by Doug Gray | Nov 5, 2013 | book review, Coaching, Sales, Success
Most strategic partnerships fail. The often publicly stated reason is that there was some “inequity in resources.” That is rubbish. The private reason is that the potential partners did not have clear role definitions.
Great coaches should be able to help you develop successful strategic partnerships. Sadly, too few coaches have enough expertise to explain the following.
I invite you to adapt and forward this post. This formula works.
Let’s imagine that two consultants agree to partner on a consulting project. They each have something mutually beneficial to contribute. And the net result will exceed whatever they could provide individually. In short, they need one another. They need a formula to define clear role definitions.
Typically there are 3 phases in any consulting project: sales, technology/unique solution, and delivery. (Adapt this formula as you see fit for any project or partnership, but try to keep it simple.) Assume that each phase is worth 1/3 of the total value to the consulting project. If the project is worth $90,000 then the sale is worth 1/3 or $30,000, the technology is worth 1/3 or $30,000, and the delivery is worth 1/3 or $30,000.
Example #1: Assume that Matt brings expertise in sales and delivery. Assume that Doug brings expertise in technology and delivery.
So they agree to the following formula:
Matt provides 80% the sale of $30,000 for a total of $24,000. Matt does not provide any direct value for the technology. Matt provides 50% of $30,000 or $15,000 for the delivery. Matt’s total compensation for the consulting project will be $39,000.
Doug provides 20% of the sale of $30,000 for a total of $6,000. Doug provides 100% of the technology for a total of $30,000. Doug provides 50% of $30,000 or $15,000 for the delivery. Doug’s total compensation for the consulting project will be $51,000.
This formula assumes that each consultant will mutually benefit one another and their client.
Your partnership agreements should also assume that they are beneficial to all parties.
Last week I received a proposal to partner in a new venture. I used this formula in the following manner:
Example #2: Tom brings expertise in sales. Sue brings expertise in delivery. Doug brings expertise in technology.
After due diligence and some realistic fact finding, I proposed the following formula for $300,000 gross revenue in year 1.
Tom provides 80% of the sale of $100,000 for a total of $80,000. Tom provides 10% of the technology value of $100,000 for a total of $10,000. Tom does not provide any direct value for the delivery. Tom’s total compensation for year 1 of this project will be $90,000.
Doug provides 10% of the sale of $100,000 for a total of $10,000. Doug provides 90% of the technology value of $100,000 for a total of $90,000. Doug provides 20% of $100,000 or $20,000 for the delivery. Doug’s total compensation for year 1 of this project will be $120,000.
Sue provides 10% of the sale of $100,000 for a total of $10,000. Sue does not provide any direct value to the technology. Sue provides 80% of $100,000 or $80,000 for the delivery. Sue’s total compensation for year 1 of this project will be $90,000.
Call me if you have any questions about this formula. Or read Alan Weiss’ The Million-Dollar Consulting. He has developed this formula and deserves any credit for its success.
Yes, my clients have used this formula. Yes, I have used this formula.
But most people leap into a business “partnership” without using such a formula. Hence, most businesses fail.
Do not become another statistical failure. Hire a great coach. Today.
by Doug Gray | Nov 3, 2013 | change, Coaching, Sales, strengths
Recently I read an article that inspired me to share these 2 rules:
1. Never give power away to an event that has not yet occurred. Humans are motivated by fear and greed, as well as faith and service. When I am slow to call a sales prospect, I am giving away my power. When I am slow to develop a new project, I am giving away my power. Fear leads to fright, freeze, or flight. (Those 3 ancient responses that humans share with all mammals…) Instead, I can choose to be fearless. To live in faith toward serving others. Why would I ever give away my power?
2. Get great. Many people talk about great figures in history, as if familiarity is a reflection of greatness. Some were my professors and colleagues. That is B.S. I have met hundreds of leadership coaches and speakers. Few of them are great people. I have had hundreds of teachers from all walks of life. Few of them are great people. The only purpose of human life is to get great. Nothing else matters. I can get great at serving others. I can get great at loving my family. I can get great at purposeful work. I can get great in countless ways… Action leads to learning.
So, some coaching questions are:
1. “How are you choosing to be fearless?”
2. ” What are you doing to get great?”
Then share your answers with an accountability partner. If you are stuck, hire a great coach. Today.
Last week I met a great writer. He opened with, “Frankly, I am the best copy editor I have ever met.” He sells fiction online. And writes corporate copy. And has never done anything else… He is great. Call me if you need a great writer named Patrick.
What do you think others are saying about you and your work?
by Doug Gray | Oct 31, 2013 | Business, change, digital
Let’s start with some facts. Then trends. Then implementable solutions.
Facts:
- Apple introduced the iPad in 2010 as a revolutionary device
- By 2016 an estimated 650 million tablets will have been sold globally. Pretty revolutionary, huh?
- In a 2012 poll by CDW, tablet users averaged 2.1 hours per day and gained 1.1 hours of productivity
- In that poll, 84% of employees said that the tablet made them better multi-taskers
- There are over 1 million apps available for download
- There are more mobile devices in the world than there are toilets. (What does that fact say about our needs for hygiene and connection?)
Trends:
- Most digital natives (born after 1980) sleep with their phones
- There are more tablets and mobile devices than desktop devices, used globally
- Most information workers view 2-3 screens concurrently. An example in marketing: the television screen, the laptop screen, and the mobile third device. An example in finance: two laptop screens and the mobile third device.
- App usage is growing faster than web portal use, as workers apply technology to customers and clients in new ways
- Employers tolerate a BYOD approach (bring your own device) despite concerns about security, branding, and productivity
Solutions for your business include:
- Blended use of technology/virtual learning and direct/synchronous training. Virtual training is less expensive, but not adopted. Blended use of technology and direct training can increase engagement, productivity, and retention. See one example here. I use blended learning solutions for most action learning programs. Imagine a team of 4-7 people in different locations who need to collaborate. They typically do not even know one another. Action Learning programs require that they assess the problem/case study/ client need, then share resources, then ask questions to develop solutions, then apply those solutions to save money or make money. Recently, I have developed mobile apps that supplement business development workshops between siloed divisions. Monthly workshops, combined with direct and virtual meetings, and action learning apps force people to work together.
- Smart adoption of technology will increase mobility and security. Examples include Dropbox, a cloud storage service that syncs data can be accessed from any devices. You no longer need a secure VPN (virtual private network) access or dial in to a server. Your security is guaranteed. Consequently, when I travel to a client’s location I use Dropbox to access all of my digital content and provide tremendous value to any client, in their office, in the moment. Client delight is a reality, not a goal.
- Collaboration tools will enable multiple workers and stakeholders to develop solutions. One example is GoToMeeting, a web meeting tool with audio and video conferencing. You can access from any device, using a code. Then you can see who is talking, share screens for collaborative work, record meetings for future reference. I use this tool when reviewing documents or developing presentation materials with clients in multiple locations. And I use GoToMeeting for team coaching and action learning programs.
Most importantly, how are you using tablets and apps to increase your business?
If you need ideas, contact us now. If you have a great example, contact us now. If you want to work together, contact us now.
by Doug Gray | Oct 30, 2013 | change, Coaching, Employment, money, Success
Since 1997 I have been a consultant. Rates are described here.
There are two types of consultants: 1. those who make money and 2. those who do not make money. To explain in detail, consider the story (perhaps familiar) of Rich Dad and Poor Dad. Then add new titles such as Agile Consultant and Rigid Counselor.
Here is a quick story: Imagine that you have two mentors. One is Rich in material ways, and he regularly provides value to others. He gives implementable solutions, real advice, and teaches others the process of success. He is regarded as an expert in a community of his peers, and he charges a reasonable fee for providing solutions that endure. He explores transformative change using questions. He is agile. His clients and friends regularly call him after hours to exchange ideas. The other dad is Poor in material ways, and may not know why. He charges by the hour and has a transactional view of others. He tries to sell solutions or products. He shifts from project to prospect to possibility with the winds. He rarely trusts others, has few operating agreements or partnerships, and may have material debt. He is rigid in his thinking. He tells others what to do. He may think he is the smartest person in the discussion.
Where are you? Agile Consultant/Rich: 1 2 3 4 5 6 7 8 9 10 Rigid Counselor/Poor:
Tips include:
- Provide process and implementable solutions
- Provide tremendous value and charge accordingly
- Share best-in-class solutions that are practical and actionable
- Be a great performer
- Learn from the best experts
I have had two coaches for the past 7 years. One was born in another country and we have never met. They both help me be an agile consultant.
What do you need to make money in consulting?
by Doug Gray | Oct 29, 2013 | change, Coaching, Leadership, Personal Development, strengths, Success, talent assessment
I have recently developed this 3-part formula for success. Let me know what you think.
Draw an equilateral triangle. Label each corner “Action”, “Learning”, and “Service.” Place a dot in the center.
1. Actions define successful businesses. Founders and anyone cited in a history book have one trait in common: an obsessive focus on action. Score yourself 1 (low) to 10 (high) on the question “How action oriented am I?” If you are unsure, focus on actual results, rather than intentions.
2. Learning leads to failure, and failures lead to success. I track “Learnings” in digital folders and update them regularly. I regularly attend conferences and take on projects so that I can fail, faster. Yesterday I had lunch with a consultant who repeated the same points I heard him make 12 months ago. He is not learning much. I cut the lunch short and moved on. Score yourself 1 (low) to 10 (high) on the question, “How much am I learning?” Learning is a messy process. If you are not tracking your learning, you are probably repeating ineffective old patterns.
3. Service is a measure of your relationship with others. Humans are social animals. We yearn for relationships. We exist to serve others- clients, loved ones, communities, goals… The most impact-ful businesses track user engagement. The best nonprofits, like Rotary, reward service above self. Score yourself 1 (low) to 10 (high) on the question, “How well am I serving others?” If you are unsure, ask your clients or loved ones. Or solicit more clients.
Now place your scores on the triangle you created. Use the dot to represent 1 (low) and let the corners represent 10 (high.)
What do you notice when you study your self-assessment triangle?
Where do you need to invest energy and resources?
Who can help you develop ?
You may know that action learning is a methodology, using cross functional teams of 4-8 people to solve a key problem. They are tasked with breakthrough, and with a short deadline such as 6 months. They require executive sponsorship and some resources. But the action learning process is a small investment with proven ROI.
In Europe and Australia, the Action Learning methodology is thriving. In the U.S. there is less adoption. One reason for that lagging adoption may be the fact that the business environment does not encourage accountability between cross functional teams. Yet.
We provide individual and team accountability.
How are you planning to share this Action + Learning + Service = Success Formula with others?
Please call me with your stories!
Here is a sample image to get you started: ALServiceFormula
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