Vision Graphics Inc. Connect Magazine July/August 2012

Vision Graphics Inc. Engaging Marketing Minds

Vol 2, Issue 4, July/August 2012

MIRROR Would you buy from you?

INSIDE Fulfilling the Dream So, who are you really?

Rework

TM

Leverage The Power of Customer Acquisition

multi-channel marketing data analysis f u l fi l l m e n t print mail

POWERFUL TOGETHER

visiongraphics-inc.com

publisher ’s letter

Reflect

3

G

reat marketers are “extraordinarily” focused on their clients. They have an innate ability to defer to their customers, while always keeping their default thinking pattern market based.

It often is said that great marketing is rooted in the mastery of marketing tools and the magic of finely tuned metrics.

But as new tricks pop up and become popular, time quickly eliminates those types of advantages. The product advantage is short and not so sweet anymore.

Great marketers have great empathy for the markets they serve. They are not married to tools; they are married to the segment. Despite the de votion to a market, the best of the best also have great humility. In other words, they don ’t take themselves too seriously and can make an honest assessment of how they’re doing.

Every once in awhile, it’s fun to step outside of ourselves and our businesses to get a little perspective. We get so absorbed in our everyday actions that we seldomly tak e time to determine if we’re on the right path. As Steven Covey , author of “The 7 Habits of Highly Effective People,” said, managers focus on making progress, while lead ers climb the tree and determine if we are head ing in the right direction.

Similar to the marketing tools at our fingertips, the technology generated by our industry is second to none. We’re seeing amazing things done with the printed word and campaign automation. But the latest tool or technology cannot define us. While we may have a technical advantage today, everyone will have it tomorrow.

Publisher

Mark Steputis mark.steputis@visiongraphics-inc.com

Every once in awhile, it’s fun to step outside of ourselves and our businesses to get a little perspective.

Our advantage is based on understanding your world and the things that you hold dear. We must become a part of your community. We must be completely sincere in our approach. And we must be able to look in the mirror and see our selves through your eyes.

Our cover ar ticle, “Mirror, Mirror,” shares some fantastic ideas about analyzing the customer experience and using that insight to better ser ve your clients. Our second feature, “F ulfilling the Dream,” discusses how selecting par tners in this climate has changed, and how critical it is to align yourself with like-minded organizations.

We hope you enjoy the latest issue of Connect. We feel like the content not only demonstrates what’s impor tant to you, but also mirrors what you take most seriously – you.

Respectfully,

Mark Steputis Publisher

Contents

Managing Editor

03 Publisher’s Letter

10 Fulfilling the Dream

Art Direction

04 Marketing Insights

14 So, who are you really?

Michele McCreath michele.mccreath@visiongraphics-inc.com Tyson Polzkill Brent Cashman Connect is published bimonthly copyright 2012. All rights reserved

Reflect

06 Mirror, Mirror

Would you buy from you?

Keys to win-win outsourcing

This eight-question quiz will show you what a big deal you are

15 Book Recommendation Rework

For more information contact Michele McCreath at michele.mccreath@visiongraphics-inc.com connect – Vision Graphics Inc. • July/August 2012

4

marketing insights

Tracking social media leads – B2C: 1 B2B: 0 From the ongoing analysis of the similarities and differences between B2B and B2C practices comes the latest from customer experience management software company Satmetrix. According to the “Worldwide Social Media Study,” B2C companies track and follow up social leads 53 percent of the time, whereas B2B companies do it only 27 percent of the time. For B2C companies, an additional 25 percent only tracked, while 4 percent only followed up. Nearly 47 percent of B2B companies neither tracked nor followed up. Of those companies that have a system in place for tracking and following up, Satmetrix found that the most popular process companies have a dedicated team that monitored and responded to customer feedback (48 percent in North America).

Marketers – start your emails…

I

n case you were wondering, email still is the main weapon in the arsenal of today’s marketers.

According to an online study by Chief Marketer, almost four in five marketing professionals (78 percent) use email outreach in their digital marketing campaigns, a far greater rate of adoption than other online-marketing tactics. Email newsletters were the No. 2 tactic (59 percent), followed closely by a social network presence (58 percent).

The fastest-adopted niche tool was the social app, used by 20 percent.

The survey also asked marketers whether they used “niche” or “secondary” interactive marketing tools. Almost three in 10 said they incorporated webinars (the most popular secondary feature used). The fastest-adopted niche tool was the social app, used by 20 percent. Interestingly, branded games also showed some promise, with 13 percent reporting they used the strategy.

That’s what he said … “ You’re not getting all the TV time, so you have to create your own story. Social media gives me a chance to do that.”

– Little known U.S. swimmer Ricky Berens on how boosting his social presence on sites such as Twitter and Facebook helped him secure sponsorship deals with BMW, Got Chocolate Milk and TYR

Social media goes around the world

The average number of minutes users spent accessing Facebook via a smartphone in the United States in March, compared with 391 minutes who accessed it via computer, according to comScore’s recent Mobile Metrix 2.0 report. The next-most popular services, according to the report, were check-in services Foursquare, with 146 minutes; microblogging service Twitter, with 114 minutes; and blogging-service Tumblr, with 68 minutes.

July/August 2012 • connect – Vision Graphics Inc.

A

re we the center of the social media universe? Be careful how you answer that question. According to a recent report by eMarketer, the rising state of social network usage is shifting away from mature markets such as North America and Western Europe, and into markets like Latin America, the Middle East, Africa, Eastern Europe and Asia-Pacific. The report – “Social Media in the Marketing Mix: Managing Global Expansion” – projected that North America’s growth rate, which was 9.5 percent in 2011, will fall to 4 percent by 2014. By contrast, the Middle East and Africa together experienced a 33.9 percent increase in social network users in 2011, while Asia-Pacific’s user population grew by 27.5 percent. Both regions will see double-digit percentage increases through 2014. In emerging social networking countries such as India and Indonesia, the report stated, brands can use what they’ve learned in their home regions to create smarter and more effective social media marketing programs tailored to local usage patterns (think accessing social networks via smartphones or feature phones).

marketing insights

5

ways you can create That’s what relevant white paper content he said...

S

tats. Figures. Resources. When you see a white paper, you want your readers to think credibility. One of the keys to writing a great white paper is to include lots of quality content. So before getting started, the Content Marketing Institute offers advice on how you can gather information you’ll need to suit your purposes. For the complete article, written by blogger and director of immittcopy Mitt Ray, visit www.contentmarketinginstitute.com/2012/06/4-tips-forfantastic-white-paper-content.

No. 1: Ask the experts Many people jump straight into researching content themselves, and then conduct interviews.

Speak to the experts first. Ask the marketing experts, product developers and subject matter experts what resources you should review. Find out about their competitors. Ask them what marketing materials they’re using. Ask about the subject’s most popular and trusted news resources, etc. This will make it easy to identify opportunities, provide ideas and meet unmet needs in your white paper content. After you read everything, interview your experts again.

This will help clarify any questions and give you information that can help you dig deeper into the subject.

No. 2: Head to a white paper distribution service Popular white paper distribution services like CNET and Trade Pub can help you widen your field of research, and learn more about the market, topics, audience and competition.

Pour through all the citations in the white papers you read, and list resources that might be a good fit.

No. 3: Find the best of what’s available on these services Many of these services have loads of white papers.

With some white paper distribution services, you can view papers by popularity. There’s a strong chance these papers achieved their popularity

because they were well written and contained the most useful information available. Because some white paper service users rate their white papers on usefulness, you can find strong examples of what potential readers want in a quality white paper. Check the name of the company and/or author who created the highly rated papers, and look for reputation, credibility, etc.

No. 4: Get additional help from the search engines Search the subject and related keywords on your favorite search engine. This will help you find the basics about the topic and help you prepare for your interviews. After the initial interviews, conduct a more thorough search on white papers and more advanced content.

You also can research the most popular search terms on Adwords, and then search those terms on the search engine. This will help you see what your audience is searching, and who your competitors are.

No. 5: Competitors’ content Searches can help you find out more about your competitors. After you perform a search, check which companies are dominating the search results, what services they provide, what white papers or other marketing materials they make available, etc. Using this information, you can write a white paper that’s similar to theirs, or you can create something different and more innovative on a similar topic.

“ Facebook has so much power online that they have the ability to buy something at a low price and then make it go high by directing traffic accordingly.

Sociologically, this is called the Matthew effect, where the rich get richer and the poor get poorer.”

– J onathan Zittrain, a professor at Harvard Law School and a co-founder of the Berkman Center for Internet and Society, on how the social media site has the opportunity to create its own future

With a little help from their friends?

Customer intelligence solutions provider Market Force had an idea: Ask 12,000 consumers in the United States and the United Kingdom how they engage industries such as retail, restaurant, travel, entertainment and financial businesses via social media sites. Interestingly, 81 percent of U.S. respondents said that posts from their friends – and not posts from a brand itself – directly influenced their purchasing decision. The finding supports an early study by the Chief Marketing Officer (CMO) Council and Lithium, which showed that 80 percent of respondents “tried new things based on friends’ suggestions.”

The percent of marketers who plan to increase the number of automated campaigns they will run this year, according to “Automation: Redefining Marketing’s Game Plan,” a recent survey by marketing automation company Silverpop and Forrester Research. The study also showed that 83 percent believe marketing automation will increase process efficiency.

The study was based on an online survey of 155 marketing executives conducted in January and February.

connect – Vision Graphics Inc. • July/August 2012

6

MIRROR Would you buy from you?

By Michael J. Pallerino

July/August 2012 • connect – Vision Graphics Inc.

7

“Learn from yesterday, live for today, hope for tomorrow.

The important thing is not to stop questioning.”

– Albert Einstein

“W

ould you buy from you?” When you think about it, the question is simple, yet extremely powerful in scope. If it came right down to it, would you buy an idea, a product or service your company is selling?

Sounds like one of those “duh” questions, right? Chad Dick doesn’t think so. His company, Eat Big Fish, of which he is a partner, works with brands around the world on separating the contenders from the pretenders, if you will, when it comes to marketing success. Ask him what the secret is for the brands that get it right, and he’ll tell you there isn’t any secret at all.

People build brands; brands don’t build themselves.

To prove his point, he likes to share a story about the importance of having your people buy into what you’re doing. The story goes like this. After making an unannounced visit to the space center in Cape Canaveral in the 1960s, President John F. Kennedy happened upon a man outfitted in overalls.

“What do you do here?” the President asked.

“I earn a living,” the man replied.

Kennedy nodded and moved on, when he came upon another man dressed in overalls. He asked the same question.

“What do you do here?”

“I clean away all the rubbish,” the man responded.

The President smiled and continued on. Shortly thereafter, he came upon a third man decked out in overalls. He repeated the question.

“So, what do you do here?”

“I’m helping put a man on the moon, Mr. President,” the man replied.

Chad Dick says the story serves as a textbook case on why it is important for every person on your team, regardless of where they stand on the corporate ladder, to believe in your message. “This man believed that his purpose was greater than just being a janitor,” Dick says. “Being a janitor wasn’t how he defined his job. Putting a man on the moon

was. The mission was something he cared deeply about. The critical point is having your people believe in what your brand stands for. And it’s that belief that makes your message credible, and authentic and believable. When your people believe, they translate that belief to others.”

Dick admits the premise, while simple, often can derail a brand’s efforts. So, what if a member of your team doesn’t believe in the message? “They should update their resumes,” he says. “If you’re working for a company, a brand or in a job that you don’t care deeply about, then you’re just doing a J-O-B. I think there are a lot of executives and marketers out there who are pretending.

“They are working in categories and industries where marketing is a function,” he continues. “It’s a task. Their job is to get people to buy something – and then buy more of it. When you see that out there in the marketplace, it’s blindingly obvious. Their message lacks the authenticity and creditability needed to be successful. It feels like you’re being sold something.”

Roger L. Beahm says that, while no company believes its employees don’t buy into what they are selling, it happens. “We marketers sometimes end up working for a company, or in an organization, or on a product, that we realize we don’t believe in, or whose values don’t align with our own,” says Beahm, a professor of the practice in marketing, and executive director of the Center for Retail Innovation at Wake Forest University. “It’s unfortunate, too, when it happens.”

connect – Vision Graphics Inc. • July/August 2012

8

Mirror, Mirror

“The critical point is having your people believe in what your brand stands for.

When your people believe, they translate that belief to others. ” – Chad Dick, Partner, Eat Big Fish

Beahm says marketers can end up conflicted and be forced into making tough choices: “Do I simply do my job and gut it out until I get transferred to another brand, or do I ask for a different assignment or look for a new company to work for? Experience shows there are a few people who intentionally try to position an inferior product or service as superior, but social media has helped shorten the length of time it now takes consumers to become enlightened.”

Marketing on the edge – and then some Eat Big Fish is a consulting firm that focuses on challenger behavior and thinking, i.e., brands that aren’t afraid to challenge the market leaders. These brands tend to use unconventional approaches to bridge the gap between marketing resources and ambitions. They also employ people who passionately believe in the message and authenticity of the brand.

Take Kulula Airlines, an Eat Big Fish client. If its competitors follow a conventional approach to marketing, the South African airline does the opposite – and isn’t bashful about letting everybody know it.

What else would you expect from an airline whose flight attendants make in flight announcements such as, “Your seat cushions can be used for flotation; and in the event of an emergency water landing, please paddle to shore and take them with our compliments.” Or, when customers call the airlines, they may receive the following message as they are put on hold: “Me Tarzan; you on hold.”

ways to enhance the customer experience

B

elieving in what you sell and being able to properly position your brand means putting yourself in your customers’ shoes. It’s a strategy that works if you are willing to give it a realistic chance. Roger L. Beahm, professor of the practice in marketing and executive director of the Center for Retail Innovation at Wake Forest University, offers six steps every marketer can take to make the process work.

July/August 2012 • connect – Vision Graphics Inc.

Kulula’s rise to this unique – and some say brilliant – approach to marketing came to light during its highly publicized battle with the international governing body of soccer, Fifa, during the 2010 World Cup in Johannesburg, South Africa. Kulula was forced to pull a tongue-in-cheek advertising campaign on travel to South Africa after Fifa complained it infringed on its trademark during the Cup. It all started with an ad on kulula.com that described the airline as the “Unofficial National Carrier of the You-Know-What.” The ad showed pictures of stadiums, vuvuzelas (those plastic horns that make those unusual sounds that drive viewers crazy) and national flags. The term “You-Know-What” was just one of the ways Kulula danced around not being an official sponsor of one of the world’s biggest events.

While Fifa never told Kulula they couldn’t use pieces that appeared in the ad, such as soccer balls, the word South Africa, the Cape Town stadium, the national flag or vuvuzelas, using a combination of each, Fifa said, was a form of “ambush marketing.” Fifa claimed the advertisement breached South African law “by seeking to gain a promotional benefit for the Kulula brand by creating an unauthorized association with the 2010 Fifa World Cup.” After pulling the advertisement, Kulula decided that enough was enough, and created a new ad that read: “Not Next Year, Not Last Year, But Somewhere in Between,” referring to 2010 in a way that seemed to mock FIFA’s approach to any marketing that associated a company with the World Cup or South Africa. The ad was illustrated

Step 1: Listen Let customers tell you about their experience. Don’t assume anything.

Probe. What do they like about the experience? What don’t they like about it? How would they change it if it was in their power to do so?

Note: Listening is not observing (see Step No. 2). Make “listening” the priority, even before you “look.”

Step 2: Observe Watch the customer experience.

Confirm what you heard them say in Step No. 1. Most people look first, or look and listen at the same time.

Unfortunately, as people who live in a visual world, we’re too susceptible to what Rosser Reeves called “vampire video” (i.e., the things we are looking at suck strength away from what we can hear; for confirmation of this, just ask people who are visually impaired). Only AFTER you’ve put your ears to work should you engage your eyes.

9 with golf tees, which looked eerily reminiscent to a certain plastic trumpet, but was labeled: “Definitely, definitely a golf tee.” The page was bordered by two hanging pieces of cloth that were labeled: “Colorful beach towel? Flag?” Toward the bottom of the page was a pair of what appeared to be soccer cleats, but no studs. Next to it, the ad said, “No, they’re running shoes.”

And dominating the middle of the page was a structure that, at first glance, looked like a football stadium. But because Kulula was told it couldn’t use the Cape Town Stadium, the structure was labeled the “Storms River suspension bridge.”

“It’s about taking a risk and believing in that risk,” Dick says.

Heidi Brauer, marketing director of Kulula Airlines, says the key to being different is doing it, not saying it.

“You have to be brave; you all have to be brave. You can’t be brave solo. The marketing department, alone, can’t be brave. You have to have a strong team of people.

And they have to be authentic. You can’t pretend. If you do, people will see through you in a heartbeat. You have to have amazing people. [They] have to be willing to go the extra mile, and know how to challenge themselves.”

Beahm says. “We’re all customers for some products and services. Role playing works even when you’re not the prime prospect. While it’s not always going to be possible, it’s often easier than we think. We may just need to do it in the privacy of our own homes.”

Beahm says that gathering customer feedback is a combination of quantitative (would you mind filling out this questionnaire for me, please?) and qualitative (please tell me about your experience) analysis. Questionnaires can help benchmark changes in attitude or behavior, while qualitative research

“ You have to be brave; you all have to be brave. You can’t be brave solo. The marketing department, alone, can’t be brave. You have to have a strong team of people.”

Mirror, mirror on the wall …

If you’re willing to ask yourself the question, “Would you buy from you?,” you’re willing to look into the mirror. You’re willing to see if you – and your people – are aligned with the message your brand wants to convey. Experts call it living your customers’ experience – seeing what they see and how they feel.

If you want to find a company that does this as well as anyone else, take a look at Procter & Gamble, the little candle and soap company started in Cincinnati in 1837 and grew into one of the world’s largest consumer package companies. From Ivory bar soap, to the Swiffer and the Gain business, the P&G product portfolio is littered with products their customers needed.

“They are good at listening, observing and innovating based on their customers’ experiences,” Wake Forest University’s Beahm says. “There aren’t many others that I would say do as good a job at this.”

The best way to understand the customer experience is to be the customer. “Go through the same process your target audience would,”

Step 3: Innovate Look for ways of to enhance the customer experience, and not just by overcoming negatives. Explore ways of building on positives, too.

It is not just about solving problems.

It’s about making things better for the customer. And because the marketplace is changing, that may be on shelf or online.

Step 4: Prioritize While you inevitably will identify multiple opportunities, you need to focus on the ones that will net you the biggest improvements (and resultant sales). In a word, “focus.”

Strategic improvements are better than tactical ones (remember, eliminating ANY negative is strategic). Substantive ones add more customer value than cosmetic ones.

– Heidi Brauer, Marketing Director, Kulula Airlines

allows you to probe areas and maximize learning. Because both approaches have inherent negatives, you can use both to overcome the negatives.

So, how do most marketers fare at this process? Beahm says it depends on size and culture. “Of course, larger marketers tend to do a better job (but it’s dangerous to generalize). Most marketers would rather invest their money in areas that work against generating sales (working dollars), rather than gathering feedback (non-working dollars). But gathering customer feedback is like buying insurance. You may not need it, but sometimes you’re awfully glad you bought it. I recommend to my students, and my consulting clients, that they get as much feedback as they can afford.”

Once marketers get feedback, they must act on it. “Why gather information if you’re not going to use it?” Beahm says. “It wastes customers’ time and it wastes your time. Feedback is not only a precious commodity, but it’s a valuable tool. It doesn’t do anyone any good if you leave the tool you need in the tool bag. Let customer feedback drive innovation. Innovation can change the future.”

Step 5: Test & Expand Once you’ve decided to introduce an innovation, don’t assume it will fix a problem right away. I’m always mindful of Newton’s Third Law of Motion, “For every action, there is an equal and opposite reaction.” Somewhere, someone’s not going to like change. If some consumers like it, others won’t.

If consumers like it, retailers won’t. If retailers like it, sales managers won’t.

Beta-test whenever and wherever you can. Phase 1 rollouts should be considered test markets. “Gut meters” are great, but there’s no substitute for quantitative research.

Step 6: Repeat Steps No. 1 through No. 4 Once you’ve rolled out the innovation or improvement, listen to the customer share his experience again. Did you accomplish your objective? What new negatives might have emerged?

connect – Vision Graphics Inc. • July/August 2012

10

Fulfilling the Dream Keys to win-win outsourcing

By Lorrie Bryan

July/August 2012 • connect – Vision Graphics Inc.

T

11 hese words by legendary professor and management consultant Peter Drucker in the late–1980s launched a new business model and started a stampede into the unchartered

frontier of outsourcing. Three decades later, more than half (63 percent) of all businesses in the United States outsource one or more processes to a third party. Nearly $6 trillion in services are outsourced annually in the United States, but much of that is little

“ Do what you do best and outsource the rest…”

more than a scramble to “shift the mess for less.”

The rush to find someone who can do it faster, better and cheaper can result in lower costs and higher productivity. But if you outsource your marketing services in 2012 the same way companies purchased commodities like paper goods 50 years ago, you may get “faster and cheaper,” but not necessarily “better.”

Microsoft’s outsourcing innovation Large companies often navigate the new frontier less efficiently than more nimble, small companies. They plod along, shifting a cumbersome mess from one shoulder to another, until they’re buried by a system that was supposed to make things better.

But look at Microsoft Corp. – one of the giants. In 2006, Microsoft decided that its major global finance processes and operations needed a major revamp. Why? Its global system had become a patchwork of inefficient and disjointed processes. For example, Microsoft determined that it was using 77,000 active procurement vendors, and its finance operations devoted 370,000 hours annually to simply producing reports. It also discovered that its procurement and finance operations didn’t have any processes that were considered “best practice.”

Senior management at Microsoft, a company distinguished by its innovative culture, determined that outsourcing would help improve quality and cost structures. But Microsoft wanted to find a better model and go beyond the conventional notion of outsourcing. “Microsoft’s vision was to shift the focus from transactional accounting to a more strategic approach that would leverage business insight. It also wanted to achieve consistency and standardization worldwide,” says Kate Vitasek, an esteemed faculty member at University of Tennessee’s Center for Executive Education.

Vitasek led an extensive study of outsourcing practices.

Vitasek says that Microsoft’s light-bulb moment was to shift the emphasis to business insight, rather than lowest-price bean counting. “The company determined it needed an unconventional approach that was not simply about outsourcing work, but about outsourcing a transformation of the work by achieving desired outcomes and by changing its definition of winning to create a mutually beneficial win-win mentality. It also needed a partner it would share that vision with over the long term, one with a vested interest in achieving that win-win mindset.”

In the end, Microsoft essentially recreated its outsourcing culture and devised a game-changing strategy that garnered numerous industry awards, and saved millions of dollars and hours of duplicity and aggravation. And its outsourcing partner, Accenture, has a future revenue stream as part of a long-term contract that most service providers would envy.

Vested outsourcing In studying the Microsoft-Accenture deal and other successful outsourcing partnerships, the UT research team learned that successful deals were governed by an unwritten set of rules that is fundamentally different from conventional outsourcing approaches.

“Most of today’s outsourcing contracts are still very much transaction based; that is, payment is exchanged for a unit of activity or a head count,” Vitasek says. “If the service provider

connect – Vision Graphics Inc. • July/August 2012

12

Fulfilling the Dream

DID YOU KNOW?

makes significant improvements in productivity, it is 5 rules of vested outsourcing simply bad business, because that progress drives The UT team, funded by one of the country’s largest reductions in its own revenue and profit. Microsoft outsourcers, the U.S. Air Force, observed that the most challenged traditional transaction-based thinking successful companies move beyond “what’s in it for me The Wall Street Journal’s and was able to achieve amazing success by craftthinking” (WIIFM) to a “what’s in it for we” (WIIFW) phiMarketWatch named Vested Outing a long-term vested relationship, where Accenture losophy. The shared goal is to create value together by sourcing as one of six ways small was highly incentivized to make investments to drive unlocking a greater opportunity than currently is realized businesses can save money. innovations for them.” by either party, rather than maximizing the size for any The result? Both achieved improved economic benefits – a true win- one player (e.g., lower costs at the expense of the outsource provider’s profits). win.

Vitasek notes that the rules of vested outsourcing are easily applicable The UT researchers call this innovative approach “vested out- to the outsourcing of marketing services, and that many business modsourcing” – the company that’s outsourcing and the service provider els are evolving in this direction. Joel Kessel of Kessel Communications, are vested in one another’s success. Together, both parties develop a a strategic communications and PR firm, says he considers most of his shared vision and mutually defined “desired outcomes.” Desired out- outsourcing relationships to be more like collaborative partnerships than comes can come in many forms: reduced costs, improved services or traditional buyer-supplier associations. increased market share. Often, service providers make significant in“My business model is somewhat unique,” Kessel says. “Companies vestments in processes, technologies and capabilities that will achieve outsource to me, then I supplement expertise, as needed, to other PR and the desired outcomes, thus creating value for the client. communications strategists and professionals that I have relationships with In exchange, the outsourcing company commits to allow the out- to build my team for each individual project. But everyone involved is aligned source provider to earn additional profit – above and beyond industry and focused on the big picture, rather than on individual tactical components.” average profits for the service area – for achieving this incremental value From their mountain of research, the UT team distilled the followdelivered by achieving the desired outcomes. Additionally, the company ing five rules of vested outsourcing, essentially a roadmap for innovators that’s outsourcing commits to providing a certain level of business – of- like Kessel who want to better navigate this expanding frontier. The Wall ten in the form of a long-term contract or minimum volume guarantees Street Journal’s MarketWatch named vested outsourcing as one of six – for the outsource provider. ways small businesses can save money.

1. Focus on outcome, not transactions Agreements are based on achieving results – not on the service provider performing tasks and getting paid for transactions. “You must first determine what your desired outcome is, and then that determines what specific transactions or activities are necessary,” Kessel says. “Otherwise, you are spinning your wheels.”

“We are much more focused on transformation than transactions,” adds Thad DeVassie of Ratchet Strategy + Communications, a communication consultant, and one of Kessel’s frequent strategic partners. “Often, a client will come to us for a specific implementation, but once we pinpoint and discuss the outcome that they are hoping to achieve, often they realize that to achieve that outcome may require a whole different implementation strategy.”

2. Focus on what, not how “Why would you outsource to experts and then tell them how to do the job?” Vitasek asks. “Make sure you focus on the what and don’t dictate how the service provider should do the work.”

DeVassie says it helps if the client approaches the challenge with an open mind. “They are much more open to change if they come to us with a problem and haven’t already predetermined the full solution. When clients are open to weighing our expertise and how we can help them achieve success, they begin to see us as partners in the work and not just vendors.”

3. Clearly define measureable and desirable outcomes Determine what you are trying to achieve. Focus on your overall goals and objectives, rather than individual activities. “When a client comes to me, I ask a lot of

July/August 2012 • connect – Vision Graphics Inc.

questions – what are you trying to accomplish, why are you trying to go this route – and really try and figure out what issues and challenges they are facing,” Kessel says. “Then I bring in the right partners to make up a focused team to accomplish the goals that we identify.”

4. Optimize pricing model incentives for the best cost/service tradeoffs Vitasek says the pricing model is one of the hardest things to get right.

“Use the incentives to transform the work – sometimes with cost-plus or sometimes fixed-price, but always with an incentive built in. Vested outsourcing does not guarantee higher profits for service providers – they’re taking a calculated risk. But it does provide them with the autonomy and authority to make strategic investments in their processes that can generate a greater ROI for

them over time, perhaps more than a conventional cost-plus or fixedprice contract might produce over the same period.”

5. Governance structure should provide insight, not merely oversight Some companies outsource with poorly defined requirements and few, or no, performance metrics or service level agreements. Others go to the other extreme, with small armies micromanaging the outsource providers.

The structure that governs an outsource agreement should provide both parties with real knowledge of how operations are developing and improving, and of potential challenges.

As Vitasek says, “Contracts may be static, but outsourcing is dynamic.”

13 Finding a good outsourcing partner Is vested outsourcing for everyone? Vitasek says no. “If you are outsourcing something that is truly a commodity, then there is limited potential for a vested deal. There really needs to be an opportunity to create value.

And there needs to be compatibility and trust.”

1. Innovation Is the service provider just going to show up and do things the way they’ve always been done, or will there be a creative and outcome–oriented result?

Kessel says he nurtures innovation by bringing in team members that have different perspectives and areas of expertise. “Through the course of our discussions, we come up with some pretty creative and innovative ways to solve problems.”

2. Team Orientation Can the service provider work on behalf of the team and as a member of a team?

“You really have to have the client’s goals first and foremost, and you are going to

get there with a team approach,” Kessel says. “You are part of that bigger picture.”

Angela Walton-Nelson, assistant VP and print production manager at SunTrust Banks, says that cost, quality and product offering are not the single-most important factors when selecting vendor partners.

“We look for suppliers that will be true extensions of our team. This partnership role allows them to share our vision, drive our message and help us achieve our company goals.

When a supplier is treated as a partner, it allows them to provide better customer service, bring ideas and provide solutions versus just selling a product.”

Vitasek and her colleagues at UT developed a “Compatibility and Trust Assessment” that examines five dimensions to evaluate the potential for a vested outsourcing fit.

3. Communication Good communication is critical. Kessel says one of the most important things people must understand about outsourcing is that you must have clear communication about goals.

“You need to clearly communicate what your goals are and why they are important to both your internal team and your outsource team. That is going to mitigate a lot of challenges.”

4. Trust Is there a foundation of mutual trust and transparency? Kessel advises you must have trust, but that it takes time. “There’s a lot of trust that has to be earned and gained to have this

level of strategic partnership. Because there is trust among my team members, we are able to have great debates and discussions, and ask the tough questions…and that’s where we get to the true innovation.”

Says Vitasek, “Trust does take time to develop, but if the other four dimensions are securely in place, then the trust will come in time.”

5. Focus Is the service provider’s focus on short-term gains or longterm goals? It is important for all parties to be in sync, Vitasek says. “The more longterm your thinking is, the more opportunity there is for a vested relationship.”

Vitasek’s advice for marketing executives looking to outsource to marketing services providers is to first make sure that it is a good fit. She suggests spending more time on your RFP (request for proposal) process and start to build the relationship then.

“Invest in the time to get to know your partner on the front end. You will have greater success if you are compatible and philosophically aligned. Hire someone who is a good fit. If they are not a good fit, it doesn’t matter how capable they are. If you don’t work well together there is less opportunity to create value and innovation.”

“Why would you outsource to experts and then tell them how to do the job?

Make sure you focus on the what, and don’t dictate how the service provider should do the work.”

– Kate Vitasek, Esteemed Faculty Member, University of Tennessee’s Center for Executive Education

Sell the Mailroom “If clerical, maintenance and support work are done by an outside independent contractor, it can offer opportunities, respect and visibility. As employees of a college, managers of student dining will never be anything but subordinates. In an independent catering company, they can rise to be VP in charge of feeding the students in a dozen schools; they might even become CEOs of their firms. Of course, there is a price for unbundling. If large numbers of people cease to be employees of the organization for which they actually work, there are bound to be substantial social repercussions.” –Peter Drucker, from “Sell the Mailroom,” his game-changing The Wall Street Journal article on outsourcing.

connect – Vision Graphics Inc. • July/August 2012

14

columnist

So, who are you really?

This eight-question quiz will show you what a big deal you are

C

esar Millan – The Dog Whisperer . Duane Chapman – Dog the Bounty Hunter. Bill Nye – The Science Guy. While dog training, bounty hunting and science might be worthy industries, few would have ever thought they ’d be breeding grounds for some of today’s unlikeliest celebrities. But, such is the case when we live in a world where the media is plugged in and turned on 24/7, 365 days a year.

Being an industry expert is easier than ever these days, but perhaps you feel a little “industry envy” when it comes to your field. Believe me, no field is too big or too small to brand yourself as the go-to expert.

Believe me, no field is too big or too small to brand yourself as the go-to expert.

By Marsha Friedman

Do you think New Hudson, Mich., is too isolated to be a hot spot for experts and celebrities? Think gardening is too insignificant a subject to own as the go-to expert? Jerry Baker would disagree. Known as “The Flower Expert,” Baker has carved an enviable niche for himself that stretches far beyond the Finger Lakes. His radio show, “On the Garden Line,” is syndicated nationwide, and his gardening specials have been televised on “PBS.” So, how did Baker, Millan, Chapman and Nye do it?

Simple: They answered the following eight questions to determine whether their expertise could support the kind of career celebrities are made of.

Question No. 1: Does what I do have value?

We all like to think what we do is valuable, not just to us, but to the world at large. Every job has value. We just have to determine exactly what ours is.

Question No. 2: Do I love what I do?

Celebrities, experts, pundits, gurus, those go-to people in any field, absolutely love what they do.

Chances are, if you’re reading this, you do, too.

Question No. 3: Do I love talking to people about what I do?

Celebrities are natural talkers, not because they like to hear themselves speak, but because they just can’t help but share their enthusiasm with other people.

Question No. 4: Do I wish more people could do what I do?

Experts in every field naturally believe their field is “the” field. They want ever yone to share their love of gardening, dogs, accounting, flying, etc.

Question No. 5: Do I have an intense desire to reach a bigger audience?

We all want to go a little further, reach a little more and do it a little faster , but experts in their fields really enjoy dominating a larger playing field each year they’re in the game.

Marsha Friedman, a 22-year veteran of the public relations industry, is CEO of EMSI Public Relations (www.emsincorporated.com), a national firm that provides PR strategy and publicity services to corporations, entertainers, authors and professional firms. She also is co-host of “The News and Experts Radio Show with Alex and Marsha,” which airs on Sirius/XM Channel 131 on Saturdays at 5 p.m. (EST).

Question No. 6: Do I know my passion inside and out?

One thing that always amazes me about my clients is how well they know their business. Experts aren’t called that because they “kinda, sor ta” know what they’re talking about. When you know your field, you’re ready, willing and, most importantly, able to “Celebritize Yourself.”

Question No. 7: Do I want more credibility through books, CDs, interviews, and more?

Modern experts recognize they must become “celebrities” to get the recognition and credibility they deserve. They view this as a natural progression of their industry expertise.

Question No. 8: Do I want to learn more by teaching more?

Every expert I’ve ever met, written about, helped publicize or interviewed has been a natural-born teacher. People with expertise want to share it, and do so willingly. In teaching others about what they do, they learn even more about themselves, their audience and their industry.

July/August 2012 • connect – Vision Graphics Inc.

book recommendation

15

Rework Authored by Jason Fried & David Heinemeier Hansson

L

e arning from your mistakes is overrated. Planning is just guessing.

Fire all the workaholics. Under do your competition . Emulate drug dealers.

Does this sound like your traditional busi ness book? Well, Rework is anything but traditional. In fact, it punches tradition in the gut.

The ideas bantered around in this best-selling book are refreshing, straightfor ward and, quite honestly, a bit difficult to grasp.

But if you’re truly interested in succeeding in business, pick up a copy today.

Jason Fried and David Heinemeier Hans son are the co -founders of 37signals, a trail blazing software company that produces prod ucts used by millions of people around the world. Widely recognized as disruptive leaders and inspirational thought leaders, they have written a “smack-you-in-the-face” book that runs completely against age-old advice and traditions, yet doesn’t take itself too seriously.

Fried and Heinemeier said that Rework is a book for hardcore entrepreneurs, small business owners and people stuck in day jobs they hate.

A quick read, Rework is a jolt to our system of meaningless meetings, conference calls and policies that dominate the corporate world. Our new economy demands new leadership and a break from the mundane. That’s why Rework is different. It makes you think differently.

The book’s design grabs your attention, while its ideas hold your attention. Based on the fact that it provides a decent antidote to all the demotivating process and bureau cracy that plagues business, Connect highly recommends Rework.

“Rework” is a jolt to our system of meaningless meetings, conference calls and policies that dominate the corporate world.

connect – Vision Graphics Inc. • July/August 2012

Vision Graphics, Inc. 5610 Boeing Drive Loveland, CO 80538

Engaging Marketing Minds

with

Make the right move...

To subscribe scan this code with your smart phone.

(Any QR app will work)

Subscribe to connect today...

E-mail us at connect@visiongraphics-inc.com or call us at 800.833.4263