LEAD YOUR MARKET

I am going to make the most of our front cover, which now has a necessary new look, to wish you all the best for 2012. We are still in time to send a positive message.

In fact, maybe we should even do so twice a year - once in January to wish everyone a good start for their activities and achievements in the first quarter, and a second time in September to give our best wishes in meeting the year’s targets. Joking aside, I wish you all a year full of opportunities and a wealth of changes. Changes is a word to be particularly taken into account this year since it is now more likely than ever that those who fail to implement the changes required by the market will face greater difficulties in getting ahead of their competitors. Resistance to change is hardly a recipe for success in an environment as globalized, uncertain and competitive as we see today.

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This should be a year of change!  Come on!

Indeed, "rumour has it" that this year will be a difficult one and will undoubtedly not be as easy as previous ones. Gone are the easy times. On our last front page we highlighted the fact that market shares in the coming years would win in a “hand-to-hand” struggle with the market itself to bring down buyers’ reluctance and neutralize competitors’ activities. Nevertheless, it will surely be a very difficult year for those who believe it will and who repeat this to others every day.
However, since the recession began, Lead Your Market has been saying that we are going through an exciting time for those who are willing to see it this way, as regards opportunities, creativity and the possibilities for improvement in team spirit (in the face of adversity and difficulties). It is going to be a difficult year, but an interesting one.
On our next front page we will be putting more emphasis on the significant changes that must be set in motion for sales teams in all companies to overcome the recession and to come out on top, which will enable them to seize the opportunities when better times come.
No; it not is true that today the market is seeking cheaper prices than before. We have seen adjustments made (which have mostly been necessary) and we have to recognize that we lived beyond our means over the years and that things could not go on like this. Intermediary clients (manufacturers and distributors) and end customers (consumers) all accepted this as it enabled them to have a good life. Banks lent money easily and cared little if the price being paid was realistic or not. Today this is no longer the case, but this is certainly better than the alternative. In fact, companies that supply good products and are well positioned are continuing to sell and capitalize on the current times. They are not getting the same margins as before, but they are continuing to grow in markets that are below 20% or 30%. Their real challenge is to increase their market share. This is where SMEs have to confront large multinationals, which incidentally have "reasons" that the former do not but which also have some shortcomings that we have noticed in our larger clients: sluggishness in taking good decisions and seizing opportunities, and internal politics.

A study carried out in 1980 (HH.Hinterhuber Strategishe Unternehmungsfürung de Gruyter, Lehrbuch), which has not yet been refuted, showed that 80% - 85% of cases of poor results from staff are due to the work systems in place, whereas only 10% - 15% are caused by the employees themselves. As I said ... this should be a year of change!  Come on!

Eric Kircher