Category: Leadership

Reflections on marketing leadership. Topics include decision-making, strategy, working with boards, and the evolving role of CMOs and marketing leaders in technology companies.

  • Focus on quality – lessons from Zen and the Art of Motorcycle Maintenance

    Focus on quality – lessons from Zen and the Art of Motorcycle Maintenance

    Introduction

    What is “quality” content?

    If you’ve ever read Zen and the Art of Motorcycle Maintenance by Robert Pirsig, you’ll know his reflections on craftsmanship go far beyond fixing bikes. As he wrote:

    “[In a craftsman], the material and his thoughts are changing together in a progression of changes until his mind’s at rest at the same time as the material is right… The state of mind which enables a man to do work of this kind is akin to that of a religious worshipper or love. The daily effort comes from no deliberate intention or program, but straight from the heart.”

    So what does this have to do with marketing B2B software? Everything. Quality content doesn’t just appear—it’s the product of care, thought, and a refusal to cut corners. And in a world where ChatGPT and Gemini can churn out endless filler, the question is: how do we balance speed with true understanding?


    1. Quality comes from craftsmanship, not shortcuts

    Pirsig’s idea of quality begins with the mindset of a craftsman: someone who approaches their work as an act of care. Marketing is not so different. It’s easy to produce “good enough” content that ticks the boxes—an SEO-friendly headline, a keyword-laden body, and a quick conclusion. But “good enough” rarely makes an impact.

    Craftsmanship in marketing means paying attention to the details that others overlook. It’s about making sure the story fits the audience, the examples resonate, and the argument stands up to scrutiny. That effort creates trust with your audience.

    Shortcuts, by contrast, show through quickly. Readers can tell when a piece was rushed or when it lacks real understanding. In B2B, where buying cycles are long and decisions are complex, that kind of shortcut can erode credibility.


    2. It’s about how you conduct yourself to get the right results

    Content is at the core of almost every marketing role. But while output matters, how you go about producing it matters even more. The process you follow—whether you take time to think, reflect, and refine—directly affects the quality of what you publish.

    This isn’t about perfectionism. Few teams have the luxury of unlimited time, and deadlines are real. Instead, it’s about finding the balance between speed and depth. Are you creating something your company can stand behind, or are you cutting corners for the sake of throughput?

    The companies that consistently build trust with their audiences are the ones that find this balance. They know that content is not just a task to be completed, but a reflection of their brand, their people, and their standards.


    3. AI tools can’t replace real understanding

    Many marketing teams are now experimenting with ChatGPT, Gemini, and other AI writing assistants. At first, it seems like a time-saver. You can generate an outline, expand bullet points into paragraphs, even draft an entire blog in minutes.

    But there’s a problem. If you rely entirely on AI, you end up with content that looks right but lacks depth. It’s the equivalent of a student handing in an essay written by someone else: the words are there, but the understanding is missing. Readers pick up on that lack of authenticity quickly.

    I know this from experience. I once tried using ChatGPT to write content as an experiment. On the surface, it looked fine. But the work felt hollow, and I learned nothing from the process. I decided never again—because without understanding, content has no foundation.


    4. Real learning builds pride in your work

    A better approach is to use AI sparingly—as a support, not a substitute—and to invest in real learning. Recently, I needed to use Docker to isolate two jobs running in Linux. I could have relied on ChatGPT prompts like: “Use Docker to create 2 new environments for me.”

    The AI gave me fragments of an answer, but nothing that built my understanding. I didn’t know why containers worked, what the benefits were, or how environments could communicate. If I had stopped there, I would have had a shallow solution—and no ability to troubleshoot later.

    Instead, I worked it out for myself, guided by Pirsig’s principle of focusing on quality. I learned enough to understand how Docker really worked, and I felt a sense of pride in the result. That pride matters—it creates confidence in your own expertise, and it shows through in the content you create.


    5. Human insight will always beat AI slop

    Ultimately, content written with care—by fallible, thoughtful humans—will always outperform what I call “AI slop.” Audiences crave originality, perspective, and voice. These are things that AI, for all its power, cannot truly replicate.

    There’s also a practical point. Every AI query consumes processing power and energy. By doing the thinking yourself, you save not just your credibility but also resources. It’s a small act of responsibility in a world increasingly flooded with machine-generated text.

    Quality content comes from insight, not automation. It comes from asking the right questions, reflecting on your experiences, and presenting ideas in a way that matters to your audience. That’s why, even as AI becomes more common, human-centered quality will continue to stand out.


    Conclusion

    In marketing, as in Pirsig’s philosophy, quality is not just about the output but about the mindset of the person creating it. AI can be a useful tool for sparking ideas, but it can’t replace the depth of insight you gain from doing the hard work yourself.

    Writing content that matters takes time, thought, and pride. It’s about more than hitting publish—it’s about understanding your craft well enough to stand behind it. That’s the kind of content that will always stand out from the noise.

    For more on this idea of quality in work, see:


  • Building an AI assistant to help do the work I love

    Building an AI assistant to help do the work I love

    “If your job isn’t what you love, then something isn’t right” 1

    If you are not passionate or at least interested in what your company does for customers then working in marketing is quite a slog. Of course parts of the marketing role which are less interesting than other parts (I’m no fan of doing expenses…) but if you aren’t interested in the world of marketing how it works and how you actually get customers – then you will struggle to give it your all. And part of that should be having a passion project in your job ❤️

    Mine is AI. I studied it at college and I’ve always been interested in how the AI world is evolving. At times I have struggled to use it in work, but that has all changed with AI taking over the world.

    I’ve been working on Project Skynet for a while now, but I am particularly excited about this next stage – running everything on my laptop.

    Initial Setup Stage

    I’ve only put one or two notes here because it will really depend on your machine and there are plenty of other places that give much better insights about how to set up Linux on a laptop. Below is what I did on my machine.

    • In Windows, I run cmd as an Administrator.
    • Install Windows Subsystem for Linux (WSL).
    • wsl --list --online
    • Going to use Ubuntu 22.04 LTS
    • dism.exe /online /enable-feature /featurename:Microsoft-Windows-Subsystem-Linux /all /norestart
    • dism.exe /online /enable-feature /featurename:VirtualMachinePlatform /all /norestart
    • wsl --set-default-version 2

    Installing Ollama

    This was the most interesting and exciting part for me. I had a presumption that it would not be possible to run this system on my laptop. Surely to be running a mini brain on my Dell just doesn’t make sense!? How wrong I was.

    It definitely is the case that I can’t create ChatGPT 5 model! I might be able to run one of the ChatGPT 4 models, and I will experiment with that another time.

    But I only want to run quite simple tasks so I’m actually just going to use Phi-3. as I say, I’m not planning to plot out a new moon orbit with this, just run some simple processes on my laptop.

    Getting Ollama running

    I will pause there mostly because I was very pleasantly surprised at how easy this all was to set up. I had originally thought that it would be multiple stages to get this up and running, but Ollma has made this so simple. So for now I will leave you with my first query on my laptop, not in the cloud:

    But why am I bothering to do this? Why not just run this in the cloud? It certainly would be the simpler option. The problem with doing this is you aren’t really learning anything or developing your expertise and something new and exciting. This is what I personally enjoy, and so now that I have this up and running I will move on to the next stages – building a marketing assistant that is just running on my laptop.

    There are other benefits too – I feel happier about privacy and security when it is running on my machine, I also feel more in control of the spend. but there is also a strange feeling that I don’t want to “rent” the infrastructure I would rather have it on my machine and own it. This was always my ambition but, as I say, I didn’t think it could be done on a laptop. I was wrong.


    1. Talking Heads, Found a Job ↩︎
  • Marketing Pyramid v3 – updated marketing model

    Marketing Pyramid v3 – updated marketing model

    I’ve updated my marketing pyramid, adding in a new layer for LLMOs – I feel it has got to a point where a marketing strategy that doesn’t reference this new world will start to look a little dated.

    Marketing Pyramid from BJREES.COM

    I’m working on a new version of this pyramid which property understands the impact of LLM developments, though the core principles here remain unchanged. Put simply you can’t do absolutely everything in a normal sized marketing department. you have to make strategic decisions Specifically choosing to place your budgets and people to address the problems that you face today. Sometimes that will be long term LLMO work, sometimes that’ll just about getting a blog live. Sometimes you just need to go out and meet some more customers!

    But you can’t do all of that today and this is where this pyramid really helps me out.


  • My weekly routine

    My weekly routine

    I’ve noticed recently how the advent of AI tools has significantly changed my work routine during the course of the week. Historically, Monday morning has been “Well that was a nice weekend, what the hell was I doing at work?”. This then takes me to my scribbled notes about what I was working on and what was left undone.

    The problem with this approach is that it can keep you in the task-oriented world rather than stepping back to looking at your higher level goals. Rather than thinking “How are we going to win this market? What were those great ideas I had a few weeks ago? How can I make progress on the bigger picture?”, we jump straight into the pile of TODOs.

    My way round this is to use my own AI bot “Skynet”, as an additional copilot*. All of my knowledge from the last 13 years including a recency bias adjustment accessible through a simple interface. This means that every Monday morning I can do research from my knowledge about how to address the issues at hand.

    A simple example from this morning, I was looking for some research I had done a couple of years ago about marketing performance measurements – leads, MQLs, opp values, reporting approaches. Rather than trawling through my old notes, a lot of which is in my own childlike handwriting (so yes, good OCR is key to this process), I just ask Skynet and it gives me a well structured starting point which includes all of those little details that I would otherwise forget. This last point is the most important of why building your own chatbot is important. ChatGPT will give you generic answers but you have your own experience that you need to include, otherwise you might as well just do a Google search.

    * Microsoft has the best brand name here, just not quite the best product yet…


  • Why company culture is so important in marketing

    Why company culture is so important in marketing

    Culture eats strategy for breakfast

    Such a well known quote, it barely needs a reference (but I will do anyway – it’s Peter Drucker).

    One of my side projects is an attempt at taking all of my own knowledge from the last few years of marketing and putting them into an AI model. One of the issues with a platform like ChatGPT is that it will give you answers based on “What the world thinks”. For 95% of cases this is great of course – if you want to know the capital of France, you want the consensus, not an opinion. But these models don’t reflect the more difficult parts of marketing, the knowledge gained at the coalface of trying out real campaigns and seeing them fail or win – the things that make you stand out from your competitors.

    As an example I have recorded short posted a short video below of what my own personal AI tells me about company culture. This is based on years of notes on marketing strategy and so genuinely reflects my view rather than perhaps a more generic outlook.

    I also believe this is an important part of marketing. If you are saying the same as everybody else in your marketing then no one will read it. Why would they? You need to present an opinion.

    I work at https://www.syskit.com/, and I have spent the last few weeks trying to figure out why things are going so well for performance of the company. You can look at charts, you can create models but somehow they don’t quite give you the answer. The one thing I keep coming back to is the culture. A culture of openness, mutual support, great people and, the secret sauce – far fewer meetings – has created a culture where great work can be done and enjoyed. I listened to a great program this week on workplace culture which I could more or less summarise as “Fewer meetings” 🙂


  • Making decisions in a Bayesian world

    Making decisions in a Bayesian world

    Most of your time as a marketing leader is spent trying to make decisions with inadequate data. In an ideal world, we would have run an A/B test on everything we wanted to do, looked at the numbers and then made a decision. Which image should we use for our new advert? What message? What tone? Which type of customer are we trying to reach? And 1,000 other things.

    A/B testing is one way of approaching this problem. The difficulty is that most marketers will – and should! – already have a view. If I was given the choice between two headlines:

    1. Find out how our products can help you
    2. Click here to give us some money

    I know which one I would click on, I definitely don’t need to do a test!

    But here is a more realistic example. You are trying to sell into a company and you are not sure who makes the decision. Is it the end user? The manager? The person holding the strings?

    How on Earth do you do an A/B test for something like this?

    You will soon find with a question like this, that you quickly hit the “Everyone has an opinion“ problem. You ask various members of the team and outside your team and everyone gives a different answer. There are a couple of ways out of this situation as I’ve mentioned, but doing an A/B test is generally completely impractical.

    So what can you do? The approach that I take now is to use some of the concepts from Bayesian logic to help me make the decision. The key concept is is the idea that every decision you make is a combination of your prior knowledge plus the data that you see. And the real issue with prior knowledge is that everyone comes to the table with their own history.

    As an example, if you have been running a marketing team for years, and all you have been doing is numbers-driven digital marketing for B2C businesses – and crucially, you have had success with that, then you are going to start your analysis with that approach in mind – the answer to the question “what should we do next for our marketing?“ will very likely be something around digital marketing strategy. In contrast, if you come to the table from a brand marketing background, then it is likely that your initial opinions will favour this sort of approach. Why? Because this is what you know and there’s a good chance you’ve had success with it at some point in the past.

    Crucially, just asking the question “which is right?“ will not get you anywhere! You each have prior knowledge that you are bringing into the process. So what do you do when you start running a campaign and you start to get results, albeit with very low numbers? How do you combine your prior knowledge of what should happen with what is actually happening?

    This is where the Bayesian approach can be very useful. I don’t think you need to understand any maths to use this approach, it is about the principles behind it.

    I first read about this principle in the book below:

    I have recommended this book about six times on this blog, so I am definitely a fan! The key part that is relevant to this blog post I have copied below. I tried to paraphrase it, but then I realised that Sean Carroll’s short explanation is better than anything I could come up with:

    Prior beliefs matter. When we’re trying to understand what is true about the world, everyone enters the game with some initial feeling about what propositions are plausible, and what ones seem relatively unlikely. This isn’t an annoying mistake that we should work to correct; it’s an absolutely necessary part of reasoning in conditions of incomplete information. And when it comes to understanding the fundamental architecture of reality, none of us has complete information.

    Prior credences are a starting point for further analysis, and it’s hard to say that any particular priors are “correct” or “incorrect.” There are, needless to say, some useful rules of thumb. Perhaps the most obvious is that simple theories should be given larger priors than complicated ones. That doesn’t mean that simpler theories are always correct; but if a simple theory is wrong, we will learn that by collecting data. As Albert Einstein put it: “The supreme goal of all theory is to make the irreducible basic elements as simple and as few as possible without having to surrender the adequate representation of a single datum of experience.”

    Everyone’s entitled to their own priors, but not to their own likelihoods.

    This might feel like a slightly obscure deviation from the subject matter of this blog (marketing!) but I don’t think it is.

    Unlike many other areas, It is very difficult to come up with definitive evidence for why one approach is better than another. This can lead to the back and forth, debate about messaging and other areas.. or worse than that, you can even end up with the HiPPO principle for making decisions (“Highest Paid Person’s Opinion”).

    But – If you understand that this is where a lot of people are coming from, that they are making decisions based on their prior experience and not necessarily the facts in front of them – then this makes it much easier to have a rational discussion. There will be a very reasonable logic behind why somebody is arguing for something. Listen to that person, interpret and apply intelligently.

  • What makes a great company culture?

    What makes a great company culture?

    A Year at Syskit

    This is a personal view. All I can write about is what I find to be a great culture, and I know others will have a very different point of view.

    And I definitely have it in my employer, Syskit. I have been lucky to work at some great companies (and some not so great companies…). But for some very specific reasons I believe Syskit to be at the top of that group. I have now been there for a full year so I wanted to do a quick review of why it’s so good, in no particular order.

    Fewer meetings

    As a company grows it gets more and more difficult to keep to a common path and collaborate effectively across so many different people.

    The answer to this problem is most definitely not having more meetings though. At first look, this seems like a good response. We all want to keep in sync with each other we’re struggling working remotely (if this is the case). Why not put in some regular weekly meetings or “catch-ups” to achieve that?

    From my experience, a great company culture needs as little time as possible in meetings. Why? First of all the obvious – nobody likes meetings! But there is something more subtle. There are some very important meetings that are needed for a company to run and those should be kept. What I believe should be lost, and what I see in great companies is the removal of “catch-ups” and other weekly meetings. My starting point with all of my colleagues is that I trust them all and know that they know their jobs. Why then do I need a meeting to check in? What information is actually being communicated, that couldn’t be sent in an email?

    At Syskit, I have now managed to get my weekly meetings down to about 4 or 5 per week. Most days, I have days with absolutely no meetings at all. Crucial to a well run company because it frees up your time for more impactful deep work. Looking back at the times when I have made big strategic changes or fixed really knotty problems they are always on days which are completely free. This is why I protect them so closely.

    Crucially, this is the culture at Syskit and it fits me very well 😊

    Informality

    It is hard to explain why this is so important to me and it’s not just a “work thing”. It is important to have structures and models in the workplace, but that doesn’t mean to say we need a culture of formality. I can genuinely say that I enjoy the company of my colleagues, that we chat about things other than work, and that we “get on”.

    My test for this is always:

    “If you were told that you were going to be stuck on a three hour train journey with a colleague with no books or phones, how would you feel about that?”.

    I believe this tells you a lot about whether you are on the same wavelength as your colleagues and for me informality is very important. We are not doing God’s work here (as an old boss put it), and I believe informality is a crucial part of any culture of smart people.

    A great product

    Why should this matter when we are talking about culture? Surely a great product is just about your company’s commercial viability?

    I think it is a lot more than that. You want to believe that you are genuinely creating something great. You might not be saving the world with your product, but you should be proud of it and for me, that is a really important part of company culture.

    Again, I have a test for this:

    “Would I recommend this product to a friend? I mean, a “non-work” friend?”

    I have worked at places where I wouldn’t recommend the company’s product to my friends, and that is fine. But I would recommend Syskit’s product to friends (who happen to be Microsoft 365 administrators! – that’s not all of them 😊), and that means that there is an honesty about the work which I think is important.

    This is strongly related to another point which is a focus on the numbers. Is the company hitting its targets?

    Again, why does this matter when we are talking about culture? Personally, I much prefer conversations in the workplace which are about customers, the product and whether the company is doing well. I find this more interesting than conversations about HR policy, organisation, and holiday entitlement.

    So what I like in a workplace is spending time talking about the commercials and driving the success of the company. It is only the numbers that show whether you are succeeding in your role and again, that is part of the culture.

    Expertise

    Again, a strange one perhaps. But I would argue in marketing in particular, that there is a very wide range in expertise in the market. Marketing well is very difficult. It is subtle, complex, often unintuitive and I would argue that B2B are marketing is just a completely different field to B2C. Budget allocation is difficult; explaining what you are doing to non marketers is difficult; getting alignment between marketing and other areas is difficult; focusing on three things instead of 30 is difficult. And getting into the minds of customers is the most difficult thing of all.

    Working with other experts and experienced people is crucial for me and I believe crucial for the success of any company. If you are working with people who think that marketing is just about optimising some Google ads then I believe you might struggle to grow in that environment.

    All of this is why I think expertise in a company is crucial to the culture. You need to be having intelligent conversations with people about tricky problems and personally, that is what I enjoy most about it.

    If any of this sounds even remotely interesting and you are looking for a new role in any field – marketing, development, product, sales – then reach out to me through LinkedIn and let’s talk.

  • How to conduct customer interviews

    How to conduct customer interviews

    I’ve created a new guide on how to run a customer interview tour. Download from below:


  • Slaying a few marketing myths

    Slaying a few marketing myths

    We’ve been doing some digital marketing work recently and the more and more time I spend on digital work the more beasts I feel need to be slain.

    NB: I’m talking specifically about B2B marketing here – which is important. It’s important because many of the problems that B2B marketers face come from taking a “copy and paste” approach from B2C in to B2B. But I think these two jobs are completely different.

    Myth 1 – A/B testing is valid when writing copy

    i’m not a fan of A/B testing generally, mostly for statistical reasons – these tests are almost never done on a large enough volume to be valid. But even if you did have an enormous data set, would it still be useful?

    I don’t think so. When potential customers are looking for a product that fulfils their needs, the language that you use, particularly on a digital advert, has to be as good as perfect as it can be. Not just the words, the insight, the phrasing, the context and so on. We’ve all seen ads where the copy is just “not quite right”. Are you presenting your product In the most appropriate way? Should you be describing a feature or the advantages and benefits? Should you be targeting someone more senior or more junior? Should the wording be laser focused on a specific use case, or more generic?

    The answers to these questions won’t come from an A/B test. They will come from sitting in front of a customer talking to them about their business and drivers, then finding a way to formulate that into something appealing and simple. And that’s why marketing is such an interesting discipline to work in!

    Myth 2 – More is better

    Surely if you have 10 different messages going out to customers about 10 different value propositions, that’s better than one or two? Surely?

    I don’t think so. I love the phrase “You will get bored of your marketing before your customers do”. If we are lucky, very lucky then our customers will be able to remember one thing about us, about what we do. It might be something like “Do you do security software or something?”. Or “Are you a Microsoft add-on?”. To try and get this message inside the heads of potential customers, it has to be repeated over and over and over. Then, if you are lucky, when they have a problem that you can solve they will have an aha moment when they remember “oh yes Syskit, they do something for that don’t they?”. They will then Google search your company name, find you read your website and make a decision about whether to go further.

    This is a massive win – It’s your brand advertising dollars at work. That you undermine this advertising if you keep chopping and changing what you are saying. If one day you’re selling on price, the next day on functionality, the next day on something else then they won’t know what you do and they won’t think of you when they have a problem you could solve.

    So choose the single killer feature, figure out why customers should care and then repeat, repeat, repeat.

    Myth 3 – If I can’t show the ROI of a campaign, I shouldn’t run it

    Perhaps one of the most dangerous in marketing. There are ways of showing the ROI of certain sorts of activities, for example I think it is possible to show the return on exhibiting at a conference (add up the spend, add up the opportunity value from the people who attended over the subsequent few months, and so on).

    But for 95% of what you do, this isn’t possible. And this is where the big difference between B2B and B2C marketing is apparent. I believe it is impossible to measure “the experience” of the customer interacting with your advertising or not. For most messages that a customer sees, that isn’t measured anywhere, particularly not by Google. Of course they say they do, but if you spend time with the numbers you realise how much is missed.

    Given this, I feel there’s an enormous amount of value that comes from certain sorts of marketing work, weather content, advertising or whatever. But it would be very dangerous to switch that off just because you couldn’t “quote “prove” its value. You wouldn’t understand the mistake that you had made until it was too late, when you have cut the advert and moved on to something else. So have faith that it is working and keep your eye on the messaging, to make sure you’ve got it laser focused.

    Myth 4 – Exhibiting at events is a waste of time

    Events are expensive to attend. The exhibition fees, travel, hotels, meals and much more. So the question is, are they worth it?

    I think they are but not necessarily in the most obvious direct way. For me, meeting potential customers in any way is the most important activity you can do. It is very difficult to just bump into customers so you need to find somewhere where they congregate (NB: going to visit them one to one is also a great use of time).

    The reason I think it’s so important is because you can have proper in depth honest conversations with attendees. What do they really value? What do they really think of your company? Who else do they like and why? I have often spent 20 minutes with a customer on a stand going through the details of their problems, and a lot of that content went straight into adverts or blog posts the next week. It makes the copy very easy – Just parrot back what’s your visitors said, with a little anonymity and hey Presto! It almost feels like cheating.

    There is of course a question of ROI which often comes up. And that should definitely be considered – You shouldn’t be flying around the world for an expensive event while there will only be 15 attendees. But assuming you’re making smart decisions about budget and the types of people who attend then, it’s very possible you will generate some interest which will cover your costs and you will get the incredible insights about the market for free.

    There are many more myths to be slain, and I’ll add them in as I remember them! At Syskit, we are clearly a 100% B2B company. All the marketing we do is in that model. This makes working here much easier as you know which advice to take on and which to ignore. It also focuses your time more on understanding customers, and a bit less on the latest tricks and trips from Google.


  • Remove meetings to achieve true flow

    Remove meetings to achieve true flow

    It’s been a great first few weeks at Syskit. I’ve really enjoyed it, and I’ve loved meeting the team. But more than this, I can directly see why the company is going to keep growing at an even faster pace than it has so far.

    Why? Is it the product? Is it the strategy? The market? Yes to all of these, but more than that it’s the culture of the company. It’s an open, communicative organisation with the right mix of autonomy and alignment.

    Even more than that though, the biggest strength I found is simply the lack of meetings! I’ve seen both sides over the years – places with multiple half-hour meetings every day and now Syskit where my calendar is pretty empty. The reason I think this is so strong strategically is that by freeing up people, up it gives them the chance to actually do the work and make a real impact. It’s a strategic decision because you pay a price of losing constant comms and interaction. But the payoff is worth it – multiple days in “flow“, feeling that you’re making significant progress on important tasks. I see more clearly now how time slicing is a killer for productivity and I would struggle to go back to that approach!

    With that, in mind, I’d better get back to it…


  • Speed

    Speed

    I’ve worked on projects where there has been a tenfold difference in the productivity of the teams. Specifically, given a piece of work like “Let’s build a new campaign” or “Let’s redesign the homepage”, I’ve seen the same team size do that in one week or in 10 weeks. What was that difference? Specific processes? Using a standard framework? Project management approach? How do you create a culture of speed?

    I don’t think so. From what I’ve seen over the years it’s something quite specific – a culture of trust and honesty – which then indirectly leads to much faster output. 

    I believe a high trust/honest culture has the following traits:

    • (almost) no meetings. The only meetings you should be having are celebratory – celebrating a new release or a deal closing. Why? Firstly, the obvious, almost everybody hates them! Most meetings are run on the HIPPO principle, which almost everyone dislikes. But why does it slow the business down? Because it delays decision making. Too many times I hear the phrase “That sounds like a problem, let’s put it on the agenda for our weekly meeting”. When you do this you’ve immediately slowed the whole project down by a number of days if not weeks. If you’re not at the meeting where thing X is being decided, then maybe you don’t need to be there. Trust your colleagues that the right decisions are being made. Trust that they understand your needs and you don’t need to spend your valuable time “Keeping an eye on things”.
    • Move fast and break things. Coincidentally, this week I’ve seen two errors from very well known organisations I suspect because they’re moving fast:

    • But crucially, I don’t think they’re moving too fast. I think it’s good that mistakes are being made because it shows a certain approach, that you are trying to get things to your customers as soon as possible. Note this is a strategic decision because there is a very plausible alternative (spend time and effort making everything perfect – the Apple approach). What’s this got to do with trust and honesty? You trust that when others make mistakes it was with the best of intentions. Trying to get things out trying to help customers is not being careless.
    • Proactively telling people about your mistakes. It takes some courage at first, but your colleagues will respect you more if you get in front of your mistakes first. Very difficult to do when you first start at a company. but worth the perseverance.
    • Sharing your work and results. if you can stand up in front of your colleagues, tell them how well you and your team have done, tell them what you did wrong and share all of the data (the good, the bad and the ugly), and be open to where you still need to do better – then you’re showing maturity as a leader, exactly the sort of thing that a good company will be looking for. Again this speeds everything up because you don’t need the endless one to ones. Everyone sees the same info, everybody knows what’s going on so you obviate the need for lots of half hour “catch-up” meetings killing your diary.

    These are all great things, but how do they save you time? They save you and everybody else time because you preempt the endless back and forth debating ideas and suggestions. “Perhaps this person knows what she’s doing, perhaps we should give her idea a shot before we shoot it down!”. That way you can go from idea to trial to implementation in a week rather than going round and round trying to decide something when frankly nobody has the answers. 

    But really the true advantage in terms of speed is the possibility of getting into a flow therefore getting through a higher volume of work. The book “Deep Work” by Cal Newport has been very influential on me. You need 4 to 8 hour blocks without interruption so that you can really get your head into a problem, to do significant and valuable work. I’d go even further and say the most valuable work I’ve ever done is when I’ve had multiple days free to remove myself from the day to day and create something significant. And that’s something we all want to do.

    Click here to find out more.


  • Have a plan. But double down on what’s working

    Have a plan. But double down on what’s working

    There are always too many things to do running a marketing department. The essence of your job as a marketing leader is making strategic choices about where to double down and where to pause. This is what makes the job both interesting and difficult.

    Below I’ve provided a scorecard that I’ve used many times in the past. It comes from the great Gabe Larsen, someone that I’ve followed for years on Linkedin, and I’d urge you to do the same.

    This is just a example of his scorecard with some semi random numbers filled in. These are the scores that you give yourself and your department to show where there needs to be improvement and where everything is “just fine”.

    An obvious first point – be honest. This is something for internal use only (as I say, the example above is semi-random). If you publish something like this to a wider group then there’s a risk you’re creating a problem for yourself (“I thought you said we were great on social media. It says here we’re hopeless!”). It takes a growth mindset to use this sort of thing really effectively. As always, fix the culture first.

    So once you get over the cultural and communication issues, the very next question is “So what? What do I do with this?”. To quote a friend:

    Eight out of 10 ideas are bad ideas. So the worst thing you can do is try to do everything. you’ll just burn everybody out. The “OK” thing you can do is to do nothing. At least you’re not burning everybody out. But of course the skill is choosing the right two things to take forward.

    What I like about this scorecard approach, is that it gives you the superset of all the things you could do which forces you to consider them. In the example above, the marketing leader has proactively decided to not do any business development work at all. That’s not because she just doesn’t have time or doesn’t know anything about it. It’s a proactive decision that this isn’t something that will move the needle. Crucially, this frees up time to double down on something else. And that’s how you move from being a tactical marketer to a strategic marketer.


  • Strategic marketing – knowing where to place your bets

    Strategic marketing – knowing where to place your bets

    Strategy is about making choices. If you’re not stopping some activities or choosing to not do something then you’re not being strategic.

    Easy to say, less easy to implement, particularly when the organisation wants “More leads, more leads, more leads!”. How do you say “I want to do less”?

    Almost everything in the world of strategy can be shown in a 2×2! I use the following simple model to help me decide what I need to stop doing and what I need to start doing more. It categorises activities into one of four groups:


    Opportunities (top left)

    The Spanish Prisoner
    “The Spanish prisoner”

    The place where 90% of the discussion takes place. What else can we do? What are we missing? What new things can we do to fill the gap?

    There’s a good reason why most time is spent here. Most earlier stage companies are in an aggressive growth phase – they’re not yet trying to cut costs and optimise the organisation. They just need to grow by any means. And this generally gets translated into “What new things can we do?”.

    But you only have finite resources. Given that most new activities don’t work, the skill is in choosing the right things and I’d argue that’s the difference between success and failure; between good leadership and poor. It’s better to do nothing at all than everything! At least you’ll still have a team at the end of the endeavour.

    Secret Sauce (top right)

    “Marcella Hazan’s Tomato Sauce”

    These are the things that are working for you right now and making you money. Be very careful before you start reducing effort here, particularly if you’re not sure. For example, it may be that there are a number of review sites that are writing rave reviews about your offering. You may be completely oblivious to this but you’ll know soon enough if the product quality goes down and the reviews start getting worse. And by then it might be too late to stop the decline.

    The difficulty is being very honest about why customers buy or don’t. You may wish for example, that it’s because you have the greatest user experience on the market. But that might not be true! It might be that 80% of your sales have come through simple reliability, perhaps for quite a dull product. Not much fun, but if you move resource away from the wrong team It might be hard to get that good reputation back.

    The Past (bottom right)

    Knight, death and the devil
    “Knight, death and the devil, Albrecht Dürer

    The market changes. How you got here might not be the best way of moving forward. This can be a very hard pill to swallow, and can lead to some difficult decisions. But as I say, the world changes. In marketing there are activities that were very strong 15 to 20 years ago but do you now rarely see. An obvious example is print advertising. Yes there’s still some going on but it’s definitely not the business it was. I would also put an activity like cold calling into this category – It worked in the days of Glengarry Glen Ross but that was a long time ago!

    To stop some of these activities takes teamwork, trust and bravery. It’s far easier to keep spending the money, than tell someone you don’t want to do their favourite activity anymore. But that’s the job I’m afraid.

    Sirens (bottom left)

    “Tim Buckley”

    Sirens are activities that seem oh so tempting, but you need to resist. For example, most marketing departments want to do publicity stunts. They’re fun and the employees will love it! but they can be very expensive indeed. What seemed like a quick brainstorm decision can turn into months and months of graft with little return.

    Sadly as a marketing leader, your job is to say no, however tempting the idea. Again, I believe decisions here demarcate great leadership from poor leadership. If a member of your team comes up to you and says “I want to spend the next three years engaging with Gartner, when should I start?”, and you don’t think it’s the right thing to do, then you need to ignore that particular siren.


    Finally, it’s worth mentioning again, my examples above are specific to a particular company at at a particular moment in time. These will obviously be different for you! But the process – listing the hundred things that you could do next and pushing them into one of the four quadrants – Is crucial if you want to hit your goals without completely burning out the team.


  • B2B marketing help

    B2B marketing help

    One thing I learned very early on in my career – you can’t do a marketing job without almost constant interaction with the rest of the business. Whether that’s the sales team, the product team, HR or anyone else, you need constant input and feedback from both inside and outside the building.

    One very specific case of this – how do you get help with those difficult but crucial decisions that could make a long term impact on the business? one of the issues with being in a role for a long time is that you “Don’t know what you don’t know”. The only way that I’ve ever seen this problem successfully addressed is with external help. And by this I mean “Find somebody who knows more about this problem than I do”. A few days of insight from a guru in your field can save you months off time looking into something where you don’t know where to start. I’ve done this many times in my career, whether it’s “How does B2B marketing work in France!?” through to “What does world class product marketing look like?”

    As I say, I’ve worked with lots of these gurus over the years, but i just wanted to pick out three in particular who have made a significant impact on my development and understanding. If you want to make a significant step change in one of these areas I would strongly recommend following these people and subscribing to their feeds – I’ve been very lucky to have worked with all of these people directly.

    Gareth Marlow – leadership

    Gareth runs eqsystems.io and is the most knowledgeable person I know on senior leadership. Most of the problems I’ve ever seen with the impact of work done by teams, comes down to leadership. Why aren’t we getting more leads? Poor leadership. Why isn’t the product fit for purpose? Poor leadership. Why does it take us six months to do something that our competitors do in six weeks? Poor leadership. These problems are almost never caused by employees not knowing what they’re doing. It’s far more likely to be lack of direction and a poor culture.

    So if you have a problem with, say, lead generation then before you start looking at your Marketo implementation, look at how you’re leading the team. And if you need help with this then Gareth Marlow is the first person I would talk to. You can’t do everything yourself, you need your team to work In sync with you, aligned to the strategy. This is difficult, very difficult and I’ve found Gareth one of the few people who can help you navigate through the actions that you need to take.

    April Dunford – positioning

    As April puts it herself “Positioning has a positioning problem”. I would agree sadly. It’s a term that is thrown around a lot in marketing departments with very little understanding of what it means. The best way to get started with understanding this problem is to just buy this book!

    Additionally, if you can go and see April talk at an event or similar then I would very strongly recommend it.

    Richard Rumelt – strategy

    Another term that is heavily misunderstood – “Strategy”. If you’ve ever sat in a room and heard the phrase “Our strategy is to be the best in the market and to win” – then you need this book. True strategy (i.e. making choices based on diagnosis) is rare and again, an afternoon or two with this book will give you a step change in your understanding. What’s also great about the proper understanding of strategy is that of course it’s not just restricted to marketing. This book has helped me understand how decisions get made, how to make a proper argument for something and why some projects work and others don’t. Again, highly recommended.

    For any further help or if you just want to tell me what you thought of these recommendations, please get in touch or subscribe to the newsletter.


  • The Marketing Flywheel

    The Marketing Flywheel

    New Year, new marketing plans. Hopefully by now you’ve kicked off various activities and you’re waiting to see how those early campaigns are working out.

    The other thing I see in marketing departments at this time though is burnout. Everyone is trying to do everything either because there’s no real strategy there (“let’s throw everything at the wall and see what sticks”). Or it could just be bad planning (“the start date for every campaign is the 1st of January”).

    Either way, you might soon be revisiting the strategy discussion. Specifically, why are we doing activity A? Can we kill activity B? Is activity A working yet? That activity can quickly turn into navel gazing, when what you need is focus and a way of choosing what you should be really worrying about. To that end, I’ve been using the flywheel model below for years now. The point of the model is that you have a list of metrics and activities you can look at to check whether you would actually doing them and doing well. As a simple example: if nobody is coming to a website to talk, what should you do? Should you hire a content writer? A designer for the website? A product marketer? The diagram and notes below give what I think the “next best” activities, based on splitting the marketing flywheel into five stages.

    The marketing flywheel for senior decision-makers (SDMs)

    This first diagram is for senior decision-makers (SDMs). There are no hard and fast rules here, but generally these are people who are less likely to be actually using the product themselves but certainly influence the buying decision heavily.

    For each part of the flywheel, I’ve put what I think the most impactful activities. If I only have time to do one thing, what is it? Looking at the first diagram, if you’re brand-new into a market (nobody knows about you) and you’re trying to sell to senior people, where should you spend your money? You must create awareness of the brand first. I nothing else will work without this first. So your first activities have to be things like PR, analyst relations, thought leadership, at some budget for LinkedIn. If you were spending money on complex lead qualification processes, when you have no leads to qualify!, then you’re burning money.

    The marketing flywheel for end users

    This second diagram spend users. Meaning you are advertising to the people who are actually going to be using the products. That means they’re likely to be more junior and have very different requirements (for example they’re likely to care about usability and less likely to care about long-term financial benefits in the organisation).

    Here, the marketing is different. End users don’t read the same things as senior decision-makers. They’re far more likely to do a Google search for a particular problem they’ve just hit a than for an in-depth analyst report.

    What does this mean for marketing budget? If there is a community of users, then you need to reach out to them. If not, PPC and SEO crucial. Either way as you get further through the flywheel the product has to be amazing (for end users, there’s nothing you can do in marketing that will overcome an unusable product).

    Hopefully this is useful as a way of making sure you’re making a big impact to the start of the year without burning everybody out and without burning through your whole budget by Valentine’s Day. If your plan is to “do everything” then that’s not strategy, that’s a recipe for employee burnout and empty pockets.


  • How to make decisions

    How to make decisions

    There’s a myth that as you get more senior, you get to make more autonomous decisions about what happens in your business – what strategies to pursue, tools to buy, markets to go after and so on. “I’m the Head of Marketing, so surely I decide all the marketing stuff!?”

    In fact it’s the opposite – the more senior you get, the fewer autonomous decisions you make. Why? Because those decisions have a wider impact, so you need to consult more with others and bring others along with you. That doesn’t mean you don’t own decisions – you still need to lead on making the right choices and pushing changes through. But you don’t get to do that all on your own.

    I’ve used the following framework to help me decide how to make different types of calls – hopefully you’ll find it useful. Whenever a new decision needs to be made, I try to classify it in to one of three categories:

    1. Decisions I can make on my own. Using the example of marketing, there are certain things which have more or less zero impact outside your department. Things like “What subject should I put in this email header? What messaging should we use for this campaign? How should we set up Marketo to work more effectively? What ideas do we have for getting more people on the newsletter?”. I struggle to think of more! You might still choose to communicate what you’re doing for info – transparency is always preferable – but it’s optional and something you might do after the fact. I think, for a senior role, this is around 5-10% of the decisions you make.
    2. Decisions that I make, but where I need to consult others. If something is a marketing problem, then you should make the call. However, this doesn’t mean you don’t need to consult your partners first – Sales, Product, Finance, HR, Technology (depending on what the question is of course). Most decisions you make will have upstream or downstream consequences – if I change our Marketing Automation tool, what will happen to the leads going to Sales? If I decide to target Belgium instead of Netherlands, how will that impact Sales figures? If I decide to position our product differently, how does that align with the Product roadmap? And so on. Crucially, this isn’t just about telling people what you’re doing – you should be consulting with those people to really understand the impact, then adjusting your thoughts accordingly. The trick is being clear upfront about the decision-making process – that yes, you’ll be deciding whether to switch to Marketo, Hubspot or Pardot, and you’ll be listening to everyone’s views on the subject. But ultimately you’ll carry the can for that decision, so it needs to be yours. I estimate around 70-80% of decisions are like this, depending on your role.
    3. Decisions that I want to happen/influence, but aren’t mine to make. We all depend on each other to be successful – the success of a marketing department is wholly dependent on the activities of other teams. We can’t sell a product that doesn’t exist (well, you can, but you shouldn’t!). Sales teams close our pipeline. HR helps us build our team, and so on. And we’ll often need those teams to do things for us. But if it’s a Product, Sales, Finance or HR decision to make, then it’s not your call – and it’s important to recognise that. Your role is to try and influence that plan. Sometimes you’ll get your way and sometimes you won’t. If it’s the latter, you need to adjust your plans accordingly and still find a path to success – there will be reasons why option B was taken instead of option A, and you need to find a way to accommodate that decision. Around 10-15% of decisions are like this, in my experience.

    Being clear at the start of a process on which of these you’ll take is really the difference between a decision that lands with an organisation (because you’ve taken their views into account) and a decision that never quite gets taken up and implemented. The real skill is balancing the consultative approach with the importance of actually making a decision and driving it through. Not easy, but it’s a far stronger approach than making calls on your own – and none of them ever being implemented.


  • How Collaboration Can Grow Revenue

    How Collaboration Can Grow Revenue

    Why do Marketing and Sales departments need to collaborate? Sure, it’s nice, but beyond people getting on better together, how can it really impact the numbers, the outcomes for the business?

    We’ve just spent a month at Redgate improving the collaboration between the two departments and we can see the direct and measurable impact on new opportunity generation. Here’s what we did and what happened. NB: None of this is rocket science, these all seem like really obvious things to do. But it’s quite rare to see such a direct impact on the numbers, so I wanted to share “What we actually did” as it may be useful to others – it can be easy to miss some of the basics.

    What is Collaboration?

    To start with the obvious, it’s nothing to do with whether you “get on” or not, whether you’re friends. We have great relationships between the marketing and sales departments, we get on incredibly well, and we talk all the time. But that’s not collaboration.

    I feel there are three levels of what could be called “collaboration”:

    1. Sitting in a (virtual) room telling each other things – what your plans are, what the latest results are, your ideas for the future.
    2. Sitting in a (virtual) room listening to each other. A step up from above, actively finding out what others are working on, trying to understand their goals, and how you might fit in.
    3. Sitting in a (virtual) room looking at the same numbers, working on a common goal

    The first two are fine, and communication is great. But the third is what I consider true collaboration – what is our shared goal? What are the (shared) numbers showing? What can we do to fix this, together?

    And it’s the third of these that we kicked off at the start of 2021, and has shown direct impact on the outcomes we care about.

    What Did We Do?

    Redgate has a good problem (and has had that problem for a while) – too many “leads”. We get around 500 leads a day (a lead being “Someone who expresses an interest in one of our offerings, and gives us some of their details”). Great, what’s the problem? The problem is that salespeople’s time is invaluable and scarce. If we asked Sales to follow up on all 500 leads every day, they would waste an incredible amount of time chasing low quality leads, tyre-kickers, people who will never buy from us and so on.

    This is a standard problem in marketing/sales and the solution is some sort of qualification process. There are various models out there (the SiriusDecisions Demand Waterfall being one of the more common frameworks), but we have a pretty simple process – use Marketo to score leads on two perpendicular scales – engagement, and firmographics, then only pass the good Marketing Qualified Leads (MQLs – the Glenngarry leads!) through to Sales. It’s generally around 10% of the total, or 50 a day. Then keep the rest back to be nurtured from within Marketo until they’re ready for prime time.

    So far, so easy. But of course the point is that it isn’t easy. When you move from theory into practice, here are some of the problems you hit:

    1. What you think is an MQL, is not was Sales think is an MQL
    2. Worse – different sales folk in different offices have different views on what should or should count
    3. Different salespeople are happy with, and capable of taking on leads at different “stages” – from very early “Can I have a chat with someone?” enquiries to late stage “Can I get a quote please?” orders
    4. Even if you agree on criteria, what cadence should a salesperson follow with different types of leads? Three calls? A call, an email, then a call? When should they give up? How do you know if the process is being followed?
    5. How much extra work should sales people do to add context and info for a lead? Marketo/Marketing provides some data (industry, job title, company info, web usage etc), but not as much as everyone would like
    6. If you agree on lead qualification, how do you get the right leads to the right people in a timely manner?
    7. How do you learn and adjust qualification over time? If you find leads of type X are gold and leads of type Y never seem to go anywhere, how do you change the qualification process quickly? How do you get that feedback back in to marketing from an enormous and global Sales team?

    Most of this is operational – needing marketing operations and sales operations teams to work together alongside the rest of their colleagues. And there’s a lot to figure out here. But these are the things we did in January to try and tackle some of these problems. Not everything went smoothly, but enough went well to achieve noticeable differences in the numbers. And everything here was a joint project between various people in Marketing and Sales at different levels.

    • Reporting. We started by putting together some basic reports of MQLs and Opportunity numbers. We focused on “Consistent, simple but imprecise” over “Complicated but accurate”. And we spent time running these through with Marketing and Sales leadership, to see if we had a common agreement that we were looking at the right things.
    • Definitions. Next, we realised there were a lot of different definitions out there – what was an “Inbound lead”? What was a “Good download”? What should we do with “renewal referrals”? So we spent a lot of time talking these through – in 95% of cases, we were all aligned to start with, so we spent time on the 5%. As an example – what should we do if a customer has asked a renewal rep to add a license on to an order? Is that a sales person upsell, or just a customer enquiry that came through a circuitous route? (We decided on the latter btw)
    • Lead Types. We spent a lot of time simplifying the types of leads we’re interested in. From analysis of 2020 data we realised that the vast majority of leads came from a small set of sources – inbound emails/phone calls, web orders, downloads & free trials, events/webinars, reaching out to current customers, and prospecting out to new customers. There were then about 10 additional sources, most of which generated less than 1% of leads each – we simplified the model to the few that really matter.
    • Lead Flow. Armed with an understanding of different lead types, who should get what? And how quickly? We spent a lot of time with operational teams working out the processes then implementing manual processes (we’ll automate later…) to make sure all the leads found the right home (I like to think of this as “No lead left unturned”)
    • Follow up. Is every lead being followed up? With the right cadence? Again, some great work from our SalesOps team, and Sales Leadership making sure this was happening.
    • The Feedback Loop. We now track which leads are converting and which are too early stage or low value. We’ve already made one round of changes to the qualification process, and expect many many more as we learn over the coming months.

    What Impact Did it Have?

    This is what matters. If you did all of the above, you can give yourself a pat on the back, but it only matters if it made a difference to the numbers. So did it?

    Yes it did. I can’t post all of the charts here, but in summary:

    • January opportunity generation (before we’d actually made any changes) was more or less the same year-on-year. A bit disappointing, but we are in the middle of a pandemic.
    • So far, February opportunity generation has been between 20% and 30% up year-on-year, after we made the changes described above.

    Could this just be luck/the market? It could be, but poring through the data for “What actually happened here?” it clearly shows that the new opportunities are coming from the right leads being placed in the hands of the right sales people with the right information at the right time. Sales people feel like they’re getting decent leads from Marketing. Marketing people feel that all their leads are being “maximised”. And most importantly customers are getting the service they expect – help from Redgate when needed, and left alone when that’s what they want.

    I’ve been watching the figures every day like a hawk, to wait for things to go wrong, but the increase is very consistent.

    Looking back over January, this effort would have failed if it hadn’t been for us taking a collaborative approach. As mentioned at the start, these things aren’t rocket science. So why didn’t we do it all years ago? Well, a number of reasons (having the right people in place for example), but primarily, that taking the more forensic, tougher and collaborative approach was necessary to proceed. We could have tried doing these things in isolation, but it would never have landed as well as it did.


  • Getting from Green Park to King’s Cross

    Getting from Green Park to King’s Cross

    Anyone who has used the London tube system much, will know that there are two routes from Green Park to King’s Cross – the Victoria Line and the Piccadilly Line. The Victoria Line is the “Right” way to get from Green Park to KX – it’s quicker with fewer stops, why wouldn’t you take this route?

    An important principle at Redgate is that we’re outcome-focused. Everyone says this of course (who would ever say “I don’t care about the impact of work, not my problem!”), but it’s important to understand the implications of this approach. Specifically that “It doesn’t matter how you get to your destination, as long as you get there”. It doesn’t matter if you take the “Right” way, the “Wrong” way, or any which-way (as long as it’s ethical of course!) – your job is to achieve your goal.

    Seven years ago now, I was out near Green Park, London with a friend (back when that was a possibility..), and both of us had to get the train back north from King’s Cross, leaving in 25 minutes time. We got on to the platform at Green Park Station and of course headed towards the Victoria Line. But as soon as we got there, I noticed all of the trains had been cancelled – so rare for the Victoria Line! At this point I started whining about the trains, how we’d never make it in time, how we were doomed. But my friend turned to me and said “Follow me”.

    We ran as fast as we could to the Piccadilly Line platform. Luckily the train was due in under 2 minutes, so we jumped on and waited for the seemingly endless stops to King’s Cross. As soon as we got there, we sprinted through the station, along the platform and leapt onto the train with about 45 seconds to go. We made our train, and got home at exactly the time planned, even if we were a little breathless for the start of the journey.

    We achieved our objective the wrong way. It was far more effort and we made the worst (but necessary) choice. But it doesn’t matter – we made it!

    It’s crucial when you’re trying to achieve a goal that you don’t get anchored to a particular solution or approach. For example, if your goal is to “Increase leads in the EMEA region”, you’ll likely start with a marketing plan of how you’ll achieve that. An array of strategies, with particular spends, campaigns, reports and, crucially, dependencies on all sorts of other things happening – both internal and external – which will be out of your control. But any one of those things can go wrong, and your job is to maintain the relentless march to the outcome. Reports not available to you? Make them yourself. Email nurturing track can’t be implemented? find another piece of technology that can do it for you. Budget constraints? Find innovative ways of making the same impact with great content instead. Internal resource not available? Find a contractor, find a temp, phone a friend!

    It’s very likely that when you reach your destination, you’ll be exhausted with the pivots, the workarounds, the manual processes, the hacks. But at least you will have got there. For me, that’s what “Outcome focused” truly means – ingenuity and agility on how to get there using whatever means you have at your disposal, even if at times you know you’re doing things the wrong way.


  • How to Present to an Exec or Board

    How to Present to an Exec or Board

    For better or worse I find a lot of my tips and tricks for working in a software company from fiction books and films. I learnt most of what I know about how to present to senior folk (an Exec team or a Board even) from a two-minute scene in David Mamet’s film “The Spanish Prisoner”:

    In this scene, the main character (played by Campbell Scott) has to present to the board on his new idea (“The Process”) – how do you present something extraordinarily complex and nuanced to a group like this?

    There’s a great line early in the scene when Ricky Jay’s character starts to talk about the team and the effort behind the work and the CEO responds with “I know you’ll understand when I say that’s neither here not there”. Harsh, but what the board really want to hear about is:

    1. How much money will we make?
    2. What are the risks? What do we actually own?
    3. What are the timelines?

    The presenters then go on to speak to these points and get what they want from the group.

    Of course this is fiction – rarely would a senior team make investments based on so little information (and I’ve never known a senior team care so little for the people behind a project!), but it makes the important point – know your audience, don’t waste their time and concern yourself with what they want, not what you want. At a very practical level, next time you’re presenting to a senior group, consider chopping half of your presentation out (regardless of how short it is already) – the skill of summarising key strategic points, and speaking to the point is valued enormously in any company.

    Of course I’ve always found marketers good at this sort of thing. Good presentation skills are often expected of marketing people, but there’s more to a great presentation than good elocution. What’s needed for a pitch to a senior team? Knowing your audience, not wasting their time, and concerning yourself with their needs, not yours – a concise description of “Marketing humility”, the skill of putting the customer at the centre of everything you do, and leaving your own concerns to one side. It’s at the centre of how great marketers think.

    Watching this scene again also reminded me of a great talk I heard from Erica Seidel a few years back at a MarTech conference. There she talked about the three skill areas she looked for when hiring senior roles:

    • Attitude – what general approach/attitude does the candidate bring to a role? Positive? Pro-active? Team player? Team builder?
    • Aptitude – can they do the actual thing they’re being recruited for!? A VP of Sales needs to know Sales obviously.
    • Altitude – can the candidate talk to colleagues at all levels? Can they summarise a strategy in 2 minutes to the CEO, then spend all afternoon in a workshop going through the details with the implementation team?

    Erica’s point in the talk was that, of course, everyone focuses on the 2nd of these. And most people ask about the 1st. But few ask about the last, and it’s a great skill to have as a candidate. The ability to turn on a sixpence and completely change the way you present a proposal from “This is how much money we’ll make, and why the risk is low” to “Here’s the 25 pages detailing how this is all pieced together, and how we’ll run the project” is a scarce talent and invaluable to employers.

    The film is one of my all time favourites, and of course anything by David Mamet is great. Films and books often provide great lessons like this because a great writer will be able to summarise the essence of a situation in a few moments, more succinctly than a 256-page book. I strongly recommend watching the whole film through – there’s so much more in there about other aspects of company life too, all of which I’ve found useful over the years :).


  • Under-promise, Over-deliver for product-led growth

    Under-promise, Over-deliver for product-led growth

    There’s a lot written about the advantages of product-led growth (PLG), how it keeps marketing and sales costs down, how customers prefer it and so on. All good, but I struggled to find much on the actual strategies to use – how do you do it?

    There are obvious things like having a product with amazing product-market fit. But that doesn’t really help with strategy – it’s not particularly insightful, and it is, of course, the task that vast parts of your org will be working towards – what do the customers want? What is the market? How do we iterate towards their needs? And so on and so on. Let’s assume you’re doing all you can in that direction.

    How can you help as a marketing department? Well, there are lots of tactics: focus on inbound work, build a community, make sure the CTAs are in the product (to help people from product-usage to getting in touch), design trials properly to that people understand the value. Fundamentally, you’re trying to use the product and usage of that product as the channel.

    But I wanted to focus on one specific strategy that has been pivotal at Redgate, about the messaging and tone you use with customers – and it’s something that is (sadly) pretty rare in the world of marketing. By definition, most PLG is targeting users of your product, and there are specific ways in which you need to change the way you interact and message to this sort of customer.

    It’s an enormous over-simplification, but the process for PLG, runs something like:

    1. Through some mechanism, a new user finds your product,
    2. User tries product, loves it, buys it,
    3. User tells colleagues, friends, everyone about how great your product is. Go back to step 1!

    The question is, how do you amplify this cycle? Can you catalyze this, or do you just need to let it run its course?

    The “trick” we’ve found most effective for messaging is “Under-promise, over-deliver”. And you can see how that runs counter to the standard marketing mindset.

    To see why this approach can be so effective, firstly ask yourself – as a user/consumer yourself, how many times have you bought or tried something – either in a work or personal context – and been disappointed? For me, this is (sadly!), the standard process for making purchases: you’re sold something based on a promise, and over a period of time you realise that it’s not quite what you hoped for. Whether it’s a piece of MarTech, a meal out, a new laptop, an agency’s services, whatever – our general experience is one of disappointment.

    But here’s the “trick” – where this hasn’t been the case, where a product is genuinely at least as good as the promise, if not better, then these are the times, and the only times when I’ve recommended that product to someone else. Going back to point (3) above – the process of recommendation or word-of-mouth is the fundamental driver of the product-led growth model (from a marketing perspective).

    Take a specific example. You’ve been asked to market a new piece of MarTech, say a chatbot system. You’ve got a good product, it’s better than most of the competitors, and you’ve been tasked with implementing a PLG strategy – you want to build the business from the bottom-up. You’ve now got two choices:

    • Extoll the virtues of this thing – tell customers that every user will love it, it does everything the competitors do and more and that it will “Transform your business overnight, doubling your customer base, as they all start buying from you, because of your wonderful chatbot facility”. Or,
    • Something with a little humility. Be clear about the scope of impact a chatbot can have – “Help your customers interact with you in a way they prefer”, “Lower your support costs by 15%”, and so on.

    Option 1 is fine if you just want the initial sale, and don’t care too much about the ongoing word-of-mouth process. Do you care if that customer decides to recommend it to friends and colleagues? Perhaps not.

    But if you do care about these things, option 2 is the better strategy. Why? Because, taking the product functionality as a given, the individual is far more likely to go through a process of:

    • Let’s try this product,
    • Wow, this is better than I thought! I was really ready for disappointment, but this is way better than expected!
    • I’m going to buy it. But more than that, I’m going to tell others – it’s so rare to find a product that’s better than expected, it’s worth mentioning it!

    ..and so the virtuous cycle begins. Of course another key point is that end-users do tend to be more skeptical of OTT marketing messages. So it’s a welcome relief to those individuals when they finally get a vendor that is straightforward with them, even to the point of humility.

    There are many examples of this out there – companies where the product is genuinely better than the marketing message would imply:

    1. Redgate – I would say this, but it’s been our strategy for 20 years. And it works – Word-of-Mouth is still our strongest source of leads.
    2. Apple – my experience of Apple products, is that they repeatedly surprise you (in a good way!), with features and usability that you didn’t expect.
    3. Assassins Creed video games – one for the gamers, but these titles are always, for me, better than I expected. They don’t tell you everything you’ll be getting, you find this out yourself through game-play.
    4. SouthWest Airlines – the website makes it feel very standard, but anyone who’s ever flown with them will know that the experience is a long way from this. Always a pleasure to fly SouthWest (I can’t help recommending them!). I just hope they get through the current crisis intact.
    5. Brancott Estate lower alcohol wine – the label makes it look really average and “Supermarket-ey”. But it’s an amazing wine with only 9% alcohol. I must have recommended it to 10 people already.

    So why doesn’t everyone market this way? Because there is a tension between immediate sales and long term growth – and taking this approach, of under-selling yourself – requires some faith. And you’ll be asked by your colleagues, “Really, that’s the best you can say about this?! Aren’t you a marketer!?”. So you have to hold your nerve a little, and take some risk. Of course one way of de-risking is to try and measure WOM recommendations over time – are you getting leads in, seemingly from nowhere? If you ask customers “Why are you looking at our products?” and you get something like “A colleague told me about it”, then it’s a good sign that you are on the right track.

    Because of course when it does work, it’s one of the lowest cost and most effective marketing strategies there is. It just takes patience and sometimes nerves of steel.

  • Finding Balance in Marketing Strategy

    Finding Balance in Marketing Strategy

    It’s that time of year again (for us anyway) – putting together the detailed marketing strategy and plan for 2021. And yet again it’s hard going. I’m not complaining – if it’s not difficult, then you’re not doing it right. Our job as marketing leaders is to work through the almost-overwhelming volume of data and insights – both internal and external – and somehow distill that in to something concise and executable. Crikey.

    This year I was thinking why it’s so tough, particularly in marketing. My conclusion is that large parts of marketing strategy are about finding balance in your activities, making adjustments to budgets and activities to re-balance your efforts appropriately. This runs counter to an innate desire to “Make big decisions”, “Disrupt what we’re doing”, “Try something big, something new”. But most marketing is about balancing investments and activities across an enormous range of target persona, channels, offerings and activities. So why is this so complicated? I think the answer starts with the customer journeys that we’re trying to affect, and the extraordinary complexity of those journeys.

    I love this slide from Challenger:

    Challenger B2B Buyer Journey

    No need to (try!) and comprehend this – the point is that the way B2B buyers purchase from you is a long and winding road, full of shortcuts, blocks, backward loops and interactions between multiple people. To take a specific example from this diagram: yes, Web Searches are part of this journey. And if you thought that was something you wanted to fix in your planning next year because it’s not working so well – then that’s great. But it’s just one tiny part of the experience that one of the customers in a buyer group has for just one of your products. Neglecting the rest of the personas, the process and your range of offerings can lead to a scenario where you are “Robbing Peter to pay Paul”.

    To make this more tangible, here are just some of the balances we’re trying to get right this year:

    1. Brand vs. Activation. How are we splitting our budgets and investments between “Creating mental brand equity” (to quote Binet and Field) and aggressively generating leads today for sales teams? There’s a great post here, from Shane Murphy-Reuter about the need to balance activities to sow the seeds for the future, with the subsequent farming or harvesting activities needed to generate leads. And this is such a hard balance to get right – feeding the insatiable sales beast is core to our jobs. But we’re not doing our jobs properly if we’re not thinking about years 2, 3 and 4 as well.
    2. Balance across the lifecycle. As illustrated above, the idea of some sort of linear funnel for how buyers behave is pretty fantastical. Nevertheless, there are activities we do to either a) Build brand awareness/commercial intent, b) build early engagement, c) create opportunities, d) get the customers over the line or e) look after customers post-purchase. Heavy investment in any of these is so tempting – “If we get share of voice/share of search up, then the rest will just follow?!“, “We need to focus on conversion of engaged users to actual opps for sales!“, “Unless we convert these opps in to $$, why does any of it matter?” etc etc. But again, you need a balance and you need to ensure you’re not lurching too far away from any particular activity, not least because all of these stages rely on the others around them for overall success.
    3. Portfolio balance. If you only sell one product, you can ignore this. And lucky you! But most of us work for multi-product companies. And every product needs to double efforts to succeed! The problem of course is that marketing is a long-term gain. If you spent the whole of 2020 building up awareness of product X, ready for your sales team to capitalise on that demand in 2021, but you then move all of your efforts on to product Y, then you probably needn’t have bothered with the 2020 investment. You need to follow up on your work (“Okay, here’s the sales enablement material needed to convert that demand”) and that can make lurches dangerous, or at best, wasteful.
    4. Balance across personas. As we all know, customers buy in packs. Or rather, Buyer Groups, to use the correct phrase. And those groups will be a mixture of economic influencers, senior technical folk and end-users. It takes a long time to build up awareness and trust with any group of people and again, shifting effort away from that group, just as they’re getting interested and ready to consider you – can lead to a waste of that historical effort, budget and spend.

    So, I strongly feel that lurches, from one extreme to another can be dangerous, given the long-term nature of good marketing work. But obviously resources are finite – how do you manage and communicate this balance? How do you communicate the fact that, a shift in balance from A to B doesn’t mean that A no longer matters?

    I’ve started using a 2×2 for this, which I’m finding helpful:

    No alt text provided for this image

    For each quadrant, place all of your activities, personas, lifecycle stages, products in one of the four quadrants (best to do each separately…) and use this as guidance for where to invest more or less:

    • (top-left) Opportunities – Invest. These are activities which you think are important to your business, but where you’re under-investing right now. For example, if you felt that “Virtual events” was important for your strategy, but you weren’t doing much of it right now, this would go here.
    • (top-right) Secret Sauce – Protect. The most important quadrant here for communication. What are the things which are crucial to your business, you’re already doing them well, and you mustn’t screw them up? For example, if you do incredible work right now supporting sales people with a specific product, and that’s making a lot of money, that would go here.
    • (bottom-left) Sirens – Ignore. Sirens, because they’re so tempting – these are generally the new things out there, you read about on marketing blog posts (“Use TikTok to reach a new audience!”) but which are of no relevance to your business selling, say, logistical tracking software. Your job is to ignore these things.
    • (bottom-right) The Past – Reduce. Just because something worked for you in the past – a tactic, a persona, a channel, a product – it doesn’t mean it will work forever. This is the tough quadrant to fill. What are you doing right now which, if you were honest, is no longer relevant? If you were bold, what do you think is (now) a waste of everyone’s time? Your job is to actively reduce investment here, and hold your nerve.

    A 2×2 implies a process is easy – and believe me this process is anything but. But putting all of your activities in to this framework and using it to help your thinking, will help you decide “What can’t I touch?”, “Where does the balance need to shift?”, “Where can I take money from [to free it up for other things]?”. And it will also help you communicate to non-marketers the breadth of activity and work that adds up to the overall impact of your function.

    The trick is to not over-steer. It might be tempting to make bold moves, to put “Everything on red”, but marketing is a long-term game, and you’re gambling with someone else’s money! Getting the shifts in resource right – putting the money on things that are already showing promise, removing budget where it’s no longer making any impact – is the tough, but interesting part of the job. Good luck!


  • Your Customers Pay Your Salary (not your Employer)

    Your Customers Pay Your Salary (not your Employer)

    “Don’t find customers for your products, find products for your customers” – Seth Godin

    The simplest ideas are the best. But they can also seem the most banal. Hidden in the Seth Godin quote above is, I believe, one of the key differences between a mature and immature organisation. Between a company that is ready for prime time, and a startup that is just finding its feet. Actually, it’s not that hidden, it’s pretty clear – your job is to do what your customers want. When you do, they’ll pay you, and your salary will get paid. The alternative path (thinking that you know better than your customers) is a dangerous path.

    I know this seems hopelessly over-simplistic. And of course there’s more to good marketing than that. But it’s about making a choice early on – do you take the red pill of reality, accepting that your customers know more than you, that your job is, fundamentally, to adapt to their needs; or the blue pill of disillusion – that you know better than your customers, that you can “educate” them on their needs? I think the answer is reasonably easy, but why is the pill so hard to swallow?

    I’ve just come back from the Sirius Decisions Summit in Vegas. A great event, full of excellent speakers and real insight, as well as some great vendors (6sense was my favourite this time – worth checking out). One of they key messages that I heard repeatedly over the three days was the transformation of organisations from product-centricity to market-centricity. Again, that sounds banal – what does it really mean?

    It means a number of things:

    1. Your strategic decisions start from the needs of different groups of customers. From there, you work out the most profitable segments, and then what product work to do. You don’t start from your current product and see who needs it.
    2. You focus on the people who value you’re offering most (“All customers are equal, but some are more equal than others“). My favourite quote was from Lisa Singer – “The best development teams work on the things that the are most valued by your most valuable segment”.
    3. If you don’t know an answer, ask the customers. Assume the (aggregated) customers know more than you.
    4. Build your planning cycle from the needs of customer segments inward, rather than starting from your product, and building out “The plan for the product”.

    There’s also something else though, that they didn’t mention – and that’s about how we develop our offerings, and how we adjust our course as we get feedback.

    There’s a lot of online debate about what Agile development still means, so many years after the manifesto was published. For me, the clue is in the name. It’s not about speed, it’s about the ability to change direction (based on customer feedback!). It reminds me of this quote from Warren Buffett, way back in 1989, talking about ‘institutional imperative’:

     (1) As if governed by Newton’s First Law of Motion, an institution will resist any change in its current direction;

    His point, that he makes elsewhere, is that organisations struggle to change direction, once on a given path. It’s reasonable – you’ve thought about your next steps, you have a vision, you don’t want to flip-flop. You don’t want to look like you don’t know the answers.

    But what if the customer says otherwise? What do you do if you go out with v0.0.1 and 78% of customers say “You’re wrong – we don’t want this”. Do you stick on your current path, or do you pivot?

    This comes back to the humility of marketing, and starting from a belief that the customer is always right. Mark Ritson puts it well here – https://www.marketingweek.com/2018/04/03/mark-ritson-marketers-data-privacy/. That our job as marketers is to ‘listen’ and ‘serve’, not to ‘convert’ and ‘educate’.

    What does this mean practically? I always thought Jeff Bezos’s insistence on the “Empty chair for the customer” was a bit cheesy. But it’s not – it’s genius. It reminds you that, in every single discussion you have (whether it’s about a product feature, an advertising campaign, a sales tactic, an invoicing email, anything), you should always be referencing the customers’ point of view – it’s so easily forgotten.

    And of course the other way is to do it for real. How often do you talk to customers? How often do they visit your company? How many do you know? Personally? I have a rule-of-thumb that time spent with a customer is never wasted time. You always learn something, and even if you don’t, you do (for example, that many of your customers just want to buy and use your software, and not talk about it much! This is insight).

    But lastly, as Mark Ritson points out, you have to start with humility. Once you accept that your customers know more than you – because they’re paying your salary – you’ll find it much harder to fail in any endeavour. At the very least if you’re doing what customers want, there’s a good chance you can build a business on it in the long run.


  • To learn about the “Buyer Process” try buying something

    To learn about the “Buyer Process” try buying something

    I guess this is more a post about sales rather than marketing per se, but still – understanding buyer journeys and how you can help at different stages is an important part of the marketing role, particularly when the sales cycle is complex.

    I’ve read quite a lot about marketing funnels – how customers at different stages of their journey want to hear different things from you – so you need to interact with them in different ways at different stages. But it’s always felt rather theoretical – it looks good on paper, but does it translate in to the real world? Of how people actually interact with your company? Or is it just for nice PowerPoints?

    In the last few months I’ve experienced being on the other side – i.e. actually buying something – four different times. And all at similar price points to my company’s offerings. It’s been really interesting being the recipient of marketing (and sales) output from these four different companies. I’d say two of them have done a good job, and two have done rather poorly (both in terms of sales and marketing).

    Rather than name names, I’ll just list the things that I think the two good companies did well and not so well. Most importantly though, it was only by experiencing these processes for real – i.e. not on a PowerPoint slide – that I really understood the impact on the potential buyer. My top-level conclusion was that it’s very easy to undermine your product with poor marketing and sales, and most of these things were pretty obvious.

    Anyway, here are some of the things sales folk and marketers did well and poorly:

    1. Listen to the buyer, and adjust as you go along. This is the biggest one for me. I kept re-hearing things of which I was already convinced. A lot of marketing collateral, messaging and content is targeted near the top of funnel – “We’re just trying to get people in with a high-level aspirational message, to get the lead numbers up”. This is fine, but if I’m already on the phone to you, then I’m convinced of stage 1. A couple of times I was sent collateral introducing me to the company – but I already knew who they were and what they did! And worse, these were repeated at the top of every sales call. If I’m talking to a sales rep, I want to talk detail, functionality, price, engagement plans, PoCs, that sort of thing. I don’t want to watch a 10 minute brand presentation. Again. The best presenters jumped straight to the point in presentations and calls, not repeating old messages, and recognising that I was already convinced they knew what they were doing.
    2. It’s not just about functionality – I’m buying the company as well as the product. The best two companies start out with their company pedigree – how long they’ve been around, who their customer base is, even who’s on their board and who’s invested in them. When I know a company is run by the best in the business, and they have a long runway ahead of them, I’ll take them seriously. If I get a sniff that this is a start-up run out of someone’s garage, I’ll run a mile.
    3. Product vision and roadmap are key. Again, the best sellers presented a roadmap for where the market was going, how they understood the market infinitely well, how they would be providing functionality now and in the future (read “years”). These investments are always long-term and I need to know that the company has a vision of what’s coming and that they understand the market better than me. And that they’ll create product to match!
    4. Case-studies and big reference customers are really useful. The best sellers opened with “By the way, we’re currently being used by [insert long string of companies we’ve all heard of]. Do you want to talk to any of them?”. Immediately removes any fears I have that this is a two-bit organisation.
    5. Professionalism. Perhaps I’m repeating the same point here, but there was a marked contrast between the professionalism or “grown-up-ness” of different organisations. From the way people talk to you at a booth, to the way they run presentations. This was also reflected in the tone of the marketing material. I’m buying grown-up products, not toys for my kids! Some of the material was “fun” but expensive marketing software is a serious business 🙂
    6. Dump the superlatives. It’s a minor one this, but every time you use the phrases “best”, “unique”, “incredible”, “leading” and so on, it doesn’t mean anything. You need to use more descriptive and meaningful adjectives in your collateral. For example, if something is described as “The most complete database of prospects for …” then that means something – it means that there’s a good chance the database has the most entries and covers most of the market. All to be validated, but still good. However if it’s described as “The best database of prospects for …” then that doesn’t mean a thing!
    7. Great and intelligent objection-handling is key. By far, the biggest differentiator between good and bad was the ability of the sales person to listen to my objections and handle them well. Two examples:
    • How to do it properly. Certainly for one of the purchases I had some quite complex and internal reasons why I couldn’t proceed to do with priorities, timing that sort of thing. Rather than ignoring those objections, the great salesperson listened and came back with a plan for how they could work with me to alleviate my time pressures (rather than add to them), and remove this roadblock – a great piece of work that really helped the sale.
    • How not to do it. In contrast, with another seller in a similar situation (i.e. I was blocking based on various complex reasons), he just repeated the sales pitch again. I.e. ignored my objections and just kept hitting me over the head with the same slide deck. It didn’t help..

    It’s also worth pointing out that, if part of your role as a marketing department is to represent your company in the best possible light – i.e. to provide the best possible customer experience for customers – then your sales people are leading the charge on that front. My “customer experience” of all of these four companies was primarily determined by my interactions with sales people – and there was a marked contrast between the good and the bad. I like to end on a positive, so here are the traits of the great sales people (much of which follows from the points above):

    1. Knew their product. Not to the same level as their technical colleagues, but to some depth.
    2. Responsive. I.e. replied to emails and phone calls. So basic, but incredible how hard it was to get in touch with some people.
    3. Professional. I’m not your mate 😉
    4. Great at objection-handling – see above.
    5. Had my interests and goals at heart. The best took time to understand what I was trying to do.
    6. Grown-ups. This isn’t an ageist thing, but – I don’t like being sold six-figure pieces of software by kids straight out of college. A few years experience really shows in the call.

    So, if you want to really understand what the “Buying Process” actually means in the real-world try it out. Of course, if you really want to be sneaky, try it out on your own company! Or get a friend to do so. Hopefully you’ll be impressed. But it might also highlight where you’re dropping the ball or using inappropriate marketing at different points. Worth a try.


  • You’re applying Marketing Theory, But You Don’t Even Know It

    You’re applying Marketing Theory, But You Don’t Even Know It

    I love this article from Helen Edwards – about the need to understand marketing theory but then the need to apply it to the real world. Theory without execution is just an indulgence, a wholly academic pursuit. But if you’re executing well against a poor strategy, you’re just peddling fast in the wrong direction.

    She provides some great examples towards the end, of tools to help you link theory with practice. Reading through the articles mentioned, I happened upon this HBR article from 2004, from W. Chan Kim and Renee Mauborgne, about Value Innovation. I started reading with some scepticism – I mean, what does a term like “Value Innovation” even mean? All sounds a bit vague and hand-wavy.

    But as I read through, a strange feeling of familiarity came over me. The idea that, in a highly competitive landscape, you need to move away from just making incremental improvements to match your competitors. Instead, you need to break free from the pack by staking out a new market space – re-defining the market – based on a deep understanding of what customers truly value.

    So far, all so academic. What does this mean in real terms? How does this relate to what we do at Redgate? The reason this felt familiar, was a realisation that this was how Redgate had been working for years, but I doubt we even knew it!

    There are many ways of running a software product company, all have their pros and cons. At Redgate we invest heavily in product development. But I don’t mean just in numbers – really the investment is in quality. Finding great software engineers, designers, product managers, coaches, tech leads and so on. It’s a constant source of worry – where do we find these great people? Are they unicorns? Have we exhausted the pool of talent in Cambridge?

    But why worry about this so much? Why do we need such an exceptional group of people (almost) all of them co-located in Cambridge?

    I believe the answer can be found in Kim and Mauborgne’s Value Innovation theory. Copycat development – where you just keep an eye on your competitors and do the obvious things to an existing product – is pretty easy to run. You don’t need the best people in the country to do this – just keep an eye on the competition, see what they’re doing and try to do a slightly better version of that.

    But, as pointed out in the article, this can be a downward spiral – there’s downward pressure on price, as all products become decidedly “average”, none of them truly catering to the needs of customers.

    What if, instead, you spent your time analysing the jobs to be done by customers? Taking an evidence-based approach to solution design, talking to customers, truly understanding what they value, so that you can build an innovate solution to their problems (rather than just what your competitors thought was important)? What if you focussed on really solving customers’ problems, finding new, better solutions?

    There are some great articles on the Redgate Medium feed – Ingeniously Simple – such as this one on Evidence-Based Decision Making. The benefits of this sort of approach are hard to quantify but it is, for me, a great example of how a great marketing theory is being applied in the real world: the market strategy for the company is one of Value Innovation – finding the true best solutions for customers – and that’s a lot of hard work. It requires the best people in industry, and they’re hard to find.

    But we hear the results from customers all the time. We survey our customers constantly about “Where did you hear about us? Why did you end up with Redgate?”. And our biggest source of leads? Referrals. We then ask them, “Well why would you recommend Redgate?” and the answer is always a resounding “It’s the best product there is!”. Of course a customer wouldn’t describe this as “Redgate provides the most innovate solution that matches the value I seek”, they describe it as “You have the best products” – but that only happens when you invest in understanding the customers’ needs completely, and innovating on the solutions you provide. Great marketing theory, put in to practice.

    As an aside, this makes it more difficult to marketers to understand marketing sizing and addressable market – Redgate rarely fit in to the categories described by analysts, as we try to break these categories (as described in the Value Innovation article, Kinepolis ignored the existing categories of “ordinary cinema” and multiplex, and created a new category of megaplex, designed purely around an understanding of what the mass market valued). But it’s a small price to pay for having the best solutions in the market.


  • Your Primary Job as a Marketing Leader is to Prioritise

    Your Primary Job as a Marketing Leader is to Prioritise

    I’ve just finished the excellent Complete Guide to B2B Marketing by Kim Ann King. It’s very “List-ey” – it’s full of To Do lists (“Want to figure out your budgets for media spend? Here’s a 7-point list of how to do it”), which I really like. Many marketing books are rather waffly and vague, so a practical guide is always welcome.

    But, here’s the rub – by the end of the book it would be very easy to feel completely overwhelmed by the list of things you need to do to be running a world-class marketing organisation! From reading the book you’d be left with the impression that you must be doing all of the following:

     

    1. Fully integrated web, marketing, customer and predictive analytics
    2. Implemented full experimentation and optimisation platform
    3. Full marketing automation
    4. Advanced personalisation and targeting across all channels
    5. Complete oversight of the marketing funnel from out-of-funnel to leads to MQLs to SQLs to closed
    6. A clean, de-duped and pristine CRM
    7. A full inbound/content strategy
    8. Deep and extensive planning cycles from data to goals to strategies to tactics to results and back round again – carried out quarterly
    9. Segmentation, positioning, messaging, buyer personas and so on for every product group and segment
    10. A Brand awareness plan for new markets
    11. Demand generation activities across all stages of the funnel
    12. Full retention marketing plan for your “existing customer” segment
    13. A plan for organisational enablement for all of the above including budgets, staffing, forecasts
    14. On top of all this, keeping on top of new developments in marketing, self-education and so on

    ..and this is just scratching the surface. In fact she’s very open in the first chapter about how the role for anyone in marketing today can feel overwhelming, that there is so much to keep on top of.

    How do you cope with this? All of the things above seem vital, important – how can you be doing your job properly unless you’re doing all of the above?

    I’ve also just re-read Porter’s great article on Strategy (https://hbr.org/1996/11/what-is-strategy – you need an HBR subscription to read it unfortunately). One primary point he makes is to ask the question “What is a strategy?” and one of his tenants that qualifies an activity as “strategic” is whether or not you are making choices to not do something. For example, if at your business you want to “Improve the reporting system so that we can see product performance better” – this might be a big project, but you’re not choosing to not do anything. No-one would choose to “Make reporting worse so that we can’t see what’s going on”. All you’re doing is improving your business effectiveness.

    However if your company had two products, A and B, and you said that “We’re only going to sell product A going forward and stop selling product B” – that’s strategic, because someone else could choose to sell product B instead (or stick with both, or neither).

    How is this relevant to Kim Ann King’s book? You have to make choices. You have to make choices about which elements of marketing activity you are going to focus on, and to which you are going to say No. This is your job as a marketing leader, to prioritise and say no to things. Anyone can take the list above and propose “Doing all of the above”, but that road leads to a lack of focus and burnout.

    How do you choose? It’s the simple, but difficult job of understanding your business, and where your problems are. To take an example from my own organisation, Redgate. There’s a section in the book about “Building a community site, with content to build trust and inbound for your brand”. But, we are fortunate to already have this (a couple of sites, http://www.sqlservercentral.com and http://www.simple-talk.com). It’s not that these can’t be improved, but is it a priority to start a new community site at Redgate? No it isn’t.

    This is an easy one though – when you’ve already ticked something on the list. What about all the things you haven’t done yet? This gets more difficult, but then this is your job. Should you spend the next year cleaning and de-duping your CRM system so that you can implement advanced personalisation and targeting? Or re-branding your company? Or building analytical capability for the future? Or implementing a MarTech platform? Or experimenting with new channels?

    The job is to diagnose – what are your current problems? What is currently holding your business back, your constraints? What work could you do that would move you towards your company goals next year? This latter point is vital – if your company objectives are about growth rather than, say, cost-cutting, or process improvements, this suggest different activities.

    What’s very important is to recognise the different go-to-market strategy and type of company that you work in, compared to others. Perhaps my one criticism of this book is that, though it purports to be specific to B2B marketing, there’s not enough opinion on what is most useful for B2B marketing, and what’s more relevant to B2C. There’s some (e.g. that LinkedIn is more relevant than SnapChat) and there is more of a focus on lead nurturing through to sales people (more relevant to the high-value/low-volume world of traditional B2B), but there isn’t quite enough direction on “This activity is popular about B2C marketers, but really is a waste of time for you”.

    This is where your job comes in – what sort of B2B org do you work at? At Redgate, really we’re B2BC. We’re absolutely selling software to businesses – there’s no way Jo Public is interested in SQL Server comparison tools. But, where most traditional B2B orgs are high-value/low-volume with all that entails (low lead volume, high ATV, significant sales nurturing, multiple buyer personas in each org etc etc), we are much closer to B2C in our business model – low ATV, high volume, mass (1:many) digital marketing and so on. So for us, certain activities are more relevant than others. As an example, most marketing automation platforms use a nurturing model based on slowly taking leads through a number of stages (awareness, leads, MQLs, SQLs etc), using personalised content – based on in-depth data and analytics for different customer segments. This is needed because often B2B organisations have complex offerings that need to be explained and “sold” to companies, so that they understand the benefits of spending $500k with that vendor.

    But – what if this isn’t you? What if you sell software for $400 that, quite frankly doesn’t need explaining in this way? What if it’s pretty darned obvious what it does, and the free trial tells the end-user everything they need to know? In that scenario, is it worth investing millions of dollars in a new marketing automation platform? What’s the uplift going to be – will you ever get payback?

    It’s these hard decisions that you need to make to ensure you and your team don’t get overwhelmed with new activities. You’re making strategic decisions when you decide not to do one thing and instead do another. May be you put marketing automation off for a year (despite the overwhelming message from the industry that you have to be be doing it ) and focus on finding new customer segments instead? Maybe for you, it’s about starting a significant community platform this year, and everything else can just keep ticking along?

    Once you’ve decided, there’s then the equal challenge of leading the change through your organisation. Every idea (automation, branding, content, channel, sales support etc etc) will have its advocates in your company. You need to hold on to the logic for why you’ve chosen A, not B, and try to get that adopted through the company so that everyone is working to the same goals. The strategy is just the start of the process…

     


  • If a Brewery Can Innovate, So Can You

    This weekend we went to Southwold and Aldeburgh – two of my favourite places in the UK, for various reasons. One of these reasons is the Adnams Brewery, based in Southwold. It’s been going for over a century and has always produced wonderful beer (as well as other drinks).

    But a few years ago I noticed a new range of beers in the shop. It’s a new brand – “Jack Brand” in fact, and includes 4 or 5 beers, all of which I can happily say are really interesting, new beers. They are to an extent riding the wave of “Craft beers” of various sorts, the beers are often quite hoppy and will appeal to customers who like that sort of thing (including me), but that’s not quite the point.

    The thing that’s most impressive is that a company working in what is generally perceived to be quite a staid industry has managed to do some interesting commercial innovation. And they’re a small company too, I doubt they have enormous research departments to look in to this sort of thing.

    They’ve innovated in terms of the product (they’re not just re-labelling something else, but have come up with new, different tastes) and the brand. I also like the names of the beers (e.g. the one pictured – “Innovation IPA”!).

    And I’m pretty sure it’s been very successful – I’ve seen the beer in a lot of pubs in Cambridge and it seems to be doing well.

    So, if a brewery can do it, why can’t you? If they’ve managed to get their marketing team and their brewers together and come up with something this successful, what’s stopping you from doing the same? Of course there are 10s of thousands of articles and books on how to get the innovation process going, how to manage it in a standardised way and so on. But I’m not sure it’s that complicated – I’d be surprised to learn that the small group of people at Adnams spent months instigating a complex innovation process at the office.

    So the question is, what’s stopping you re-creating something like this in your business? A new representation of an existing product? A new, innovating way of using your product a different way? A new pricing system (monthly payments, daily even, free for non-commercial etc etc!?)? A radically cheaper, stripped down version for a different market? Or a much more expensive version with added services for a different market? Different brands for different groups of customers? Combinations of your products for different people?

    And the list goes on – many of these innovations are easy to implement, but they’re often not easy to make happen, particularly in larger organisations.

    And maybe that’s why Adnams managed to do this so easily – they’re a small company, presumably with little red tape and a culture where these things can happen without too much pain. What can you do at your org to foster this sort of activity? Do you block new ideas or nurture them? What can you do to help?


  • Your People Are Your Customer Experience

    885-1We went to Milton Keynes today (school holidays – where else would you want to go?) and there were two examples of what I’d call, using marketing jargon, “A great customer experience” for the children. Listening to them talk about it afterwards, it wasn’t just something to do with the actual places we went to, and what we did. Most of what they raved about was the people who worked at these places and how friendly they were. So their experiences were far more memorable for the companies’ employees, than their products.

    The first was a place called Jump in, a trampoline extravaganza, and the second was the Lego Store. Now both places are great – well, for the kids at least. The first has a room full of trampolines, trampolines on the wall, basketball trampolines, dodge ball – with trampolines – and so on. Obviously I didn’t go on, but the children had a wild time. When I asked them about it afterwards, they did of course say what they did and what they played on. But very quickly they started talking about the people who worked there. They knew their names, and were relating how they pulled funny faces, interacted really well with everyone, obviously were enjoying themselves too and so on. It made what was, a 1 hour distraction, in to something really funny for them to take away.

    And then there is the Lego store. Of course you know what you’re getting here – the best product ever put on this Earth, and every version of that product in the same place. It’s only the mega-prices stopping me from buying everything supermarket-sweep style. But again, once we’d left, there were two things the children mentioned unprompted. Firstly, the guy who worked there, who went round the back and felt all the “Minifigure collection” packets to find the two specific characters that they wanted (he had a technique which he explained). And secondly, the friendly lady at the till who chatted to one of them about the minifigures he’d made up himself. Both had gone beyond the call of duty, and the first in particular was great. I’m not sure he’s supposed to do this (Lego go out of their way to make sure the collection packets are indistinguishable), but what great customer service – and again what a great “Experience” of Lego that has nothing to do with the actual product.

    I thought of this, because when looking at your own customer experiences, for your company, it’s easy to focus on the easy things to fix. Things like the branding, whether there are relevant sharing buttons, if the wording on the website is upbeat and friendly. But the harder things – such as whether your support and sales people go out of their way to help; whether your event booth people are still going strong even after four days of standing; whether your interviewers for job openings do a fantastic job making applicants feel at ease – all these things are much harder to fix. The issue is, these are the things that people remember – the things that people “take away” as their experiences of your company. Of course it also extends to things like Twitter – who at your company reacts to a customer complaint on Twitter – is he/she your most friendly and smart person who knows how to turn something like that around?

    As I say, I think these are things that really have an impact on customers – and they take training, great recruitment, strong monitoring and a great company culture to make sure these works. So well done to both Bounce and Lego – you made an okay day in to a great day for the children, and we promise to be back soon!


  • People. Customers. Action.

    I was mugging up again last week on the McKinsey 7-S Model, now pretty old, but I still think a great framework for looking at organisational effectiveness. All very interesting, but then I found the post that Tom Peters wrote about the book decades later and found a quote that I particularly liked:

    “You could boil all of Search [the book, “In Search of Excellence”] down to three words: People. Customers. Action.”

    You read further and then find that Peters actually wrote a piece years later undermining the need for a business strategy at all! Controversial when you work for a strategy consultancy, but ho hum. What he was really saying with that succinct phrase was “Get great people motivated to succeed, keep close to your customers, and get on with it! (i.e. a bias to action)”. Sure you might have a great business strategy, an okay business strategy, or no strategy at all – but that’s less important than having a motivated work force, knowing your customer and actually doing something.

    A lot of later literature on company performance has evolved from some of these principles that Peters and Waterman  professed. For example, Jim Collins’ “Good to Great” is an obvious descendant. And the now well-known quote that “Culture Trumps Strategy, Every Time” is rooted in this perspective.

    And it’s a perspective I love – there’s a real danger with modern businesses to think that the culture of your organisation is just some dull fluff stuff to do with foosball, free cokes and not having to wear a tie. But it’s not – the way people work, the way they like to work together, the behaviours that are encouraged or discouraged, whether the right people get promoted or demoted, the interview selection criteria, the management structures and goals – all this is, for me, even more important than the specific strategy plan you happen to be following this year. If you can get your people aligned with that strategy, then the multiplicative effect of that can be enormous. If you ignore your people, then your strategy will come to nought.

    A nice analogy was given to me a year or so ago about these elements of organisational effectiveness. Your company performance is a like putting on a play. You have:

    1. Your Environment: where your theatre is based. There’s little you can do about this, though you need to keep an eye on what’s going on in your neighbourhood, and adjust accordingly.
    2. Your Business Strategy: the script. This is what you’re actually doing, working on.
    3. Your Capability: the actors who are delivering the play.

    The point is – you can have the best script in the world, but if your players suck, or aren’t motivated towards excellence, the play is going to suck either way. But of course it’s not just about the players sucking, it’s actually about their motivation to make the play great – yes, they need the skills, but do they form part of a trusted team? Are they given the appropriate autonomy? Do they have clear goals? In essence, are they supported by the organisation, or held back?

    It’s this sort of question that you need to look at if you feel that your strategy isn’t quite going as swimmingly as you thought. Maybe it’s not the strategy, maybe it’s the support structure for your people and the culture you’ve created? Or maybe you drifted too far from your customers? Perhaps you’ve been blocked organisationally so that you couldn’t get on with your work? (On the last of these: there’s one thing I can guarantee – if you don’t do a piece of work, then you certainly won’t have any impact!)


  • Human Beings are Holding Back Machine Learning

    Machine Learning (ML) and AI are big topics right now. Poor Lee Se-dol has just been beaten by AlphaGo – a machine put together by Google/DeepMind and there are numerous other examples in the news.So everyone is interested, and everyone wants to do more of it. Whether you work in marketing or any other discipline, there’s an expectation to be harnessing the power of ML and AI algorithms to provide insight, models and intelligence to applications.

    So, what’s holding us back? Is it the tech – it’s too expensive or not available? I don’t think it’s this at all. It’s been possible to implement ML for decades. You can use R, MATLAB, SPSS, SAS or a ton of other tools  or if not those, Excel or even write your own (I have my own Mickey Mouse clustering app here as I got so frustrated using others’ tools). And people like Microsoft are making the tech more accessible all the time (e.g. Azure Machine Learning). So I don’t think that’s the problem.

    My opinion is that the biggest shortage is in people who really understand ML, and can use it properly. And this is certainly what I’ve seen at customers and companies we’ve spoken to about this problem – they know they want to do it, but they just can’t get the people! Where are these mythical data scientists? Do they even exist? Could we afford them, even if they did? These are the questions we hear.

    The key issue here is that, with ML, a little knowledge can be a dangerous thing. One of the problems with most ML algorithms is that they are complicated. Or at least, you need a significant level of understanding to know what you’re actually doing. If you take a dataset and run a Support Vector Machine over those data points in an attempt at classification, do you really know what the output means? When it gives an unexpected outcome, do you know why? Without jumping to easy (but often wrong) conclusions? Even something easier like k-means clustering – what do those clusters really mean? If there are three clusters, one big and two small, is that really saying something about the fundamental nature of your dataset, or is it just an anomaly because you haven’t transformed your data correctly beforehand?

    These are difficult questions – having the tool available to, say, run a k-means clustering algorithm, is only 10% of the battle. Knowing what to do with that tool is the real issue; and how not to present something to your boss that any smart cookie could undermine in 10 minutes.

    So finding these people is hard. It’s made even harder because I’ve often seen over-inflation with what people mean by “Machine Learning”. In my experience, someone who claims to “Know statistics”, is likely to be comfortable with value/volumes, perhaps a “mean” or a “standard deviation”, but not much more. Those who say they “Understand ML”, often have a good grasp of statistics, but struggle, when things get tough with machine learning. And of course, if you claim to “Know AI” – understanding a Support Vector Machine doesn’t mean you can build the next Skynet!*

    So it’s even tougher finding people who really know their stuff. Maybe it’s just about money – supply and demand. If these people are hard to get, and you’re competing with the City to get them, then maybe you just have to pay the asking price and that’s it.

    Or of course you can pick up a book and start learning! There are lots available – my favourite is Machine Learning and Pattern Recognition by Chris Bishop. A bit older now, there’s a lot in there, and you still need to implement this stuff, but it presents the material in a clear way and, most importantly, it helps you understand what you’re really doing with these algorithms. So at least your conclusions will be based on a deep insight, and not on guesses based on pretty looking graphs..

    * I also have a “Skynet” project in GitHub. Progress is slow.


  • Why You Can’t Pivot as Quickly as You’d Like

    Theamerican-sniper_612x380_1re’s a great scene, towards the end of the film American Sniper, where Bradley Cooper’s character has to take a shot from over a mile away from his target.

    But the point is, there’s a long time between the point he takes his shot, and when he finds out if he has hit or not. It’s not like shooting a pistol from 20 yards – you have to wait to see the results of your efforts.

    One of the authors who has been influential at the place I work is Jim Collins – in his book Great by Choice, written with Morten Hansen, he describes how you should “Shoot bullets before cannonballs”. What he means by this, is that in a world of uncertainty, full of assumptions, you need to test your ideas [with the market] with small bullets first (i.e. small investments of resource). Wait to see what hits, then go in with your cannonballs when you know what will work (rather than wasting cannonballs early on).

    This is a great idea of course – why start a team of 100 people on a project when you don’t know if it’s a good idea or not?

    And this is great, when you’re running a startup using a SaaS model and the Lean Startup principles – promote an offering on your site on Monday, check the feedback metrics Tuesday to Wednesday and pivot to a new proposition by Friday, if it’s not working out.

    But the issue is that, in my experience in the world of B2B, that feedback mechanism takes more than a week to work. Hopefully you have a great Agile team, producing a minimum viable product as soon as possible, getting early ideas out to customers quickly. And you’re doing everything you can to get qualitative and quantitative insight from those customers. But is this enough information to make a pivot? Do you really know if your bullet has hit home or not just yet? There are a few issues that make this process slower than we’d all like:

    1. As mentioned, the speed to get a first version out. The principles of Lean Startup are that you shouldn’t wait to have a fully working version before trying with customers. But I just don’t think you can get accurate, actionable feedback for an idea based on sketches on the back of a napkin. Particularly if you take in to account the points below.
    2. Numbers – we’re not making changes to Facebook here. Each new idea isn’t getting seen by 5 billion users. If you have billions or even millions of users, then it only takes a tiny percentage to react to your new offering to get statistically significant data on what you should do next. But what if you only have thousands of customers? Or hundreds? Most of these people have day jobs and won’t have time to tell you whether your new idea for an “Automated Dog Grooming Service” (I heard this a few weeks back) is a good one or not.
    3. Money – the true test. Someone looking at your sketch and saying “Yeah, looks pretty good” does not a sound, profitable business make :) If you want to test if people really like your idea (i.e. they’re willing to give you dollars for it), then you need to start selling it. And that involves sales cycles, proof-of-concepts, purchasing processes and so on. Particularly of course if you’re selling for more than $10 per month. If you want to test whether your $100,000 proposition is a winner or not, you’re not going to find that out in a week.

    So these things mean you have to wait for more than a few days to see if your bullets are hitting their targets, before you load up the big guns.

    But this is a problem – the issue is: when do I know if my bullets have missed? I started the project months ago (fired the first volley – not sure how long this analogy will last…), and I still don’t know if I’m shooting in the right direction or not? What do I do? Change target now? Wait and see? What if it takes 6 months, a year even before I know if the idea is good? Do I just carry on regardless?

    This is a real problem – kill a project too early, and you could be clutching defeat from the jaws of victory. Keep it going unnecessarily and you’re just burning money (and teams, that could be used elsewhere for more profitable gains). But how do you decide, when the evidence isn’t in yet?

    I think there’s a few things you can do in fact:

    1. Good ol’ fashioned product management. Is there a market for this product? People paying money for similar services? Who’s the competition? I love this tweet: https://twitter.com/justinkan/status/614904706624720896 – there’s basic work to be done showing that there’s a market for your service, people are willing to pay for that service, that the incumbent isn’t unmoveable and so on. If you have confidence you’re addressing an existing market, with a better product, in a environment where you have reach and brand recognition, you should have confidence of success that can take you through the low points.
    2. Being honest about the feedback you are getting. With a new idea I, personally, think that unless people are chewing your arm off to get something (“This is magic!”, “How did I survive without this!?”, “Please can I give you some money for this?”) then you need to be pretty cautious and honest with the feedback you are getting. Often we know a set of close customers really well, and this is great, but those close relationships can make it hard for said customers to tell you the truth about your new idea. You present something to them, you can’t help but convey your sparkly-eyed enthusiasm for this new miracle of software that you’ve created, and few people have the heart to tell you what a piece of crap it is. So despite the issues outlined before, you do need to be taking your idea to as many people as possible as early as possible. But more than that, you need to listen to them, encourage “constructive” criticism, and when 19 out of 20 people respond with “Meh”, hear that, and think about drowning your puppy.
    3. Hedge, intelligently. Have a fallback, be thinking about alternatives, alternate uses for the technology and so on. If you do get to, say, 6 months in to your project, and are beginning to have serious doubts, this shouldn’t be the first time you’ve thought about a bad outcome. Really you should have been considering the bad outcomes from day 1. I like to think of this as “Schrödinger’s Cat Thinking” – you don’t know, on day 1, whether the cat is alive or not, but you should be thinking about what you do in either circumstance. Perhaps there’s a way of developing the product so that it can be easily switched to another market? Or sold off to someone if it doesn’t fit with your business? If you’re a sniper, waiting for your shot to hit home, you should have a plan of what do do next, regardless of the outcome [by the way, I know literally nothing about such military affairs, so I have no idea if this is the case or not – but it seems reasonable]. In essence, if you decide to pull the plug, you should be ready to go with “What next?”, not sitting there shrugging.

    But the reality is that, even if you take these things in to account, you’re likely to have a long period in limbo, not sure whether you’re on to a winner or not, not sure whether to kill the project or not.

    And this is where leadership comes in. What effect would it have to go to a team and say “Well, things are looking okay – I’m not sure, but there’s a chance we might kill your project at some undefined point in the future. Still, off you go – make progress!”? All you’re doing here is undermining that team, leaving them in a state of uncertainty, likely to seriously damage productivity.

    Instead that team needs your support and backing. And they need to hear it from you. Yes, you may be only be 60-70% sure that what you’re doing is going to pan out, but internalising that uncertainty is part of your role – it doesn’t help to transmit your worries to everyone around you. So if you have a 6 month period where the project is in the balance, better to assume that project will succeed – and push it hard – than to dither and create a self-fulfilling prophecy of failure..


  • Better to be in the Arena Fighting…

    (c) Paintings Collection; Supplied by The Public Catalogue Foundation

    A place I used to work, perhaps 10-12 years ago, had (what I think, now) was a strange custom. Every Monday morning the whole company would get together to go through everything. There were around 70 of us, at the peak, and we would all stand around from about one-and-a-half hours going through sales, marketing, development, ops, specific projects and so on. This was tiresome, to say the least. I had this slight sense of dread each Monday morning as 10am loomed, and we all started shuffling to the space “around the boss’s desk” (difficult with 70 of you..).

    Anyway, thinking back, the main points I remember from these meetings were:

    1. There were pastries every time – and you had to position yourself well, to get the “good ones”. Other than the specific point I make later, this is almost the only thing I remember from, probably, 100-150 hours of my life.
    2. The reviews from sales consisted of trying to sell (to us), why the latest lead was inevitably going to lead to untold riches. When this didn’t happen (months later), rather than updating us on “I’m afraid that dead cert didn’t cross the line”, instead these deals were conveniently forgotten. After a year, you begin to get cynical..
    3. Development – every week the same: “We’ve done an extra week of work on product X. Nothing really to show”.
    4. Ops – incredibly, almost every week, the update from ops wasn’t about servers, our technical infrastructure etc, but almost always seemed to be about desks and chairs – that we were getting new ones, that we were re-arranging the current ones to suit new starters, that we’d “had a rethink about the larger desks” and so on. An extraordinary waste of time.

    So we’d endure these sessions every Monday morning – it filled the time until lunch – at the end of each session would be the CEO’s rousing finale, where he’d fire up the troops ready for the week ahead. This generally wasn’t great and, to be fair, how do you come up with something new week in week out? Particularly in quite a slow moving business where not a whole lot happened each week? “Go dev team, continuing to fix that next tranche of indecipherable bugs!!”.

    But, there was one speech which I do remember, and still remember to this day. We’d been going through a tough period with our investors, questioning our progress, our organisation, our management (how dare they, with their millions of dollars sunk in to us :) ), and a lot of people in the company, who’d been trying to make progress on product, marketing and sales, had had to spend a lot of time dealing with requests for information from these people. We knew we had to do it, but still. We’d also had some issues with journalists, and analysts too, not quite seeing our way on things – whether they were right or wrong, again, it’s an exhausting process, trying to keep these groups happy when you have a day job to get right.

    And it was at one of these Monday morning meetings that the boss stood up and gave a 20 minute oration on the topic of “Better to be in the arena fighting, than in the stands criticising and judging”. This is a relatively well known topic, and subject of such speeches, but it was such an impassioned 20 minutes, painting a picture of us in the company, fighting lions and gladiators (he had a background in the classics) whilst the petty and ill-informed outside world looked on, passing judgement without understanding the problems we faced (fighting lions!), that for once, it did genuinely rouse the company, and left us all leaving that meeting with just a bit more energy for the week ahead.

    There were, in fact, two things that I took away from this event:

    1. The value of a good speech, particularly in terms of timing. Our boss knew exactly what the feeling was in the company at the time (that we were all trying really hard to do something, and were being ground down by external sceptics), captured that feeling and spoke about that topic, rather than something else. And, as I say, I think a background in Classics helps!
    2. The subject itself – I strongly agree with the principle that, it’s better to be having a go at something, however well or badly, making mistakes, learning from those mistakes, trying new things, than to be on the sidelines, passing comment.

    It’s why I’ve never been a fan of journalists or critics – far better to be a musician, putting out an average album, than a journalist critiquing that album. What positive contribution do you make!?

    So, a great speech, given at the right time, with a point-of-view that I strongly support. I just wish I could remember something else from the 100s of hours spent standing around, chewing on Pret-a-Manager almond croissants (definitely one of the “good” pastries)…


  • The Difference Between Management and Leadership

    TheWeatherProjectWhat is the essential difference between “Management” and “Leadership”? Are these, basically the same thing – “The stuff you do when you get “Manager” in your job title somewhere? These are both such vague, all-encompassing terms (perhaps the worst job title for this is “General Manager” – it sounds like you “just do stuff” not even specific to a particular domain!) that it can be hard pin down any sort of definition of each. Also note, very few people have “Leader” in their job title, a lot of people have “Manager”. Why the difference?

    Completely ignoring job titles, which just confuse the issue, I’ll argue that these are very different modes of operation. In essence, Management is about “Things”, and Leadership is about “People”. This is a mild overstatement, but the difference is important.

    What does this mean? To understand this difference, it’s useful to think about some examples of the way the word “management” is used, outside the office – terms like “Pain management”, “Waste management”, “Estate management” and so on. All of these describe jobs that involve looking after processes, performance indicators, co-ordination of activities and so on. I.e. “Things”.

    Leadership on the other hand is a very different job. Again, various descriptions such as “Taking people on a path they wouldn’t otherwise take” and so on, but these can be a little vague. The definition I like, from a course I did last year is “Vision, Team and Communication”. It’s about providing a clear vision of where you’re going, getting the right team together and communicating that vision well. I.e. it’s about inspiring and leading “People”.

    And I think, therefore, that the skills needed are very different. Leadership isn’t about carefully managed processes and KPIs – measurement, recording, project management. That is all in the arena of “Management”. It’s about inspiring people to believe in what you’re doing, communicating clearly what the path is, and so on. You can be fantastic at managing projects, keeping on top of KPIs and so on, but wanting when it comes to inspiring the people around you. Similarly, you might be amazing at bringing your team along with you, and inspiring people – but absolutely hopeless at managing a project, and keeping on top of things.

    I think this is why “Manager” in a job title can be unhelpful. It’s often used to denote someone who is being asked to do both activities – “Manage” everything that’s going on in a given domain in the strict sense, but also “Lead” a group of people. And these tasks are very different – with different skill sets. I’d even suggest these are quite different personality types – management is more attuned to the Introvert type, lovers of process, people who find satisfaction in making sure everything is “In hand” and under control. Leadership is perhaps more appropriate for an Extrovert type – someone who enjoys telling a story, working with people (rather than spreadsheets), talking.

    But there’s an advantage here – and why I think so few have the word “Leader” in their job title. Management is, I think, quite a specific role – you need to assign people to these roles to make sure things get done. “Project Manager” is the classic version of this – a specific job needed to make sure projects are run properly (i.e. “Managed”!). But Leadership is something that can be done by anyone. You can have a new graduate come in, inspire the team with some incredible ideas for the future (“Vision”), help get the team coalesced and flying (“Team”) and is constantly re-telling the story of what’s happening internally and externally (“Communication”).

    Unfortunately, many job titles are confusing. “Product Manager” is a classic example – though some of this job is about “Managing the product”, really a lot of it is about leadership – inspiring a team to work on your ideas and communicating internally and externally about what’s being done.

    So it’s something worth thinking about – regardless of your job title, are you really doing a job of “Management” or “Leadership”? The former is relevant to many people (and the chances are, they do have “Manager” in their title somewhere). But I’d suggest the latter is appropriate for everyone.


  • The Value of Completely Arbitrary and Artificial Constraints

    Anish KapoorAnother slightly abstract post today, though based on very real and pragmatic problems. When working on a project, where there are 100s of different options for things you can do and you’re drifting in to option paralysis, often a manager will use a deadline (for example, an event, or a customer demo) as a way of forcing the team to make decisions and progress – aka “helping the team to focus” :-). But I’ll argue that you can go one step further, and just use completely arbitrary deadlines to help bring focus. Why wait for an event in the real world?

    I’ve previously mentioned Good Strategy/Bad Strategy by Richard Rumelt – a great book on how to create meaningful and useful strategies. One of the core stories in the book is around the moon landings in the 60s: scientists were worried about how they could design a landing vehicle to land on a unknown surface that would survive. This was leading to paralysis where the teams couldn’t progress because there were just too many unknowns in the problem. So, what did the director do, to aid progress? She set what was, essentially, a completely arbitrary constraint, that the moon surface would look pretty much like a desert in the US. What the director was doing here was setting a completely arbitrary constraint – how could she know if the eventual lunar surface was anything like the surface of the desert? Couldn’t she just have been so wrong that all of the work was a waste of time? My view is that it doesn’t matter – what she gave the team was a way of moving forward, getting something done. Maybe it was a waste of time, but better to do something – and likely learn some things along the way – than just do nothing, paralysed by uncertainty.

    There’s another more subtle theme that goes through this book as well – constraints over time. The concept of “proximate objectives” (i.e. setting a short-term objective) relies on a constraint in time – “We are going to achieve this thing in 6 months” (or a year, or whatever). Why 6 months? Why not 9 or 10? Why should your timescales be based on half of the time it takes for the Earth to orbit the sun? Again, completely arbitrary.

    One of the great things we’ve implemented at Redgate is the concept of release trains – see http://blog.red-gate.com/success-weekly-releases-occasionally-dont-release-release-wednesday/ for some more info. This is a method for running an Agile project and representing a backlog, by splitting the work for a project up in to separate carriages on a train. Each carriage represents a block of work which will be released. But here’s where it gets interesting – each block of work (or “carriage”) is a pre-decided length. For one project, this is 6 weeks – so every block of work carried out as part of the project needs to be done in 6 weeks. How can the team work with such artificial constraints? What if the work that needs to be done is 8 weeks? Or 4 weeks?

    Here’s why this works so well – if you’re adding a new feature to a product (let’s say it’s “Allow user to register on the site”) a large part of what the product manager and team have to decide is “How big is this piece of work? How long are we going to take on it?”. And this is a problem – how do you make this decision? How do you assess the importance of the work and stop at the appropriate point, before moving on to the next feature? This is a real problem – before you do the work, you don’t really know how important it is, so when will you know when to stop?

    Now, if we set, what is admittedly, a completely artificial length, to the piece of work we do – say 6 weeks – what does this give us? At least:

    1. A roadmap – we can draw the train (with carriages) on a piece of paper and say, “Here’s what’s happening in the next 6 months – we’re going to do four blocks of work on features A, B, C and D” (four blocks of 6 weeks is approximately a half-year, with time off for good behaviour). So everyone knows what’s coming, internally and if you like, externally. NB: We’re still Agile – nothing is set in stone, we can adjust based on feedback and so on. But you are giving visibility to those that want it.
    2. It forces good decisions in a team – if you want the feature to do everything, then it won’t look beautiful. Or vice-versa – but not both. For example, for our feature “Allow users to register on the site”, well it could integrate with all sorts of authentication mechanisms – Active Directory, 3rd party mechanisms, your own, but it’s not going to do all of those in 6 weeks AND have wonderful usability. The team has to start making grown-up trade-offs – is one sort of authentication okay? Is usability more important that types of registration? Suddenly the discussion is about the real value of each piece of work to customers – and this is good.

    I.e. it gives product managers visibility and a great tool for planning, and it gives teams a mechanism for making good decisions. But primarily it stops option paralysis – conversations like “Well, if we did make it look nicer, wouldn’t that be great?” or “Why don’t we add these other three authentication systems as well?”. It allows you to get on with something, do it, finish it, measure its success and move on.

    Of course there’s a risk – what if, by just adding that one extra feature, you did the thing that every customer wanted and that made the product a success? Well, may be, but two things:

    1. How would you ever know that, upfront? You can’t.
    2. Opportunity cost – what if the next carriage on the train was the thing that unlocked customers? You’ll never get on to it if you don’t get the current carriage completed.

    So I’m a fan of completely arbitrary deadlines – IMHO, don’t even bother looking for a real deadline (or other constraint), just set one at an artificial point in time. The benefits out-weigh the cognitive dissonance caused by working to something that seems somewhat random.


  • Why Complex Decisions Inevitably Take Weeks

    convergenceI often find that, when it comes to make certain types of decision in an organisation, this just seems to take weeks. And if you’re unlucky, this can roll in to months. Why? What is it, a lack of decisiveness? An unwillingness to commit to anything? Lack of identification of a “Decision maker”? Just weakness!? I suggest that it’s none of these things, but in fact inevitable, when it comes to a certain classification of problems. More specifically, with complex problems (definition below), there’s actually very little you can do, but accept the time it takes, and stop worrying.

    Here’s an example, of the sort of discussion that’s happening in offices up and down the country. NB: this is purely for illustrative purposes, and not related to any real events!:

    • Colleague 1 – “We’ve got a problem hiring account managers. Let’s have a meeting to figure out what we’re going to do about it”.
    • Three colleagues sit and discuss the problem and decide “We’re going to increase the salary on the website, to attract more people”
    • Colleague 1 tells the HR team. At which point the Head of HR points out “What do you think our current account managers are going to think when they see that salary on the website? We can’t do this – let’s have a meeting”
    • Colleague 1 and Head of HR have meeting and decide “We’ll increase salary for the role, but we’ll put a very wide range, to keep current employees happy”.
    • New salary range goes on job ad, on site
    • Applications start coming in – from lots of junior people who assume it’s a junior role, from the low starting salary
    • At the same time, account manager colleagues start asking “Why aren’t I getting that top range salary? I did an amazing job last year!”
    • Various colleagues and HR people sit and have another discussion about the salary range, and decide to tighten it up again, to stop junior people applying and to keep employees happy
    • Update page goes live
    • Colleague 1 chips in  – “Hang on, we’re back where we started! We still haven’t solved my problem of getting an account manager – what’s going on?” 

    This isn’t supposed to be an example of the difficulties of hiring. It’s an example of a long decision making process going round and round in circles, leading I suspect, to frustration amongst all of those involved.

    But why has this happened? Why is it so difficult? Fundamentally, it’s because the problem of “How will we get more account managers in the building?” is a complex issue – and therefore has different characteristics to simpler problems.

    The Harvard Business Review article A Leader’s Framework for Decision Making outlines a framework for classifying problems, crudely summarised as follows:

    1. Simple Problems – simple cause-and-effect problems, often with obvious answers. And often something that happens all the time. The example I like best is “What to do if someone comes in to complain about your hotel?”. Is this a difficult problem, requiring a committee of your greatest minds to figure it out? No! Just give the guy some kind words, may be a discount code and keep him happy. It’s a simple problem, and generally “Best Practice” should be applied.
    2. Complicated Problems – again, there is cause-and-effect here, but more expertise is needed to fix the problem. The example in the text is a problem with your car engine. There is a cause-and-effect going on here, but what is it? Can anyone fix it? No, you need expertise and it might take hours to diagnose the problem. Software Engineering can also, often, fit in to this category – okay, you want the website to do X and Y, and it’s certainly possible to do this, but it might take years of experience and expertise to make that happen.
    3. Complex Problems – the key difference between complicated and complex problems is that, for the latter, the domain is simply too complex and unpredictable to undertake a priori analysis and come up with the answer in one shot. There are feedback loops – making one decision impacts other parts of the problem space, which feed back in to the original decision and change the context. In the example above, increasing the salary range on the site causes disgruntlement amongst employees, leading to a revision of the original decision and so on.
    4. Chaos. No-one knows what the hell is going on, and trying to sit back and rationally analyse cause-and-effect is pointless. Your job is to “Stop the bleeding” and manage the problem actively.

    So, our example is a “Complex” problem – and I’d argue that a large number of management problems fall in to this category. Why? Because you’re dealing with people, their aspirations, irrationalities, emotions and so on, and these are unpredictable at best. Or even without the need to take peoples’ responses in to account, many problems still fall in to the domain of the complex. We had a recent process to try and figure out a new pricing structure for our products and suites of products, and this took weeks to figure out. Why? Because all of our products, functionality and bundles are weaved together in a web of interdependency – decreasing the price of product X makes bundle A a more difficult up-sell, but that makes the prices of other products in the bundle up for change, which then affects bundles B and C and so on, and so on. This took weeks to resolve as we went round and round trying to reach a stable equilibrium which made sense.

    So, making decisions like this are always multi-step. And worse, almost always involve lots of different people (particularly in an org where consensus building is important – a different topic, to come!). Many of whom won’t be available at the same time (people are busy), who often need different levels of information, already have different levels of knowledge of the domain space and so on.

    A very large number of problems fall in to this type – where meeting 1 leads to a decision which then affects others, leading to meeting 2, which then affects the decisions in meeting 1, leading to meeting 3 and so on and so on. What you’re trying to do is reach a stable equilibrium point – where, all things considered, most people are kind of happy with the outcome and all of the issues have been considered (many of which won’t have come out till meeting 2 or 3). NB: This is also why these decisions can often feel like compromises – because they are, and the better for it! There is no simple, obvious-to-all answer, a silver bullet which we should have realised on day 1.

    So next time you’re getting frustrated with a decision making process, asking your colleagues “Why is this taking so long? Just make a decision already?” take in to account that it’s likely to be a complex problem which can’t be forced.

    What you can do of course, is create an environment where the process happens as smoothly as possible – are the right people involved at different points? Are there people making the problem worse? Do you have people who can work through complex problems, with poor quality data, and intangible concepts? Can you yourself facilitate the process (rather than jumping in with the magic answer)? On this last point, I like the comment made by Kishgore Sengupta*:

    Instead of saying ‘Don’t just stand there, do something’ your new behaviour should be ‘Don’t just do something, stand there’”

    * I’d like to thank Cambridge Judge Business School for introducing me to these concepts, particularly for the course given by Kishgore Sengupta on complexity – fascinating stuff!


  • How Short Term Data Driven Decisions can be Dangerous in the Long Term

    Jeff Bezos’s letters to shareholders are, of course, famous for their insight, not only in to how Amazon functions, but also for their advice on how to run a certain type of business. One of my favourite excerpts, from the 2005 letter is:

    As our shareholders know, we have made a decision to continuously and significantly lower prices for customers year after year as our efficiency and scale make it possible. This is an example of a very important decision that cannot be made in a math-based way. In fact, when we lower prices, we go against the math that we can do, which always says that the smart move is to raise prices. We have significant data related to price elasticity. With fair accuracy, we can predict that a price reduction of a certain percentage will result in an increase in units sold of a certain percentage. With rare exceptions, the volume increase in the short term is never enough to pay for the price decrease. However, our quantitative understanding of elasticity is short-term. We can estimate what a price reduction will do this week and this quarter. But we cannot numerically estimate the effect that consistently lowering prices will have on our business over five years or ten years or more. Our judgment is that relentlessly returning efficiency improvements and scale economies to customers in the form of lower prices create a virtuous cycle that leads over the long term to a much larger dollar amount of free cash flow, and thereby to a much more valuable Amazon.com. We’ve made similar judgments around Free Super Saver Shipping and Amazon Prime, both of which are expensive in the short term and—we believe—important and valuable in the long term.
     

    What Jeff is saying here, as he has in many of his other letters is that Amazon is in for the long term, making long term market decisions (essentially, that Amazon is taking a market position that it will always be the cheapest, getting cheaper all the time, whether for a book, a baby stroller, a Kindle or 50 TB of cloud storage) in preference to short term fixes. But more than that, he’s saying that even when he knows that a short term (and presumably, very tempting!) decision will make more cash – because the maths shows it – that will be usurped by their strategy to play the lower-price long game.

    This reminded me of a an interesting problem from the world of maths – simulated annealing. Described considerably more succinctly, here on Wolfram, this is method used when trying to optimise a given function, and, because of the complexity of the function, there is a risk of getting caught in local optima, particularly when using standard “hill climber” functions. If a function is too complex, with too many variables to find the optimal solution directly, one has to start from what we know today then use “hill climber” functions to find “What’s the direction I should go in?”. For example, we’re currently charging $x for our product, what should I do next to optimise revenue? Increase slightly or decrease slightly? And if the function your trying to optimise is the “Best price for this particular product”, then this will reach an optimal solution – you’ve optimised when all experiments to change the price just make profits worse. I.e. you’ve used “the maths” to find the optimal solution for this particular problem.

    But this is a local optimisation. If what you’re trying to optimise is the bigger, much more complex function of “What is the best set of prices for everything my company offers?” then the danger of this approach is that you optimise the individual cases whilst de-optimising the problem as a whole. Simulated Annealing as a process tries to solve this problem in two ways. Firstly and most relevant here, is that so-called “Bad” decisions are allowed to be made locally if it allows one to explore more of the landscape of possible outcomes. So, for example, if your product currently sells at $1000 – the hill-climber approach would say “What if I charge $1001, or $999 – which is better?”. Keep repeating this till you maximise profits – may be at $783 for example.

    However, with simulated annealing, you would allow a test which would be “What if we charge $10? Or $10,000?”. Possibilities that seem ridiculous, but what if these experiments take your business in a whole new direction, reaching new customer types you never dreamed of? What if that, in the long term, led to optimising your business as a whole? You would never realise this success without trying these experiments that fly in the face of what the maths is telling you, and letting those experiments run for a while.

    I know, of course, that I’m slightly over-extending an analogy here – in fact what Jeff Bezos is doing is not taking larger, experimental punts to try and jump out of local minima. Instead he has a long term strategy which overrides that – a belief that in the long term, the lower prices for everything is the optimum for his business. A strategy that’s hard to argue with given his success!

    But the point really is that, sometimes, taking a strictly data-driven decision in the short term, though it may show nice charts of increased revenue (i.e. you’ve optimised locally), can have longer term implications that you might regret, if those decisions don’t sit well with the position in the market your company is trying to achieve. If you’re trying to achieve the position of “The cheapest”, don’t increase your prices (see Amazon). If you’re trying to achieve the position of “The best”, don’t lower them (see the Apple 5C). If you’re trying to achieve “Pay as you Earn” (i.e. people pay according to ability to pay), then set an intelligent pricing strategy that caters for all wallets and stick to it – see any Atlassian product, e.g. JIRA:

    This last example is a good case in point. I’m sure it would be very simple to show how increasing the lowest price point here ($10 – that’s ridiculous, how can they make money on that!?) will make more money in the short term. But there’s a long term strategy here based on Life time Value – today’s startups are tomorrow’s big businesses. Get them hooked on the product now and in the future they’ll be buying at the higher price points.

    In the phrase”data-driven” it’s not the term “data” that worries me. It’s the term “driven” – when we are “driven” to decisions, rather than sticking to a long term strategy, instead letting the numbers make the decisions for us. By doing this we’re in danger of optimising in the short term, and not for the long term.

    Obviously I’m not saying “Ignore the maths” all the time. Just be very careful when it suggests doing something that doesn’t align with your long term strategy of where you want the company to be in 10, 20 or 50 years from now.


  • Guerilla Marketing for Startups – An Example

    We’re on holiday at the moment, in the Netherlands, but just thought I’d write a short post about a great example of guerilla marketing we spotted today, for something we visited whilst in The Hague.

    There’s a great attraction in a small basement near the centre of The Hague, called Amaze Escape – http://www.amaze-escape.com. Essentially they have three rooms – you choose one of these rooms for your “Escape adventure” and are then locked inside. You have one hour to find clues, figure out riddles and puzzles, and work out how to escape the room. It’s absolutely great – we chose the “KGB” room which is really atmospheric (I’m not sure the kids got all of the references to the former Soviet Union, but they loved it anyway!) and they’ve done an amazing job of making in not too difficult, not too hard and really exciting.

    So if you’re ever in The Hague, go – you’ll have a great time. But you don’t have to believe me – just head over to their Trip Advisor page to read what everyone else thinks – http://www.tripadvisor.co.uk/Attraction_Review-g188633-d5539567-Reviews-Amaze_Escape_Events-The_Hague_South_Holland_Province.html. And this is what made me realise what a great, simple and singular marketing job they were doing getting their small business up and running.

    Firstly, let me describe the long and complex process we used to decide to go to Amaze Escape:

    1. Open the Trip Advisor app on the iPhone, select The Hague and “Attractions”
    2. Skim through the top few items (it defaults to being ordered by rating) to see what sounds like fun
    3. See that Amaze Escape is the #2 rated attraction in The Hague, and click through to its Trip Advisor page
    4. Read lots of great reviews and the descriptions on that page of what it basically is
    5. Book it

    Erm, and that’s it. No “brand awareness”. No Google searches, no “Content marketing”, reading articles about the benefits of “Escape room themed attractions”. Just a search on Trip Advisor, reading some good reviews, and booking made.

    When we got there we realised it really was a startup – there were lots of clues, such as: it wasn’t enormously well sign-posted at the building, there were just a couple of people working the exhibit (who were obviously the owners of the business), everything was running off iPods and laptops, and lots of other little clues. But that’s one of the things I really loved about it! It was very “pre-corporate”. One of the guys there was really proud that he’d devised all of the clues for the rooms. And what was particularly great was the amount of effort they put in. They were great hosts, really friendly, and they’d obviously spent a lot of time on the details – the sorts of things that get lost later on, when someone decides to “rationalise” a service, and work out on a spreadsheet what the “Minimal Viable Product” is – i.e. what corners can we cut. So, free drinks when you get there, photos taken of you in the room that get sent through later, flexibility with the booking, lots of time spent with us afterwards talking about his business and how it all works (he wants to open one in London, which sounds great!), an unasked for discount for the kids and so on. All the sorts of nice things that disappear when business like this grow – he was doing things that “don’t scale” while he could.

    But what about the marketing? The clue came when I mentioned off-hand “Yeah, I think you were #2 on Trip Advisor” to which he immediately replied “Yes, we were #3 the week before that and #7 before that”. I chatted to him a bit more and as far as I can see his marketing strategy is “Get good reviews on Trip Advisor and one or two other sites, that’s it”. I doubt he’d phrase it like this, but taking the Good Strategy/Bad Strategy model:

    • Main obstacle – no-one has heard of us in a crowded market
    • Unfair advantage – we can “do things that don’t scale” providing an exceptional experience – something the big companies can’t
    • Strategy – use our unfair advantage to get amazing reviews on the sites that people use to leapfrog other attractions

    And consciously or unconsciously this has led to the actions/objectives of focussing almost solely on getting good reviews on Trip Advisor.

    I.e. they’ve figured out “What’s the one single thing we can do which will make a massive impact on our business this year (they’ve been going a year) – let’s just do that”. May be they have a graph somewhere showing “Rating on Trip Advisor for The Hague” (though I suspect not, as they both seem to have the graph in their heads).

    What to learn from this? – only the value of a mono-focus on an intelligently set objective, chosen for maximum impact. They knew what their unfair advantage was (that they could provide an amazing experience), what their problem was (when they started, no-one knew about them – they had no web presence or brand), and figured out a clever way of fixing that.


  • Why Measuring Marketing ROI is Like Trying to Measure Employee ROI – Impossible!

    I’m beginning to think I might need to change the tag line for this blog. One of my earliest posts was about how we needed to apply some scientific rigour to the process of marketing attribution and therefore ROI. How can marketers be getting away with such unproven and unprovable techniques, spending all this money with so little evidence of success?

    But I think I might have changed my mind. We’ve actually had a couple of geniuses at Red Gate looking in to the provability, or otherwise, of marketing ROI, and their conclusion? Nah – you can’t do it. More specifically, for our volumes, with our variation in spend (we’re not a company make a thousand sales a day, all at exactly $10 each), it’s not possible to show statistically that a sample and a control group will differ enough to be discernible at any interesting level of significance. I’ll get more details if they let me (as well as writing about the interesting point raised that – does this mean Google’s whole business model is based on FUD? On us be too scared to kill spend on things like Google Adwords? For another time…).

    Anyway, I was thinking about this problem – that completely undermines this blog – and thought that actually there’s more to it than the maths. And that actually, trying to measure return on investment for marketing is very much like trying to measure return on investment for an employee.

    There are many similarities between these two investments:

    1. They are both investments. I.e. You’re spending money, either on Adwords (or whatever) or a salary. You would only be doing this if you expect to get some sort of return.
    2. So far so simple. Next – In theory, both can be measured in terms of Inputs, Outputs and Outcomes. As I outlined in another earlier post, I try to measure campaign success in terms of Inputs (“Am I getting what I wanted? Does the advert look good and say the right thing?”), Outputs (“What’s the immediate KPI? How many webpage visits did I get? How many clicks on the video? How long did they watch it for?”) and Outcomes (“What’s the headline result – was revenue impacted?”). Similarly we can do this for an employee. Take a developer – what’s the quality of his/her code? How do people like working with him/her? (Inputs). How much code does (s)he write? How buggy is it? How often does it get rolled back from production? (Outputs). And – is the end product something people want and buy? (Outcomes).
    3. Thirdly – there are trivial examples, I guess, of where this ROI is measurable in both situations. For marketing – you’ve never marketed ever in a particular country, say Micronesia, and never sold a single thing in Micronesia. You run some Google ads in Micronesia, and nothing else, then measure sales in 6 months time. I think you could get a pretty accurate ROI here. Similarly, if you employed someone to act as a consultant on your behalf, paid that person $100,000 per annum and, purely through having that person on your books, was able to bill $200,000 in consultancy work, then perhaps you could calculate an ROI here
    4. But, I think these are trivial examples. In most cases, it’s almost impossible to measure the return on investment in hiring someone. Take for example a good product marketing manager, let’s call him Pete. Pete spends a lot of his time researching and thinking about positioning for a set of products. He often has great, innovative ideas and insight (though not always!). Also, he spends a lot of his time with customers understanding their backgrounds, needs, desires and issues. Furthermore, he works fantastically in a team, bringing cohesion and vision to what everyone else is doing and helping to keep those around him motivated. He also helps out with training sessions for others in the company on his areas of expertise, and also helps out with company events both internal and external.

      How on Earth do you measure the ROI of Pete? Undoubtedly he’s having a positive impact on his company, but how could you measure it? How could you assess the impact he has on motivating the team around him? Perhaps that stopped someone leaving because “They just love working with people like Pete”. How would you ever know how you saved $10,000 on recruitment fees through that? Or how his work at events helped bring new customers and employees to the company? And more specifically, how would you ever measure the impact of clever product positioning on sales? I’d say impossible!

    So really, I’m coming round to the view that, though we might be able to measure Inputs well, both for campaigns and for people (“Is this a great campaign? Did we get it spot on?” and “Is Pete doing well? Is he producing great work, and a great person to have on the team?”) and we can measure some Outputs (“How many page visits did we get?” and “How buggy is Pete’s code? How productive is he?”), Outcomes and therefore accurate ROI are pretty much an impossible requirement.

    So what does that leave us with? Well personally, I think it’s an issue both of using intelligent qualitative assessment of work and also some faith that high quality work based on sound judgement will have the desired effect. For example, when thinking of Google Adwords – if we’ve done our research and know that there are lots of customers out there with a particular problem; and we’ve written our search terms to reflect that in an intelligent way; and we’ve worked on the ads so that they really reflect how we know customers are thinking; and of course, we’re checking that the ads are working, and continuously improving them – then, I think it’s reasonable to suppose that this effort (and spend!) will produce some results beneficial to your company. Of course, you have to check the rest of the pipeline – when they’ve discovered you through the ad, can they try your product easily (Validation)? Do they get what it is (Positioning)? Can they buy it in a way that suits them (Pricing and Packaging)? But if these things are also done well, I believe the extra work trying to validate whether or not you’re getting a particular overall ROI from Adwords is a hiding to nothing.


  • Setting Ambitious Marketing Targets is a Waste of Time

    red-business-graph
    We all, periodically set targets for ourselves and/or other marketing folk. How often have we started the year with a plan that goes something like this:
    1. Do activities a, b and c,
    2. Through activities a, b and c, achieve the following “up-and-to-the-right”* targets:

    up-and-to-the-right

    Great, we’re all rich! But what I want to argue is there are two problems with this type of planning and target setting – a minor one, to do with the shape of this graph, and a major one to do with philosophy of super-ambitious targets like this (the graph above suggests a 40% increase in leads per month over 9 months, and still going up…).

    Firstly, the minor point of the shape of this graph. Here’s what the graph above is actually saying:

    1. We currently get around 100 leads per month, and this is fairly predictable from January through to March.
    2.  I’m going to do something very clever at the start of the year that’s going to increase this rate of leads to 105 in Apr, then 110 in May and so on. I.e. not only am I going to increase the number of leads over the current “standard, background” rate, but that increase is going to keep getting bigger and bigger each month.
    3. In theory this goes on forever – by the end of next year we’ll have doubled the monthly lead rate and so on in to infinity.

    My issue is with the concept that the number of leads per month keeps getting bigger and bigger. In reality from the experience of running many, many campaigns, I’ve seen three types of chart:

    No Impact Whatsoever

    up-and-to-the-right

    Temporary Impact

    up-and-to-the-right

    Sustained Change in Awareness of Product

    up-and-to-the-right

    The first chart obviously means that what we did didn’t work – fair enough, learn from your mistakes and try better next time.

    The second shows that we did have an impact, and we did bring in more leads, but that when we stopped our activity the rate of new leads coming in each month dropped down to previous levels. This is a perfectly legitimate and potentially great result! If you managed to get 10 extra leads per month for 3 months (i.e. 30 new leads), if these cost $100 each to obtain (i.e. the “campaign” cost $3,000) and you actually made $200 per lead, then your campaign has given you an ROI of 100% ( ($6,000 – $3,000)/$3,000 ) – a great result! The issue of course is that once the campaign is over, you have to think of something else.

    The third shows an impact whereby you’ve done some sort of activity and this has led to a sustained change in the number of leads coming in each month. They key point here is that previously, whatever marketing you were doing, you were bringing in 100 new leads each and every month. This is no mean feat – if we weren’t doing anything right and your product sucked, then we’d be getting zero new leads per month. So to increase this rate to 110 and to sustain this is a significant achievement. Obviously there’s a relationship here to chart 2 – if you’re carrying out extra activity that’s costing you $100 per lead and you’re managing to sustain that over time (i.e. the activity isn’t getting stale, such that new leads are diminishing), then that’s great. But ideally, you’ve done something as a one-off (say, a great set of new interesting content, easily findable by all), which is providing a long term increase in the average number of leads per month – definitely a great achievement.

    So firstly, I have an issue with the shape of this graph. If we wanted to be really ambitious, I’d suggest that only graph #3 above (“Sustained change in awareness of product”) is what you should be suggesting – that you might be able to take the average monthly lead rate to a new plateau.

    But secondly, and perhaps a bigger question, is how ambitious you should be. Really, when we’re setting these “targets” what we’re setting is objectives for the coming period. I’ve previously mentioned the great book Good Strategy/Bad Strategy by Richard Rumelt, and here Richard talks a lot about the need for good proximate objectives and how these objectives should be formed. Specifically, from chapter seven:

    One of a leader’s most powerful tools is the creation of a good proximate objective – one that is close enough at hand to be feasible. A proximate objective names a target that the organization can reasonably be expected to hit, even overwhelm.

     The bit at the end is particularly interesting – “..even overwhelm”. But what’s the point in setting a target if it’s going to be so easy to hit, that we’d likely overwhelm it? That’s not going to stretch you or your team is it? You might as well switch on to auto-pilot for the rest of the year if your target is going to be so easy that you’ll overwhelm it? And it is counter to many performance management systems, not least Google’s! As pointed out in this video about Google’s OKRs:

    Always have goals that are uncomfortable to push you to achieve more. If you know for 100% you are going to achieve your objectives, challenge yourself more. 

    There seems to be a mismatch here between Richard Rummelt’s approach and Google’s.

    Firstly it’s worth pointing out – the Good Strategy/Bad Strategy approach certainly doesn’t propose “do nothing” targets. In the example at the top, an objective which was “Just keep coasting maintaining a flat-line for leads” isn’t an objective, it’s just doing nothing! (ignoring the maintenance work required to keep these leads churning through of course).

    What is being advocated is something where you genuinely believe that you will hit a given target. I like to think of this as “Would I privately bet my own personal money on us hitting that target?”. It tends to changes one’s view of a target if one has to stake one’s own cash on it! If you can answer “Yes!” to this question, then it’s a believable objective.

    But still there’s the argument – couldn’t you have done more with a stretch target? An “easy” objective of say, getting 50 new leads though believable, is likely to get you just that – 50 leads, or thereabouts. But if you set an ambitious target of 100 leads, you might not believe it, but you might end up with 70 leads, or even 80, if you really “go for it”.

    Firstly, there’s a minor problem I have with this – I just don’t believe this motivational model. That I or a colleague will be more motivated to achieve more, by setting an unrealistic target. I’ve never seen this happen in the real world. In reality, people are motivated by much more complex factors – who they work for, their colleagues, their interest in their work, whether their work chimes with their personal ambitions, the ability of managers to create an environment of ‘flow’, clear simple objectives for all and so on. Not by having a big red poster on the wall saying “Get me an impossible number of leads”.

    But I think there’s also a major problem with this approach. For me, short term objectives are just stepping stones towards the long term goal of what we are trying to achieve. So if we were to get 50 extra new leads, this is a short term objective that is building towards a longer term of building your business, finding loyal customers to nurture, growing awareness, as well, of course, of generating revenue (for investment in the future of your business). So the short term objective isn’t the be-all-and-end-all. It’s a step on a long journey – and this is key. If you can’t predict, with any confidence that you’re going to hit that given target, how can you possibly plan for the future? If I set a target of 100 new leads, and then start building future plans based on that new revenue (e.g. hiring new staff), what happens when I miss that target? I have quickly re-jig my plans, rushing through changes, based on my (predictably) failed targets. We haven’t built any solid blocks for the future, instead we’re back to panic planning.

    In contrast, if we go for a lower target, and by tracking as we go along, see that we’re nicely moving towards hitting that target then, as we approach the end of the year, we can put our next set of plans in to place in a more measured fashion. Much more stable, much more predictable and, I’d argue, a bit moregrown-up than random objectives that no-one ever believes.

    This is why, for me, setting realistic objectives for the coming period is key, and why hopefully those big red “up-and-to-the-right” charts are a thing of the past.

    * Last week I heard someone use “up-and-to-the right” as a verb as in “How are we going to up-and-to-the-right that value?”! It seems the English language abusers attempting to “verb-ify” every word aren’t even sticking to single words now!

    4 thoughts on “Setting Ambitious Marketing Targets is a Waste of Time

      1. I can’t agree with the first chart explanation. Sometimes the flat line is the output of the extensive marketing effort. It is not always that easy to do nothing and get stable results. I think you should put another graph with the breakdown in the first month of doing nothing :)

          1. Adam – I think that’s a very fair point, and I’ve assumed lots of things. We have lots going on in the background, that sustains current levels though if I’m honest a very large proportion of that “Business as Usual” lead number comes from word-of-mouth and reputation. For us (and obviously different for different businesses) if we literally “switched off all marketing”, probably very little would happen in months 1 or 2. However, by 3 and 4, and beyond, we’d start to notice a drift downwards. I.e. the marketing has an impact, but it’s always delayed and chronic (rather than acute).

      1. Some really insightful points here. I fully agree about your points about marketing goal setting and the crappy assumptions we tend to make when doing so. Your 3 graphs are genius – and well worth anyone in marketing reading. There are a number of campaigns where I wish I’d asked the question, “realistically which graph do we really expect by running this campaign.

        As someone who has produced a lot of goals that have failed to have the effect I was hoping for, I’ve come to believe that objectives that state (effectively) we will grow by 40% and continue growth beyond that are counter productive. Objectives should be things we can actually do whilst measures might tell you whether you got the results you were hoping for. e.g. Our objective is to produce our product in German and to also produce a German version of our website and success would be an increase of 10,000 German users of our software. Whilst this seems a thinner objective and doesn’t actually give you what you want (the extra users) it is actually stronger because the team can actually all get behind doing something that is genuinely likely to make the businesses stronger.

          1. Thanks! For the top graphs there’s also the point that here we assume we get the “background” levels of leads for free – i.e. if we did nothing this month, we’d still get 100 people after our product or service. But for early stage companies this isn’t necessarily the case – if you do no marketing you get absolutely nothing. For them, achieving even a flat line with a modest budget is quite an achievement.


  • The Need to Constantly Change in Marketing

    images
    There’s a quote that I really like from one of Christopher Isherwood’s early novels, The Memorial:
    “Men always seem to me so restless and discontented in comparison to women. They’ll do anything to make a change, even when it leaves them worse off. […] Whereas […] we women, we only want peace.”

    Removing the sexism from this quote (it was written over 80 years ago…), gives you something like the following – I’ve removed all of the brackets etc, to make this more readable:

    “Some people always seem to me so restless and discontented in comparison to others. They’ll do anything to make a change, even when it leaves them worse off. Whereas others only want peace.”

    Now I think this quote applies to an awful lot of people and situations, but this is a marketing blog, so why is it relevant here?

    If you step back and look at the ever-changing world of marketing methodology, and look at it over a timescale of years, and really, decades, then the one obvious feature is the constant change in the methods recommended and used over this period. Some examples known to all of us:

    1. The Internet and digital media. I still remember the first time I saw a website address advertised anywhere, on the back of a Björk CD. At the time I had no idea what to do with it (I didn’t have a computer on the Internet) but I know I was impressed. Now of course, over the last 10-20 years, a marketing strategy which doesn’t involve a website and other elements of web presence would be laughed out of the room.
    2. The death of print media. Apart from the very occasional experiment, we haven’t used print media for advertising at Red Gate for at least 10 years. Again, when I was a kid, every video game, bit of software or hardware would buy quarter, half or full page slots in various print magazines and newspapers. This was expensive and, as an advertiser, you had no idea whether it worked or not. In contrast to digital media, a campaign based entirely on print media would struggle to be taken seriously today.
    3. Banner ads. Getting in to something more specific, banner ads are I think the VHS recorders of our generation. It is a “technology” that has both risen and (almost completely) fallen in our lifetimes. Obviously it grew with the growth of the Internet as a medium and was the obvious like-for-like swap for quarter page ads in print media (just scan in your print ad, and send it over to the magazine to put on their website!). But it has the same problems (lack of feedback for the advertiser) and, as we all know, nobody likes or clicks on them. There have been some advances in recent years (using pay-per-click banner ads through Google Display Network), but banner ads are now rarely at the centre of any campaign.
    4.  Adwords. Again, a medium which as grown with the rise of the Internet and Google specifically. Google make an incredible amount of money, almost exclusively from Adwords, and their whole machine is set up to promote Adwords as a necessary and wise choice for the modern marketer (have you ever seen a Google blog post titled “How you could spend a lot less on Google Adwords”?!). Ten or more years ago, the individual who looked after marketing at our company at the time saw how it could be used to massively reduce our marketing spend (compared to print media) and still get the same results (as well as the benefits of knowing what’s actually worked). This was something that was instrumental in the early success of Red Gate, particularly on a limited budget. But could the same be said today? Is Adwords still the most cost-effective way of generating leads, easily outstripping all others? What sort of future does it hold? I’d suggest the jury is out.
    5. Content Marketing. As I’ve written before, hard to find a marketing blog that doesn’t hail content marketing as the new messiah. One group in particular who were very early to recognise its value were the people who run marketing automation companies…

    6. Marketing Automation. The natural progression on from blind content marketing is the use of marketing automation tools to apply that content in the most relevant scenarios, measure the results, then adapt based on feedback. This is an area which is still in its infancy I believe, simply because of the hurdle to getting started (you have to install and setup something like HubSpot, Eloqua or Marketo – no mean feat).

    There are many other methods of course that have had their ups and downs – mobile advertising and social media are also current fashions but the general point is that like everything in the world of marketing these things come and go.

    But, there’s another important thing to note here – there are people who recognise the importance of the new marketing approach before others and are therefore, arguably, more likely to get the full benefit of using that new method first. Björk has always had a great reputation in the world of digital media (her latest idea – Biophilia, a sort of multimedia collection “encompassing music, apps, Internet, installations, and live shows”) is once again at the forefront of what can be done with digital technology (and its great btw!). Bowie is another who was always at the forefront with www.davidbowie.com – its changed many times over the years, but was a pioneering site for fans in the early days.

    Which brings me back to the Christopher Isherwood quote. There are marketing people who, because of their need to always be doing something new are more likely to find the new things that could be valuable for your business. They’ll always be on the lookout for the new trends, what’s coming up in the future and so on. In contrast there are also people who will stick to what they know, and will struggle to try out new things. Each of these approaches has pros and cons – there is a danger, with constantly looking for the Next Big Thing, that we can fritter away our time on endless trends that go nowhere when that time could have been better spent just getting the Adwords campaigns right.

    But the danger with the reverse position – of always sticking to what you know, and ignoring the world around you – is that you stick with something long after its valuable and never fail to capitalise on the new things coming along (in the early days, when you can have most impact). I interviewed someone for a marketing role 2-3 years ago who said “There’s nothing wrong with print media – have you considered going back to that?”. It’s not about whether he was wrong or right, it’s that this exhibited an approach to marketing that I would have really struggled to work with.

    I’ve no idea what the next big trend will be of course. I think there’s another phase in the content marketing/marketing automation marriage where we’ll soon be able to auto-create content for customers based on their very specific needs (imagine a situation where articles could be automatically created from pre-defined blocks of copy, pieced together based on our knowledge of the customer – an article for a large, late adopter pharmaceutical company would be subtly different to that for a small, early majority financial firm), though a lot of these things will require some real, solid output from the Big Data/Hadoop community. But who knows? The point is unless you’re looking for these new trends – or rather, employing people who yearn to find these new things – then you’re almost certain to miss them till its too late.


  • The End of the Marketing Plan

    Destiny(Sandman)

    I’ve read a couple of books in the last year both with something to say on the subject of marketing plans. Well, I’ve read one and given up on the other. The one I finished was:

    Lean Enterprise by Jez Humble, Barry O’Reilly and Joanne Molesky

    And the one I barely got started on was:

    Marketing Plans by Malcolm McDonald and Hugh Wilson

    This makes this a bit of an unfair comparison review of the two books, as I haven’t made it through the latter, but in a way that’s the point I’m trying to make.

    The latter book comes in at a whopping 592 pages – and that’s for the 7th edition of the tome. And the content is dense – every page is packed with data, information, tables, planning tips and tricks, processes and so on.

    In contrast, the Jez Humble book is being released through an Agile Publishing methodology (release early drafts to customers, gather feedback, rinse-and-repeat), where the first draft came in at a digestible 78 pages. And it’s very readable.

    But again, that’s not really the point – there’s nothing wrong with a long, intense study of a subject. The most interesting difference between the two books is the approach taken to marketing activity. To illustrate the difference, the following is a key diagram from  Jez Humble’s book:

    LeanEnterpriseThis diagram isn’t directly applied to marketing, but instead is making a point about how most companies develop products end-to-end. The authors describe this as “water-scrum-fall” – a process whereby yes, your development teams are writing and testing the code for a new product following Agile practices, and may have been doing so for years, but the rest of the organisation still works in a heavily waterfall based, linear way, with all of the standard problems of waterfall development – bottlenecks, blocks, wasted effort, wrong products to customers, late delivery and so on. By the way, HiPPO stands for “Highest Paid Person’s Opinion” ;-). NB: I won’t go in to the details of “Agile vs. Waterfall” as development methodologies – Wikipedia as ever has a good description.

    My contention is that I would add marketing and marketing planning in to this diagram as a part of the process of developing and releasing a product to market – and that we as marketers still, generally work in a heavily planned, non-iterative, and essentially out-dated approach to developing marketing campaigns.

    The Malcolm McDonald book provides quite incredibly detailed tables for the reader to fill in, allowing you to plan out your whole year of marketing in detail – which segments you’re going after (and everything about those segments), when you’re running campaigns, how many leads you will get from  each activity, forecast revenue generated and a thousand other things. In theory, all laudable activities. And for the last three years I’ve followed this approach (more or less – I could never quite stomach the level of detail required by the book). Every November/December I’ve spent weeks constructing a plan of, essentially, what was going to happen the next year in marketing, down to leads and revenue generated for the next 12 months.

    As everyone knows, these plans never come to pass. But, the argument goes – “It’s the planning that’s useful, and what you learn, not the actual plan”.

    Yes – to an extent, because a plan forces you to think about your goals and objectives, and that can’t be bad. But a key practice in Agile development is the concept of a backlog of work – you have a long list of activity that you want to undertake for a product, but the level of detail for those items is different depending on how soon you plan to do the work. If you’re starting something next week (at the top of the backlog), you’d better have a pretty good understanding and description of the story you’re tackling. However, if you’ve got something you “Hope to do  in about 6 months”, you can leave these items at a very high level, something like “Add in that cool Facebook sharing feature” will do perfectly well.

    Why is this a good idea? Because right now, you fundamentally don’t know what the future holds. Today in February 2014, I have an idea for what marketing we as a team want to be doing in 2014H2, based on the products we have, the customer segments we’re reaching (or not reaching of course!) and so on. But I’m also pretty sure that I’m wrong. That whatever we do in 2014H2 will be only barely related to my current thinking. Right now we’re planning a mass market activity, based on some of the traditional marketing approaches we’ve used before. But what if, in April this year, we suddenly start gaining some real traction with larger accounts in a specific segment? Then I might need to pivot and re-think plans to make the best of this opportunity. Any detailed plans that I had would be thrown out of the window.

    And the point made in the Lean Enterprise book, is why not apply the Agile development approach to other areas of the business too, such as marketing? Release early, gather feedback, iterate-and-repeat. The key benefit is that you’re getting early feedback on what’s working, then you build on that, continuously improving what you’re doing so that by the end of the year you have activities that you know are working – because you’ve been testing them for the previous 11 months and getting benefits (e.g. leads) all along the way.

    This is what we’ll be doing this year. I haven’t made a marketing plan for 2014 at all – and I’m feeling very comfortable with that situation.

    PS the image at the top of this post is the character Destiny from the amazing graphic fantasy novels – The Sandman by Neil Gaiman (I can’t recommend these books highly enough – I’m now on my 4th read). Destiny holds a book (the “Book of Destiny”) that contains the past, present and future of every living being. As I said, the novels are fantasy.


  • Xbox One vs. PS4 – How Marketing can Drive Development

    Titanfall-by-Grafittibox

    Hard to miss it, but two next-gen gaming consoles were launched just before Christmas – Microsoft’s Xbox One, and the Playstation 4.

    Normally this sort of thing would pass me by (I’m not a big video game fan – they just seem like complete time vampires), but something I noticed was how interesting the two launches were as marketing exercises.

    Both did very heavy outbound marketing. At the Xbox launch, you could barely turn the TV on without a slick Xbox ad being shown, the advertising was anywhere you looked, there was an extensive roadshow and they had a very heavy Twitter presence (lots of updates about features, events, sneak peeks at functionality, that sort of thing). All this was great, and the PS4 did something similar. But that wasn’t what I thought was so interesting (in fact, both campaigns felt extremely well-honed and professional, as you’d expect – but perhaps a little too predictable and dull?).

    What I thought interesting, was how differently the two consoles were positioned. Or more specifically, how differently they were trying to position the two consoles in the customers’ minds. Put simply, the Xbox One is obviously trying to position the console as a unit for the family living room. Yes, it has zombie killing games, but that’s only part of it – there are fun games for the kids and the family, video and music functionality (including film hire), the Kinect (advertised as “Now can detect up to 6 people” – i.e. a family), HDMI pass-through and so on.

    Look at the PS4 tagline – “This is for the Players”. They’re going straight for the hardcore gamer. They’re pushing on the processor power, the superb, but adult-focussed game range, it’s reputation as the “player’s” console and so on. There’s an equivalent to the Kinect, but it’s a bit of an afterthought (and doesn’t come in the box – hence why the PS4 is that much cheaper), and of course the PS4 can stream  videos etc and play Blu-rays, but that’s barely mentioned in the ads. Additionally they’ve much more of a deal of supporting indie game shops, hoping to get more interesting and diverse a range of games.

    That’s why the arguments about “Which console is best?” are rather tiresome. They’re targeted at different groups, and have different functionality to match. If you’re buying the thing so that the kids can play a dancing game on Kinect, do you care if that’s rendered at 1080p or 720p? But if you’re buying something to feel the thrill of hi-octane car chases, that frame rate really matters.

    The important point I wanted to draw out here though, is that it’s not just about the marketing – it’s about the product too. If the consoles were more or less the same (and there are sooo many similarities!), then marketing them differently would just be that – fine, but perhaps not enormously impactful.

    But in fact, the machines themselves are very different – Microsoft made a big decision to include the Kinect in the box, significantly increasing their launch price. Additionally, the PS4 doesn’t play music CDs in the Blu-ray player (though coming soon apparently). These are two product decisions (amongst others) that I believe would have followed on from a marketing decision about how the Microsoft and Sony wanted to position the consoles for particular markets. By making big product development decisions based on this sort of market research, you end up with a much stronger proposition for the market. It’s not just an ad telling you that the PS4 is better for gamers – this is backed up by what you’re buying. The processor is faster (in certain circumstances ? ).

    It’s a simple example, but I think a useful one. For me, personally (not a big video game fan, has kids, wants a way of accessing decent TV through a console) the Xbox One is much more attractive. But when I mention this to the avid gamers at work, I’m laughed at – how can you even consider not buying the PS4? (NB: Microsoft’s terrible PR last year about stopping customers selling games second-hand really didn’t help..). But we’re very different customers looking for very different things.

    I think both consoles will do well, but likely in the different markets – both have been positioned cleverly, but most interestingly – they’ve obviously listened to their marketing department to determine that product direction, to make sure each ends up with the best product to actually fit their respective markets.


  • Dissecting Thought-Leadership

    [no title] 1972 by Andy Warhol 1928-1987

    To start, I don’t really like the term “Thought-Leadership”. Like many things in marketing, it’s a bit too “marketing-ey”. It also has echoes of NLP, something I’m not a big fan of, to say the very least.

    But, I guess it’s pretty descriptive for what it means – I’d define it as something along the lines of:

    Providing insight, ideas and leadership in a given subject area, that stretches the limits of the current consensus, driving a subject in new directions and providing deeper understanding.
     

    The reason I’ve highlighted “leadership” and somewhat repeated this idea later in the sentence, is that I believe it’s important to distinguish between this sort of activity and certain types of content marketing which are merely reflecting the current consensus and knowledge in a given area. It also highlights why I think thought-leadership is so hard, particularly if you’re using this as a marketing technique.

    First, to distinguish between thought-leadership and merely “reflecting the consensus” – I think this distinction is based on whether you are genuinely providing new insight and a deeper understanding on a subject, or are you just re-iterating others’ points of views and ideas? There’s nothing inherently wrong with the latter (unless you’re plagiarising of course ? ) – a lot of great content marketing is based on this approach. The example I gave a while ago, of VW providing content on how to keep your car safe in the winter is a really solid bit of content marketing. What they’re talking about (getting tyres, brakes etc checked before the winter starts, checking tread, knowing your revised stopping distances and so on), is hardly pushing the forefronts of engineering knowledge. But does that matter? I think this is really solid content marketing, which will enhance VW’s reputation and draw in people to their site.

    But it’s not thought-leadership. I’m not sure what thought-leadership in the area of car winter safety would actually be!, and I’ve actually struggled to find really good examples, outside of the area I work in. I think this is because, although there are many personalities (particularly in marketing, where the Cult of Personality is rife!), how many of these are providing ideas where you think “Wow, I would never have thought of that! I now, fundamentally see this subject in a new and different way”. Rare, I think. As I say, there are a few I know in my work subject area (database development), but outside that?

    The two good examples I could find in marketing generally are:

    1. Steven Wood at Eloqua (now part of Oracle). Steven has written a couple of great books on marketing automation – Digital Body Language and Revenue Engine. I see these as great thought leadership because he wasn’t just repeating received wisdom on a given subject, but really trying to say something new, and to give a more in-depth point of view on the subject.
    2. Google Analytics blog. The thing I like about the GA blog is that it’s a mix of content but, more importantly, that they do genuinely try to say something new and insightful with many of the posts.

    But, I think there’s a couple of other things these examples have in common, which make them good examples of Thought Leadership – things which are not easy to replicate in a convincing way:

    1. Authority – both are respected sources of information, so you listen. If it was exactly the same content from a.n.other random individual, I think it would be more difficult to get value from the content.
    2. Relevance to business – again, both talk about topics which promote their businesses. As I mention, I think it would be relatively easy to find someone authoritative to talk on a topic of his/her choosing, but is that going to promote what you sell?

    And this is why I think effective Thought Leadership is actually very difficult indeed. You need to find someone who fulfils the following three requirements:

    1. Knowledgeable/insightful and able to push the topic forward,
    2. Is a respected influencer in the community,
    3. Is willing to talk on the subject that promotes your business.

    You can throw money at the problem of course, by hiring some big names. But even then, if you hired someone very expensive and authoritative in a specific area, but that person wasn’t already very interested in the subject matter of your business (criteria 3), you’ll still struggle to get good thought-leadership from that person.

    An alternative is to grow someone from within. May be your CEO would be willing to tour the world talking about a given topic, writing blog articles on the side to support this. Or maybe you’ve got some very smart internal people who are already authorities on a subject, but you didn’t know it. All are options, but as I say, if you fulfil the three criteria above, you’ve a lot more chance of having a real impact, rather than just pushing out content that few people read..


  • My 10 Biggest Marketing Screw-ups of 2013

    Alexander O'Neal Criticize

    It’s nearing Christmas, time for “Top 10…” and “Round up of 2013″ style posts, so here’s mine. One of my failings is that I’m a terrible self-critic, so I thought I’d write a piece on “My 10 biggest marketing screw-ups this year”. I don’t think I’ll get fired because luckily I work at a place that believes that “Visible mistakes are a sing that we are a healthy organisation.”, from p82 our Book of Red Gate. More seriously, we actively encourage learning from mistakes (a sort of kaizen I guess) and, as the quote says, if you’re not making mistakes, perhaps you’re not trying hard enough.

    So, excuses out of the way, here are the top 10 mistakes I think I made in marketing this year. I’m sure my colleagues could list many more, but these are the ones that are top of mind. NB: I was going to do a “What I learnt” section for each item, but for most it’s pretty obvious – Don’t do it it again!

    1. Trying to do too many things in parallel rather than in series

      This covers a lot of the year in fact, and was perhaps the thing that took me the longest to correct. In essence, there have been many times in the year where I’ve kicked off multiple activities (e.g. some Adwords work, a new site, some new emails, a change to pricing, some new social media activity), all at once, I guess with a view that “Well, one of these things must work!”. This is, I believe, a mistake for two reasons – i) Measurability. When you (hopefully) get a lift in traffic, which of these activities made that difference? Who knows!?  And, ii) I think if you try to do 10 things at once, you’ll do each of them, at best, adequately, and likely fail at all of them. If, instead, you focus on one specific activity, get that working, tuned, and implemented to the best of your ability, then move on to the next thing then this is more likely to get the results you’re after long term. Better to do 3 things well, than 10 things poorly.
    2.  Not being brave enough about making some significant changes to marketing spend

      Obviously I won’t go in to details here about what we spend on what, and that’s not really the point. The real issue is about following one’s gut feel for certain things, and having the courage to carry those changes through. For much of this year I’ve believed in making significant changes to certain parts of the marketing mix spend, but for a long list of reasons, none of which were insurmountable, I haven’t pushed those changes through. I could have done, but the changes would be risky, unpopular with many, and aren’t strictly in the area I work in. Nevertheless, I wish I’d pushed these changes through.
    3. Occasionally being too “Marketing-ey” in copy

      I work in the software industry. Tech people have a radar for marketing spiel second to none. Any hint of hyperbole or marketing-speak, and it’s a massive turn-off for our customers. Our copy needs to be plain, say what it does, talk in the customers’ language and so on. There’s been at least one major and a few minor incidents this year where I’ve written copy which is definitely on the wrong side of this line, and which shouldn’t have gone out. I guess it’s a quality/attention-to-detail thing, making sure I’ve done a final check of everything I’m sending out with a final “Is this just marketing BS?” check at the end.
    4. Periods of time out of contact with customers

      There are have been dry periods during the year where I’ve gone for weeks and weeks without speaking to a single person who buys our products. Just no good and, basically, laziness. Even if I’m not at conferences, or going on customer visits, there’s absolutely no reason I can’t just call a couple of them up and see how they’re getting on with our products. As I said a couple of posts ago, if you’re not at the coalface a lot of the time, keeping yourself up to date with what the customers really need, you can drift in to an ivory tower of speculation and digression, losing focus on what the customers are really interested in.
    5. Too much time re-jigging pages on our website

      It’s just too easy! Perhaps it’s borne of the Lean Startup movement, but it’s very tempting to endlessly play with web page layouts with the (I believe, mistaken) belief that “If I just put the video on the left and change the colour of that button, conversion rates will double!”. It never has. As I say, it’s just so easy to play with the website (rather than doing something more difficult and longer-term, such as “Building a community” or “Finding 10 reference customers”), and I should have resisted the temptation to sit in this comfort zone.
    6. Too much short-termism; not thinking long-term enough

      This is related to the previous point, but the Lean Startup movement implies “Make change X and watch conversion rates go up 10% in a week!”. But that rarely happens – genuinely building demand not just leads can take significant investment of time and effort, and you might not see the results for months, even years – if you can even measure the impact anyway. Endlessly pivoting week-to-week, just because some minimal piece of marketing work hasn’t shown immediate results is a hiding to nothing.
    7. Chasing shadows in KPIs

      This is a phrase borrowed from a colleague, but if leads go down 10% this month, compared to last month, does this matter? I’ve spent too much time investigating ups and downs in various metrics, to little effect. It’s the long term trends in KPIs – whether tracked over quarters, years, or even longer, that bring real insight in to your market, movements in customer demand and so on, and just chasing the shadows of local changes doesn’t really lead anywhere very useful.
    8. Not implementing marketing automation earlier

      We’ve been crying out for marketing automation for a long time and now, finally we’re implementing HubSpot (hurrah!). It’s going to be transformational to the way we carry out certain activities. But we’re not implementing it because of anything I did – thankfully another colleague made the effort to push the trial and implementation through, and it’s down to him that it’s now up-and-running. Given the importance of the change to all our activities, I should have prioritised it earlier in the year, if not last year and not let organisational difficulties get in the way. I guess the real learning here is that if something is going to fundamentally change the way other things are done, you should implement it first, as the other work will just become obsolete. It would be like endlessly tweaking all of your music and playlists in iTunes, getting it all perfect then at the end just switching to Spotify anyway..
    9. Not supporting Sales properly

      Sales people are the individuals actually talking to your customers on a daily if not hourly basis. If a sales person says “I really don’t know what to say when this problem comes up for customers, or how our tools solve it”, you need to listen and you need to help. In particular if your products do actually solve that problem for customers and you haven’t told your sales people it does, you’re throwing money away – revenue from leads that probably cost you a lot to acquire. Why throw it away at the final hurdle?
    10. Not just accepting that some things are unmeasurable

      Some (if not most ? ) of good, effective marketing is basically unmeasureable. You’ll never be able to quantify the enormous value to be gained from, say, taking a key industry influencer out to dinner and taking him/her through your ideas. I think I’ve spent too much time worrying about measuring everything. Instead now, I partition activities in to “measureable” and “unmeasureable”, I try to accurately measure the former and just forget about the latter – it’s pointless.

    And I’m sure there are many more things (I know there are lots of small things along the way..). Most mistakes are obvious with hindsight – of course if you don’t support sales properly, they won’t be able to sell as effectively as they could – but certainly not all are obvious with foresight. For example, at the time, it seemed like a great idea to analyse KPI data on a month-by-month basis (we’re all data driven aren’t we?) and it’s only with hindsight and experience that I see how little impact and importance that endless burrowing has had.

    So I’m quite happy to be open about these mistakes – some perhaps I should have avoided, but most are just things I’ve learned from another year of working in marketing in the real world.


  • Market Sizing – Old vs. New Markets

    anthony-gormley-field-1991-ls-m1

    I was attempting some market sizing activity this week. It’s something I haven’t done for a few months and quite frankly I’d forgotten how hard it was.

    I start from a premise that the future is completely unpredictable. Really, aren’t we kidding ourselves when we think we can predict how many people will buy our widget and at what price? But then this seemed rather defeatist, and I have seen market sizing produce some value, so I thought I’d try and break the problem down a bit.

    The other think I noticed this month was how much fruit-specific cutlery there is out there. You can buy a Kiwi spoon, a Mango splitter, a Grapefruit spoon and endless other tat to fill your kitchen drawers. So I thought I’d use this as an example market sizing task, focussing on a new, brilliant product idea I had, the “Apple Knife” (patent pending) – a knife specifically designed for cutting up apples with a fork bit on the end for picking up the pieces. I know, genius.

    So the usual method I use for market sizing is the standard “Start big, and narrow down” approach. And I try to use some sort of staging for this, a version of which is described here – try to define some sort of Total Addressable Market (how big would this market be, if we had 100% market share?) and then calculate some proportion of this, based on how many people we can reach, what market share we might able to get and so on. As a massively over-simplified example, for our wonderful Apple Knife product:

    • People in the world – 7bn
    • People who regularly eat apples – 1bn (I have no idea, btw)
    • People in the UK who regularly eat apples – 60m (we’re only going to sell to the UK to start)
    • Households – 26m (realistically, we’re only going to sell one per household)

    So, in theory, so far,  our Total Addressable Market is 1bn knives – if every person in the world who ate apples bought one, this is what we’d sell. I don’t think this will happen. So we have to start narrowing down the numbers.

    NB: You can always narrow the numbers down in different orders – addressable geography first,  or # of households first? I’m not sure it matters, but generally certain orderings are easier than others (e.g. it’s easier to find the number of households in the UK than it is in the whole world).

    Anyway, here’s where it gets interesting. If I were a naive presenter on the Dragon’s Den, I might go in and argue – 26m knives will be sold in the UK, at £5 each, makes a total market of £130m, ker-ching! (let’s ignore things like manufacturing and marketing costs for now).

    But, I suspect the dragons would have something to say about this. The next stage in the narrowing process is the most important and, I think, the most difficult – how many people will actually want to buy an Apple Knife? To continue our sizing process:

    • People in the world – 7bn
    • People who regularly eat apples – 1bn
    • People in the UK who regularly eat apples – 60m
    • Households – 26m
    • Households that will actually want one – 26m x n%

    And the key of course here is, what is the value of n? If we think everyone will want one, it’s 100%, great. But, if we’re being slightly more realistic, n could be as low as 0.01% – leaving us with a total market of £13,000 (26m x 0.0001 x £5) – somewhat less attractive as an investment opportunity. Or even less of course (I’m going off the idea more and more, as I think about it).

    I think the first parts of the market sizing, if not trivial, are much easier than the latter parts. It might not be easy to find, say, “The number of companies in the US that sell products online”, or whatever your top level numbers are for your business, but that’s a number which can, reliably be found – if I do the hard work to find that number of businesses, say 1.3m, then that number is correct and won’t change for a while.

    The latter numbers (or percentage multipliers) are very unpredictable however. But not completely – what are the tricks for improving the accuracy of this figure? I think this really depends on how new or old your market is. And this exists on a scale. With our Apple Knife example,  there are the following possibilities:

    1. We’re already in the specific apple knife business. We’ve been selling them for 30 years, and have been selling around 2,500 per year. We reckon our new model is a bit better than the old one, so we hope to see this go up to around 2,700 per year. But it might not, so a reasonable forecast for market size is somewhere between 2,500 and 2,700 – pretty accurate.
    2. We’re already in the “fruit cutlery” business selling around 5,000 kiwi spoons a year. We’ve got a pretty good understanding of the supply-chain, the market, we’ve spoken to our outlets, to see what they think etc, and have come up with estimates of between 1,000 and 5,000 apple knife sales a year based on that. This isn’t as accurate as “a new version of the same product”, but at least it’s close. There are also subtleties to do with how close different markets are – may be there’s a separate market for “exotic fruit cutlery” with particular dynamics? Or the soft-fruit vs hard-fruit cutlery markets are different in interesting ways? I have no idea, but the principle here is – you’re not starting from scratch.
    3. You are starting from scratch. You’re a company that currently makes electroplating chemicals and have lots of spare cash to spend; and you think apple knives is an interesting market for you. Ignoring concerns I might have that you have no idea what you’re doing in the new market, have no reach, no brand, no unfair advantages etc etc, you also have the issue that you have nothing to base your market sizing figures on – how on earth can you estimate these numbers (though see caveat below about stealing other peoples’ figures). You might have a go and estimate figures of between 1,000 and 20,000, but who knows?
    4. Brand new product/market. I’ve trawled Google, and I haven’t been able to find an apple knife for sale (I can’t imagine why!). So not only do you have no info about potential market size, but no-one does. Here, how do you know whether all 26m households will buy an apple knife, or not one single one?

    (NB: There’s a caveat here about access to competitors sales information. You might not be in the apple knife business yourself, but if you know a competitor who is, and have seen their sales figures – or can work them out from revenue etc – then that’s a great start. However, it doesn’t take into account massive differences such as market reach, brand, channels and other barriers to entry that differentiate the competitor from you. Nevertheless, looking at other companies’ revenue is a great check – if the biggest player in the market is only make £50,000 revenue per quarter from fruit-cutlery sales, that’s a good ceiling on your estimates..)

    Most examples I hit upon fall in to one of these four categories. A I say, the early parts of the calculation are relatively easy, but the latter parts, if your problem falls in to the last couple of categories – and most interesting innovations and product ideas do –  are very difficult indeed.

    And the basis of the problem – it’s almost impossible to predict take-up of a new product or a new innovation. If you’re producing a new laser printer, with slightly better functionality than others, at a slightly lower price, you can have a good stab at market sizing. But what if you’re innovating to provide a fundamentally different way of solving a pain-point – a pain-point which might not even be addressed at all at the moment? Though we all like the certainty of saying “This idea could make us £10m!”, we really are kidding ourselves. Instead, I prefer a more experimental, research based approach where we start on a new idea in a cheap or lean way (make a version of the apple-knife yourself and stand outside John Lewis, showing it to people and see how many would buy one), then start making forecasts when you have some idea of need and interest from the customers. E.g. if 1 in 1,000 people you asked said they’d buy an apple knife, that’s not a bad start. Though I think I’d be lucky to get that much interest..


  • Working on the Coalface

    Henry Moore Miners at Work on the Coal face

    Everyone who works in marketing and product management should be spending as much time as they possibly can with customers. Period. This is, of course, a bit of a bland and obvious statement (like all those marketing books that promise so much and deliver so little!) – we know this, we don’t have to be told again! But perhaps we do need to remind ourselves of why it’s so important, why it’s so dangerous to let this activity slip.

    I’m currently out in the US working the booth on a tour our company runs (called SQL in the City). This is a fantastic series of events which, at a first glance looks like our company just wanting to give something back to the community – free training, free books, giveaways and so on. And this is true: this is what we’re doing, and is a primary motivator for the tour because we believe (and I personally believe this very strongly) that supporting the community in a simple and altruistic way is one of the strongest feeders for the top of the funnel for our company.

    But a slightly more cynical person might suggest – “Hang on, isn’t this just a sales and marketing event? You’re just pushing product!”. And this is also true: obviously we’re using this as an opportunity to talk about our latest products, what we’re doing next and to show this to customers. And this is fine – there’s no bait and switch here, customers don’t mind us talking about this because 1) We’ve been upfront that we will do so, and 2) Because our products are great (I was once told that the big advantage of working in marketing for a company with great products is that “You’re just providing the opportunity for customers to find and use your wonderful products – they should be thanking you!”).

    But there’s a third reason, which we don’t really advertise and is, for me, the true value of the events – staying at the coalface with customers. Over the last 3 days I’ve probably spoken to around 40-50 customers, and I’ll speak to another 20 or more on Monday. I’m speaking to them about what we’re doing now, what we’re doing next. I’m speaking to advanced early adopters/innovators* about our vision for what’s to come, late/early majority people about current new products (“What do you think of this?”), and skeptics about existing and older products that have been tried and tested by thousands. I’ve talked to people in different industries, at different levels of seniority and there are even variations in viewpoints by geographical location.

    And, as ever, this has just been fabulously useful on a very practical level. Every time I speak to customer I adjust, refine and improve my perspective on what we should be doing. Sometimes these are very subtle nudges (“Mm, may be that idea for product X isn’t quite as simple as I first thought”) and sometimes quite big changes (“I’ve really overestimated how sophisticated late majority people in finance are, for these features – I need to re-think our whole marketing approach there”). One very practical and specific example from yesterday – we’re thinking about providing training packages for some of our products and I ran this past someone currently (not) working for the Federal Government. He told me that, for his department he can easily get budgetary approval for training – not a problem. But that he will never get approval for travel and hotel expenses. So for him, all training has to be onsite at his office (for which he can easily get approval), even if it’s more expensive than doing it somewhere else. This was something I had no idea about before yesterday.

    But there always tweaks and adjustments, always. And if you’re not speaking to customers all the time, you hit the significant problem of drift. This is the phenomenon where you start with a really great idea for a product (hopefully from talking to customers historically), and then you start to talk about and “develop” the idea back at the office. So you start with a great use-case (“I’ve just spoken to 5 law firms who say they really need something to automatically read paper documents, perform some OCR and store that data in a database”). You take that back to the office and start throwing it around – what if it did more than that? What if it classified documents as well? What if it provided some interpretation on top? What if it worked for multiple languages? What if it could store the data in the cloud? Etc etc. All great ideas I’m sure, but what would the customers think of the final product? Imagine taking this behemoth to a customer and his/her response being “Erm, I just wanted something cheap to scan in my documents – what’s all this complexity?”. Better to find this out earlier rather than later. Better to make small course corrections as you go along by re-forming and re-shaping the offering with customer input than only finding out at the end that you went way of course somewhere. NB: This is actually just a reflection of the standard Agile approach to product development – the second principle of the Agile Manifesto is:

    Welcome changing requirements, even late in development. Agile processes harness change for the customer’s competitive advantage.


    How can you make adjustments to your requirements if you don’t know what the customers want?

    So, nag over – go and see your customers. Go to a conference, call one of them up, take part in forums, email (though it’s a poor substitute for face-to-face), anything.

    * for definitions of these groups see Geoffrey Moore’s Crossing the Chasm – the 101 book for tech marketing.