Before you launch: Imagine your product has failed. Conduct a pre-mortem.

Positive thinking is great. Blind spots... not so much.

“What could possibly go wrong?” is certainly a question that merits asking during any product or project’s development. However, a managerial technique known as the pre-mortem takes the process a critical step farther.

The pre-mortem process in three easy steps:


“We haven’t launched this product yet. But let’s imagine that it’s a year after the scheduled launch – and the product has failed. Okay, everybody, what went wrong?”

To give your team the opportunity to answer this question as thoroughly, as thoughtfully, and in as many ways as it merits, you’ll want to follow a process that encourages prospective hindsight, a method of thinking as if something has already happened.

First of all, set aside two hours. Sure, you are busy developing the product. Make no mistake (yes, that’s a play on words) you are NOT too busy to perform a pre-mortem, which is far less painful and expensive than the potential post-mortem you will perform when and if the product fails. Start with a two-hour meeting. Select a facilitator.

Second, have everyone in the room begin by independently writing down all the possible reasons for the product’s failure. Have each participant read one reason from his or her list, and repeat the process until all potential reasons for failure have been vocalized. Meantime, the facilitator writes down every reason.

Third, discuss.

And, finally, post-meeting, plan and make changes to accommodate what you’ve learned through exercising prospective hindsight via the pre-mortem. This may require additional team meetings. Again, it’s time well spent.

The research on pre-mortem effectiveness:

Harvard Business Review reported that “Research conducted in 1989 by Deborah J. Mitchell, of the Wharton School; Jay Russo, of Cornell; and Nancy Pennington, of the University of Colorado, found that prospective hindsight — imagining that an event has already occurred—increases the ability to correctly identify reasons for future outcomes by 30%.” Using prospective hindsight allows team members to think out some of the lurking problems that haven’t been brought into the light of day in ordinary planning meetings. It slows the rush toward completion to allow more balanced perceptions to arise.

******

“Why did our product and its launch fail?”
Participants' sample answers


We failed to market aggressively and one of our competitors then seized the market advantage as if we hadn’t been first.

We didn’t ask the market if it was interested in this product – and no one was.

 We didn’t make sure the technology worked seamlessly. Early fails damaged our image.

 Production was too expensive, and we tried to charge more than the market would bear.

 A recession killed demand for “extras” and our product wasn’t a must-have.

Consumers slammed it in reviews.

 Our CEO cut the budget just as we launched and we didn’t get to trade shows.

 We didn’t train the sales team to sell this complex offering, so they kept selling the old stuff instead.

 

 

 

Hot day kick start – for rainmakers only

It's a hot summer day. So sometimes what's obvious eludes us. After all, the sidewalks are steaming.

Here's an example from my own role as rainmaker: vSA offers strategic marketing. GREAT, I think to myself. PR with a new emphasis on interactive, really sharp Web outreach, innovative sales tools, advertising... and lots more. Cool.

BUT.

What does a prospect care about marketing, really (perhaps not much). It's my job to light the fire by determining SPECIFICALLY how vSA can improve the prospect's situation and life.

As in... vSA bolsters sales, builds market share, helps create thought leaders. vSA makes companies more visible than their competition so they LOOK BETTER than their competition, SELL MORE than their competition, and WIN in a dog-eat-dog economy.

Furthermore, we help make our individual clients ever more successful as executives or business owners. vSA can help them make more money as well as enable them to go home on time more often – feeling good – so they can ride their bikes or float in the pool.

After all, it IS hot out there.

Naptime has been canceled.

As I compose this post on a lovely summer afternoon, financial headlines include phrases such as "market swoon" and "U.S. Economy Is a Complete Disaster".  That's arguable, but nonetheless, it's no time for business professionals to close their eyes, not even for a moment. Here's why:

We're doing it all. Productivity continues to be high, because there are fewer people doing more jobs, working longer hours, coming up with better ideas. If we don't remain at the alert (or if we don't hire back some of those people we've ushered to the sidelines) production will fall and our ability to respond to opportunities quickly will drop.

Prospects and customers say "maybe" and "no" more easily than they say "yes". We must stay on our toes to give them reasons to move forward with us. They'll save money. They'll save time (which is money). They'll be more productive (which is money). Or they'll feel happier (which is more important than money sometimes, eh?). Get to yes. Argue with the going wisdom of the day, with the "we have no budget" or "we're not planning to do that until 2011" or "we have a supplier already." Invite your prospect to look at a situation through new eyes and improve results.

We're operating in a new environment. Picture yourself trying to perform everyday tasks in a weightless environment. Your cereal floats away. You can't move from here to there the way you used to. Doing business today is similar. People don't often pick up their phones unless they expect your call. They may make decisions by doing research online rather than talking to people like you. They do without, or they do things themselves. (How many major corporations have taken to creating their own sales materials, for example, or simply have no current materials? Oh, there's nothing more impressive than the sales rep drawing the new automation system on a frayed paper napkin at Burger King to show to a key prospect, I'll tell you!) Take the time to dream up new ways to help your prospect, and to speak to his or her real concerns, which are very likely different than they were two years ago.

Since you're wide awake anyway, walk away from the lagging crowd. Think for yourself or find a fresh new adviser or partner with whom to share ideas. Figure out how to develop, value, sell, and build market share for your product or service. Learn about the new tools and techniques, motivations and buy signals that work in a strange new world, even as the pundits wring their hands and your competition slumps in its seats.

By the way, coffee helps.

Compelling selling.

Some people love the process of sales. For the rest of us, it's a challenge. That challenge is heightened during difficult economic times.

Following are some of the lessons our sales team has learned through experience, trial-and-error and the wisdom of others:

First, make sure you're selling something worth buying. Give yourself a break! Some people can sell ice cubes to citizens of the frozen far north, but the rest of us will do a lot better marketing something that has value to the prospect... even if the prospect doesn't know it yet.

In a tough economy, be ready to highlight the immediate benefits, cost savings opportunities, time saved, and other at-the-ready positives your product or service offers. Why? When money is tight, people tend to think short-term. Even corporations think short-term. In some cases, they feel they can't afford to do otherwise.

Stop talking. That's right. Learn about your prospect. What is s/he working on, concerned about and planning? Know this, and your sales message can address relevant needs.

Once again, stop talking. Once you've made your pitch, be quiet. Let your prospect ponder your offering, even let your prospect feel it's his/her turn to speak up. A little awkward silence at decision-making time can be a good thing.

Don't sell on price, but don't be insensitive to cost issues. In the end, cost will nearly always be a consideration. Just don't make it your selling point. Unless, of course, you have nothing else.

Be willing to follow up. We've all been subjected to fire-hose sales pressure. It's unpleasant. If what you're selling is of value, you can afford to be consultative. If you can't close the sale that day, ask when you can check in again. Sure, you may lose momentum... assuming you ever had it. Learn to know the difference between a prospect expressing genuine interest and one who is merely being polite to put you off.

Even if your prospects are thinking short-term, you shouldn't be. Someone who's interested in your product but not in a position to buy may be ready later. Too many salespeople drop the ball and lose longer term prospects.

Be likable. Despite online shopping, phone voice mail trees and other impersonal ways of doing business, personality still matters. When people are working with others, they gravitate toward those they like. Overbearing, single-minded and pushy aren't characteristics that come to mind when we say "likable." Consultative, warm, engaging, and having good listening skills are. Why does it matter? Because you want your prospects to take your next call or respond to your next email. You want their referrals. You want their business.

Navigating the arithmetic of economic recovery: A guide for mid-size businesses

[caption id="attachment_783" align="alignleft" width="150" caption="Synergy and momentum matter."][/caption]

Just as there is arithmetic to recovering in the investment market, there is a logic and arithmetic involved in business recovery. Specifically, it's often easier to lose ground than it is to win it back.

In the investment market, if you lose 40% of your $10,000 investment, you have $6,000 left. When that remaining investment adds 40%, you have... $8,400. What a bother.

Similarly, a recession can create business losses that are challenging to recoup... and they aren't all strictly in the numbers.

For example, a large business customer may pull its business "temporarily" during a recession. Getting that customer buying again can be an uphill battle. Getting the customer back to or above its previous level of purchasing can be even tougher. During the customer's hiatus, it has probably been courted by your competition, with great deals, low prices and - gulp - perhaps a fresher approach.

Many businesses reduced their marketing and hence shrunk their visibility during the last difficult quarters. Now they need to regain what they've lost in terms of being "top of mind" - ramping up marketing will require serious, insightful and ongoing effort now if it's been shelved or minimal in the last year or two.

Were your engineers busily designing the next great thing during the slowdown? Great - you can come out shining. However, if the malaise meant that R&D was stalled and that even the best minds in your company were dulled by lack of sales and incentive, it's time to refresh your approach and your offerings, because your competition will or has done so already.

Has the sales team been keeping in touch with all its customers and prospects, or has it, as in the infamous sales saga of Glengarry Glen Ross been waiting for the "good leads" and better times? There is no time NOT to be selling.

Today... while the past certainly affects your firm, days gone by matter now primarily as a lesson. Starting today, you have the need and you've absorbed the arithmetic. You know that a concentrated, energetic and smart effort distinguishes the companies that will soon regain their momentum and reach new heights from those that will not. This is true even if your revenues are down, your staff is reduced and you've borrowed money. It will take more work and more applied intelligence to gain ground than it took to lose it, just as it does in the investment market.

How is your company addressing the recovery? Please comment or email us privately with your thoughts.

Necessity

[caption id="attachment_396" align="alignnone" width="150" caption="You're prepared for all contingencies... right?"][/caption]

A saying from a friend: "The best boat pump in the world is a sailor with a bucket... in a very leaky boat."

So true. In the last recession, spanning the years 2000-2001, our company started out with several sales professionals. We ended the recession with just one... that ONE was me. I believe I represented the sailor with a bucket. Who more than the owner of my small company, after all, knew how much bailing how many sales were required? This time around, the entire van Schouwen Associates staff is truly engaged and actively involved in seeking and leveraging all opportunities. In other words, we have more sailors with buckets now. This is better.

Of course, I keep making the mistake of looking at the Dow Jones Industrial Average, which is one global representation of the water level in our collective economic boat. The DJIA is currently under 7,000, pretty dismal, eh? I hope by the time I hit the "publish" button for this blog entry, it has gone back up. (Really, aren't we running out of patience for this?)

You know best what bailing your own boat means to you. Perhaps, literally, it means your job isn't what it used to be and you need to... sorry... BAIL and get a new one. (Okay, I won't play with the word "bail" anymore, really. Don't go. I'll say "necessity" instead.)

For our company, necessity means we continually strengthen our prospecting and outreach efforts - something I think we're good at anyway - because we need to keep the phone ringing. To accomplish this, we're working our butts off. Not to put too fine a point on it.

The no-good sales call.

So much about business has changed. So few extended business lunches. So much cost cutting. So little hiring. Even the U.S. car companies now see doom for the corporate jet and maybe even those big bonuses for losing their shirts. But enough about them.

It goes without saying that our company has not yet qualified for a bailout, so we must slog on with making a profit.

We used to make phone calls to key people at companies we thought we could help - and then we talked with people on the phone. Strangers! It took courage. It used to work.

This calling thing appears to be pretty much over.

Let me ask you: how often do you take probable-solicitation calls from strangers when you're at work? If the answer isn't NEVER or ALMOST NEVER, you'll probably want to add a caller ID feature to your phone.

So cold and nearly cold sales phone calls are teetering toward obsolescence. FINE, who wants them anyway? Ah, but what replaces the classic cold call for companies in which selling is sometimes a one-by-one process? Bringing people to your door to ask to work with you or buy your stuff? Emailing? Psychic messaging? (Okay, scrap that last one...)

Think of professionals who never advertise but who are always busy. They've built a reputation for excellence - and it wasn't an accident. It likely took ongoing outreach, networking, PR, climbing the Google ranks, nurturing of word-of-mouth, viral marketing, and more.

It can be really hard to change the way you sell things. But take some time to think about this New Age of outreach.You know the saying that insanity is doing the same thing over and over and expecting a different result. How ARE those sales phone calls going for you anyway??

Start building a business reputation that opens doors so much better than the ol' "My name is Milton Kong and I'm calling to ask you...."