The times are changing

It is amazing how much industries have changed over the past 10 years.

I remember when I started in the beer business, people used to talk about the good old days when the expense accounts were high and sales people entertained for a living.

Things changed rapidly when the industry started to lose volume and margin when consumers started trying new adult beverage products or converting to wines or spirits.

Expense accounts were cut, middle management layers were cut, and many more metrics were added to the business.

The pharmaceutical industry then followed suit shortly after.

Multiple sales people from the same company calling on doctors offering lunch, dinner and all inclusive travel to guest speaking engagements were the way that business was conducted.

Sales reps were thought to only need to work between the hours of 10-2p.m and still be able to meet company expectations.

The day of reckoning came for the industry when the cold reality of reduced corporate returns when drugs came off patent, as well as an increased costs of research and development and new government legislation.

Now we are starting to see the curbing of care free spending in high growth and high margin areas like the technology industry.

The life cycle for products is becoming so much shorter that companies now need to transfer marketing and customer spend to other areas in an attempt to save funds for future security.

In all of these industries there are people that were able to adjust to this change and people who could not.

The ones who could not are typically ones that have a personality/skill set that is comprised of one or more of the following features.

1.

Sales Schmoozers who rely on personality rather than business acumen and metrics.

2.

Cheerleaders who marshal a team but are disconnected from customers because either the business has moved past them and they can no longer relate in a relevant manner to customers, or they no longer possess adequate business development skills which are now essential in any executive role and not just and lower levels.

3.

Paper Pushers are the corporate process drivers who drive process regardless of whether it is truly benefiting the bottom line of the company.

These people sometimes have trouble distinguishing what is essential, fiscally responsible, strategic or efficient.

Their commitment to policy and making sure process requirements are met, often find them caught off guard when they are packaged out of a firm during lean times.

These people are usually decent at their job but the reality is that their job is no longer as relevant in the new lean world.

Regardless of what industry you are in, do not find yourself personally identifying with any of these profiles, otherwise, you may be visited by a member of your human resources team in the near future.

Farewell,

Mike