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Two of the so-called “soft” disciplines are more important, some would argue even more critical, during the current downturn in the economy: Human Relations and Marketing.

For HR the challenge is maintaining the company’s culture through one or more rounds of layoffs, perhaps cuts in wages as well. Making sure that communications throughout the organization are clear. That management does its job getting the message through middle management to the front line – a challenge even during good times.

There’s an additional challenge for the HR folks when an acquisition or merger is attempted (regardless the economy). Theirs is the responsibility of helping make sure the cultures align and mesh. Most mergers/acquisitions that fail do so not because the numbers didn’t work out, but because the people couldn’t. When the Stephen Covey and Franklin Planner people couldn’t make it work, the message was clear: no one got around to doing Due Diligence on the cultures.

The challenge for Marketing is to raise the company’s and/or product(s) profile, to make sure they are seen as survivors and to position the enterprise to leverage its position once things start to improve. Jim Cecil is generally regarded as the Guru of Nurture Marketing. His is an approach that urges disciples to “drip” on their prospects periodically over long periods and raise awareness so that when the product or service is needed, your company’s will be “top of mind.”

Cecil suggests periodic, albeit scheduled, mailings of something of value. Communications that give, but don’t ask or sell. A constant “dripping” of value. Kraig Kramer’s newsletter do that – offering without charge or sales pitch, a different tool free for the downloading which can profit your business. And, by the way, when you have need, you’ll remember Kraig and his CEOtools.com web site.

Attuned to the times, Cecil told one of my CEO groups, “Management’s challenge is to sell more with fewer people to customers who demand more service and attention for less money.” A salient snippet, a bit of pithy wisdom indeed.

For many, it was Grand Master of Marketing Cecil who forever defined Marketing and made clear the necessity it be separate on the organizational chart from Sales when he explained, “Sales picks the low hanging fruit; Marketing waters the tree.”

Good (economic) weather will come again in time … are you making sure your trees are being watered?

Bud Carter
Senior Chairman Vistage Atlanta
Publisher of the Quotes Book entitled: Chairman Carter’s Collection of Pithy Quotes (Quotes designed to improve your bottom line, or, at the least, your disposition).

It may well be that two of my groups’ most recent speakers will be the two who provided the most lasting message.

Sam Bowers‘presentation “Sales and Marketing in the New Economy” made clear, from his perspective, that the old axiom, “Faster, better, cheaper – your choice, any two” no longer applies. That, in fact, being able to provide your company’s product, its service, better, faster and cheaper is now the price of admission just to be considered. “It is,” he said, “the new definition of Capitalism.”

Sam asked a key question: “What are you providing now that your customer does not value?” According to Bowers, “The concept of Value Added has bankrupted more companies than any other.” Bowers is far from subtle. One of his comments is already on my web site, Businessquotes.com: “Business entertainment,” he said, “is attempted bribery intended to encourage an employee steal.” Later, noting the chaotic economy, said, “The recession will end when consumers can no longer delay the purchase of durable goods.” Makes sense.

The second would be Futurist David Houle who told both my CEO groups that “intellectual property is the new currency” and asked each what was the intellectual currency of their business. Houle identified technology, health and medicine and energy has the high growth areas for the future.

The former media executive (he played key roles in the start-up of CNN and MTV) told members that no generation before ours has ever lived through an entire age, but this generation will have been here for the start as well as the finish of the Technology Age.” It is his contention we have now entered into The Shift Age (the title of his new book) – a transitional decade before whatever comes next.

Citing the current economy, Houle provided additional content for my collection of pithy quotes, noting, “Thrift is the new extravagance, the new cool” and later added, “The speed of change today is in constant acceleration.”

Bud Carter
Senior Vistage Chairman Atlanta
Publisher Chairman Carter’s Collection of Pithy Quotes (designed to improve your bottom line, or, at the least, your disposition)

Through all the economic chaos, with most business leaders struggling up the tough side of the mountain, it’s good to step back and realize there are some, albeit a diminished number, who are having good years. One with which I am familiar, having worked with him now for nearly 10 years, is succeeding, profiting, not through luck, but through a consistent application of a strong management system, a diversification of product offerings and tapping into the sage counsel of other CEOs committed to his success.

Pierre Panos fled the violence of his native South Africa in the early 90s after accomplishing the equivalency of a CPA (and spending five years in management with Coopers and Lybrand there) and gaining experience in several food service ventures. Not sure where he wanted to migrate, he composed a matrix of all things important to the young couple in a new country – wherever it may be and graded the possibilities, ultimately choosing The United States and Atlanta.

Here, he applied his restaurant background, earning equity as he turned around a marginal mid-price point operation. Next, Panos created a new concept: Stoney River Steakhouse. Panos and his partner ultimately sold the Stoney River concept and their two local stores to the O’Charley’s chain. He then bought out his partner in a popular suburban mid-price point restaurant, Brookwood Grill, and began to diversify.

South of 50, Panos bought several Papa John’s franchise stores, revamped the Brookwood Grill, and ultimately created yet another new dining concept: F2O – Fresh to Order. Poppa Johns is at the low end when it comes to the average ticket, F2O is somewhere in the nine to ten dollars range for lunch and restaurants like the Brookwood Grill usually have price points in the mid-20s.

Choosing good people who are screened and tested to ensure alliance with clearly defined values, Panos likely has a layer of management others would see as a cost, and unnecessary expense. For Pierre it is an investment – a solid core of trusted chiefs who allow him the luxury to work on his businesses, not just in it. The result is that during a down economy, a time when many restaurants are taking it on the chin, some failing to survive, Panos’ company, QSAmerica (QSAmerica.com) is enjoying a good year; a very good year.

His Papa John’s stores (he is now their third largest franchisee) in Tennessee, Georgia, Alabama and Florida, out-perform the chain’s national average. His F2O restaurants here in Atlanta, and one in Chattanooga, are in the black and attracting a long line of franchise seekers. To this point, the numbers cruncher turned restaurateur has opted to keep the majority company-owned while “testing” the franchise possibility with a couple stores. Ask, and the modest South African will tell you that a rigid compliance with Vistage speaker Will Phillips motivational business quote, “The essentials to successful management are good people, roles and rules.”

To which Panos would likely add diversification.

Bud Carter
Senior Chairman Vistage Atlanta
Publisher of Chairman Carter’s Collection of Pithy Quotes (Business quotes designed to improve your bottom line, or, at the least, your disposition). Businessquotes.com