8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
1/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
100LeadingOutsourceCompanyMistakesandHowYouCanConvertThemtoPositiveBusinessValue
Mistakes,obviously,
show
us
what
needs
improving.
Without
mistakes,
how
wouldweknowwhatwehadtoworkon?
PeterMcWilliams,Life101
Companiesintheearlyformativestagesarepronetocreatingproblemsthatcauseirreparableharm. A
persononcesaidthatonemistakecan lastyouaneternitywhileyourmanyrightdeedsareexpected.
The following list of mistakes that outsource suppliers make is based on our extensive global
outsourcing experiences dealingwith someof the leadingproviders andbuyers. Keep inmind that
somemay
BE
interconnected
with
other
mistakes
or
can
be
asingle
lone
item.
Regardless,
mistakes
whilebeingapowerful learning toolshouldalsobeavoidedthroughbetterplanningandpreparation.WeknowyouwillfindthelistusefulinevaluatingYOURorganizationspathforrightbusinessconduct.
HowOrganized
Thelistofmistakesisdividedupintothree(3)foundationsections;
BusinessEnterprise,
Visibility/Marketing,and
Sales.
Eachlistedmistakeiselaboratedupontoprovideclarityanddirectionasdeemedappropriate.
HowtoUse
Essential to getting value from the list of 100 Top Mistakes that Outsourcing Companies Make is
honesty. Looking objectively and critically at your business, services and people while provide
invaluableopportunities tocorrectpresent issuesand toavoid those thatare lurkingon thehorizon.
Isolation, removaland correctionareonlya start to theprocessofmistakeavoidance. Regularand
vigilantattention isnecessary inorder to reduce thepotentialof trivialmistakeshaving catastrophic
impact. While it isdifficult toanticipatea levelof regularityapurposeful selfexamination shouldbe
conductedatleastannual(ormorefrequentlyifconditionswarrant).
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
2/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
Stage1BusinessEnterpriseFoundation
1. WrongMotivationforStartingtheBusinessRegardlessofwhethertherearesoundbusinessreasonsorpersonalgoalsabusinessmusthave
asapart
of
its
motivation
the
care
and
support
of
customers.
If
the
motivates
are
selfish
and
failtoacknowledgeapartinthesocialnetworkwithotherbusinessesitwillbeatrisktofail.
2. LackofPlanninga. BusinessStrategicandTacticalPlans
b. MarketingPlans
c. SalesInitiativePlans
Planning deficiencies are often characterized by spare of themoment decisions rather than
evaluated,discussed
and
purposefully
executed
(and
measured)
events.
3. NoMarketableServicesHardtoimaginebuttherethosecompaniesthathavenothingtomarketexceptpossiblyanidea
orsomethingthattheyhaveneverdonebefore.Whileitspossibletoattractinterestthereal
situationwillsoonbecomeevidenttothebuyingpublic. Ifyouareintheformativestages
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
3/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
promotetheunveilingratherthantoannouncetheservicebeforeitexists(andyouhavetimeto
developtheoperationalinfrastructurearoundit).
4. LackofprofessionalismThis canbeboth ata corporateand individual level. Included inprofessionalismare image,
conduct, critical decision making, values, customer obligations, peer obligations and social
responsibility. Remember,whatmightbe regionallyandculturallyacceptable toyoumaybe
offensivetoclientsthatyouareattemptingtowinover.
5. NotimeRather than addressing the problem each step that is suggested to win market and sales
opportunities as unnecessary. Sometimes considered unnecessary, other times aminimalist
viewistaken ifitisneededthencommandtheattentionthatitdeserves. Therearenoshort
cutstogainsuccess.
6. CashflowSincemanyoutsourcingstartupsrequire littlecapitalizationcompanieswilluseoperatingcash
flowtobuildthisbusiness. Unfortunatelythisbecomesastarvingprincipalforgrowth. Itrobs
thecompanyofthenecessarynutrientstogrowandflourish(i.e.newventuresorexpansion).
Inaddition,italsorobstheoperationandplacesexcessdemandsonsalesquotaswhichputthe
operationatrisk.
7. OverspendingWewould call this thedrunkenpirate syndrome, spendingmoneywhere you think itmakes
sensewithoutaplan forhowmuch shouldbe spentandwhat the results shouldbe. While
thereareuncertaintiesaboutresultsoneshouldfocusonthoseareaswhereaknowndegreeof
deliverycanbeseenasbeingproduced.
8. NobusinessplanAbusinessplan isnotreservedforonly largecompanies. Strategicallyabusinessplan ismore
essentialforafledgingnewbusinessthatitisforalargeprominentorganization. Itforcesyou
toaddresswhoyouareasabusiness,whatyouwishtoaccomplish,whatneedstooccurand
the resources required tomake it happen. Itmust be honest, specific, based on facts and
devoidof
wishes.
Business
plans
may
be
lacking
or
totally
inferior
and
these
can
be
as
catastrophic has having none at all. Bad plans fail to establish goals, provide operational
directionandformameanstomonitor/modifyprogressinfulfillingtheplan.
9. FuzzyandconflictingprioritiesSmallflatlyorganizedcompaniesarepronetoallotofpowerfulandinnovativeleadership. Asa
resultofthisalphabehaviorallotofconfusioncanoccuroverwhatneedstobedone,howitsto
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
4/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
bedoneandinwhattimeframes. Tothosethathaveamoreright/wrongviewpointtheremay
bereservationtogiveadecisiveleadershipanswercausingfuzziness.
10.PoorqualityWhilequalityisdifficulttoquantifythelackthereofisnot. Itisdevoidofyouropinionandrich
in the opinions as viewed by your customer. This can range from how your company is
presented inpromotionalmaterialsto theupkeepofyourbusiness facilities. Alwaysstriveto
provide thebestpossible image foryourcompanyand insistupon thehighestquality for the
workthatyouprovide.
11.UnreliableServiceDeliveryYouwill fail if the services that areofferedareofpoorquality andunreliable. Likewise top
quality and services will fail if marketing and/or sales are poor in the discharge of their
respectiveduties. Aholisticviewmustbetakenwhereservice,promotion,andsalesarereliable
andwith
exceptional
quality.
Any
deficiency
should
be
decisively
dealt
with,
making
sure
its
beenresolvedattherootandnotjustattheobvioussymptomlevel.
12.ExpediencyThereisabalancebetweenfailingtofulfillexpectations,evenwithcause,anddeliveringtoofast
(and raising suspicions about the goodnessofwhat isproduced). Onnew relationships it is
absolutely essential that you deliver to stated expectations. Expectation control startswith
thoseearlydiscussionsandremainingincontrolofdeliverytimeframesisimport. Youmayfeel
pressured into commitments that are beyond your abilities be strong enough to advise and
proposesolutionstoaccommodateinarealisticandqualitymindedsense.
13.DistractionsTheworldisfullofdistractionsfrominternalandmarketpressures,toheavycustomerdemands
witheverychangingtechnologies. Tohelpminimizetheeffectsofdistractionsplanscanplayan
importantroletodetermineifitisINorOUTofscope. Additionallydistractionscancomefrom
toomanysocalledopportunitiespresentingthemselves. Theseneedtobecarefullyexamined
andviewedintermsofresourcecommitmentandlikelihoodofbecomeareality.
14.ProductdevelopmentThe
question
becomes
whether
work
produced,
or
elements
thereof,
are
owned
by
the
buyer
(funder) are determined contractually. These stipulations concerning intellectual ownership
rightsremaininthebalanceandareoftenweighedinasownedbythecustomer. However,are
yougivingawaywhatcouldbereusablecomponentsorproductelementsthathavecommercial
value if made generic? Consider all ramifications before leaping for the sale which by
comparisoncouldbeminimal.
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
5/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
15.DoingtheminimumAsservicesuppliersthereisacertainamountofbuyerexpectationthatyouwillnotonlydeliver
butwillalsogoa littlebitbeyondwhat isexpected. Maybeoffersomeadvice,suggestionsor
even ideas that possibly havent been considered. When deliveringjustwhat is required it
leavesthe
client
experiencing
avoid
of
emotion
and
you
without
asolid
over
the
top
reference.
16.Optimism/PessimismItsok tohaveabitofeitheroptimismorpessimism itsonlywhen it isnotcouchedwithan
appropriatelevelofdetaildoesitcomeacrosstotheclientthatyoupreemptingthefuturewith
excuses. If there is reason for concern, in either instance, provide sufficient detail and
encourage an open dialog to put everyone on notice. Buyers like leaders who remain in
commanddespiteadversityorreasonsforbeingoptimistic.
17.MotivationIllfoundedmotivationcanleadtodesperatemeasures. Whetherunderpricing,overstaffing,or
simplyovermanagementofclientengagements. Ontheotherhandbeingsocomfortablewith
your message, delivery and command over control can leave the customer feeling a bit
concerned.Motivationisimportantwhendonewithanappropriatedegreeofbalance.
18.ManagementWhat can you say about them? Often small start ups have talented management from a
technicalperspectivebutunfortunatelyweek inmanagingabusiness. Eithertheskillsneedto
bedevelopedortalentneedstobeobtained inordertofillthisvoid. Managementthat istoo
closeto
the
action
can
often
side
track
asales
opportunity
by
discussing
outcomes
and
not
presentinganappropriatevalueargument.
19.LeadershipLeadership involves honesty, forwardlooking, competent, inspirational and intelligent. One
shouldexpectstrengthinallfiveareasbutnotalwaysatthesameorderofmagnitude. TheU.S.
Marinesevengosofarasdefining14leadershipqualitiesthattheyfeelarenecessary. Aservice
providermustexhibit leadership in theoutsourcingarenaandbestrongenough tocommand
positiveleadershipattentionfromclientorganizations. Unfortunatelymanycompanieschoseto
remainfollowersandnotleading.
20.EthicsWeallhaveanideaaswhatethicsis,oftenitcharacterizedasdoingtherightthingorbehaving
intherightway. Whatcanbecomeconfusing iswhenthe right isacceptable inoneregion
and isunacceptable inanother. It ismore thansimplyacceptingtheothersmodel. Changes
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
6/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
cansometimescreatechallengesinyoursupplierbasedculture. Ethicsrelatedmattersneedto
bedefined,understood,adaptedandadopted.
21.Financing/CapitalizationAnewoutsourcingorganizationcanbestartedonashoestring. Investment in infrastructure
(computers,desks,chair)canconsumealargeamountofcapitalleavingthecompanyinafrail
fiscalstate. Theresultisathreatonviability,afoundationriskthatbuyingcompaniesexamine
andcaneasilyjeopardizeadeliverycapablecompanyfromobtainingsalesopportunities.
22.ValuesEstablish and understand the values that aremost important to the client. Thesemay be
includevaluedecisions relating to theoutsourcedengagementbutcanextendon tobusiness
decisions and the importance that it contributes to the company. Overlook client values
createsthepotentialofplacingeffortintoareasthatlackimportance.
23.PurposeToovague,toonarrow(athreatforlongtermviability),orattemptingtoeverythingtoeveryone
are suresigns formissing salesopportunities. Clearlydefinedpurposeandvision (next) item
givesbuyersachancetounderstand,acknowledgeandacceptyourreasonassomethingthey
canfeelcomfortablewithinthecontextoftheservicedrelationship.
24.VisionVision ismore thanmakingmoney vision creates the organizational purpose to accomplish
strategicgoalsthroughprecisetacticalobjectives. Thevisionisusedtohelpclientsunderstand
whywebehavethewaywedo.
25.ExcitementNoonelikesaburgeoningrelationshipthathasnospark. Oncetherelationshipgetsunderway
keeping the excitement alive is as important as deliver. This is what builds committed
customersandhelpscompaniestogrowrapidly.
26.LackofEngagementWinning a contract has all the potential of being lost if the players are not engaged. This
includesnot
just
delivery
personnel
but
senior
and
engagement
management
as
well.
Making
thesaleisonlythestarttoalongandongoingcommitmenttothecustomer.
27.UninspiredDesignCopyingthatothersdoistheeasiestwaytoselfimposeyouruniqueidentity. Studyingand
learningfromothersprovidesvaluableinsight. Butunderstandthattheirsuccessformulamight
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
7/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
notbeyours. Numerousfactorscontributetotheinabilityofoneapproachnotworkingfor
another(e.g.timing,conditions,andaudiencebeingaddressedaresomeexamples).
28.CreativityBuyerswantinnovative,creativityandleadership. Ifyourcompanyviewsyourservicesasa
commoditybuyerswillexpecttopurchasetheseatalowercost. Yettheywillexpectallofthe
creativeelementsthatmightberequiredbythemandareavailableelsewhere. Viewevery
opportunityandyourpresentationtotheclientswithamindtowardcreativity.
29.RegulationsRegulationsaremeanttobeadheredto.Whethergovernmental,industryorevenorganization
policyregulationsrepresenttheboundariesthatmustbeoperatedwithin. Buyersunderstand
thisandchoselocationsandcompaniesbasedontheseregulatorymandates. Asasupplier
showingadherenceandawarenesscanservetopromoteyourbusiness. Silenceraisesquestions
aboutyour
regulatory
interests,
and
may
be
something
that
your
competition
has
been
quick
to
exploit.
30.InternationallawsLawsfallintotwocategoriesjurisdictional(withinyourcountry)andinternational. Asaprovider
ofserviceyoumustbealsoawareofjurisdictionallawsforyourbuyer. Forthisreasonitis
invaluabletoaddressthismatterbothintermsofinitialdiscussionsandfinalcontractdetails.
Mattersofrulingandarbitrationareimportantsellingpointstoprovidecomfortforthe
customerandtoalleviateunnecessaryriskconcerns.
31.ProcrastinationProcrastination(andpossiblyparanoia)killsdeals. Listening,puttingforthasoundbusiness
proposalthatisfairlypricedwinsdeals. Unnecessaryworryabouttheperfectproposal,excess
levelsofdetails,andinsomecasesdealingwithtoomanysolutionoptionsallleadto
procrastination. Buyerswhatresponsiveness,nottooquicklybutnotexcessiveeither. Eventhe
megadealsaddresstheissueofprocrastinationbyintroducingaroadmapfordiscussions,a
frameworkforthetopicofinterestandthenbreakitupintosmallpiecesthatcangivespeed
whiledeliveringtothepointresponses.
32.FalseandMisleadingTitlesWhatisinatitle? Doesitreflectthepersonordoesitsimplyservetopromotealevelof
importance. Falseandmisleadingtitlescreatebuyerconfusionthatleadtomistrust. Buyers
whattoknowwhotheyaredealingwith,whattheycandoforthem(andtheirneeds),andhow
thatpersonwillplayapivotalroleinservicedelivery. Thereisnothingworsethanworkingwith
aperson(suchasDirector)anddiscoverthattheyaretotallynave,lacksauthorityand
unfamiliarwiththeservicesthatthecompanyprovides.
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
8/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
33.LackofStrategicVisionbeyondCurrent(possiblylimited)folio
Unlessyouaresellingprojectbasedservices(dotheworkanditsoverwith)astrategicvisionis
essentialforyouasabusiness. However,thebuyerisalsointerestinknowinghowyour
businesswillbegrowingandhowthiswillaffectthem. Isitgrowinginadirectionthatissimilar
orcounter
to
their
interests,
or
does
it
really
matter?
Beyond
the
details
of
the
strategic
vision
buyersfeelalevelofcomfortinknowingthattheretheirsuppliershavegoalsandplans. Inpart
thisinterestrepresentsfamiliaritytotheiroperationsandhowvisionsareinstrumentalintheir
organizations.
34.UseofGenericemailaccountsTheuseofgenericemailaccountsraisesconcernaboutthelegitimacyoftheorganization. Your
businessisaskingbuyerstoestablishtrustandyetthegenericemailaccountistheequivalentto
apostalboxasanaddress. Establishofficialcorporateemailaddressesandrestricttheuseof
genericaddressesforsupportingmessengerservices.
35.BiggerisBetterParadoxBiggerisnotalwaysbetter. Sizeisameasureofcapacitybutthisdoesnotinsurecompetency.
Supplierscontinuerepresentthemselvesintermsofsize,hopingthatthiswillpersuadeabuying
decision. Oftentheoppositeoccurs,sizethatlacksflexibility,capabilityandcompetitivepricing
drivesopportunitiesaway. Promoteabilityandcapacityasone.
36.PromotingaCommodityandNotaHostedService(usewhereapplicable)Unlessyouareofferingthesameexactservicetoeachcustomer,dontsellyourservicesasa
commodity.Commodity
services
are
packaged
and
used
many
times
to
reduce
cost.
Buyers
understandthisandwillexpectlowcostbutservicesuniquetotheirneeds. Packageand
promoteyourservicesbutdiscusshowitisdesignedtobecustomizedtothespecificneedsof
eachclient. Usetheserviceasthefoundationandnotthefinalofferingthatgetsofferedtothe
buyer.
37.LackofBusinessacumenOutsourcingstartupsrequireverylittleinvestmentandtheabilityofagroupofpeopletodoa
job. Forthisreasonbasicunderstandingofhowtooperate,marketandsellbusinessservices
areoftenlacking. Takethetimetodevelopbusinessacumen(knowledge/understanding)and
notwander
about
creating
an
embarrassment
for
your
company
to
overcome
for
years
into
the
future.
38.CopycattingtryingtoLookLikeSomeoneElse(notyourself)Asnotedearlier,followingwhatsomeoneelsehasdoneiseasy. However,auniqueidentity
(somethingtorememberfor)iskeytogainingbusinesssuccess. Thisiscommonlycalled
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
9/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
brandingandgoesbeyondalogotoreflectwhoyourcompanyisandpossiblyenticebuyersto
takeafurtherinterestinyou. Copycattingcanincludemarketingliterature,serviceofferings,
andevenspecialpromotionsusedtomakesale. Itisbesttoleadandsetthepacethanto
copycatandtryandkeepup.
39.SingleProductOfferingsthatareNotaNicheTheriskyoufacewithsinglenonnicheproductsisthattheyarenotuniqueandiftheyfalteryou
putthebusinessatrisk. Whilefocusandserviceconcentrationisvaluableonemustnot
overlooktheneedtosustainabusinessandshowtothebuyingpublicthatyouhavemoreto
offerthanjustonething. Evenanicecreamparlorhasmorethanonflavor.
40.RelyingtoomuchonopinionsfromthegeneralpopulationOpinionsareimportantandessentialtodevelopingyourbusiness. However,allopinions
requirecarefulscrutinyandevaluationastotheirauthenticity. Generalpopulationcomments
mayresonate
concerns,
fears,
apprehensions
that
are
based
on
instincts
and
not
on
concrete
facts. Forthisreasonconsidergeneralopinionsassimplyonedatapointamongstmany.
41.BelievingininstantaneousresultsEveryoneonesthingsinstantaneouslywhetheritbepersonalgratificationorbusinesssuccess.
Theroutetothesegoalsiscomprisedofinternal(self controlled)andexternalforcesthatshape
theway,theamountandthespeedtowhichgoalsarerealized. Forexample,ifyouemploya
personoracompanytosellforyouitrequirestimetoestablishthecontacts,tofosterthe
relationship,toengageapurposefuldiscussion,presentanoffer(throughsometimesmany
cyclesofchange),closedandsecurethedeal,andultimatelydelivertheservice. Thisisnotan
instantaneousprocess
and
one
should
not
view
those
sales
that
are
made
in
short
times
as
repeatablesincetheyarebeingdrivenbythebuyerwhoyouhavenocontrolover.
42.Overlookingtheuseofinformationresourcesinthesesubjectareas.Thehigherthestakesthemoreimportantitistoengageadvice. Sometimesacompanyis
fortunatetohavethisexpertiseonboardandtheycanbeexploited. Eventhenaperiodiccheck
shouldbecarriedouttoinsureoptimumefficiency. Ifyoudonthavesubjectmatterknowledge
thenseekadvice. Thiswillavoidexcessivestepsandwastedtime.
43.Notconsideringtheuseordevelopmentofyourownproducttoadvanceyourbusiness(orspecific
marketing
or
sales
campaigns.
Identitywasdescribedearlierinthecontextofmarketpromotion. Uniqueidentityisalso
pertinenttotheproductsandservicesyouoffered. EspeciallyintheBPO(BusinessProcess
Outsourcing)realmwherenonvoiceorcallcenterservicesappearinsimilarwayshowcanyour
companyuniqueshowwhattheyhavetoofferthatisdifferent? Followthesimpleguideof
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
10/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
HOW,WHAT,WHEN,WHYandVALUEwithspecificattentiononrisk. Buyersdonotwanttobe
thelaboratoryexperimentbehindnewproductsandservices.
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
11/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
Stage2Visibility/MarketingFoundation
44.NomarketnicheThe
world
is
abig
place
and
especially
for
new
companies
focus
is
important
to
improve
the
balancebetweeninvestmentcostandsalesreturn. Beingageneralistinabigworldisthe
easiestwaytoshortenthelifeofyourbusiness. Focussmallandgrowyoursuccessstoryin
ordertousethetestimoniestogrownthemarketniche.Marketnichecanbeforaparticular
typeofserviceorthecommunitytowhichtheservicesarebeingprovided.
45.NodifferentiationIfyouhadyourchoicebetweenproductAandproductB,bothbeingthesamebutproductA
wascheaper,whichonewouldyouchoose?Whatthingswoulddeterminethatchoicebeyond
simplyprice? Thisisthesamedilemmathatbuyerfaceandyourcompanymaybetherecipient
oflost
sales,
not
as
aresult
of
superior
ability
but
purely
based
on
price
because
you
havent
beenabletobringoutthoseuniquevirtues(thatclearlyhavetobepresentedwithinthecontext
ofbusinessvaluetothebuyer).
46.NoNetworkingBeingconnectedwithothersisinvaluable. Therecentgrowthinsocialnetworkamplifieshow
importantitistoconnect,reconnectandhowtheycanbeusedtopromoteyoucompany.
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
12/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
Withoutanetworkoffriends,colleagues,formerassociates,businessandcommunity
connectionsabusinessfacesgoingitalone. Itisobviousthatonepersonyellingthemessageis
lesseffectivethanthemasses. However,whilethenetworkisessentialtopromotingthe
positivemessageonemustalsobesensitivetonegativenewstravelingfasterinanetwork
environment.
47.ConfusingMarketingwithSalesTherolesofmarketandsalesgetconfused. Weseethisinroles,weseeitintheworkthatis
doneandthemessagethatisputforth. Thisconfusioncreatesexcessivebravadoindefenseof
theseroleswhichleadstopoorresults. Marketingisclearlyaboutpromotingthebusinessand
theservicesthatthebusinessoffers. Salestakesthisawarenessmessage(promotedmy
marketing)andmakescustomerfacingcontacttoengageadiscussionastohowatrust
relationshipcanbeestablishedandhowaworkingrelationshipcanbeformed. Divisionof
dutiesisimportantinordertoretainfocuseventhoughthatsomebelievethatasinglehatcan
bewornbybothroles.
48.SocialNetworksTheintroductionofsocialnetworks,beyondtheancientelectronicbulletinboard,hasherald
greatopportunitiesforbroadeningaglobalconnection(personallyandprofessionally).
Howevertheeasyandenticementofanewofferingcausesustojumpinwithbothfeetbefore
wehavefullydeterminedhowthesocialnetworkcanbeputtobestuse(andsafely).
a. OverusedImplementation,useandongoingmaintenancearecoststhatmustyieldbusinessvalue.
Itis
easy
to
say
that
visibility
has
value
but
even
visibility
yield
results.
This
also
involves
howmanyandwhichsocialnetworkswillbeutilized,whichwillservewhatbusiness
purposeandhowtoeffectivelykeepthemuptodate.
b. UnderusedYouvedecidedtojumpintosocialnetworksnowwhat? Isyourinvolvementaworkin
process,afinishedandpolished(static)exampleoritaliveandbreathing? Buyersare
guardedsuspiciousofcompanieswhoappeartobestaleorstagnantnotonlyonsocial
networksbutoncorporatewebsites.
c. MisusedSafetywasnotedearlierandthisreflectsthemessagethatisputforthasapartofthe
socialnetwork. Isittoopersonal,toorigidorsimplysendingaveryconfusingunofficial
andpossiblyunprofessionalmessage? Misuseisntalwaysintentionalandsometimes
growsoutofexcitementwiththetechnologies. Standbackandmakesurethatthisis
whatyouwantyourcompanytoappearas.
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
13/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
d. LackofGovernanceSocialnetworksoftenevolvefromnondeliberategrassroots efforts,sometimesbya
personoragroupwithinyourorganization. Yourbusinesshassomecatchinguptodo
inmakingorreshapingthecommitmenttothesocialnetworkoutletinvolvement.
Beyondroutine
matters
of
ongoing
support
the
organization
must
establish
who
will
overseethecarryoutofthemissiontobeservedbytheoutlet.
49.NoonlinepresenceAsmuchasweknowthatwewillsellverylittleonlinewemusthaveawebpresence. Itsour
storefrontintotheworldthatwearetryingtosellinto.Withoutthisbuyersaresuspiciousof
ourexistence,motivesandabilitytodelivery. Withthiscomesaresponsibilitythatthewebsite
isprofessionalandnotaconglomerationoftoomuchinformation. Justenoughtoenticeand
invokefurtherquestionsthatallowyoutoengageadialog(andformabondedrelationship)
50.WebsitesthatdontworkorhaveelementsthattarnishyourreputationBrokenlinks,misspellings,badgrammar,claimsofgrandeur,staleinformation,lackofcurrent
updatesraisesnumerousquestions. Atthecoreisthequestionofdeliverycredibility. Your
website(andothervisibilityoutlets)isyourcallingcard. Oftenyouonlyhaveonechancethat
allowsyoutoproceedtothenextstageofclientdiscussions.
51.CollateralpoorlyconstructedDoesyourmarketingcollateral(print,nonprint,website,socialnetworks,other.)looklikeit
wasconstructedbyachild? Collateralmustintroduceandenticefurtherdialog,notbean
unabridgedaccount
of
every
facet
of
your
business.
There
is
ample
time
to
provide
those
detailsbutuntilyoucanestablishinterestextraneousdetailsareunnecessary.
52.InternationalizationIssuesThereisliteraltranslationandpropertranslations.Whatmightbetranslatedliterallycan
introducegrammaticalandsometimeinterestingphraseology. Afriendoncesaidthathe
wantedtohaveanIntimateAffairwithhiscustomer,wheninfacehesimplywantedtohavea
CloseRelationship.Whilehumorousitwasntexactlythemessagethathewasattemptingto
communicate.
53.Green/NonGreenFormatsChoosingtherightpresentationisimportant. Selectingwhethersomethingiselectronicornot
isnotsimplymakingaGreendecision. Suppliersmustchoosetherightformtoencourage
results. Presentingsomethingelectronicallythatismoreusableinprintedformdiminishes
effectiveness.
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
14/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
54.ToomuchinformationPreviouslynoted toomuchinformationleadstoconfusionbutalsomakesthesellingeffort
moredifficult.Whyisthis?Moreinformationchallengescontroloverthesellingcycle.More
questions,oftenoutofcontext,requireresponseattentionthattakesawayfromlisteningtothe
customer.Keep
it
simple
and
remain
in
control
of
the
process
and
the
flow
of
information.
Less
isbetter.
55.FailingtoSeePurpose(toinitiateadialog)vs.BeingaCatalogWhatroledoesyourcompanyplay? Isitaservanttotheclientorapartnerinongoingsupport
forabusinessobjective. Oftenyourservicemessageissostrongthatyoufailtolistentothe
lamentofthebuyer. Rightorwrongthebuyerwillprovideinsightintotheirneeds,goalsand
timeframesbywhichtheservicedeliverywilltakeplace. Failingtopreparefor,listenanddialog
withtheprospectwillresultinproposalsthatfallshortofmeetingkeybusinessobjectives.
56.CollateralwithbadgrammarandmisspellingsFirstimpressionsleavelastingimagesofaboutthequalityconsciousnessofthesupplier. Evenif
thesepointsareminorandinfrequentbuyermayhaveheightenedconcernswhetherthiswill
spillovertotheworkyouaredoingontheirbehalf. Takethetimetoconductindepthcritical
reviewsinternally,byusingexternalqualificationorboth.
57.LackoffocusTheworldmaybeyouroysterbutifyouwishtomakewiseuseofyourmoneydontspread
yourselftoothin. Themoreareasandorganizationsyouaretryingtopromoteandsellintothe
higherthe
cost.
Limited
funds
result
in
less
money
being
spent
per
pursuit
which
jeopardizes
theeffectivenessformakingsales. Narrowyourscopebasedonyourcorecompetenciesand
theservicesthatyouaredeliveringto. Thiskeenunderstandofwhoyouareandwhatyouare
bestatwillhelptodrivewhich,
a. Regions,b. Industry,c. SizeofCompanyandd.
Services
Type
youaremostapttobesuccessfulinsellinginto.
58.Donotfalsifyfactsabout:a. CompanyHistoryb. CompanyHealth&Viability
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
15/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
c. ClientsServicedd. ServicesOfferede. SkillCapabilities
Itwill
be
only
amatter
of
time
before
you
will
be
caught
in
your
lie.
Even
when
you
stretch
the
truthinactualityyouareattemptingtocoverupwhoyouare. Beingforthrightisthebestpolicy
toavoidunnecessaryexplainingandembarrassment.
59.Collateralthatistooselfpromoting(overusingsuperlatives)Wehaveallbeonthereceivingendofpromotionalmaterialsthatmakeclaimsthatwouldbe
hardtodefend. Best,WorldClass,StateoftheArt,Only.Areafewofthosecatchwordsthat
attempttoimpressbutcanwoefullyfallshortofreality. Letthefactsspeakforthemselves.
Overorimproperuseofsuperlativescanmakeyouoneofmanycompanies,thuslosingyour
brandidentity.
60.FocusonTechnologynotonValueContributionItsoktotalkabouttechnologyinpropercontextbutdontshowcaseitasthesolution. Behind
everygoodtechnologyisanablebodiedtechnicianthatcanplyitsuseproperly. Ultimatethe
useofanytechnologyistoefficientlysupportabusinessprocess. Technologywithoutpurpose
canresultincoststhatexceedperceivedbenefits.
61.InsufficientpublicityOrganizationscannotbuywhattheyareunawareof. Publicityisimportantandshouldbe
expansive.Today
the
use
of
social
networks,
working
partnership/collaborations
and
exposure
opportunitiesallowcompaniestobeseen. Wherepublicitycanfallshortiswheresuppliersget
promotion(marketing)andsalesconfused. Exposureisnecessarybutdifficulttodrawa
correlationtointermsofearnedsales. Sufficeitthatwithoutpromotionsalesarefarmore
difficulttomake.
62.FuzzyandConfusingTerminologyItiseasyforcompaniestobesuckedintousingtrendyterminology(likeinnovativeorcloud
services)toillustratetothebuyingcommunitytheircurrentandleadingserviceposition.
Misuse
and
out
of
context
use
of
such
terminology
can
discredit
what
might
be
positive
service
offerings. Keepitsimpleandwheneverpossibleavoidfollowingtheterminologypack. Leaders
setthepaceforotherstofollow.
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
16/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
63.RelianceonOneMarketingMediumBuyersareunique. Somebuybasedonwordofmouthreferrals,othersthroughindustrial
researchwhilesomerelyheavilyontradeshowsandotherreferenceresources. Supplierswho
relyinonlyonemarketingmediumrisknotbeingseenbyaportionofthebuyingcommunity.
64.PromotingProductwithoutCompanyIdentityYourproductcanandshouldbetheflagshipforrecognizingyourcompany. Evenwithoutvisible
brandingtheproduct/serviceshouldreflectyourcompany. Newsuppliercompaniestendto
relyheavilyoneithercompanyorproductpromotionbutnottogether. Thisweakenscompany
visibilityandproduct/servicevalue.
65.ShotgunMarketingwithoutPinpointFocusAsnotedpreviously,alackoffocusislikeshootingashotgunatawall. Youareapttohitthe
wallbutyouwillfailatplacingahitonaspecifictarget. Thecombinationoftargetmarketfocus
andtheuseofmultimediagreatlyimprovetheeffectivenessofyourpromotionalefforts.
66.WebsiteMarketingDependencyYourwebsiteisyourstorefront,itisaplacetointroduceyourbusiness,showyourservicesand
illustrateyourcapabilities. Howeverbuyersdontalwaysbuyfromthewebandmayrelyheavily
onprintmedia,tradeexpositionsandevenemailtobetterunderstandthebuyingsources.
Placingallofyoutrustinonesourcedeprivesyouofothervisibilityoutlets.
67.BeingontoomanyezinelistsEverything
in
moderation,
maintain
afine
balance
with
excessive
visibility
vs.
insufficient
exposure. Ifyouaretemptedtobewidelyexposed,lookforwaystomaketomakethe
exposureinteresting. Maybeitstheclevernessoftheadvertisementsorsimplytheyoffersome
entertainmentvaluethatmakespotentialprospectwanttokeepcomingback.
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
17/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
Stage3SalesFoundation
68.SolidifyingtheRelationshipintheFirst5MinutesPlanning,preparationandartfulexecutionofyourmessageinthefirst5minutesisessential.
Peoplelackpatienceandifyourmessagetakeshourstodeliver,youhavealreadylostthe
opportunitytoyourcompetition. Keyto5minutesolidificationisknowingyourcustomerand
beonkeytopofmakingthisknownquickly. Whileyoumaynothaveallthespecificsknow
enoughtoenticebuyerstoallowacontinuedinterchange.
69.ProductpitchingBeforeyoupitchyourproductallowthebuyertogofirstinpitchingtheirservicerequest. Allow
enoughtimetogainclarificationanddevelopanunderstandingabouttheopportunityandwhat
theywish
to
accomplish
(or
how
they
services
is
to
be
delivered).
Suppliers
who
are
all
about
whattheyhaveandfocusonmakingitfittheclientaregoingtomisstheneedsofthebuying
client.
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
18/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
70.PoorproductknowledgeThereisnothingworsethannotknowingyourproductcold. Ifyoulackthiscompetencyseek
thosethatdoandallowthemtoserveasthesubjectmatterexperts. Toooftensuppliersrush
torespondwhenitwouldhavebeenprudenttoaskfortimetoevaluatethesituationand
proposeamore
durable
solution.
Know
your
products
and
services,
understand
how
they
can
beapplied,whattheyproduceforvalueandwhatlevelofadaptioncanbeaccommodated.
71.InadequateLearningDevelopmentAnessentialpartofcompanygrowthistoaccommodatelearningdevelopment. Thisinvolves
notonlytheindividualbutalsothecompany. Companylearningdealswiththestrategic
interestofthebusinesswhiletheindividualslearningisofatacticalnature. Withoutlearning
companiescanlosemarketpositionanddieaslowagonizingdeath.
72.NosalesprocessAsalesprocessisnecessarytoinsureandorderlypursuitofasale.Withoutasalesapproach
thesupplycompanymustrelysolelyonthetalentsandexpertiseoftheindividual. Thisinhibits
thesharingofknowledgeinaconsistentandcontrolfashion. Forthebuyeralackofawareness
ofnextstepscreatesconfusionandadisconnectionwiththeprospectivesupplierthatisseeking
theworkcontract.
73.LackofcustomerfollowupBuyersliketoknowthatthesupplierisinterestedenoughtohaveafollowupplan. Whilethis
maybeingeneraltermsitservesasastartingpointforbuyerstointerjectwhattimeconstraints
thatmust
be
taken
into
account.
For
the
supplier
afollow
up
program
allow
for
maintaining
successprobabilities. Eachdaywithoutbuyercontactreducesthelikelihoodformakingthe
sale.
74.Notunderstandingcustomerneeds/notknowingthecustomerBuyersliketoknowthatasuppliertakesinterestinthem. Interestinvolvesknowledgeoftheir
industry,someofthechallengesthatarefaced,theoperationalmakeupofthespecific
organizationbeingdealtwith,andkeyplayersinvolved. Oneisnotexpectedtoknowindepth
historicalfactsbutenoughthatonecanbetterunderstandhowthiseffectscurrentservice
needs.
75.PricingAkeygoalforoutsourcingisarbitrage(takingadvantageofcountervailingpricesindifferent
markets). Althoughtheremaybeothergoalspricecanoftenmakeorbreakthedeal. Onemust
bekeenlyawareofpricingfromcompetitorsandbewillingtoretainpriceflexibilitywithout
jeopardizingthebusiness. Keypricingconsiderationinclude,
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
19/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
a. NonCompetitivePricing,b. TooMuchPriceCompromise,c. ErraticandInconsistentPricing(acrossallbuyersandduringcontractprice
negotiations),
d. ThinorNoMargin,ande. TreatedasCommoditywhenItsServiceSale(diminishedcostbasedondiminished
valueofcommodityvs.customselling).
76.ProposalManagementIssuesAlackofproposalmanagement(development,constructionandpresentation)losessales
opportunities. Theartofproposaldevelopmentmusthittheneedsofthebuyerquickly,and
reflectprofessionalcareandattentionthatcanbeexpectedduringthedeliveryoftheservice
relationship.Proposal
should
also
give
consideration
to
not
such
the
leave
behind
document
butalsothepresentationthatismadetointroducetheproposalitself. Someproposal
managementissuesthatcankillthedealinclude,
a. LackofGovernance,b. AcceptingUnattainableConditions,c. DemandingTooMuch(EspeciallyPaymentTerms),andd. Ageneralfailuretoleadintheproposalandblindlyfollowwhatisrequested.
77.Inventory(akaSalesPipeline)Timehasbeentakentopursueandaccumulateleadsinthesalesinventory/pipeline. Failings
oftenoccurinfailingtoworktheinventory,addtoitonaregularongoingbasisandimproperly
classifyingtheinventory(statusandprobabilityofsuccess). Salespipelinemanagementis
crucialtoongoingrevenuegenerationaswellastakingappropriatepreparatorystepstoinsure
adequateresourceavailability.
78.Misjudgingpeople/customersOverconfidenceandassumptionscanleadtoimproperpreparation. Thisisoftenembarrassing
andincreasestheprobabilityoffailingtosecuresales. Themostcommonmisjudgments
involve,
a. FalseImpressions,b. BadBackgroundData(stale,poorlyassessed)andc. DrawingUninformedConclusions.
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
20/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
79.NotsayingthankyouAssimpleasthismightbeyouareatthemercyofthebuyer. Theyhaveopenedtheirdoorto
youandhavepatientlytoldyoutheirstoryandinreturnyouhaveshowedthemhowyoucanbe
ofassistance. Behumbleandcourteous,saythankyoufortheprivilegetoprovideinformation
usefulfortheirneeds.
80.NothavingfunTakingyourselfandyourworktooseriouslyreducestheopportunitytohavefun. Apositive
attitudeandenthusiasmiscontagiousandpeoplewanttobearoundpositivethings. Makeita
pointtohavefunintheworkthatyouaredoing.
81.BeingtheclownatthewrongtimeSometimes
humor
can
be
misinterpreted.
Its
best
to
refrain,
in
the
early
stages
of
the
relationshiptokeepyourhumortoyourself. Thiswillallowyoutobetterunderstandthe
playersanddeveloparelationshipwiththeclient. Sometimeshumorisonesnervousreaction
toanewengagementrelationshipbutkeepinginmindtheimpactofmisplacedhumorwillhelp
youtokeepyourfrivolitytoaminimum.
82.MisplacedangerItistemptingtolayblameandtakecheapshotsatyourcompetitionandeventheindustrythat
youareapartof. Onemustunderstandthatwhenyoupointafingeratsomeoneorsomething
thefingerisalsopointingbackatyouintermsofyourreaction. Whenupsetfindwaystovent
thisangerinconstructivewaysthatprovidevalueandraiseyouabovetheoccasion. Evenalost
customerisonethatcanstillprovidevaluetothebusiness.
83.Sellingtothewronglevel;notallCLevelsmakethecallEventhoughCLevelmanagementdirectsthebusinessandcontrolthepursestringsthey
seldomareinvolvedinthedaytodaydecisionmakingonoutsourcedengagement. Their
involvementisevenlessasitrelatestocriticalevaluationandassessmentofsuppliers. Doyour
homework,understandwhoarethepowerplayers,thosethatyouwillinteract,negotiateand
workwith. Alsoknowingwhotheapprovingpartiesarewillhelptofacilityandunderstandingof
theinternal
gauntlet
that
the
operational
decision
makers
must
traverse.
84.PoorpeopleskillsJustbecauseyouareinsalesdoesnotmeanthatyouareapeopleperson. Noteveryonethinks
likeyouandcertainlywhensellingtoaforeignaudiencethegapisevenlarger. Practicingwith
othersandbeingwilltoaskforcriticalpostsalesfeedbackarepositivewaystoovercomesome
ofthethingsonemightconcludeaspeoplerelatedskills.
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
21/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
85.CommunicationskillsEnglishmay very well be your second language. On a positive note your accent is apt to
captivate and even cause your customer to listen intently. Butdont overplay this, rely on
supportingcollateralandadvancepreparedpresentations. Learntospeakup,speakslowlyand
carefullychoosethewordsyouaregoingtouse.
86.Alackofbelief(Credo)Acompanyisonlygoodastheconvictionofitsemployees. Lackingenthusiasm,commitment
andbeliefiseasilyseenbythebuyer. Ifyouarentconvinced youarethebestforthejobdont
expectbuyerstoseebeyondit. Companymanagementmustvigilantlysupportcommitmenton
thepartofallemployees,especiallysalespersonnel.
87.Notenoughdrive/TooMuchDriveEverythinginbalancetoolittleortoomuchenthusiasmcanturnabuyeroff. Bestcharacterized
assoftselling,suppliersmustadapttheirinteractiontothebuyingclimate. Toolittledrive
mightbeinterpretedasarrogance,lazinessorahiddenagenda. Toomuchdrivemayindicate
desperation.
88.PoorresultsThereisnoreasonforit. Poorresultsdontimmediatelyoccurtheymanifest,andalackofopen
attentionallowsfailuresittobecomeareality. Anyresultsbadorgoodrequirecarefulanalysis
andanalteringofapproach. External influencemaybethecauseofpoorperformanceresults
butourreactiontothem isthecatalystforresponsivechange.Poorresultsjeopardizeongoing
presentandfuturerelationships.
89.SellingservicesthatarepoorlydefinedbythecustomerUnlesseveryoneagreesthatitsanexploratoryprojectitisdangeroustoofferservicesaround
vagueorpoorlydevelopedcustomerexpectations. Beforemakingthedeepcommitmentand
spendtimethatcanbelaterviewedaswastefulworkwiththecustomertoacknowledgethis
vaguenessandgaincommitmentthatsomeeffortneedstobeexpendedtobetterunderstand
anddefinetheirneeds.
90.PursuingbrokeredbusinesswheredirectcustomercontactisnotallowedSalesarethenameofthegameandoutofdesperationsuppliersmayfallpreytobrokered
businessopportunities. Crediblebrokersallowfullaccesstobuyersandprotectthemselves
withcontractualprovisionsandupfrontmonetarycompensation. Therearehoweverbrokers
thateitherrepresentfictitiousopportunitiesorareincollusionwithbuyers(splitthefeedeals)
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
22/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
wherebythesupplierisheldtodeliverythatisimpossibletoaccommodate. Ifyouare
prohibitedfrominteractingwiththecustomerBEWARE!
91.QuotadrivenstaffturnoverBuyersdrivehardbargainsonmanyfronts. Asidefrompricetheuseofquotedrivenstaff
turnover(holdingturnovertoanagreedanottoexceedlevel)isonewaybuyingcompaniescan
gainadditionalfiscalleverage. Realizingthatyoucannotforcenonturnoversuppliersmust
evaluatetheirhistoricalturnoverhistoryandthemeasuresthatarebeingusedtoretainstaff.
Basedonthesefactsaninformeddecisioncanbemaderelativetoaccommodatingthe
contractualprovision. Astemptingasitmightbetoconcedetoprovisionstogainsalesthe
consequencescanbedamaging.
92.WeakorfalsifiedforeignsalesoutletsItistemptingtolistaseriesofsales(andserviceoutlets)basedonacolleague,familymember
orfriend
who
can
answer
acall
or
attend
to
an
issue
on
your
behalf.
Unfortunately
this
is
often
perceivedasmisleadingbybuyers. Itsbesttostateyourrealityintermsoflocationsbutadd
thatyouhavebrokeredrepresentativesthatrepresentyourinterestsintheregion.
93.BrokersourcedengagementsthatlackadequatequalificationBrokersmayhaveopportunities,manyhavebeenpresentedbybuyerslookingforqualified
servicesuppliers. Verylittlemaybeknownabouttheengagementandthebuyerwhoyouare
dealingwith. Fundamentalslikecreditworthiness,paymenthistory/method,andengagement
managementmaybepoordefinedorunknown. Allengagements,regardlessofsourcerequire
deliberatecriticalevaluation.
94.Utilizingcommissiononlyagents(orattemptingtoengageonacommissiononlybasis)Duringthe1990s,whendemandexceeded,supplyitwaseasytofindWesternrepresentatives
whowouldworkonacommissiononlybasis. Timesweregoodandopportunitieswere
plentiful. Todaywefacelowereddemandandexcessivesupplythatmakesgettingjobsmuch
moredifficult. Thiscreatesaprotractedsalescycleandmoreeffortbeingexpended.
Commissiononlyagentsarebecomingscarcebecausefundingisnecessaryinordertosupport
theirefforts.
95.NopreparedsalesagendaSalesfallintovaryingtypes;thecoldcall,responsetoinquiries(alsoknownasrequestsfor
informationRFI)andattentionforrequestsforproposal(RFP). Whatisplannedapproachfor
eachofthesesalessituations? Noplanresultsinmissedtargetsandwastedtime.
96.StickingwithaScriptwhenConditionsdemandaChange
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
23/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
Nothingworsethanstickingwithapresentationoralineofthinkingwhenconditionschange.
Beflexibleandadaptive,thingsthatyouwishyoucouldsayorshowcanbedoneatalaterdate.
Customerslikesupplierswhocanthinkandrespond,thisreflectsthewaytheircompanies
behave.
97.NotbeingDirect.Ifyouwantsomethingaskforitdirectly. Customersdontwanttowaltzaroundtryingtofigure
outwhatyouwant,needorareaskingfor. Comestraighttothepointorrisklosingthesale. Be
courteousandconsiderate,andpersonalenoughtohaveempathyforthesituation. Thesame
canholdtruefornotbeingdirectwiththosethatareprovidingservicestoyourcompany(like
salesagentsandbrokers).
98.RealCollaborationsThevastmajorityofsupplierssimplywantsomeonetokeepanearopentopotentialwork. In
returnamodest
fee
is
paid
for
referred
business.
This
is
not
collaboration
but
an
agreement.
Collaborationsinvolvedaformalanddefinedinteractionbetweenthesupplierandthe
collaborativeparty. Ininvolvessharingofstrategicplans,coordinationofeffortand
measurement/adjustmenttoaddressoutcomes. Suppliersneedtobedirectaspreviously
statedandbewillingtorecognizethatexternalrelationshipsneedtobehonestandproperly
formedtofacilitytheoutcomesthatyouwant.
99.Payola/Bribes/GreasePayments/KickbacksThenormsoftheWestandtheEastcansometimescomeintoconflictwhenattemptingtomake
sales.Whethertofacilitatethesaleanyformofspecialfeeorcompensatorybonusisstrictly
prohibited.Even
casual
suggestions
can
be
viewed
as
foul
behavior
and
will
quickly
put
you
out
ofcontention.
100. KeepitSimpleApproachsalesopportunitiesinastraightforwardandsimplefashion. Acomplexproblem
doesntalwaysrequirecomplexsolutions. Simplicitykeptinpropercontrasttotheproblemwill
allowaffordablepricingforbuyersandwindealsforyou.
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
24/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
AFEWExtras!!!!101. DontCountYourChickensBeforetheHatch
Thedealisnotdoneuntiltheinkisdryonthecontract. Showrestraintinyourbehaviorand
youractions.
Slow
and
methodical
hardening
of
the
opportunity
keeps
enthusiasm
at
the
properlevel.
102. YouareonlyasGoodasyourDeliveryPartnerYoucantmakesaleswithoutacloserelationshipwiththedeliveryorganization. Failureto
properlyengagethemincriticaldecisions,likedeliverytimesandlevelofeffort,willputsalesat
risk. Inthelongtermitwillcriticallyinjurecustomer/vendorrelationships. Useateam
approachtodeliverproperorganizationalcommitment.
103. DoubleSpeakSayingorquotingonethingandfailingtodeliveraccordingtoyourcommitments. Thismaythe
resultofinternalcommunicationissues,dependencyinothersoroverlookingthecomplexityof
thetaskathand. Beforthrightandacknowledgeyourmistakeanddoitearlyenoughtoallow
forpropercustomerreactionandattention. Gettingcaughtinalieandtryingtocoveritup
(calledDoubleSpeak)willdamagethesuppliersrelationshipwithbuyers.
104. KnowwhentowalkNoteveryopportunityisrightforyou. Itcanbeissuesrelatingtothetype,amountandcriteria
thatyouwillbeheldtobythebuyer. Ontheotherhanditcanbeallaboutcultureand
personalities.Being
hungry
for
business
is
one
thing,
being
foolish
and
taking
on
opportunities
thatcouldkillyourbusinessisatotallydifferentmatter. Maybetheopportunityissuchthatyou
willonlyserveintheleadroleandyouwillsubcontract/outsourcetheengagementtoanother.
Ormaybeitsbettertosimplythankthebuyerfortheopportunitybuttowalkawaytofight
anotherday.
105. NeverstopevaluatinghowwellyouaredoingGettingtothetopofyourgamecanbegratifyingandrewarding,butstayingthereisa
challenge.Whethertheseassaultsarefromwithinthroughselfrighteousbehaviororfrom
outsidecompletionourlivelihoodwillbeconstantlyatrisk. Continuetoassesshowwellyouare
doing,what
mistakes
you
are
making
and
how
you
can
get
ahead
before
it
becomes
a
catastrophe. Sometimeslookingatwhatothersaredoingcanprovideinvaluableinsightinto
thingswewishtoavoid(amirrorisahandytool!).
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
25/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
Conclusion
Noonemakesmistakesintentionally. Errorsinjudgment,misunderstandingaboutourcustomers,
culturaldifferencesandbadinformationfosterustomakebusinessmistakes. Asinglemistakemayor
maynotcauseyourbusinesstofail,butisitworththerisk? Manyofthepointsthathavebeenmade
arebased
on
many
years
of
experience
and
seeing
first
hand
how
buyers
react
to
them.
While
it
could
bearguedthattheseareopinions,itisopinionsthatwilldefineyoursuccessorfailure.
Wehopethatyouwillputthislisttogooduseandwillsharewithusyourexperienceinusingit. All
comments,questionsandsuggestionscanbedirectedto,
TheInternationalInstituteforOutsourceManagement(IIOM)
4200VanitaCt.,Suite200
WinterSprings,FL 32708 USA
www.IntIOM.org
ReproducedwithPermissionfromCartoonStock.com
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
26/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
APPENDIXIndex
Appendix1 MistakeResolutionWorksheets
Appendix2 OtherSources
Appendix3 NeedFurtherHelp??
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
27/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
Appendix1
MistakeResolutionWorksheet: BusinessEnterpriseFoundationMISTAKE/PROBLEMAREA DOESNTEXIST EXISTS RESOLUTIONTARGETDATE
1. WrongMotivationforStartingtheBusiness2. LackofPlanning3. NoMarketableServices4. LackofProfessionalism5. Notime6. Cashflow7. Overspending8. Nobusinessplan9. Fuzzyandconflictingpriorities10. PoorQuality11. UnreliableServiceDelivery12. Expediency13. Distractions14. Productdevelopment15. Doingtheminimum16. Optimism/Pessimism 17. Motivation18. Management19. Leadership20. Ethics21. Financing/Capitalization22. Values23. Purpose24. Vision25. Excitement26. LackofEngagement27. UninspiredDesign28. Creativity29. Regulations30. InternationalLaw31. Procrastination32. FalseandMisleadingTitles33. LackofStrategicVisionbeyondCurrent(possiblylimited)folio34. UseofGenericemailaccounts35. BiggerisBetterParadox36. PromotingaCommodityandNotaHostedService(usewhere
applicable)
37.Lack
of
Business
acumen
38. CopycattingtryingtoLookLikeSomeoneElse(notyourself)39. SingleProductOfferingsthatareNotaNiche40. Relyingtoomuchonopinionsfromthegeneralpopulation41. Believingininstantaneousresults42. Overlookingtheuseofinformationresourcesinthesesubject
areas.
43. Notconsideringtheuseordevelopmentofyourownproducttoadvanceyourbusiness(orspecificmarketingorsalescampaigns.
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
28/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
Appendix1
MistakeResolutionWorksheet: Visibility/MarketingFoundationMISTAKE/PROBLEMAREA DOESNTEXIST EXISTS RESOLUTIONTARGETDATE
44. Nomarketniche45. Nodifferentiation46. NoNetworking47. ConfusingMarketingwithSales48. SocialNetworks49. NoOnlinePresence50. Websitesthatdontworkorhaveelementsthat
tarnishyourreputation
51. Collateralpoorlyconstructed52. InternationalizationIssues53. Green/NonGreenFormats54. Toomuchinformation55. FailingtoSeePurpose(toinitiateadialog)vs.
BeingaCatalog56. Collateralwithbadgrammarandmisspellings57. Lackoffocus58. DoNotFalsifyfacts59. Collateralthatistooselfpromoting(overusing
superlatives)
60. FocusonTechnologynotonValueContribution61. Insufficientpublicity62. FuzzyandConfusingTerminology63. RelianceononeMarketingMedium64. PromotingProductwithoutCompanyIdentity65. ShotgunMarketingwithoutPinpointFocus66. WebsiteMarketingDependency67. Beingontoomanyezinelists
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
29/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
Appendix1
MistakeResolutionWorksheet: SalesFoundationMISTAKE/PROBLEMAREA DOESNTEXIST EXISTS RESOLUTIONTARGETDATE
68. SolidifyingtheRelationshipintheFirst5Minutes69. Productpitching70. Poorproductknowledge71. InadequateLearningDevelopment72. Nosalesprocess73. Lackofcustomerfollowup74. Notunderstandingcustomerneeds/notknowingthe
customer
75. Pricing76. ProposalManagementIssues77. Inventory(akaSalesPipeline)78. MisjudgingPeople/Customers79. NotsayingThankYou80. Nothavingfun81. Beingtheclownatthewrongtime82. Misplacedanger83. Sellingtothewronglevel;notallCLevelsmakethecall84. Poorpeopleskills85. Communicationskills86. Alackofbelief(Credo)87. Notenoughdrive/TooMuchDrive88. Poorresults89. Sellingservicesthatarepoorlydefinedbythecustomer90. Pursuingbrokeredbusinesswheredirectcustomer
contactisnotallowed
91. Quotadrivenstaffturnover92. Weakorfalsifiedforeignsalesoutlets93. Brokersourcedengagementsthatlackadequate
qualification
94. Utilizingcommissiononlyagents(orattemptingtoengageonacommissiononlybasis)
95. Nopreparedsalesagenda96. StickingwithaScriptwhenConditionsdemandaChange97. NotbeingDirect98. RealCollaborations99. Payola/Bribes/GreasePayments/Kickbacks100. KeepitSimple
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
30/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
Appendix1
MistakeResolutionWorksheet: AFewEXTRAS!
MISTAKE/PROBLEMAREA DOESNTEXIST EXISTS RESOLUTIONTARGETDATE
101.DontcountyourchickensbeforetheyHatch 102.YouareonlyasGoodasyourDeliveryPartner 103.DoubleSpeak104.Knowwhentowalk105.Neverstopevaluatinghowwellyouaredoing
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
31/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
Appendix2ofOtherSourcesfor
CommonMistakesCompaniesMake
Source: http://www.businesswealth.com.au/business/starting/advice/failure.asp
TenCommonCausesofBusinessFailure
1. Goingintobusinessforthewrongreason.
2. Choosingabusinessthatisntveryprofitable.
3. Inadequatecashreserves.
4. Failuretoclearlydefineandunderstandyourmarket,customers,andyour
customersbuyinghabits.
5. Failuretopriceyourproductorservicecorrectly.
6. Failureto
adequately
anticipate
cash
flow.
7. Failuretoanticipateorreacttocompetition,technologyorortherchangesinthe
marketplace.
8. Overgeneralization.
9. Uncontrolledgrowth.
10.Believingyoucandoeverythingyourself.
Source: http://ezinearticles.com/?SevenCommonCausesofBusinessFailure&id=98787
SevenCommonCausesofBusinessFailure ByCraigDawber
1. Layingmoreemphasisonproduct,ratherthanmarketandmarketing
2. Layingmoreemphasisoncompanyimage.
3. GettingintoUndesirableorBadBusinessPartnership.
4. Attemptingtohaveaverycomplexbusinessmodel.
5. Attemptingtopioneeranewproductorindustry.
6. Gettinginvolvedinabusinesslawsuitandbankruptcy,
7. GettinginvolvedinmessyDivorceProceedings.
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
32/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
Appendix2ofOtherSourcesfor
CommonMistakesCompaniesMake
Source:
http://www.nickjames.com/public/161.cfm?sd=2
TheTop7CausesofBusinessFailure ByNickJames
1. Puttingtheproductfirst,withmarketingsecond.
2. Overemphasisonimage.
3. Badbusinesspartnership.
4. Businessmodelistoocomplex.
5. Thebusinessattemptstopioneeranewproductorindustry.
6. Youand
the
business
are
driven
into
bankruptcy
by
alawsuit.
7. Divorce.
Source:
http://www.associatedcontent.com/article/57473/10_causes_of_small_business_failure.html
10CausesofSmallBusinessFailureandHowtoAvoidThem
ByMichelleKnudson1. Most
small
business
owners
don't
have
enough
money
saved
up.
2. Somecompaniesdon'thaveenoughadvertisementsthroughouttheyear.
3. Somecompaniesfailsincetheydon'tgenerateenoughsales.
4. Thecompanydoesn'thireenoughstaff.
5. Thecompanydoesn'thaveahighenoughbudget.
6. Thecompanycan'tsurviveduringtheslowseasonsotheyoftenfail.
7. Acompanydoesn'thaveenoughmoneytoexpandthebusinesseventhoughitneedstoo.
8. Thecompanydoesn'thaveenoughmoneytokeepaprofessionalimage.
9. Sometrytobecheaponproductsorservicethentheyoftenfail.
10.Sometrytoviolatecityrulesorstateregulations.
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
33/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
Appendix2ofOtherSourcesfor
CommonMistakesCompaniesMake
Continued
Source:
http://www.businessknowhow.com/startup/businessfailure.htm
TheSevenPitfallsofBusinessFailure ByPatriciaSchaefer
1. Youstartyourbusinessforthewrongreasons.
2. PoorManagement
3. InsufficientCapital
4. Location,Location,Location
5. LackofPlanning
6. Overexpansion
7. NoWebsite
Source: http://mystrategicplan.com/resources/tencommoncausesofbusinessfailure/
TenCommonCausesofBusinessFailure
1. Failuretounderstandyourmarket,yourcustomers,andyourcustomersbuyinghabits.
2. Choosingabusinessthatisntveryprofitable.
3. Failuretounderstandandcommunicatewhatyouareselling.
4. Inadequatefinancing.
5. Failuretoanticipateorreacttocompetition,technology,orotherchangesinthe
marketplace.
6. Overdependenceonasinglecustomer.
7. Failuretodefineyourproduct/serviceoffering.
8. Keepingyourhouseinorder.
9. Poormanagement.
10.Noplanning.
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
34/35
2010 IIOM/DeSenaDurant AllRightsReserved
FurtherDistributionProhibitedwithoutExpressWrittenConsent
Appendix2ofOtherSourcesfor
CommonMistakesCompaniesMake
Continued
Source:
http://www.fuelnet.com/daily/getting_new_customers/theugly
truth/
TheUglyTruth5CommonCausesofBusinessFailure byKenBeaulieu
1. Driftingandsquandering.
2. Wastingcash.
3. Operatingfromthehip.
4. Copyingthecompetition.
5. Seekingmeresatisfactionfromcustomers.
8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value
35/35
Appendix3
NeedFurtherHelp?
We hope that the information provide has helped get you on the way to
convertingyourmistakestopositive improvementgains. Howeverwealsowish
toextendoursupportandmakeourselvesavailableasaresource.
Ifyouhaveaparticularareathatyouneedmoreinformationabout,wishtoaska
question,orneedfurtherclarificationpleasecompletetheformbelowandsendit
alongto:
Info@Int
IOM.org
with
the
subject
line
QG
100Mistakes.
Name: Title:
Company:
Email: Phone:
InterestArea(s):
Reference#Item
BusinessEnterpriseFoundation
Visibility/MarketingFoundation
SalesFoundation