Interim Marketing in Uncertain Economic Times

by Interim Marketing Executive, Charles Besondy

With my conservative-realist hat squarely placed upon my shaved head I ask you to consider that the economic environment we are seeing today (August 2009), specifically the unemployment rate, is what we’re going to see for many, many months to come.

I’m not going to be misled by politicians telling me just prior to 2010 elections that the days of milk and honey have returned. I know that the shaking we feel beneath our feet isn’t an earthquake; it is the vibration from countless business plans going through the shredder. There is fear and uncertainty in the land, but we must move forward even if on a different path with a different view of our business model.

Our economic world has changed–big time. I’m not an economist so I can’t and won’t talk about what the change means. I just know the business environment in which I need to succeed and help my clients succeed is very different from the one I was operating in prior to 2009.

What does this mean if you are a CEO or a marketing executive?

I believe that companies are going to be more and more reluctant to hire permanent marketers. Instead, companies will look to fill their needs on demand. They’ll augment skeleton marketing departments with interim and contract talent as they need it.

There is too much uncertainty in the land to confidently invest in a strong and capable marketing department. There is too much volatility in the marketing programs budget to justify a fully staffed marketing department. Better to keep fixed labor costs to a minimum and bring in the rock star interims for a few months as needed. No long-term commitments, no health insurance concerns, just the perfect skills and knowledge applied to the opportunity or problem for a season.

In past years, in a different economic climate, a high percentage of executives in the U.S. would scoff at the idea of relying on interim talent in marketing. Those same executives have no choice now but to seriously consider the interim option. They can’t stop marketing or else their companies will fall prey to the competition. However, they should think twice before burdening the operating budget with a fully-staffed, permanent marketing department.

Here are two sobering stats from The Financial Forecast Center.

They forecast the U-3 unemployment rate in the U.S. to be 11% in February 2010. (A group of economists surveyed by the Wall Street Journal estimated the unemployment rate for December 2010 will be 9.5%.) We’re looking at 10% unemployment for at least the next 16 months, if you wish to belief these sources.

The other sobering forecast is the GDP. The Financial Forecast Center shows the GDP improving from -3.8% in June 2009 to zero GDP growth in February 2010. I like seeing the numbers heading north, but we can’t expect much, if any, growth for the foreseeable future.

Low growth GDP and 10% unemployment is the new business environment for the U.S.

Those who adapt to the new reality will succeed. Those who manage with an eye in the rearview mirror will stumble.

Let me know directly if you’d like to discuss what an interim marketing solution might look like for your organization. To learn more about interim management within the marketing and sales function check out my book, “Leadership On Demand: How Smart CEO’s Tap Interim Management to Drive Revenue.” It’s also available through Amazon and other online book resellers in paperback and eBook formats.

This post has been republished from Charles Besondy’s blog on interim management, One Riot, One Ranger.

Why Every Company Needs Interim Management

Whether you are a brand new start up or a Fortune 500 company, your organization can benefit from interim management. An interim management executive goes into an organization to solve a problem or develop and execute a strategy, but only on an as needed basis. Here are some reasons that every company should consider using interim management.

Save Money
One of the benefits of having an interim management executive is that you can conserve cash. The alternative of hiring a full time interim management executive can cost significantly more to an organization. There’s often head hunter fees, the cost of a benefit’s package, employment taxes, in addition to full time wages and bonuses. Interim management can cost a fraction of the cost, but still accomplish the desired objectives.

Tap A Pool Of Specialized Marketing Executives
Finding an executive with specific expertise to solve a specific need in your organization can be very difficult and expensive. Instead, work with an interim management company that has a pool of dozens of experienced interim management executives, each with a specific area of expertise. Need someone to come in to execute a marketing roll out in China or someone to streamline the sales funnel? Develop a relationship with an interim management company so that you can tap these skill sets when your company needs them.

Get An Outside Point of View
Hiring an interim management executive during strategic planning can provide a much needed outside point of view to combat group think and bring a new perspective. While you can get an outside point of view by hiring a consulting company, you may prefer a marketing executive with 20 years experience,  who has first hand experience dealing with the problems you may have.

Reduce Opportunity Costs
When there is a gap in a key position, there is an opportunity cost of not having an effective executive in the role. Often organizations spend months to fill a key position with a C-level executive. During this time there can be a significant loss of revenue or market share. Interim management solves this problem for organizations by filling the position temporarily, until the permanent hire can take over.

See more on the benefits of Interim Management:
When to Hire Interim Management
7 Ways Interim Management Can Help an Organization

12 Reasons Your Company Needs Interim Management

Here are the top 12 reasons your company needs an interim marketing executive:

1. You can’t afford to lose ground to the competition while you search for a new executive for 3-6 months
2. You can’t afford to hire a full-time experienced senior executive
3. You need to boost sales this year
4. Your marketing and sales are misaligned
5. You want to take your company to the next level in sales
6. You need the expertise to enter a new market
7. A significant revenue or marketing event is in jeopardy
8. Totally new strategies or programs must be implemented or tested
9. A specific skill set is needed, but not permanently
10. Additional bandwidth needed, but not permanently
11. Objectivity in a leadership position would be beneficial, especially during strategic planning
12. Hands-on coaching and training is required to elevate skill and process knowledge of existing staff

Marketing Transportation in China

Here is a question asked of our expert panel of interim marketing executives. If you have a question about marketing or sales, you can submit it here.

Question: I have a US-based company that is launching a product into china into the city transportation space. How would this marketing effort differ from a similar marketing effort in the US?

The fundamentals of defining & finding customers and marketing won’t differ significantly from a US approach. The most important differences in doing business in China will stem from culture, patterns of consumption, & channels.

For example, in promoting Intel Inside into China in the ’90’s media and channel outlets we’re accustomed to in the US at the time didn’t exist or were pretty fragmented or cluegy. In that period one of the most reliable & significant channel’s of mass communications was millions of bicycles and riders that commute each day. So millions of the familiar Intel Inside logo were handed out as stickers,reflectors and decals to put on the bikes. Lots of media impressions during ‘ride time’ morning, noon, and night!!!

-Peter Klinge, Interim Management Executive

Marketing is much less defined and fragmented than in US. If marketing into governmental channels culture will become a dominant factor. Commercial channels are much more multi-layered and fractured than in US. Most essential ingredients for success are trusted partners with management talent who understand and operate comfortably and effectively in the Chinese market. Although the quantity and quality of the human capital in china is very strong the country still lacks good middle and upper – level managerial expertise thus necessitating expensive expats to support operations. Think long term and cultivate relationships for the long haul. Skimming strategies may work in the very short term, but the Chinese learn quickly. Consequently, penetration strategies will reap optimum benefits. In the US companies are accustomed to competitors who are focused on profit. In china, there is a mix of private companies, state-owned companies and hybrid businesses. Government businesses exist to provide jobs, rather than to create profits.

-Joe Heaney, Interim Management Executive

Is it a product that will be sold to the city or sold through advertising on transportation?

One of the most significant differences compared to US is the amount of government involvement that will be required. Here we think about he government only when it gets in our way. There, you have to have a deliberate plan to deal with the government and officials that are involved. At the worst case the Company will have to anticipate requests for direct payoff and should be very knowledgeable of the Foreign Corrupt Practices Act. This applies to how they deal with people and how their contractors or employees deal with people that ask for payment for influence.

Another consideration is who they work with in China. A common mistake is picking a contact based on relationship, e.g. a brother of someone they know in the US. This person may not know the market or vertical. It’s important that you recruit for industry and market knowledge and do the background checks.

-Dave Parker, Interim Management Executive

Like peeling an onion, Developing personal long-term relationships has to be one of the primary objectives to develop a lasting market presence in the Far East. Although placed at a arms-length at the beginning, once the trust and personal connection is established will the benefits of the launch will be achieved.

-Rich Hennessey, Interim Management Executive

What is Your Greatest Accomplishment for an Interim Management Client?

What is the greatest accomplishment that you have made for an interim management client?

1. Instilled confidence to think strategically about their Plan, Structure, People and Processes and act tactically with laser focus speed on the implementation.

2. Building a strategic plan with those who will own it is not an option.

3. De-hiring the right people who do not fit the position profile, culture or exhibit a persistent negative attitude, sends a clear message to the entire company and helps the company in the long run.

4. Teaching how to hiring slowing against a predetermined criteria adds immeasurable value and stability to a company and team.

5. Bringing the leadership team together formally (once a week to start in a C.O.R.E. Team) to work through challenges and determine the best course of action is indelible to a companies success.

6. Streamlining and or building better sales processes and skills with accountability.

7. Teaching and helping the company empower their employees from the top down.

Eric Fry
Interim Management Executive
206.617.1188
eric.fry@oneaccordcorp.com

Helping an emerging global company create a value proposition that helped them close major account deals, and then teaching the people how to do this for themselves.

Peter KIinge
Interim Management Executive
801.755.6820
peter.klinge@oneaccordpartners.com

Interim Sales and Marketing VP: Richard Brune

I help transform companies and sales process and methodology and help with sales metrics and profit and loss. I have over 25 years of experience building and managing consumer brands and products selling to all retail channels: department stores, mass merchants, clubs, specialty stores internet and broadcast media. As a OneAccord partner I can fill a position for an emerging or SMB company as interim VP of sales or I can come along side the leadership on a project to develop the sales and revenue generating growth of an organization. The value that OneAccord brings is that we have the experience having walked in the shoes of the client. We’ve held the executive leadership positions and are willing to come into your organization to not only strategize but execute the deliverables. We are scaled nationwide so we have the resources and expertise that is needed and can work collaboratively providing our clients with a wide range of revenue focused expertise. In addition OneAccord partners tell the truth about where a company is and where it needs to go.

Richard Brune is a interim sales and marketing VP for OneAccord with a strong track record managing some of America’s most recognizable consumer brands. Mr. Brune has an unbroken record of substantial sales and market share increases with such brands as Stanley Tools, Hartmann Luggage, REI Inc., Swiss Army Brands and licensed products with Eddie Bauer and Disney. Richard has a proven ability to develop new markets and expand existing ones. He is an effective leader with the ability to build highly productive and motivated sales teams. A bottom line executive with the ability to reduce operating expenses while continuing to enjoy growth and profitability.

Richard Brune can be contacted at richard.brune@oneaccordpartners.com

Interim Executive Leadership: Peter Klinge Jr.

The main competency that I’m able to bring is the ability to help companies communicate to their external stakeholders, the message of what their mission is. And the ability to communicate their value proposition, how they build a brand, and how they do a better job at selling their products and services. OneAccord is a wonderful opportunity for me to be able to help companies move forward by surrounding myself with a quality team of competent sales and marketing executives and our primary mission is to find ways to help companies and their stakeholders build and grow their business to sustainable revenue growth.

Pragmatism of Vision to Transform Culture: Interview with Peter Klinge

What is the purpose and meaning of the phrase, “Pragmatism of Vision to Transform Culture”?

The purpose of this phrase is to encourage the transference of ideals and the underlying reason(s) for the operation of an organization.

The truth is that a lot of people in business try to fly high with a vision without executing the necessary tasks needed to succeed. Understanding and implementing the meaning of this phrase creates a balance of a company vision (operating with ideals or values in mind) and pragmatism (performing the necessary revenue or business building tasks). The result of applying this balance is that an organization can continue to operate for the same purpose over time (allowing for smooth generational transference) while executing the tasks necessary to succeed. This balance is the secret to sustainability in the workplace. That is, sustainability of the product quality, and the sustainability of the company or organization’s purpose over the long term.

How does this combine and build upon ideas from your previously published works?

The “Big Idea Series” was published to the OneAccord website and can be found under my biography. The series discusses the idea of the culmination of vision, pragmatism, and leadership into teamwork. It is discussed in a case-by-case basis, for companies such as Pepsi, BMW, and WalMart. Pragmatism of Vision to Transform Culture takes it one step further by making the connection to Interim Management.

How exactly does this idea align with what we do and how we do it at OneAccord?

This can be applied to the way you create a road map of success for your clients. Our underlying vision at OneAccord is to provide absolute truth and absolute compassion through the work that we do. You may be asked to create an updated or new vision casting an ideal meaning for the long-run. When doing this, you must also exhibit pragmatism, a realistic approach to the big tasks and small tasks your client must complete or deal with on a regular basis.

How does this idea align with Interim Revenue Executives helping various companies?

In order to drive revenue, there must be synchronization between an external and internal value proposition. More importantly than providing an immediate boost in revenue, as Interim Executives, we must provide sustainability to our client. Revenue creation is the result of business functions and the corresponding value proposition. By making the necessary functional and value adjustments, you are transforming the culture and moving your client into a promising position for sustainable revenue creation. We should strive for sustainability.

How do you see interim managers being able to refer to this notion in daily interim efforts?

You cannot just go in with a black box (solution to everything) to company XYZ and expect everything an immediate fix. We must constantly keep the whole business in mind. Understanding what needs to be cleared away, to embrace a vision and transform a company in a way that will be sustainable in the future. We must remain pragmatic and evaluate what it will take for this transformation to occur and sustain itself when the engagement ends. We have to leave our clients on stable footing and in the clear.

What experiences did you draw upon in developing this message?

I can draw upon my experience in branding, a process that begins with ideas. Working with companies such as Pepsi and Intel, I was exposed to brands with consistent performance levels, and a well-articulated vision. On the other hand, there were situations when we couldn’t find a consistent vision that could be applied to the work done by a client. It was much more difficult to create a successful campaign. When consistency in vision is developed, the core message is sustainable and can be transferred from generation to generation. For example, Intel is in an industry where the product offering is constantly changing. They have built the brand in a way that encompasses more than the product, so as the products change, the feeling customers have (hopefully a positive one) towards Intel does not.

We are constantly communicating the OneAccord message. Our cultural values are ideal to have in the workplace as well as outside the workplace in our daily lives. Absolute Truth and Absolute Compassion are elements of OneAccord that will always remain. We must expect functional change to occur (such as the use of new social media networks and customer relationship management platforms) but the underlying principals of why we do what we do won’t change

Aside from our cultural values, all else is peripheral, but since we must be functional from day-to-day, there must be a balance. We have to balance our vision and pragmatism (function) to strengthen and sustain the OneAccord message.

Peter Klinge Jr. is a strategic marketing and communications executive with more than 20 years experience with many of the top advertising/marketing services agencies, driving business success for major global brands and early stage companies, in technology and consumer categories.

peter.klinge@oneaccordpartners.com
Tel: 801.755.6820

Photo by Gisela Giardino

Austin Interim Management Executive: Larry Snyder

My specialty is in the design and execution of high performance marketing programs for technical product companies. These programs are all designed to stimulate sales through improved market visibility, brand strength, and targeted messaging programs. I can fulfill roles for small to medium sized technical product companies as VP of marketing or I can come alongside existing leadership to support special programs.

Larry Snyder is a seasoned general manager with a marketing posture and deep technical credentials. He drives organizations, instills a revenue oriented growth culture throughout the organization, and is particularly well suited for small to mid-sized engineering product and service companies. With a foundation in engineering and scientific software, Larry has experience in a range of market verticals including power generation, computer simulation, manufacturing, semiconductor, biotech, and aerospace. Key skills include strategic planning, market planning, business development, team building, and organizational management.

Larry Snyder, Principal
OneAccord
512.772.1806
larry.snyder@oneaccordpartners.com

Measuring Interim Management ROI

How can companies measure the effectiveness of an interim manager?

The metrics that I find to be most important are those that show ‘incremental’ gains (specifically net revenue and net profit) with an interim manager in place as compared with what would have resulted without him or her in the role. This requires having a clear understanding of the trends prior to the interim manager filling the position verses the results they achieve after they implement their plans.

Scott Philips, Principal, OneAccord
scott.philips@oneaccordpartners.com
(503) 913-2705

Effectiveness is a subjective word – First we must define what Effectiveness means and more importantly what does it mean to those have a stake in the interim manager?

Peter Drucker would say that, “Effectiveness is doing the Right Things.” Below is a list of some of the “Right Things” (in my opinion) that could and should be going on in a business transformation engagement. In every case a baseline measurement could be taken to determine the degree of current compliance to a stated requirement. If no requirements are in place then the interim manager along with the stakeholders would determine which are the “Right Things” to be done within the scope of the engagement. Many of the things listed below would be new for the engaging company and therefore any movement – even the establishment of these right things would most likely become a measure of the Effectiveness of an interim manager.

President

• Strategic plan = do we have a plan and can we execute on it?
• Top line growth = revenue acceleration, how much, by when?
• Bottom line growth = more profit
• Cost control = cutting out the fat, saving time and money
• Organizational alignment – right people right place – right org scheme for sales acceleration
• Cultural improvement based on “Best place to work criteria”
• Leadership training and departmental accountability to goals
• Formal coaching program w/SMART goals and measurements

VP Sales & Marketing

• Spreading the customer base beyond 80/20
• Share of market in key product categories
• Churning deadwood clients
• Targeting and adding new value-added clients/sectors
• Growing existing clients via increase volume/breadth of purchases
• Increasing meaningful touches with A & B accounts
• Automation of touch management – who and how many
• Dollars per sale
• Number of sales
• Profitability
• % of product mix sold to customers
• Close ratio on presentations
• Flash sheet development for daily sales inspection
• Pipeline management re: forecast and actual w/% est close
• Sales training

VP Finance

• Reducing bad debt
• Churning dead-wood accounts
• Reducing average date of accounts receivable
• Reducing cost of sales & marketing
• Cash flow management

Operations

• Maximizing inventory turns
• Reducing inventory
• Moving to JIT and cross docking strategies
• Leaning of the key processes in the organization
• Quality team development and process improvement across the entire organization
• Control of RGA’s tracking
• Error cause removal and charting
• Shipping maximizing as decreasing % of budget

Purchasing

• Maximizing vendor relations and driving down costs
• Partner programs and buying concessions
• Inventory management & stocking programs on key items
• Managing down inventory turns
• Applying in-house quality standards to upstream vendors
• Surveying the emerging market for new products/ programs / partners

Customer service

• Customer service satisfaction baseline and assessment
• Outbound customer service calls
• One touch solution program (implies authority to act)

Eric Fry, Principal
OneAccord
eric.fry@oneaccordpartners.com

2. What metrics are the most important indicator of success?

Here I am looking at a bucket of things, all which can be measured, which is the essence of a metric. The relative importance again is in the hands of the stakeholders.

• Viability of the market = is it in growth, mature, decline, crash
• Unique selling proposition USP – does the customer have a niche?
• Sales volume
• Margin
• Profit
• Cost of sales
• Customer satisfaction rating
• Pipeline
• Quality of product or service
• Brand recognition

Can you quantify the ROI of a past engagement?

Yes – in a hard and soft way.

Hard = The actual lift in sales and profit gained because of the interim manager. This is typically measured beginning at month 7 and forward through the life of the engagement.

• Pipeline $ + or –
• Close ratio improvement
• Increased $ per sale
• Increased breadth of product sold
• Increased margin
• Increased number of customer partner programs of various nature (All vital sales numbers and metrics)

Soft =

• Customer satisfaction rating which will gain more business but cannot be measured directly
• Brand awareness greater or lesser
• USP establishment
• Marketing campaigns
• Touch management programs

Eric Fry, Principal
OneAccord
eric.fry@oneaccordpartners.com

Photo by kozumel

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