Executive Yak

To many outsiders, the sales and marketing departments look alike. Yet, when you analyze the functions you begin to understand the differences and why it is sometimes so challenging to get good coordination and integration. Bottom line: in today’s market, the sales and marketing function, more than ever before, must collaborate at every level to support a strong business strategy that is executed well.  The days of easy separation between the two functions are over. The world has changed! So, with that in mind, I recently worked with another consultant that runs a sales executive roundtable to have her  leaders engage with my marketing executive roundtable in a safe, yet provocative environment to address three aspects about the marketing/sales relationship:

1)      What makes for a GOOD relationship between sales and marketing?

2)      Why ISN’t the relationship between sales and marketing working?

3)      What are the game changers on the horizon for sales and marketing

These sales and marketing executives (twenty plus of them) had never met before. They were intrigued with the idea of coming together in a setting to communicate authentically and openly with peers in an environment of trust. The whole idea behind the marketing executive roundtable is to build community amongst leaders, and to do so by using a communications model that helps us get out of our comfort zones, encourages peer coaching and interaction. The success of the model, I believe is that it is NOT replicating the kinds of experiences we all have as senior executives at conferences and seminars (which, by the way, have their place and value). The roundtable focus is on engagement, creating new synergies and ideas. Powerpoint presentations are, if not outright forbidden, at least very strongly discouraged and, in fact, rarely used.

Here are some of the observations made by the group in response to the questions we used to focus the dialogue:

What makes for a GOOD relationship between sales and marketing?

·         Mutual respect for each other’s needs

·         Building the relationship. Having fun together. Socializing. Building trust. Honest communications.

·         Sales is part of the R&D department – listening to them

·         Marketing demonstrates value/metrics

·         Marketing listens and delivers on what the sales team needs

·         There is an open dialog. Participation is rewarded

·         Marketing ties in the long term strategic plan with sales’ current needs

·         Both parties own the process and are  involved in marketing strategy

·         Sales shares success stories and marketing helps package testimonials

·         Sales and marketing rotate staff – walking in each other’s shoes

·         Marketing understands that sales is their #1 customer

·         Metrics are integrated. Goals and reward systems are aligned

Why ISN’t the relationship between sales and marketing working?

·         3 C’s of Conflict = Communication, Culture, Compensation

o   Not enough buy in

o   Power struggle. Marketing is perceived as ivory tower.  Sales doesn’t have time for marketing.

o   Everyone is a marketing expert: “I hate the CEOs wife!!!”

o   Age and gender differences. Marketing tends to be younger and turn over more. Sales stays around. More women in marketing.

o   Communication challenges – marketing is using more academic vocabulary. Sales: “If the dog don’t eat, what do you do?”

o   Technology challenges – with sales? Marketing tends to be more technologically advanced. Sales tends to be relationship oriented.

o   Sales on quality vs quantity

o   Lack of trust

o   Cultural differences

o   Lack of opportunity to share

o   Centralization vs decentralization

o   Different measurables for success – sales has a quota!

o   Academic elite impression of marketing

o   Marketing not providing the “right” tools for sales

o   Sales is street smart

o   Not balancing tactical and strategic

o   Marketing thinks they have all the answers

o   Physical separation

o   Not enough opportunity to communicate using informal channels

o   Marketing communicates too much information to sales – becomes a distraction

o   Sales does not understand why employees need to be trained on brand

o   Sales does not feel marketing gives them what they want.  Marketing does not feel sales takes advantage  of the opportunities marketing provides.

o   Sales does not provide the data marketing needs to establish ROI

So was the joint roundtable a success? I believe the interactive model lived up to it’s reputation as reflected by the  group’s strongly expressed desire for meeting again to more fully explore “game changers,” a discussion that ended up being short-changed, but obviously has huge potential. Interestingly, many participants are getting together for a social after work this Summer as well. It will be interesting to see where this leads….

What do you believe is missing from the lists above?

What do you believe the game changers are?

Just last week I met with about twenty senior HR executives to discuss the state of the economy and how companies are responding to ”the great recession.” In this post I have highlighted some of the key themes I gleaned from our discussion as well as examples of initiatives/actions companies are taking  in lieu of layoffs. But first, here are some of the questions/issues that surfaced for me and that I continue to ponder:

1.       Dull Knife, Sharp Knife. It seems that companies are continuing to use a fairly dull knife……how do we know when we need to stop tinkering and take out a sharp knife?  Is there a danger in piece-mealing too much……take the water bottles away this week, the mini bar next and the club membership the week after that?

2.       Retention of Talent. Will talent stay if they have confidence in leadership,  are learning and feel challenged?  Will they loose faith in management if they feel it is not taking decisive action to control costs and maintain a viable company?   

3.       Forecasting – an act of futility in this environment?  Are we throwing up our hands in exasperation and simply ignoring our budgets?

4.       Unique opportunity for collaboration. Is this an exceptional time for companies to involve their employees in collaborative efforts to streamline processes, adjust business models and recalibrate perks and benefits without backlashs?

5.       What will happen when the economy comes back? Have you started re-prioritizing what will be re-instated. If anything? Is this a blip or a permanent shift?

So, how are companies responding to the continued downturn? Here are some of the themes and tidbits from our discussion:

All over the map. In terms of layoffs,  it is truly cyclical and industry specific. While some have had to lay off employees in large numbers, some are just now getting to the point that they are needing to downsize or expect to do so in the near term.  Some industries however profess to be unaffected.  We shall see.  Most HR execs reported that their companies seem to have stabilized, at least for now,  and they expect to continue to respond to the downturn using all tools available simultaneously. A few are selectively hiring though most indicate they are operating under a “soft” hiring freeze.  Those that are facing layoffs expect this round to hurt a lot more as they shift their focus from D and C  players and go deeper to B players. Most companies do not expect a significant turnaround in the next 18 months.

Using all tools available. Most HR executives reported that they have utilized and will continue to focus on “alternatives to layoff.”

·         While companies to date have been inclined to look at either pay or hours reductions, they are more likely now to look at both.

o   Initiatives to reduce work hours and use up leave accruals are becoming increasingly  common (as a way to reduce huge accrued liabilities)

o   Leave buy-back programs are considered more frequently  (perhaps step-level programs wt higher cash value for initial leave balances)

o   Furloughs are used by some (often wt exceptions for essential jobs)

·         Companies are looking at this time as a rare opportunity to eliminate perks (that have evolved over time) without backlash. Employees are grateful to have jobs. Specific examples mentioned:

o   Free bottled water and pop

o   Free towels in the locker room

o   Club memberships for executives

o   Travel unless essential (sales reps are expected to drive not fly)

o   Mini bars

o   Gadget allowances. The cost of data is outrageous and companies are putting limits on the use of blackberries and i-phones. Some are moving to using OCS for all global calling

o   Friday pizza

·         Modification of benefit packages is being looked at more seriously

o   Suspending 401K company matches

o   Shifting to employee healthcare premiums as a percentage of salary (instead of having everybody pay the same)

o   Higher employee level contributions for using out-of-network providers

·         Efficiency programs and re-engineering/restructuring initiatives.

o   Cost savings suggestions on company intranets

o   Grassroots approaches are received positively by employees

o   Employees are stepping up on their own  and are grateful to have jobs

Weigh in!!!!! I’d like to know what your thoughts are on some of the issues/questions I identified in this e-mail.