Selling Packaging to Your CEO
By Chaille Brindley
Date Posted: 10/26/2006
Updated by Rick LeBlanc 2006
Editor’s Note:
Paul Russell of Hewlett-Packard Co. believes his approach to “Selling Packaging to the CEO” is still useful today, some 5 years after his insightful conversation with Chaille Brindley about how packaging professionals could be successful in obtaining the executive sponsorship critical to driving the success of corporate packaging programs in the face of uncertainty and rapid change. “The selling to the CEO was successful in that we obtain an executive sponsor which helps build a corporate team to drive improvements and leverage the great work being done by the divisions,” Paul reflected. “There have been a number of re-organizations and with each we would need to re-sell the value to maintain the executive support. There are more changes ahead for us and how we manage packaging but the fundamentals of obtaining support are the same as they were 6 years ago.”
Paul Russell has packaging on the brain. But not everyone at his company shares his passion. Mr. Russell, Packaging Program Manager at Hewlett-Packard Co., believes the world is made of up two kinds of people — those who understand the value of packaging to a company and those who do not.
Hewlett-Packard (HP) has reorganized to become more process-focused, and packaging has been one of the first areas to undergo the metamorphosis. During the process, HP’s packaging team has had the opportunity to sell other departments and executives on the value of packaging to the entire company. In an interview with Unit Load Management, Mr. Russell outlines the strategy used by HP’s packaging department to sell key players on the value of packaging.
According to Russell, the first step is to identify the community of people and departments that will be affected by packaging. You must figure out who’s who, what role they play, and in what functional area they report. Key organizational contacts should be identified and process interactions should be explored.
As a project moves forward, the community must be kept well informed. Different approaches include newsletters, Web conferences, e mail communications and phone interaction. Effective communication will enable the community to develop a “Core Identity,” which keeps everyone’s eye on the same ball and encourages mutual self respect.
COLLECTION OF IDEAS
As the interested community is defined, data must be gathered to develop a basic understanding of the company environment. The following are some foundational questions that need to be answered:
• How many people are involved in packaging (engineers, procurement, regulatory, logistics, customs, etc.)? Where do they report?
• How much does the company spend on packaging?
• What percentage of cost of goods sold (COGS) is packaging?
• How many vendors are in the picture?
• Are packaging buys centralized or decentralized and why?
• Has the company done any bench¬marking?
Don’t spend a great deal of time collecting the above information. Just get enough information to be able to characterize the situation. A 70% solution allows quick decisions. And in some corporate environments, waiting to develop a perfect plan can bury a program. All this may be difficult to communicate or sell to a manager on the value of those activities. In that event, try to build a case to see if you can capture metrics on which are important to the success of your company.
COMMUNICATION PLAN
Over communication is impossible. This is particularly true with packaging engineers who want to be kept informed about everything. Communications must be engaging and vivid while at the same time simple, consistent and realistic. Develop a clear “end state” vision that describes the desired outcome. This must be something people can understand and believe can happen. Focus communications on quick wins to prove your point and retain support.
When approaching upper management, keep in mind that they are not likely to have an appreciation for packaging. Therefore, they will lack understanding of packaging’s interplay with other functions in the company and the impact on the bottom line. Other challenges may come from self preservation and the concerns about negative personal implications/repercussions if they support the wrong thing. Others may be resistant to change or are fed up with unfilled initiatives. Some of you may be asking why doesn’t management get it. Well it is quite simple — They Can’t. They are unaccustomed to or uninterested in packaging and in most cases not analytically or systems oriented.
In traditional organizations, upper level managers are in charge of their own kingdoms. Each organizational unit manager guards his turf and interjects opposition when it looks like their power base could be eroded. Packaging is unique because it interacts with all these kingdoms. The packaging department performs many roles depending on the situation and need (messenger, service provider, consultant, spy, etc.). To be successful in communicating with all these different kingdoms, you will need to understand and appreciate the value of SPIN control. When it comes to packaging, you will need to spin the information in such a way so each decision-maker can understand how important packaging is to his department/responsibilities.
It is always good to think about what kind of issues senior executives wrestle with on a daily basis. Upper level management has only a broad exposure and understanding of the day to day operations and activities around them because they are bombarded with so many different issues that need their attention.
There are four major motivational forces behind a person’s decision — money, ideology, conscience, and ego (MICE). These same forces also motivate managers in the decisions they make for your company. Any one of these is a potential driver for executives, the tough part is figuring out which one. This is where profiling comes into play. Looking at past decisions, try to determine the motivation behind it. This will tell you how to structure your initiative or idea. When selling up, demonstrate how your idea will allow the person you are trying to influence achieve at least one motivational factor.
Technical jargon must be translated into language familiar to executives. Many executives use MBA terminology so if you don’t have an MBA, pick up a book on the subject and examine the style and language. For example, there are myriads of measures you can describe, all of which can be set up as internal or external measures (customer feedback/perception). These should be framed with the following MBA terms:
• Cost (ROI, ROA, inventory, unit/material cost, scrap, logistics, etc.)
• Quality (defect rates, customer returns/perception, reliability, audits, etc.)
• Service/Efficiency (cycle time, time to market, turn around time, surveys, etc.)
• Safety (OSHA reportable, lost work days, ergonomics, customer feedback, etc.)
When writing a presentation for executives, focus on the big picture not the details. One way to test this out is to try the elevator speech test. Imagine the CEO just got into an elevator with you. He asks what you do and inquires about current projects. You only have his attention for a few floors. Can you explain what is most likely a very complex issue in simple terms and in a short amount of time? Position your presentation and request as an easy win or sure thing and try to exude confidence. This is important, as it will help them become comfortable in trusting you. It is much easier to get approval and support if they can clearly see what is in it for them — MICE.
One way managers evaluate and prioritize projects is by comparing effort vs. impact. Impact levels can be described as profit/cost/ROI, customer satisfaction, strategic, initiative, technical, and crisis. Effort levels can be described as duration, resources required, span of control, technology, and skill required. If you structure your presentation or request to appear to be low impact or urgency, but requiring a high degree of effort, you’ll never get it approved unless you have some really good MICE.
TIMING & TARGETING THE PITCH
Start off at the lower levels and find common bonds and issues to rally around. Good things (projects, benefits, success, etc.) float up the chain of command and sometimes so do the people. The higher you go in an organization food chain, the more information is controlled. Managers and administrators under executives help shape the world executives see. Befriending these gate-keepers and meeting their MICE needs can make it easier to get access to executives.
During this process of building a support structure, you will likely come across an individual who “Gets it” and can help carry the ball forward. This is not the time to become greedy for recognition and power; if you are successful, it will come later. A champion will most likely have a higher success in advancing an idea upwards because they normally operate in these domains and understand how to navigate difficult terrain. If you are fortunate to have a number of possible champions to choose from, select one that you feel can appreciate the value of packaging and will help carry you up with them. It doesn’t do you much good to align yourselves with a “cut and run” type individual, as they are likely to upset other managers and leave you holding the bag.
Support champions by giving them a good understanding of the foundational elements and help them develop their presentations. As support grows for a packaging initiative, focus on some quick win projects or “low hanging fruit” which reinforces support within the company. Finally, communicate these activities and events to the community and identify the champion as the driver. This leads the champion into having a higher appreciation for the community & function and will defend it more passionately in hard times. Don’t think this kind of “support” doesn’t go unnoticed by other executives. If for some reason your champion retires or moves on to another company, the other executives will spar to take ownership.
SUSTAINING THE MOMENTUM
Once the green light is given for a project, how can you keep the ball in play? Formalize clear roles and responsibilities and assign distinct accountability for each individual. Get a set of agreed upon deliverables and objectives from everyone and publish the schedule. Track progress and identify where additional support is needed. Clear communication will keep the project going. Hold frequent meetings or teleconferencing and allow for clarification and articulation of ideas and concerns.
As a project moves forward, you will face numerous challenges and failures that will challenge original perceptions. Flexibility can make the difference. Observe surroundings as business conditions and organizational structures change. Make necessary changes but do not pull up short and wait for more information. Continue to move forward and make decisions based on the best information you have at the time. A delay may kill the momentum and bury the project. Document the positives and sharing them with the community because others will be asked to explain the failures. It always helps for everyone involved to be armed with the positives to combat any negative reaction within the company.
The key here is maintaining momentum because nothing succeeds like success. Early results will get the fence sitters in the game. Increase your exposure by inviting others in your organization to see your work or by putting it out in a public area. One very successful idea, used by HP’s Home Products Division is a miniature packaging expo. The packaging department setup display tables in the cafeteria.
Suppliers came up with concepts and package samples for products. This really opened some eyes. The mini-expo had general managers and numbers crunchers asking questions and dragging marketing managers over to check it out said Russell. An open house is another useful educational tactic. The key here is to get people thinking about packaging as more than a bag or box.
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