Most companies have some sales or marketing capability improvement project running every year. Many of these projects however fail to achieve their desired objectives. Processes are created but not used. Dashboards are published but not leveraged. Training is imparted but does not substantially change organizational behavior. Our experience and analysis of such projects reveals that there are primarily two reasons for these projects falling short of their desired goals. (a) Many of these projects do not approach the capability development from a holistic perspective and (b) the capability development model applied is generic and not sensitive to the differences between demand generation activities and other parts of the organization.
What then is a capability and how does it apply differently to demand generation activities than say supply chain or finance? In our experience, here are the key components of a demand generation capability:
- Process – Managers in demand generation activities do not respond very well to the step-by-step rigid process definitions that are more appropriate to other parts of the organization. They respond best to the combination of a framework organized by decision gates, managed by metrics and learnt through success models that clearly illustrate stories of what worked and did not.
- Skills – The process is only as good as the people driving it. In driving demand generation decisions there are four key components that are important – consumer focus, channel focus, data foundation and creativity. Good demand generation case studies typically demonstrate superior application in all of these components.
- Knowledge and experience – While experience is a function of time, it can be fast tracked by some form of shared learning on case studies. Some companies also use a carefully managed mentorship program that better leverages the knowledge and experience of its people.
- Supporting Infrastructure – The role of the supporting infrastructure is to make the demand generation capability efficient, scalable and current. This can be achieved through technology, centers of excellence and other such enablers.
When you set out to build a better demand generation capability in the areas of say innovation or insights or branding, it is advisable to consider all aspects of the capability and to develop a programmatic approach that incorporates all aspects of the capability. It is also important to account for the significant collaborative and creative nature of demand generation activities and create capabilities that inspire change rather than enforcing it.
