Passion, People and Principles
post # 541 — Wednesday, May 7, 2008 — a Strategy and the Fat Smoker post
The tenth episode of my new podcast series, Strategy and the Fat Smoker, is now live and available for download.
The series is dedicated to exploring the themes found in my new book by the same name. Each chapter will be accompanied by an executive summary ebook covering the same material. I encourage you to forward these to friends and associates who may be interested in the topics covered. If you are already a subscriber to my podcast feed, this pdf will be available in your itunes.
This tenth episode, Why Most Training is Useless, deals with the reliance many companies and firms place on training as a surrogate for the hard work of true skill development. Training is a wonderful last step in a change process, but a pathetically useless first step. I examine the numerous other essential steps in that process.
NOTES FOR THE EPISODE:
00:35 – Introduction
00:42 – Training is no quick-fix
02:08 – Choosing managers and implementing training
04:31 – The keynote speech
10:04 – The hard business of making change
14:46 – The correct approach to training
19:42 – Summary
You can download Why Most Training is Useless or sign up to receive new Business Masterclass seminars automatically with iTunes or other podcast players. (Click here for
step-by-step instructions on how to
subscribe.) My seminars are always available for download at no cost.
Order your copy of David Maister’s new book, Strategy and the Fat Smoker today!
post # 540 — Friday, May 2, 2008 — a General post
Linas Simonis has just published an e-book called "The New Rules of Business Blogs." You can find it on www.positioningstrategy.com
Order your copy of David Maister’s new book, Strategy and the Fat Smoker today!
post # 539 — Wednesday, April 30, 2008 — a Managing, Strategy, Strategy and the Fat Smoker post
A reader from Russia wrote in with this:
After reading Strategy and the Fat Smoker, I made a research in
our company to find out the types of people who work with me. It was very
positive because I found out that we have:
-
75% of employees with long term and team
motivation
- 15% - wolf pack
- 5% - individualist
- 5% - spider
It was funny that after this research two
managers-individualists left the service at once and other employees
were very happy about it.
I have one question to you: how can we
determine the type of person if he can’t clearly answer the questions about his
motivation, for example:
1.
He wants to be motivated 50% by team
result and 50% by individual result
2.
He wants to invest time to have long term
result but don’t want to lose money in short term period
***
I'd suggest taking him out to dinner and pointing out that he cannot get what he wants in life if he doesn't make choices! If he continues to go back and forward, I'd point out that he won't be comfortable with with the rerst of the team, and they won't be comfortable with him. It might be time to move on.
What do the rest of you think? Would you be more "accomodating"? Does everyone have to be oriented the same way?
Order your copy of David Maister’s new book, Strategy and the Fat Smoker today!
post # 538 — Monday, April 28, 2008 — a Client Relations post
Raintoday.com has just released a new study Fees
and Pricing Benchmark Report: Consulting Industry 2008. 645 respondents
in the consulting industry completed the survey. Among the findings:
Firms that are well-known in their target markets receive higher fees, see
their revenue grow, and earn higher profits than their lesser-known
counterparts. Brand leaders were more likely to price their services at a
higher level than their competitors in the market (42% of brand leaders were
premium-price vs. 28% of lesser-known firms). And, they were more likely to actually
get higher fees by up to 35%.
While most consulting firms (and consultants to consulting firms) criticize
the use of discounting, 65% of consulting firms report that they do indeed
discount their fees. Even the most profitable firms discount - 49% of firms,
with 25% or more firm profit, report that they discount. The average discount
level: 11.7%.
When it comes to premium-price firms and what sets them apart, it is not
their size, the amount of repeat business they are able to get, or the region
of the country in which they are located. As a matter of fact, none of these
had an effect on a firm’s ability to charge premium fees. The factors that
matter most to premium price firms are how valuable their work will be to the
client upon completion, and whether or not the firm can deliver superior
results versus the other providers – 36% find this “extremely important”
Verbatim Comments From Respondents:
Pricing Strategies:
“We do not compete on price. Ever. If we can't compete on value, ability,
talent, and, frankly, if we can't create a better value proposition for the
client, we don't want their business anyway.”
“We are aware of the potential need to reduce cost to gain access but also
believe that the selling process should effectively focus on value and
reference capability to deliver.”
Introductory Service Pricing:
“We've found that the first project creates pricing expectations for future
projects, and that the work is valued more when it is priced at full rate.”
“The introductory pricing strategy is not necessarily a lower price, but a
smaller or pilot project which makes it easier for the client to accept without
prior experience with our work.”
Why Do Use Value-Based Pricing? Respondents Say:
“Our work, approach and value delivered are unique enough that value-based
pricing is the ONLY way in which we are compensated fairly. A time-based
approach simply makes no sense for us - one intervention/coaching session often
causes a change in direction that's worth millions of dollars to the client–how
many hours of our billing would that be worth?”
“Part of our approach is to address the business's issues and value of any
potential solution to the bottom line of the business or business unit. Our
pricing is provided in relation to the benefit. We also use this approach to
minimize work in low value areas of the business/org.”
“Provides income far beyond hourly billing availability.”
Standard and Realized Fees:
“Our pricing model almost always ensures that the standard hourly rates are
realized, hence the zero difference in the numbers above. Sometimes we will
cash in a little more on the senior levels, and provide juniors cheaper, but on
average we end on the standard rates (which are not public).”
“Difference between published and realized rates is due to discounting to
get the business and/or project taking more hours than estimated to complete. Often
this is due to client being unable to supply content or time when needed.”
“I do not even keep track of time, nor is time a factor in establishing
value to the client. I simply don't think this way. Managing capacity is about
being extremely effective, not about focusing on time.”
Service Guarantees:
“It is a great source of competitive advantage. We offer to solve a specific
business problem with a specific technical solution at a specific time and
price (price includes expense and travel). No excuses, just deliver. Using this
philosophy, we are slowly taking work away from competitors who don't know we
exist. We are also charging 2 to 3x more for projects than competitors are
bidding on an hourly basis.”
“We find that our consultants rise to the expectations, so the service
guarantee has not cost us much but has led to a higher level of personal
dedication to meeting client expectations.”
Order your copy of David Maister’s new book, Strategy and the Fat Smoker today!
post # 537 — Friday, April 25, 2008 — a General post
GL HOFFMAN, Chairman, JobDig, and Linkup has created a free eboook about the 100 "learnings" he has experienced after 25 years in starting companies.
Order your copy of David Maister’s new book, Strategy and the Fat Smoker today!
post # 535 — Wednesday, April 23, 2008 — a Strategy and the Fat Smoker post
The ninth episode of my new podcast series, Strategy and the Fat Smoker, is now live and available for download.
It is dedicated to exploring the themes found in my new book by the same name. Each chapter will be accompanied by an executive summary ebook covering the same material. I encourage you to forward these to friends and associates who may be interested in the topics covered. If you are already a subscriber to my podcast feed, this pdf will be available in your itunes.
With Tyrants, Energizers and Cynics, we begin to look into problems in management and managerial cultures. Three leadership styles are examined, and the reasons why each is used are explored.
NOTES FOR THE EPISODE:
00:33 – Introduction
00:44 – The evolution of short sightedness
01:40 – Tyrants
05:22 – Energizers
08:39 – Cynics
13:45 – Short-term thinkers: The enabling factor
You can download Tyrants, Energizers and Cynics or sign up to receive new Business Masterclass seminars automatically with iTunes or other podcast players. (Click here for
step-by-step instructions on how to
subscribe.) My seminars are always available for download at no cost.
Order your copy of David Maister’s new book, Strategy and the Fat Smoker today!
post # 536 — Monday, April 21, 2008 — a General post
In correspondence with me, Wilson "Bill" Katter
offered the following views, and gives permission to us all to circulate (as
long as we acknowledge his authorship and copyright.)
BUSINESS DEAL BASICS
To avoid many of the problems which arise in business
relationships, here is a set of prerequisite criteria with which all parties
should enter the discussions/negotiations.
Much time, money and effort can often be spared with the conscientious
practice of these criteria.
Without them, the negative impact of misunderstandings,
aggravation and emotional wear and tear can also sometimes cause an almost
incalculable loss.
- The goal of a win/win result,
defined as such by all parties
- The skill of understanding the position of all
the parties
- A keen appreciation for the relative value
which each party brings to the equation
- The use of reliable, authoritative resources
- An “I may not know it all” attitude
- The willingness to have “facts” challenged
- Finely tuned listening skills
- Consideration of all points of view
- Impeccable integrity
- Transparency and honesty
- Keen analytical faculties and good
judgment
- A mature sense of fairness
- Compliance with high legal, ethical and moral standards
- Clarity of both oral and written communication
- Timely replies/responses in the exchange of information
- The ability to “disagree agreeably”
- Humble acceptance of the required modification of one’s
position
- Patience to do it right the first time so it doesn’t have to be
done over
- Equitable compromise without the sacrifice of principles
- A long-term perspective which looks beyond the near-term
benefits
- Respect, respect, respect
REMEMBER, IMPROPER
MOTIVES WILL MOST LIKELY KILL THE DEAL
ALTHOUGH CHALLENGING
AND SOMETIMES TOUGH, DOING BUSINESS THIS WAY CAN HAVE THE GREATEST REWARDS
Order your copy of David Maister’s new book, Strategy and the Fat Smoker today!
post # 527 — Friday, April 18, 2008 — a Client Relations post
A question from a reader:
Though plenty of examples of
“Enterprise 2.0”
show tangible ways that social media can improve business, I have not been able
to find many examples of law firms taking advantage of Web 2.0 technologies. In
the UK at least, it seems that although some niche blawgs are very popular and
have done quite well in establishing the author(s) as authorities in their
respective fields, law firms as organizations have yet to take advantage of new
platforms in substantive ways (as have eg investment banks with internal use of
wikis/social networking).
Am I right in thinking that this is
pioneer territory for law firms? If not, could you please point me to some good
examples of firms that use social media – internally or externally – to improve
productivity/efficiency/client services (ie beyond business
development/HR/recruitment functions)?
Order your copy of David Maister’s new book, Strategy and the Fat Smoker today!
post # 528 — Wednesday, April 16, 2008 — a Client Relations, General post
A question from Joseph A. Heyison of the Legal Department at Daiwa
Securities America Inc.
“David, a thought sparked by April 11's WSJ front page, describing Moody's
alleged move to client-friendliness and possible debasing of its ratings
process.
“This is a repetitive theme in professional services: the most rigorous firm
builds its reputation but is considered client-unfriendly. Then a new
management enters, vowing to be more responsive to customers, and the partners
learn that yes, their incomes rise and they get better client relationships by
bending a little. Then a lot. Examples: Arthur Andersen, KPMG (tax shelters),
various law firms, lobbyists (Cassidy & Co.), etc.
“Question One: How do we differentiate client responsiveness from
compromising the quality of our work, and what other than moral suasion works?
(Tyrannical regulators? In theory, an internal incentive process would be best,
but I've never seen it done workably. Despite your advice, I think that firm
culture in most cases is simply too weak to rely on.)
“Question Two: How does this affect the economic "gatekeeper"
theory? (Firms maintain standards to establish a brand which effectively
vouches for the client and thus have sufficient economic incentives to police
fee-earners against dropping standards for short-term gain). Is that realistic
in an environment where fee-earners are mobile and short-term oriented? Or is
the only way to maintain gatekeeper standards the threat of regulatory and
criminal action, or ruinous civil lawsuits?”
***
What think you all?
Order your copy of David Maister’s new book, Strategy and the Fat Smoker today!
