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| Certainty |
It's hard to walk more than a few feet at any industry conference without bumping into some type of social media consultant. Some of these individuals are bona fide experts; others are reinventing themselves on the fly.
Usually, it's easy to separate the experts from the wannabes. But if you're uncertain, ask this question: "Must I implement some form of social media for my business?"
You'll often hear an emphatic "yes" answer to that question, followed by the litany of hazards you'll face if you don't tweet, build your Facebook presence, or establish yourself on LinkedIn.
I'm not singling out social media consultants so much as pointing out the problem with that kind of certainty. Once you answer a client question like "Do we have to..." without reflecting or clarifying, you cut off consideration of other solutions. And that can be your downfall.
You may be positive that you have all the answers, even before you've heard a full explanation of the issue. That's common enough. But blurting out a response before you've listened carefully and come to a reasoned conclusion sends a not-so subtle message: I'm not thinking about the implications of my opinions for your business.
Once you deliver that message, the client will see you as a seller, not an adviser. Sure, you can and should be passionate about your area of expertise. Just don't let your certainty separate you from the real experts.
Enjoy this month's issue.
And send me an email if you have comments.
Mike McLaughlin
Editor
Join the Conversation:
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| Write the Winning Proposal: Presentation Slides |
The sales proposal is one of the most widely used (and abused) tools for selling services. It's easy for prospective clients to request proposals, and many consultants are quick to agree, even if they think the chances of winning the work are slim.
Ideally, you would hold off writing any proposal until the client agrees to the terms of the work, but that's rarely a realistic option. As a result, professionals search for the middle ground between jumping on every request for a proposal and holding back until the sale is confirmed.
This set of presentation slides helps you find that middle ground with client-tested strategies for a winning proposal--even if you're facing an entrenched competitor.
Click for the presentation slides.
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| MCNews 12 Index of Professional Services |
Some experts say that the mixed signals the US economy is sending mean that the recession is bottoming out and the economy is on the mend. But it doesn't really seem so. Sure, the stock market is soaring and bankers' bonuses have rebounded to pre-meltdown levels. So for some people, the economic turmoil seems like a minor (though scary) blip on the radar. It's these same people who are proclaiming the end of the great recession.
The reality for many people is far different. Jobs are scarce, lots of people are underemployed, credit is still tight, and unemployment remains alarmingly high. The US economy may be drawing back from the edge of the abyss, but the troubled times are not over yet--no matter what the pundits say.
None of the ongoing economic news hurt the MCNews 12 Index or the overall stock market last month. The MCNews 12 Index added almost 4 percent in November and inched closer to its baseline value of 1,000. The S+P 500 got a 5 percent boost last month, in spite of the mixed economic news.
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MCNews 12 Index |
YTD
Change |
| November 2009 |
932 |
+37.5% |
| October 2009 |
897 |
+24.4% |
| September 2009 |
872 |
+20.3% |
The run up in equity values is a welcome relief for investors, but it's not clear what's driving those values. Should investors brace for a round of profit taking and lower stock prices? We know that the market is neither fair nor rational, so what comes next is anyone's guess.
Most professional services firms aren't sitting back and waiting for the slump to run its course. Instead, they are learning to do more with less. Hewitt Associates, for example, reported a doubling of fourth quarter profit on a 6 percent decline in revenue. Navigant Consulting reported growth in earnings in its third quarter that was largely the result of cost cutting.
After decades of repeating the mantra of internal efficiency to their clients, some consulting firms seem to be taking their own advice. What these firms must now grapple with is how to manage a high-talent work force in an era of cost cutting. It's always easier to grow a firm than it is to shrink one.
Other companies are taking a different approach. The Hackett Group gobbled up Archstone Consulting right before Thanksgiving, in an all-stock transaction. What's open to debate is whether this acquisition will turn out to be an early Christmas present or a turkey. I suspect that depends on which end of the transaction you're on.
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| Interview: Rob Goffee |
"Clever people are the ones who create disproportionate amounts of value from the resources their organizations make available to them."
Rob Goffee is a Professor of Organizational Behavior at the London Business School. He's also the coauthor of Clever: Leading Your Smartest, Most Creative People and Why Should Anyone Be Led by You?
We asked Goffee how leaders should think about working with, retaining, and getting the most from clever people.
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| World's Top 20 Business Hotels |
For the road warriors among you, this list may be old news. But if you're looking for the top business hotels in the world, readers of Travel + Leisure magazine have weighed in with their choices for 2009.
Every business traveler expects access to technology, basic business services, and comfort. But these hotels take the amenities a step further than the run-of-the-mill business hotel, according to Travel + Leisure anyway.
Whether you're traveling in Asia, Europe, or the Americas, you'll find some outstanding choices on this list. Your biggest challenge may be convincing a client to foot the bill.
1. Palacio Duhau-Park Hyatt, Buenos Aires
2. Shangri-La's Far Eastern Plaza Hotel, Taipei
3. St. Regis, Shanghai
4. XV Beacon, Boston
5. Four Seasons Hotel, Hong Kong
6. The London West Hollywood, West Hollywood
7. Eliot Hotel, Boston
8. Rosewood Mansion on Turtle Creek, Dallas
9. Sofitel Shanghai Jin Jiang Oriental Pudong, Shanghai
10. Mandarin Oriental, Hong Kong
11. Peninsula Hong Kong, Hong Kong
12. Pudong Shangri-La, Shanghai
13. Omni Mandalay Hotel at Las Colinas, Dallas
14. Intercontinental Buckhead, Atlanta
15. St. Regis, Beijing
16. Peninsula Beverly Hills, Beverly Hills
17. Mandarin Oriental, New York
18. Conrad Centennial, Singapore
19. Four Seasons Hotel, Buenos Aires
20. Ritz-Carlton Central Park, New York
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| What One Thing? Robert Cialdini Answers |
Robert Cialdini is an expert on persuasion and influence. He's a psychology professor at Arizona State University, and the President of Influence at Work. He's also the author of the classic book, Influence: Science and Practice, now in its fifth edition.
McLaughlin: If you could give someone just one piece of advice about using influence effectively, what would it be?
Cialdini: I have a colleague who says he has spent a big percentage of his professional career searching for the single most effective sales strategy. I saw him at a conference a few years ago, and he said, "Bob, I found it. The single most effective sales strategy is not to have a single sales strategy."
It's a mistake to try to use the same principle, tactic, practice, or approach in every situation. That's because you will face a different person and circumstance, and different times in every case. You need to find what is immediately relevant to that person, time, and place.
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| Most Popular MCNews Articles for 2009 |
As 2009 draws to a close, here's a list of the ten most popular articles and interviews for the year. There's something for everyone on this list, from strategy to tactics, and a lot of solid business advice.
How to Write a Compelling Marketing Letter, by Mark Satterfield
Common Sense Web Design with Steve Krug
Flawless Consulting with Peter Block
Insurance Tips and Traps for Consultants, by Scott Simmonds
Daniel Pink on A Whole New Mind
A Conversation with Philip Kotler
William Bridges on Managing Transitions
Running a Meeting: Ten Rookie Mistakes, by Suzanne Bates
Robert Sutton on "The No Asshole Rule" for the Workplace
Michael Gerber Unravels the Myth of the Entrepreneur
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| Trends in Executive Compensation |
Most senior executives wince when their outsized compensation packages become headline news. On almost a daily basis, executives from one group or another end up defending their paychecks.
Last month, Korn/Ferry International released the results of its five-year analysis of compensation for newly hired executives. The Korn/Ferry Executive Compensation Index shows that, after reaching a peak in 2008, pay for the majority of new senior executives around the world declined in 2009.
Don't shed a tear just yet. On average, CEOs for Standard & Poor's 500 companies each earned $10.9 million in total compensation in 2008, according to research from The Corporate Library.
It is noteworthy that CIO/CTO salaries saw the greatest growth over the five years of the study, increasing year-over-year to their highest point. Steadily, organizations have come to realize that their IT talent is among the most important to their long-term success. IT executive salaries are beginning to reflect that.
In 2009, salaries for first-year CEOs in North America and Asia declined for the first time in five years, but increased in Europe, raising the global average CEO compensation to a five-year high.
"While top companies will always attract top talent, it is clear that the ailing economy and heightened scrutiny over executive compensation had a noticeable effect on the corporate landscape," said Gary Burnison, CEO of Korn/Ferry International.
What Burnison failed to mention is that the reported decline in some executives' compensation affected their pockets about as much as throwing a suitcase off the Queen Mary.
The message from this research on trends in executive compensation: Full steam ahead. Read more.
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| Coming
Attractions |
"There's a myth in business that the only way to get people to perform at a high level is with carrots and sticks. But that's just wrong--not wrong morally, but wrong scientifically."
Next month, we'll talk with Daniel Pink, author of the forthcoming book, Drive: The Surprising Truth About What Motivates Us. Pink's previous books, including A Whole New Mind and Free Agent Nation, placed him among today's leading thinkers about the modern world of work.
Pink examined decades of research on human motivation and reveals the mismatch between what science knows and what business does--and how that affects every aspect of life. He shows why the carrot and stick approach is precisely the wrong way to motivate people for today's challenges.
Look for the next issue of Management Consulting News on January 5, 2010.
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