OPEN SOURCE MANAGEMENT HOW TO BEAT THE DOWNTURN! www.opensourcemanagement.it 2 Slides at: www.paoloruggeri.net 3 BULGARIA GNP 100 99 +0,8% +1,8% 98 97 +0,5% +0,4% -5,5% 96 95 94 93 ???? 92 91 90 2008 2009 2010 2011 2012 2013 2014 “The pike dies of experience and habits…” OPEN SOURCE MANAGEMENT 6 Strategies www.opensourcemanagement.it 1) HANDLE THE INTERNAL REASONS 8 WHY DOES YOUR COMPANY EXISTS? • How do you add value to the customer? • When a company loses ground it has always stopped to add value Owner 100 75 80 61 60 60 40 46 54 30 20 7 7 0 -20 -20 -40 -30 -60 -80 -100 Existing situation of the company 10 2) HARD WORK HAS CHANGED! Comfort Zone = Consuming value Uncomfortable = Creating value OUT OF COMFORT ZONE Take up a challenge Make a scary (or hard) decision 3) EMBRACE MARKETING MONEY DO NOT DISAPPEAR, BUT THEY DO CHANGE DIRECTION… • Melba Toast S. Europe 2012 + 6% • Wood Stoves 2013 + 25% • What is the «Melba Toast» of your industry? A) ASK IT TO THE CUSTOMERS How do you rate the following advantages you could get from a provider of complete production units? • A) The provider is reliable and has a good reputation • B) The provider does follow up on the customer for all the installed unit’s life • C) The provider is faster than competition in building and installing the unit. • D) The provider carefully studies customer’s needs so as to provide solutions that will 19 make the customer more profitable • E) The provider can rapidly provide an after sales service locally • F) The provider offers personalized and tailor made solutions. • G) The provider carries such a wide selection of solutions that he can satisfy any customer need. Q6.1 WHAT IS THE MOST IMPORTANT ADVANTAGE FOR YOU? The provider can rapidly provide an after sales service locally 8% 35% 1% The provider is reliable and has a good reputation 17% Provider studies customer needs to make him more profitable 17% 22% Provider offers personalized solutions The provider does follow up on the customer Doesn't answer B) “HOW MANY, AMONG THE COMPANIES/INDIVIDUALS THAT TODAY HAVE A NEED THAT MY COMPANY COULD SATISFY, KNOW THEY SHOULD CONTACT MY COMPANY?” Q13. Who at present is the salesperson who is caring for your company? 18% 2% 42% Doesnt remember/doesn't know Remebers name 38% Only with customer service nobody Train somebody on marketing! 24 WHAT TO DO? • 1) Handle internal reasons • 2) Out of your comfort zone • 3) Embrace marketing • 4) Mind financial aspects 26 5) INCREASE PEOPLE VALUE 27 A BUSINESS IDEA IS AS VALUABLE AS THE PEOPLE WHO SUPPORT IT ARE YOU “BETTING” ON THE RIGHT PEOPLE? Steve Jobs, around 1997, talks about his failure in Apple 70% OF COSTS OF NON QUALITY OF PERSONNEL DEPEND ON CHARACTER RATHER THAN ON COMPETENCE AND EXPERIENCE OPEN SOURCE MANAGEMENT HOW TO GET PEOPLE TO BUY INTO COMPANY GOALS! www.opensourcemanagement.it PRODUCTIVITY PROBLEM •CAUSE (=Source Point) • EFFECT (=Receipt Point) DO YOU HAVE A GOAL? 35 36 Write your 3 years goals 37 Why should someone really capable work for you? 38 WHY HAVING A COMPANY GOAL? • “When in a group there isn’t a goal, any member of the group will be looking for a new one to embrace…” • “Given a good quality goal even an average quality management can make good progress» • “Without a positive goal, middle managers cannot get support from the group” 39 WHAT IS A GROUP? • A group is not just a number of people. It is a number of people with a shared purpose, ethical principles and motivations. 40 Every important person in the company should have a special project • 1) Understanding the goal or the project of our employee • 2) If he doesn’t have one, you have to propose one that could motivate him • 3) Making him wanting it • 4) Making sure he reaches it 7) STUDY (IMPROVE YOURSELF) THE COMPANY MIRRORS THE MANAGER • 1) To grow as a company you need to have a program to improve yourself • If you want things to change, you have to change first