Memo from CEO to CMO—what have we learned from snuggle blanket?

I am often asked how CEOs and CMOs can demonstrate market leadership while faced with cutting back in a down economy.  It can be easier than you think–much easier than trying to stand out during heady times. So why don’t more leaders take advantage of slow times to break out, rather than staying with the herd?  Why is brown cow behavior, as compared to a remarkable Purple Cow, still the norm after all we have been through and with all of the management learning that has been accumulated in the post-industrial business era?

Herd management mentality is a powerful draft to be stuck behind for sure.  Of course cost cutting in tough times is a requirement–but it should not be what drives strategy!  For those with the courage to take advantage of downturns by branching out and leading your organization or brand toward a bolder future, now is a good  time to make a move.  How?  I recommend investing in areas where your competitors are not and borrowing ideas from other (often unrelated) industries.  But do it soon before you find yourself following, instead of leading, the herd again.

What else can be done? Here are some simple Reboot ideas to consider:

Focus on Clients & People
1.   Business Travel:  Everyone has pulled back, so strategically increase your travel spending on those in your organization who are best able to touch and listen to clients/prospects.  This old United Airlines TV commercial may inspire you.  Still no travel budget?–see # 3 below.

2.  Client Engagement:  In good times everyone wants to party. Instead, have mini/personal breakfast, lunch or dinner parties with your clients and find out what they are struggling with now and how you can help them more in the future. Still no budget? Send them something, like a unique gift to get the conversation going.

3.  People Acknowledgement:  It always seems harder to reward and celebrate key people in tough times—-it is not.   Acknowledge and reward people now–they will appreciate it and may be more likely to stick with you when the good times return.  Not sure what to reward? Start by recognizing those people who use their own frequent flyer miles to visit clients/prospects/partners.

Upgrade Products & Partnerships
4.  Service Improvement:  Can’t get funding to build the next breakthrough? Then fix/improve what you offer now.  Some clients love helping you with this in slow times and may appreciate your relationship more.

5.  Product Development:  Innovation doesn’t always cost money, try collaborative improvement contests and (my favorite) co-development through partnerships.  Still no funding?  Try pruning back an old product/department and use the savings to immediately fund (before it evaporates) something new. Do so before your competitors get the same idea.

6.  Acquisitions:  A smart thing to do in a down economy is to find good deals-because it is a buyer’s market…better hurry though.  Can’t stomach an acquisition, consider aggressive partnering or take a small stake in a company so you can get moving now.

Elevate Brands & Conversations
7.  Advertising:  When everyone is cutting back on ad spend, it’s easier to stand out.  Snuggle should win an award here.  Take advantage of lower ad costs and more digitally targeted advertising and promotions.

8.  Communications:  Develop a stream of branded communications with clients/prospects using multiple forms of social media, WebEx’s/video conference and, yes, even targeted email.  Don’t just broadcast information. Take the time to set up a long-term listening platform with consumers or a more direct/robust two way conversation platform with B2B clients.

9.  Thought Leadership:  Time to reboot your content and take thought leadership development seriously.  If you want to go beyond white papers that are not often read, create a new knowledge/learning platform for your industry using audio, video and images.  Invest for the long term and jump into the center of the conversation or better yet (my favorite) create a new category for your industry to talk about. The more you invest in your content platform, the easier it will be to execute on items 1-8 above.

Of course it is not enough to just zig because your competitors are zagging.  This can be hard strategic work that goes beyond quick fixes or reactionary tactics. Or, you can just execute a couple of new categories and not worry about the long term ramifications.  Whichever track you take, make bold moves that will position your brand ahead of the pack both in the downturn and for when the recovery finally emerges.