I was in a recent LinkedIn discussion that referred to Sales and Marketing customer as being the internal organization and their role was to optimize the throughput of the observation. The sales and marketing role was further explained in the terms of takt time based on optimal production of the organization. The goal of sales is to keep the factory optimized?

I respectfully disagreed based on this reasoning.

You can (maybe) do that if you have excess demand. You can then try to improve efficiencies. However, most of us live in a world that supply exceeds demand. It is not about getting rid of waste. We have excess capacity. Tell me a company that won’t accept more prospects into their sales funnel or are refusing orders. In sales and marketing you have to drive revenue. I believe that the role of continuous improvement and Lean lies in this area versus the area of waste.

I have a problem understanding applying takt time in relation to sales and marketing. Theoretically, it sounds great but in actuality how does it apply with Takt Time= Net Available Time per Day / Customer Demand per Day. Who determines the acceptable and projected Takt Time for sales and marketing? Is customer demand determined by the capacity of the operations? Or is it by market share?

How can you have takt time without customer demand? Can an internal measurement be relevant to sales? If it is the measurement that we force sales to use, it is not a Lean process. We are pushing in lieu of pulling. Pull comes from the marketplace and is one of the principles of Lean. Holding sales and marketing to an internal measurement that has little if any meaning to the marketplace or the customer confuses me. The fundamental question could be what the marketplace demand is and what our percentage of that market is. That leads into the questions of retention and acquisition. Setting targets in those areas would drive the process of sales and marketing, innovation and hold operations accountable to a realistic level.

The metrics we have been traditional using are based on an economy with excess demand. Since we live an economy that has excess supply, fundamental beliefs must change. Sales and Marketing does need a process for improvement but it is one that must be created from the marketplace and I actually believe the principles of Lean are best suited for that journey.

Another wayward thought or the truth about Process Improvement in Marketing?

I came across a blog post by Brad Powers (a recent podcast guest) on the Harvard Business Review, How Marketing Can Lead Process Improvement. In reading the post the communication with customers seems to be orchestrated. As a result, the examples discussed seem archaic and more an extension of a command and control function than one of empowerment. It left me wondering if there are examples of sales and marketing teams that are being empowered.

Just calling something continuous improvement does not mean that it is. Continuous improvement is not a series of pilot tests and deployment. Rather it is empowering your workforce to practice it every day. In modern organizations it is the practice and the power of continuous improvement that is driving results. Factory workers, Software Programmers and Health Care professionals, to name just a few are being empowered as problem solvers and knowledge workers. I would think that the sales and marketing structure should be leading the way versus being the laggards.

There is not a more important function in sales and marketing than the ability to share and create knowledge with your customer. In the 3 examples given in Brad’s post, I see the key terms optimize, experiments, research versus words like cooperation, co-create, community and surprisingly “value”. I see that heads of marketing need to spend time with employees rather that interact with customers. What’s wrong with spending time directly with customers?

There are companies doing this. A good example is many of the gaming companies that interact regularly with their players. They are highly influenced by the top players and not only seek their opinions but join in and play with them. The players I have discussed this with are amazed at the access they have to top management. Other examples include SalesForce, BMW, Lego, Kraft and P & G.

A customer does not realize any value from your product/service till he uses it. When you view your product/service as an enabler of value creation versus the center of value than you can see how increasing knowledge flows between you and your customer is at the center of sales and marketing. Value is an input to your company not an output. There is only one person that determines the value of your organization and that is the customer. I think many continuous improvement methodologies have hijacked the term customer. It is not an internal person. The customer is the person that purchases and uses the product.

When viewing Lean and PDCA as a knowledge creation vehicle versus a waste reduction tool, Lean becomes applicable to sales and marketing. Without this understanding, I see little hope for Lean in the sales and marketing process.

Related Information:
In love with your products more than your customers?
The Service-dominant Logic of Marketing: Dialog, Debate, And Directions
If all of us need to be marketers, what’s the framework?
7 Principles of Universal Design & Beyond
The Common Thread of Design Thinking, Service Design and Lean Marketing