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Never Forget Your Repeats

In this looming economic downturn, you would think that there is little you could do with your existing client base. Well think again. It is all about understanding your clients’ needs and meeting them exceeding their expectations. You have been in business for a while now with a list of existing, potential and dormant clients. What can you do to further the potential revenue from the list? Yes, you merge, purge and keep selling to your repeats.

Customer Retention vs Customer Acquisition

The cost of customer acquisition versus customer retention could reach as high as 700%, according to a report by Frederick Reichheld of Bain & Company as below:

• Acquiring a new customer can cost 6 to 7 times more than retaining an existing customer
• Over a 5 year period customer attrition rates could reach as high as 50% if databases are left dormant
• Businesses which boosted customer retention rates by as little as 5% saw increases in their profits ranging from 5% to a whopping 95%.

Regardless of whether your business nature is B2C or B2B, there are critical steps which you must execute whenever you run your direct marketing campaigns. This applies for both online and offline direct marketing campaigns. I shall skip the basics and we shall proceed to delve deeper into your databases.

Repeat Buyers - Make Them Sticky for Life
What at Repeat Buyers? They are your loyal customers who continue to use your services by virtue of the fact that you provide a specific product or service which they need, they are used to and that which is not available elsewhere. You may have exceed their expectations by a superior product or service, over delivered on your product value proposition or provided additional value add to them in a special way. You might also have given them privilege pricing which is unmatched elsewhere. Or your delievery channels are good match for their needs. In all aspects, you must have impressed your repeat clients well to keep them coming back for more. And there are ways you could further capitalize on them.

These repeat customers are what you might deem as Cash Cows as in the BCG Matrix, which require little maintenance cost, and consistently repeat revenue over time. You need to analyze the greatest "hook" your product or service have on them, which could be anything from the above stated.

Milk The Cash Cows, Build Relationships, Help Them To Help You
"Milk" them well by continuing to delivering your services over and above expectations. You may launch a special marketing campaign specific for loyal customers and package your most popular offerings using bundled pricing.

For B2C businesses, consider organizing "Loyalty Rewards Nights" and have them invite their friends and families, or have a quarterly "Bring a Buddy" Special Seminar. For B2B businesses, organize Business Partner’s Nite where business partners bring along their extended business associates for networking purposes or Golf Charity Outing for fostering relationships.

How ever your approach, you need to keep building relationships with this segment and provide them with genuine help in support of furthering Their business objectives. Essentially, you need to help them to help you grow your business. This way, good word-of-mouth & "testimonial" will bring you much more sustaining revenue over time.

Why Did You Stop Buying? - Reviving Your Dormant Customers.
As for the Dormant Customers who have been one time buyers, run a "Survey Gift Pack" and ask them why they have not bought from you again. This is the customer segment which could well turn into your Cash Cows if you only listened to them. You might be surprised to find what they have to say about your product or service. Keep an open mind and take criticism constructively. Past experience is that further product development and refinement arise from customer feedback giving rise to new lease of life to the product life cycle.

Check out more good reads at Business Insights & Idea Geneators and Strategic Thoughts .

For the avid entrepreneur with the foresight to tap the early adopt ers , it’s time to check out the Digital Photo Frame concept .

So you hate keeping tons of huge photo albums, find it cumbersome to power up your pc to show off your digital photos, dislike peering into that tiny screen to flash your photos on your digital camera? Go get a Digital Photo Frame.
Simply load up the Digital Photo Frame with your MicroSD card and start playing your most treasured precious moments on the LCD screen . Some of these frames even have capabilities of playing video and audio files. One model even does away with the wall socket power plug and uses internal rechargeable battery!
Currently, a Digital Photo Frame doesn’t come cheap and is still confined to a niche market. This nifty gadget will set you back between US$130 to US$200 . Global brands like Viewsonic and Toshiba and lesser known brands from Korea and Australia have all jumped onto the bandwagon for this rather interesting and innovative product.
Reviews from the marketplace are positive on the creative concept, and mixed on the quality of the Digital Photo Frame, brand-dependant, ranging from frame resolution, response time, aesthetic look and feel etc.

And nothing beats living everyday of life in beautiful memories flashing by every moment of the time at the flick of a switch. Check out the Korean suppliers should you be interested in this product which is expected to revolutionalize the conventional photo albums and and extend your most treasured memories.  Expect more competition jumping on the bandwagon so start driving your competition instead.
So first stop, research the Digital Photo Frames at your neighborhood departmental store and check out your competition.

One day after Democrat Barack Obama was elected the next US President in a landslide victory and made history as the First US African American President , Wall Street plunged 486 points as investors worried about the global financial crisis and a US recession.

The president-elect has stepped right into the heat of the biggest global financial meltdown since the Great Depression amidst rising unemployment, diminishing home values and shaken investor confidence.

There is no reprieve from market pessimism as investor concerns permeates as signs of further deterioration in a very weak economy continue its foray. There is little expected upside in the continued plunge of Wall Street even as the path of change in the nation’s political and social history takes on a new chapter. Depressed investor’s sentiments and job worries continues to give rise to curbed consumer spending, further stalling the US economy. The backward streaming of the downturn is widespread with manufacturing and services taking the lead and escalating the already anemic US economy.

Such is the economic grimness that President-elect Obama inherits as the US economic legacy. While all paused for a day in celebration of his victory, more eyes are now on Barak Obama on how he leads his administration at the helm to chart US and the world out of difficult times.

Barack Obama and Joe Biden made ambitious commitments of reshaping the US economy for the people. This is indeed a long list and how much of this will be honored within the next 4 years to come is anyone’s guess.

But meantime, just for a few days, let us take a breather, and revel on the very fact that Barack Obama President-elect, with his genetic heritage, has re-crafted US history by simply being the 44th US President of the United States of America.

Below is a snapshot of the potential exciting changes.

Barack Obama and Joe Biden’s Economic Game Plan

Jumpstart the Economy
Enact a Windfall Profits Tax to Provide a $1,000 Emergency Energy Rebate to American Families
Provide $50 billion to Jumpstart the Economy and Prevent 1 Million Americans from Losing Their Jobs

Provide Middle Class Americans Tax Relief
Provide a Tax Cut for Working Families:
tax credit of up to $500 per person, or $1,000 per working family
Eliminate Income Taxes for Seniors Making Less than $50,000
Simplify Tax Filings for Middle Class Americans

Trade
Fight for Fair Trade
Amend the North American Free Trade Agreement
Improve Transition Assistance
End Tax Breaks for Companies that Send Jobs Overseas
Reward Companies that Support American Workers
Invest in the Manufacturing Sector and Create 5 Million New Green Jobs
Invest in our Next Generation Innovators and Job Creators
Double Funding for the Manufacturing Extension Partnership
Invest In A Clean Energy Economy And Create 5 Million New Green Jobs
Create New Job Training Programs for Clean Technologies
Boost the Renewable Energy Sector and Create New Jobs

New Jobs Through National Infrastructure Investment
Create a National Infrastructure Reinvestment Bank

Technology, Innovation and Creating Jobs
Invest in the Sciences
Make the Research and Development Tax Credit Permanent
Deploy Next-Generation Broadband

Support Small Business
Provide Tax Relief for Small Businesses and Start Up Companies
Create a National Network of Public-Private Business Incubators

Labor
Ensure Freedom to Unionize
Fight Attacks on Workers’ Right to Organize
Protect Striking Workers
Raise the Minimum Wage

Protect Homeownership and Crack Down on Mortgage Fraud
Create a Universal Mortgage Credit
Ensure More Accountability in the Subprime Mortgage Industry
Mandate Accurate Loan Disclosure
Close Bankruptcy Loophole for Mortgage Companies

Address Predatory Credit Card Practices
Create a Credit Card Rating System to Improve Disclosure
Establish a Credit Card Bill of Rights to Protect Consumers

Reform Bankruptcy Laws
Cap Outlandish Interest Rates on Payday Loans and Improve Disclosure
Encourage Responsible Lending Institutions to Make Small Consumer Loans
Reform Bankruptcy Laws to Protect Families Facing a Medical Crisis

Work/Family Balance
Expand the Family and Medical Leave Act
Encourage States to Adopt Paid Leave
Expand High-Quality Afterschool Opportunities
Expand the Child and Dependent Care Tax Credit
Protect Against Caregiver Discrimination
Expand Flexible Work Arrangements

The stock market has yet to see it worst, what with oil demand plummeting to all time low within a year, Dow hitting its lowest in 5 years, investment bank collapsing one after another…

For some businesses, large corporations or small sole proprietary alike, it is obvious that the influx of bad economic news have caused much financial difficulty, especially for those who overtly expanded or have over leveraged themselves or simply with low cash flow to begin with. The economic constriction cycle has begun, starting with headcount freeze, retrenchment, and eventually reduction in production due to low demand.

Inflation too has reared its ugly head, shrinking your revenues in light of rising raw material costs. And the individual income earner sees an absolute reduction in his or her disposable income. Even the Universities are having problems paying academia and students are experiencing the worst time in their lives in getting subsidized student loans.

Amidst this gloom and doom, how does your business fair? Do you have a contingency plan? And is this a good time to start a business?

One thing I realized that is that in the midst of all this economic turmoil, my consultancy business has somewhat grown as clients eventually realized that they need help to rethink their business plans, set up contingencies or implement them.

Today I shall share some new business ideas for small businesses which has been given a new lease of life, thanks to the Economic downturn.

Movers Business - Riding On The Coat Tail Of The Economic Downturn
Large MNCs are already retrenching, some even with the intention to move their offices in view of the exorbitant rental charges in prime areas. Others looking to downgrading homes would also need movers’ services. Movers companies employing manual or foreign labor are easy to set up, especially if you have logistic experience.

If you have an existing company with a fleet of a few trucks and containers trucks idling way not generating revenue, this could be a new venture to explore. Tapping on existing resources to diversify your business offerings is potentially revenue generator for you.

Food Services Targeting Mid & Low Income Niches - Adopt A High Volume & Lower Pricing Strategy
Food Courts and Food Malls which appeal to mid and low income niches will start to grow due to demand. Restaurants targeting these segments will also flourish given the right pricing and service. If you run a restaurant and have been noticing dwindling crowds of high income earners, re-position your restaurant branding, re-think your food offerings, and adjust your pricing strategy.

Add an affordable fixed price for early bird set lunch or dinner, open longer hours to tap on the night crowd, but cutting headcount in the wee hours to reduce your overheads. This could help keep your food and drinks fresh and flowing at a lower cost too.

Go on a high volume and lower pricing strategy. Remember that if you need to re-adjust your positioning, do it soon to fully maximize from the economic downturn. Remember the golden rule of business - Survival of the fittest is paramount.

Second Hand Branded Goods Stores - The Brand Conscious Are Down but Never Out!
Understand the psychology of the brand conscious consumers and you will see why your second hand branded goods stores are making a bounty now. Branded goods to the brand conscious are comfort goods to a lot of women and the desire to own that Gucci or LV handbag can be overpowering, to say the least. In good economic times, the brand conscious will never bet an eyelid to pay through their nose for that LV handbag. Yet the overwhelming desire to own it in times of economic hardship never goes away.

Your business proposition is to fulfill that desire at a lower, more affordable pricing for the same branded goods, albeit second hand. Remember that when it comes to selling branded luxury items, your positioning it to satiate that "I can still afford my favorite Branded handbag" Desire, and not simply selling a Product.

Well, I leave you to mule over the above business opportunities. Understand that in times of difficulties, there is always the contingency plan. Look on the bright side of things, think out of the box and you will find you way out of this depressing economic downturn earning tons if you simply stop, step back and rethink your business plan.

For more great reads, check out Business Insights & Idea Generators as well as Business Strategic Thoughts.

In the previous post, we discussed mapping the goals set in the marketing plan with a timeline using the S.M.A.R.T. theory. This segment we shall discuss mapping the Marketing Plan with a set timeline throughout the process.

Viability studies - 1 to 2 months from Time Zero
You would think that the 1 - 2 months devoted to full analysis of all stated below is a very long time. But viability studies are critical to your final decision to whether your marketing plan is on the right course, or even whether your business plan is a viable concept.

Desktop Analysis essentially refers to internet research, collating the relevant information and data for further analysis and more in depth research.

Internal Analysis on the other hand pertains to the input that you, the owner of the potential business and originator of your marketing plan, contribute into the marketing plan. Without your Vision, Mission and farsightedness, there is no way your potential business will take off. It is your input and foresight that gives the analysis the spirit.

Desktop and Physical Market Analysis
Porter’s 5 Competitive Forces
P.E.S.T. Analysis

Internal & Physical Market Analysis
S.W.O.T. Analysis
Competitive Advantage Model
Target Segment Analysis
Product Life Cycle analysis
Value Proposition
Positioning
Value Proposition of products or services
Product Growth Directions
BCG Matrix

Marketing Mix (4Ps) - 2 to 4 weeks after completion of Viability Studies
The 4Ps essentially denotes Product, Pricing, Promotion, Placement decisions which interplay to cumulatively create compelling value proposition, UPS and positioning statement for your potential customer.

You will need the information and data collated from the viability studies to apply onto the Marketing Mix. For instance, Market Competition and related information can be used to understand your pricing positioning strategies. Pricing decisions includes list, retail, wholesale, seasonal pricing, volume discounts, early-bird discounts, bundled pricing, flexible pricing, consignment options etc.

Target Segmentation and product life cycle analysis could be applied to product strategies in the marketing mix. Product decisions entails the real physical product characteristics which might include your product brand name, quality, packaging, functions, after sales services, etc

Placement decisions essentially means distribution channels which you utilize to bring your products to your customers and are highly tied to the consumer’s purchasing behavior which you as business owner should have the facts at your finger tips. In addition, distribution and sales distribution is a key consideration. Understanding the distribution channels your competitors adopt allows you to copy or innovate better.

Promotions decision includes Advertising strategies which depending on your target segment analysis could be an expensive affair or cost effective. "barter-advertising" by cross-advertising in a collaborative channel partner’s newsletter and allowing your partner to cross-advertise in yours. Internet advertising if controlled well could also generate better lead to sales potential.

Personal Selling strategies not only include individual sales persons, but more extensively of late - telemarketing as well as direct-marketing.

Publicity is initiated by you or your company. It is the deliberate attempt to manage the public’s perception of your company or products. It could be free news publicity or sponsorship events activities which cascade into publicity.

Mapping all the above in a well thought out marketing plan could even take more than the 2 - 4 weeks which we stated as timeline.

But all is worth the while if the future holds well.

For more good reads, do visit Marketing Plans Here and tap on our Strategic Thoughts Here

For everything you do, you need to set a timeline. In the real world of business, there is always a sense of urgency to complete your tasks within targeted timeline set either by your superior or your clients.

Your S.M.A.R.T. Marketing Plan Timeline
A timeline is a target completion time for your projects. Your Marketing Plan Must come with a set time line for completion. Many novices when writing marketing plans do not include a timeline but get overtly engrossed in planning the strategies involved.

And yes, get S.M.A.R.T. with your marketing plan timeline. As you measure your Goals with the S.M.A.R.T. Formula in your Marketing Plan , you may also use it to evaluate your marketing plan timeline with this same guidelines.

A quick recap of the S.M.A.R.T. Formula is to set your goals to be Specific, Measurable, Achievable, Relevant, and Timely. Check out how we apply similar principles but with slight twists to set your Marketing Plan Timeline below:

Marketing Plan Timeline - Adopting the S.M.A.R.T. Formula

"Specific"

Be Precise & Exact. This defines the exact actions that Must be achieved within the set time frame.

"Measurable"
Quantify Your Goal. How many percent of works in progress should you have completed within the set miles stones or phases of your marketing plan timeline.

You Must, in this criterion, factor in a very critical aspect, namely to Pre-empt contingencies that could arise. Even veteran marketers tend to omit this and prefer to fight the fire when things go awry.

"Achievable"
Be Realistic of your Resources. Be fair to yourself and your co-workers whenever you set timelines or target completion time. Never over stretch and compete with time. It hurts the quality of your work and could even adversely affect cohesiveness in the process.

"Relevant"
This is Relative to other functions. How relevant and applicable is your marketing timeline to the ad design department if you need to run a TV Ad campaign in three days? Again, be aware of other functional schedules.

"Timely"
Your Marketing Timeline should be set in stages of milestones for easy measurement of completion.

The above formula has actual application effectiveness with my clients especially with they lack the discipline during project management.

Stay tuned for the Next stop, where we shall be walking through together the lateral mapping of your Marketing Plan Timeline with your Marketing Plan for Implementation.

Meantime, you can get more information on Marketing Plans Here and tap on our Strategic Thoughts Here

The Singapore Formula One Singtel Grand Prix Night Race i s a class act in itself. I In it’s efforts to ensure the event is no less than a great success, it seems that Singapore has called upon all facets of retail, hospitality, restaurant outlets, spas for collaboration in organizing services for the expected 40,000 overseas and the few million locals.

40,000 Overseas Visitors
The authorities expect that 40,000 overseas visitors will be in Singapore to watch Formula One’s first ever night race in about a week’s time. Celebrative events across all strata, be they exclusive-invites-only galas or street celebrations, one can be sure of a full line up for the entire week ahead.

Re-Branding & Rejuvenating Singapore
The re-branding of Singapore as the Cosmopolitan East was taken to a new feverish pitch with the arrival of the Formula One Singtel Grand Prix. Wine connoisseurs, high-end high-fashion luxury watch and jewellery chains, flog into the tiny island-state. Top Hollywood and Asian celebrities will be intown to grace the occasion.

Who’s Who Celebrities In Town
To heighten the excitement, it is rumored that David Bechkam, Rafael Nadal are on the celebrity invite list. Hollywood and high fashion sees no boundaries too and star-studded invite list include Star Wars director George Lucas, supermodel Naomi Campbell, socialite Paris Hilton, action star Jackie Chan, actress Michelle Yeoh and singer Nicole Scherzinger. This impressive line up of world celebrities gives a whole new meaning to Formula One Grand Prix indeed.

Hospitality Befitting Royalty
Already, bankers and business compatriots are "courting" their jet-setting wealthy clients and business partners with 5-star presidential hotel suites with a perfect view, 5 figures tickets to the Formula One GP Night Race, not to mention the non-stop Shop & Spas and many more activities all planned out for their spouses!

To encourage opulent spending during this period, retail outlets, restaurants, pubs and entertainment spots are opened till extended hours to tap on the high energy visitors pre- and post of the night racing. Even spa sanctuaries across the island are standing by with bevies of masseurs after the races ready to wait from head to toe of tired F1 spectators.

Adding Local Flavor with Festivities
This September period lodged itself in the midst of the Malay New Year which occurs 1 October and the Indian festivities were also brought forward one month earlier to coincide with the Singapore Formula One First Ever Night Race. The Singaporeans have indeed promised their overseas visitors an abundance of cultural, culinary and celebrative feast capable of tantalizing and satiating the hungriest of sense and sights.

Far-Reaching Benefits of the Singapore Formula One Grand Prix
The economic benefits of hosting such an event has far reaching effects in boosting Singapore in the motor sports arena, especially when the contract is for a minimum of 5 years, pending yet an additional 2 more years to host the Formula One world Championship Races. While the expected additional revenue of US$70 million per race annually is minuscule by Singaporean standards, it is the catapulting of Singapore into the world motor sports map which is critical as a platform and backdrop in transiting Singapore into a cosmopolitan, open-minded, fun and high-glamour seeking nation ready for more exciting lives.

The Formula One Grand Prix is but one of many Re-branding & Rejuvenating Singapore projects that they are attempting to morph its tired stodgy orderly and somewhat boring persona. Not to mention, it is also in the midst of building two multi-billion dollar integrated resorts casino developments as part of efforts to inject buzz into its image.

When the integrated resorts launches in 2009 and 2010 in phases, the combined economic effects of the Formula One Grand Prix will surely give a new meaning to island-nation called Singapore.

So, have you booked your F1 tickets yet…?

What does the tiny little red dot of a Singapore and Formula One GP Night Race have in common?

Everything from the adrenaline pumping World’s First Formula One Night Race to flamboyant night life to booming tourism and festive celebrations are all happening at once! Singapore is catapulted into the world sports limelight of the high-glamour, adrenaline rushing Formula One GP events by hosting the world’s first Formula One Night Racing.

Come this exciting weekend starting from 26 September, this tiny little island will bring to you the full contingent of Formula One GP Hall of Fame masters, Formula One fanatics, overseas & local celebrities and Uniquely Singapore festivities .

Singapore , a tiny standalone City State at the southern most tip of the Malayan Peninsula. This is a beautiful city state boosting of world class bests. It was the world’s busiest port, has the best airline, one of the countries with the fastest growing millionaires, has one of the best mass rapid transport networks, is one of the cleanest and greenest country, represents all things cosmopolitan and is a god-fearing, hardworking and fun loving nation. And now it bags yet another First into its coffers - Formula One First Ever Night Race.

Singapore Grand Prix will set a major milestone in the Formula One Racing history, with the race taking place on a 5.067 kilometer track comprising of a unique 61-lap circuit under state-of-the-art lighting system.

The events around the F1 race stretches over the weekend from Sept 26. 50,000 visitors will attend the 2 full days of practice runs while around 100,000 people, including 40,000 overseas visitors, will attend the debut inaugural run, the 800th Formula One World Championship race in the Marina Bay area on Sept 28. Although the race drivers will be too busy to enjoy Singapore’s historical landmarks, the race course includes the 100-year-old Anderson Bridge and the Raffles Boulevard for the benefit of its spectators.

Singapore signed a contract which guaranteed at least a 5 year contract with option to extend 2 more years for this series of high profile first ever night races. Authorities are expecting to generate about US$70 million revenues per race annually from all related activities.

If you have not booked you tickets to the First Ever Singapore Formula One GP Night Race in Asia , don’t miss out on a lifetime experience of adrenaline pumping excitement. So go get that rush!

This part of Talent Management brings us to the discussion of the power of Talent Management Integration .

We may recall that the key components of Talent Management are Recruitment & Retention, Professional development inclusive of leadership potential development, Performance management, Feedback as well as Succession planning. All the above mentioned components must be in lined with your Human Resource plan and most critically so with your Business Management Plan.

Overcoming Your Talent Management Inhibitors
However, all being said, there are indeed inhibitors in the way of your Talent Management Integration. Overcoming them would entail certain level of initiative and creativity. Inhibitors begets negativism within your organization and may eventually cause widespread "damage" to your talent management planning is not managed tactically. Inhibitors are namely, silos, decentralization, poor communications, lack of perceived value and supporting technology. Breaking up silos could be the one of the most difficult tasks of the group of inhibitors. The rest of them could be resolved with open and diplomatic internal communications, internal branding, as well as leveraging on innovative but affordable technology.

Tools of Talent Management Integration
The tools of Talent Management Integration widely encompass 2 aspects, namely the processes and execution. Supporting the processes are elements which constitutes scalability, consistency and sustainability. In all tasks within an organization, execution or implementation of the process ultimately defines the project’s success or failure. The people conducting the execution must be top down, starting with the unwavering determination of the CEO, Talent Managers, Department heads and throughout the organization. Commitment of leadership nurturing responsibility at every level is critical to the success. Hence successful talent management requires shared accountability and Top Down commitment.

Talent Management Integration Benefits
Success in Talent Management Integration entails breaking down of silos which greatly enhance work integration, facilitating collaboration between lines of business, fostering communication between Human resource and Line of Business Leaders, more actively engaging employees to elicit job satisfaction and much more.

How to Ensure Successful Talent Management Integration

• Do extensive surveys & research, internal focus groups and face to face interviews with pre-selected staff. Understand what engages and drives them.
• Develop Talent Management plans at every critical point involving your key drivers, and key "talent beneficiaries" not simply your top leaders.
• Involve a good amount of people across the company.
• Engage your key drivers and key talent beneficiaries at the onset and across levels
• Liaise across boundaries if your company is global in nature, execute the above activities with cumulative effort for synergy and to project the perception of synergy.
• Be flexible. Adapting your corporate culture to suit your talent management plan has been proven to be more effective than doing otherwise. However, this is your prerogative.
• Leverage on share management and accountability to smooth your Talent Management plan into place.
• Phase it and step up the momentum. Include more "talent" across the company with more generic programs to portray sense of "talent, me too" in staff.

Check out the parts of Talent Management Series you missed out.

Succession Planning is defined as the Identification and development of highly potential successors for key positions in an organization, through a systematic evaluation process and training. The key objective of Succession planning is to decrease interruptions and negative business impact in the event a leader leaves the organization.

Succession Planning should not be viewed simply as an internal affair as leadership consistency during CEO transitions, especially in times of crisis, is essential for business continuity. Most importantly, the transition should not affect the confidence of customers, investors and key talents.

Talent managers must recognize that effective succession planning works best when integrated with carefully structured learning process, performance management, compensation management as well as career planning - And this is the essence of Talent Management.

Together below, we shall explore and comment on some of the interesting observations which have developed in recent years:

Embracing Vertical Succession Planning Structure & Lateral Talent Selection
Traditionally, succession efforts focused only on C-level positions, but as businesses become more sophisticated, pivotal and senior executive roles have also been included in a comprehensive succession plan. To ensure proper succession management, succession planning must be propagated beyond the C-levels, and interwoven within your overall HR system and talent management strategies. Identified high potential individuals put through the escalated path should form part of your talent pools. Hence, the Vertical Succession Planning Structure.

Vertical Succession Planning encompasses propagating the corporate succession plan at each key level and function. Your company’s succession plans should include your Chief executive levels, namely CEO, CFO, COO, CTO, CMO etc; Senior executive positions, as well as the key pivotal roles. What are pivotal deemed roles depends largely on the type of company and its key functions. A leader or manager of a department whose function could greatly impact the operations or the bottom line of the company should be regarded as part of succession planning and your key talents.

Lateral Talent Selection
For every position which are C-Levels and below, there should be a talent pool supporting that level. About two key talents should be selected from each level of the talent pool to be included into the company’s succession plan. The purpose of choosing 2 talents per level and per top level capacity is to instill competition. Two can help eradicate complacency which tend to set in all too frequently when one is almost certain that the only designated talent will become successor.

Nurturing Global Talent
In global companies, where more active roles are expanded across the globe, more talents need to be selected into the Global talent pools. New skills in managing new markets require more diverse talents and leaders outside of the top level capacities.

Being In Terms with Business Risk
Any Integrated Talent Management Strategy which encompasses performance, learning, compensation management as well as succession planning, consistently moving the talent either or both vertically and laterally, takes vast amount of money and effort to nurture over time. However, as in any business transaction, talent grooming can pose great challenges, the worse of which is, of course, the leaving of the talent. And the worst of which is, the leaving of a fully groomed, strategically fitted and ready Talent. The ultimate Business Risk is when that Talent defects for a greener pasture to your competitor’s!

Being In Terms with Talent Constraints
Whenever possible, Talents should always be groomed from within. Where none is available, as a last alternative, bring in the Talent from externally. You should never give the impression that external talents are more coveted or preferred.

Also, your Talent Management strategy might vary from the above in an emerging markets scenario and require Key Talent imports into such countries for knowledge and skill transfers.

If you have missed the past posts talent management, read the Talent Management series Here.

Read the previous talent management posting Here.

Next stop in the talent management series we shall explore the integrative powess of all talent components combined.