Strategy is Hard - It's Going to be Wrong Because the Future is...the Future!

Strategy is about where your market is going. Who your buyers will be. What your buyers will need. How you'll deliver that.

Most of what passes for strategy in the industrial manufacturing space is actually time-worn tactics with fancy names put on them. You'll hear chitter-chatter about:

Manufacturing Strategy for Sales

Digital Strategy for Manufacturers

Digital Marketing Strategy

But what do they mean? How do they apply to your business? Should they?

Often not.

In fact, the pitter-patter turns out to be simple variations on traditional execution described in grandiose "strategy" terms.

And size isn't the answer. Just as many boutique firms boast of strategy and obsess over tactics, similarly blue ribbon consulting firms will often charge handsome rates for junior associates to deliver find & replace decks and bound reports that provide what execs may expect to hear, and a linear projection based on recency bias.

That's not strategy.

If you're worried about positioning your company for future success and vitality, here's how we suggest you think about it.

Where Your Market Is Going
Who Your Buyers (and theirs) Will Be
What Your Buyers will Need
How You'll Reach Them

Your Products, Use Cases, And USPs Will Change

It's banal to note that markets change. It's true. But it's really hard to plan and to quantify. We all get that.

As Bill Gates warns "We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten."

The key to strategy for industrial manufacturers, therefore, is to simultaneously:

execute relentlessly on what's working today
plan for incremental change in the short-medium term
creatively anticipate the larger-scale changes that will disrupt a market

In the industrial manufacturing space that could include 3D Printing (additive manufacturing), e-commerce, cloud and data (e.g. remote monitoring), changing consumer habits that impact customers' businesses and more.

An effective board with independent directors will ensure the executive staff blends current management with future strategy.

And a strong consultant will blend short-term advice and results with a long-term perspective.

And So Will Your Buyers

As your market changes, your buyers will too.

And yet most manufacturing and capital equipment companies define their ideal customer profile (ICP) according to the same criteria they traditionally have.

That's a mistake.

As your business evolves it changes. As your market evolves, your place in it - and therefore your ICP - changes. As consumer expectations change, your old ICP may fail to adapt - and therefore your target changes.

Strategy must account for this. In most middle-market manufacturing companies, though, product marketing simply tracks competitors. The founder runs R&D according to their interests.

That's not strategy. That's a hobby.

It's critical to understand your buyers before you undertake any product road mapping, sales strategy planning or digital marketing design.

New Product Vitality Index (NPVI)

3M generates >30% of its sales from products which didn't exist five years ago.

Of course....they have big R&D budgets, large sales and marketing teams, lots of resources to make that happen. AND they created the concept of NPVI to hold themselves accountable.

At the same time, $10B in new product sales (30% of approx $30B) is a massive number. To position your middle-market business for success will take much less.

It's doable.

But....it's a massive change management project.

If you want to dabble in tactics, then focus on tweaking the manufacturing of the machines and products you always have, with small, incremental adaptations. That's a strategy by default.

If you plan or aspire to grow, though, then build a team that will help you create and launch new products.

Buying Habits Change Like Markets

COVID probably changed your trade show and T&E budgets. Maybe they're coming back, but it will be a long time before they're the same.

That means a substantial change in how industrial manufacturers market and sell their products.

Revenue growth strategy today requires more than understanding market trends, changing buyer expectations, and creating suitable new products. It requires a strategic (legitimately) approach to using sales methods, technology and digital techniques to identify, attract and engage with buyers.

Your traditional website, marketing and industrial sales org chart, resource allocation and approaches probably won't work.

manufacturing strategies need to consider market demand and ensure that the business model guides process improvements while strategy focuses on buyer expectations

There is NO Canned Answer

You can't fix manufacturing sales strategy with a new email prospecting program alone.

You can't create a digital marketing strategy for industrial sales by starting a blog and running some ads.

You can't conceive and execute a digital strategy for manufacturers without really understanding global markets, business trends, finance, and technology trends.

Developing a manufacturing strategy is a creative journey that will challenge some long-standing assumptions. It will touch on your markets, products, financial model, workforce, customers, sales and marketing.

It's exhilarating....but it's more than hiring a sales trainer or marketing agency.

Do you help with digital marketing?

Sometimes. Actually, often.

But that's not where we start. Lots of inbound marketing agencies talk of experience in manufacturing and capital equipment, boast of sales training capability, and offer to make marketing easy.

It's not.

And none of it matters if you're not making the right products to sell to the right buyers in the right ways.

We normally start at the beginning.

Do you do sales training?

No.

But how do you know that's what you need?

In most cases strategy needs to be clarified. Then, with an understanding of buyers, a sales process identified.

Your sales team might be perfect, or they could be ill-suited for the requirements regardless of training.

And even if everything else is properly developed, you might need a sales consultant instead of a sales trainer.

What skills does a manufacturing strategist need?

I'm biased - because I know the threads that I pull together to make it work.

But in answer, I'd say:

deep experience in industrial manufacturing (including all applicable channels)
carried a P&L
sold deals of a comparable magnitude to yours
managed sales teams
managed marketing teams
deep expertise with salestech, martech, and industry trends including cloud data, IIot, 3D Printing, recurring revenue/subscriptions
qualified as an independent director (to bring the perspective necessary)

Who will participate?

We'll plan that together.

But make no mistake. This is the CEO/president/GM's project.

There will be input from team members and senior staff, but this is about planning the direction of your company.

Overall Revenue Effectiveness™ Framework

The business strategy framework that I use takes concepts from lean manufacturing and manufacturing process best practices and applies them to manufacturing marketing and industrial sales.

Continuous improvement in revenue growth means taking a manufacturing system view of the entire growth system.

3D Printing won't impact our industry

OK.

But I disagree.

This may mean we're not a good fit.

But let's back up for a minute. Is there any chance that your customers, or your customers' customers might see an opportunity to use it?

Then it will impact your industry.

Maybe it doesn't replace your factory, but it could certainly change how your customers run theirs.

It's crazy to ignore it.

How long does an industrial manufacturing strategy project take?

We'll be able to figure out where you are, where the market's headed and how to adjust course to close the gap pretty quickly - 3-4 months

But if the answer is an acquisition, and you will need a year to digest that, it will take longer. Similarly if you have to turn over most of your sales and marketing team, hire new R&D talent, build new partnerships, etc., then the execution of the strategy will take time.

Why are you so specific about the term "strategy"?

Because it's misused.

And that misuse is a clear and immediate signal that the people doing so simply don't understand what strategy is.

Tactics are the steps you execute in pursuit of the big picture strategy.

When someone talks about manufacturing sales strategy or digital marketing strategy and jumps in anywhere downstream from your market, just run away.

What will it cost?

Good question.

That depends.

Probably in the range of $100K in advisory services over the course of the first year.

Additional resource requirements (staff, technology, etc.) additional.

Applying Manufacturing Best Practices to Revenue Growth

manufacturing strategy should inform business strategy with best practice concepts such as quality control and production planning in application to revenue growth. product quality is an output of the production process, just as predictable revenue is an output of the revenue growth process As customer expectations of B2B industrials evolve, the integration of manufacturing best practices into revenue growth strategies is not just beneficial; it’s essential. This approach requires a holistic understanding of manufacturing strategies, supply chain dynamics, and customer satisfaction. By analyzing successful manufacturing strategy examples from the manufacturing industry, we can glean insights into how these practices can be leveraged to enhance revenue growth.

Manufacturing Strategy and Supply Chain as the Foundation

A successful manufacturing strategy is often characterized by its ability to create a competitive advantage. This advantage is born from efficient manufacturing processes, a robust supply chain, and the agility to adapt to market demands. These elements are critical in ensuring that a business operates at peak efficiency. Just as raw materials are the lifeblood of manufacturing, a well-oiled supply chain is the backbone of effective market distribution and customer satisfaction.

We can apply the same mindset to revenue growth, from buyer research and prospecting, through the sales process and customer satisfaction.

Customer Satisfaction: From Manufacturing to Market

In the manufacturing industry, the end goal is not just to produce but to satisfy the customer's needs and expectations. This principle applies equally to revenue growth strategies. New manufacturing strategies often focus on enhancing product quality and refining production processes. Just in time manufacturing and agile manufacturing are examples of how responsive and efficient production processes can lead to higher customer satisfaction, thereby driving sales and revenue.

Leveraging Innovative Software and Appropriate Technology

In today's digital age, the use of innovative software and appropriate technology is pivotal in both manufacturing and revenue growth strategies. Advanced technology enables more efficient manufacturing processes and offers tools for better market analysis, customer engagement, and sales strategies. Organizations should invest in technology that aligns with their competitive priorities and contributes to their competitive edge.

That's why technology is one of four pillars in my ORE Framework.

Organizational Structure: Aligning for Efficiency

The organizational structure plays a crucial role in executing a successful manufacturing strategy. This structure must be designed to support improvement efforts and foster a culture where companies tend to innovate continually. This same structural approach is essential when applying these principles to revenue growth. Departments must be aligned in a way that supports both the manufacturing and sales objectives of the company. It's critical that marketing and sales are not just aligned and mutually respectful, but largely integrated.

Continuous Improvement: The Heart of Manufacturing and Revenue Growth

Manufacturing strategies are never static; they evolve through continuous improvement efforts. Similarly, revenue growth strategies must be dynamic, adapting to market changes and evolving customer needs. Competitive priorities should be regularly assessed and refined to maintain a competitive edge.

Case Studies and Examples: Bringing Strategies to Life

Manufacturing strategy examples from leading companies in the manufacturing industry can provide valuable insights. These examples often highlight how companies have leveraged their manufacturing capabilities, supply chain efficiency, and technology to not only improve product quality but also to enhance their market presence and revenue.

Integrating Manufacturing Excellence into Revenue Growth

In conclusion, a new manufacturing strategy aimed at revenue growth should encompass a holistic view of the business. From optimizing production processes to ensuring customer satisfaction, every aspect of the manufacturing operation can contribute to a stronger competitive position in the market. By applying these manufacturing best practices to revenue growth strategies, companies can achieve a sustainable competitive advantage and long-term success.

Growth Manufacturing Strategy for Middle-Market Industrials

Strategy is Hard - It's Going to be Wrong Because the Future is...the Future!

Strategy is about where your market is going. Who your buyers will be. What your buyers will need. How you'll deliver that.

Where Your Market Is Going

Who Your Buyers (and theirs) Will Be

What Your Buyers will Need

How You'll Reach Them

Your Products, Use Cases, And USPs Will Change

And So Will Your Buyers

New Product Vitality Index (NPVI)

Buying Habits Change Like Markets

Is Strategy What You Really Need? Want?

It's OK to say "No!"

What's Your Industry Role

Technically Capable

How Strong is Your Position?

Would You Rather Tweak?

You'll Lose People

Do you believe your market is changing radically?