Corporate Responsibility Magazine (the new name of CRO Magazine) has announced its 11th annual 100 Best Corporate Citizens List.  Hewlett-Packard, once tainted by a 2006 boardroom espionage case that brought down its chairman, topped the list. The Palo Alto, Calif., tech giant beat out the other companies considered–those that make up the Russell 1000 large-cap index–because of its high rankings in categories like corporate governance, philanthropy and environmental impact.

Hewlett-Packard had ranked fifth in 2009 and bumped Bristol-Myers Squibb from the top spot. Gabi Zedlmayer, the vice president of HP’s office of global social innovation, credits the company’s philanthropic efforts for the ranking, particularly its $23 million in “innovation grants” to universities. Good marketing has helped too. “We’ve done a better job of communicating the progress we’re making,” Zedlmayer says.

The 100 Best Corporate Citizens list, now in its 11th year, ranks companies based on publicly available information in seven categories: environmental impact, climate change, human rights, philanthropy, employee relations, financial performance and governance. The list’s creators assign a 19.5% weighting to environmental impact and employee relations, because they think they are what consumers, shareholders and employees care most about. Technology and electric utility businesses dominate the 2010 list, which has 25 of them. “Electric utilities are already highly regulated and transparent, and tech companies are young and mostly venture capital-backed and accustomed to transparency and dealing with investors,” says Jay Whitehead, the publisher of CRO.

Among this year’s high-profile no-shows: Google, which Whitehead describes as “one of the least transparent companies ever.” “Google’s opacity is high for a tech company,” he says. “They made a conscious decision early on not to disclose a lot, because they thought it would make them less competitive. ’Don’t be evil’ is their motto, but ‘Don’t be transparent’ is part of their culture.” Google rival Microsoft ranked No. 14.

The list suggests that companies have ramped up their do-gooding ways, or are at least doing a better job of promoting them. Between 2009 and 2010 the top company’s score improved by 66%, and the average score of all companies improved by 19%. A low score denotes good corporate citizenship, and the aggregate score of the top 100 companies was 30% less than the aggregate score last year.

Forty companies that made the 2009 list disappeared from it this year, including Goldman Sachs, which had the same score as last year. Only three companies, Intel, Starbucks and Cisco, have made the list all 11 years.

The 100 Best Corporate Citizens are selected from among the large-cap Russell 1000 companies, based on data provided by leading ESG investor data firm IW Financial.  More information is at www.thecro.com.

For information on how to enhance your corporate citizenship strategies, contact M Squared Consulting at msquared@msquared.com or 1-888-818-2505.

In this economy, many people are in transition and looking to reinvent themselves.  Many can take heed of the lessons from author and New York real estate legend Barbara Corcoran.  Corcoran offers 10 rules for a career reinvention she discovered the hard way and by knowing herself:

1. There’s no such thing as part time: “If I was going to succeed I knew I had to work 40-60 hours a week with that fire in the belly.”

2. You can’t change your wiring: When Corcoran’s copy machine broke down, she hired someone to fix it, instead of attempting to do it herself. She had to treat herself as a business leader and not get bogged down in tasks she hated. So she spent money hiring someone, and spending money is something she loves to do and is good at.

3. Good things come out of insecurities: Corcoran’s “D-student” past only fuels her to work harder.

4. Girlie traits that once worked for you when you were younger can’t be relied on anymore: The charm she counted on when she was younger, especially when working with men, changed. She couldn’t play naive anymore — she wasn’t. “The intuitive stuff got in the way,” she said. So she presented herself as a realist, someone who takes their passion seriously.

5. The greater the success in a previous career the bigger the insult when you’re not taken seriously: Producers only called her back to get real estate advice.

6. Reinvent yourself in stages: “You have to reinvent yourself in chunks, little chunks, even if you like a nice neat picture.”

7. Contacts in your old field are totally useless: “Once you leave your business you’re old news.” Yes you have to start all over in making contacts — don’t forget the “thank you” follow-up e-mails.

8. In building new contacts, focus on young people: They’re the ones who are moving up, becoming the bosses.

9. Have a sense of belonging in online social networking: She missed her community at work the most but found a source of encouragement online. “Tweeting gives you a quick sense of belonging — an opportunity to build a community with people…It’s not a substitute but it’s nice,” Corcoran says of watching her Twitter followers grow and respond positively to her attempts to “make it” again.

10. Talents in your old business are useless in the new one: It’s a whole new jungle.

If you are a seasoned professional looking to reinvent yourself, consider joining the industry’s premier network of consulting professionals by visiting https://consultants.msquared.com/cfdocs/msquared/consultantlogin.cfm

The cover story in the current issue of BusinessWeek entitled “The Permanent Temporary Workforce” is a fascinating read about the state of the American workforce.  The article describes the hardships faced by those affected by layoffs, and how many companies are turning to temporary help to protect profits in the economic downturn.

But in contrast to similar articles in recent years, the authors here point out that the current recession has fueled a “leadership on demand” phenomenon, meaning that many of the temporary workers are white-collar professionals, not “sneaker-footed admins”.  Many are seasoned professionals who relish the flexibility of a free-agent lifestyle.  “People with sought-after skills can earn more by jumping from assignment to assignment than they can by sticking with one company,” the authors write.

Déjà vu?

In her groundbreaking book, “A New Brand of Expertise: How Independent Consultants, Free Agents, and Interim Managers are Transforming the World of Work,” published in 2001, M Squared Consulting founder and CEO Marion McGovern tackled this very subject in some depth.

In particular, in the chapter about why many professionals choose “free agency”, Ms. McGovern’s writings are more relevant today than ever:

“Whether it is control over where they work, their hours, or their vacations, overwhelmingly it is a desire to make work fit into their lives and not vice versa.  One of our consultants of Dutch descent explained that she became an independent practitioner because she thought that American vacation structures were untenable; being used to at least six weeks of vacation annually, she couldn’t continue in the American mode of two weeks per year.  In today’s 24×7 world, time has a currency all its own.”

She continues….

“Some consultants want control over what they do, a sphere of influence that as a mere mortal in a large enterprise was beyond their reach.  At M Squared Consulting, we see this often with the alumni from large consulting firms.  Exposed to many types of industries and products, they may have been able to indentify the type of work they most enjoyed, but they may not have had the opportunity to do it again.  For these individuals, the type of work – the “what” – is most critical.

So in addition to being prescient, McGovern’s book illustrates that there are some long-term trends in place affecting American business, and the savvy consultant can take advantage of the opportunities that present themselves and thrive in today’s work environment.  And challenge, pay, and control are not the sole discretion of either the employer or employee.

With its collaborative approach, long-term relationships, and commitment to the success of both its clients and consultants, it’s no wonder that M Squared Consulting attracts top-tier professionals to its network.  To join the M Squared consultant community, please register on our website at http://www.msquared.com/consultants/join.html

What do Bill Gates, Warren Buffett, Charles Schwab, Avon’s chief executive, Andrea Jung, and the late publishing giant Katharine Graham have in common?  According to a recent Forbes article, each described themselves as introverts.

A surprise perhaps, but it’s estimated that 40% of executives are introverts, and most admit that at some point in their leadership journey they’ve had to work to overcome being disregarded or misunderstood because of their quiet temperament.

The qualifications for leadership are not easily understood or so readily apparent.  But fortunately M Squared can help.  Since 1988, M Squared Consulting has been providing critical business solutions to our clients by delivering seasoned, targeted consulting expertise tailored to our clients’ unique needs.

According to Forbes, there are five key characteristics that help introverted leaders build on their quiet strength and succeed:

1. They think first, talk later. Introverted leaders think before they speak. Even in casual conversations, they consider others’ comments carefully, and they stop and reflect before responding. One executive tells me that he sits back and listens to his leadership team’s ideas and proposals, often using silence to allow even more thoughts to bubble up. Learning by listening, not talking, is a trait that introverts consistently demonstrate. They also use their calm, quiet demeanors to be heard amid all the organizational noise and chatter. (One thoughtful, reasoned comment in a meeting can move a group forward by leaps and bounds.) In fact, the most powerful person in the room is often the most quiet. Additionally, an introvert’s tendency to be more measured with words is a major asset in the current economy, when no leader can afford to make costly gaffes.

2. They focus on depth. Introverted leaders seek depth over breadth. They like to dig deep, delving into issues and ideas before moving on to new ones. They are drawn to meaningful conversations, not superficial chitchat, and they know how to ask great questions and really listen to the answers. In a recent interview with The New York Times, Deborah Dunsire, M.D., president and chief executive of Millennium, a Cambridge, Mass., biopharmaceutical company, said, “In addition to conducting organizational surveys and holding town hall meetings, I schedule walk around time, just stopping by offices. … I would just say, ‘Hey, what is keeping you up nights? What are you working on? What’s most exciting to you right now? Where do you see we can improve?’” Dr. Dunsire maintains that by pursuing this kind of in-depth questioning–something that introverted leaders do exceptionally well–executives can learn what’s actually happening in the far reaches of their organizations and engage and retain their top talent.

3. They exude calm. Introverted leaders are low-key. In times of crisis, they project a reassuring, calm confidence–think President Obama–and they speak softly and slowly regardless of the heat of the conversation or circumstances. Whenever they get ready for a meeting, a speech or a special event, their secret to success can be summed up in one word: preparation. They often plan and write out their meeting questions well in advance, and for important talks and speeches, they rehearse out loud. They also act “as if”: One executive tells me that he pretends to be James Bond before major industry conferences. It makes him feel more cool and confident. They psych themselves up internally, too, by quieting negative thoughts and framing the upcoming experience more positively. Prior to networking events, Bob Goodyear, an Atlanta-based information technology leader, tells himself, “I can do anything for 30 minutes.”

4. They let their fingers do the talking. Introverted leaders usually prefer writing to talking. This comfort with the written word often helps them better articulate their positions and document their actions. It also helps them leverage online social networking tools such as Twitter, creating new opportunities to be out there with employees, customers and other stakeholders. For instance, using Best Buy’s Blue Shirt Nation, an internal social network for employees at the electronics superstore, senior management and sales associates can connect continuously to discussing workers’ feedback and ideas. I know one chief financial officer who writes a daily internal blog and in a recent posting described how he made “a good presentation great” by practicing. In so sharing his experience, he not only showed openness and honesty but also provided coaching to thousands of employees.

5. They embrace solitude. Introverted leaders are energized by spending time alone. They suffer from people exhaustion and need to retreat to recharge their batteries frequently. These regular timeouts actually fuel their thinking, creativity and decision-making and, when the pressure is on, help them be responsive, not reactive. When introverts honor that inner pull, they can do their best work. In managing interruptions, they also manage people’s expectations. When asked to respond to requests or ideas, Martin Schmidler, a vice president at a national food service organization, often tells his team that he needs time to absorb what’s being asked or presented. He’s clear on how and when he’ll get back to people, and he consistently follows through on his commitments. This clarity and consistency helps him build trust with his team.

It’s clear that having the right executive and the right consultants in place is critical.  M Squared consultants come with the qualifications, judgment, and expertise to meet your specific criteria and deliver results. They bring fresh perspectives and best practices to your business need. From the very first day through completion, M Squared makes an impact.

A 2008 HBR article on Strategy offered that “most executives cannot articulate the objective, scope, and advantage of their business in a simple statement.  If they can’t, neither can anyone else.”  It’s a challenging statement, certainly, and a powerful reminder that employees will become frustrated and resources wasted when no clear strategy exists for a company or its lines of business.  Many companies look to M Squared Consulting when faced with this dilemma.  With guiding expertise, clients can develop a well-understood statement of strategy that aligns employee behaviors with business goals.

In a related editorial on talent strategy, Dr. John Sullivan, a well-known thought leader in HR, offers that an agile talent management strategy can be the perfect model for today’s economy. 

An excerpt:

“As the general business environment has become more turbulent, and technology combined with consumer demand has driven significant shortening of most product lifecycles, the complexities of delivering really strategic impact through talent management have ballooned. While competency management systems, career path planning, and multi-year development cycles may have made sense decades ago, that simply is not the case today.

Organizational agility is something the majority of human resource functions are not designed to enable or support. In fact, most traditional HR systems, including those in talent acquisition, hinder agility by imposing rigid control structures with process cycles that take months and even years to execute.

You can’t hit a moving target that changes location unpredictably every six months using processes that take 18 months to execute!

Examples of Agile Talent Management

A key characteristic of organizational agility is the ability to rapidly shift idle resources. Like most airlines, Southwest Airlines was affected significantly by the most recent downturn in the U.S. economy. While competitors were busy slashing payrolls, Southwest instead cut back on hiring and temporally redeployed idle recruiters (more than 80 of them) into other areas of the business where work needed to get done, in line with the recruiter’s abilities. The shift enabled Southwest to maintain access to the talent it would need when hiring demand ticked up and simultaneously enabled the organization to catch up on project work elsewhere that added value in the current economic state.

While using idle recruiters to accomplish work elsewhere in the organization was a new trend this downturn, it by no means is a stellar example of organizational agility.

Enterprise-wide efforts that are emerging include:

• Temporary redeployment of top performers into development roles where the primary mandate is knowledge-sharing and collaborative solution development to emerging issues (Numerous companies)
• Creation of flexible talent pools that grant temporary project-based access to top talent by managers without budget or need for permanent hires (Coors)
• Business unit/team prioritization schemas that enable simultaneous investment/cost-containment efforts across the enterprise (HP)
• Counter-cyclical process execution, i.e. taking advantage of economic cycles by executing growth-mode processes during downturns and vice versa (Slide-College Hiring)
• Redefinition of labor needs to allow for extensive use of contingent and alternative labor types that aid real time increases/decreases in labor cost (Google)

The unifying theme in these examples is that firms need a strategy that allows them to respond rapidly with a customized solution, whenever something in the business environment changes.”

So, what both HBR and Dr. Sullivan are reinforcing is that the value of a clear, agile strategy cannot be underestimated.  It will energize and empower employees, and raise the long-term financial performance of your organization.  Contact M Squared Consulting to learn more.

Every business goes through ups and downs, and in this economy the challenges are more daunting than ever.  But this isn’t the first recession and it won’t be the last. Successful companies, even in tough times, keep their eye on the prize and know that down markets are actually a great time to retrench and take risks.  M Squared Consulting can guide you through choppy waters, with experienced consultants that help clients evaluate opportunities and implement new ideas.

So, with a nod toward much future success, we offer some classic CEO quotes that matter now more than ever, along with a takeaway that can help your business today in today’s economy.

“You have to pretend you’re 100 percent sure. You have to take action; you can’t hesitate or hedge your bets. Anything less will condemn your efforts to failure.”

Andrew Grove, former CEO, Intel

(Takeaway: Come up with an idea, a strategy, a plan, and act!  Now.)

“I didn’t see it then, but it turned out that getting fired from Apple was the best thing that could have ever happened to me. The heaviness of being successful was replaced by the lightness of being a beginner again, less sure about everything. It freed me to enter one of the most creative periods of my life.”

Steve Jobs, CEO, Apple

(Takeaway: Failure and loss, especially getting fired, can really invigorate you and your career.)

“When you innovate, you’ve got to be prepared for everyone telling you you’re nuts.”

Larry Ellison, CEO, Oracle

(Takeaway: Behind most great and successful products or businesses are entrepreneurs who were turned down a hundred times.)

“Your most unhappy customers are your greatest source of learning.”

Bill Gates, Chairman and former CEO, Microsoft

(Takeaway: Spend time understanding and analyzing your mistakes and failures. Any customer that turned you down - if you can get them to talk - is a tremendous resource for boosting your business.)

“… be skeptical of history-based models. Constructed by a nerdy-sounding priesthood using esoteric terms … these models tend to look impressive. … Beware of geeks bearing formulas.”

Warren Buffett, CEO, Berkshire Hathaway

(Takeaway: Buffett was talking about investing, but his advice is insightful. If you’re a reasonably intelligent and experienced business person, trust your gut more than research.)

“A lot of companies have chosen to downsize, and maybe that was the right thing for them. We chose a different path. Our belief was that if we kept putting great products in front of customers, they would continue to open their wallets.”

Steve Jobs, CEO, Apple

(Takeaway: While cash conservation is critical for many businesses, big companies that think cost-cutting and a nice bottom line will get them out of this cycle in good shape are in for a surprise.)

“Watch, listen, and learn. You can’t know it all yourself. Anyone who thinks they do is destined for mediocrity.”

Donald Trump, CEO, Trump Organization

(Takeaway: Do some networking with smart people you haven’t seen in a while, read some books, take a class, do something to expand your knowledge and your horizons. You’ll be amazed at what ideas pop into your head.)

“The pending merger with XM will offer unprecedented choice for consumers and create tremendous value for stockholders.”

Mel Karmazin, CEO, Sirius XM

(Takeaway: Don’t listen to BS. If it looks like a duck and walks like a duck, it’s probably a duck.)

“Success breeds complacency. Complacency breeds failure. Only the paranoid survive.”

Andrew Grove, former CEO, Intel

(Takeaway: This is yet another reason why being down is a good place to be - you only have one place to go. Up. Those on top, on the other hand, have the reverse problem.)

So, in short, whatever the business climate, there is always opportunity for innovation and success.  Contact M Squared Consulting today and get on fast track to market leadership.

Why is Keeping it Simple So Difficult?

When it comes to company leaders I have found that there are two typically types of executives that exist in every workplace – “Simplifiers” and “Complicaters.”

Simplifiers – seek simple and graceful solutions. They are those rare leaders who take the time to analyze a problem or opportunity, seeking first to understand all the variables, then to understand what the fundamental issue is. Once they’ve boiled the challenge down to its basic elements, then they are in a position to formulate an intelligent solution.

Complicaters – tend to react quickly and often over-engineer a solution. They rely on rigid processes, complex frameworks, and overly inclusive teams to design a solution that is usually viable, but also so bloated and complex that it has a greater chance of failure.

Unfortunately, it has been my experience that Complicaters vastly outnumber the Simplifiers in management ranks.

The uncomfortable truth is that complex design is far easier and takes much less planning than simple design. It encompasses what your user might want to do, rather than understanding exactly what your user needs. Simplicity, it seems, requires more thought, planning, research and vision.

To see the benefits of simplicity let’s take a look at Apple. One of Steve Jobs’ first actions when he returned to the company was to reduce the number of computers they sold, allowing customers to easily identify which machine was appropriate for them. Similarly, with the iPod, simple navigational design on both the player and the iTunes store played a crucial role in its success. Later, Apple used the same philosophy when designing the iPhone.

No company makes more coveted electronic gadgets, or has made it easier to purchase and consume digital content, than Apple. Of course Apple has entire teams it can dedicate to keeping things simple. We could all learn from their example.

Here are some things to keep in mind as you strive toward simplicity with your strategic planning:

Begin with a core set of needs – Above all, it’s critical to know your essential deliverables. What needs must be met and what features are essential to most directly meet those needs? Articulate an initial vision of your product or service with the bare essentials.

Always look to eliminate features - Spend as much time analyzing what you can eliminate from your product or service as you do analyzing what should be included. It takes very little thought to add features or service complexity, but the end result is usually a complicated mess. By constantly adding elements, you risk making the user experience more complex and less enjoyable.

Customers don’t always know best – This sounds crazy, but there is some truth to it. Customer interaction is essential to most successful products and services, but the questions you ask are crucial. Asking your customers what they need and what problems they are trying to solve is the key. Do not spend a lot of time asking for feature requests. When you validate your design, focus on whether it meets their need and not what they want to see. Unrestrained feature requests result in bloat – and will cripple your delivery team.

Have vision – It’s essential to be able to look at your offering as a whole and understand how it will ultimately be used. Vision based off of a deep understanding of market needs – not feature requests – revolutionizes industries. Feature driven development, for instance, would have resulted in an iPhone with a keyboard.

Know when to say no - Careful market analysis will teach you when not to pursue an idea. Look at your company as if you were a skeptical outsider as you decide upon new initiatives. Time and company resources are precious for every company.

Simplicity is a key ingredient to innovation. It comes from thought, experience, and expertise. Those three attributes (thought, experience, expertise) are great descriptors for the consultants M Squared Consulting deploys on client engagements. By having senior-level talent working on client challenges we are able to deliver graceful and impactful solutions.

I recently came across two interesting data points which provide some important clues to what the emerging, post-recession, marketplace for labor might look like.

These data points have extra significance because in recent weeks we’ve seen an increase in consulting opportunities across all our practice areas, and we’ve also begun to notice a tightening of the knowledge worker labor force.

You might ask, how can it be that we’re still hearing about the recession and unemployment almost every night in the news, yet you’re saying there is both business opportunity and a lack of talent in the market?!

Here’s my explanation.

First of all, unemployment statistics are a lagging indicator. The rate of unemployment in the market will peak long before the government agencies report it. A much more reliable indicator of labor market trends is Gross Domestic Product (GDP). When it grows, the labor market will grow.

Second, unemployment for those with a college degree or higher (i.e. the knowledge workers that M Squared Consulting depends on to deliver results for clients) remains at near historic lows. The reality is that many members of the knowledge workforce have delayed their retirement. Once we begin the post-recession economic cycle we will see an increasing number of Baby Boomers (the most educated and experienced component of the current labor marketplace) begin to retire from the workforce. I predict this dynamic will cause a renewed war for talent.

August 2009 ExecuNet Recruiter Confidence Poll

Executive hiring by healthcare companies is expected to set the pace for management recruitment across all industries now through the end of 2009, according to ExecuNet’s latest Recruiter Confidence Poll. The survey found that nearly 150 responding executive search consultants anticipate seeing the most executive hiring in the healthcare space, followed by the clean/green technology sector, energy/utilities, and the life sciences market, including companies in the pharmaceutical, biotech and medical sectors. Senior management hiring in the publishing and media/advertising/entertainment industries is expected to be the weakest, extending a longstanding trend line.

“With the economy showing signs of stabilization, corporations are beginning to strategically upgrade their leadership teams and fill positions that were put on hold during the downturn,” says Mark Anderson, President and Chief Economist of ExecuNet. “In light of the deep cuts many companies made during the past eighteen months, the pace of job growth during the year ahead could be stronger than expected in many industries.”

In the poll a representative sample of executive recruiters are asked what industry they anticipate yielding the highest growth of management hiring in the next six months. Here are the top ten responses from the poll:

• Healthcare = 13.8%
• Clean/Green Technology = 10.6%
• Energy/Utilities = 9.1%
• Life Sciences (pharma, biotech, medical) = 8.4%
• Environmental Products and Services = 7.2%
• High Technology = 6.3%
• Tie-Business Services = 5.3%
• Tie-Government/Nonprofit = 5.3%
• Defense/Aerospace = 5.2%
• Financial Services = 5.1%

Source: ExecuNet Recruiter Confidence Poll 8/09

The Aging of the American Workforce - Pew Research Center

The aging of the American workforce has accelerated during this recession, both because older workers have stayed in the labor force longer and younger adults are staying out of it longer, according to a recent study by the Pew Research Center.

One government estimate forecasts that 93 percent of the growth in the U.S. labor force through 2016 will be among individuals ages 55 and older.

By a ratio of nearly two-to-one, survey respondents said they would prefer a job that offers better security (59 percent) over one that offers higher pay (33 percent) but less stability.

Yet even in the face of widespread layoffs, pay freezes and involuntary furloughs, nine-in-ten employed adults say they are either completely (30 percent) or mostly (60 percent) satisfied with their job. In recent decades, the Pew study reports, levels of job satisfaction have tended to remain stable through good times and bad.

As it turns out, older workers are the happiest workers. Some 54 percent of workers ages 65 and older say they are “completely satisfied” with their job, compared with just 29 percent of younger workers. That’s because a much higher percentage of older workers is working not because they need to, but rather, because they want to.

At M Squared Consulting we’ve just finished our budgeting process for the 2010 fiscal year. I thought it might be of interest to share some insights and observations while they are still fresh in my mind, and propose some resolutions based on what I learned from our planning process:

1. It is always better to lead than to follow. Do your homework ahead of time, so that you come in prepared. It is always better to get in front of the process instead of getting dragged behind it.
2. Recognize that many of your business fundamentals have likely changed over the past 12 months. Your business strategy will likely change as a result. So commit to anticipating the key questions which need to be answered and then, using research, analytics, and common sense gather as much insight into them as you can so that you can make informed recommendations and smart budget assumptions.
3. Clearly state all your assumptions.
4. When making year-over-year (or any other time period) comparisons, make sure you’re comparing apples-to-apples. If there have been significant changes from one period to the next you should at the least note them or, better yet, try to back them out.
5. Approach your proposed budget from the ground up, with every element having a business case justification which estimates the return.
6. Recognize that you can only control what is yours. To the extent that other’s budgets impact yours, accept it, then move on. If something has a material impact, identify it, clearly state the facts, put it in your assumptions list, then move on.
7. Cast a wide net for input. In addition to data and commitment from your team, proactively seek input from others in finance, marketing, sales, human resources, and business units as you build your plan. This not only enables you to understand their questions and concerns (and hopefully incorporate the appropriate adjustments) but it has the added benefit of pre-selling your budget to peers, superiors, and other influencers who may be in a position to make your life miserable later.
8. Solicit input and early support from those who drive revenue. It has always amazed me that many business leaders don’t actively include their sales teams in the budgeting process. The level of sales team buy-in, commitment, and support for budgets that have been collaboratively built is always better than those budgets that are just handed down.
9. Clearly define what success looks like before you propose spending any money. Also plan to implement the necessary measurement system to make sure you can demonstrate the expected contribution.
10. Analyze the alternatives to all your budget recommendations, so that you are prepared to answer the inevitable tough questions from your CEO and CFO.

No matter what business opportunities or challenges you’re facing, or where you are in your planning cycle for 2010, M Squared Consulting (and our unique talent-on-demand business model) can help you keep critical initiatives on track. Across industries and corporate functional areas we deploy top-level experts who are completely focused on delivering bottom-line results to your organization.

I recently read a synopsis of the book Chaotics: The Business of Managing and Marketing in the Age of Turbulence, by Philip Kotler and John A. Caslione (AMACOM, May 2009).

The authors present eight ways that organizations can flourish despite the worldwide recession, and the resulting uncertainty and upheaval it has brought:

1. Secure your market share from core customers. The first and foremost priority of every company should be to retain their core customer segments. The old maxim is that it costs five to seven times as much to get a new customer as it does to keep the one you already have. Be prepared to ward off attacks from competitors attempting to snatch your most loyal and profitable customers.
2. Push aggressively for greater market share. All companies must fight for market share and, in chaotic times like these, many have been weakened. Slashing go-to-market budgets will only have negative impacts on your business, and sends a signal to competitors that the door might be open for poaching. Instead, work hard to add to your core customer segments at the expense of your competitors.
3. Research customers now more than ever. Everyone is under pressure during times of turbulence and chaos, which means all customers are changing their habits - even those in your core segments whom you think you know so well. Stay close to them. You don’t want to find yourself relying on old value propositions that no longer resonate, or with a business model that customer don’t want.
4. Seek to increase - or a least maintain - your marketing budget. This is the worst time to think about cutting anything in your marketing budget that targets core customers segments. In fact, many progressive organizations are strategically adding to this budget, or taking funding away from new initiatives targeting new customer segments that might distract them from their core. It’s time to secure the home front first.
5. Focus on all that’s safe. When market turbulence is scaring everyone in the market, there is a massive flight to safety. Businesses and consumers need to feel safety and security with your company and its products and services. Do everything possible to communicate that continuing to do business with you is both safe and smart. Spend whatever it takes to do it.
6. Quickly drop programs that aren’t working. If you’re not watching your spending, rest assured that someone else is - including your internal business peers whose budgets couldn’t be protected from the budget cutting axe. Eliminate your ineffective programs before someone else calls attention to them.
7. Don’t discount your best brands. When you do this, you instantly tell the market two things: You were charging too much before, and your brands won’t be worth the price in the future once the discount is gone. Instead, consider creating a new, distinct product or service offering under a new brand with lower prices. This gives value-conscious customers the ability to stay close to you while not alienating those still willing to pay for your higher-priced brands. Once the turbulence subsides, you many consider discontinuing your newly introducing branded value product line - or not!
8. Save the strong; lose the weak. In a turbulent economy, you need to make your strongest brands and products even stronger. There’s no time or money to be wasted on marginal brands or overly fragile products that aren’t supported by strong value propositions and a solid customer base.

Many M Squared clients recognize the great value of bringing in subject-matter experts to explore strategic and tactical opportunities. Sometimes these ideas come from thought leaders or books like the one highlighted above. Within the M Squared Consulting network we have experts with knowledge and experience across all the major business disciplines and industry segments. These seasoned business professionals are as adept at asking the tough questions as they are at determining what the best answers are for your organization - those solutions which will deliver bottom-line results and have lasting value.