Archive for the ‘Organizational Planning’ Category

Winning through Certifications

Friday, November 30th, 2012

Dr. Renae Sanders

For many small businesses becoming a certified vendor at the local, state, or federal government level is an important step toward diversifying the client base and income stream. Certification is recommended for all eligible businesses, but pursuit of any government contract should be a strategic move for businesses. As you prepare, the following will help you avoid wasting your time and resources:

Establish Clear Sales Goals

Businesses should have clear goals for the types of business they are pursuing and which certifications are needed to achieve stated goals. Only pursue certifications that are most recognized by the organizations or entities with which you wish to do business.

There are several certifying agencies at each level of government, but businesses must also investigate which entities accept certifications by other agencies. For example, you may need only a state or regional certification to enter the supplier diversity program at large corporations. Knowing your target audience helps to narrow your scope and focus your marketing efforts on specific businesses or entities.

Learn the Lingo

Pursuing opportunities with government agencies also comes with a vernacular that is necessary to master to be successful in this space. A term like “lowest responsible bid” is quite telling and suggests business owners should be (1) operating at its most efficient level and (2) understand that egregious markup of services are less likely than in the past. Lowest, responsible bids means the granting entity already has an informed idea of the costs for the project, so unless your bid has a valid, and compelling reason to be higher than your competitors, the bid that meets the needs of the project with the lowest price will win the bid, provided all other requirements are present.

Demonstrate Performance

Competition for the largest contracts is stiff. Many agencies are loath to displace a known entity with an unknown player based on what is written in the bids or certification applications. New players must bring their “A” game. To win big in government contracting, a solid track record of performance, stability, and sustainability in related business activity along with great timing is paramount.  Tell your story, better yet, get others to tell your story to key players for you.

Establish a Solid Marketing Strategy

Government agencies are a market segment just like any other segment. As such, a marketing strategy specific to this target group is a necessity.  Simply having space in a vendor’s database will yield minimal results unless an aggressive marketing strategy is employed. Keep in mind, the sales cycle for each level of government and agency are different, but few are instantaneous. Landing a multi-million dollar contract can take years.

While many bid opportunities are issued at the state and local levels, the level of competition for these contracts is also high. Decision makers who have built relationships with existing contractors are more like to stick with a known entity over a new comer.

Remain Abreast of Trends

The time spent between pursuing and waiting for your big break is also the time where additional training and preparation should be obtained for leaders and key employees. For instance, LEED certification and training is a growing requirement among companies seeking large contracts with government and large corporations. Understanding your role in the social and environmental space is of growing importance and increasingly large general contractors, government agencies, and large corporations want to ensure small businesses will add value and strengthen their efforts in the sustainability areas.

The bottom-line is there are numerous, good reasons to pursue certifications. However, developing a solid strategy for how you will leverage them for your business is a critical step in the process. There are many companies that offer services to assist businesses with obtaining certifications, just be certain find a partner you can trust, that is knowledgeable and offers real value to you and business.

Dr. Renae Sanders is the Managing Director at KRS Consulting, LLC, a management consulting firm specializing in organizational development, growth, and relationships. Believing people are the link between strategy and success, Dr. Sanders works with organizations, leaders, and managers to strengthen internal practices and relationships. Email info@krsconsult.com to book an engagement or meeting with Dr. Sanders.

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Posted in Business Development, Dr. Renae Sanders, Organizational Planning, Sales Strategy, Small Business | No Comments »

Leading through Partnership

Wednesday, August 31st, 2011

By Dr. Wesley Carter

Benjamin is one of the top three commercial contractors in his hometown. On Monday morning he arrives at work with an entire plan for reorganizing his operations process. He emails a memo to all of his employees with details of the new strategy and immediately begins implementing changes. 

However, Nathan, also a top three commercial contractor, arrives at work on Monday for an 8:30 am meeting with employees from all levels of his organization to review the results of an employee survey about operational strategy. Nathan’s operation has grown by more than 60% and he invites his employees to provide guidance on maintaining the customer centric and employee friendly environment.

Both owners are intent on maintaining a competitive advantage and growing their business. Yet, their approaches are totally different. Benjamin drives from the top of the organization and Nathan leverages a participative approach from his business school days. Nathan relies on the insight from his employees to develop strategies and plans.

Both businessmen are successful and both are committed to their respective leadership approach. And while both approaches may be successful, one is clearly more employee friendly than the other. On a deadline crunch, Nathan has been known to put on a pair of jeans and work side-by-side with his engineers at a building site. He makes a point to help out wherever he is needed and enjoys a great relationship with employees at all levels of the organization.

Benjamin is a very successful businessman and while he treats his employees with respect, he rarely involves them in leading the organization. For Benjamin, employees are a means to an end. He pays well and expects total dedication. His company has thrived in a down economy. Convinced of the merits of his leadership approach, Benjamin rarely reveals the details of his strategy to his senior leaders until it is time to execute.

There are advantages and disadvantages to a top-down organizational leadership strategy, as well as, a partnership leadership strategy.  A top-down leadership strategy is grounded in control. Benjamin spends the majority of his time planning, organizing, and commanding. In his mind, Benjamin’s organization is a machine and his role is to drive productivity through the machine.  Benjamin’s autocratic leadership style is quite effective when decisions need to be made quickly. However, extended periods of autocratic leadership can lead to the lack of creativity and lower employee commitment.

Employees in an autocratic leadership environment often experience fear and resentment. Invariably, the lack of employee participation in decisions that affect work tasks fails to uncover obstacles that could be avoided if only they were included in the planning process. Choosing not to consider the ideas and opinions of the employees actually executing the work can have a disastrous effect on operations.

Nathan, on the other hand, engages internal and external stakeholders in developing strategies and plans. He respects his employees and trusts their judgment. Nathan recognizes the influence of technological innovation on the “how” of completing tasks at work. Completing even the simplest tasks requires a degree of mental work by highly skilled professionals. In fact, the confluence of different ideas and skills required to run a profitable business can only occur through partnerships.

Soon, if not already, Benjamin will begin recognize that he cannot keep pace with technology and maintain the quality of his decision making. Ultimately, Benjamin will have to adjust his operational style or suffer the consequences in terms of profitability and/or employee commitment.

At the genesis of his business, Benjamin’s autocratic leadership style may have been very effective. However, he will need to begin to rely on the talent within his ranks if he is to remain competitive. Additionally, he may find that his employees appreciate having a say in developing strategies and plans, since they will be responsible for executing.  

It is imperative that every manager periodically review their leadership style and adjust to the environment as necessary. While there is no one best way to lead, the strategy should align with the situation for optimal results. Have you evaluated your leadership style lately?

WESLEY CARTER DM, authors an advice column that leverages leadership and management strategies to solve common business problems. Carter holds a Doctor of Management (DM) degree with an emphasis in Organizational Leadership, an MBA, and a B.A. in Management.  Carter is a partner at KRS Consulting, LLC in Charlotte, NC. If you have a question, email wesley@krsconsult.com . All submissions become the property of Wesley Carter. Call (704) 992-1211 or email to book an engagement.  This article originally appeared in The Charlotte Post.

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Posted in collaboration, Dr. Wesley Carter, Leadership, Organizational Change, Organizational Planning, Partnership | No Comments »

Want to Grow? Create a Growth Strategy

Wednesday, October 20th, 2010

Renae Sanders

Businesses viewed has ongoing concerns must be run to drive revenue in to perpetuity. The renowned Peter Drucker revealed the purpose of “business exists to supply goods and services to customers” not to supply jobs to workers and managers, or even to pay dividends to stockholders; benefits to communities and investors are great, but not a business requirement.

However, business owners have a very important need and that is to earn a profit. Profits, of course, allow business to continuously meet the needs of its customers. Businesses that successfully meet customer needs must determine how to sustain its ability to do so through economic, operational, and competitive challenges. The concepts involved in growing a business are quite simple – find new clients, offer new products or services, expand the business geographically, merge with another business, or acquisition.

How and when to grow require planning. A growth strategy defines your growth goals, long- and short-term objectives designed to ensure the goals of the business are met with the least amount of risk. The power of a growth strategy lies not only in its creation but also in closing the gap between knowing and doing – planning and execution. From weight loss to marathon training, to retirement planning, defining and measuring goals provide a documented plan for how the business will grow.

According to research, less than 2% of small businesses ever grow to earn $250,000 or more in sales. SCORE reports in its website, seven in 10 new employer businesses last two years, and 50% last five years. With these statistics, leaders cannot leave company growth to chance. Regardless of size, companies should seriously approach the development of a sustainable growth strategy, with executable objectives and tasks.

Components of the Growth Strategy

The growth strategy is created following a continuum of Least Risk and Reward to Most Risk and Reward.

Market Penetration represents the least risk/reward growth strategy of selling more products and serivces to existing clients. Incremental growth can also solidify clients and make it more challenging for deeply penetrated customers to leave.

Market Development is selling existing products into new markets or regions. This growth strategy broadens the market size or opportunity.

Alternative channels means find diverse distribution channels to distribute your product or services. It may invlue using the Internet, hiring an external or internal sales team, licensing to other providers, renting shelf space from retailers. Understanding how consumers search for and purchase the product is a necessary aspect of this strategy.

New Product New Customers is a more aggressive growth strategy where defining and developing new products to meet the need of a new type of customer can bring about significant growth, but at more risk to the company.

Merger relies on finding a complimentary organization with which to merge and expand operations, often in the same space. The cost and challenge are higher and more complex as organization leaders are taxed to find the best ways to integrate and reorganize to capture the value.

Acquisition the most risky growth option if acquiring a business to extend the business each throught improved technology, human capital, or physcial location. There are three primary forms of acquisition lateral or horizontal, forward and backward. A lateral acquisition can extend the growth and reduce competition by purchasing a competing business. A backward acquistion may mean purchasing a supplier; while a forward acquisition may be acquiring a distribution network for your product. Both backward and forward growth strategy offer a way to exert more control of the supply chain ffor your business.

While all potential growth strategies require careful consideration and planning, the merger and acquisition options certainly require intensive planning and due diligence in the areas of leadership, operational risk, tax implications, capital requirements, technology, and human capital requirements.

As in all things, we get what we plan for and measure. A growth strategy is a first step toward driving organization growth. Besides it is always easier to get to new destinations with a well defined map. Want to grow? Create a growth strategy.

Renae Sanders is the Managing Director at KRS Consulting LLC a management consulting firm specializing organizational relationships and productivity. Contact Renae at info@krsconsult.com or call 704-947-2098. To read other articles by Renae Sanders go to www.krsconsult.com/blog.

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Posted in Dr. Renae Sanders, Management, Organizational Planning, Small Business | 26 Comments »