MANAGEMENT BY OBJECTIVE NOT DOLLARS
MANAGEMENT BY OBJECTIVE NOT DOLLARS
integrator, distributor, dealer), depending on the level of
sophistication, wants one of three types of advertising budgets.
The first type is a budget the agency is told they have to work
with to promote the company, products and services. It's up to
them to tell the agency how they are going to do it--and make
sales for four new product areas rise 50 percent.
The second is somewhat of a management-by-objective
approach. However, so much time is spent reviewing total dollars
that each individual item is examined until the forest can't be
seen through the trees.
The third one, however, is a creative, viable business
tool.
All too often sales goals are learned after the fact.
Budget, therefore, is created emotionally rather than scien-
tifically. As a result, the agency has to work backward to
develop some semblance of budget to help achieve those goals.
There isn't a responsible management group around that
doesn't have a three- to five-year business and marketing plan.
However, it's rare that a company has a three- and five-year
MANAGEMENT BY OBJECTIVE, NOT DOLLARS (cont.)
advertising/promotional plan. If you don't have realistic
advertising goals for that type of period, all you're doing is
struggling from year to year. You often find you've even lulled
yourself into a pattern that is dull and repetitive. In fact,
your program isn't really keeping pace with the company.
While most companies talk about an annual advertising
budget, when they're really talking about is a seven-month
program. That's because they never budget for the first quarter
of the coming year's efforts. By the time next year's budgets
are approved and news ads, sales literature and other items are
being prepared, it's well into the second quarter.
We feel that in developing a budget, it's better to use the
task method. Rather than tie yourself down to last year's
figures or some percentage of anticipated sales, determine what
is needed to accomplish the year's objectives.
Throughout the year, keep an active budget file for the
coming year. Put in notes, thoughts, possible projects and
records. Then review it periodically to see if the projects
should culled, if they are still good or if they should be pushed
out even further. Even if a project doesn't survive and you
still feel it's valuable for the organization, don't discard it.
It could just be ahead of its time.
Track your costs. Know how much it costs to produce sales
literature, price lists, direct mail pieces, seminar invitations
and other items that are a standard portion of your budget. Then
you can easily map out what you need without a lot of wear and
tear.
In preparing your program and budget, be realistically
optimistic. Your sales department will be called upon to
increase sales, so you should similarly raise your marketing
sights. That usually means more money. Don't be apologetic ...
just specific.
Next, draw up schedules for the publication of ads,
completion dates for articles, completion dates for literature
and mailings and other projects. This provides the skeleton as
well as the flesh for your communications budget.
Don't tie yourself down. It's important that the budget
stay flexible throughout the year because your business isn't
stagnant and predictable for long periods of time. With the
exception of compensating for inflation, don't put contingency
provisions in with your plans. That simply isn't management by
objective. Instead, develop detailed objectives, detailed plans
to achieve those objectives and detailed budgets for these
objectives. Contingencies simply cover up lack of planning.
When you've completed the budget, don't simply drop it in
someone's inbasket. It's too important and deserves face-to-face
presentation. Feel confident with the program. Be so knowledge-
able that you can most effectively present it and defend its
various aspects.
If you've done you homework, that budget is based on
achieving predetermined and preapproved objectives. If manage-
ment lowers the budget, they have to also lower their sights and
decide which of the objectives they want to either lower or drop
altogether.
Even though the program and budget have been approved,
don't think they've been set in concrete. Establish quarterly or
semi-annual budget reviews with your people to help determine if
you are working toward your objectives.
If you're not willing to be measured against objectives,
don't worry about responsibilities and accountability. Instead,
simply ask management how much money they want to spend on
advertising and promotion and fly by the seat of your pants.
If you like danger, it will be a lot of fun.
MANAGEMENT BY OBJECTIVE NOT DOLLARS - To learn more about this author, visit Andy Marken's Website.
Like this article? Share it with your friends
It's been our experience that management (manufacturer,
integrator, distributor, dealer), depending on the level of
sophistication, wants one of three types of advertising budgets.
The first type is a budget the agency is told they have to work
with to promote the company, products and services. It's up to
them to tell the agency how they are going to do it--and make
sales for four new product areas rise 50 percent.
The second is somewhat of a management-by-objective
approach. However, so much time is spent reviewing total dollars
that each individual item is examined until the forest can't be
seen through the trees.
The third one, however, is a creative, viable business
tool.
All too often sales goals are learned after the fact.
Budget, therefore, is created emotionally rather than scien-
tifically. As a result, the agency has to work backward to
develop some semblance of budget to help achieve those goals.
There isn't a responsible management group around that
doesn't have a three- to five-year business and marketing plan.
However, it's rare that a company has a three- and five-year
MANAGEMENT BY OBJECTIVE, NOT DOLLARS (cont.)
advertising/promotional plan. If you don't have realistic
advertising goals for that type of period, all you're doing is
struggling from year to year. You often find you've even lulled
yourself into a pattern that is dull and repetitive. In fact,
your program isn't really keeping pace with the company.
While most companies talk about an annual advertising
budget, when they're really talking about is a seven-month
program. That's because they never budget for the first quarter
of the coming year's efforts. By the time next year's budgets
are approved and news ads, sales literature and other items are
being prepared, it's well into the second quarter.
We feel that in developing a budget, it's better to use the
task method. Rather than tie yourself down to last year's
figures or some percentage of anticipated sales, determine what
is needed to accomplish the year's objectives.
Throughout the year, keep an active budget file for the
coming year. Put in notes, thoughts, possible projects and
records. Then review it periodically to see if the projects
should culled, if they are still good or if they should be pushed
out even further. Even if a project doesn't survive and you
still feel it's valuable for the organization, don't discard it.
It could just be ahead of its time.
Track your costs. Know how much it costs to produce sales
literature, price lists, direct mail pieces, seminar invitations
and other items that are a standard portion of your budget. Then
you can easily map out what you need without a lot of wear and
tear.
In preparing your program and budget, be realistically
optimistic. Your sales department will be called upon to
increase sales, so you should similarly raise your marketing
sights. That usually means more money. Don't be apologetic ...
just specific.
Next, draw up schedules for the publication of ads,
completion dates for articles, completion dates for literature
and mailings and other projects. This provides the skeleton as
well as the flesh for your communications budget.
Don't tie yourself down. It's important that the budget
stay flexible throughout the year because your business isn't
stagnant and predictable for long periods of time. With the
exception of compensating for inflation, don't put contingency
provisions in with your plans. That simply isn't management by
objective. Instead, develop detailed objectives, detailed plans
to achieve those objectives and detailed budgets for these
objectives. Contingencies simply cover up lack of planning.
When you've completed the budget, don't simply drop it in
someone's inbasket. It's too important and deserves face-to-face
presentation. Feel confident with the program. Be so knowledge-
able that you can most effectively present it and defend its
various aspects.
If you've done you homework, that budget is based on
achieving predetermined and preapproved objectives. If manage-
ment lowers the budget, they have to also lower their sights and
decide which of the objectives they want to either lower or drop
altogether.
Even though the program and budget have been approved,
don't think they've been set in concrete. Establish quarterly or
semi-annual budget reviews with your people to help determine if
you are working toward your objectives.
If you're not willing to be measured against objectives,
don't worry about responsibilities and accountability. Instead,
simply ask management how much money they want to spend on
advertising and promotion and fly by the seat of your pants.
If you like danger, it will be a lot of fun.
MANAGEMENT BY OBJECTIVE NOT DOLLARS - To learn more about this author, visit Andy Marken's Website.
Like this article? Share it with your friends
 | |
 |
No article feedback found. |
| |
Leave Your Feedback |
 | |
| |||
Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
|||
Casey GollanCasey Gollan, Business Coaching & Mentoring Programs. Add $1 Million to $10 Million in the next 1 to 3 years. Since 1996 Casey has to added hundreds of millions of dollars to businesses. Watch a free video see client results Business Coaching website. - Visit Casey Gollan's Website |
|||
David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
|||
Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
|||
Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
|  |
Subscribe to Andy's articles
 | |
|
|  |
 | |
|
| |
 | |||||||
|
 | ||
|
||
 |
||
|
||
|
| ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 Basic SEO Guide Make Attitude Your Ally Your Marketing Mindset 25 Facebook & Twitter Tips Law of Attraction in Action |
|
 | ||
 |
More PR Resources
Press Release Builder | |
 |
Top 50 HR Blogs 2009
Top 50 HR Blogs 2009 | |
| ||
 | ||||
| ||||
|
| ||||
| ||||
|
|
|
|
|
||||||||||||
|
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
|
|
|
| ||||||||||||
| ||||||||||||
|
|
||||||||||||