domingo, 21 de diciembre de 2014

The “Commercial Strategy Puzzle” Model®

“The moment of the transaction is what defines a business. Sales are the only point in the business cycle in which resources flow towards the business, this confers a fundamental importance towards transactions.” (Josh Kaufman, Author de “Your Own MBA”) Results. Every owner, CEO and their respective board members look for results in the company´s operations by establishing goals and objectives. Invisible limits may hinder the achievement of these goals, the only way to overcome them is by facing them. One of these limits, and only focusing on those we can in some way control, is to not see the synergy between the different pieces of the business. To focus more resources towards one area without evaluating the impact over others is another. A common one, is to expect for the sales and commercial departments to have results without having the proper sales model, execution team, infrastructure and timely information. When analyzing this situation and trying to assist my clients in developing their strategic planning I concluded that it is easy to lose sight of how each piece fits into another. My response was to do a visual exercise, the result was the “Commercial Strategy Puzzle”®.
The message this puzzle communicates in a very simple and direct way is: In order to achieve your commercial objectives you have to decide (Leadership and Management) where you will apply your resources (Strategy), have a how (Sales Model), a who (Execution Team) and a reason you will act upon (Internal and External Information). Each of these elements fits into another the same way the pieces of a puzzle do. To not consider one of these and minimize their importance, will impact the whole. According to Ludwig von Bertalanfly, considered to be the founder of general systems theory, “nothing can be understood in isolation but must be observed as part of a system”. Peter Sengel, author of “The Fifth Discipline” also emphasizes the importance of taking this perspective and approach in organizations by stating that the tools and ideas in his book were destined to “destroy the illusion that the world is composed of separate and disconnected forces.” The challenge a leader, and his team, face in the development of commercial strategies is not only to be aware of this interrelationship but to view it in a simple manner in order to execute in a practical way. The “Commercial Strategy Puzzle”® consists of six pieces, each one with an interrelationship. To develop a successful commercial strategy the following must be considered: First, understand the objective each piece must achieve.  Piece #1: Leadership and Management Objetive: “Generate wealth in the present, establish annual budgets and build a solid organization towards the future.”(Iván Gutiérrez, Author of El Camino del Director)  Piece #2: The Sales Model Objetive: “To propose an offer of value that attracts customers, allowing the company to generate profitability and motívate the team involved in supporting and executing the established commercial strategies.” (Based on the three strategic propositions: value, profit and people).  Piece #3: Internal Intelligence- Business Intelligence Objetive: “Support the decision making process through a system based on abilities, processes, tecnologies, applications and practices.” (D.J. Power, A Brief History of Decision Support Systems versión 4.0)  Piece #4: External Intelligence- Market Intelligence Objetive: “Support the decision making process in regards to strategies of market opportunity, market penetration and market development.” (S.L. Cornish, Product Innovation and the Spatial Dynamics of Market Intelligence: Does Proximity Markets Matter?” Economic Geography. Volume:73, Issue 2, April 1997)  Piece #5: The Execution Team Objetive: “To achieve the established goals through focused execution in the commercialization of products and/or services in order to satisfy and retain the customers.”  Piece #6: Commercial Strategies Objetive: “To achieve an advantageous position in the marketplace and in the minds of clients through a unique value proposition.” (paraphrasing Michel Porter) Second, know each element that is part and offers support so each of these pieces achieves their objective. Third, each piece contains an additional element, something extra, which allows the achievement of extra-ordinary results. Paying attention to the development and implementation of this element is highly recommendable. Fourth, analyze the results obtained and make the necessary changes in order to achieve the next level of high performance. To achieve high performance in the commercial arena having a systemic vision is highly recommendable. Being able to see how each piece of the puzzle fits into another. Common results can be achieved with any action, the extraordinary is achieved by doing what is not common. Some important questions may be: what is the competition doing, the ordinary or the extraordinary? In order to achieve the visión and results we seek as a company, how can we take each piece of the “Commercial Strategy Puzzle”® to the highest level of performance? Best regards, Jorge Ariel

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