By Pat Hinds
A couple of years ago, I read lots of books about Jack Welch; I would like to share some of the quotes that played a role in the development of POIM’s Strategic Vertical and Account Selling methodology:
“When you’re number four or five in a market, when number one sneezes, you get pneumonia. When you’re number one, you control your destiny. The number fours keep merging; they have difficult times. That’s not the same if you’re number four, and that’s your only businesses. Then you have to find strategic ways to get stronger. But GE had a lot of number ones.” Jack Welch
A fundamental concept behind strategic vertical selling is the commitment to measure success against market share using vertical versus product sales. It is a company’s progression from being deal-focused to having a commitment of being #1 in market share within a strategic vertical.
Quote Two: “Don’t focus too much on the numbers. Numbers aren’t the vision; numbers are the products.”
Strategic vertical selling is having the faith that if you achieve market share growth and maintain your #1 status in a market, you will generate the profitable revenue required to grow your business. Companies that are not focused on market share measure progress only on individual product sales. This leads to a situation where companies might hit revenue targets, but they are not in the number one postion making them susceptible to the actions of the “number one” in the market.
The concept of being number one in a strategic vertical is easy to understand and its value is hard to dispute. It is the commitment to the process that is difficult, as companies need to have faith in their products, processes and customers.
Source of quotes.
Topics: Business Intelligence