Tuesday, March 5, 2013

Innovation is a Core Competency of a Successful CMO!

And this was clearly evident as several CMOs shared their success stories at Mass Tech Leadership Council's recent 2013 Marketing Summit.  CMO's and other marketing executives shared valuable insight on how to do "more with less" - the theme of the event.  Sure, as marketers we've been using that term at least since the Internet bust ~13 years ago; however, we've come a long way since then. Not only has marketing slimmed down from a staff perspective, but more importantly, we've developed a laser focus on being more relevant to our buyers and internal customers. In addition, we've developed a healthy obsession with metrics to demonstrate our value to the organization and better manage our precious budget. But even with this greater maturity, the worst thing we can do at this stage is lessen our drive for innovation.  Here are just a few of the key insights from this summit to help you and your marketing team keep innovation at the forefront of your marketing strategy and tactics:
  • Content is King:  Be a source of value for your buyers, even if your content strays from your product offering
    • Inbound marketing offers a significant opportunity for marketers to connect with customers, however, content used as part of this strategy must be of high value and relevance in an increasingly crowded (and noisy) environment
    • As Andy Zimmerman of Brainshark indicated, "We focus on idea generation content with our buyers." - Andy gets the fact that as marketers, we need to set the vision for our buyers and help them be successful in their job and career.
    • "A BtoB Marketing organization must be a content machine. A key success factor is to hire domain experts, or at least those that will become domain experts and trend watchers. These individuals must communicate about your key topic to your end users and influencers - it must be their passion." Christina Inge, eZuce
  • But Don't forget to market your content: A "build it and they will come" strategy is a sure path to failure otherwise.
    • Yes develop great content, however, market your content "gorilla" style. . . . no, I don't mean "Gangnam style" J 
    • Brainshark leverages "micro-campaigns" to get the greatest leverage out of their content, using email and other marketing channels
    • Try the pathways that are less followed.  Yes, some will fail, but that is the cost of innovation. (e.g., direct mail, new social media channels, etc.)
  • Your web site is still the front door to your company, so don't fall short in your first impression with your buyers
    • IDC's CMO Advisory Service indicates that 45% of a big ticket buyer's decision is made before they even say "hello" to your sales rep - and the web site is one of the top places they go as part of their decision process prior to meeting with your rep (in addition to their peers of course)
    • Develop customized and high quality messages and content to your buyers on your site, and ease the process for them to get to that information. "Message to someone while on your site, think customization." [Zimmerman, Brainshark]
  • The power of a successful trial or proof-of-concept cannot be underestimated!
    • Mike Ewing, CMO of LogMeIn, said it well, "A couple of years ago it was all about trial transactions with buyers; now, we need to allow buyers to achieve value through our trial interactions."
    • One CIO I spoke with at a recent IDC CMO & Sales Advisory meeting indicated, "We did a $3M deal driven by a $50K proof of concept chance that a vendor took on us."
  • Hire and sustain an analytics team within your marketing organization
    • I don't mean a simple database analytics team.  You need individuals that can not only analyze data, but more importantly, can extra value from that data that is relevant to your business, and communicate that value/insight in a simple and cohesive manner to drive impact in your organization.  No easy feat.
    • "Two top steps for a CMO to secure a solid relationship with their CEO?. . . set clear expectations and base your strategy and results on METRICS." as indicated by several CMO panelists at the event. . . . And you'll need a "crack team" of marketing analysts to help accomplish this objective.
    • IDC:  "50% of new marketing hires in 2013 will have technical backgrounds." IDC's CMO Predictions for 2013
  • Marketing Mix
    • The "right marketing mix" varies by company and is dynamic throughout the year. 
    • Don't be afraid to experiment with different marketing strategies and tactics: "As with any VC firm, the CMO must leverage a diverse set of marketing tactics to 'beat the market'", Ellie Mirman, HubSpot.
    • Consider viewing your marketing investment allocations from different perspectives:
      • IDC CMO Advisory data: "B2B Tech CMOs are spending approximately 30% of their budget on digital marketing programs. This is up from 12% in 2009."
      • "80% demand gen of investment; 10% thought leadership; 10% sales acceleration." Mary-Katherine McCarey, Ipswitch
      • "57% acquisition (new logos), 13% retention, 30% other." Melodye Mueller, NaviSite
Please share your comments below, or feel free to reach out to me directly at mgerard@idc.com to continue the conversation on what it takes to consistently deliver value as a BtoB CMO.

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Our Scary NHS - 2


Postponing our appointment
"The UK has had universal free health care and public health programmes for more than six decades. Several policy initiatives and structural reforms of the health system have been undertaken. Health expenditure has increased substantially since 1990, albeit from relatively low levels compared with other countries.... However, the UK performed significantly worse than the EU15+ for age-standardised death rates, age-standardised YLL rates*, and life expectancy in 1990, and its relative position had worsened by 2010."
Today's report in the Lancet is a timely companion to yesterday's blog. Not that it tells regular BOM readers anything particularly new about the under-performance of our nationalised healthcare system, but the facts need to be known much more widely, and this Lancet study has certainly grabbed the headlines.

The study focuses on premature death, and as we've blogged many times, compared to its counterparts just across the Channel, the NHS is pretty poor at keeping us alive. In the BOM book we summarise the key figures on premature death, including our low survival rates for cancer and heart disease. In fact, every year around 50,000 of us - the population of Salisbury - die from diseases which should in theory have been treatable (so called Mortality Amenable to Healthcare). Of course, no healthcare system manages to prevent all such deaths, but the European social insurance systems do much better.

And although our life expectancy has increased hugely under the NHS, nobody can seriously argue that's down to the NHS itself. While life expectancy has increased by around 13 years since the NHS was founded, in the previous five decades it had increased by 20 years. These are worldwide trends, and they reflect improvements in medical knowledge and diet much more than the efforts of our underperforming NHS.

However, despite the headlines, the Lancet article did not set out to be an NHS hatchet job. Rather, it puts the blame for our poor showing on our own unhealthy lifestyles - too many horse burgers and not enough press ups. And the report's authors clearly want more state intervention to control our unhealthy lifestyles. More public health programmes, more booze taxes, more fat taxes, more sugar taxes, more indolence taxes, etc etc.

You can certainly see how you get there - if we could all be hassled or forced into living healthier lives, we'd almost certainly live longer and probably save the NHS a shed-load of cash. It's exactly the kind of thinking that drove Labour's anti-obesity programme, although somehow they never did get round to fat and sugar taxes.

Except of course, that's not how the better performing countries do it. Although France, Spain, and Italy all outperform us in this study, my own extensive research suggests that their booze taxes, at least, are an awful lot lower than ours. The issue is rather more complex than comparative tax rates and public education campaigns.

What this study really highlights is that when it comes to health, we have a lot to learn from our neighbours. None of them have a nationalised health system, yet most of them enjoy longer healthier lives than us. Instead of pretending our healthcare system is the envy of the world, we should have the humility to look and learn.

PS I've just been listening to Sir David Nicholson being grilled by the Health Select Committee. I must say I admire the guy's sheer nerve. Yes, he says, terrible things happened at mid-Staffs while I was in charge of the regional health authority, but I knew nothing about it. Barclays tried that one, but Diamond still had to walk the plank. And even if Nicholson didn't know, he surely should have done. As we've said many times on BOM, you can delegate authority, but you can never delegate responsibility.

*YLL is Years of potential Life Lost

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Monday, March 4, 2013

Monday Morning Musings

Markets opened on a weak note this morning after some disappointing action overseas.  There were no notable economic releases in the US this morning.

Overnight, Asian markets were mostly lower after officials in China announced more measures to cool rising property prices.  The measures include restrictions on home buying, implementing higher interest rates on second homes, and more strict enforcement of the 20% capital gains law on home sales.

Last night there was also a cautionary piece on 60 Minutes about China and how its property bubble has led to ghost cities where buildings have been erected but nobody has moved in.  In reaction to the news, China's property index plunged -10% and the Shanghai Composite shed -3.7%.  Hong Kong was also -1.5% lower in sympathy.

European markets are mixed this morning.  The UK's PMI came in at 46.8, which was below expectations.  And Italy's government is still in limbo with the upper house deadlocked.

The dollar is slightly higher today and commodities are mixed.  Oil prices are weaker near $90.33 while gold prices are up a bit to $1576.  Copper is a tad lower while ag prices are mostly flat.

The 10-year yield is flat around 1.85%.  And the volatility index is up 2% this morning still above the 15 level around 15.65.

Trading comment: The S&P 500 was basically flat for the week last week.  Although there were some pullbacks along the way, dip buyers stepped in quickly such that the index usually closed near its highs for the day.  Overall this is constructive action for the bulls, and those waiting for a deeper pullback continue to be frustrated.  We continue to trim stocks that have had strong runups and appear to be extended in prices.  At the same time we have been willing to add to stocks that have pulled back or are exhibiting fresh breakouts.  This type of rotation looks set to continue.  Consumer staples stocks are the ones that look the most vulnerable to a pullback.

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Our Scary NHS


The bald facts**

Two years away from blogging, and it's time to check how the NHS is doing under its current consultant Mr N.H.S Cameron.

We have to start with mid-Staffs. It ought to be old news - we started blogging it in 2009 - but last month's Francis Report has shone an even more scary light on how an NHS Foundation Hospital (yes, a Foundation Hospital!) managed to kill as many as 1200 of its patients.

I've been reading the report, intending to quote some of the many personal accounts of horrific standards of care meted out to patients: loved ones left lying for hours in their own urine and faeces - their cries for help ignored by staff - left without food and water, illnesses made worse rather than cured, and bed sores, broken bones, gashes, and hospital infections just a routine part of the grim patient experience.

But the more I read, the more upsetting it became. These are real people talking, and to use their anguished accounts merely to make a blog point feels grossly intrusive and disrespectful. So let's simply quote Robert Francis's own summary:
"I heard so many stories of shocking care. These patients were not simply numbers they were husbands, wives, sons, daughters, fathers, mothers, grandparents. They were people who entered Stafford Hospital and rightly expected to be well cared for and treated. Instead, many suffered horrific experiences that will haunt them and their loved ones for the rest of their lives."
As for management claims that the original press reports had been exaggerated:
"A number of staff and managers at the hospital, rather than reflecting on their role and responsibility, have attempted to minimise the significance of the Healthcare Commission's findings. The evidence gathered by this Inquiry means there can no longer be any excuses for denying the scale of failure. If anything, it is greater than has been revealed to date. The deficiencies at the Trust were systemic, deep-rooted and too fundamental to brush off as isolated incidents."
The harrowing events at Mid-Staffs highlight many of the critical NHS failings we've blogged in the past. In fact the Report sometimes reads like an excerpt from BOM:
  • target-driven priorities – a high priority was placed on the achievement of targets, and in particular the A&E waiting time target. The pressure to meet this generated a fear, whether justified or not, that failure to meet targets could lead to the sack.
  • disengagement from management – the consultant body largely dissociated itself from management and often adopted a fatalistic approach to management issues and plans. There was also a lack of trust in management leading to a reluctance to raise concerns.
  • low staff morale.
  • isolation - not as open to outside influences and changes in practice
  • lack of openness - One particular incident concerning an attempt to persuade a consultant to alter an adverse report to the coroner
  • acceptance of poor standards of conduct – an unwillingness to use governance and disciplinary procedures to tackle poor performance... incidents of apparent misconduct which were not dealt with appropriately, promptly or fairly.
  • denial – In spite of the criticisms the Trust has received recently, there is an unfortunate tendency for some staff and management to discount these by relying on their view that there is much good practice and that the reports are unfair.
The management of the Trust clearly bears a heavy responsibility for all this, and the Report shows how they made a series of ill-informed and ultimately catastrophic decisions about resourcing and organisation. It also shows how they routinely dismissed and suppressed criticism, even when confronted with the cold hard statistics of rampant death on their wards. 

Ah yes, those cold hard mortality statistics. BOM always tries to support argument with stats, but when it comes to public sector performance, the stats so often turn out to be damned lies, fabricated to hit targets and tick boxes rather than illuminate the truth. And so it seems to have been with hospital deaths.

The problem is that not all hospital deaths have been counted in a hospital's official mortality stats. For example, hospitals were allowed to exclude the deaths of those receiving palliative care (ie terminal patients who were merely being given pain relief while they died). So at the Wolverhampton Hospital, deaths recorded under palliative care were bumped up from 2% to 20%, double the national average; deaths from other causes - the ones that did count in the official stats - were correspondingly reduced. The Royal Bolton Hospital seems to have pulled a similar stunt with septicaemia deaths, which are also excluded from official mortality figures. And there are probably countless other examples around the country.

Now of course, all of this took place under the previous regime, so we can't blame Mr N.H.S. As a Conservative he fully understands the disastrous consequences of the old Stalinist regime, He's pledged to abolish targets, stop box-ticking, and enforce accountability via the criminal law if necessary.

Well, er, he kind of suggested that's what he'd do. What he's actually done seems to fall some way short.

Most extraordinarily, he has not fired the Chief Executive of the NHS - Sir David Nicholson - even though at the time of mid-Staffs disaster Nicholson was first in charge of the local Strategic Health Authority, and then CEO of the entire NHS. Long-time readers may also recall that when we first encountered him at a Public Accounts Committee hearing in 2006, we were somewhat less than impressed. He should be gone.

And then there are those targets. I've perused the Department of Health website desperately trying to pin down what's actually happened to them, but I'm blowed if I can work it out. It's possible they've largely been abolished, although I'd need to do much more digging to find out for sure. And on the ground - ie down in the hospital wards - personal experience just before Christmas suggests the nurses are still spending just as much time ticking boxes and filling in forms, rather than caring for patients.

Besides, even if the targets and the tick-boxes have gone, there's a much more fundamental problem with the NHS. And it's one that bubbles just under the surface of the entire Francis Report: the insidious effect of unaccountable institutionalised power. 

We've recently seen how corrosive this can be in other organisations, from the Catholic Church to the Liberal Democrats: powerful men abusing their positions, and even when they're discovered, continuing to enjoy the protection of an institutional cover-up. And in the case of mid-Staffs, Francis spells out how staff felt intimidated by management, making them reluctant to report problems, still less blow whistles. From the disassociated fatalism of the consultants through to the cowed cowering nurses, nobody was prepared to stand up for fear of losing their job.

But most striking of all is what Francis has to say about the complicity of patients and their relatives:
"Patients’ attitudes were characterised by a reluctance to insist on receiving basic care or medication for fear of upsetting staff."
We all recognise this. We've all been there. If you complain, are you just going to make things even worse? You or your loved one are in an extremely vulnerable position, entirely dependent on the service provided by staff. If you piss them off, who knows what might happen? You are stuck, and your only hope is to schmooze and nudge them into doing the right thing.

Being a member of the sharp-elbowed middle class, I like to think I'm fairly good at doing that. Disgusting myself, I'm prepared to use every trick in the book - crawling, sympathy, flattery, the works. Often that does the trick. But it shouldn't be necessary, and what if you're no good at it? And what if it fails? Personally, I've developed a technique of suggesting escalation to higher authority without actually threatening  to do it: more along the lines of "look, I can see you're doing your very best, but you're obviously stretched beyond the limit, and I've got to consider my sick child. I'm seriously concerned and I can't just stand by... who would I talk to?"

Of course, if this was Tesco, you wouldn't need to do any of that. You'd just take your business elsewhere - no fuss, no schmooze, no problem. Or rather, there is a problem, but it's Tesco's not yours. And either they ensure there can never again be horsemeat in their value meals, or their biz nosedives.*

The power of choice and competition. The power of simply being able to take your custom elsewhere. The power of a paying customer rather than a helpless supplicant. So much more direct and effective than hoping Mr N.H.S can somehow sort the problems before we get killed.

* Apologies to Lost Nurse for getting back on the Tesco worship so soon. We do realise that healthcare is not quite the same as groceries, and we will try to limit our grocery sermons.

** Excellent graphic from MHP Communications.

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Sunday, March 3, 2013

The Secret to Marketing to the Line-of-Business Executive

Many technology companies have directed their marketing and sales teams to look for business beyond the traditional IT customer.  The secret to marketing to the line-of-business executive is to think like they do. Huh? Is this a secret?

Imagine you have a cute little terrier that you love dearly but who chews up everything in sight.  You fear that you will have to give the dog away if he keeps wrecking things.  As a super-busy person you rarely have time to read articles, however, one of the articles below will stop you in your tracks. Which one?
       a) Animals around Our Home
       b) Dogs: What do they do every day?
       c) Why We Love Terriers
       d) How to Stop Terriers from Destroying Your Home

You know that the answer is D.  And if each of the authors had a dog training business, which one are you most likely to contact?

Everyone gravitates toward things that they believe are made "just for me" and ignores things that are made for "someone else".  It doesn't matter if you are trying to get the attention of the Chief Marketing Officer, the Vice President of Human Resources, the head of pediatric medicine, or a  terrier owner. The more completely you enter to your customer's world, the more likely you are to be successful with them.

Do the Work
It's a matter of simple economics.  As the busy owner of the errant terrier, you do not want to waste your precious time reading articles that are of marginal value (Animals around Our Home?).  Nor are you willing to do the heavy cognitive lifting needed to mine a useful nugget from a broader purpose article (Why We Love Terriers?). 

If you want to attract and serve the line-of-business customer, then YOU (or at least someone in your company) must do the heavy cognitive lifting learning about your customer's world. YOU must spend your precious time (and money) to customize your offerings and messaging for them.  There is simply no other way.  Someone has to build the cognitive bridge between your world and your customer's. Your customer will not do it – so that leaves only you.

Avoid the "Vertical Slap"
Line-of-business customers will feel annoyed and betrayed if you evade the work of customization by using a technique that I call the "vertical slap". The "vertical slap" gets its name for the unfortunate practice of slapping a picture of a nurse on a regular, old, horizontal, campaign and claiming that you market to the healthcare vertical. 

Don't be superficial. Do the work. At least one person on the campaign team has to bring direct experience in the line-of-business focus area. Alternatively, at least one person has to acquire this deep knowledge. (HINT: in addition to understanding the line-of-business, you may also need to invest in understanding the differences between the worlds of different executive levels – for example, a CMO thinks differently than a Director for Marketing).

Don't be cheap. Spend the time and the money. You can either pay up front for customizing content and offerings – or you can pay down the line with low conversion rates.

Actually, the secret to marketing to the line-of-business executive is not a secret. It just takes work.

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Friday, March 1, 2013

Stocks Rebound From Early Dip

The markets started out of the gate on a weak note, but have already recouped most of their early losses.  Overnight foreign markets were fairly weak, in addition to a weak close here for US markets yesterday.  But some solid economic data led to some early dip buying.

The ISM Index for February came in better than expected at 54.2, its highest level since June 2011.  Also, the Univ. of Mich. Consumer Sentiment survey for February rose to 77.6 from its previous reading of 76.3.  So consumer sentiment has been bouncing in recent readings. 

Asian markets were mostly lower overnight after the latest Chinese PMI reading declined to 50.1.  That's still above the 50 level that marks the line between expansion and contraction, but its the lowest reading since last September.

In Europe, markets are also lower led by a -2.2% decline in Italy.  Italy's PMI came in worse than expected at 45.8.  The country's debt-to-GDP ratio hit its highest levels in more than 20 years.  The overall Eurozone PMI came in slightly ahead of consensus at 47.9 (still in contraction zone) and the Eurozone overall unemployment rate ticked up to 11.9%.

The 10-year yield is lower again to 1.85%, and not back below its 50-day average.  The VIX is bouncing 2.8% back near the 16 level.

Trading comment: The first day of the month has seen gains in most recent months with new flows coming into equities.  Today the market bounced from its early losses, but has been fading a bit since.  It's still early, but a weak close today would likely mean more choppiness and consolidation next week.  March is a month often known for heightened volatility.  So we want to continue to manage our risk closely.  A further pullback in the market would likely offer a good opportunity to scale into market leading stocks that have been too extended to chase.  Have a good weekend--

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Recent Bonfires - 89


It's high time we had another bonfire round-up:

Wrong kind of railway management costs us £50m+ "Civil servant failures over the West Coast rail contract will cost taxpayers “at least £50 million”, a report by MPs said today. There was a lack of leadership at the Department for Transport (DfT) and a failure to "get basic processes right" over the West Coast fiasco, the report from the House of Commons Public Accounts Committee said. The department failed to learn from mistakes made in previous projects and senior managers failed to apply common sense during the West Coast bidding process... Bob Crow, leader of the RMT transport union, said: "The stench from the fall-out of the West Coast franchise continues to hang over Britain's transport industry as it becomes clearer with every examination that the ministers responsible for this shambles could not be trusted to run a whelk stall let alone multi-billion Government contracts." (Independent 26-2-13)

Wrong kind of cop shop costs us £21m "A state-of-the-art police station is to cost taxpayers a total of £21 million over the next 30 years, even though it is closed to the public. The front desk at the station, which opened 11 years ago in a 30-year private finance deal, is shut to save costs, and has been replaced by a mobile police van in the car park for eight-hours-a-week. But police are still committed to handing over £700,000-a-year for the station at Ammanford, Carmarthenshire, South Wales. The total cost will be £21m - almost 10 times the cost of building the station. Acting Chief Constable Jackie Roberts admitted the station is 'too costly' and 'does not provide the public with value for money'. (D Mail 27-2-13)

Wrong kind of military kit costs us £6.6bn "The Ministry of Defence is squandering billions of pounds on kit and supplies it does not need while trying to save money by getting rid of troops... MPs on the Commons’ Public Accounts Committee found at least £6.6 billion of stock was either unused or over-ordered... [There are] enough spare parts for the Nimrod MR2 maritime patrol aircraft to last 54 years: the spy plane was scrapped in 2009." (D Mail 28-2-13)

Wrong kind of EU rules cost us £850k "Taxpayers in Britain are paying hundreds of thousands of pounds a year for Polish pregnant women to return to their home country and give birth, new figures reveal. Under EU law anyone living and working in Britain is entitled to free treatment in any other member state. Around 500 Poles returned to the Eastern European nation to have their babies in 2012, with the NHS footing the bill. Each birth costs the NHS £1,631, meaning the births of babies to Polish mothers cost Britain around £850,000 last year. The regulations were originally set up to ensure emergency healthcare was available between member states across the EU." (D Telegraph 25-2-13)

Wrong kind of taxman costs us £33m "The cost of hanging on the phone to the tax office was a collective £33m last year, with many frustrated callers paying more than £1 a call. Figures released by the National Audit Office (NAO) showed that nearly a quarter of calls to the Revenue went unanswered while 6.5m people in the first six months of this financial year were left waiting for more than 10 minutes for someone to help them. Customers who call HMRC from their mobile phone face the steepest charges, paying up to 41p a minute to phone an 0845 number or 40p a minute for an 0345 number. Even those calling from their landlines will pay up to 10.5p a minute, depending on the time of day." (D Telegraph 18-12-12)


This week's bonfire total: £6,704,850,000

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