Differentiate or Die: Secrets of Silicon Valley

Differentiate or Die: Secrets of Silicon Valley

Bite-sized advice and practical tips from B2B positioning experts Bob Wright and Robert Macdonald of Firebrick. The world does not need more boring “me too” geek-speak. Instead learn how your company can accelerate revenue growth through game-changing positioning strategies.

Episodes

  1. 11/17/2020

    Differentiate or Die: Compete to Win in a Commodity B2B Tech Market

    Key takeaways Signs you’re in a commodity market: lookalike competitors, price wars, feature-list battles and “good enough” buying. The way out has three parts: elevate to an executive buyer, wake up the market with a provocative conversation, and reframe the problem around an executive-level initiative. Vendavo tied pricing to the commercial excellence initiative; Optimizely reframed A/B testing as digital experience optimization. 6:24 What is the most effective positioning strategy for winning in a commodity market? How do you compete when pricing wars are common, the buying criteria is based on feature checklists, and every vendor sounds the same? From our experience positioning more than 400 B2B tech companies, Firebrick has unlocked the secrets to successful positioning in a commodity market. Bob Wright and Bob Macdonald share their insights and a proven strategy for separating from the pack, including how to: Win the hearts of executive buyers Shape new buying criteria in your favor Redefine the category to set you up for new growth Also available in this series,The World’s Best B2B Tech Presentations, Three Keys for Successful Positioning, Not for the faint of heart, Symptoms you have a positioning problem, Positioning vs. Branding: Clearing up the confusion, B2B Positioning, CEO or CMO agenda?, Is your positioning winning or losing?, Stop the geek speak, Setting the foundation for successful positioning, B2B Positioning with and agency or in-house, When positioning expires, and The best product rarely wins. Read the transcript Bob McDonald: Hi, this is Bob McDonald, and welcome to Differentiate or Die, the Firebrick Consulting podcast series that focuses on the keys to great positioning. On this edition, Firebrick founder Bob Wright and I are going to be discussing the strategy of competing in a commodity market. Bob, you’ve helped facilitate successful positioning outcomes for close to 400 companies now, and I’m sure a lot of them felt their technology was being viewed as a commodity. Bob Wright: We’ve all seen it, right? The market’s been created, the market took off, the market’s been established — and then you’re facing a situation where everybody looks the same. There’s no clear differentiation between you and the hundreds of other competitors in the marketplace. A pricing war has broken out, there’s lots of discounting, everyone competes on who has the longest feature list, and “good enough” is okay. Bob McDonald: So those are the signs that you’re in a commodity situation. Bob Wright: You are competing in a commodity market. Bob McDonald: Is a commodity market ever hopeless, or is there always a path to better positioning? Bob Wright: Of course there’s a path. There’s a very specific positioning strategy for B2B tech companies competing in a commodity market. Bob McDonald: What’s that strategy? Bob Wright: First, you have to elevate and align to an executive buyer. Second, you have to wake up the market with a provocative conversation. And third, you have to reframe the issue or problem by connecting it to a larger executive-level initiative. Elevating to an executive buyer Bob McDonald: What’s happening when you get into a commodity situation? Are you not talking to executives at that point? Bob Wright: I’ll give you a perfect example. We had a client by the name of Vendavo, competing in the pricing market. They were stuck in the bowels of the pricing function, with long sales cycles, not a lot of differentiation, and no urgency. In response, the company bought a CPQ company because that market was starting to take off — but again, they were competing with hundreds of other CPQ companies. Every time they tried to make pricing a strategic initiative for an executive buyer, the CEO said, “Hey, that’s not my issue. Go talk to my pricing function.” So we decided to shake up the market with a provocative viewpoint and shift to an executive-level conversation. We drafted off a newly funded initiative being pushed by firms like Bain and McKinsey called commercial excellence. And we built a case that, because of Vendavo’s unique capabilities in margin management, they could really fill the space between CRM and ERP. Bob McDonald: You couldn’t elevate to an executive buyer with the old messaging, because the old messaging was developed for people further down in the organization. So they go hand in hand — you need the provocative conversation. Reframing the issue Bob McDonald: Let’s talk about the third pillar, reframing the issue. What does that mean? Bob Wright: The reframe is absolutely critical for strong positioning, particularly in commodity markets. Take Optimizely and A/B testing. They were stuck in the bowels of the marketing organization doing A/B testing. They did a successful reframe: A/B testing became digital experience optimization. As every function has become digital, that requires optimizing the digital experience. So they began a strategic conversation saying experimentation, instrumentation and digital experience optimization are the new business model. They turned A/B testing into DXO — a new business model with application across the whole organization, not just the traditional places where A/B testing took place. That’s helping them drive significant revenue growth, because they’ve moved from the bowels of the marketing organization up to a strategic conversation about business models: how to innovate, experiment and keep up with companies like Netflix and Amazon. That has ramifications not only in marketing, but in product and across the entire organization. Bob McDonald: So to wrap up: being in a commodity situation is not hopeless, and it’s not a roadblock to your future. Bob Wright: There’s always a way out, if you adopt the right positioning strategy. Bob McDonald: Thank you for joining us for this edition of Differentiate or Die. We invite you to listen to all of our podcasts on the Firebrick website at firebk.com. For Bob Wright, this is Bob McDonald saying goodbye. The post Differentiate or Die: Compete to Win in a Commodity B2B Tech Market appeared first on Firebrick Consulting.

  2. 10/31/2020

    Michael Nevins: Landing the US Market, a European perspective

    Key takeaways For a European company entering the US, a strong story is essential to cut through the clutter and own a corner of the room. Aligning around three clear differentiators transformed the whole company, from sales to R&D. Michael’s advice: use a third-party facilitator and run an inclusive, cross-company process with executive sponsorship. An outside perspective proved an advantage, even without prior ad tech experience. 10:05 Good positioning has deep transformative impact. That’s what we heard from Michael Nevins, CMO of Smart Adserver, a Paris-based ad tech company. In this Q&A, Mike shares how Smart’s recent positioning initiative delivered a compelling narrative for entering the US market. Unexpectedly, the new positioning also drove extremely valuable side effects that are changing the way the company operates – beyond marketing and sales, to operations, R&D, and every employee around the world. Read the transcript Bob McDonald: Hi, this is Bob McDonald, and welcome to Differentiate or Die, the Firebrick Consulting podcast series that focuses on the keys to great positioning. On this edition, Firebrick founder Bob Wright and I are talking about positioning with Michael Nevins, Chief Marketing Officer at Smart AdServer, a worldwide ad tech powerhouse headquartered in Paris, France. Michael leads a global team responsible for all internal and external communications, public relations, content, branding, events and product marketing. Before he joined Smart AdServer in 2017, Michael was global head of product marketing for Taboola, the world’s leading content discovery platform, which serves up billions of recommendations every month on the web’s most innovative publisher sites. Prior to Taboola, Michael served as VP of global marketing at Spongecell, where he led all brand, corporate and product marketing. Bob, where would you like to start? Positioning a European company in the US market Bob Wright: Michael, thank you very much for joining us today. My first question: what’s it like working for a company founded in Europe versus the US, and are the positioning issues you face any different as a result? Michael Nevins: That’s an interesting question. The first thing I’d say is that I have to get up earlier than most people in the US — that’s the biggest difference. We have a six-hour time difference for most of the year, and it forces me to be on my game early in the morning. From the time I wake up at 5:15, the activity level is really high until about noon Eastern. To get into the meat of your question: from a positioning perspective, I think the challenges for a French company are largely the same as for any company in the market. But as a French technology company trying to make its place in the US after being very successful in Europe, it was even more important for us to have a very strong story to cut through the clutter and establish ourselves — to borrow a phrase from Firebrick, to own a corner of the room. When you’re a challenger in a market where you don’t have a lot of history, it’s really important to consider positioning from that perspective. Bob Wright: Michael, talk about what role positioning has played in your company’s success. Michael Nevins: It’s been not quite a year since we went through the process, but I can tell you how it has affected us. First, as I mentioned, we’re in a crowded and very technical market, and it’s important to move away from the typical client-facing material: the deck that tells you about our mission, our history, our global footprint, our list of offices, employees, revenues, timeline, acquisitions, the list of features, advantages and benefits — all that old-school stuff, the comparison table, the client logos. Historically we had spent a lot of time selling from a feature-based approach, and we knew we had to change, because it was just not a modern way to sell. There were some surprises in the process. We learned very quickly that aligning the whole company around a very strong set of messages was valuable not only to the sales team, client-facing teams and executive team, but also to our R&D team, our product team — everybody across the organization is now much better aligned around our mission, because they better understand the story and the audience we’re trying to reach. So it’s really had a transformative effect on the entire organization. Working with Firebrick Bob Wright: And Michael, what surprised you most about working with Firebrick, now that you’ve been through the process? Michael Nevins: I was surprised most by the speed with which we got it done, because you worked incredibly efficiently. For a company that had never operated in ad tech before, I was amazed at how quickly you understood not only the industry at large, but the peculiarities of our organization and our position in our category. I remember when we first demonstrated our platform for Bob McDonald, he asked questions so insightful that they predicted what one of our prospective clients might ask during a demo. I knew then that we had made a very strong choice in working with Firebrick, because you seemed to have a strong intuitive understanding of our business and how our clients think. That was a big surprise — I expected it would take longer, and that it might be done better by a firm with previous experience in our category. I originally felt we were taking a risk working with someone from outside our category, but you surprised me very quickly, and I was almost immediately comfortable that we had made the right choice. Bob Wright: When you look at the whole process we facilitated and took you through, what were your impressions of the Firebrick process? Michael Nevins: I was pretty knocked out by the efficiency. I’m sure all my counterparts in the industry — CMOs, VPs of marketing, anybody operating in a busy company — don’t have time to devote entirely to a process like this. But because the process is so comprehensive, so much work gets done. I was really knocked out by how quickly you were able to get things up and running, and, candidly, how much of the work you did for me. While I participated very actively, as did many across our company, it made it feel easy. That was hard to believe, considering we started in late Q3 and delivered at the end of Q1. It was an impressive feat. I wasn’t sure we could do it, but my confidence grew dramatically after the first couple of weeks. Advice for CMOs approaching a positioning project Bob Wright: What advice would you give other CMOs approaching a positioning process? What are the keys to positioning success? Michael Nevins: First, work with a third party. Don’t try to do this yourself without somebody to at least facilitate the conversation and debate within your own organization. It’s really important to get out of the context you live in every day and embrace external perspectives — not just from your clients, partners and others in the industry, but from people who have done this for other companies, who don’t necessarily share your opinion, and who can help you think outside the box and challenge the status quo. That’s critically important. Second, it has to be an inclusive process. When we did this, we didn’t just interview our executives and sales teams; we treated it as a true cross-company initiative. That’s important for a few reasons. It can’t feel like something run out of marketing. It needs executive-level sponsorship, and it needs to span the entire organization. Sales and the executive team, of course, but you also need to hear from R&D, product, operations and finance at a minimum. That inclusive approach ensures a diversity of ideas and input, and, maybe even more importantly, it engenders support — which is critical when you want the whole company involved and excited about what you’re doing. Bob Wright: And as you were saying, having a third party facilitate gave you the freedom to participate in the process as one of the key executives in the discussion and debate. Michael Nevins: Yes, it did. I certainly felt some responsibility to make sure it all went well, but it allowed me to get out of my skin a little and into the role of participant rather than leader. That was really helpful — you put that in a great way, Bob. One thing I didn’t necessarily expect: as a cross-company initiative, it really helped strategically align the entire organization. Now everybody across our company can recite our three differentiators pretty quickly. We went as far as putting them on the walls in every one of our offices, and they’re on the coffee mugs in our kitchen in Paris and elsewhere. It’s far more than that — it’s really a transformative project for the entire company. Bob McDonald: Michael, thank you so much for joining Bob Wright and me for this edition of Differentiate or Die. We invite our listeners to enjoy our whole series of podcasts, which can be found on the Firebrick Consulting website, firebk.com. This is Bob McDonald saying goodbye for Firebrick. The post Michael Nevins: Landing the US Market, a European perspective appeared first on Firebrick Consulting.

  3. 09/22/2020

    Differentiate or Die: The World’s Best B2B Tech Presentation

    Key takeaways Shift your presentation from how the product works to why it matters to the buyer. Open with the buyer: the market change, the multimillion-dollar problem, why old approaches fail, the promised land and the buying criteria, all before any product. Then introduce the company with three or four value pillars, map features to them as evidence, and close with a call to action. A market texture slide visually reinforces the positioning; master a long, a short and a three-slide version of the story. 8:18 How do you create B2B tech presentations that your sales team actually uses and that inspire customers to say ‘yes’? Over the last decade, Firebrick has developed transformational Positioning stories for more than 400 B2B tech clients. Masterful storytellers, Bob Wright and Bob Macdonald share their insights, truths and experience on how to make the world’s best presentations, including: The 5 cardinal sins: why most tech sales decks suck Getting it right – the storyline arc The fundamentals of great positioning storylines Also available in this series, Three Keys for Successful Positioning, Not for the faint of heart, Symptoms you have a positioning problem, Positioning vs. Branding: Clearing up the confusion, B2B Positioning, CEO or CMO agenda?, Is your positioning winning or losing?, Stop the geek speak, Setting the foundation for successful positioning, B2B Positioning with and agency or in-house, When positioning expires, and The best product rarely wins. Read the transcript Bob McDonald: Hi, this is Bob McDonald, and welcome to Differentiate or Die, the Firebrick Consulting podcast series that focuses on the keys to great positioning. On this edition, Firebrick founder Bob Wright and I are going to be talking about the best sales presentation in the world. Bob, at Firebrick you have now positioned over 400 companies, and every year we’re adding to that list. You have seen sales presentations of all types, all sizes, and all levels of effectiveness. What does the best presentation look like? Bob Wright: Bob, that’s a great question, and I see this all the time. When somebody wants to talk to me about positioning, I say, “Send me over your corporate or sales presentation.” Real quickly, I can tell whether you have a positioning problem or not. The best sales presentation in the world is a fundamental shift from the typical sales presentation, which is all about the company. You’ve seen these before: all about the features, all about the product, all about the company. The best sales presentation in the world shifts that model from a product-centric conversation about how the product works to a buyer-centric conversation about why the product matters. Bob McDonald: So where does that best presentation start? What’s the material at the beginning, in contrast to information about the products and the company? Bob Wright: The best presentation in the world starts with the buyer and the problem, and introduces the company at the back end. But let me walk you through the typical B2B tech presentation that I see all the time. Slide one: here’s our great product for the cloud and mobile world. Slide two: here’s our great platform. Slide three: here’s our great monitoring feature. And don’t forget, we have some really cool analytics, because we’re now a data company. Slide five: here’s some stats to back up why we’re so great. Then the cool screenshots slide, the requisite logo splash slide, and always a slide with the executives and their cool company, because they’ve got a company dog. And slide ten is the call to action: you’d be crazy not to buy our great product from our great people. Bob McDonald: We’ve seen a lot of presentations like that. And it’s interesting that when a company has hit a rough patch, it doubles down on that model — the amount of product information in the first-call deck is off the charts, isn’t it? Bob Wright: And buyers aren’t drinking the Kool-Aid anymore. A glazed look has set in with buyers seeing these types of presentations. Think about a typical chief information security officer, a CIO or even a CFO. How many tech vendors are trying to reach them every single day with boring presentations and blah-blah-blah language, all about their features and how great their company and product are? It’s just not working anymore. The flow of the best sales presentation Bob McDonald: Okay, you’ve taken us through the bad example. Take us through the sequence of the best sales presentation, so we can get a sense of the flow. Bob Wright: The best sales presentation begins with the buyer: naming the big change or market dynamics that are causing that buyer a multimillion-dollar problem. Slide three says: you’re going to lose your job, because this problem is going to get worse. Next, you build an argument that the traditional approaches to solving this problem — including doing nothing, or going with your competitors — will no longer work. Then there’s a shift to the buying criteria. Slide five: where do you have to move to? I’ve got to move to the promised land, from this state to that state, and the only way to do it is by setting up the buying criteria. Slide six: what do you have to do to fix the problem? Here are the five or six buying criteria — the characteristics or elements that need to be in place — to solve that multimillion-dollar problem. Bob McDonald: And we still haven’t gotten to product features. Bob Wright: That’s correct. The first part of the deck builds a case that there’s a multimillion-dollar problem: naming the problem, showing the promised land — what it will look like if you move from this state to that state — and setting up the buying criteria in the company’s favor. Bob McDonald: What’s next in the flow? Bob Wright: Then you introduce the company. Slide eight is: here are three or four reasons customers exactly like you choose us. That’s what we call the pillars — typically three value statements or headlines. Slides nine, ten and eleven are the evidence: we map the features and functions to each pillar, showing why you can deliver on that unique value proposition. And then comes the call to action. The market texture Bob McDonald: Sometimes we also help the company develop what we call the market texture. Can you talk about the role of that in the best sales presentation, versus what we’d typically see — a very complex product architecture slide? Bob Wright: One of the most powerful slides in the back of the world’s best sales presentation is what we call the market texture. If you set it up correctly, you’ve built a case that there’s a big change in the world causing a multimillion-dollar problem, that if you don’t solve it you’re going to lose your job, and here’s what you have to do to fix it. Then you introduce the company and say, here are the three or four reasons we can uniquely solve this problem. The buyer’s next question is inevitably: show me what it is. That’s where the market texture comes in. It’s a visual representation of your product, but it’s designed specifically to reinforce the positioning. Many of our clients can tell the whole positioning story from that one slide. Bob McDonald: An important part of the process when we work with clients is getting them to shift to this model from their old approach — but also encouraging them not to make the presentation too big or too complex, and to know there will be follow-on meetings after introducing the concept. Bob Wright: That’s correct. Typically we deliver a long version of the story, which is 18 to 20 slides, and a short version, which is nine to ten. But if you get really good at the story setup, you can tell the whole story in three slides. Bob McDonald: Which sets up a framework for understanding a lot of other information about the company and its products — but that comes in follow-on presentations. Bob Wright: I think that’s the cardinal sin I see a lot of B2B tech companies commit. They just start spouting off features, hoping one of them will catch the buyer’s eye. And if the buyer glazes over, they throw more features at them, until at some point the buyer says, “Oh, that’s the feature I’m really looking for.” That model just does not work anymore. What’s more effective is providing the context for all the complexity of the features and functions that sit underneath. Bob McDonald: You’ve been listening to Bob Wright, founder of Firebrick Consulting, talking about the best sales presentation in the world. Thank you for joining us for this edition of Differentiate or Die. We invite you to listen to all our podcasts on the Firebrick Consulting website, firebk.com. For Firebrick, this is Bob McDonald signing off. The post Differentiate or Die: The World’s Best B2B Tech Presentation appeared first on Firebrick Consulting.

  4. 09/14/2020

    Katey Mokelke: Hitting the bullseye with Positioning

    Key takeaways Don’t throw positioning over the wall: plan both the internal and external rollout. Launch internally at a town hall or kickoff, use senior ambassadors, and give sales companion materials and train-the-trainer sessions. Stay the course for a quarter or two, then fine-tune using the feedback you’ve captured. Validate before launch at three levels: soft testing, structured customer interviews and blind focus groups. 18:52 You made a big bet with your new positioning, how do you make sure it hits the mark when rolling it out? Katey Mokelke knows what it takes to successfully navigate the “last mile” of a strategic positioning initiative. Based on her leadership of more than 50 engagements in the past seven years as a Firebrick positioning consultant, Katey discusses the keys to activating a new positioning for maximum impact, including: Getting it right – launching a new positioning strategy Best practices for sales enablement of a new sales pitch Positioning vs. Messaging – what’s the difference?   Read the transcript Bob McDonald: Hi, this is Bob McDonald, and welcome to Differentiate or Die, the Firebrick Consulting podcast series that focuses on the keys to great positioning. On this edition, Firebrick founder Bob Wright and I are going to be talking about hitting the bullseye with your positioning — best practices for operationalizing your story — with one of our own Firebrick positioning consultants, Katey Mokelke. Katey just celebrated her seventh anniversary at Firebrick, and she has now worked on over 50 Firebrick positioning engagements. When she came to Firebrick seven years ago, Katey brought over 15 years of experience leading launch, pre- and post-acquisition, and market-differentiating communications programs for dozens of B2B tech companies. Most notably, Katey was a vice president at Horn Group, one of the most enduring agency brands in the tech industry. At Horn, she was the go-to player for any account with a complex positioning problem, whether for technology, market or reputation reasons. She helped lead a number of Horn’s largest clients, including Novell and RightNow. She also led the company’s book launch practice, working closely with, among others, Crossing the Chasm author Geoffrey Moore. Katey, welcome to the podcast. Bob Wright: As some of our listeners are aware, our Firebrick business cards now carry, in addition to our title, a word that best describes a talent we each contribute to the Firebrick positioning process. Tell us what’s behind your choice of the word “Illuminator.” Katey Mokelke: Thanks — and first, thanks for having me. It’s really fun to talk to you both about this. We had a lot of fun with those titles and a lot of good conversations. I chose Illuminator because I like to think I help shine a light on things for Firebrick — for our team, for our clients, and in the process we have — helping bring our ideas and concepts to life. That’s really the idea behind Illuminator. Bob Wright: On many levels — not just in the workshops themselves, where you also play that role. Katey Mokelke: Yes. It’s illuminating what a company needs to do at a strategy level with its positioning, but also, overall, how to get a client from point A to point B with a really strong positioning story. And I think that ties into today’s topic, because it’s not just about creating the positioning story; it’s also about how you roll it out. That’s just as important as the story itself. Don’t throw it over the wall Bob Wright: Let’s talk about that in more detail, Katey. You’ve seen a lot of positioning rollouts in your career. In a positioning engagement, we spend an intense six to eight weeks developing a positioning strategy, positioning story and messaging for a client. Then we hand over those deliverables, and they’re ready to operationalize. What’s the first thing you always recommend to a client for a successful rollout? Katey Mokelke: That’s a really good question. The first thing I’ll say is what you don’t do. After all that great thought and time spent on the positioning, bringing in multiple stakeholders, you don’t just throw it over the wall and say, “Here you go, run with it.” What’s really important is that clients take a step back, be really intentional about how they want to roll out the positioning, and come up with a plan — for the internal rollout of the story, and also externally. The internal rollout Bob Wright: What are some of the key elements of that plan — the buckets they need to think about before they start telling people about the great new positioning? Katey Mokelke: One of the first things I always want to see is an internal company rollout: figuring out the right time to roll it out to all employees. That could be a town hall meeting, an internal sales kickoff, or another important internal milestone meeting, where the executive team introduces the new positioning, talks about the process and journey that got them there, and takes the time to celebrate: “We got to this point, we’re putting a stake in the ground — now come join us on this journey. This is the story we’re taking to market.” Bob McDonald: When we talk about the internal rollout, many clients immediately think of sales enablement, but you’re talking beyond sales enablement — to company enablement, and how you’re going to train the company on the new positioning. Katey Mokelke: Yes. It’s really about making sure you set aside the time, particularly for the executives, to introduce the story to the rest of the employees. That’s one key thing. The other thing I really love to see is finding a couple of very senior ambassadors for the positioning within the company — usually the CEO or CMO, or maybe the head of sales — someone who will practice giving the story. You might even record them giving it on video, so it can be distributed across the organization and people can actually hear someone give the positioning, hear it come to life, and really get their heads around it. Sales enablement Bob Wright: Katey, in addition to the internal rollout, there’s the external rollout, and we also talked about sales enablement. What are the best practices you’ve seen for getting a sales organization up to speed on new positioning? Katey Mokelke: There are a couple of things. The first step is making sure that, in addition to the positioning and the positioning presentation, you have supporting materials created specifically for the sales team. They give background on what the positioning is and how to use it, what to look for, and what the different elements of the strategy are, along with specific messages written for a sales audience. How do you translate the positioning down to the field sales team so they have the right language to engage their buyers? So the first thing is having supporting materials they can use to put the positioning into practice. The second is, again, being intentional and setting aside the time to train the right people in the sales organization, so they’re equipped not only to start using it, but to model for the rest of the sales team how to use it. A lot of times we’ll do a train-the-trainer session: we set aside a half day or a full day with key sales leaders, walk them through the positioning — often they were involved in developing it — talk them through the components, the slides and the rationale behind them, address their questions, objections and feedback, and give them an opportunity to practice giving it in front of their peers, so they really get behind the story. Bob McDonald: One of the great benefits of our process, of course, is that some of the key sales executives have participated in developing the positioning story, so they’re already queued up to play those leadership roles. Katey Mokelke: Absolutely. Although I’m always surprised that even for anyone who’s been along on the journey the whole way — even for me — everyone benefits from setting aside time to really delve into it: practicing delivering the slides and the talking points, and thinking about additional examples to expand on the slides. Staying the course Bob Wright: How important is it for the executive team to drive consistency during the operationalizing and rollout of a new positioning? Katey Mokelke: Very important — you might have guessed I was going to say that. It’s really, really important, because once you start using the story in the field — with customers, analysts or investors — you’re going to get feedback, and that’s a natural part of the process. You need the leadership behind it, because you don’t want people taking it, getting feedback, and changing it based on the last conversation they had. You really need consistency over a quarter or two, and then you take a holistic look at the positioning and maybe make some adjustments. Having the leadership team behind the positioning ahead of time helps you stay the course. Bob McDonald: So staying the course is really important at the beginning of the rollout, and doing some tuning six months in is a good time to step back and see what’s working and what’s not. Katey Mokelke: Absolutely. After a quarter or two, have some mechanism along the way to capture the feedback, and then create a milestone where you get together as a group — often Firebrick comes back in for a positioning review — or run some sort of survey. Just set aside time to look at it and figure out how to fine-tune it based on everything you’ve learned. Testing the positioning before rollout Bob Wright: Another topic I know you feel strongly about is testing the positioning after it’s developed, before you roll it out. Talk about that for a moment. Katey Mokelke: I love to bring this up during workshops, because I beli

  5. 08/24/2020

    Laura Dunbar: Positioning to recapture market leadership

    Key takeaways Two litmus tests: a 38-slide sales deck, and a mother who still can’t explain what you do. Positioning equates to relevance: urgency around one problem worth solving, and proof you’re uniquely qualified to solve it. Cross-functional ownership avoids adoption pockets and delivers fuller pipeline, shorter sales cycles and more revenue. Common misconceptions: that positioning is a marketing project, that it’s the same as messaging, and that the best product wins. 12:42 How does a company retake its rightful position in the market? In this pre-COVID conversation, Laura Dunbar, SVP of Marketing at GHX – the leading digital trading network for the healthcare industry – shares her experience taking on a new SVPM post, and the strategic role Positioning played in transforming the company to retake a category leadership position while changing the perception of the marketing organization. In this Q&A Laura shares: When’s the right time for Positioning? How can Positioning be used to get a company’s “mojo” back? What are the advantages of hiring an outside firm to run the process? Read the transcript Bob McDonald: Hi, this is Bob McDonald, and welcome to Differentiate or Die, the Firebrick Consulting podcast series that focuses on the keys to great positioning. On this edition, Firebrick founder Bob Wright and I are going to be talking about positioning with Laura Dunbar, senior vice president of global marketing at GHX. GHX is a healthcare business and data automation company that empowers healthcare organizations to provide better patient care and maximize industry savings using GHX’s world-class, cloud-based supply chain technology exchange platform. Since joining GHX in 2018, Laura has focused on expanding GHX’s market presence, improving its growth strategy and deepening its engagement with customers. Laura has more than two decades of marketing leadership experience concentrated in healthcare and IT-related organizations. Prior to GHX, Laura served as vice president of marketing at GetWellNetwork, a leading provider of patient engagement technology solutions. She has also held marketing leadership roles at West Corporation, as vice president of marketing strategy for the healthcare practice, and at VMware, where she led product marketing for the company’s IT business management and IT benchmarking solutions. Bob, where do you want to start? Knowing when your positioning needs to change Bob Wright: Laura, thank you so much for joining us today. You were brought in as the new head of marketing at GHX. What role does positioning play in helping GHX keep its market leadership and jumpstart growth? Laura Dunbar: Thank you, Bob and Bob. It’s an honor and a pleasure to be with you today. It might be worth taking a step back and answering the question: how do we know we need to evolve, change or strengthen our positioning? The answer is actually really easy. It’s because our sales deck was 38 slides, and after 20 chats over dinner, my mother still had no idea what I do for a living. All joking aside, those are two of the litmus tests Firebrick asked us to consider on whether we needed new positioning, and the answer to both was a resounding yes. Speaking for the healthcare technology segment, where I’ve spent the last seven or eight years of my career, the speed of change in that market is really accelerating. The problems customers are trying to solve as they balance the cost-and-quality equation in healthcare are becoming more complex, and the stakes are getting higher. Not only that, buying decisions are often being made at even higher levels in the organization. When that happens, you often find your positioning hasn’t kept pace with the change. That provides an opportunity to refocus on the buyer — in Firebrick terms, your “Mary” — and get really clear on the biggest problem you’re trying to solve, why it’s worth solving, and how your company, your solution and your approach are uniquely able to measurably solve that challenge. Bob Wright: Laura, why is positioning so important? Laura Dunbar: Bob, that’s a great question. The answer often seems so easy, but when you really dig deep, it’s a tough one. For me, positioning equates to relevance. If you’re not positioned in a way that creates urgency around a singular problem worth solving, and you’re not positioned in a way that demonstrates you’re uniquely qualified to solve it, you’ve got to go back to the drawing board, because you’re just not going to be relevant in the eyes of your Mary — your buyer. And cross-functional engagement as part of a positioning effort is really critical. It’s one of the most important lessons I’ve learned working with the Firebrick team over the years. When you have engagement from leadership, marketing, sales, product and customer success, you have collective ownership of the output, and you have a far greater chance of success in operationalizing the story consistently across the organization, rather than suffering from what I call adoption pockets. I really cannot overstate the importance of bringing that cross-functional team along on the journey. It’s the only way, I believe, of achieving the results you want. Bob, I think you have a saying at Firebrick that positioning is not simply a marketing project or a marketing responsibility, and I know firsthand how true that is. The value of the positioning process Bob Wright: That’s great, Laura. Once you have alignment — making positioning a CEO initiative — and you go through the Firebrick process, what value has the positioning process delivered to GHX? Laura Dunbar: In the few work streams we’ve engaged on, I’ve found that the journey to stronger positioning yields both tangible and intangible benefits. On the intangible side, the effort can be incredibly valuable in creating more cohesive and aligned teams, because they’re coming together and working in a new way with the common purpose of reimagining the value you deliver to customers. That’s not a muscle a lot of organizations have, so this cross-functional activity is a nice forcing function for getting teams to work and align in a new way. I’ve also found it helps restore confidence in a sales team by giving them a new perspective and fresh language to use with customers. And when you couple that with the relevance and urgency that come from strong messaging and positioning, the net result is a fuller pipeline, shorter sales cycles and more revenue. Bob Wright: Laura, what’s the benefit to you as head of marketing of having an outside resource like Firebrick facilitating and managing the positioning process as you bring together all these functions across the company? Laura Dunbar: I like that question, because marketing leaders are good communicators, and we fancy ourselves good positioners. First of all, I have to say Firebrick is the best in the business at what they do, full stop. Positioning B2B tech companies is their specialty; it’s a muscle they flex every single day. What’s unique and valuable about Firebrick is that they have their pulse on the tech market, and the role they’ve played in helping hundreds of great companies across the spectrum take good positioning to great gives them a unique perspective and set of experiences you simply can’t get otherwise. You can’t bring that level of experience and perspective from internal teams. Seeing what works and what doesn’t across hundreds of companies is very, very difficult to replicate internally. Common misconceptions about positioning Bob Wright: Laura, one more question. What are the greatest misconceptions you see about positioning? What do people often get wrong? Laura Dunbar: Number one is that they think it’s a marketing program or a marketing initiative. As we talked about, it’s incredibly important for the success of the initiative to have cross-functional engagement — people leaning in and solving the very difficult challenge of how to become maximally relevant to your buyer. The second misconception is confusing positioning with messaging. Positioning is how you want to be seen in the eyes of your buyer; messaging is the supporting gas in the tank of that engine, if you will. The third is probably that positioning just isn’t that important: if we have the best product, it doesn’t matter how we position it — the best product is going to win, right? Wrong. We know from research, and Firebrick tells us this too, that the best product rarely wins. It’s the product with really solid positioning — positioning that lets you key in on the critical problem your buyer is trying to solve, and then position yourself as uniquely qualified to solve it. That is the hallmark of great positioning. The two-day positioning workshop Bob McDonald: I’m going to finish up by talking about something many of our listeners are aware of: our two-day positioning workshop is a key part of the Firebrick process. You’ve been through it twice this past year, and we’ll be doing it again in the near future with you on another engagement. How would you describe the impact of beginning the second day of the workshop with the ideas from day one in slide-show storyline form? Laura Dunbar: This is probably one of the strongest points of value the Firebrick team brings. I’ve worked with other consultants where you get 20 to 30 people in a room, share ideas and battle it out, and then the consultant takes the output of those one or two days, goes off, and three months later births a great PowerPoint presentation. By then the enthusiasm and momentum have worn off, people struggle to remember what they just did, and it loses its oomph and effectiveness. Because this is a muscle Firebrick flexes every day and it’s all they do, they have a really unique skill: taking all

  6. 08/14/2020

    Differentiate or Die: Category creation?

    Key takeaways Name the problem, not the category: market analysts name categories. Educate the market on why the problem is urgent, and shape the buying criteria in your favor. Lead with the business problem, not the product: buyer-in, not product-out. Solve the budget problem by connecting to multiple funded executive initiatives and showing a pragmatic path to the promised land. 8:16 Creating a category is not for the faint of heart. Over the past 20 years, Firebrick has been at ground-zero of the formation of multiple B2B tech categories: CRM/MA, SaaS, Big Data, CX, DevOps, Edge and more. Positioning veterans Bob Wright and Bob Macdonald share their insights on category creation, including: The #1 challenge of creating a new category How to decide whether to create a category or extend an existing one The top 3 reasons we’ve seen category creators fail Also available in this series, 3 Keys to run successful positioning, Not for the faint of heart, Symptoms you have a positioning problem, Positioning vs. Branding: Clearing up the confusion, B2B Positioning, CEO or CMO agenda?, Is your positioning winning or losing?, Stop the geek speak, Setting the foundation for successful positioning, B2B Positioning with and agency or in-house, When positioning expires, and The best product rarely wins. Read the transcript Bob McDonald: Hi, this is Bob McDonald, and welcome to Differentiate or Die, the Firebrick Consulting podcast series that focuses on the keys to great positioning. On this edition, Firebrick founder Bob Wright and I are going to be talking about the strategy of creating a new category. Bob, we hear this all the time. Bob Wright: All the time I’m getting calls from B2B tech execs: “We want to create a new category.” It’s a common conversation in Silicon Valley. The good news is that category leaders enjoy superior valuations. The bad news is that it’s really, really difficult to create a new category. Bob McDonald: And costly, and it takes time, right? Bob Wright: Absolutely. Probably the number one issue is that there’s no funded initiative for your new category. As a result, tech companies are forced to try to steal budget from other funded initiatives, if you will. Bob McDonald: So it’s going to be costly, it’s going to take time, and there are no funded initiatives that lead to sales right now. Those are a lot of things that make it tougher. At what point does it make sense for a company to say, okay, we understand all of that, but it’s time for us to create a new category? Name the problem, not the category Bob Wright: There’s a very specific, successful strategy for new category creators. Number one, it requires clearly naming the problem. What is the new executive-level business problem that requires a new category of software? Getting clarity on the problem is job one — not naming the category. Bob McDonald: That’s a great point. Bob Wright: I see it all the time: an inordinate amount of concern among tech execs about naming the category. I think that’s a fruitless conversation. It’s a waste of time. Tech companies don’t name categories — market analysts do. Your job as a category creator is to drive traction and revenue in a new category, so you can build a case that Gartner, Forrester or one of the other analysts should pick it up as a new category. So job number one is to name the problem: own a new executive-level problem that builds the case for a new category of solution. Educate the market and shape the buying criteria Bob McDonald: What are the other elements? Bob Wright: Second, you have to educate the market on why this is a strategic, urgent issue. It’s not enough to name the problem: the convergence of these new market dynamics has created the new XYZ problem. Bob McDonald: But it can’t be a “good enough is okay” problem. Bob Wright: That’s correct. It’s an education process. Number one, educating the market that there is a problem: “Oh yes, you’re right — these are symptoms of an issue we call the XYZ problem.” And second, creating a sense of urgency: this problem is only going to get worse — in other words, you will lose your job. The third thing is defining what you have to do to solve the problem: shaping and influencing the buying criteria in the new category. Bob McDonald: And let’s make a distinction here. Buying criteria is not a feature list for a product. It’s not about the product; it’s about the framework within which a product gets created. Bob Wright: That is correct. I think the cardinal sin most tech companies commit is that it’s all about them. I was in product marketing; I spent all my time working on MRDs and with the development team to build the product, so the first thing you want to talk about is the product. That’s absolutely the wrong thing to do. You want to lead with the business problem, build a case for why you need this new set of capabilities, and then introduce your company. Bob McDonald: So in a sense, these are the characteristics that need to be addressed to solve the problem, which eventually gets to the product, rather than starting with the product. Bob Wright: That’s correct. It’s a customer-in, buyer-in approach to positioning, versus a product-out approach. Finding budget for a new category Bob McDonald: Okay, let’s say we’ve done this correctly. We’ve named the problem, articulated it, and made the case for it. We’ve even come up with the characteristics the solution should have, and of course we have the product that meets those characteristics. How do we go about finding the budget — the money to start having customers buy the product? Bob Wright: One of the biggest problems with creating a new category is that there is no budget for that category of software. What we always do with positioning is identify the problem, build a case for why you need a new category, and identify the characteristics required to solve that new problem. Then we attach it to multiple funded initiatives. One of the most powerful positioning techniques is connecting your product and solution to a multi-headed value proposition, where you can say: not only do we solve this new, big, hairy, urgent problem for you, but, Mr. and Ms. Executive, of your top ten funded executive initiatives, if you invest in this solution, we’ll automatically make an impact on six of the ten. Bob McDonald: Providing that roadmap is a very important part of the positioning process when you’re creating a new category. Bob Wright: That’s correct. Part of it is not only connecting to funded initiatives, but also taking companies on a journey — beginning with the state they’re in right now and showing them the promised land. The companies that are separating from the pack and creating new categories don’t answer the question of how it works. The questions they answer in their positioning are: why do you matter? Why is this new category required now? How can you uniquely solve this problem? And how do you make me a hero? Your life is hell — how can you uniquely solve it? Take me to the promised land. Bob McDonald: And show them a pragmatic progression for getting there, rather than a leap that seems too far. Bob Wright: That’s correct. Typically, if you can build a case that adopting the solution leverages the investment the company has already made in its existing IT infrastructure and processes, it smooths the way for a new category. Bob McDonald: You’ve been listening to Bob Wright, founder of Firebrick, talking about the strategy for creating a new category. The post Differentiate or Die: Category creation? appeared first on Firebrick Consulting.

  7. 08/11/2020

    Differentiate or Die: 3 Keys to Run Successful Positioning

    Key takeaways Symptoms of weak positioning: lookalike competitors, long sales cycles, poor win rates and inconsistent answers about what you do. Key one: make it a CEO-driven initiative. Key two: make it a cross-company initiative, which builds buy-in and produces better ideas. Key three: relentless top-down discipline; positioning takes a quarter or two to stick and should last 12 to 18 months. 10:06 After working with more than 400 B2B tech companies, Firebrick Partner Bob Wright has a strong point of view about positioning success. In this Q&A, Bob shares his experience on what it takes, including: The biggest mistake tech companies make: why do so many positioning initiatives fail? Why all successful positioning efforts begin with the CEO When is the right time? Are there telltale symptoms when your positioning needs to change? Also available in this series, Not for the faint of heart, Symptoms you have a positioning problem, Positioning vs. Branding: Clearing up the confusion, B2B Positioning, CEO or CMO agenda?, Is your positioning winning or losing?, Stop the geek speak, Setting the foundation for successful positioning, B2B Positioning with and agency or in-house, When positioning expires, and The best product rarely wins. Read the transcript Bob McDonald: Hi, this is Bob McDonald, and welcome to Differentiate or Die, the Firebrick Consulting podcast series that focuses on the keys to great positioning. On this edition, Firebrick founder Bob Wright and I are going to be talking about the three keys to running a successful positioning initiative. Bob, you’ve worked on hundreds of positioning initiatives in your career. Before we get into the three keys, how do you know it’s time for a new positioning initiative? Signs it’s time for new positioning Bob Wright: Thank you, Robert. There are some specific symptoms I always see that point to a company needing to evolve or strengthen its positioning. The first is that the competition has copied your positioning and there’s no differentiation. Take the logo off your website, put it on your competitor’s, and everybody looks the same. You run into common symptoms: pricing wars, who’s got the longer feature list, competing on features and functions. Other symptoms I see are long sales cycles with no urgency — you get to the end of a sales cycle and there’s no decision. Another common symptom is a horrible win-loss ratio, or calling too low in the organization. The third symptom is that you talk to three people in your company and get three different answers. There’s no consistency. Sales reps are using their own decks, which points either to the current positioning not working, or to a lack of discipline and a need for a stronger, differentiated position. Bob McDonald: We’ve definitely seen that at some customers — and it’s not three or six different things. It’s literally that everybody has a different message, right, Bob? Key one: a CEO-driven initiative Bob Wright: The first key to a successful positioning initiative: it must be a CEO-driven initiative. It must have top-down CEO executive sponsorship. The head of marketing may actually run the process, but it has to be sponsored by the CEO. Bob McDonald: So even if a CMO is driving it, it’s important for them to engage the CEO’s endorsement and participation in the process. Bob Wright: The companies that are separating from the pack — driving significant revenue growth and large valuations — are the companies with a very strong viewpoint. The CEO uses positioning as the North Star for the company, and recognizes positioning as a strategic lever for differentiation and for significant valuation and revenue growth. Key two: a cross-company initiative Bob McDonald: This ties into something we feel very strongly about at Firebrick: good positioning is cross-functional, correct? Bob Wright: That’s correct, Bob, and that’s the second key. Not only do you need CEO buy-in or sponsorship; it must be a cross-company initiative. The old way I used to do positioning was to go off into a corner room with the CEO or CMO and come running out with the new positioning. We’ve found it’s more effective as a cross-company initiative. We do this through a positioning workshop where all parts of the company participate: sales, engineering, product management, product marketing, customer support, as well as the CEO and COO. The value of a cross-company initiative is, first, that you need buy-in and alignment on the positioning. Second, you actually come up with better ideas. If you ask, for example, what’s the best thing about the company or product, you may get very different answers from sales versus engineering versus support. The key is to get all those ideas on the table, sort through them, and come up with better positioning by facilitating the process as a cross-company initiative. Bob McDonald: It’s also fascinating to participate in and observe: when you have all those functions together in a Firebrick workshop, you can iterate an idea and test it across the company very quickly, in the context of the conversation. Bob Wright: It’s totally critical. Positioning really is a cross-company initiative. Again, that’s why it’s so important that it’s a top-down CEO initiative, because if you do positioning right, it impacts all parts of the company. It can certainly fuel your marketing investments, but it can also help product set priorities, make a huge impact on valuation and category leadership, and be a rallying cry for employees. Bob McDonald: That’s also always fun to observe: when the light bulb goes off for the leaders of these other functions — “Oh my gosh, I’m going to get a framework from this process that gives me clarity on what I’m supposed to be doing in my functional area.” Bob Wright: And it gives everybody a reason. If you do positioning right, you fundamentally up-level the conversation about the company, and that gets everybody excited: “Oh my God, we could be this. We’ve been talking about ourselves like that, but there’s a much bigger conversation, a much larger purpose for this company — and for my work and my contribution to that larger vision.” Key three: relentless top-down discipline Bob McDonald: What’s the third and final key? Bob Wright: The final one is discipline — relentless, top-down discipline. It’s not enough to have a really strong, differentiated positioning strategy and storyline; operationalizing it takes discipline. That requires a relentless commitment from the top down — from sales, from the CEO, from the executive team — that we’re going to stick with this positioning for at least the next six months. It’s very important that everybody echoes the same consistent message. You can certainly adjust the positioning, but in our experience it usually takes at least a quarter or two for positioning to stick. Bob McDonald: And that six months is just the initial rollout. With these positioning efforts, you’re usually looking at an 18- to 24-month horizon before a major reset. Bob Wright: That’s correct. If you do positioning really right, it should last 12 to 18 months. Inevitably, the competition will react, and the buyers will change. A lot of our clients are private companies targeting early adopters. Once those early adopters have been sold, you move to a different type of market with more pragmatic buyers, which requires a shift in positioning. But generally, positioning should last 12 to 18 months, and then it needs to be evolved and adapted to meet changing product capabilities and changes in the market landscape. Bob McDonald: Repetition is a very important thing — this commitment to sticking with it. Bob Wright: A good litmus test we always give executives is: once you’re finally sick of telling the positioning story, that’s just when the market and the company are beginning to pick it up. So relentless, consistent communication of a compelling positioning story is vital. Bob McDonald: The other thing we should highlight for listeners is that because the Firebrick workshop is such a collaborative environment across all these functions, it also enables the company to roll out the new positioning in a completely different way than in the past. Bob Wright: It certainly accelerates it, because marketing no longer has to go through endless review cycles to get people bought into copy or positioning ideas and concepts. Because the workshop is a cross-company initiative, when we come out of it there’s agreement across the entire executive team on the positioning strategy, the positioning elements and the positioning storyline. Once the story, strategy and messaging are ready to be operationalized, there’s total buy-in across the company, particularly among the executives, and it’s a much faster way to operationalize. Bob McDonald: You’ve been listening to the three keys to running a successful positioning initiative. Thank you very much for joining us for this edition of Differentiate or Die. We invite you to enjoy our whole series of podcasts on the Firebrick website, firebk.com. For Bob Wright, this is Bob McDonald saying goodbye. The post Differentiate or Die: 3 Keys to Run Successful Positioning appeared first on Firebrick Consulting.

  8. 07/21/2020

    Heidi Melin: The Power of Positioning, Why hire an outside agency

    Key takeaways Positioning is the foundation for how a company tells its story, internally and externally. Signs it’s time: messaging isn’t resonating, the competitive landscape has shifted, or you’re moving into a new category. Positioning must be led by the executive team with CEO sponsorship, not run as a marketing exercise. Get it right and your product roadmap aligns with your positioning. 7:26 Think positioning is just a marketing exercise? Think again. Heidi Melin, Chief Marketing Officer at Workfront – and one of the tech industry’s best CMOs – has deep experience and a stellar track record positioning companies for success. In this Q&A, Heidi shares her perspective on: The biggest mistake people make when it comes to positioning How to get CEO buy-in for a strategic positioning initiative The advantages of using a third party positioning partner, and what to look for when choosing one Read the transcript Bob McDonald: Hi, this is Bob McDonald, and welcome to Differentiate or Die, the Firebrick Consulting podcast series that focuses on the keys to great positioning. On this edition, Firebrick founder Bob Wright and I are going to be talking about positioning with Heidi Melin, Chief Marketing Officer at Workfront, where she is responsible for telling the Workfront story and creating and executing an integrated marketing strategy that drives increased awareness and deeper customer relationships. With over 20 years of senior marketing leadership in the tech industry, Heidi has driven measurable growth for some of the most respected enterprise SaaS and technology companies, including Eloqua, Polycom, Taleo and Hyperion, and she was group vice president of marketing at PeopleSoft. Heidi is a recognized thought leader in B2B marketing and a frequent speaker at industry events around the globe. Bob, please start things off. Why positioning matters Bob Wright: Heidi, thank you so much for sitting down with us today. My first question: from your perspective as a seasoned CMO, and one of the industry’s best, what role does positioning play in company success? Why is positioning so important? Heidi Melin: First of all, thank you for the lovely introduction. I believe positioning is really important because it becomes the core foundation for how you tell the company’s story, and for all of the messaging the company puts out, both externally and internally. To me, it’s truly the foundation for aligning a company’s overall messaging, and for being clear about where the company sits in a specific category or area. That’s really important to get right out of the gate. Bob Wright: What are your thoughts about the timing of a positioning effort? How do you know the time is right to invest the time and effort in a new positioning? Heidi Melin: There are certainly signs along the way: that your messaging or current market position is not resonating. That could come from changes in the competitive landscape, for example, or because you’re shifting the business into a new or emerging category. So there are different signs. The competitive landscape is one; the business focus going forward is another. If there’s a change there, it’s really important to reevaluate your positioning and the underlying messaging for the company. Getting the CEO and executive team on board Bob Wright: Heidi, once you’ve determined it’s the right time to embark on a strategic positioning initiative, how do you get your company’s CEO bought in? Heidi Melin: It’s a great question. Having been a career CMO for a long time, one thing I insist on is that a positioning exercise can’t just be a marketing exercise. It needs to be led by the executive team, with sponsorship from the CEO as well as the other members of the executive team. It’s really not set up for success if it’s just seen as a marketing activity that drives the marketing message. It needs to be the message of the company, and it needs to be clear that ownership of the positioning isn’t just marketing’s. Why use an outside firm Bob Wright: Some leaders of companies — some CEOs — think a positioning process could or should be handled completely in-house. What’s your opinion about using an outside resource like Firebrick to facilitate and manage the process instead? Heidi Melin: I think every business can benefit from third-party observations and input, and a positioning exercise like this is no different. We benefited from the experience the Firebrick team brought to the table: a tremendous depth of experience in software as a service and enterprise software specifically. Having that third-party external expertise was really important, because otherwise you’re just talking to yourself. Having an external firm engaged in the process really keeps us honest and ensures we’re not just talking inside the walls of the company, but being realistic and getting relevant feedback along the way. Common misconceptions about positioning Bob Wright: That’s really helpful. What are the greatest misconceptions you see or hear about positioning? What do people often get wrong? Heidi Melin: Certainly the one I mentioned earlier: “Oh, it’s just a marketing exercise; the marketing team is taking care of that.” I’d say that’s the top misconception. I also believe that if you get positioning right, your future product roadmap will align with that positioning. It’s not just about a message. It’s not about the next advertising campaign or demand generation program. It’s really about taking a position in the market that’s supported from a product perspective, a service delivery perspective and a messaging perspective. Bob Wright: Heidi, what makes Firebrick different and distinctive compared to other firms you’ve worked with in facilitating and managing positioning efforts? Heidi Melin: The depth of experience in the enterprise software space was really critical for us — the understanding of enterprise software, and SaaS platforms specifically. Bob, you have assembled an amazing team of experts with years of highly valuable experience, and that was certainly valuable in the projects I’ve worked on. Bob McDonald: Heidi, thank you very much for joining Bob Wright and me for this edition of Differentiate or Die. We invite you to listen to our whole series of podcasts, which can be found on the Firebrick Consulting website, firebk.com. This is Bob McDonald signing off for Firebrick. The post Heidi Melin: The Power of Positioning, Why hire an outside agency appeared first on Firebrick Consulting.

  9. 07/07/2020

    David Hughes: The Power of Positioning, a CEO Perspective

    Key takeaways Positioning lets you be the thought leader who frames the problem and shows a unique solution. Engineers think in feature lists; companies need one consistent, simple message anyone in the organization can repeat. An outside facilitator brings all functions together and avoids the curse of knowledge. Revisit positioning every year or two, or when competition, customer response or your target buyer changes. [ 10:06 What does it take to create a new market category? We asked David Hughes, founder and CEO of SD-WAN pioneer Silver Peak. David has taken Silver Peak from concept to market leadership and 75% YOY growth. In this Q&A, David shares his experience on: The role of positioning in fueling category leadership Why positioning is an important CEO/Founder strategy Knowing when the time is right to undertake a positioning initiative Read the transcript Bob McDonald: Hi, this is Bob McDonald, and welcome to Differentiate or Die, the Firebrick Consulting podcast series that focuses on the keys to great positioning. On this edition, Firebrick founder Bob Wright and I are going to be talking about positioning with David Hughes, founder, CEO and chairman of the board of Silver Peak Systems. David founded Silver Peak in 2004 after a year as an entrepreneur in residence at Benchmark Capital. Prior to Silver Peak, David held a variety of engineering, product management and operational executive roles at Cisco Systems and BlueLeaf Networks. Throughout his career, David has been awarded more than 50 patents in areas including data acceleration, routing and packet switching, and control and scheduling algorithms. Bob, where should we start? Positioning in a new category Bob Wright: David, from your perspective as a CEO and founder, what role does positioning play in company success, particularly in a new market category like SD-WAN? David Hughes: I think it’s very important. First of all, to be the thought leader who is framing the problem — demonstrating to customers that you understand the challenges they’re facing and that you have a unique answer, a unique solution, to those problems — and being able to communicate that effectively and succinctly. Bob Wright: David, how have your thoughts about positioning changed over the course of your career? David Hughes: That’s an interesting question. I’m an engineer at heart; I was trained as an engineer, not as a marketer. Earlier in my career I probably had less appreciation for how important it is to have very crisp and concise messaging, and to tap into the things that are most important to the customer or prospect. As an engineer, you tend to think about lists and lists of features and how exciting they all are individually. At some level, people down in the organization are interested in those things, but I believe it’s very important for a company to present a consistent, simple message that can be picked up by anyone in the organization at any level. Bob Wright: David, what value or benefits have you seen from strong positioning? David Hughes: You always have to be careful attributing cause and effect, but we’ve been very successful since launching our EdgeConnect product five years ago. We’ve gone from zero to growing 75% year over year, and we’ve now been in the Leaders quadrant of Gartner’s WAN Edge Infrastructure Magic Quadrant twice in a row. A lot goes into that analysis, and there are many ways of measuring success in the market, but I think it’s one of the gold standards. Certainly a lot of what we do in the product, and how we help our customers deploy and succeed, goes into that. But positioning is fundamental to establishing ourselves as the thought leader and the category leader. Why use an outside facilitator Bob Wright: I’m sure many leaders of tech companies like yourself think a positioning process could or should be handled completely in-house. What’s your opinion about using an outside resource like Firebrick to facilitate and manage the process instead? David Hughes: I like the idea of having a third party come in to facilitate. First of all, it brings together all the parties. When you’re developing messaging, it’s very important that it’s messaging the sales team believes they can use, that it matches the initiatives marketing has, and that the product organization agrees it’s relevant and supportable. Bringing all those parties together is important, and an external facilitator helps. It also challenges the group to think in new ways. There’s what they call the curse of knowledge: when the process is driven by someone internal — regardless of whether they’re from sales or marketing or the CEO’s office — they have that curse of knowledge. Someone coming in from the outside has the advantage of not bringing those preconceptions and that baggage. That can lead to better messaging, because ultimately the person you’re talking to is hearing the message for the first time. They don’t have all the background you have. So having a facilitator who’s in the same position as the target audience is a really good thing. The CEO’s role in positioning Bob Wright: That’s very helpful, David. What’s the right way for a CEO to contribute to and participate in a positioning process? David Hughes: That obviously depends on the situation, but I think the CEO is a very important participant in the group, so it should definitely involve the CEO. With my style, I prefer to think of everyone in the room as having an equal contribution and equal value in the discussion. One unique perspective the CEO brings is that you’re talking to a variety of audiences: investors, prospects, partners — both channel partners and technology partners. You get to represent the company’s positioning and messaging across a broad range of audiences, whereas other functions, like sales, generally look at it from a prospect or customer perspective, or perhaps a channel partner perspective. So the CEO brings a sense of what’s going to play across a broader range of audiences. You want your positioning and messaging to be consistent across those audiences, so the CEO acts as an overall filter that contributes to the discussion among all the functions represented in the process. Working with Firebrick Bob Wright: What surprised you most about working with Firebrick on positioning? David Hughes: The biggest surprise for me is how fast they can work. You’d think that, given the limited amount of time, you wouldn’t be able to get a fantastic result. I’ve worked with Firebrick twice, and in both cases, with only a few hours of engagement, we made massive progress. Then, with a few more hours of refining those ideas, we came up with positioning I was extremely pleased with. So the biggest surprise was how quickly and efficiently they were able to develop messaging and positioning for us. Bob McDonald: A key accelerator of the Firebrick process is the two-day workshop, which plays an important role in the very accelerated overall process. How would you describe the impact of that two-day positioning workshop? David Hughes: I think that’s really key: you’ve got a day of brainstorming and a day of refining, with their team working seemingly around the clock — I’m not sure quite how round-the-clock it is — to synthesize all that information. I’ve seen it work twice, so it’s something I believe in. When to evolve your positioning Bob Wright: That’s great, David. One final question: thinking back, how did you as a CEO know when you needed to evolve or change your positioning? David Hughes: At one level, it’s something you need to do regularly, because fundamentally the market is changing, your products are evolving and your customers are evolving. So it’s healthy to revisit your positioning and messaging every year or two, independent of any external indicators. But to answer your question more directly: as CEO, you realize you need to extend or adapt your message because the competitive environment has changed, or customers are responding differently than they used to, or you’re trying to move the company up in terms of the level of the organization you’re engaging with. When you realize the messaging you have needs to be twisted and adapted, that’s perhaps the time to engage and look at how it can be done more broadly, with everybody’s feedback. Bob McDonald: David, thank you very much for joining us for this edition of Differentiate or Die. We invite our listeners to enjoy our whole series of podcasts on the Firebrick website, firebk.com. For Bob Wright, this is Bob McDonald signing off. The post David Hughes: The Power of Positioning, a CEO Perspective appeared first on Firebrick Consulting.

  10. 07/01/2020

    Jason Hoffman: The Power of Positioning, a CEO Perspective

    Key takeaways Positioning is the inspirational story that motivates people inside and outside the company. Startups need it through their adolescent phase; large organizations need careful, inclusive framing because every word propagates. Even top performers need outside coaching, which is why an external facilitator helps. Simplicity inspires; complexity never does. 18:16 Jason Hoffman is one of B2B tech industry’s leading futurists and pioneers of today’s mobile edge and distributed cloud infrastructure technologies. Over his career as founder of Joyent, CTO for Digital Services at Ericsson and current CEO of MobileEdgX, he knows first-hand the power of positioning to support technology innovation. In this Q&A, learn: How can strong positioning motivate customers to act, now? Why it’s important to “use external help and a process” to drive positioning? How does good positioning achieve alignment and create a rallying cry? Read the transcript Bob McDonald: Hi, this is Bob McDonald, and welcome to Differentiate or Die, the Firebrick Consulting podcast series that focuses on the keys to great positioning. On this edition, Firebrick founder Bob Wright and I are going to be talking about positioning with Jason Hoffman, president and CEO of MobiledgeX, where he is leveraging decades of experience in telecommunications and cloud infrastructure to design the future of mobile edge services, applications and devices. Prior to MobiledgeX, Jason was CTO for digital services at Ericsson, where he led a 30,000-person unit responsible for the company’s first serverless and first container-as-a-service offerings. Bob, where should we start? Positioning as an inspirational story Bob Wright: Jason, thank you so much for joining us this afternoon. From your perspective running leading-edge technology companies, what role does positioning play in company success? Jason Hoffman: Positioning is the entire story you’re telling — not just to your own team, but to the external market as well. Any story, any series of narratives, fundamentally has to motivate and inspire people. As Andy Grove would say, there are only two options for getting people to do things: train them and motivate them. When you’re taking a group of people to do something that either hasn’t been done before or hasn’t been done in recent memory, the mission they’re on, and who they’re on it with, is in many ways even more important to them than money from a motivation perspective. To me, positioning is that entire inspirational, motivational story you’re telling, both within your own company and to other people. The clearer it is, and the more it’s in a framework where people step back and say, “Oh, that’s unique” — unique in the insight it gives, the foresight it has, meaning its ability to look into the future, and the cross-sight it has, its ability to look across and connect different things — the better. You want people to have that kind of experience when they interact with you, because that’s the emotional point where people take a minute and notice you. Bob Wright: How have your thoughts about the importance of positioning changed over the course of your career? Jason Hoffman: What’s changed is my appreciation of its almost overarching nature. My original training was as a scientist. There you’re always looking at the grand theory you’re working within or challenging, and you go down into increasing detail until you’re in an area where, hopefully, you’re the world expert. But you’re always operating within a structure, a logic, a framework — a grand story. Even as a young scientist, I realized there was a big difference in the ability to raise grant money depending on how you positioned what you were doing. You can be great at the work and also be a, quote-unquote, great salesman: able to understand where people are, take them on an inspirational journey, frame everything for them very clearly, and then start filling in the details and knocking things out. That’s always been there in what I’ve done professionally. What’s happened over the years is that I’ve realized how important it is from the standpoint of human behavior, attitudes and emotion. The proper positioning and framing of what you’re doing is required to get large groups of people to execute in the same way and to feel great while doing it. So it’s not so much the technical aspect of positioning, but organizational behavior and motivation — people feeling emotionally connected to what they’re doing. Figuring that in has been the additional subtlety, the aha, for me. When we worked together at Ericsson, it was very matrixed across the organization, and people were coming from entirely different places. The purpose of the positioning was to get everybody on the same page, moving in the same direction — an organizing force to make sure people were doing the right thing and focused. Positioning at a startup and inside a giant Bob Wright: That’s interesting, Jason, because you’ve worked with us multiple times, at both Ericsson and Joyent, and those companies are at two ends of the spectrum. Joyent was the classic Silicon Valley startup. At Ericsson, you had a huge business unit that was really a startup within a multibillion-dollar company — but still a 30,000-person unit with a multi-product initiative. How did positioning help in those two very different situations? Jason Hoffman: At a company like Joyent, you go from a few people who know each other and work in the same room, to 20, 50, 100 people, and into the hundreds. You reach the point where not everybody knows each other, and not everybody is interviewed by the founder anymore, because it’s just too much. You have this weird adolescent phase where you really have to frame things for people: what we do, how we behave, what’s not okay, and, in a forward-motion sense, how we uniquely present ourselves to the market and get people to feel great about what we’re doing. In that adolescent phase, proper positioning of everything becomes critical to growing into adulthood. At the opposite end of the spectrum, think about a company with 120,000 full-time employees, 80,000 to 100,000 outside contractors, and on the order of $18 to $20 billion a year in spend with suppliers. Now you have essentially a quarter of a million people reading what you’re doing and expecting a set of activities from you. You have to be really careful about what you say. The advice I give incoming CEOs and people running a large unit in a company like that is to keep your mouth shut a little bit, because everything you say, you can’t un-say. It propagates its way through the system, and it can take one, two or three years — the whole time you’re running it — to undo a little comment you made. Something like, “We’re not in that business; we’re in this business.” Everybody loves to repeat something like that, and then you find out, “Well, I didn’t really mean it that way, guys.” So in a large unit, it’s particularly important to take the time to listen to everybody, give everybody a turn to speak up, truly understand each person’s perspective, and then have not just a positioning but an implementation where you’ve taken all of that into account — so that as you take people through it, they say, “I recognize my part of that,” or “I feel this.” The end result has to be super clear, almost on the level of propaganda, about what everybody is going to go and do. It becomes even more important because you can’t take it back once you’ve said it. You have to be very careful about what you say, when and how you say it, and it has to be comprehensive and complete. That’s critical to not creating a bunch of waste. Why bring in outside help Bob McDonald: When we worked with you at Ericsson, you actually broke the problem into five different positioning engagements over a two-year period. And your Joyent experience led to us talking about working together again when you went to Ericsson. As you’ve been describing, Ericsson is a massive company with massive resources — Jason Hoffman: Massive, massive challenges. Bob McDonald: Massive challenges. So what’s your thought about bringing in an outside resource like Firebrick to facilitate and manage a positioning process, instead of doing it completely in-house with all those people? Jason Hoffman: When I look around, every Olympic athlete has a coach, and at the very least a team. It’s very normal to say, “I want to compete at the highest level of this sport.” In any sport you’re using your brain, your nervous system, your muscles and bones, all highly coordinated. When you set out to compete at the highest physical level, you have a coach helping with the technicalities — how you move a bar, throw an opponent or put a shot — and people helping with your conditioning, strength, mobility, recovery and diet, maybe one or two sports medicine physicians. It’s normal to have a 12-person team supporting someone operating at that level. People don’t do it themselves. Whether you want to compete in an Olympic sport, or your relationship isn’t going so great, or you want to go do something big — seek external help. That’s what external help is for, and it’s very normal to have high-quality coaching. You have to have it. When I came into a place like Ericsson, I was the only non-Ericsson-lifer American at the level I was at. Even though I was, quote-unquote, external, you pretty quickly become not that. People will say, “Maybe his perspective isn’t objective; he’s really trying to hit his KPIs.” You immediately get put in those spots. So it’s always best to get external help, because anybody who operates or functions at a high level gets external help, and you can take that example across a

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Bite-sized advice and practical tips from B2B positioning experts Bob Wright and Robert Macdonald of Firebrick. The world does not need more boring “me too” geek-speak. Instead learn how your company can accelerate revenue growth through game-changing positioning strategies.