Strategic Thought From  Mike Perry

16th March 2011

“What If?’’ it's time to grow ...

As growth slowly returns to some sectors and geographies, companies are confident enough to consider growth initiatives but economic fragility (think the impact of events in Japan), post-recession dynamics (think small cars v/s gas guzzlers) and new customer requirements (think cost reduction) call for strategic due diligence before committing millions to investment.

This is not the time for a business case with "hockey stick" graphs of ROI for the new initiative.  It's about "What If?"; customers don't get it, competitors have a superior concept or new players (the MNC's have a new invigorated approach to emerging markets and we are one of these!) change the rules of the game.

Have an answer to the biggest "What If?" of all - what's your Plan B if the new initiative doesn't work out as intended?

Strategic Thought From  Mike Perry

14th January 2011

“What If?’’ 2011 is the year of the upswing?

It’s time to think about the return of better times.  All industries change a little every year – the cumulative effect over three volatile years has been significant.

Your customers, distributors and competitors must now be operating with different business models to those of 2008 – that means different needs and purchase criteria.

 Chances are that they will welcome innovation; can your firm deliver?

“Same old” will not be good enough - it’s time for a fresh, objective look at doing things differently

Strategic Thought From  Mike Perry

30th November 2010

“What If?’’ April 2011 is the time that the economy starts to 

climb out of today’s trough?

No person can claim absolute foresight but, based on the average length of the economic cycle, this is the earliest practical date for a real upturn.  Urge your team to be alert to the early signs of growth (ESG’s) and look at that BIG IDEA anew.

 Now is the time to take strategic initiatives to market, thereby pre-empting the competition!

 Make this theme the focus of your 2011 Strategic Retreat.

Strategic Thought From  Mike Perry

7th September 2010

Think about reaching new customers through new routes to 

market!

If your company is going to market in much the same way as in 1994, you’re ignoring the massive shifts in customer base, competition, distributors and intermediaries that have occurred in most industries.

Develop new routes to market when you realise that your best relationships are with important, but now slow-growing, distributors.

Internet sales are often the focus of such discussions.  Its right that automation can help drive higher levels of satisfaction.  Where this may be a solution, always ensure that this type of innovation is wrapped in a new, integrated total proposition.

 "I.T. is never enough in itself".

Strategic Thought From  Mike Perry

8th July 2010

It's time to create new revenue streams!

Discussions about diversifying inflows come up for one of two reasons …

... The realisation that markets will not return to their 2008 levels for another 20 months or so, making additinal sources of income worth considering right now.

Structural change within an industry.  An example is that of service providers, who have traditionally been remunerated by commissions on a percentage basis and who suffer when prices are in decline.

Make a real offer that adds discernable value; don't impose a surcharge - think "airport taxes" and you'll understand the dangers of substantial brand damage.

 Challenge every detail before the roll-out.

Strategic Thought From  Mike Perry

21st May 2010

Reach for your vision!

Dissatisfied about the speed at which your organisation is headed towards this… ?

... Remember a new vision statement that was announced with noise and fanfare is a commitment to stakeholders such as staff and the Board of Directors.

Have a programme to maintain the strategic momentum.  This must involve executing some vision-aligned initiatives immediately, establishing short and medium-term strategic milestones and celebrating the achievement of each one.

 The long-term health of the company depends on management visibly implementing steps that are clearly part of this vision.

Strategic Thought From  Mike Perry

11^th March 2010

The recession is over!

Start changing the rules of the game ...

... but proceed with care during the next 24 month period.  Anticipate misleading events such as a good quarter followed by bad.  Be patient in a market that declined 30% in volume in the downswing will take 2 years of 20% compound growth to return to previous volumes. 

At this time, however, it’s a good move to take any savings above budget, or proceeds of better than expected quarters, and invest these in developing the game-changing Big Idea.

 Pacing the introduction of new initiatives is a fine art.

Strategic Thought From  Mike Perry

20^th January 2010

Move like a world champion!

Anticipation of a successful World Cup Tournament suggests that customers will expect your marketing to be bright, breezy and innovative – in tune with the mood.

Innovations must focus on customers’ real needs – most are living with reduced demand and tighter credit, so 2010 is the year to come up with “financially wrapped” value propositions.

Stay alert to danger; financial markets have out-accelerated real business conditions (we remain in the economic valley) and another bubble may burst.  Be prepared for sudden negative swings in expectations – have Plan B in place in case the mood changes …

… that way you won’t get caught off-side!

Strategic Thought From  Mike Perry

20th November 2009

Pricing strategy vs. more cost cutting

Liken today’s phase of the business cycle to living in an economic valley.  Your market may have stopped declining but probably won’t immediately return to the peak of 2006/7. The professional marketer’s task is to grow revenue, even as volumes remain static; the question arises how to increase ‘’share of wallet’’?

Fighting for market share on price is likely to precipitate destruction of value, so scientifically examine how customers react to pricing strategies. A 1% revenue gain through pricing may be equivalent to a further cost reduction of 8-10%.

That’s how marketers save jobs!

Strategic Thought From  Mike Perry

1st October 2009

Forget the Economists, Focus on the Road Ahead:

Understand how the economy will affect your business quarter by quarter over the next few years by creating a simple “What If?” scenario that draws on the average length, historically, of each phase of the economic cycles.

The USA economy peaked in December 2007 and moved into a precipitous decline.  Most South African industries followed 10 months later; each phase of the USA economic cycles (since 1945) has been peak to trough 10 months; trough to peak 47 months and time in trough, 20 months

This picture is a framework of what’s to come, preparing management for the inevitable.

Be alert to the next scenario phase!