What is corporate DNA: definition and implications
By Pascal Persyn on September 25, 2009 @ 13:48
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Tags: , core purpose, Core values, Corporate DNA, performance improvement, Strategy execution, value discipline, vision framework
The purpose of this blog is to explain all components of corporate DNA and position it in the overall picture of strategy and strategy execution.
Corporate DNA can be compared with human DNA in the sense that it’s unique and can’t be altered. Corporate DNA is the sum of all ‘unchangeable’ elements of a company which combined describe its identity and uniqueness at the same time. It is all what remains fixed while the business strategies and tactics endlessly adapt to an ever changing environment. The corporate DNA consists of 3 components:
- First of all the ‘real’ core values of the company
- Core values are the operating philosophies or principles that guide an organization’s internal conduct as well as its relationship with the external world. Real core values are the common denominator of the employee’s core values. Hence the importance of identifying them by studying and interviewing people in the organization in contradiction to most exercises whereas top management is defining their so called core values based on the strategy and whom they’re willing to be. An example (Nemetschek SCIA) of ‘real’ core vales is:
- The continuous pursuit for new ideas and innovation
- Commitment and our involvement for the well being of our company
- Loyal long-term relationship with all stakeholders
- Hardworking yet forward thinking people
- Our commitment to take full responsibility and living up to made commitments
- Core values are the operating philosophies or principles that guide an organization’s internal conduct as well as its relationship with the external world. Real core values are the common denominator of the employee’s core values. Hence the importance of identifying them by studying and interviewing people in the organization in contradiction to most exercises whereas top management is defining their so called core values based on the strategy and whom they’re willing to be. An example (Nemetschek SCIA) of ‘real’ core vales is:
- The core Purpose
- The core purpose is the organization’s fundamental reason for being. In other words a written statement that identifies why the organization will exist for the next 10 to 30 years. It makes abstraction of the product/service offering. Some examples are:
- Inspire people to move limits (Nemetschek SCIA)
- To solve unsolved problems innovatively (3M)
- To make people happy (Walt Disney)
- The core purpose is the organization’s fundamental reason for being. In other words a written statement that identifies why the organization will exist for the next 10 to 30 years. It makes abstraction of the product/service offering. Some examples are:
- Your Value Discipline (Treacy and Wiersema):
- The value discipline are our behaviours and actions which ensure the delivery of our value proposition. Value proposition being the mix of products, services, price and payment terms we offer to customers. The value discipline is either Product Leadership, Operational Excellence or Customer Intimacy. One has to be the best at one of them whilst making sure to keep on delivering the ‘Olympic minimum’ on the 2 other disciplines. A good example in the automotive industry is to compare BMW to Toyota. Another good example is Colruyt (Belgian based retailer) for operational excellence. Trying to outperform the competition on more then 1 of the disciplines is unaffordable and always unsuccessful in the long run because it takes too long and costs too much money. Your value discipline is part of your DNA and should be in line with your core values.
It is of the utmost importance to know, track and communicate on your DNA. A diluted DNA is probably the number one reason for stalled growth and/or declining profits in a growth scenario. Their are plenty good reasons to make sure your DNA doesn’t get diluted:
- A lot easier to grow your business because of the ease to get people aligned;
- Sharp value perception leading to more successful lead generation;
- People are self-motivated;
- No need for a lot of written down policies such as travel rules, work schedules, meeting behavior, email policies,….. because people are behaving in a coherent way;
- Improved performance due to focus. i.e. people will not waste time and resources on improvements or idea’s to lower the cost of delivery if you’re in product leadership and your price/performance is at an acceptable level from the market’s point of view. These resources should be spend in becoming even stronger in product leadership;
- …
Typical symptoms of a diluted DNA are:
- Managers managing people instead of the business;
- an increasing level of rules and bureaucracy;
- A lot of emphasis on motivation and programs supporting it;
- HR policies which put job experience above DNA compliance in hiring and retention;
- Spontaneous idea’s and improvement propositions which are totally random;
- …
Better results and less people issues resulting in less stress as a manager will be your personal advantage if you avoid DNA dilution.
Tips to get access to the real decision makers
By Pascal Persyn on September 01, 2009 @ 08:54
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Tags: , buyer-aligned messaging, funnel managment, know your customer, Sales effectiveness, Sales management, sales skills, sales tactics, solution selling
I’ve seen and heard it over and over again. It’s difficult to get access to real decision makers. It’s even more difficult to keep them in the loop.
Entering late in the buying cycle is probably the single most important reason. A project manager is taking the lead once an opportunity is in the closed minded phase (in some businesses when the RFQ/RFP has been send out). This means that all requirements have been gathered and translated into buying criteria. Therefore real decision makers and those faced with the business problem are no longer involved in the market research phase. They will of course come back into the loop at decision time but that’s way to late to build a meaningful relationship for this opportunity.
5 tips to help overcome the main obstacles:
- Research the power structure and contact the highest ranked person faced with the business problem:Marketing should influence all decision makers faced with business problems you can solve. See: how to influence key decision makers And the one with the biggest impact should be contacted by sales to make an appointment based on a value proposition adapted to the business problem you want to discuss. They will only accept an appointment if their ‘readiness to buy’ is far enough developed but not yet to the state that they’re already convinced to know the buying criteria the solution must meet.
- Speak their language: Sales people are often pushed down or don’t get access to them because they’re unable to have a value add business conversation. Decision makers are not interested in a product or technology pitch. Nor are they interested in knowing more about your company. Remember: Decision-makers believe they know the destination but they have a problem getting there.
- Understand the psychology: Your contact will probably have cold feet of introducing you higher up in the organisation. They’re not sales people and therefore be reluctant to sell the idea to their boss. Afraid of the impact in case of a wrong judgement or setting up an appointment with a sales rep that doesn’t speak the right language.
- Get agreement on value chain impact: Showing that the business pain has an important impact on other key people in the organisation will help you to get access even higher in the organisation. the reasons are:
- You helped your contact to build the needed story to sell the appointment
- You proofed that you understand and have experience dealing with the business problem
- You proofed that you speak the right language.
- Negotiate access: You have to negotiate access if all of above has been insufficient to get access. Remember to check the status of the opportunity in terms of readiness to buy. All of above will probably fail if you came in via the project manger or buyer because the opportunity is already too far down the buying cycle. So if you came in at the right time you will get access when agreeing on certain work or commitments from your side that are of value to your contact in exchange for that meeting.
Closing tip: Be careful with your forecast if you put in opportunities without having access to the real decision makers. These opportunities will drag on and on in your pipeline. Quit normal of course since you have very little insight and control over the ‘real decision’.
