Showing posts with label business success story. Show all posts
Showing posts with label business success story. Show all posts

Wednesday, March 16, 2011

CMOO – Fad or Fabulous?


Why add another “O” to an executive title or in some cases add an executive to the team? Doesn’t this seem like a fad or a way to add self importance, or God forbid, a way to fatten a probable over inflated or over worked executive team? Here’s my take.
Whether you add an “O” or merely acknowledge that there is a need for Marketing and Operations to be synchronized, on the same page, or at least talk and plan together is what is important. The point is that the two are interconnected to achieve success.
I know from my personal experience that when I am in a Marketing role and I mention that I managed a 150,000+ sq. ft warehouse with over 1,000 skus plus a mail house operation, I immediately get more respect and cooperation from the Operations people because they know “I get it”. I know what it is like to manage the project from a time, resource, equipment and budget standpoint. Yes, I know how to drive a forklift and I can stuff envelopes too (when the auto-stuffer is broken!).
One of my ex-college professors at UCLA teaches that organizations behave the way in which they are structured. The theory is that there has to be a fair level of balanced power. This thinking, although I have experienced it WAY TOO many times, reminds me of our human pettiness. “I’m a Director and you are a Manager so what I say goes.” This type of mentality, albeit efficient on the battle field, has outgrown its usefulness in today’s web-like matrix organizations. Now, don’t get me wrong, as our dear past president would say, you need a “deciderer” ;) and that is a given, but the dialogue, planning and creativity is best when everyone contributes. Some of the best ideas and solutions that I have been the “deciderer” on (LOVE saying that—tee hee) have sprung from the insight of an administrative assistant or receptionist! Yup, I said, “an administrative assistant or receptionist”.
It makes sense when you think about it. Their role often involves listening, observing and learning the idiosyncrasies of different people. In other words, they see, hear and know a lot. Any time I go into a new situation, I make fast friends with the receptionist. You’d be amazed with the info I have procured prior to a client meeting, interview or pitch. They are a fountain of information on corporate culture, individual worker’s preferences and are usually on a first name basis with the CEO. (I wrote about this in an earlier post advising people to ‘always be nice to the receptionist’.
Now back to the “O” dilemma. I haven’t seen it work well when the Marketing Head reports into Operations – say a COO. Usually great ideas are laid to bed when the COO hears of the cost, complications, etc. This is especially true in lean organizations where the COO also has finance report into her/him. In situations where the CMO and the COO are equal, it generally falls to the “deciderer” to either pick a “winner” or dilute the plan with compromises that make the plan far less zealous than originally planned.
By creating the CMOO position, it is a huge nod to marketing folks that they need to be intimately knowledgeable with the operational aspects of implementing their grand marketing scheme. I cannot tell you how many operational people roll their eyes when they are told that they are being brought into a launch for a ‘new marketing program’. (The “launch?” They should have been brought into the brainstorming session!) These meetings usually end in a disaster or the campaign suffers because the marketing people didn’t even give implementation of their grand idea a thought and inevitably, it is either too costly or too timely to implement as they designed it. 
So, I guess, I vote “yes” on the extra “O”. If for no other reason than it creates an educational, if not at a minimum, an understanding that successful marketing MUST HAVE successful operational support and process integrated into the campaign. With the cohesion of Marketing and Operations, working shoulder to shoulder (or brain to brain) there is a much higher probability that a hard hitting, ROI driven, timely and effective campaign can be launched without any huge surprises or the dreaded words, “that can’t be done”.
So, a word of advice to those marketers who are not in an organization where marketing and operations are thought of as close family relatives, take your counterpart in operations out to lunch. And, at lunch, tell them what you are thinking about doing and ask them, “how (or would) that work?” Not only will you learn something, but you’ll gain a friend and maybe some support. You might even gain a friendly hand when you’re deep in trouble trying to accomplish something for the company or a client in an unreasonable timeline that has been dictated to you.
This post is dedicated to all of those amazing operational friends who taught me so much and saved my “bacon” many times when I was in a pinch as a marketer.   


Wednesday, February 2, 2011

Know When to Hold 'Em - Know When to Fold 'Em- Part Deux

One of my previously posted blogs on this topic was about having the courage to know when to close your business. Well, this is about having the courage to take a big (but calculated) risk that your business still has life in it.

A friend and sharp business woman from one of the best schools that I know of, "The School of Hard Knocks," shared this story with me and I wanted to share it with you.

A little background.... this friend and I met in the small town we grew up in. We both went to work very young and both were managing businesses before we graduated from high school. With that, as we both remarked last week during lunch, was the pleasure and luck to both have worked for straight shootin', high expectations, solid foundation business people. Both of our bosses took huge risks by putting their businesses in the hands of very young women. As I recounted to her, "I was sent to LA to Fashion Week with a budget of $10k (this was A LOT of money then) at the age of 15 to buy a store full of junior style clothing for a boutique." Even as I said it all of these years later, it amazes and honors me that the owner had that faith and trust in me to do this. Although, I must say, I did a good job -- so it worked out for both of us ;)

Anyway, this friend now owns a children's boutique in one of the trendiest malls in LA. If any of you have ever been in retail, you know that restaurants and then clothing stores are at the top of the food chain for failing. So she took a big risk 20 years ago when she committed to a lease - an expensive one - and took the plunge. She has had some great years and some so-so years, but this Recession really shook her to her knees.

The numbers just weren't there and the decline happened so fast she couldn't even believe it. At first she thought it was a blip on the radar but then, it continued. And, as always seems to happen in mall management negotiation, they tossed her a grenade. They were moving her into a space 1/2 the size for the same amount of rent she was paying for her current space -- right before the Holiday Season. 

That was it. She was sure she was down for the count so off to the BK attorney she went. Fortunately, she landed a thoughtful attorney with a heart. At the end of the meeting, he asked her a game changing question, "How long can you work for free? I think you might be able to pull out of this if you really want it." She was stunned. She had already thrown in the towel and was ready to let her dream go....but something inside her answered, "Until after the Holiday Season".

She and the attorney then reworked the numbers and came up with a skeletal staff level, a way to purchase product to get through the Season and she jumped in with both feet, working harder than she had worked since her early days in a fast food joint. She kept her best employees and had daily meetings which included a session on positive thinking, soulful selling techniques and the goal of having the best Holiday Season ever.

Guess what? She's still open and it is February 2nd and she did have THE BEST Holiday Season ever and it was followed by THE BEST January she has ever had. (Keep in mind, she is in a space 1/2 the size of her old space, paying the same rent and is working with a bare bones staff.)

She made it! While others died on the vine this last Season, she did better than she had ever done before. Why? Well, I have my theories, but I'd love to hear from you!

Why do you think she brought her business back to life and even exceeded her own expectations? I can’t wait to hear your answers…..

Wishing you the best,
Mary Mussard