Skip to main content

When the Details are the Devil

Nice turn of phrase and very appropriate for a client I am working with. The client is growing; in fact it is growing so fast it has decided to implement process to handle the growth. The process is so detailed that it is actually slowing growth and in some areas, forcing a decline in growth. So I was asked why.

The why was very straightforward to discover. You have a sub-$10M company implementing the same process as a $3B company. Not only is the process decisioneered beyond rational thought, it is so complex that asking a single person to manage it is crippling. For example;

When a company sells a product that adds onto or works with another product, infrastructure, or application the process should reflect the “aftermarket” nature of this business. Look at Home Depot. They do not sell houses, but they sell about every aftermarket part and piece for homes (and outside the home) you can imagine. And they make no bones about it. One does not go to home depot to re-engineer their house they go to add on or to augment their existing domestic installation. Nowhere in home depot do you find white papers on how to maximize your domestic infrastructure, but you do find data on how to tile or re-tile a floor. In a similar manner a number of my clients want to focus on home building and not home improvement. Now that I have exhausted this metaphor I will drill down, from a tech perspective.

BASF has it nailed. How big is BASF? They are the little firm that does not make the audio tape they make it clearer. They do not make the paint, they make it brighter. Yeah they do all that to the tune of over $50B in revenue a year. They make chemicals, petrochemicals, plastics, coatings, agricultural products, functional polymers, cosmetic ingredients, nutrition ingredients, the list goes on. And what are they selling exactly? Home improvement or more literally; product improvement. They are selling shovels and clothes to the hurried mass of the 20th century equivalent of the gold prospectors. That works.

Back to our topic, when the devil is the details.

Since the Google-Geeks made it big by selling ads and figuring out how to effectively (and I mean better than anyone in the world effectively) cluster and scale servers to sell ads, there are a number of folks who believe that rigorous analysis of process and metrics will result in scaling accompany. In fact rigorous analysis of an emerging business is required but it must be balanced with the reality of the overall goal; revenue. Often I see so much Monday morning quarterbacking that the velocity of transaction required to scale the business is lost in the need to get more and more data in order to build a predictable and scalable model. This just in; you cannot control rapid growth, but you can contain it. Force yourself to look at the most important part of the process to influence, notice I did not say control I said influence. Oh, and make sure it influenced in a positive manner.
If sales needs to scale put all the tools in for scaling sales, if you lag in hiring, get a specialist for hiring. If your lead system is f-ed up, get someone focused on fixing it. If you need a better web site, do not debate ownership, fix it.

Process while important is also a double edged sword and keep in mind it cuts deep both ways. How many companies use Salesforce.com and think it is the bomb? I thought so. But it does enough to corral data to keep the machine plugging along.
Details are the devil when more time is spent on deciding on the details than growing the business. It takes a lot of discipline, and some measure of faith, to work toward positive containment and not literal control of growth.

BTW, contained and fairly well managed growth sure fixes a lot of process issues.

Comments

Popular posts from this blog

My Dad is Old School

Really old school. In fact he defines the last great generation of people who suffered in silence, SSRI inhibitor free, and aspirin is for whimps generation. Drug a kid in school to get him to pay attention? He will have none of that. Sit them down, tie them to the chair (alas no duct tape in his youth). He is proud, hard working and is a lifelong Republican because "those liberals will ruin the country." He says a friend who knows a key operative in the party has proof in the form of photos that Hillary is a lesbian. He also thinks Bill Clinton has super powers that make women take off their clothes which is damnable. So he hates him. However this year he says he will vote for Obama because GWB has "redefined the worst parts of our party and the next generation will suffer." We will see, my take is he will say one thing and do another (vote the party line). As the baby boomer generation gets up there in years our parents begin to slide into what I call the medical...

BOP, MOP and Stop Negotiations

One of the clients I worked with wanted a refresher course on negotiation. And not the full page ad like you see in the airline magazines next to the ad for; “even cheaper and just as effective” noise cancelling headphones. They specifically asked for a catchy outline that sales people can even remember. So I negotiated a fee and introduced them to the BOP, MOP and STOP method. Now I am not a negotiating expert but have negotiated comprehensive agreements with HP, Boeing, Intel, Fannie Mae, Lockheed Martin, etc. So I get it. Here is the mindset I proffered to be taken into every negotiation; BOP; is defined as the Best Outcome Possible, highest price paid for the product/service one can conceive to be realistic under perfect circumstances. MOP; is the Minimal Outcome Possible or the lowest price you will accept for your product and service in a negotiated agreement. STOP; is any number below MOP that is unacceptable value and you walk away from the negotiation. Now I purposefully omitt...