Next Generation Business Performance Strategies

This posting focuses on "Front-office" business performance perspectives and strategies which include traditional marketing, sales, service and other external, market and other customer focused front-line job functions integrated into a cohesive business performance team. In today's volatile business environments, front-office departments (Functional business units/FBU) must have a "top-line focus on incremental gains in customer acquisition and retention, sales, revenue, profit and market share while working together to deliver customer value in all phases of their life cycle experience. Today there are two basic organizational and planning cultures prevalent today.

First Generation Business Development Culture

The first generation business “development” culture is based on a hierarchy (silo) type business infrastructure that can generally be identified with these basic characteristics.
1. Inward focused (company friendly) hierarchy organizational structures
2. Production, product or selling focused planning culture
3. First generation business development (decentralized/departmental) planning process
4. Often competing priorities, resistance to cooperate and competition for resource (budget)

The traditional first generation decentralized (business development) planning process is structured around these traditional strategies or principles first introduced in the 1940's and 50”s.

First generation (original) marketing plan structure

     Strategy 1: Pushing
     Strategy 2: Pulling

Second generation marketing plan structure (4 p’s)

     Principle 1: Place
     Principle 2: Price
     Principle 3: Product
     Principle 4: Promotion

Next Generation Business Performance Culture

The next generation business “performance” culture is based on a virtual (dynamic) business environment which can generally be identified with these three characteristics.
1. Outward focused (market/consumer friendly) virtual organizational structures
2. Consumer and/or market focused planning culture
3. Next generation business performance (centralized/collaborative) planning process
4. A collaborative environment with agreed upon priorities and synergistic demand for resources

Next Generation Business Performance Planning Process
The next generation business performance planning process integrates (focusing of resources) front-office business units (marketing, sales and service) into a cohesive unit focused on driving sales, revenue and profits. Outlined here are the key steps in the business performance planning process.
1. Identify (Plan)
2. Prioritize
3. Budget
4. Create (Innovate)
5. Produce
6. Implement (Empower)
7. Measure
8. Modify
 

Next Generation Business Performance Plan Model

The Next generation (centralized/collaborative) business performance planning model integrates proven (traditional) planning elements with new (First in the 1990's and again in the 2000's) marketing, sales and customer service initiatives into six key elements.
1. In-sync – Structure, culture and environment
2. In-focus – Current situation analysis
3. On-target – Market segmentation - Positioning strategies (Marketplace and consumer)
4. In-demand – Go to market - Pushing strategies
5. In-play – Competitive advantage - Pulling strategies
6. With-passion – Point of contact - Influencing strategies

Section 1: In SyncPerformance Environment
Establishing and maintaining the right company structure, inverted organization, results-based culture and planning process for your business is the key to creating a business mentality that is "in-sync" with your industry, marketplace and consumers and maximizes business performance.

Section 2: In-FocusCurrent situation analysis
There are four basic elements of the situation analysis

1. Historical Perspectives - Review period
     Historical financial performance (Sales, revenue, profit, share)
2. Current Position – Reporting period (Year-to-date financial results)
     External SWAT analysis and internal SORE assessment (Internal insights)
3. Existing conditions - External business conditions

     Uncontrollable, manageable and controllable external forces of business change
4. Planned Performance – Forecasting period (Planned goals, objectives and results)

Section 3: On TargetMarket Segmentation (Positioning Strategies)On-target depends on having a detailed understanding and responding to your targeted markets and customer profiles. There are three key positioning strategies
A. Direct (Qualitative – first party) business intelligence
B. Indirect (Quantitative – third party) business intelligence
C. Market segmentation and buyer profiling begins with two broad segments

  1. Marketing level - B to B (B to G) market segmentation (Segment profiles)
    Selling level - Buying team matrix (hierarchy) and individual team buyer DNA and profiles
    Commercial sales – New system buyer lifecycle experience
    Relationship sales – Existing system buyer lifecycle experience
  2. Marketing level - B to C (C to C) market segmentation (Segment profiles)

Selling level – Individual buyer DNA and profiles
Commercial sales – New system buyer lifecycle experience
Relationship sales – Existing system buyer lifecycle experience


Section 4: On DemandGo to market (Pushing strategies)

There are five elements that make up the On-Demand section of the business performance plan
1. Market Demand Offerings (4 P’s – Products)
2. Dynamic Distribution Channels (4 P’s – Place)
3. Influential Public Relations (4 P’s – Promotions)
4. Performance Incentives (4 P’s – Promotions)
5. Supply Side Business Support
 

Section 5: In-play – Motivate Customers - Pulling Strategies
There are five elements that make up the In-Play section of the business performance plan.
1. Profitable Pricing Schemes (4 P’s = Pricing)
2. Marketplace Leadership Branding (4 P’s = Promotion)
3. High-impact Consumer Advertising (4 P’s = Promotion)
4. Interactive Consumer Communications – Online strategy (4 P’s = Promotion)
5. Demand Side Promotions (4 P’s = Promotion)

Section 6: With PassionPoint of Contact (Influencing Strategies)

There are five elements that make up the With Passion section of the business performance plan.
1. Point of contact resources (Seller tools and buyer resources (4 P’s = Promotion)
     Seller systems, processes and tools and buyer friendly resources
2. Event experiences (4 P’s = Promotion)
3. Targeted direct marketing (4 P’s = Promotion)
4. Winning sales approaches (4 P’s = Promotion)
5. Demand side support system, processes and experience
6. Expectant customer sales approaches and service strategies
7. Established client lifecycle and circle of influence sales approaches and client support strategies

For more information about driving your organization’s business performance goals with planning and implementing these Next Generation Business Performance Strategies contact BPRG today!
To schedule a FREE 60 minute business performance discovery desktop conference
call 937.434.BPRG (2774) or email info@BusinessPRG.com


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