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<td colspan="14" align="left" valign="top" bgcolor="#FFFFFF" ><h1>How To Take On "Good Works" Customer Education Assignments Without Taking It In The P&L.</h1>
<!--#include virtual="/incl.sharethis.html" -->
<h4><span class="default"><b>Software Engineering</b> wants you to
develop an ambitious curriculum to support an oddball new
operating system that they can't even find beta testers for.</span> </h4>
<h4><span class="default"><b>Sales</b> wants you to continue to schedule
courses for a dwindling legacy base of customers who adamantly
refuse to upgrade to your firm's latest release.</span> </h4>
<h4><span class="default"><b>Industry Marketing </b>wants you to develop
a niche version of your systems administration course to suit
the needs of traveling tent shows.</span> </h4>
<p><span class="default">You'd like to help them -- you really
would. But you've got a P&L to achieve. And you'll never succeed
if you take on high risk customer education assignments --
no matter how strategic and noble the cause. So, politely
and diplomatically you say "no" -- and attract a torrent of
threats and character assassination that would make a political
primary seem like a love-in!</span>
<p><span class="default">Next thing you know, the issue gets
elevated and you wind up having to throw resources at a customer
education opportunity that makes another group look good --
but costs you dearly in terms of empty classrooms and declining
margins.</span>
<p><span class="default">Or maybe you're able to hold your ground
-- at the expense of being viewed as a shortsighted stovepipe
who cares more about protecting your behind than supporting
the future of your company.</span>
<p><span class="default">Here's an even worse scenario. You
know that long shot technology you dug in your heels and refused
to support? Guess what, it turns out to be a huge hit, and
you're left standing at the alter while 3rd party training
companies swoop in for the kill.</span>
<h4><span class="default">There's got to be a better way -- and
there IS.</span>
</h4>
<p><span class="default">Next time another business unit confronts
you with an "unreasonable" customer education request, don't
say "no." Say, "great, we'd be delighted to help you! Now
let's jointly see what's the best way to proceed."</span>
<p><span class="default">Then take a page out of the Open Book
Management approach. Explain, simply, the financial ground
rules you are operating under and encourage the other unit
to partner with you and share the risk. Begin by preparing
a simple model of your business like this:<br>
</span></p>
<table cellspacing=0 cellpadding=0 border=0>
<tbody>
<tr>
<td width=30 rowspan=17> </td>
<td class=headtxt align=middle colspan=3><span class=default>MINIMUM
ACCEPTABLE 12-MONTH<br>
COURSE PERFORMANCE MODEL</span></td>
<td width=30 rowspan=17> </td>
</tr>
<tr>
<td width=182> </td>
<td class=bodtxt align=middle width=70> </td>
<td class=bodtxt align=middle width=70> </td>
</tr>
<tr>
<td width=182> </td>
<td class=headtxt align=middle width=70>$</td>
<td class=headtxt align=middle width=70>% </td>
</tr>
<tr>
<td class=bodtxt width=182> </td>
<td class=bodtxt align=right width=70> </td>
<td class=bodtxt align=right width=70> </td>
</tr>
<tr>
<td class=default width=182>Revenue(1)</td>
<td class=default align=right
width=70>200,000 </td>
<td class=default align=right
width=70>100.0 </td>
</tr>
<tr>
<td class=bodtxt width=182> </td>
<td class=bodtxt align=right width=70> </td>
<td class=bodtxt align=right width=70> </td>
</tr>
<tr>
<td class=default width=182>Delivery Expense(2)</td>
<td class=default align=right
width=70>100,000 </td>
<td class=default align=right
width=70>50.0 </td>
</tr>
<tr>
<td class=default width=182>Course Development(3)</td>
<td class=default align=right
width=70>20,000 </td>
<td class=default align=right
width=70>10.0 </td>
</tr>
<tr>
<td class=default width=182>Other Expense</td>
<td class=default align=right
width=70>40,000 </td>
<td class=default align=right
width=70>20.0 </td>
</tr>
<tr>
<td colspan=3><hr noShade>
</td>
</tr>
<tr>
<td class=default width=182>Profit Contribution</td>
<td class=default align=right
width=70>40,000 </td>
<td class=default align=right
width=70>20.0 </td>
</tr>
<tr>
<td width=182> </td>
<td width=70> </td>
<td width=70> </td>
</tr>
<tr>
<td class=small width=182>Assumptions</td>
<td class=small align=middle colspan=2> </td>
</tr>
<tr>
<td class=small colspan=3>(1)<br>
- 500 SW licenses with 20% training participation<br>
- 100 students @ $2000 average tuition<br>
- 10 classes @ 10 students/class </td>
</tr>
<tr>
<td class=small colspan=3>(2)<br>
- delivery expense is $10,000/class
regardless of attendance </td>
</tr>
<tr>
<td class=small colspan=3 rowspan=2>(3) <br>
- $60,000 amortized over typical 3-year
course life </td>
</tr>
<tr></tr>
</tbody>
</table>
<h4> <span class="default"> Then roll up your sleeves and begin
negotiating. Here's how:</span>
</h4>
<p><span class="default">A. SW Engineering wants you to develop
a new course from scratch to support a new software launch.
You question whether they will be able to sell the 500 licenses
you typically need to yield your minimum requirement of 100
students. They totally disagree, and feel that not offering
education will kill any chances they have of succeeding. So
you propose:</span></p>
<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td rowspan="6" width=30> </td>
<td><span class="default"> THEY: </span></td>
<td class="default" valign="top"><p> - </p></td>
<td class="default"> put up $60K (the full cost of developing
the course)</td>
<td rowspan="6"> </td>
</tr>
<tr>
<td> </td>
<td valign="top"> </td>
<td> </td>
</tr>
<tr>
<td><span class="default"> YOU: </span></td>
<td class="default" valign="top"><p> - </p></td>
<td class="default"> agree to promote a minimum of 10 course
sessions</td>
</tr>
<tr>
<td> </td>
<td class="default" valign="top"><p> - </p></td>
<td class="default"> run every session if you get at least
5 participants</td>
</tr>
<tr>
<td> </td>
<td class="default" valign="top"><p> - </p></td>
<td class="default"> return their $60K if you achieve $200K
your first year</td>
</tr>
<tr>
<td> </td>
<td valign="top"> </td>
<td> </td>
</tr>
</table>
<span class="default">B. Sales wants you to offer a high-end
course 10 times a year to appease several key accounts who have
complained about session cancellations. You explain there's
so little demand for this course that you'll wind up teaching
empty classrooms. Sales says you are dead wrong -- and offers
to help fill the classes. So you propose:<br>
</span>
<p>
<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td rowspan="5" width=30> </td>
<td valign="top"><span class="default"> THEY: </span></td>
<td class="default" valign="top"> - </td>
<td valign="top" class="default"> agree to promote and run the course
10 times even if only one individual attends</td>
<td rowspan="5"> </td>
</tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="top"><span class="default"> YOU: </span></td>
<td valign="top" class="default"> - </td>
<td valign="top" class="default"> agree to help you fill each class</td>
</tr>
<tr>
<td> </td>
<td valign="top" class="default"> - </td>
<td valign="top" class="default"> award you $1000 in expense relief for
each participant less than 10 (to cover
your delivery costs)</td>
</tr>
<tr>
<td> </td>
<td valign="top"> </td>
<td> </td>
</tr>
</table>
<span class="default"> The variety of partnering arrangements
is almost infinite. Just don't try and be too creative. For
instance, offering to split all revenue and costs down the middle
could get you in trouble with your company's revenue accounting
people.</span>
<p><span class="default">Will other organizations go along with
your requests for them to open their wallet to offset your
risks? Chances are, so long as you're not too greedy and self
serving, they'll be delighted. Sales, engineering and product
marketing groups spend big bucks on promotion and sales support
-- and they're likely to see customer education as a lot more
tangible and valuable than many of their other sales promotion
options.</span>
<p><span class="default">However, the biggest advantage of an
Open Book Management partnering approach is never having to
say "no." It lets you be a big picture visionary rather than
a parochial sourpuss. In fact, there's no good reason why,
armed with this approach, you shouldn't take the initiative
to go looking for business from special interest groups you
would have previously gone to great lengths to avoid. </span>
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