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Paul is the president of the company
He wants to improve the bottom line
Paul asked one simple question:
What should we do to improve the bottom line?
The Finances people answered:
• Cut in personnel and Supply chain costs
• Lower purchasing prices and inventory levels
• Cut in publicity and R&D expenses
• Lower receivables by involving the sales force in the collection process
In fact, there are many more areas we could improve by cutting or lowering
After all, there is a recession out there!
• HR could receive more complaints and notice more sick days
• Suppliers could have more back orders and defects, creating manufacturing delays.
• Sales people would have less time to sell because of collection and problem solving
• The total sales income would go down
• Rumours could start getting around
• A general ‘’I don’t care attitude’’ could start to emerge
Yes the expenses would go down, but
The Marketing people answered:• Increase the Advertisement budget• Increase the R&D budget• Invest in Benchmarking, more focus groups and surveys • Invest in new internal communication tools
The Sales people answered:• Increase the sales force by employing new representatives• Create a new inside sales department • Invest in a new software for better reporting• Improve the commission and bonus program• Invest in a training and motivational program
The same question was asked:
If Paul would have listened to everybody
This is what could have happened!
Of course this a simplistic dramatisation
B u t n o t s o o f f t h e w a l l , b e l i e v e m e!
Paul had a better idea!
Paul wanted to turn things around, in a fully coordinated management system.
Paul thought of a new approach
• The improvement and quality approaches like Kyzen, Six Sigma, could also be applied to Marketing and Sales
• Reducing costs is essential, but it is also very profitable to focus on revenue growth!
• A well-structured revision and improvement of working methods in Marketing and Sales can only increase revenues and profits.
Paul wants to:
• Look into the Marketing and Sales departments to get a snapshot of the present situation, by mapping out the Processes and Systems
• Look for duplications, inefficiencies and wastes. • Start by applying improvements into the most
important areas, where it will generate the greatest returns. (Pareto’s 20/80 approach) B
U S
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S
I N T
E L
L I
G E
N C
E
WHAT GETS MEASURED GETS DONE !
AND
WHAT CAN BE MEASURED CAN BE IMPROVED !
Paul knows that:
‘’Good common horse sense’’
Paul did not want to rely only on:
Paul knows that this is not
Rocket Science!
But when all of these actions are put in place, it will bring back the returns.
Paul also wants to get
Everybody involved
To transmit the knowledge of the approach so that everybody takes the ownership to guaranty the implantation’s success.
Everybody smiled and looked at Paul
Good Idea Boss!
But everybody has too many things to do…
We don’t have the time!
Or Worse
Everybody would say:
Ok boss! You can count on me!
But since everybody has too much to do
Nothing would get done!ANYWAY
Sounds familiar?
THIS IS WHY THERE ARE EXTERNAL FIRMS SPECIALISING INIMPROVEMENT, IMPLEMENTATION & RESULTS
P R
O A
C T
I V
E M
A N
A G
E M
E N
T
B U S I N E S S I N T E L L I G E N C E
B U S I N
E S S R E – E N
G E N
E E R I N
G
WORKING TOGETHERWITHYOU
TOCREATEGROWTH
JUST LIKE LAWERS AND ACCOUTANTS, REINGENEERING FIRMS ARE:
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B U S I N E S S I N T E L L I G E N C E for Marketing & Sales
It works !Matrix
Dashboards
Analysis
Mapping
ROI
Management system
Web surveillance
Information flow
Marketingstrategy
Mobilisation
Product launch
Process System Behaviour
