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How to manage your personal whitespace

February 2, 2013 Leave a comment

In the HBR article “Managing the Whitespace” Mark C. Maletz and Nitin Nohria defined the whitespace as

the large but mostly unoccupied territory in every company where rules are vague, authority is fuzzy, budgets are nonexistent, and strategy is unclear — and where, as a consequence, entrepreneurial activity that helps reinvent and renew an organization takes place.

And the blackspace

encompasses all the business opportunities that a company has formally targeted and organized itself to capture.

Taking this whitespace, blackspace, metaphor to our personal life I can think about those short hours sometimes only minutes when we are not focused on our well defined daily tasks and chores. This is the place where we are not our job, dad or mom. It is the place where we take some risk, open new possibilities for growth, and create new social networks. For some of us it is blogging, for others it is developing a second career, maybe experimenting with the stock market, or trying to write a novel. I see friends taking sports coaching training, building a web site, developing expertise in energy efficient home constructions (and blogging about it too).
Similar reasons drives people to operate in the whitespace as in corporates: great uncertainly, can’t take on such projects at work, and when their main career seems going well and there is no justification for making drastic changes.

Although navigating in the whitespace requires a new compass, the rewards from successful voyages can be great

So how to manage your whitespace project?
The authors suggest setting several conditions for successful completion of whitespace projects in the corporate world, most are relevant to individuals as well:

  • Establish Legitimacy – we usually get support for our blackspace activities automatically, but when it comes to whitespace project things could be trickier. Legitimacy can be established in multiple ways, the first is by drawing lines connecting skills used in blackspace activities to the ones needed for the whitespace project. The second way is to demonstrate what you are willing to sacrifice in order to meet your new whitespace goals, e.g. sleep, not going out, cutting your spending, and etc. Once legitimacy established, support could come in the forms of getting the free time or motivating at or close to your point of burnout. Since we are talking here about other family members the key elements here are trust and visibility
  • Mobilizing Resources – beg, borrow, and steal(time) to get what you need! Taking little time every day adds up, asking for little help from many people becomes a lot – like fund raising – use your social network on Twitter, Facebook, or Google+
  • Show Quick Results to build momentum – find the least path of resistance, create prototype, go for the low hanging fruits first. Once you have an accomplishment at your disposal, it is easier to ask for more resources and harder to kill the initiative. It also help to prevent burnout (happens when little or no progress is made despite a lot of effort)
  • Have Fun – it does not have to be done for the sake of earning more money or developing a second career. Whitespace projects can be very fulfilling, enhance your social life, and contribute to your personal growth.

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In some cases a whitespace project can lead you onto a whole new path and it worth considering moving it to the blackspace.

10 core startup mentality principles

January 27, 2013 1 comment
climing

Startup mentality

It does not matter if you work in a company of 5 people or on a team of 10 in a 400k employees corporate, start-up mentality could be created anywhere, and this culture is what differentiate one team from another. In addition to the hard skills I wrote about in How to become an all-round software developer, adopting the right culture is crucial for getting valuable results(or any results).

Here are the 10 core principles of a startup culture wherever exists.

  1. A Sense of Urgency – the team needs to create value and to deliver it to the market quickly enough in order to stay ahead of the competition
  2. Risk Aversion- doing something that has never been done before. Something big and meaningful! Not playing it safe. Willingness to try new things.
  3. Teamwork – dropping everything else and getting up to help a teammate asking for help – including over the weekend.
  4. Willing to take Extreme measures – Over night delivery – we call it white night:)
  5. Learning – this is the fun part. In other words, assembling the parachute on the way diving!
  6. Optimism – it may look and smell like a sausage, but will make it work!
  7. Volunteering – pull vs. push system.
  8. Dictatorship of the Mind – The best idea wins regardless who came up with it. The team will rally around the best idea!
  9. Commitment to the product, the team, the company- Time estimates are always wrong and underestimate the effort. The last reaction to slipping is to move the date and the first one is to stick to one’s commitment.
  10. Generosity and Serving – reusability, building frameworks, information, tools, and tricks.
  11. Yea, right- overachieving!!

These principles should be reminded every time a new person join the teams. If there is a mismatch between the team and the new teammate, there is a risk of the entire team loosing the startup mentality. This is the time to bring these principles back to the team’s awareness. This is when the expectation that any team member must have only positive influence on the rest of team should be communicated and set as a goal.

Did I forget a principle?

How to map your SaaS sales process

January 20, 2013 1 comment

A sales process does not have a single path. It is not a simple, one time, sequence of events. A sales process from lead to close may go zig zag, back and forth, and in circles. Also, the customer/partner may interact with multiple touch points like, pre sale, tech support, and billing. It is not enough to just develop a single dimension sales funnel with steps going one after another from the wide top opening of the sales funnel to the narrow bottom end. In order to identified who is doing what, and when, where leads may fall between the cracks, and where there are opportunities to up-sale, I recommend mapping the sales process in the following way.

image

Step 1: Leads generation – the list of marketing activities that will generate leads/contact

Step 2: Referrals -  identify where are they coming from

Step 3: Adding to the leads bank – some filtering/de-duping can happen here. The number of active leads is the denominator for the conversion and close rate calculation. This is where Sales and Marketing needs to work together and agree about what counts as a lead. The information needs to be time sliced – usually on a quarterly basis. Some leads that did not progress to the next step in the last quarter, despite multiple follow-ups, can go back to this pool for the next quarter. Others may be stored for a longer term follow-up.

Step 4: The volume of leads to follow-up depends on the amount of leads available and the inside sales capacity. So, here too, some leads need to slip to the next time slice. It is a good practice to keep an eye on the % follow-up = # of leads contacted # of leads available, to see that sale reps keep prospecting.  The next step after following up with a lead, is getting the prospect to perform certain activity(e.g. registering to the web-site, downloading a white paper). This step split the process in two: 1. The lead is now qualified, showed interest and maybe other resources from the company to follow-up with her. 2. The lead did not react to the offer and it should be parked in the “to follow’ up pool of leads.

Step 5: Close – the prospect is on-board and productive. Here it is good to calculate the close rate (could be done from the total # of leads or just from the leads that the sales reps contacted).  Here again, the prospect can go to the “to follow’ up pool of leads if the deal was not closed. Also, another base practice, and this is crucial for SaaS company, is calculating the renewal rate to monitor retention. Resigning customers should be added to the “to follow’ up pool set with high priority, and should be called as soon as possible. On-boarding is a crucial step so monitor the retention rate relative to new customer in addition to the overall customers base renewal rate.

Step 6: Closing up-sale opportunities. This is where other customer touch points possibly contribute to higher close rate.  Calculating the close rate here could be tricky. It is not simply calculated based on the # of leads from step 3, but also taking in consideration the entire customer base. One of the key question that SaaS companies struggle with is how to identify opportunities for up-sale. This is where segmentation becomes crucial, and foresight thinking about what data to collect about the customers is the key.

One more thing to consider, referrals to generic leads are like jet fuel to the gas you fuel your car with. There is no question whether to invest in referral program, but it is hard to know how much. Here too, the data you collect about your referrals can help you to come up with the right answer.

In summary, the sales process looks more like a ping ball machine than a sequence of inputs and exits criteria. If your sales process is even more complicated than my example above then it is even more critical for you to spend the time mapping it.

Mapping the sales process can help with:

    • Identifying where leads should be followed-up, and by whom in the organization
    • Where leads should go back to the short term or longer term pools
    • Where and what data should be collected along the way
    • To identify opportunities for up-selling

This exercise can go a long way increasing your you revenue as a result of an increase in your close rate.

Two ways to focus your 2013

January 2, 2013 Leave a comment

If you are looking to learn from the best how to focus your effort in 2013, just google “three words for 2013“.

My three words for 2013 are: connect, story, and service.
Connect: I would like to learn ways to connect better with my family, co-workers, classmate, friends, and prospects.
Story: This goes both ways, to listen openly to other’s stories as well as to invest in developing my storytelling skills. Both can help to support the goals wrapped in the first word(connect).
Service: To be of a service delivering value to the people I connect with.

For me the “soft skills” are the hardest!

On the physical side consider cleansing your body from all the processed food consumed in 2012 – I plan to try this method.

Categories: Method, Personal

Guess what is missing from the MBA program? Sales!

December 27, 2012 Leave a comment

imageI’m now two and half years into the part-time MBA program with Boston University with a little less than one year to go. One thing that surprises me the most is the lack of Sales Management class in the core program. I was educated about managerial accounting, finance, operation management, organizational behavior, marketing, economics and corporate strategy, but not a word about sales. When I got to the time to select my electives I knew that something was missing, so I found only one class called Entrepreneurial Sales Strategy (that I later heard was offered only every other year) and signed up for it. Only one class in the whole program that talks about sales. When I checked with my friends who went to other universities for their MBAs I was even more surprised to hear that this is the common case. Sales is not part of the MBA program!

The irony is that Sales (as I was reminded by my Sales Management professor during our very first class) is the only activity that contribute to the positive side of the income statementSmile.

I’ve learned a ton about running a business so far, but this class was the most transformative one in the MBA program for me. It does make sense to allocate this class later in the program after understanding key frameworks like DuPont analysis, Five Forces analysis, the time value of money, pricing, marketing positioning, among others, yet sales management can help to tie all these things together in a coherent manner with a very clear goal in mind.

Here are some of the key subjects from the Entrepreneurial Sales Strategy class:

  • Business Models and Value Propositions
  • Building a sales organization – hiring, compensation, organization, and management
  • Direct, Indirect and Channel Sales Strategies
  • Importance and development of strategic partners and alliances
  • Understanding the Selling Process and Sales Cycles
  • Implementing Pipeline Management Principles and Forecasting Techniques
  • Repeatable Sales Models – what they are and why they are important
  • Keys to successful selling including Solution (consultative) selling vs. product selling
  • Sales Management, Positioning a sales force as a barrier to entry -  differentiation and competitive advantage
  • Major Account Selling, Team Selling, Global Sales Strategies

During the course we participated in two team sales activities:

  1. Sales Challenge – the objective of this activity was to engage in a complete sales process including building the value proposition and sales funnel, leads generation, leads qualification, cold calling, navigating the target organization, and closing. We had to convince a VP of Sales from a company with over 100MM annual revenue to participate in a panel with more VP of Sales from other industries at the university in one of the class evening.
  2. Sales Audit – each team was assigned a company(a real one), to execute a complete sales strategy and management auditing consulting project, and to come up with recommendations. We got the chance to meet with the CEO and VP of sales in the assigned company, to hear about the strategy and sales activities, and to gain  access to real business data.
    The Sales Audit project was one of the highlight of my MBA program so far, I learned during this activity more than I could ever learn from case studies discussions in class. This company is a young SaaS company (Software as a Service), selling mainly through partners (MSP/VAR) and growing their booking more than 45% in 2012.  We mapped their entire sales process, identified areas for improvements, and came up with two major recommendation plus other areas for further research. After delivering the presentation in class we also travel back to the company to report our findings.

The key outcomes from this projects were:

We made a difference – the company is actually revamping it sales process following some of the input from our recommendations.

We build great relationships with the CEO and VP of Sales

One of our team mate who graduated after this class was hired by this company

We earned a real consulting experience and learned how sales works in the real business world

We got an ASmile

I know I did good choosing Boston University for my MBA program!!

In summary, the motivation for writing this post came as a result of a comment I heard during our second visit to the company that we audited, it came from both the CEO and the VP of Sales saying that this material was never taught in their MBA program(one of those was done at Stanford). I believe that Sales Strategy and Management are a core managerial skills, even if you end up working as a general manager, business or financial analyst, in operation, it is important to understand your value proposition to the organization and how your activities contribute to the sales activities. For the ones going for an MBA program with the aim working in Sales, Marketing, Strategy, or to start their own business, learning about sales is a must!!

How to watch TV

April 23, 2012 Leave a comment
Options Experience Example
“Old fashion” TV “Lean back” Content is broadcasted, the consumer is passive. clip_image002
Digital TV Content is streamed, consumer has options to watch on-demand, browse the Internet . clip_image004
Social TV Content is streamed, consumer has options to watch on-demand, browse the Internet while tweeting, posting on facebook or to chatting with friends. clip_image006
“Second Screen” Content is streamed to the TV and additional content is streamed to the mobile device (tablet, smartphone).In some cases special apps are built for TV shows or events to synchornized content with the TV. Social capabilities are sometimes included to allow sharing and chatting with friends. clip_image008

VivaStream – how to know “who to know?”- during DMA2011 conference in Boston

September 30, 2011 Leave a comment

imageI’m going to the DMA2011 conference in Boston next week, and this year the focus is on Real-Time marketing. What could be more relevant than that?

Learning about the different marketing methods that are leveraging mobile, social, and real-time data will be one goal of this event and networking is yet another (not a side effect).

VivaStream is a startup that is building a real-time mobile app and web-site that aims to take networking during business events like DMA11 to the next level.

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Before the event starts: you setup your profile, select the conference, browse the schedule, and press the Attend button for the sessions that you plan to go to. Any of your actions is broadcasted to the VivaStream stream telling others about you. VivaStream also offers a reach lists of relevant topics and you can select from one of the two following options: I’m Interested or I Can Help. VivaStream uses this information among other factors to suggest people that you should connect with. There are more useful features and details, but this is the basic.

During the event: Since this is my first event using VivaStream, I’m yet to see the real-time capabilities in action. As you can see in the picture above, VivaStream plans to share some of the statistics based on the information gathered from users’ activities, and to let us know about interesting presentations and spontaneously organized after parties – IN REAL-TIME.

After the event ends: there is a strong possibility to see VivaStream building a new professional social network for networking with a purpose, based on interest and need, and fairly quick.

VivaStream is a very busy start-up, but here are few suggestions for additional features that I would like to see:

  • Show me my agenda (calendar view) built based on presentations that I planed to attend to.
  • Allow users to enter topics
  • Create multiple streams based on different activities (it could get too noisy in a single feed stream)
  • Allow users to shout-out (for example: book signing now next to room ###)
  • Check-in to a session (and maybe check-out, or leave a comment)
  • Number of people interested in a certain topic (next to the topic)
  • Number of people attending a presentation (next to the presentation)

VivaStream has the potential to become an important component of any business event. It is fairly easy to see the value to the event organizers that can learn in real-time about activities within the conference rooms as well as outside, the presenting vendors looking for leads, and for the consumers that are looking for relevant help and experience.

Now, I’m looking forward to see how it all plays out in real-time. Go Viva!

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