of the best marketing strategy workshops I have ever attended!”

There are already some interesting delegates booked in … why not come and add extra dimension and deal with YOUR pricing issues?

 

The Hierarchies of Marketing

 

Many of my followers enthusiastically support my Hierarchies of Marketing model that identifies the need to ‘balance’ Operational Marketing abilities in organisations with with Strategic knowledge.

The heterogeneous functions within the Marketing Profession

The heterogeneous functions within the Marketing Profession

The basic premise is someone who can lay bricks may not be a natural choice to evolve into the designer for a building like the Opera House: Despite years of experience and loads of confidence… he/she simply may not know how much he/she doesn’t know! (Likewise, a younger person who looks after Marketing Communications collateral and organises trade shows, may not be the best-trained executive to take over a higher, more strategic roles just because they’ve “been in marketing” for 15 years.)

Operational potency and prowess (knowing how the business works, inside-out) have long been respected in day-to-day management; while contemplated, educated and scientific input has been dismissed or resisted. Galileo’s scientific explanation that proposed the planets did not rotate around the earth, to Louis Pasteur suggesting milk processing to control harmful bacteria, are historical examples of OPERATIONAL people harming progress in their disregard for their ‘theoretical’ advisors.

History of Mismanagement Repeats Itself

It was operational leaders of Fairfax in the 2000’s who dismissed the threat of the internet: There operationally skilled CEO insisting that the SMH (Sydney Morning Herald) would forever be the ONLY way consumers would find a job, buy real-estate, or a car!

The finance & banking industry listened to Operational folk and gagged the strategic advice of specialised theorists prior to (perhaps causing) the GFC of 2008.

Led by operationally cluey folk, the traditional retail brands in the retail fashion industry now sit on the brink of crippling demise!

IN the midst of retail collapse, success stories abound of those quick to take up online retailing gazumping their more powerful but less responsive competitors.

So many businesses are now still struggling to adopt to the online world… many fashion retailers burdened by traditional shops that drain overheads and exhaust working capital, while slick on-line fashion retailers guzzle down healthy loads of profit.

Poor Old Sampson

Sampson is an old school friend who was a natural entrepreneur at 14. It was Sam who organised our first school dance. It was Sam who, year one after leaving school, first made the newspapers for entrepreneurial excellence. It was Sam who bought the first Porsche (cash) before the rest of us turned 21. It was Sam who grew his business nationally with dozens of retail stores around the country…. It is now Sam who is bleeding a 6-figure, monthly loss. Trapped by faith in operational colleagues, and the smoke and mirrors of “good-time” (operationally skilled) consultants and peers, Sam dismisses the strategic counsel that could save his fortunes, slingshot him into new, winning business success, and eliminate his struggles to slow the bleeding and develop “me-too” systems to follow (too late) his internet-entrenched competitors.

Lack of Strategic Management Expertise is as Bad as Missing Operational Talent

When the opportunity of online retailing first became feasible, the future was so obvious for strategic folk, but so difficult to convince their operational counterparts, that some strategists “jumped the fence’ to try their hand at operational activities… with mixed results… that only encouraged operational leaders that these strategic opposites were wrong.

Regardless, the KEY POINT is that businesses short of strategic leadership (not tactical ideas guys, but properly trained and qualified strategy planners) are inevitably temporary business entities… they’ll survive, even prosper is ‘good times’, but fold like a deck of cards as soon as innovation (such as disruptive technology, economic change, socio-cultural metamorphosis, etc.) occurs.

Online Retailing as a Mandatory Channel of Distribution

Online Retailing, for MOST product categories and industries, has become a viable, if not mandatory, channel of distribution. Innovative businesses have already secured positioning and infrastructure to prosper.

Although innovative businesses have already secured positioning and infrastructure to prosper, traditional retailers can still profit from their understanding of operational issues by combining comprehensive strategic thought, to secure sustainable competitive advantage in online retailing… but only with open-mindedness and hunger to maintain and build existing retail businesses into ones that will persist in the future.

It means taking what you know, adding the proven, scientific tools of marketing strategists TO the new skills of digital promotional experts… AND THEN the traditional skills of advertising and promotions specialists, WITH the specific skills of qualified web development and IT gurus…

Summarily, opportunities for domination in online retailing still exist “SUBJECT TO” some factors

“First entrant advantage” has gone. Now, marketers need the formal, disciplined knowledge of TRAINED marketing strategists, who understand the plethora of market alternatives, and business dimensions, above and beyond buyer behaviour dynamics and 8P’s inter-relationships, to identify, build and nurture sustainable competitive advantage: Massive opportunities can erupt out of Type II (Dynamically Continuous) Innovation, but Type I (Continuous Innovation) will prove a hard battle!

21st Century Marketers must coordinate and/or integrate online and physical distribution channels: It is time for traditional retailers to pursue Blue-Ocean strategy and avoid the red-ocean tactics that no longer serve adequate return on investment.

 

Anyone wanting to discuss the above, other strategic issues, retail online generally, or Hierarchies of Marketing,  is welcome to respond … or visit http://bit.ly/OnlineRtlg

 

 

 

 

Product Development that Wins Overwhelming, Profitable Sales

It is a mad world we live in… so close to the wood, we rarely stand back and enjoy the trees, let alone the whole forest. In MARKETING terms, we’ve been distracted by Marketing Communications (with all the digital hype) and forgotten the other 7P’s of Marketing.

If you do recall proper Marketing Management, just for a second, you’ll recall that new markets arise daily, and new products that better satisfy the needs of market segments are the fast road to blue ocean sales, profits, market share, success, and return on shareholders’ funds and outstanding EBIT.

Product Development Delivers Competitive Edge

The operational focus in FMCG led them to discover that over 50% of profits come from products launched in the past 3 years.

Clever strategic marketing by banks has helped them reap millions in extra profits, without increasing transactions, simply by developing new products that better match the needs and wants of certain market segments, while better matching the capabilities and efficiencies of their organisations.

Product Development Is Getting More Sophisticated

As New Product Development consultants, we have seen a constant sophistication since we began 19 years ago!

It is time to share new and proven updates on New Product Development… changes in thinking, methods, adaptations.. as well as a reminder of the basic Laws of Exchange and the correct strategic directions and actions to take in certain, pre-set circumstances.

For instance, in just a few years, the Stage-Gate process for New Product Development has gone from academic indifference to usage by 80% of USA corporations!

Training Workshop on 2016 Issues, Techniques & Methods In New Product Development

Why not catch up, train some new executives, revitalise some old ones, and tune-up your whole Product Development team by attending my upcoming Product Development course in Kuala Lumpur this June?

You can download a brochure from this link , http://j.mp/kl16prodDEV

Feel free to post questions in the comments section so I can reply and with answers that may help others.

It would be GREAT to see you there!

 

 

 

 

When I was a boy, and asked “what do you want to do when you grow up?”, instead of saying fireman or policeman, I would say, “Be a time & efficiency expert”… having evolved into the quasi wish-come-true version of that, I find it enormously frustrating to watch, and doubly frustrating when my assistance is refused, because I can see the solutions, or alternatives, for businesses in trouble.

All around, I see businesses doing it tough, going bad, or just struggling. Other businesses appear to be raking in sales, but losing money through habitual and comfortable routine inefficiencies.

Sadly, bogus consultants, operational ‘experts who have failed to help’ and snake-oil sales folk, have all tarnished the promise of salvation, so these struggling companies – so close to the trees they can’t see the forest – struggle on… doing what they always do, and getting the results they have always gotten. 😦

Years ago, I came across research into how to stop a business bleeding, and how to turn it around, that is summarised below in 8 points…

  1. Accept you must do things differently
  2. Stop & plan: Work on the business, not in it
  3. Listen to your customer service & sales people
  4. Re-evaluate the capabilities of your advisors
  5. Listen to customers
  6. Study your closest competitors
  7. Milk every asset, call in every favour
  8. Move out of your comfort zone

But there are MANY ways to skin a cat.

I remember being served “Cuy” (cooked guinea pig, a Peruvian delicacy) in Peru at the bottom of Machu Picchu…. Having just finished the trek and in celebratory mode, I recall eating regardless of the fact it looked and tasted like rat (and probably was).  The point is, that if you can identify a different market, and position a core product in a different context, you can satisfy new customers with old capabilities (even that pesky kitchen rat!).

THIS is a skill that is beyond operational thinking. It is the domain of power for creative strategists. and goes to the heart of most of the 8 points above.

When executives, who are struggling, say, “we have leading industry experts on our Board and they can’t do anything” or “I can’t afford consultant right now”… yet their inner voice tells them they are headed for doom, these 8 points may be the wake up call necessary.

Virgin & Microsoft Declare War!

Bill Gates and Richard Branson are heatedly contesting in a “Dutch Auction” to buy the site http://www.prelaunchchecker.com, but their efforts may be in vain. with Rupert Murdoch has been secretly negotiating for the rights to the intellectual property that drives the assessment engine of the site.

News to hand is that Rupert Murdoch has been secretly negotiating for the rights to the intellectual property that drives the assessment engine of the site.

By now you might be releasing this is an April Fools announcement but, the pre-launch checker is a legitimate tool for making sure your product launch will go successfully.
You can review your launch for free, or opt to have a report generated so you can identify what areas need the most attention.
It might be worth a look, or even bookmarking.. Why not have a look at http://www.prelaunchchecker.com/