Monday, March 19, 2007

The Ingredients for Leading Change

I recently received an e-mail that is so “perfect” for my blog that I simply reprint it here. The writer, a client and a division president of a prominent high-tech firm, wishes to remain anonymous, but his words, mindset, and passion about leading change are so on-target that they deserve everyone’s attention. I’ve deleted the confidential portions of his e-mail, but what remains is gold for the kind of spirit that is needed to create a “break from the pack” change. His firm is a “business to business” enterprise in the high-tech market, but trust me--any leader in any business can read, enjoy, and learn from his message. Here it is: Our "New" (Company X) is now transforming its identity to focus sharplyon a differentiation model. I believe we need a revolutionaryapproach to making this transformation, not an evolutionary one. Frommy perspective, there are a few VERY important things we mustaggressively address:1 - The trend of commoditization across our product lines isaccelerating. We are caught up in it and moving down rapids toward thefalls. Prime conditions in our industry are feeding this frenzy:several competent competitors and many strong customers with sophisticated Purchasingorganizations. We must build a high sense of urgency within ourorganization regarding the final outcome of this direction (to avoid CommodityHell, as you call it) and the need to ACTIVELY / RADICALLY swim out ofthese rapids toward shores of sustainable profitability.2 - We must find new, creative ways to identify, understand and executeunique combinations of hardware, software and service offerings.These offerings must be wrapped in a unique customer EXPERIENCE whichradically sets us apart from the competition in a way which is valuableto the customer (and translates into margin-building prices/$$$ for us).3 - This new identity must also be credible and viable... built largelyon a foundation of EXISTING core competencies and strengths which allowus to deliver on our promise to the customer, albeit in new and creativeways.4 - We must inject a more powerful Marketing mindset which defines theseofferings and experiences through the eyes of a powerful, discretionarycustomer. A customer which makes buying decisions influenced not onlyby valuable functions and features, but also by perceived value in areasof trust, image, emotion, reliability, exclusivity, etc. Today, we aredominated by a mindset which is still blinded by asterile, logical belief that if a product has more features, performanceand functionality, it should demand a higher premium from customers.There is little focus or even understanding of the need to deliversweet-spot solutions to customers perceived as worth the premium becausethey deliver something unique beyond just the bestperformance-per-penny.5 - I intend to create a small group dedicated to working very closelywith our strongest sales teams at our most important customers instrategic market segments to deeply understand these value driversacross many areas mostly overlooked. I believe this group needs to becompletely dedicated to this charter and recruited with a specificskills set, not found in our current sales or marketing teams. Thisgroup will report directly to me.OK... I am obviously passionate about this topic. I see it so clearlyand want to build the same passionate conviction within my leadershipteam because I am convinced it will lead us to sustainable andprofitable leadership.Now that's the kind of e-mail I like to receive!!

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