National Clothesline

If we listen to half the politicians, everything is coming up profits in the year ahead. They tell us to stop worrying about the economy.

We’re heading towards a new sunrise, they say. The other pols paint a darker and far less optimistic picture.

Where does that leave us? What are we to believe in the year ahead?

After reviewing the predictions, the picture might look something like this: some sectors, particularly those driven by defense, will be roaring. But that aside, much of the economy will still be hurting, demonstrating that not too much is trickling down.

Here’s how it looks: fewer and lower raises, substantially reduced advertising expenditures, and, as the authors of The Two-Income Trap suggest, “…even for families that do everything right, the line between solvency and bankruptcy has never been thinner.”

Two headlines on page one of the same daily newspaper screamed the message: “Poverty increases, income declines” was an article on the latest U.S. Census report. The other one was even more direct: “Working but hungry.”

An economic environment may be emerging in which there are no overall really good times or totally bad times.

At a given moment, some sectors will be stronger than others, but nothing really “sizzling” for most everyone at any time. There’s always something lurking out there that can turn a good day into a nightmare.

So where does this leave us for getting where we want to be in the year ahead? What are we to do? What should we watch out for? What steps should we take if the economy turns out to be unfriendly?

Here are a handful of thoughts and suggestions:

1. Stand with your customers. Don’t fall for the “glass is half full” nonsense. It may be half empty. What’s the point? Don’t be softheaded. And certainly don’t listen to the politicians. Most important, don’t be caught short. Prudence is always the best guide.

This isn’t about optimism and pessimism. It’s about reality. For example, Xerox’s strategy with one customer segment is reality driven.

Instead of just trying to sell the latest and greatest equipment (and it is, by the way), Xerox is working with customers, even suggesting that they buy out equipment at the end of a lease to save money and to wait before making new equipment purchases until there is greater business certainty.

2. Don’t keep trying to “milk” present customers for more business. Whenever times get tight, we’re told to sell more to our current customers. Although this may sound like a great idea, it’s nonsense. It’s the present customers who are cutting back!

In the recession of the late ’80s and early ’90s, many companies tried to load up their customers, a disastrous strategy for those who found themselves drowning in debt. Along with many companies, Xerox made this mistake. Not so now. Its goal is to work with the customer so that when the time comes for new purchases, Xerox will be there to make the sale.

3. Only do business with those who take time to understand what you’re up against. The issue isn’t “understanding your business.” While that’s helpful, it’s not a core issue. It’s figuring out where you are, grasping what isn’t going well, and figuring out ways to fix it.

A marketing services firm was called in by a long established, well-known manufacturer with sales problems. An initial analysis noted that the company had serious marketing deficiencies, including an inability to distinguish between features and benefits and a seemingly incorrigible tendency to talk about itself instead of focusing on the customer.

Fancy brochures, a glitzy web site, e-mail campaigns and stepped-up advertising weren’t going to solve these fundamental problems. But would the prospect want to hear all this? Would the prospect like to hear that all that’s needed is a quick, inexpensive fix? Of course. That sells. But it doesn’t solve fundamental problems.

Just because you or I happen to sell to a number of companies in the same industry provides no assurance that we can solve the next prospect’s problems. It’s by understanding what a particular business is faced with that makes a difference.

4. Don’t be timid. The pain of the last three years won’t be forgotten as quickly as we may think. With so many others holding back, you are given an excellent opening. Drive through. “In Lean Times, Big Companies Make a Grab for Market Share,” stated the Wall Street Journal’s lead page one headline. The subhead put it to bed: “Opportunity Knocks.” Come out and do it.

Is it accidental that Schick brought its new Quattro shaving system to market when it did? Of course not. Schick is David attacking Gillette, the great Goliath of shaving with 80 percent of the market.

Does Schick harbor illusions about beating Gillette?

No way. But a preemptory strike that gives the company an uptick in market share is an achievable goal.

5. Give them a reason to want you. “Did you get our proposal?” “Could I stop by for 20 minutes and tell you about our company?” “I’m going to be in your area next week, can I…..” When you hear such phrases, there’s just one question to ask: “So what?”

Forget about ads that shout the name of your company and how long it’s been in business. Draw upon your company’s years of experience and your own expertise that will help your customers. If you share it with them, then you’ll be welcomed because you bring something that’s useful.

6. Don’t fall for the simple, the easy. E-mail “blasts” are quick, easy and cheap. But do they accomplish your objectives? Do they enhance branding? There may be a reason why the cost is low.

Don’t reject what takes time, effort and planning just because it takes time, effort and planning.

Either-or thinking gets us in trouble. The Pew Internet and American Life Project study found that “wired baby boomers” split between hard copy newspapers and on-line news sources. But with a low tolerance to wade through up to 50 percent of e-mail spam, there’s a place for print advertising and electronic advertising.

Or, take the bash staged by Harley-Davidson in honor of its 100th anniversary. It drew more than 300,000 visitors to Milwaukee. And at the highpoint of the event, the company introduced its 2004 line of bikes. It was the biggest birthday party of all time. Hundreds of thousands of tee shirts can now be seen all around the globe.

It was a public relations event, but it took years of preparation and millions of dollars.

The Harley-Davidson people didn’t choose a PR strategy because it was less costly than something else. It was selected because it could be the most effective approach for building the brand.

7. Dig out the gold. Read business and trade journals — and not just those of your own industry. Get your hands on as many as possible. Read the table of contents. That’s where you’ll find the real gold. Editors are good at identifying hot topics and problems their readers are having.

If you can come up with solutions that make sense, you have a leg up in attracting customers from particular business sectors.

8. Don’t get seduced by your own ideas — or the ideas of those around you. Most companies are poor marketers because they are preoccupied with the image of themselves they see in the mirror: “We’re the best… Our service is great…†We have terrific people.” On and on it goes.

Our firm reviewed a file folder full of marketing materials from a substantial company. Each piece, whether a newsletter, mailer or brochure, had the same theme: the company. There was nothing about what customers might want. There was no reference to customer expectations. In fact, there was nothing about customers.

Companies, like people, can become so self-absorbed they fall into the trap of seducing themselves. Here’s the point: If it isn’t all about the customer, it’s worthless.

9. Guard the brand. Difficult times and pressure from above or somewhere may mean taking chances. Mutual funds have long been the bastion of trust for the small investor. Yet, some investors are evidently more equal than others. “Fund managers have succumbed to temptation and allowed investors in the target funds… in exchange for additional money in their own pockets,” the complaint from the Attorney General of New York State indicated.

Not only have some of the nation’s outstanding mutual funds been scarred by their greed, but faith in the system is further threatened.

At all cost, guard the brand. Why did the head of the New York Stock Exchange allow his personal gain to supercede his responsibility to his company?

In the final analysis, it’s all about the brand.

10. Don’t live vicariously. Jack Welch was a great business leader with a great support staff caring for his image night and day. He also rose during the ’80s and ’90s when most CEOs looked good. He was staged, perhaps better than any president other than Ronald Reagan.

All the consultants have all the right answers, until something goes wrong and then they bring out a new book.

Forget about 23 behaviors of the most successful salespeople. Business isn’t about imitating; it’s about being real — being yourself.

11. Tend to the details. Our daughter was conducting a campus tour at Boston University of prospective students and their parents, when the Chancellor, Dr. John Silber, joined the group. “Why did he take his time to do that?” she asked. There may be a number of reasons but it suggested to me that the head of the nation’s fifth largest private university understands the value of taking care of the details. Everything is important in getting to the goal.

If we skip taking care of the little things, we’ll be faced with dealing with the big problems.

12. Watch out for the deflectors. They’re in every organization. It’s easy to spot them. They constantly introduce reasons for not taking action. There’s always a piece missing or a need for extra time. And when they push those scenarios about as far as they can go, they introduce a new idea that turns attention away from the tasks at hand.

As the time came for a company to implement a series of marketing programs, the sales manager came up with an approach that sidetracked what had been in place for months. The end result was clear: nothing happened.

The test of any organization is in what it accomplishes, not what it talks about.

There they are — a dozen tactics to avoid derailing a company from fulfilling its mission.

Even the best of companies tends be thwarted by inertia. Beleaguered Motorola missed the key selling season by being late in getting its photo cellular phone to market. Already behind its competitors, it just couldn’t make it happen.

Each of these 12 tactics addresses head-on a facet of falling behind. Overcoming them is the effective way to get ahead.