Well, things went along pretty smoothly, but six months later, sales took a downturn and he was really catching a lot of heat. About at his wit's end, he remembered the envelopes. He went to his drawer and took out the first envelope. The message read, "Blame your predecessor."
The new CEO called a press conference and tactfully laid the blame at the feet of the previous CEO. Satisfied with his comments, the press -- and Wall Street -- responded positively, sales began to pick up and the problem was soon behind him.
About a year later, the company was again experiencing a slight dip in sales, combined with serious product problems. Having learned from his previous experience, the CEO quickly opened the second envelope. The message read, "Reorganize." This he did, and the company quickly rebounded.
After several consecutive profitable quarters, the company once again fell on difficult times. The CEO went to his office, closed the door and opened the third envelope.
The message said, "Prepare three envelopes."
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An old joke with serious undertones. CEOs must show top-line growth despite a less-than-accommodating market environment. Even when the numbers advance, how much new growth is sustainable over time? Is it possible that CEOs accept belly-filler accounts so the top number buys another year of economic recovery time?
Food industry chief executives need to understand their company's real sources of prosperity. This should never be left to the VP. The CEO alone has the authority to make necessary adjustments throughout the organization to get and keep the top-line number moving in a positive direction.
Let's focus on one common area of concern today. If you, like many in our industry, are concerned with sales results, here are a few steps you can take to kick start the number:
Step #1: Take a backwards glance
Identify and isolate what and where things have been going wrong or need improvement. Independently review the results from target account lists over the past 18 months to determine:
- How many targets resulted in face-to-face meetings?
- How many meetings resulted in a sampling or presentations?
- How many presentations resulted in new business?
Step #2: Assess the process
- Is your company's selling pattern in sync with customer supplier selection and purchasing timetables? Is your sales team late to the party, or maybe even a no-show?
- Are sales managers equipped to provide accounts with real-time justifications for customers to do business with your company?
- Do your priorities for the sales department include better Sales alignment and hand offs with other functions inside and outside the organization? Better segmentation and account targeting?
Step #3: Take Action
Looking ahead with three critically important recommendations that will transform the way your company grows:
- Everyone on the team must be adept at identifying, communicating and proving that doing business with your company makes customers Better, Faster, More Cost-Effective than they were before or if they bought from someone else.
- Make sure capabilities of your organization, its high level flow of activities and their various inputs and outputs that define how you provide value to customers are appropriately aligned, measured and improved to achieve your organization's financial goals.
- Become ruthless in reducing or eliminating low-value activities wherever possible, freeing up valuable time to pursue and support profitable, sustainable new business. Review pre-recession modes of operation, as well as the value and return on discretionary activities such as industry events, corporate meetings and paperwork.
