Page 44 - MetalForming April 2009

Michael Bleau has served manufacturing and consumer- related industries since 1986. Prior to forming Industry Scope, a strategic b2b and b2c sales and marketing consultancy, in 2002, he held executive positions for several automation and press manufacturers. Michael regularly consults with manufacturing companies on strategic planning, sales and marketing, brand and product development, PR, and sales-channel development. Industry Scope
tel. 810/397-1429 mbleau@industry-scope.com www.industry-scope.com
In a stressed economy, how do you quickly steer your company into new industries and sources of revenue? This is a question facing many execu- tives within our industry and others. Long-standing companies with stellar track records are faced with the daunt- ing task of maintaining a break-even point while executing painful layoffs and chasing a shrinking marketplace. Assuming that market entry via acqui- sition is not an option, where do you start and how do you execute?
Before we begin outlining the effort behind the answer, let’s address a few items related to the sales force. Appro- priately loading your sales resources is important in guarding against erosion of your current customer share while you approach new markets. The goal is to grow your top line while reducing your percentage of revenue dependency on any one market or set of customers.
To be successful, you need to avoid a
few pitfalls of traditional crisis man- agement. First, critically review your sales staff and eliminate nonperformers. This said, it is a good time to reinforce your sales ranks and consider approach- ing top sales producers from competi- tors and other industries of interest to you as a means of replacing your less productive sales people—replace order takers with order makers. In doing so, maintain your overall sales capacity.
While the conventional-wisdom sup- port for across-the-board layoffs may satisfy the need to play fair with other department managers, such action will feed a self-defeating cycle of revenue loss and further workforce reductions. Another problem to avoid is arbitrary spending limits. Carefully review spend- ing and reduce nonessentials without hampering the effectiveness of your sales force. Many companies quickly curtail sales and marketing spending and limit or eliminate sales travel
THE BUSINESS OF METALFORMING MICHAEL BLEAU
Diversifying in a Stressed Economy, Part 1
SWOT Matrix
Purpose: Identify business patterns and develop strategies that leverage your strengths, negate weakness, avoid threats and seize market opportunities.
Strengths
Objective: Identify and quantify items that make your business strong— elements that give you an edge, such as patents held, financial wellness, etc. There is no limit to how many you list, but once listed, rank them.
Weaknesses
Objective: Identify and quantify items that make your business weak —elements that bring disadvantage, such as lack of QOS, financial stress, etc. There is no limit to how many you list, but once listed, rank them.
Opportunities
Objective: Whether you are prepared to seize them or not, identify and quantify all known opportunities within your industry, in target industries and by government. There is no limit to how many you list, but once listed, prioritize them.
S/O Strategies
Objective: Look for S/O combinations that can be approached as actionable strategies. Find creative ways to leverage strength to seize opportunities with the goal of advancing your business.
W/O Strategies
Objective: Look for W/O combinations that can be approached as actionable strategies. Find creative ways to negate weakness to remove roadblocks to securing opportunities.
Threats
Objective: Whether you are prepared to seize them or not, identify and quantify all known threats within your industry, in target industries and by government. There is no limit to how many you list, but once listed, rank them.
S/T Strategies
Objective: Look for S/T combinations that can be approached as actionable strategies. Find creative ways to leverage strength to avoid or crush threats. Contingency planning may be appropriate for some.
W/T Strategies
Objective: Look for W/T combinations that can be approached as actionable strategies. Find creative ways to counter weakness to avoid or overcome threats. Contingency planning will be appropriate.
42 METALFORMING / APRIL 2009
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