HOME PAGE ABOUT US CONTACT US SUBSCRIBE ADVERTISE ARCHIVES
TOP STORIES NATION ECONOMY COMPANIES SHIPPING OPINION PERSPECTIVE LIFE SPORTS BANKING
SEARCH ENGINE
WWWOur Site
Anchored by Jonathan dela Cruz, Salvador Escudero, Boying Remulla, Teddy Boy Locsin and Alvin Capino
Monday to Friday
8:00pm-10:00pm

ARTICLE SERVICES
  • bookmark this page
  • print this article
  • view archive
  •  
    Advice
     
    For little companies, big ideas are a must
     

    Q: We’re an outsourcing start-up that wants to break into the United States and European markets. But the big companies that could be our clients won’t even talk to guys like us. How do we get them to at least hear our proposal? Ram Muthiah, Seattle, Washington

    A: By changing the game. In a nutshell, that’s what it takes for a little service company like yours that’s dying to break in to get the attention of the monster companies. Most of the time, those companies are so bureaucratic and risk-adverse—and their buying operations so tied to the tried-and-true monster suppliers—you can’t offer any form of marginal improvement to get in the door. You’ve got to make an offer they can’t refuse.

    Sure, the entrenched competition will be out there making killer offers, too, and with track records to prove they can deliver. To make matters worse, your competition’s sales teams have probably worked for years to develop personal relationships with the key players inside each customer’s buying operation, shepherding them through more “special events” than you could count. In other words, your competition has made itself the devil they know.

    Which is why you have to do something radical. You can’t get a contract by offering a somewhat lower price or somewhat faster delivery. The first time out, there’s just no reason for the buyer to risk his reputation by believing in you for that kind of payback.

    Rather, you have to buy your way in the door with a transformative value proposition with almost zero risk attached. Essentially, you have to make it seem dunderheaded not to do business with you—it’s a no-lose proposition.

    Case in point is the Indian outsourcing business Wipro. Starting in the late 1980s, it came seemingly from nowhere to wiggle its way around the established technology-service providers and into the hearts of big customer after big customer. Its modus operandi was to offer something outrageous—significantly higher quality with a massively lower price—and then over-deliver on that promise by orders of magnitude. It was stunning, and the buyers who went with them very quickly looked like heroes in their organizations. No wonder it took only a couple of decades for Wipro to grow to a $3-billion global operation with nearly 80,000 employees.

    Similarly, in its early days in the mid-1970s, the consulting firm Bain & Co. told potential clients, “You don’t need to pay us very much up-front. Down the road, just pay us a percentage of the additional profits our recommendations are sure to earn you.” With that kind of upside-only proposition, it’s not surprising that Bain was able to gain a foothold in an industry that was already overcrowded with brand-name firms.

    Along with their almost too-good-to-be-true value propositions, both Wipro and Bain possessed a second critical quality that won them clients in their start-up days, and that was fire. Their sales representatives may have been well-educated engineers and MBAs, but the best of them still displayed a certain religious fervor about the unmatched value their company could deliver. Their presentations would leave behind converts, who wouldn’t be saying, “Hmm, interesting,” as in the typical postmortem, but: “Did you see the way those people believe in themselves? Did you see the fire in their eyes? They make me believe, too.”

    So, not easy—but there are your marching orders. If you want the big guys to “at least hear your proposal,” as you put it, the promise of your proposal has got to blow them away, with an outsize upside and minimal downside. And once in the door, you have to blow them away again, with your passion. Together, that’s the foundation upon which winning enterprises are built.

    Q:  I am an information-technology consultant who makes $300 an hour at my firm. A customer has offered to pay me $1,000 a day to moonlight for them on the occasional weekend. Should I take it? Name Withheld, Houston

    A: Here’s the only answer to your question: Ask your boss. That’s the only way to get clear on your company’s policies regarding outside work and to do the right thing by them. After all, ethical decisions must always be transparent.

    Your question, however, raises another point, and it’s for leaders. No company, regardless of its size or business, should be without some kind of safety valve that allows employees to ask about quandaries such as this one. It can be a confidential ombudsman, an anonymous tip line or whatever method works best. The last time you want your people to feel alone is during an ethical dilemma.

    *****

    Jack and Suzy Welch are the authors of the international bestseller Winning (Collins). Their latest book is Winning: The Answers: Confronting 74 of the Toughest Questions in Business Today (Collins). They are eager to hear about your career dilemmas and challenges at work and look forward to answering your questions in future columns. You can e-mail them questions at winning@nytimes.com. Please include your name, occupation, city and country.

    OTHER STORIES

    The Puno court and the two remedial scalpels of amparo and habeas data

    Generations of law students and lawyers, many of whom are now prominently serving in the Judiciary, are familiar with the landmark case of US. Bustos, G.R. No. L-12592, March 18, 1918. 

    read more

    Office landlord

    WILLIAM Willems operates his office—all 950 of them in 400 cities—with a thin gilded plastic sheet the size of a credit card.

    “This is what I call an upgraded Starbucks principle,” Willems told the BusinessMirror, flashing the 3-inch by 2-inch card embossed with his name.

    read more

    Winning: For little companies, big ideas are a must

    Q: We’re an outsourcing start-up that wants to break into the United States and European markets. But the big companies that could be our clients won’t even talk to guys like us. How do we get them to at least hear our proposal? Ram Muthiah, Seattle, Washington

    read more

    How to manufacture a global food crisis

    WHEN tens of thousands of people staged demonstrations in Mexico last year to protest a 60-percent increase in the price of tortillas, many analysts pointed to biofuel as the culprit.

    read more

    The best advice I ever got

    In the summer of 1982, I worked for Donald Regan, then the US secretary of the treasury under President Reagan. I was about to go into my final year at Wharton and, having worked many summers at Estée Lauder Companies since age 13, was no stranger to office life. But in this role my title was “special assistant to the special assistant”—not what I had anticipated.

    read more

    Leading an innovation review

    Innovation is fraught with uncertainty. Is the timing right? Will the consumer buy the product, and then buy it again? Will the technology work at the right price? The sad fact is that one can do everything right and still get it wrong—and this reality must be reflected in the review process.

    read more

    Hurd mentality

    WITH electronic chips competing for grain as the commodity of the computer age, it pays to have a salesman at the helm.   

    read more

    winning: Keeping one’s eyes on the future prize

    Q: What are the big concerns confronting business in the next 10 years? Fatma Abdullah, Dubai, United Arab Emirates

    read more

    More mouths to feed

    Ask Josephine Gonzalez how many children a family should have and the stick-figured 31-year-old mother answers without hesitation. “I only wanted three,” she says, trying to soothe the naked baby boy who tugs at her ragged dress.

    read more

    Philippines feels the pinch of dollar’s decline

    The US dollar has always been king down by the docks on Manila Bay, where Philippine seamen congregate to swap stories and look for work.

    read more

    10 reasons why electricity bills are high

    Note: After Manila Electric Co. (Meralco), the country’s largest electricity distributor and supplier, announced in April an increase in its generation charges by 51.88 centavos per kilowatt-hour (kWh), rumors of a brewing government takeover began spreading like wildfire.

    read more

    Working in the gray zone

    Using company resources to work on personal projects, especially on company time, is a no-no for employees in most organizations. But supervisors often operate in what I call a gray zone, turning a blind eye to such officially forbidden behavior. They realize that stamping it out may do more harm than good, because many employees have a deep-seated need to engage in it.

    read more

    Creating the conversations that create innovation

    One of the great myths of innovation is that breakthrough ideas are produced solely by intuitive individuals or by small creative teams working in isolation. The reality is that whether we think of Thomas Edison, Ted Turner, Jeff Bezos or Steve Jobs, most well-known innovators developed their breakthrough ideas as a result of interacting with a rich and diverse community of people.

    read more

    Fun revisited

    Thirteen years after he created the 17-hectare Enchanted Kingdom in Santa Rosa, Laguna, designer Gary Goddard has once again returned to the theme park he originally imagined.

    read more

    The Modern Leader

    ‘People don’t want to be managed, people want to be led.”

    read more

    Winning: Before taking the plunge, get all the details

    Q: I’ve been in my job for six years, but there’s very little runway for me here. Last week, a business acquaintance offered me a job at his company. It’s not really my area of expertise and the position is somewhat unclear, but it seems exciting. Do I go for it? Name Withheld, Wayne, Pennsylvania

    read more

    The Rice Cop

    There are moments during these days of worry over soaring international food prices when it appears that Philippine President Gloria Macapagal-Arroyo is out to solve her country’s rice shortages on her own. 

    read more

    Rice’s price rise takes a toll in Manila slum

    It is in the heaving slums of Asia, amid sagging tin shacks and streets afloat with waste, that the soaring global price for rice hits hardest.

    read more

    Look to the Sky

    ALFRED M. Yao is a man who rarely rests.

    He says the last vacation he had with his entire family was two years ago in New Zealand, and remembers a few regional cruises with his wife. He tells the BusinessMirror he would rather be on his toes, working, on the lookout for new business opportunities.

    read more

    The Best Advice I Ever Got

    Shortly after joining Salomon Brothers in 1975, I had an opportunity to rescue a troubled account. Our firm was getting almost no business from one of our huge institutional clients, but I made some headway and surprised everyone, including myself.

    read more

    Using conflict as a catalyst for change

    Deep organizational change inevitably produces conflict. Those who lead change usually try to suppress conflict, with the goal of keeping the energy positive and the forward momentum strong.

    read more

    Law& property

    Talk about having the right address.

    That’s how Atty. Andres D. Bautista, chief executive officer of the Kuok Group in the Philippines, was initially considered to become the Hong Kong-based group’s top guy in the Philippines.

    read more

    Winning: When the chips are down, keep your chin up

    Q: Our company, like many these days, is experiencing lower earnings and the termination of many good employees. How do we build morale and give employees some sense of confidence in the face of poor financial results? Name Withheld, Maryville, Tennessee

    read more

    From farms to tables

    Governments serve the secondary purpose of intervening when free markets come perilously close—or are perceived to be close—to losing control.

    read more

    Food-Price Shock

    The globe’s worst food crisis in a generation emerged as a blip on the big boards and computer screens of America’s great grain exchanges. At first, it seemed like little more than a bout of bad weather.

    read more

    Take the lead at your next review

    The management literature is full of advice for those who want to deliver effective performance reviews. The usual mantra? Use review sessions to set clear expectations and goals but never forget to praise good work and to listen closely to employee concerns.

    read more

    What you can gain when you lose good people

    Knowledge workers in technology companies generally don’t view their jobs as being about human relationships. The more introverted among them would probably even shudder at the thought.

    read more