Welcome | Sign In
CRMBuyer.com
Tech Buzz

INDUSTRY ANALYSIS
Wanted: CEOs with Skin in the Game

Print Version
E-Mail Article
Reprints
Wanted: CEOs with Skin in the Game

A CEO must have a passion for the company's business. While it will never be mentioned in a 10Q or 10K filed with the S.E.C., if you know companies well enough, you can recognize a lack of passion at the top. When CEOs lose their fire, their solutions to problems sound more like apologies than action plans.


Considering CRM solutions?
You first need to understand CRM best practices. Before committing to a CRM purchase and implementation, it's good to know the experience of those who have already "been there, done that." It can save time and prevent costly missteps. Download Free Research.

It is often said what separates one company's ability to develop, execute and sustain a CRM strategy is the active involvement of the CEO.

But it goes deeper than that.

Too many times channel management, pricing, order capture and even order management initiatives fail because the CEO pays lip service to project but doesn't really get behind it. The projects that succeed have the unmistakable imprint of a CEO's commitment.

Change Comes From The Top

In many public companies these days there is a polite but cold distance between senior management and middle managers. Senior managers in unprofitable companies act as if they don't trust the management beneath them anymore.

This is certainly the case among C-level executives of public companies that have not seen profits in three or more years. Yet these are the companies most in need of channel strategies, improved pricing and a better handle on their existing customer Increase Customer Sales with Email Marketing -- Free Trial from VerticalResponse relationships.

Often the managers who bring in channel strategies, pricing, CRM, order capture, order management or services applications fight for months, even years, to get needed changes implemented.

What's impressive is that these managers know what CEOs have forgotten or may have never have known: Only passion for change produces results --nothing less really works.

There are manufacturing engineers at global conglomerates who worked passionately for years to bring changes to quoting and proposal systems. That's true commitment to positive change.

What Separates Good CEOs from Bad?

Customers and Products

Good CEOs personally visit and get to know the top 20 percent of the customer base. The CEOs truly understand CRM are excellent on sales calls and understand their place in the sales Download Free eBook - The Edge of Success: 9 Building Blocks to Double Your Sales process. They genuinely enjoy meeting customers. To these customers the CEO is the face of accountability for the company.

Similarly, good CEOs spend at least 30 percent of their time on the road learning from customers, especially those who are doing the most innovative work with their products.

A CEO must also understand sales pipelines, even for unsuccessful products. What's amazing is that many CEOs have no idea how some of the less talked-about products or services are doing in their companies. If CEOs are going to be the agents of change, they need to understand why some products move slowly.

Outsourcing and Struggle

A company's global outsourcing strategy should be thoroughly understood by the CEO. And the CEO should be unafraid to talk about it.

Too often, CEOs don't acknowledge the struggles involved in outsourcing their manufacturing operations. As a result many CEOs pretend their outsourcing is going well when it is in fact a disappointment -- or at least far more difficult than expected.

No CEO wants to admit failure or even struggle -- and no company has openly admitted that its manufacturing outsourcing strategies were failures. It is a couragous CEO who can own up to successes and failures honestly.

This issue has important ramifications for customers. The link between outsourcing and CRM is critical, especially in manufacturing, where quotes and proposals need to have delivery times mentioned.

The Passion of the CEO

A good CEO should be personally involved with automating channel and customer strategies. This is when change really starts to happen. What's ironic is that the mid-level managers typically given the job of championing change are not respected enough in the field to enforce any kind of carrot-and-stick strategy .

And, finally, to be effective a CEO must have a passion for the company's business. While it will never be mentioned in a 10Q or 10K filed with the SEC, if you know companies well enough, you can recognize a lack of passion at the top.

When CEOs lose their fire, their solutions to problems sound more like apologies than action plans. Channel strategies and CRM implementations fail many times either directly or indirectly because of this. Heavy Investment by CEO The bottom line is this: For channel and customer-facing strategies to work, C-level executives must have "skin in the game."

CEOs have skin in the game when they have so much invested -- commitment, earnings or both -- that they give a project their complete attention. They are genuinely committed to the success of an initiative and make sacrifices to ensure success.

If CEOs lose their passion for improvement, they have lost their careers. And while there are plenty of ways to excel as a CEO, the one that employees, suppliers and customers respect most is a passion to improve how well the company serves those outside its own four walls.


Print Version E-Mail Article Reprints More by Louis Columbus


More by Louis Columbus

Don't Manage Your Channels by Crisis
November 03, 2008
As businesses look for places to save money, one area many are considering is sales channels. Before you go and just cut loose your underperforming channel partners, however, see if you can get the relationship to work more efficiently, writes columnist Louis Columbus.
Social Networking: Still Challenged by Enterprise Complexity
October 20, 2008
While many companies see the value of social networking on a conceptual level, they're having trouble integrating it into their enterprise IT workflows, writes columnist Louis Columbus. Developers, however, are looking for ways to make it happen.
Generating Leads in a Web 2.0 World
October 06, 2008
Web 2.0 technologies have changed the way companies and their customers interact, writes columnist Louis Columbus. So, he advises, companies should update the message they deliver to their customers to take better advantage of this new conversation.
Don't miss a story -- sign up for our FREE e-mail newsletters and view the latest headlines at a glance.
Tech News Flash [ View Sample ]
E-Commerce Minute [ View Sample ]
ECT News Network Weekly Newsletter [ View Sample ]
Shortcuts
ECT News Network Information
Reader Services
Corporate
ECT News Network