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Relationship Economics® Newsletter

The Nour Group, Inc. | December 2006

Is Strategic Relationship Planning

on Your Radar in 2007?

As many executives wrap up year-end projects and embark on various strategic growth, talent development and overall operational planning campaigns in 2007, I wonder where Strategic Relationship Planning (SRP) fits on their radar?  Our annual audits of several clients have reinforced the common belief that the technical competency of their teams, well thought out processes and the structure of the organization alone will achieve the desired growth strategies.  Perhaps.  But to accelerate profitable growth, attract "A-Players" and enable performance, execution and results, consider just two components of SRP highlighted in this month's issue: Account Management and Strategic Planning.  We'll cover two more next month.  In the interim, Happy Holidays!

Account Management - The Holy Grail?

By Ian Savage, Partner

In over 20 years spent working with sales organizations of all sizes - that sell very different products and services to a variety of customers - it never ceases to amaze me how many face challenges around the art and the science of Account Management.  Part of the problem is that the words “account management” can be used to describe wildly different things, depending upon who you ask.  My experience is that few organizations really understand the implications of implementing an Account Management initiative in which the ultimate aim is to help the organization become more customer-centric.  As a result, many Account Management initiatives fail to deliver the level of returns that companies originally expected from their investments.

Over the years I have developed a “Top 20” list of the most common mistakes made by companies when implementing Account Management.  Irrespective of whether you are currently considering embarking on this journey, or you have already set sail (and are either lying becalmed or are fighting your way through stormy waters), I hope you find this checklist a useful tool to help plot your progress.

  1. Considering the Account Management initiative as purely a sales, rather than cross-organizational, strategic initiative
  2. Not approaching Account Management as a “change management” initiative
  3. Making your best salespeople automatic choices for Account Manager positions
  4. Having no clear definition of the role and responsibilities of Account Managers, nor of the competencies (skills, knowledge, attributes) required for the role
  5. Providing no specialized training provided for the Account Manager role

Click here to read the other 15 discussion points...

 

10 Biggest Mistakes in Strategic Planning

By Bob Muscat, vice president, Paperboard Division, Rock-Tenn Company

Senior management often works hard to improve organizational performance, and part of that work usually involves strategic planning. There are lots of reasons strategic planning efforts don’t work out as well as hoped for, but after years of teaching and facilitating organizations in strategic planning, I’ve found they tend to group into some common patterns.

Here are the 10 most common mistakes that many seasoned teams are making during the strategic planning process.  When you can avoid these common mistakes, you’re on the fast track to being “strategic” and ready to accept greater responsibility.

  1. No organizational objective. The strategic planning process is not just about designing a template and having the organization fill in the gaps. 
  2. Failing to gather data. Planning teams often meet to develop their strategic plan without having gathered the information necessary to guide strategic thinking.
  3. Getting stuck on developing a vision. While this is an important issue, as it helps to define the possible objectives, it tends to be a lengthy discussion on its own.
  4. Using managers as facilitators. Unfortunately, they can’t do a good job leading the process and participate in the strategy discussions at the same time; both process and content suffer.
  5. Thinking of strategic planning as anything other than a change process.  Strategy is fundamentally about change. The very reason many organizations engage in strategic planning is to ensure that the organization arrives at a place or performance level that is materially better than the one they are at presently.

For the other 5 tips in the full-length version of this article, click here.

  

Bob Muscat is vice president of the Paperboard Division of Rock-Tenn Company, one of North America's leading manufacturers of packaging products, merchandising displays and recycled paperboard.  He is a corporate trainer in Strategic Planning for the American Management Association.

"Ask David Nour": Effective Boards

"Ask David Nour" is our continuing series of interesting questions about relationship-centric individuals, teams and organizations and the challenges they face in Strategic Relationship Planning. Come to Ask David Nour to learn more.

Q - What would you describe as an effective, strong Board of Directors?

A - Strong, diverse people, solid business understanding, devoted to committee work, independent and consistent with disclosure practices and not media-hungry. 

Come to the Blog to learn more and engage in the answer!

IN THIS ISSUE:

Smart Account Management

Mistakes in Strategic Planning

Effective Boards

New Audio CD:

Click here to hear David Nour on 10 Reasons Networking Doesn't Work!

Sidebar:

ROI: Return on Integration

Social Networking: ZoomInfo

Ask David Nour:

"How would you describe an effective Board?" 

Click here to ask your top question and I'll respond via the Blog. We'll publish the best ones in each issue - see the bottom of this newsletter for this month's issue on Effective Boards!

David Nour

Managing Partner

The Nour Group, Inc.

Check Out:

Q1 2007 Friday Lunch with David Nour - sign up now as both dates and space are limited.

ROI Reinvented: Return on Integration
You might have 40 attorneys, 50 forensic accountants, 7 competing brands or 11 business units, but is everyone playing from the same sheet of music?  You put out marketing messages that are incongruent with your corporate reputation and promote a service culture that's more of a business inhibitor than an enabler.  What is it costing you NOT to have a highly integrated organization?  As you strategically plan for the new year, here are some concepts to keep in mind on the quantifiable value of a highly integrated organization:

1. Competitive Differentiation: a highly integrated team creates a competitive preference with its client base, a high switching cost, and barriers to entry by the competitors.

2. Cost Performance: a highly integrated team saves resources (human, capital and financial) by avoiding redundancy; leveraging its soft assets like brand, people and relationships; and protects its engagement, product portfolio and client margins.

3. Up Sell/Cross Sell Opportunities: the easiest thing to sell is more products and services to existing clients who already know, like and trust you.  A highly integrated team leverages strategic relationships across lines of business, practices and subject matter expertise to deliver a broad-based value to its clients.

Social Networking: ZoomInfo

Another great social networking tool is ZoomInfo.  Before your next meeting at Equifax, look them up and you'll get a Hoovers-like overview of the basic contact info, company description, key people and web references.  You also get a series of what they refer to as Thumbshots - snippets like Job Openings, White Papers and Summary Tools. 

What I like about ZoomInfo is if you search Rick Smith at Equifax, you can check out the picture of his Board, his 22+ year background at GE, his Education at Purdue, Board Memberships and Affiliations and 162 web references to his new role.  Of particular interest is the left- hand column of his Colleagues and Associates - in essence, a hypothesis of who else he is logically connected to - a great way to build your relationships strategically.

Email us for a list of ZoomInfo Best Practices.

 

How can you "Success Proof" your 2007 Goals?  Check out our January issue!

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