Success in the Digital Age Requires Extraordinary Retail Leaders

Retail leaders in the digital age

Leadership is a process whereby an individual influences a group of individuals to achieve a common goal 1. But how can retailers lead and influence their staff during this digital disruption? Maybe it’s time to challenge retail leadership says Ken Silay, Partner, Innovator’s Equation. Ken suggests writing for Innovative Retail Technologies that “The truth is retail is run by old thinking and old metrics” and “difference between the old and new thinking in business creates a gap in retail leadership that will continue to get wider”.

Dr Ganesh Shermon, Managing Partner for “R for C Talent Management Solutions” (North America) recently highlighted the challenges retailers face. He said that retailers are confronted with dramatic managerial changes, given the convergence of the human mind, (Intellect), behavioral psychology (Cognitive), smart machines, and deep learning science and knowledge (Neural networks) as the basis for management actions. That’s really a mouth full!

The truth is that the old way of leading a retail business does not work anymore. But what should retailers do to get their businesses on par with the digital age?

Strategies that leaders should consider in the Digital Age

Prof Kamal Kishor Jain, Head of HR and Business Psychology Department at IIM Indore, recently said digital age leaders need to acknowledge the limits of their expertise. Additionally, the leaders should build a reliable network of knowledgeable experts to help them navigate through their choices. Prof Jain suggests the following:

Speed – is the most distinguishing characteristic of the digital age. No matter how fast you are moving to transform your business; the depressing reality is that you still probably aren’t moving fast enough.

Knowledge creation – we need to become more right brained to compete and survive. Leadership is not a noun, it’s a verb. The real charismatic leader is one who disseminates knowledge into his subordinates.

Primarily leadership qualities – leaders should be daring, caring and sharing. ‘Failing fast’ and ‘falling forward’ are critical precursors to success in the digital era. Such disruptive change requires leaders to be caring about people are affected by such changes. It is only by caring that a leader can elicit support from followers.

The Global Center for Digital Business Transformation, an initiative of IMD business school and Cisco, and HR consultancy metaBeratung, have identified four competencies (HAVE) that business leaders need in order to excel in the era of digital disruption:

Humble – in an age of rapid change, knowing what you don’t know can be as valuable in a business context as knowing what you do. Therefore, digital leaders need a measure of humility, and a willingness to seek diverse inputs both from within and outside their organisations.

Adaptable – in a complex and changing environment, an ability to adapt is critical. The global reach of digital technologies has opened up new frontiers for organizations, shrinking once insurmountable continental divides and erasing traditional boundaries between territories. Dealing with the cultural and business impacts of this requires adaptability.

Visionary – in times of profound disruption, clear-eyed and rational direction finding is needed. Therefore a clear vision, even in the absence of detailed plans, is a core competency for digital leaders.

Engaged – painting visions for the future, successfully communicating these visions and being adaptable enough to change them, requires constant engagement with stakeholders. This broad-based desire to explore, discover, learn and discuss with others is as much a mind-set, as it is a definable set of business-focused activities or behaviors.

How can leaders change their retail business to digital?

It is impossible for retailers to change overnight from doing their things the old way to embracing the digital economy. Indeed, the process must get started and in quick time. Therefore, the ability to digitally re-imagine the business is determined in large part by a clear digital strategy supported by leaders who foster a culture able to change and invent the new 3. Kane et al proposed the following strategies for retailers to use getting their business to the digital age:

Create a strategy that transforms – when developing a more advanced digital strategy; the best approach may be to turn the traditional strategy development process on its head.

Get the right people for job – just as important as developing talent is reducing the risk of losing it.

Take risks – to boost risk taking in their companies, executives need to change their mind-sets.

Sparking new ideas – many new ideas arise through collaborative efforts among people of different backgrounds.

Telling the story – storytelling is becoming a popular means of gaining employee buy-in and organizational traction for digital transformation.

After all, it will probably require an extraordinary retail leaders to facilitate the move of their businesses from analogue to digital.

Private Equity and Digital Transformation – Creating Value Through Vision

The Holy Grail for private equity is to find a business you can grow rapidly and profitably. One area of growth that private equity (and everyone else) cannot ignore is the power of Digital Transformation. OK, that sounds a little like the start of a super-hero film but give this a moment.

Actually, a superhero doomsday setting isn’t that far off the mark. It’s a fact that a huge number of businesses are not prepared for the digital age. They don’t have a digital strategy and they are going to begin to fail more frequently, more rapidly as all aspects of digital marketing and digital buying continue to be felt.

So what does that mean for private equity firms? First and foremost, there are going to be some pretty good deals out there soon, but only for firms that understand the power of Digital Transformation. Instead of just growing value through acquisition and better management, prudent firms can target companies that can’t figure out how to transform their business model or processes to cut costs, gain more market share, and profit through digitization. Turning around these companies might be as simple as instituting a CRM system, or putting up a truly strategic transactional website to attract and convert more visitors. These are going to be the Private Equity Rockstars in the coming years. But that is the future – it’s now that counts.

The private equity firm that starts Digitally Transforming now is going to be way ahead of the curve. Look at the possibilities, the CRM, the strategic website, but look up, way up – two words: mission and vision. Think of the best companies on earth and you know what their vision is. Apple’s vision is to provide their customers with endless tech toys that all link together seamlessly. Netflix is all about bringing you endless entertainment for a monthly fee – and smashing the cable companies along the way. U.S. Steel is – steel. Nothing fires up a company more than knowing who it is and where it’s going.

This is an area that Digital Transformation excels at – transforming a company through vision. And in this case the vision is not a core principle – but the idea that the core principle needs to be transformed. Digital Transformation is about taking a company and growing profitability while you move the company into the 21st century. And that is exciting! Not only does it mean employees enjoy their work more as you eliminate duplication and admin work, but it conveys to everyone a new sense of purpose. Digital Transformation is really about changing HOW a company operates and not necessarily WHAT it does. Steel is steel – but that doesn’t mean U. S. Steel can’t digitally transform.

Think about that from a private equity setting. Supercharge a portfolio by transforming companies from within utilizing best practices for the 21st century – make them more profitable, revitalize entire cultures – maybe a Digital Transformation is a little like a super-hero movie! If you want to build ROI, create efficiencies, and drive a successful portfolio, you have to know how to implement a Digital Transformation.

Just one thing – stay in the suit – form fitting spandex is definitely a step in the wrong direction!

How to Write Marketing Communications Plans

Marketing Communications are “all strategies, tactics, and activities involved in getting the desired marketing messages to intended target markets, regardless of the media used” (MarcommWise, 2006). Tony Yeshin (1999) defines marketing communications as “the process by which a marketer develops and presents stimuli to a defined target audience with a purpose of eliciting a desired set of responses” (Yeshin, 1999). Marketing communications are: adverting, sales promotions, personal selling, PR and direct and interactive marketing (Fill, 1999).
Consequently Marketing Communications Plan is the marketing plan which promotional plan incorporates two or more integrated marketing communications mediums aiming to reiterate the same goals and objectives. Marketing Communications Plans are considered by many professionals as an excellent way to effectively communicate with target audience.
Marketing Communications Plans are generally based on two different frameworks: Marketing Communications Planning Framework and SOSTAC (Fill, 1999).

Marketing Communications Plans consist of the following vital elements:

Context analysis

Promotional objectives

Marketing communications strategy

Promotional mix (methods and tools)

Budget schedule

Evaluation and control (Fill, 1999).

When writing marketing communications plan it is important to:

1. Set corporate, marketing and marketing communications objectives, which would support and integrate with each other.

2. Develop segmentation, targeting and positioning strategies

3. Develop creative message with which Marketing Communications Plan with communicate with target audience

4. Select and justify one or combination of marketing strategies (push, pull or profile)

5. Develop well-rounded and creative set of promotional mediums and allocate appropriate budget for each medium.

6. Create contingency planning strategy (in case something goes wrong)

7. Set strict set of evaluation and control mediums which would include milestones and continuous evaluation

References

Fill C (1999) Marketing Communications, 2nd Edition, Prentice Hall Europe
Yeshin T, (1999) Integrated Marketing Communications, The chartered institute of marketing, Butterworth Heinemann, Oxford
http://www.marcommwise.com/glossary.phtml?a=m&s=0

Please find below links to excellent Marketing Communications Plans:

C/M/315. INTEGRATED MARKETING COMMUNICATIONS PLAN FOR ROYAL CARIBBEAN CRUISES LTD

S/M/162. Marketing communication plan: Philips SatinIce UK, and current marketing communications strategy analysis

S/M/158. Marketing Communication Plan for British Airways

S/M/158. Marketing Communication Plan for British Airways

E/M/14. Marketing Communications Plan for Pizza Hut

C/M/180. Internet music search engine Promotion Campaign

C/M/171. Analysis of the 50+ customer group for M&S and brief outline of a promotional campaign

P/M/311. Marketing communication Plan for Direct Lines the breakdown service

S/M/77. Project Management for Marketing Communications Campaign

P/M/289. Marketing Communications Plan for ROYAL DUTCH/ SHELL

S/M/69. Marketing Communications Plan for British Airways (BA)

P/M/269. Marketing Communications Plan for Shell

P/M/262. Marketing Communications Plan for North West Valley Sailing Club

C/M/117. Marketing Communications Plan for Hugo Boss

P/M/252. Marketing Communications Plan for the Introduction of New Product: Smoothie

P/M/139. Marketing Communications Plan for Haagen-Dazs

P/M/130. Marketing Communications Plan for the new degree programme

P/M/133. Marketing Communications Plan for Marks and Spencer

P/M/134. Analysis and development of Marketing Communications Plan for Adidas (US)

http://www.coursework4you.co.uk/sprtmrk28.htm

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