Ali Ghaemi

Mar 122010
 

A SIX SIGMA PRIMER

whatissixsigma

Coincidentally, only after picking What Is Six Sigma did it occur to me that the book is related to another one I recently put down. In fact, What Is Six Sigma was mentioned and cited in What Is Six Sigma Process Management? By Rowland Hayler and Michael Nichols, which I put down in December. The fact that the books have the same publisher and similar cover designs should have given it away, but either the clues did not register or the power of subconscious is greater than believed!

The book at hand is really for all levels, which appeals to the beginner in me. The material spans from introductory and nuts and bolts to advanced. Most readers would be able to benefit from the contents if not utilize it as a starting point. At less than one-hundred pages, the book is short and does not contain a glossary or index.

“Six Sigma puts the customer first and uses facts and data to drive better solutions,” states page two, while beginning page fourteen the authors – whose credential are both academically and in practice impressive – assert the six themes of Six Sigma to include 1- a genuine focus on the customer, 2- data and fact-driven management, 3- processes are where the action is, 4- proactive management, 5- boundaryless collaboration and 6-drive for perfection; tolerate failure. This last theme insists that companies need to be ready to handle problems and willing to take risks. Theme number five is often promoted outside Six Sigma circles, but rarely given air. Perhaps this formal process could be its saviour? This chapter also insists that while some of the aforelisted might already be on your company’s agenda, this system brings them all together.

From there, the book gets considerably more technical in its mid-section delving into processes, techniques, statistics and analysis. These tools, skills and processes aim to deliver 99.99966% accuracy into the company’s near future. As the book admits, Six Sigma isn’t about incrementalism, yet the DMAIC (Define, Measure, Analyze, Improve & Control) cycle is best suited for projects that are “meaningful and manageable” the authors counsel.

The end chapters have advice for members of the Six Sigma working groups, non-members, senior executives (champions and sponsors) and provide the reader with a somewhat limited and cursory set of real-life examples. At one point, the authors get into advocating for Six Sigma beyond describing and defining the system. The promotion takes the form of unconcealed advertising. Given that – that is if the authors choose to go into this space – a more balanced take would have been beneficial. Insisting that anyone disagreeing with Six Sigma is an obstructionist or defensive or that folks involved with Six Sigma are holding a ticket to promotion, while others might be making a career-limiting move (p.75: “Doing so is potentially risky to your long-term employment…”) is dubious and unhelpful at best. These pages take earlier assertions (p.22: “Black Belt-hood as a springboard to … promotions and bonuses.”) to a new level. If the authors have chosen to wade beyond description and definition of the process and into advocacy then a balanced approach is called for. After all, many companies and individuals never get involved in Six Sigma and have turned out well. Nevertheless, What Is Six Sigma is both interesting and beneficial and a good, quick and concise read for those interested in the topic.

Mar 122010
 

THE AUTHOR’S PARABLE FOR CHANGE AND HOW TO DEAL WITH IT

who moved my cheese

Who Moved My Cheese? is a perennial favourite and oft-cited book dealing with change management and perception. Having just re-read The One Minute Manager – written by the author Spencer Johnson and his co-writer Kenneth Blanchard who supplies a foreword here – picking up this book was of even more interest to me. This book is a short and an easy read given its many images, compact text and larger font.

It is not difficult to understand the many scornful reviews of this book. Change is an important concept and a reality. The book makes valuable points regarding the notion and its inevitability. Much of the parable and its lessons, which are simply put, but are anything but, are true and the stuff that make or break companies and people. Having said that, the writer’s simplification and quite one-sided take on the world of change is shocking and rather insolent.

Yes, change might be (and is) everywhere, but it should not be a self-fulfilling prophecy and a crutch – or metaphor for – irrationally explaining away anything and everything. Companies/societies/families and their respective leaders/politicians/heads have responsibilities and one of those is guidance and disciplined change or, better yet, improvement and pertinence. It is a wonder that the metaphorical characters receive no guidance or signposts. It is as if the author is advocating a free for all laissez-faire regime where anything goes and no responsibility is expected of those whose positions, experience and remuneration is based on management and assistance. Worse, the non-thinking mice are lauded, while the analytical ‘little men’ are derided. While not seeing or expecting change is indeed dire, and not reacting to it is worse, criticizing the thinking men is taking things one step too far. Spencer Johnson suggests Hem And Haw should think less and be more animalistic like Sniff and Scurry when in ‘The Maze.’ It is odd and, to use hyperbole, reminiscent of the behaviour seen in fraud and failures like Global Crossing, Adelphia and Enron where everyone did as they were told and did not give it a single thought. After all, ‘change happens’ these folk probably were thinking (or weren’t). Even the markets know that too much change is bad as evidenced by corporations fleeing revolutions or stock markets plunging in the face of change for its own eternal sake.

Let us be careful, Who Moved My Cheese? has a commonsensical idea and is correct in its insistence that people like their ‘cheese’ and hold on more firmly the more of it they have. This indeed is a recipe for future failure. It is what we would call behaving like a fossil, but there is no guarantee a better cheese is available elsewhere, or contrary to what the book claims, something else will be discovered… just by virtue of a mindless search. It is offensive to say that employees, workers, citizens should not expect any “benefits” as per page thirty-eight. That is both contrary to logic and unfair to people who have built a society or made a company what it is. Without a carrot, no one will bite after all. What does make sense is page forty three’s reminder that that one needs to stay sharp, adapt and not lose his or her edge. Doing the same thing over and over is indeed dangerous in most circumstances. What I certainly liked about the message was that one should not be afraid. What would one do if he were not afraid?

Humans have learnt to analyze and hopefully re-analyze as a learnt behaviour that is conducive to survival. Most of our learned behaviour stems from millennia of adapting to conditions and the instinct to survive. Even mice do the same despite the author’s metaphor to the contrary. It is only after such a process that one can approach change. And one option might be to not go on a search when no supporting evidence exists that setting out would be desultory, contrary to rational thought or the opposite of the lessons of experience. “Movement in a new direction” might fulfil the promise of new cheese or might lead to a drop off the cliff.

Not to belabour the point, but having read the book one remains unconvinced of the absolute supremacy of one option over the other. Remaining static, stationary and unimproved is not fruitful. Making changes for the sake of changing and doing so out of habit or as a way of hiding the actual reasons behind an occurrence is also disingenuous. Change is a fact, will happen and can, and often is, for the better, yet promoting it for its own sake or as a pretext is dishonest and that is where Who Moved My Cheese? goes too far.

Mar 122010
 

A Classic And Simple Management Tale

oneminutemanager

It is likely reasonable to deem The One Minute Manager as a classic among management books. The obvious theme is managing people and employees, but the cover promises ways to simplify one’s life, get more done and be less stressed. Along these lines, the authors have penned several other tomes including The One Minute Father/Mother, The One Minute Sales Person and others.

The One Minute Manager emphasizes human dynamics and managing people as a means of achieving results. It might seem foreign or simplistic to some who espouse technology over people, blame employees first due to a preference for a top-down culture, care more for corporations than people, and ironically end up serving neither or those whose books and programs are not served by conceding to the fundamentals, but that highlights the need for the book even more.

At first, the notion might seem absurd or a stretch, but the book is not a gimmick. The authors are a Ph.D. holder and M.D. respectively and have based the short and straightforward book on research into human behaviour and stimuli. This was my second time reading The One Minute Manager (The ‘One-Minute’ Manager?) and it felt as interesting as the first time, which was back in 1996. After all these years, the advice of Kenneth Blanchard and Spencer Johnson rings true as does the endorsement of C-level persons from firms like Chevron and Jack In The Box.

Perhaps like the reader, the book’s narrator is a somewhat incredulous and curious person who is justly sceptical about the concept. He meets a man who is a ‘One Minute Manager’ and has three tips. While these might sound simple and obvious the detail and methodology is the key. Using a story format, the book hones in on the three basic components of human management each of which should take approximately a minute to accomplish following the initial discussions and training that come with being a new employee or the initiation of a new project.

1- One Minute Goal Setting. The technique insists on writing one’s actionable goals down in a concise format of one page with no more than 250 words. That leads to knowing how to constantly measure performance, reviewing them and agreeing to them with one’s manager.

2- One Minute Praising. This is part of an upfront contract. Praise should follow the commendable action immediately and be specific. Impart sincerity by offering a slight physical touch and encourage more of the same.

3- One Minute Reprimand. This is also part of an upfront understanding. The criticism happens as soon as the manager knows of the mistake and is very specifically about a behaviour and not the person. This is followed by a few seconds of silence and a reversion to the praise of the person overall. Do not dwell on it. Be tough at first in order to make sure the pleasant part comes second.

People Who Feel Good About Themselves Produce Results. The number one motivator for humans is feedback on results.

Feb 172010
 

I was recently part of a discussion on CRM and the best way to choose a Customer Relationship Management package. With CRM/SFA/contact management becoming mainstream and accepted more and more questions come up about which one of the myriad of options is the better one.

I have been part of sales team for Oracle CRM and Sage CRM. I have also been the user, competed against or part of the buying process for Siebel, SAP, Salesforce and Sage. Here are my thoughts.

First and foremost, the starting point should not be the features and functionality of the technology. The departure point is the needs of the buyer, the existing processes of the company, how they need to change and improve and the goals that need to be realized. If these factors have not been mapped then the company is not ready for a CRM purchase.

Moreover, which software has proven capability in the buying firm’s niche, vertical or broad industry?

Next, remembering that CRM is there to enable the company to know itself and its customers, how does the productivity tool play with the company’s actual data and processes? This is where a customized demonstration including the aforementioned information is very helpful. No, not a generic demo and no not a downloaded sample of the program. Can one see the needs fulfilled in the CRM and can one see the desired improvements fulfilled in the potential package? If any integrations are required, can this be demonstrated? What about the reporting capabilities, formats in which the reports are available and, crucially, their ease of use? Which vendor gives you the best training for their product?

Incidentally, avoid paying for features one does not need and will not use.

I don’t want to get into the hosted versus on-site flavours of CRM discussion here, but should one be considering a hosted or SAAS (Software As A Service)/cloud software (the cloud refers to the nebulous Internet mode of delivery) the question to ask is what happens at the end of the contract period. Who owns the data? How can one receive it from the hosting company? Is there an additional fee attached to these stipulations?

Of course, cost is a factor. SAAS operates on the leasing model (low up-front costs/potentially more expensive overall), while the traditional method gives you the software in perpetuity (except there is an installation cost and time-line that needs to be factored in). As I said, won’t get into this aspect more at this time.

The technology’s capability will only follow the determination of wants, needs, processes and desired outcome strategies. Mastering these has the added benefit that they necessitate consulting and working with the end-users of the product, thus helping obtain their buy-in. What is the purpose of buying CRM if sales, service or the marketing department really do not want to use it?

Untitled7

Feb 142010
 

A professional marketing contact brought up the topic of outsourcing telemarketing and lead qualification and generation this week. What are the advantages and pitfalls of such arrangements?

Marketing departments like these services and gravitate towards such arrangements. Sales managers are desperate for sales and are looking for solutions. Salespeople are often less amiable. The arrangement frequently leads to tension between the sales and marketing departments, within the sales departments and even discourages the sales team from pursuing any leads that have been generated if the initial pass is less than optimal.

Outsourcing is no longer exceptional at companies of any size. Respective marketing departments feel that outsourcing agencies are a simple and relatively pain-free answer to the demands of the organization for lead generation and lead creation (after all that is part of what marketing does). The sales department is constantly asking for more and better leads. It all seems to come together. Consequently, the number of outside agencies that take over some of the functions of sales and marketing departments has ballooned. From being the front-line for inbound calls to outbound calling and even setting appointments the outsourcing firm stands ready to do all or a part of it.

Marketing is looking for a Return On Investment justification.

Sales is looking for increased sales leads or slam-dunk sales.

Sales management is hoping for the same as above two, and needs to ensure the integrity of its processes and effort.

I have been involved with organizations that have hired outsourced firms several times. The results have been uneven. The promise, inevitably, exceeds what is delivered. There is no silver bullet and if anything is too good to be true, then it is.

Here are several tips and factors to consider:

  • Marketing must involve and integrate the sales department into its decision-making process. If the decision is made to go ahead then the salespeople – the direct beneficiaries of the outsourcing – should be part of the team that trains the outsourcing firm’s team.
  • Do not short-change training.
  • Plan for change management. How are product updates handled? How are changed versions taught? How is a change in company goals and target market communicated? Have you budgeted for these including trips, visits and training?
  • Do not discount the need for airtight definitions including leads, prospects, hot ones, credit, time-lines that are acceptable, appointments (should that be part of the mandate) and the definition of acceptable and unacceptable leads, calls, appointments, sales, etc. While outsourcing companies often provide some credit or replacement time, calls or leads for any ‘returned’ results that were not acceptable, these can quickly become overwhelming and a source of dispute. Moreover, companies do not always have the best feedback mechanism set up internally.
  • Similarly, what are the metrics, what is the formal mechanism for feedback and what rights does it confer upon the two parties?
  • Could you, for efficiencies sake, integrate and automate your internal sales tools and software with the outsourced agency’s?
  • What is your fallback and contingency plan? Should the new arrangement not succeed have you kept an infrastructure in place that can be reactivated internally?
  • What is in the contract cancellation clause?
  • Do not allow the new arrangement to become a source of conflict between different departments. Involve all concerned prior to pulling the trigger (see first bullet above) and have an internal charter, agreement and buy-in before proceeding. To do otherwise, is to contribute to disappointment and create resentment and disenchantment just the opposite of what the sales and marketing groups sought.
Jan 162010
 

Most serious salespeople know that asking questions is better than talking when selling. The most elementary type of questioning is what I call Level I questions. Example, “How much do you have to spend?” or “what features are you looking for?” Standard stuff, but better than telling a customer your cars are $30,000 or that they come with three DVD players inside without caring to find out about their budget or needs in the first place.

Level II questions are posed when the salesperson goes beyond the obvious, customizes and probes deeply. I have never come across better Level II questions than what SPIN Selling offers. “How much lost produce would not having an irrigation system result in annually? Could you quantify that?” Level II questions address implication and consequence in a personalized manner.

Most people in sales, however, are not aware of the Level III. These questions relate not so much to what you need to do as they do what the buying person/firm/group needs to do. Politics, Personality, Proof, etc. are all reasons a sale either does not happen or is postponed.
A Level III questioner asks about the buyer’s internal processes recognizing that there are always internal processes at play. Level III questions ask what is going inside the labyrinth the buyer lives in. By knowing this, the seller can begin assisting managing the internal issues. Just because the sales team has done an outstanding job producing compelling reasons for the sale to happen with which the buying team has no argument it does not follow that internal buyer mechanisms have been triggered. Be a Level IIIer and ask how you could work to take agreement to a Purchase Order.

While you are it review the below article.
The Other Side

Jan 032010
 

Which one of the below have I heard recently?

  1. I got hired when I met the VP at a class.
  2. Many of the people in the office were hired after meeting each other at church. That is normal at my company.
  3. The Vice-President hired me before my eventual manager met me. No one told my manager.

The answer: 1, 2 and 3.

Hiring a salesperson is one of the biggest decisions a company makes. Managing that salesperson (aligning his or her goals to the company’s objectives) to be successful is going to underwrite the success of the firm.

Hiring a salesperson should never be left to feeling. ‘More science, less art’ as I always say.

Part of the problem is that the hiring managers really do not know how to hire. There is a general notion of the kind of salesperson should be hired (very much like the general public likes to eat Sushi, but doesn’t know enough to stay away from Kushi i.e. Korean ‘Sushi’ or Cushi i.e. Chinese ‘Sushi’), but the feeling is never formalized. Given this dilemma, it is no wonder that salespersons are often mismatch.

authentic

Any company and its hiring team need to have formal and written criteria on what constitutes a good hire. As importantly, the plan is useless if not followed. No more, “I liked her. She seemed aggressive” platitudes.

A good hiring process includes:

  1. A formal qualifications list derived from industry best practices, company objectives and what has worked at the company.
  2. The interviewer(s) need to be familiar with the position and its requirements.
  3. The candidate should be able to sell the interviewer on him or herself and their track record of success.
  4. The candidate should be able to sell the interviewer on a product or service. This doesn’t need to be the company’s own given that the person is, as of yet, not intimately familiar with those.
  5. The candidate needs to demonstrate a presence of mind and the ability to handle surprise questions and unexpected situations. The reality is that customers are more knowledgeable and educated than ever. Since no one can predict a prospect’s next question or reaction or an existing customer’s issues being able to respond with knowledge and respect is important.
Dec 292009
 

Sooner or later every salesperson comes across a buyer who believes in him or herself to such an extent that doors are shut even before the sales process begins. These prospects are potentially current or former Mr. or Ms. salespersons that either consciously wants to make life difficult for the salesperson or have a point to make regarding their own tough as nails trait. There are two ways to manage this difficult situation.

Firstly, be prepared to declare your intention to abandon the sales process. “Ms. prospect, I can see by your reaction that no matter what I say or show today, you are not interested. Given that, I believe it is a better use of both our times for me to leave.” It is a stronger version of Sandler’s ‘negative reverse’ (“I am not yet sure whether we have a solution for you). It is like verbal judo. Their grisly exterior and standoffish personality used to inform the prospect that they have gone too far with the closed-mindedness and you will not be a victim. Time to fold.

Naturally, this applies if you have exhausted your options. For instance, as a prerequisite, have you really listened to the customer? If not, read this: http://www.alighaemi.com/wp/?p=411. In all cases, control your emotions, save yourself the wrinkles and simultaneously de-escalate. As always, do not take it personally. It is not personal. Even if it is on the customer’s side, do not make it personal on your part.

Secondly, do strongly consider packing it up and leaving. After all, wouldn’t you rather speak to someone who wishes to give you a fair chance and consider your service?

Dec 272009
 

A couple of weeks ago a professional e-mailed me wondering how a young and budding new company would get new customers. This Indian-based gentleman was at a loss as to how a small, up-start company would market itself and how it would get its voice heard over the clatter of bigger competition. In that particular case, a useful suggestion was ‘guerrilla marketing.’ Creativity and novelty would have to trump inside-the-box methods.

So, how does a company go about its business and attract customers? For the purpose of this post let’s assume you are not the head of marketing for Time Warner. That is, the marketing budget is below average, limited and corresponds to the depth of experience and dedicated resources at hand.

Many would consider a variety of marketing techniques as a starting point. That would be a mistake. A much better approach would be to understand one’s product or service and the associated customer (or if not enough exist, the target market’s) psyche.

Understanding one’s customer involves understanding one’s target market. What is it? A small firm needs to be brave enough to be able micro-target. That is, be willing to accept that you will not be servicing a major portion of the society. What niche within that target market is under-served, under-developed or, due to novelty, unaddressed? Leave the prejudices behind and let the customer speak for itself. What does the market say it wants and cannot currently get. How much of it do they want, at what frequency and how much is it worth to them? Let the voice of the customer surprise you.

An existing client base will complete and augment this information. Existing clients need to be mined for information. Part of his information is already available.

  • What is the existing average sales figure?
  • At which price level, and how often, were customers lost?
  • What did they purchase, what did they not purchase and what else was added to the sale from external sources?
  • Where did your customers find you in the first place? Where did those, which were lost, end up?
  • Was the money not spent with your firm banked, spent on the company Christmas party or move to your direct competitors?

The above information should be of a large enough sample to lend itself to aggregation and slicing and dicing. Three customers: bad! Three hundred responses: better!

The data derived should enable your company to limit – that’s right, I said limit – your pursuit of customers to a very tight grouping of potential customers. All the residents of Northern France are not a target market. Expatriate Brits living within 50 km of Paris, though, is somewhat better.

This kind of triangulation will allow your company’s limited resources to be spent with a narrow target in mind. This is where a small firm will find where it needs to call/advertise/be present/sponsor/showcase/call into/other in order to yield maximum output for the tight marketing resources. Additionally, this type of marketing is self-perpetuating. The Anglophone Brits living near the capital of France are more likely to know and communicate with one another and may become your inadvertent word-of-mouth marketers (for instance).

Dec 072009
 

The Application Of Six Sigma Concepts To Improve The Customers’ Experience

sixsigmaprocess

What Is Six Sigma Process Management? is a relatively quick study at just over 100 pages; however, given a methodical structure, plain language and ample diagrams the authors render the subject as simple to absorb as possible. Being a rookie in the field the book’s methodology was indeed straightforward. How that translates to experienced readers, black belts and consultants in the field is best read in other reviews, but the presence of a concise description of all concepts involved was a plus in this circle. Having said that, a better compilation of definitions and a glossary are missed.

The authors’ definition is that “The Six Sigma Process Management methodology is a practical approach that focuses the tools and rigor of Lean Six Sigma on your critical processes in order to help you identify the most strategic and customer-focused opportunities for Lean Six Sigma projects in your organizations.” The book next relates this topic to what every company has and needs to improve upon, namely products (or services), delivery and value for employees, suppliers and customers. This is where the concept of SIPOC (Suppliers, Input, Process, Output and Customers) is connected to the basic methodology of DMAIC (define, Measure, Analyze, Improve and Control). In the case of the `Customers’ the process must be value-add i.e. customers must be willing to pay for something the company does that can be done correctly for them the first time around that has gone through a transformation before being delivered.
This book defines what it means when it speaks of a process management in Six Sigma (“end-to-end core processes” are those high-level processes that are the primary drivers of value, satisfaction and profit), goes into detail in the implementation and management phase, discusses the tools needed and ends with a snapshot of what a future organization practicing the science would ostensibly look like. One such process is the obvious one, order-to-cash. However, an inordinate amount of emphasis is given to the management of the process. The authors emphasize the needs for constant and consistent executive sponsorship and the imperative that “process governance” be maintained. The authors’ practical experience in the field likely renders the judgment that strong leadership needs to be sustained for any Six Sigma process to succeed. The presence and approval of executive leadership will prevent an emotional and practical disconnect on behalf of the participants and the failure of the project. And here is a simple formulae for measuring the effort: R(esult) = Q(uality of the solution) x A(cceptance of the solution).

As the book admits, Six Sigma Process Management (SSPM) is not for the faint-hearted. The inter-linked process requires detailed self-examination, metrics, analysis and supervision. However, it can be done and needs to be done and the tools are outlined here. Clearly, the message is that variations and detours are possible, and have been successes at companies like GE or Amex, but the hierarchy and the basics are not in doubt for these practitioners. SSPM will help identify the current processes, deducing what needs to be done and mapping a near-future strategy with the vital Voice Of Customer in mind.