| In part I of this article we discussed the issues | | | | Hire some outside help |
| that lead to flattened growth. So what's a | | | | Consultants have a very bad name in some |
| befuddled and perplexed tech company CEO to | | | | areas—unfortunately, sometimes with good |
| do? | | | | reason. But bringing in someone with deep |
| FINDING A SOLUTION | | | | marketing or management expertise, with a |
| Well, the first thing I recommend is to really | | | | different viewpoint than the internal management |
| spend some time getting to the bottom of things. | | | | team, can sometimes be the quickest way to |
| Instead of shot-gunning blame that may be | | | | new approaches that will turn the ship quickly. I'd |
| misplaced, or impetuously blowing up established | | | | recommend staying away from folks that that |
| pillars of the business—conduct a real, | | | | have a cookbook formula, have only been |
| objective analysis of the nature of the slowdown. | | | | consultants and not operating executives, or take |
| I don't suggest paralysis by analysis by any | | | | too much of an academic approach. Every |
| means, but do take the time to gather some | | | | company, market and point in time is different, |
| data, so that your actions will be based on more | | | | and needs to be analyzed as such. But hiring the |
| than knee-jerk reactions. | | | | right outside consultant or firm who is creative, |
| Past that, it's hard to generalize on a course of | | | | analytic and "been there and done that" can have |
| action, because the proper action will depend upon | | | | a big impact. PJM Consulting has often worked as |
| what you find in your analysis. But for the sake | | | | a change agent in these situations, and increasing |
| of discussion, let's say that while there are a few | | | | or restarting traction is an area of specialty. |
| factors that you find which could be leading to | | | | Look at entering an adjacent market |
| slower growth, no there isn't a "silver bullet" | | | | If it's determined that your current market space |
| reason that can be "fixed" to get the revenue | | | | is getting saturated, one of the first things to do |
| curve again pointed up and to the right. Below are | | | | is to look at adjacent spaces. Preferably, look |
| some general ways that I've found may enable | | | | somewhere that you can leverage your current |
| you to "restart growth". I might add that many | | | | marketing, distribution and brand, but also possibly |
| of them are most effective if you begin them | | | | where you can apply existing company |
| prior to actual revenue flattening: | | | | technology to a different customer's problem. The |
| Try marketing programs you haven't used before | | | | key here is don't go to a complete green field, |
| Usually when you get in a period of high growth, | | | | that looks attractive because it's large or growing |
| there is a workhorse program or two that has | | | | fast, but where you have no real business |
| worked well for you, and there is a tendency to | | | | competing. Again, it's best to be taking this step in |
| "keep doing what works". Unfortunately, even the | | | | anticipation of slowing growth in your current |
| best conceived marketing programs eventually | | | | business—rather than waiting until it |
| run out of steam. One of the keys to having | | | | happens. Getting traction in new areas can take |
| consistently good outbound marketing, is too be | | | | some time. |
| constantly testing new ideas, placing small bets, | | | | Consider M&A to fill out your product line or |
| and fine-tuning them if there is enough success to | | | | distribution system |
| continue. As I've said many times before, product | | | | If you've been caught by a surprise slowdown |
| marketing is part art, and part | | | | and you need to do something quickly, a strategic |
| science—with the art portion unfortunately | | | | acquisition can sometimes be the answer. I warn |
| upfront. You need to do a little trial and error to | | | | you to proceed with caution here. M&A is |
| find a good program, and then the science kicks | | | | fraught with danger—statistics show that |
| in, using data you've gathered to optimize it. But | | | | most acquisitions don't work out well. You need to |
| the key is to be constantly testing new ideas, in | | | | think it through, proceed carefully, and don't get |
| good times and bad. If you wait until your growth | | | | overly excited by the thrill of the deal chase. If |
| has already slowed, you may scramble for quite a | | | | done well, however, a strategic acquisition can be |
| while, trying to find an answer. | | | | a real shortcut to entering an adjacent space, |
| Have an internal "growth" brainstorming session | | | | filling out your product line for an existing strong |
| Ideally you are doing this before you fall into a | | | | distribution system, or adding sales channels to |
| revenue rut. But regardless, do bring together | | | | your strong product offerings. This is another |
| people in your organization, to bring out the ideas | | | | area where PJM Consulting has strong experience, |
| they may have to give the top line a kick start. | | | | and can offer assistance. |
| Do hold these sessions in an open, non-threatening | | | | THINK IT THROUGH BEFORE YOU START |
| and non-political environment. It's important that | | | | SHOOTING |
| people are able to speak freely, and not be | | | | There are obviously endless other potential ways |
| ridiculed, if they come up with an idea that's "too | | | | to explore, when attempting to jump out of a |
| far out of the box". That is often where strategic | | | | revenue rut. I wanted to suggest a few to |
| breakthroughs are made. And don't just limit | | | | stimulate your thinking—and more |
| these sessions to executive managers. | | | | importantly, steer you away from some |
| Remember, the people at the bottom of the org | | | | "knee-jerk" reactions, that often make your |
| chart are often the ones closest to the business, | | | | situation even worse. |
| and are sometimes able to more easily spot a big | | | | What have you done in the past when you need |
| opportunity that the company could capitalize on. | | | | to restart growth? |