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Business Strategy

March 30, 2008

Why Can't Sales and Marketing Learn To Get Along?

In all my years working in marketing and communications departments (both large and small), it still continues to baffle me as to why sales and marketing teams don't seem to get along. Yes, there is mutual respect to some degree. After all, everyone is interested in the same thing - how to craft a creative and persuasive message that will attract people's attention and prompt them to action leading to increased revenues.

The difference between sales and marketing isn't always obvious, but one could say that:

  • Marketing is the process of defining and/or creating a market niche(s) in which to "sell" a product or service. To do this requires a fairly structured and managed process that involves input from numerous stakeholders and a plan in which to "attack" the market.
  • Sales is the tail end of the process and is focused on getting the order.

Considering that they both share the same end goal, why is it that sales and marketing departments don't get along?

Here's my theory (gained from years of experience working on both sides of the fence):

1) Sales departments often don't have a keen understanding of the dynamics and thought process behind the creation of effective marketing strategy

2) Marketing departments are often seen as "dumping grounds" for marketing and communications materials versus places where strategic thought is originated

3) Marketing professionals often play on the stereotype that salespeople are 'pushy' people with no other goal in mind than chasing the almight dollar - the image of a "slick" salesperson comes to mind

In the midst of all this misunderstanding, one thing remains true. For a company to make profits, both departments need each other. Without the preparation needed to bring a product or service to market, sales teams would be wasting valuable time in the field chasing prospects with absolutely no potential. Without an effective sales team, product wouldn't be sold, and this would have tremendous impact on the bottom-line.

So, before you resort to that corporate practice of game playing and start "passing the buck" to other divisions...remember that it's in a company's best interest to learn to get along. Without sales and marketing, there would be no product and no sales. And, as we were all taught in business school, nothing happens without a sale.

What experiences have you had working in sales and/or marketing departments? Did you sense tension between the two areas? What, if anything, were you able to do about it?

October 19, 2007

CEO's Shine at 2007 Canadian Business Leadership Forum

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I was downtown yesterday attending the 2007 Canadian Business Leadership Forum. The forum featured insights from some of Canada's top business leaders, as well as a panel discussion of the 2007 All-Star Execs hosted by the editor of Canadian Business Magazine - Joe Chidley.

The general theme was "Creating Competitive Advantage", and each speaker gave us tips on how they are helping their companies stay on top of their competitive game.

Here is a quick summary of the highlights of each speech:

1) Martin Parker - Managing Director, Waterstone Human Capital - "How Corporate Culture Impacts Competitive Advantage"

  • The definition of corporate culture is "It's how things are done around here"
  • "We're in a war for talent - there's a growing scarcity of human capital in Canada"
  • Companies have to create an employer brand based on an employee value proposition
  • When companies hire, they are looking for "fit" (ie. which behaviours will work in our organization?)
  • Companies should get out of behavioural interviewing (often they are merely a performance) and get into business planning style interviews to give employers an idea as to how potential candidates THINK

2) Louie Mele - President, McDonald's Canada - "Keeping the Golden Arches Shining"

  • One reason that McDonald's failed in some cases with new product introduction is that we "took our eyes off our fries"
  • Three of the key elements of competitive advantage are: principles, business models and innovations
  • We build our business model on the principle of the 3 legged stool (Ray Kroc)...customers, suppliers and franchisors. If one leg fails, the whole stool falls down
  • "We operate a global brand in a local way"
  • Our brand mission is to be "our customers favourite place and way to eat"

3) W. Brett Wilson - Managing Director and Chairman, FirstEnergy Capital Corp. - "Partnerships, Priorities and Prairie Ethics: A Survival Guide For Success in Business and in Life"

  • "We partner with people, not assets"
  • You could describe our company as somewhat maverick with a lot of attitude
  • "We all ride for the brand"
  • Giving back and creating a legacy are very important (on the subject of charity work)
  • "Sometimes you have to give yourself permission to make changes in your life"

4) Kevin Dougherty - President, Sun Life Financial Canada - "Competitive Advantage in Financial Services"

  • "Competition for resources and glory can kill an idea in a large corporation"
  • You have to "shift the path of competition in your favour"
  • Business strategies should be cross-competitive

5) Doug Cooper - Country Manager, Intel Canada - "Leading in the Knowledge Economy"

  • On the subject of corporate blogs..."sometimes you just have to let the conversation happen"
  • "Engagement goes up dramatically when you allow your customers to talk to you"
  • "There's a shift from Assets to Values" (ie. from Web 1.0 to Web 2.0)
  • Web 2.0 is a commitment to participate - it encourages conversation across silos in an organization

6) Bill Buxton - Principal Researcher, Microsoft Corp. (author of "Sketching User Experiences: Getting the Design Right and the Right Design") - "Great Ideas Are A Dime a Dozen. It's What You Do With Them That Counts."

  • A recent Conference Board of Canada report gave Canada a "D" in the area of innovation
  • We don't know how to communicate good ideas
  • We are taking all the play and creativity out of kids and then wonder why they're not entrepreneurs
  • "Safe and reliable" is the most dangerous thing you can do - it leads to certain death
  • Design is choice, and creativity can be brought to alternatives and to the heuristics of choice
  • Quote from Alan Kay - "It takes almost as much creativity to understand a good idea as it does to have it in the first place"
  • Innovation is an extreme sport, and involves the right: skills, tools, fitness and partners (just like in mountain climbing)
  • The stuff that will make a difference in the future is already 10 years old

How do you create competitive advantage in your company? How do you foster and encourage innovation and creativity?