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B E C O M I N G A S T R A T E G I C B U S I N E S S P A R T N E R W I T H Y O U R C L I E N T S
B Y
F R E D E R I C K C . M I L I T E L L O , J R .
S E N I O R T H O U G H T L E A D E R \
W W W . F U T U R E C H A N G E M A N A G E M E N T . C O M .
F M I L I T E L L O @ F U T U R E C H A N G E M A N A G E M E N T . C OM .
T E L : + 1 5 1 8 . 6 3 4 . 7 0 0 3
APPLICABLE AUDIENCES
For financial people in corporations looking to increase
their partnering relationships and get a seat at the
business table
For financial people in accounting and consulting firms
seeking to break-out of the commodity zone and into
the advisory zone
For relationship bankers seeking to differentiate
themselves and appreciate what it takes to have ―C‖
level conversations
C O P Y R I G H T 2 0 1 1 F U T U R E C H A N G E M A N A G E M E N T L L C 2
OPENING QUESTION
C O P Y R I G H T 2 0 1 1 F U T U R E C H A N G E M A N A G E M E N T L L C 3
What does it mean to be a strategic
partner and climb the relationship
pyramid?
For insight let’s look at a client
perspective.
CLIENT PERSPECTIVE/CLIENT NEEDS
Here the client is a corporate financial executive
(CFO, for example) – a client that would be very
relevant to anyone working in the financial
services industry
To serve this client we must meet his/her needs and
those needs may very well be focused on the
client’s desire to build stronger relationships with
the business people in his/her company
C O P Y R I G H T 2 0 1 1 F U T U R E C H A N G E M A N A G E M E N T L L C 4
THE CLIENT SPEAKS…
“TODAY, THE ONLY REAL POWER YOU HAVE AS A FINANCE
PERSON IS TO INFLUENCE BUSINESS DECISIONS IN THE
RIGHT DIRECTIONS AND TO MAKE AVAILABLE THE FINANCIAL
RESOURCES BUSINESS PEOPLE NEED TO ACCOMPLISH THEIR
GOALS. TO GET THAT INFLUENCE YOU NEED TO BE VIEWED AS
A STRATEGIC PARTNER. YOU NEED TO BE AT THE BUSINESS
TABLE….” GUY MERCIER, SOLVAY POLYMERS
ADAPTED FROM LEVERAGE COMPETENCIES: WHAT FINANCIAL EXECUTIVES NEED TO LEAD, PROF. MILITELLO/DR. SCHWALBERG FT/PRENTICE
HALL
C O P Y R I G H T 2 0 1 1 F U T U R E C H A N G E M A N A G E M E N T L L C 5
STRATEGIC PARTNER
= INFLUENCE
BUSINESS CHOICES
+ DECISION SUPPORT
= SEAT AT BUSINESS TABLE
Being a Strategic Partner – A Client View
C O P Y R I G H T 2 0 1 1 F U T U R E C H A N G E M A N A G E M E N T L L C 6
Key: Don’t forget clients
have their own internal
pyramids to climb.
Key: Don’t forget clients
have their own critical
success factors to
achieve.
Key: Help them climb,
help them achieve, and
you will likely climb and
achieve as well.
STRATEGIC PARTNERING QUESTIONS
Knowing that the client wants to be a strategic partner with
the business people of his/her company helps us to set our
compasses in the right direction
How can we help the client get a seat at the business table?
Are we having the right conversations?
How can we help the client keep his/her seat at the business
table?
Are we providing the right products, services and most
importantly ideas?
C O P Y R I G H T 2 0 1 1 F U T U R E C H A N G E M A N A G E M E N T L L C 7
ACHIEVING STRATEGIC PARTNERSHIP:
IT’S ALL ABOUT THE RIGHT MIND-SET AND
BEHAVIOR! IT’S ABOUT GETTING INTO THE RIGHT
RELATIONSHIP ZONE AND STAYING THERE.
C O P Y R I G H T 2 0 1 1 F U T U R E C H A N G E M A N A G E M E N T L L C 8
CLIMBING THE CLIENT RELATIONSHIP PYRAMID
There are three relationship zones:
1. The Vendor = The Danger Zone
2. The Consultant = The Comfort Zone
3. The Strategic Partner = The
Achievement Zone
Let’s look at each…
C O P Y R I G H T 2 0 1 1 F U T U R E C H A N G E M A N A G E M E N T L L C 9
THE VENDOR – THE DANGER ZONE
Focus is more on: Selling products
Reactivity
Price
Transactional knowledge
Skills
Credibility
Vendor role/behavior
C O P Y R I G H T 2 0 1 1 F U T U R E C H A N G E M A N A G E M E N T L L C 10
You are in the Danger Zone. There
is no sustainable differentiation
here. Expect to be treated like a
vendor because you are behaving
like one. You are on a
commodity-like trajectory and will
never be thought of as a strategic
partner or prospect for being so.
THE CONSULTANT – THE COMFORT ZONE
Focus is more on: Physiological needs
Proactivity/presentation
Fear
Informational knowledge
Skills/Cognition
Reliability
Consultative role/behavior
C O P Y R I G H T 2 0 1 1 F U T U R E C H A N G E M A N A G E M E N T L L C 11
You are in the Comfort Zone. This is
where most of us are satisfied
being. But it is really not a
partnership state. It does not go
beyond physiological needs and is
fearful of emotions and intuition.
Most importantly, it leaves you in
the red waters of competition –
ironically not a very comforting
place to be at all.
THE STRATEGIC PARTNER – THE ACHIEVEMENT
ZONE
Focus is more on: Psychological needs
Interactivity/conversation
Value
Tacit knowledge
Behavior/experiential
Values identification
Strategic role/behavior
C O P Y R I G H T 2 0 1 1 F U T U R E C H A N G E M A N A G E M E N T L L C 12
You are in the Achievement
Zone. Here we have
differentiation. We have
broken out of the Safety Zone
and are exploring less well
defined needs. Everything
becomes less clear (more
strategic). Our focus is clearly
on mutual needs, mutual
discovery, interactivity and
conversation. It’s a strategic
partnership.
Client
Achievement Zone
Comfort Zone
Danger Zone
C O P Y R I G H T 2 0 1 1 F U T U R E C H A N G E M A N A G E M E N T L L C 13
The further away you move from the client, the less partnership becomes a reality.
When you are in the Danger Zone you are easily replaced. You are a vendor.
When you are in the Comfort Zone you are closer to your client; however, communication still tends to be one directional. Moreover, ―conversations‖ tend to be around questions of survival and safety and not of a higher-level nature. You are a consultant.
When you are in the Achievement Zone you are close to your client. Conversations tend to focus more on mutual agendas and more psychological goals such as belonging, recognition and actualization of one’s goals. You are an advisor and partner.
Strategic partnering only can exist when you are in the Achievement Zone.
C O P Y R I G H T 2 0 1 1 F U T U R E C H A N G E M A N A G E M E N T L L C 14
Actualization
Recognition
Belonging
Safety
Survival
C O P Y R I G H T 2 0 1 1 F U T U R E C H A N G E M A N A G E M E N T L L C 15
Maslow’s Pyramid of Human Needs best depicts the desired climb on the relationship pyramid. Basically, the climb is inherit in human nature and behavior.
Before we can join a society (become partners) we must first provide for our survival and safety. These are our most basic needs. This is also where most financial service providers feel the greatest comfort. It’s their Comfort Zone.
However, ―higher-level‖ needs are where true partnering opportunities arise. It is here where we begin to see the need to belong, to be recognized and eventually to actualize our lives. This is the Achievement Zone. It is where the greatest opportunities for strategic partnering exist and largely remains an opportunity of open space
C O P Y R I G H T 2 0 1 1 F U T U R E C H A N G E M A N A G E M E N T L L C 16
The Achievement
Zone (Strategic
Partnering)
The Comfort Zone (Consultative
Selling)
C O P Y R I G H T 2 0 1 1 F U T U R E C H A N G E M A N A G E M E N T L L C 17
Let’s focus on the most likely zones of relationship climbing.
The Comfort Zone feels safe like the needs we seek to provide; namely, survival and safety. These needs correlate more easily with our product offerings. They are more explicit and tangible. But they are not viewed strategically and they do not emanate from the desire to reach out to others. They are more physiological.
The Achievement Zone is where we really begin to climb the pyramid and leave the competition behind. Here we are dealing with the human needs for belonging, recognition and actualization. Here we have the greatest opportunities for strategic conversation and partnering.
C O P Y R I G H T 2 0 1 1 F U T U R E C H A N G E M A N A G E M E N T L L C 18
Actualization = Legacy
Recognition = Social
Responsibility
Belonging = Affiliations
Safety = Insurance
Survival = Capital
C O P Y R I G H T 2 0 1 1 F U T U R E C H A N G E M A N A G E M E N T L L C 19
As you climb the relationship pyramid client needs almost naturally become more outward looking. They scream out for partnership with others.
These ―higher‖ needs become more personal. They require more trust. They require more interactivity. As an advisor, they require that you have earned the right to give advice and become a partner.
C O P Y R I G H T 2 0 1 1 F U T U R E C H A N G E M A N A G E M E N T L L C 20
EXPERIENTIAL OBSERVATIONS
The pyramid is not just an upward climb—as many
suggest Maslow originally implied.
The pyramid represents both an upward and downward
progression of client needs.
The goal is to capture the entire pyramid—making its
totality the Zone of Achievement.
The goal is to have strategic conversations where/while
others are behaving like vendors or consultants.
C O P Y R I G H T 2 0 1 1 F U T U R E C H A N G E M A N A G E M E N T L L C 21
AN EXAMPLE/FROM VENDOR TO STRATEGIC
CONVERSATIONS
Risk management is usually thought of as a safety product. It’s in our comfort zone.
However, it is not the product that determines the zone of conversation—rather it is the nature of the conversation.
For example, a company may have the need for diversification (flexibility in its operations).
It can do so by getting larger—making acquisitions.
It can do so by focusing on growth—less emphasis on core competency growth.
It can do so by changing its capital structure—deleveraging.
But how about risk management? It too can provide the business with the flexibility that business operations do not.
Risk management becomes strategic when the conversation is strategic—it moves from the Comfort Zone to the Achievement Zone!
C O P Y R I G H T 2 0 1 1 F U T U R E C H A N G E M A N A G E M E N T L L C 22
Having increased conversations with ―C‖
level executives.
Having conversations that are more
concerned with business choices
and support activities.
Having conversations that are more
concerned with belonging,
recognition and actualization.
Having strategic conversations about
needs that previously were in your
Comfort Zone.
Getting your client to the business table.
Being asked to join your client at the
business table.
Getting your client asked back to the business table.
Being asked to return to the business table with your client.
Being recognized as a business strategy and decision-support advisor.
Achieving an overall increase in client fee income.
Achieving a higher economic return on one’s client portfolio.
Achieving a far larger share of client portfolio business than one’s competitive counterparts.
C O P Y R I G H T 2 0 1 1 F U T U R E C H A N G E M A N A G E M E N T L L C 23
ACHIEVEMENT ZONE INDICATORS
Rethink what it means to be competent.
You need more than skills – you
need behavioral competencies
Build trust – third tier trust. Such trust
requires that you put the needs of
others before your own. It requires
the identification and sharing of
mutual values.
Refrain from giving advice too quickly.
Remember, you must earn the right
to give advice.
Listen to others. When you listen to
people they feel you care about
them. They trust you.
Put your own agenda aside. Stop selling
products.
Leave the Safety Zone of physiological
needs. Needs are more than
physiological. The most important
to address involve the psyche.
Enter the Achievement Zone of
psychological needs, e.g., help
others to belong, be recognized
and actualize their goals.
Practice reinforcing Achievement Zone
behaviors e.g., mutual discovery,
art of conversation, intuition, etc.
Be willing to take risks and climb the
relationship pyramid remembering
that higher levels of trust bring with
them higher levels of responsibility.
Practice leadership. Call it service
leadership if you will.
C O P Y R I G H T 2 0 1 1 F U T U R E C H A N G E M A N A G E M E N T L L C 24
ACHIEVEMENT ZONE TIPS