Business Development Chronicles – The Story of Us (Doesn’t Have to End in Tragedy)

It’s a tale of Big Company and Small Company.

Big Company likes Small Company’s:

  • focus and style
  • entrepreneurial attitude and skills.

Small Company likes Big Company’s:

  • scale of resources
  • scope and number of customers.

Big Company hates thing like:

  • getting embarrassed by Small Company in front of customers
  • getting burned and stuck with Small Company’s software source code
  • worrying about loose cannons in Small Company’s organization
  • working with Small Company’s legal paper.

Small Company hates things like:

  • working with Big Company’s cumbersome processes
  • getting whipped round navigating Big Company’s large organization and jumping through hoops
  • waiting for the whale to speed up
  • failing to get real deals cut
  • getting RFIs from Big Company and worrying whether Big Company is playing around with others
  • answering the RFI question about financial stability of Small Company
  • getting paid six months late by Big Company.

The Story of Us doesn’t have to end in tragedy. “Us” requires hard work, like courtship. It requires an honest assessment of values and one another’s strengths and weaknesses. It requires regular communication. It requires bridge building skills on fluctuating ground, and should be viewed as an opportunity for those up to the challenge.

Endnotes:                                                                                                     

  • Business Development is about new initiatives and incubation
  • The percentage of alliance failures cited often exceeds 60 percent (example Entrepreneur article).
  • The title for this post was inspired by Taylor Swift’s song, The Story of Us from the Speak Now album
  • I wrote this post reflecting upon doing consulting & contract business development activities and representing mega, mid-market, and small companies over the past year.

What I’ve Learned From Buyers of Management Consulting Services

Many blog posts and articles address when to use management consultants versus not. Some argue that using consultants for strategy development intimate incompetence by management (example here). Others argue that consultants should be used in cases when expertise is higher than that of existing employees.

Companies should definitely examine the needs and tradeoffs for using management consultants. Tradeoffs include expertise, background in similar projects, knowledge retention, cash outlay, incentives, organizational dependency issues, etc.

But I’ve learned something entrepreneurial from a number of buyers that deeply understand how to use consultants and how to lead:

Many smart buyers of management consulting services focus on making forward progress. They focus on solving problems. Whether using consultants is the cheapest option or the best discount of future profits that a client has ever seen or anywhere in-between – the choice of whether to use consultants is less relevant than getting things done with a positive return.

As a long-time consultant, I am clearly somewhat biased. But I’ve been on the buyer side for consulting services too. My main point is to encourage folks to spend a balanced amount of time focusing on how to solve a problem as opposed to pointing fingers.

Facilitation Technique: “Painting the Ends of the Spectrum”

While I don’t often write about leadership, management, and consulting “techniques”, there’s one that I wanted to share as I’ve found it useful when facilitating a diverse group of folks. I call it “painting the ends of the spectrum”, although I’m sure there other varieties and names for this approach.

Here are a couple of examples of “painting the ends of the spectrum”:

  • Trying to hone in on a direction related to strategy – In discussions with a client, framing the discussion by saying something to the effect of, “On the one spectrum, we can focus on simply reviewing the documents to make sure all parties understand. This will require a fairly short period of time. On the other end of the spectrum, we can work towards developing a common solution. Such an approach will require more time and strategy planning on our end.” This can be followed up by either the question, “Where on the spectrum are thinking we should be aiming for?” Alternatively depending on the bias you feel acceptable for the situation, you may indicate, “I think the former end of the spectrum is preferable. That said, what do you think?”
  • Attempting to gauge direction on customer preference – The technique can often be used in primary market research or sales situations. Here you may ask, “On the one end of the spectrum you can have a solution that covers X, Y, and Z, and will meet your end needs (for a premium fee) of being able to sleep at night. On the other end of the spectrum, you can have a narrower solution that has smaller out-of-pocket fees and may require greater coordination and integration on your part. Which direction do you prefer and why?”

Painting the ends of the spectrum works in many situations, particularly if complexity is somewhat linear (i.e., moving from simple to complex). In some cases, you may find it useful to paint other colors in the middle of the spectrum too. I tend to find that this latter situation works more in written or visual presentations.

Q&A On Management Consulting and Leadership Topics (On Quora)

For those unfamiliar with Quora, it is one of the emerging “question and answer” sites on the Internet. Although its positioning is not quite clear to me yet, a point of difference relative to other sites (like Yahoo Answers) is that Quora integrates aspects of social networking technology. Throw in a carefully-honed, early-adopter market segment and some venture capital hype – the result for now seems to be a high-quality, professional dialogue hub.

In any case, I thought I’d share some answers I’ve provided to several management consulting and leadership questions posed on the site:

Let me know what you think. Thanks!

The Power of Project-Based Thinking

As a consultant, 2010 has been an interesting year for me to reflect upon. I am thankful for the clients I have, and they have challenged me to perform my best in a very diverse set of circumstances and industries over the past couple of years.

What was particularly interesting this year was the mixture of smaller, project-based clients versus clients that had more of a retainer-based model engagement structure with me. These bookend engagement structures have different tradeoffs, and one thing that I developed an even deeper appreciation for was the ability to take a “project-based” perspective to either engagement structure.

Although I’m going to leave out an explicit definition of project-based thinking to provoke thought, for me here are some of the benefits I have seen:

  • Since project life can end at any moment, fewer things are taken for granted
  • Agile performance necessitates optimizing the communication and analysis organizational structures
  • There is an increased focus on output and measureable results
  • A focus on output in turn requires decisions to be made more quickly
  • Excess capacity or process inefficiencies become more readily exposed
  • A need for quicker decisions increases the need for management to articulate strategic tradeoffs more crisply
  • There are often concrete efforts to balance benefits (e.g., revenue) against costs (e.g., expenses) and investment levels
  • The goal of driving through a project can help break through barriers and challenge inertia often systemitized by a “corporate structure”
  • A focus on project goals can help bring out the best leadership qualities of the project team.

What are your thoughts? To what extent can consultants, contractors, and employees be engaged with a project-based approach?

Other Resources for Inside Nudging

These are other miscellaneous resources that may be of interest to readers of Inside Nudging.

  1. Video: Capuchin Monkeys and Fairness
  2. Loss Aversion Calculator
  3. Retirement Goal Planning System app
  4. Video: D-Light Club Card by Idmoo | Idomoo Website
  5. Video: Voya Financial Personalized Account Videos for Retirement Plan Customers
  6. Video: Personalized Pension Statement by Idomoo | Idomoo Website
  7. Video: Personalized Pension Statement by Mercer UK
  8. Video: Barclays Personalized Lending Video
  9. Video: Barclays Direct Marketing Award with Personalized Videos
  10. Video: The Aviva Reality Check | Shape My Future
  11. Video: Tobii Eye Tracking System
  12. Video: Wearable Eye Tracking, Tobii Pro Glasses 2
  13. iMotions: Biometric Research Platform (“plug and play”)
  14. Video: Orange FutureSelf Demo | Orange Future Self Site
  15. Whitepaper: Econs, Humans and the Perception of Risk
  16. Whitepaper: The Neglected Variable Affecting Portfolio Choices in the 21st Century
  17. Whitepaper: Using Decision Styles to Improve Financial Outcomes
  18. Whitepaper: Engaging Employees to Take Action in a Digital Age
  19. Working Paper: How Do Consumers Respond When Default Options Push the Envelope?
  20. Journal Article: Consumer Preferences for Annuity Attributes: Beyond Net Present Value
  21. Article: How Digital Tools and Behavioral Economics Will Save Retirement

Session Description for Nudge Units: Applying Behavioral Science

In this session we will explore the implementation of behavioral science initiatives and applications within commercial settings. Topics to be covered include frameworks and key takeaways in leading an organization that implements behavioral science. To make these frameworks concrete, we’ll also cover some detailed case examples of how companies have applied behavioral science to improve outcomes for constituents.

Downloadable Figures for Inside Nudging

These are downloadable figures for Inside Nudging.