Developing Through Adversity

Every organization will go through adversity. Whether big or small, adversity is one of the absolute key components of innovation and development. But how, exactly, can we successfully navigate ourselves and our organization through adversity? All organizations are different. They have different ideals, brands, cultures, services, philosophies, and the list goes on. However, to navigate tough adversity, there are a few steps that can be applied to any organization and industry to facilitate development through tough challenges.

 

Step 1: Define Situation

    When Alan Mulally took over as CEO for Ford Motors Co., Ford was looking at possible government bailout. Ford Motors Co. was deep in the red with almost $13 billion in liabilities. When Mulally brought his team together to discover why the situation was so dire, his team members refused to report any failure. This is the first lesson in turning an organization around, if no one admits there is an issue, nothing can be fixed.

    Fortunately, after weeks of consistent effort in pinpointing issues within the organization, one of his members acknowledged that his division was facing major challenges that could hurt Ford Motors further. Mulally had finally found a place to work in and acknowledged the executive in front of all his other members. This established the second lesson in developing an organization through adversity: Open communication without blame will target the problems.

 

Step 2: Assemble the Core

    Once you have established that the organization requires a turn around, leaders must find a delicate balance of key people to move the cause forward. This is perhaps the most difficult step. The correct group of people must be influential enough within the organization to make a difference. They must also willingly change organizational behaviors. The core group must include a balance between change agents and established executives.

    As a leader, your objective is to merge this group of individuals into a team. This is your core. It will be entirely up to your leadership style how to best create the team culture, however, what you create here, will eventually spread out through your organization, so beware.

 

Step 3: Sense of Urgency

Why would your team want to take action? Why should your team take action now? This is going to be very specific to your firm and your situation, however the idea is the same: create a sense of urgency! Underperforming teams always have similarities, one of them is procrastination. A sense of urgency will create a must-do attitude. This is where leadership will shine.

Under pressure, we often reveal our true selves and values. Leadership is never more important than when the balance between an ethical or unethical decision hangs on the edge. Leaders’ responsibility in creating a sense of urgency is followed by bringing out the best in the team. This is the true measure of leadership. Can you advance your organization without compromising your and your team’s integrity?

Bringing out the best in people under a sense of urgency doesn’t have to be complicated, but it requires your best.

Step 4: Master the Vision

Create, share, and empower others towards a strong vision. You have acknowledged a situation within your organization, you have assembled a strong core, and you have created a positive sense of urgency, your organization is now ready to turn around and push through its current circumstances. However, how will you know if you’re being successful?

Establishing a strong and tangible vision for the future of your organization will give you direction. The vision is the most vital step in moving forward. The vision must be so powerful, that it must move your team to lead or follow towards it. Once you’ve created your vision, give everyone in your organization the power to share it constantly.

 

Step 5: Set Goals, Schedule Victories

    To achieve your vision, you must break it down into small achievable goals. Add a realistic deadline and begin accomplishing them. I always suggest creating goals that are action based instead of results based. This gives you power and control over achieving it instead of others. For example, if you want to grow sales, make the goal to contact x many people, instead of getting z many sales.

Small goals achieved by a deadline will give your vision credibility and start one of the most important factors of successful organizations: Momentum. Momentum gives strength and power to you, your core, and your organization. Momentum is the X factor in moving from small victories to medium victories to eventual major victories. This is how a culture of winning is established.

Step 6: Analyze and Implement

    As time progresses through your turnaround efforts, there will be changes in the way things are done. These changes can be organic, organized or established. Keep track of the changes you see. The more information you can keep track of, the better reference it will become. Lessons learned within organizations are a major factor in development.

    Once you consistently have a core team successfully moving the organization towards a vision, results can begin to be analyzed. What has worked the best? What hasn’t given results expected? With these answers you can begin to reshape step 5 for necessary changes and begin implementing processes that have proven successful.

 

 

    By 2010, Alan Mulally, former Ford Motor Co. CEO, had pushed profits to the highest they had been in a decade ($6.6 billion). When Mulally left Ford Motors Co. in July of 2014 he had created such a culture of winning, FY14 Q2 marked its 20th consecutive profitable quarter ($1.3 billion). This major turnaround was all accomplished without federal bailout money.

    As leaders, adversity gives us the opportunity to grow leaner and stronger organizations towards innovation. Where you finish after the struggle is in large part based on your vision and your ability to share it with your core. Breaking down your vision into manageable action-based goals will create momentum and a culture of winning. Remember, your integrity will always be the most valuable asset you bring as a leader and many times a key deciding factor in the future of the world.

Diego M. Silva Aceituno, Managing Partner


    

 

References:
 
http://www.success.com/article/john-c-maxwell-4-ways-to-help-your-team-surge-forward#sthash.gRvMqlbB.uxfs
http://corporate.ford.com/investors/reports-and-filings/quarterly-reports.html#/2014
 

 

Strategic Commerce Partnership Struck

Silva Aceituno Group - Global Development Experts - Port of Houston TXThe Silva Aceituno Group Partners with Containerization Firm

 

Houston, TX, January 26, 2015– The Silva Aceituno Group, a Lynchburg, VA based firm, has come to an agreement with long time vendor/client D. Equipment Repairs, a major containerization firm for the port of Houston.

“We’ve worked with Dirk and his team for many years. Creating a partnership was a natural step to provide higher quality deliverables to our clients and provide better analytics for D.E.R.” – Diego Silva Aceituno

By integrating a strategic logistics point, all international clientele for The Silva Aceituno Group will have access to priority loading and wholesale pricing for 20, 40, and 45 foot containers. Additionally, The Silva Aceituno Group will be able to provide a wider range of consolidation options while lowering the overall cost of equipment storage.



This partnership goes along with Diego Silva Aceituno’s plan to create strategic international commerce waypoints throughout the United States, specifically targeting firms that can provide consolidation, equipment repairs, and containerization. Houston, Texas marks the first of three targeted locations for FY 2015. It is expected that this year will also include a partnership with both an East and West Coast firm.

# # #

The Silva Aceituno Group is a global development firm specializing in serving ethical and sustainable businesses from around the world through business development, capital assets, and international commerce. We strive to provide an industry standard in service quality to nations developing infrastructure and raising the standard of living.

New Market Penetration Strategy

We live in a world of abundance. As new markets emerge and young markets become established , it is the ethical and sustainable firms that must lead the charge to set the standard in local, domestic, and global capitalization. To do this, you must be willing to enter new markets.

Creating a New Market Penetration Strategy (NMPS) is faster and simpler than most business owners think. You can do countless and thousands of studies before committing to entering a new market, however, it will ultimately come down to your product/service’s ability to stand out – as it should.

Step 1: Defining the Goal / Purpose

If your business has nothing offer of value to the market, it is best to decide on a different business development strategy. Here is our goal for the latest market we’ve entered.

Goal:    Create valuable, loyal, & ongoing partners, in which we provide ethical and sustainable services to create a long lasting impact on Global Development.

Step 2: Define Boundaries & Territory

For you to enter a new market, it will require someone to sell into the market. Unless the client comes to you first, you will have to make the initial contact. This requires for you to know your boundaries. In The Silva Aceituno Group’s (The S.A.G.) case, A Global Solutions Firm, we’ll be utilizing continents as territories.

  • Latin America
  • North America
  • Asia
  • Europe
  • Africa
  • Oceania

Note: that we separate Latin & North America due to the vast difference in services provided (North America is domestic market which allows us to sell BD services). The order listed should be prioritized based on strategic client orders, by volume of sales, or if easier, by desired volume of sales.

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Step 3: Define Strategic Requirements

Whether it’s a product or a service, your firm should choose cities that allow for easy implementation of your service first. In The S.A.G.’s case, our strategic requirements would be:

  • Big cities (which will have the most population need in restoration and overall development).
  • Free Trade Agreements
  • Ability to send directly to Port
  • No language barrier

 

Step 4: Choose Strategic Targets

Which cities, regions, countries fit your requirements? To start out with Latin America, The S.A.G. would choose 3 countries in which it can provide services through a Free Trade Agreement with the domestic country, in our case, The USA. The target country will be:

  • Chile – established economy
  • Peru – establishing economy
  • Colombia – emerging economy

 

Step 5: Create Action Based benchmarks

Ultimately, you cannot control your clients nor your results. All you can control are the action taken to give way for results. This means that to get results, we must create actionably goals. Want to go from 0 sales to 100 sales? Here are samples The S.A.G. has:

  • Take South American sales from US$5 Million to $8 Million.
  • Open Asian Markets to sales worth $1 Million.

To know how to convert sales, you must have a sales process. Don’t have one? Don’t worry, we’ll cover how to make one soon. Here is ours:


With this process in mind, our goal action steps to more sales is creating qualified proposals out into the world of prospects.

Our data has taught us 1 thing: for every 12 qualified proposals, we get 1 sale. That’s about an 8% conversation rate. What is your company’s conversion rate? Think of how many estimates/quotes/proposals you’ve put out compared to how many sales (correlated to those numbers) you’ve won.

Conversion rate = proposals created and submitted x 100
                                           number of proposals won

Step 6: Action Plan

Reverse engineer your sales process. For a total of 8 sales, we’re looking at an estimated 96 proposals necessary to complete. So for The S.A.G., 100 sample contacts will give us the following results.

  • We expect around 70% open rate thanks to our customized high open emails (separate article). 100 emails will result in 60-70 opens.
    • An additional 22% will open polite and consistent follow ups (total 92%/92 opens)
  • Of the initial 70 opens, 55 will be interested in more information (55 appointments)
  • Of the 55 appointments, you can expect that around 2 in 3 will be qualified: 36.7 qualified
  • Submit 36.7 qualified proposals

Do this 3 times over your target demographics and we’ll reach our goal of 96 proposals.

Step 7: The secret to Market Penetration

As we’ve discussed so far, market penetration can be achieved for little by any firm willing to put in the work. However, the biggest factor in marketing is the combination of emotional attachment and repetition. Consistency of the right actions, the secret of business in general, will win out even in the most impregnable markets.

Follow these 7 steps to have a simple strategy ready to be implemented. The overall goal is to create a guiding strategy that will aid you in market development. This combined with consistency will break through metropolitan markets. The key to moving business forward is anticipating the next step and executing it aggressively. After you have a strategy all you truly need is either a prospect or a lead (depending on your sales process). Thanks to the strategy above, the hard part is over as you can easily find international prospects and turn them into sales (next article) utilizing your strategy.

Has your firm tapped into new markets in the recent years? What have been some of the best lessons learned you learned? We always enjoy thoughts on important global landscape changes. Subscribe to receive our next article on generating prospects and leads.

Very Bests,

Diego M. Silva Aceituno, Managing Partner

The SAG Logo

 

 

 

 

Happy New Year!

    As we come to a close to 2014, we look back at a year that was full of accomplishments and joys for our clients, our family, and our firm. A year that required tremendous efforts and gave tremendous achievements.

    In 2014 we congratulate those who started new businesses, new lives, and new families. We congratulate those few titans of industry that grew ethically and closed the gap to sustainability. We congratulate our new clients on trusting their business development to us. We congratulate our continuing clients, whom this year grew faster & leaner than all the previous years of service we’ve offered. And we congratulate our former clients, who have come, grown, and gone into new levels of success – we look forward to serving you again.

    2015 will bring new and exciting challenges that will, always, give us opportunities to improve the world. It has been our privilege serving you in 2014. We wish you, your family, and your businesses – a happy and prosperous New Year.

Very Bests,

Diego M. Silva Aceituno

Driving Economic Development: Small City Guide

Washington, DC

The fundamental question(s) millennials face: “who am I and how do I fit in?” is the same for businesses, cities, and their developers. The American forefathers entrusted us the single most valuable liberty: freedom to pursue. Whatever the endeavor may be, in this country you have the opportunity to pursue it. If red tape disrupts that pursuit, you have the ability to change it. To an individual, this could be a simple or complex choice, that’s no different for a collective thought of administration.

 

The first choice every single entity has to make is: what type of entity do we wish to be? I know, an abstract question, yet if broken down, the importance is incredible. What it fundamentally asks is: 1) how will we provide a service or product? 2) How will we handle incoming and outgoing requests of all types? 3) Where are we going with this? 4) Why does it matter?

Over the past decade, we’ve seen hundreds of different cities flourish worldwide. With time, global developers, economists, and strategists have been able to obtain more statistics to better understand: upwards trends in cities, labor correlation with stability, and new business (including industry) creation. Most importantly, 2013 marked a key global shift of economic powers that, with proper strategic development, will benefit small cities and stabilize growth in developed and underdeveloped countries.

Development 1: Any city can transform given the right strategies

However, economic development directors beware: competition for development will be tougher than ever before. For the first time in history, there is an abundant transparency and availability of knowledge. In large part due to big firms creating free in-depth reports to stay relevant and obtain government and fortune 500 fishing licenses. Meanwhile small firms use these very same reports in guerilla marketing strategies taking smaller clients. Corporations have separated their divisions into fiefdoms competing for larger budgets and (overall) more resources. Instead of united companies, we are seeing confusion and corporate red tape. Without quick decisions, opportunities pass. This makes for an imbalance in the market place between firms, which in turn, it begins balancing opportunity costs amongst private and public.

Fortunately, this is exactly why, right now is the apex of development opportunities. For all strategic development experts, this isn’t just good news, but the great equalizer… a blank canvas. The only ones who can survive these turbulent, yet stable, markets are those who wish to share the knowledge. It’s a new generation of thinking where the experienced are bringing together all the knowledge that has been accrued for a higher understanding of sustainability in society.

    To establish development in a city, there must be three main focuses with multiple sub focuses that aid the main points. All of them, gearing towards ethical & sustainable futures.

  1. Industry: A city should have a minimum of three major corporation in the city’s chosen industry. Preferably, there is a diverse balance between multiple sectors to maintain stability when one of the industries is feeling a recession. It would be ideal to establish opposing industries to counter balance any negative side effects of economic fluctuations. Here is the key to understanding the city’s sense of ‘self’. Whatever items separate the city from the rest is a competitive advantage. Whatever items are the same as other cities, is the equalizer.
    1. Safety: Is it safer than the rest? This is geared towards underdeveloped cities. Making safety a priority allows for private trust.
    2. Infrastructure: Is there possibility for growth? Where will

 

  1. Entrepreneurship: There seems to be a large misconception between small business owners, startups, entrepreneurship, and innovation. What I’m referring to is the latter: innovation. The word has been so widely overused since social media service companies popped up everywhere, that it has lost its meaning. Entrepreneurship means a city’s dedication to encourage a sense of urgency to create, develop, and improve products and services that will benefit the sustainability of the city. The emphasis should be on scalability for other similar cities that can benefit from the same project. Additionally, the city should be encouraging the development of businesses headquartering locally.
    1. Technology: What technology will make the life of residents better?
    2. Industry Resources: How can we obtain raw material efficiently and effectively?

 

  1. Education: Understanding that as a city, your clients are the ambitious minds of your residents and of prospective residents. Your job is to inspire within. This is likely, the most challenging aspect. Education refers to schooling and societal maturity. Socioeconomics has taught us one thing above all else- your socioeconomic status is a larger determining factor for your future than any other component. In other words: race, sex, heritage, ethnicity, or any other profiling item than can segregate or separate groups is secondary to socioeconomic status. Why? Education received. This also explains why some of the greatest minds and talent have come from some of the worse and poorest neighborhoods in the world. Read: If you’ve overcome to achieve outside of where you started, with the proper instruction (internal or external) you are likely going to continue doing so. Hope, at its core, is a very powerful mental tool. Can education teach us ambition, hope, and diligence?
    1. School cooperation: What type of thought leaders can instill future growth perspective to students?
    2. Credibility: How many of the students are growing to become productive members of society and its city?

The implementation process is, naturally, never a simple effort when a single city can have millions of citizens. It all comes down to resource availability. These resource include but are not limited to: technological, marketing, financial, human, platform, and other less quantifiable resources. Entrepreneurship is a delicate mix between education and enterprise. It’s the product of pairing industry with understanding a better tomorrow. If you have the choice to start somewhere, entrepreneurship is the fastest growth opportunity and possesses the biggest impact.

How does your development strategies integrate with overall global development? Have you used any other methods to create growth in your community, firm, or administration? Leave comments with any thoughts, questions, or ideas.

 

Diego M. Silva Aceituno, Chief Executive

Eligiendo el Mejor Intermediario Estratégico

Eligiendo el mejor ejecutivo estratégico de negocios internacionales puede crear la diferencia entre ventaja o desventaja competitiva.

    Una estrategia internacional es necesaria para prosperar en las economías modernas. Uno de los componentes más importantes de negocios internacionales es el intermediario estratégico – un ejecutivo de negocios internacionales. Las ventajas de escoger un intermediario estratégico de comercios internacionales son numerosas. Entre sabiduría de mercado, red de contactos, entendimiento de papeleo internacional, y comprensión de estrategia empresarial un intermediario puede ser sus mejores aliados de negocios en territorios extranjeros, o, podrían ser un golpe devastador para sus operaciones. Nosotros, en The Silva Aceituno Group (The SAG LLC), hemos buscado las mejores maneras de evaluar a estrategas globales para que usted pueda hacer negocios en paz y obtener una gran ventaja competitiva. Cada estratega, intermediario, agente, o ejecutivo de negocios internacionales es diferente, este artículo se enfocará en una simple manera de calificar a intermediarios de acuerdo a las mejores prácticas universales.

    Los mejores ejecutivos de comercios internacionales:

Tienen Afinidad Cultural: Entendimiento de más de una sola cultura y comprensión de negocios del país proveedor son características esenciales. En Marzo del 2014, la revista The Economist escribió un artículo titulado Sumergiendo Esperanzas, discutiendo que compañías invirtiendo en diferentes mercados emergentes han sido un fiasco. Grande razón pertenece a la falta de comprensión de la cultura local. En este fenómeno de incompetencia, expertos autoproclamados han causado billones de dólares en iniciativas fracasadas por falta de entendimiento cultural. Aplicando etiqueta empresarial domestica no es suficiente para obtener acuerdos internacionales exitosos. El mejor intermediario tendrá una profunda comprensión de las éticas, los manierismos, y el comportamiento cultural.

Son Competentes: Como prioridad, es mejor elegir un ejecutivo de negocios internacionales. Ejecutivos usualmente dan la cara por una compañía cual tienen a un equipo experto en mercancías, flete terreno, flete marino, logísticas, estimaciones, programación, consolidación, cargamento (a paleta o contenedores), inspecciones, y adeptos a lenguajes involucrados en el proceso. La mejor empresa tendrá un pequeño equipo dedicado específicamente a su compra, venta, o estudio internacional. El gerente de proyecto usualmente coordinara fechas y establecerá comunicación.

Proveen Información Abiertamente: Los mejores intermediarios estratégicos internacionales son profesionales cual no pierden tiempo en esconder costos adicionales. Cuando uno pide un estimado, ellos entregan un paquete entero cual incluye especificaciones del producto comprado, fechas de entrega, costos fijos (Ej. Logística, fletes, impuestos, etc.), costos opcionales (Ej. Ciertos tipos de seguros, inspecciones, negociaciones, etc.), y comunican las expectativas del mercado (Ej. Pueden sugerir, con base en las tendencias de los precio de bienes, si es conveniente comprar o esperar).

Ofrecen Diferentes Contratos: Para beneficios mutuales, el mejor agente internacional ofrecerá distintas posibilidades de acuerdos. Esto debiera ser financieramente beneficial para usted y eficaz del tiempo del agente. Aquí hay tres ejemplos de diferentes tipos de contratos:

  • Contratos con Anticipo: Para empresas que ya conocen sus requisitos, donde obtener sus requisitos, y como pagar directamente al proveedor del requisito y solo necesitan ayuda en la entrega de producto o servicio (logísticas), un contrato anticipo es la mejor manera de ahorrar dinero. Contratos anticipos se pagan por un estimado de horas.
  • Contrato a Largo Plazo (Desde 6 a 12 meses): Este tipo de contrato convierte a su agente como representante de su compañía. Usualmente esto se reserva cuando una presencia física es necesario en alguna ubicación. Adicionalmente es conveniente firmar un contrato a largo plazo cuando espera hacer más de una compra en montos de sobre los US $500 mil.
  • Contrato Sobre Compra: Este es el tipo de contratos más comunes que existe y usualmente no es necesario firmar un contrato ya que es aceptado como la norma. Los mejores intermediarios cobraran comisión sobre costo total de producto o servicio Y
    también incluyeran logísticas. Esta es la mejor manera de contrato cuando solo se hace una o dos compras/ventas internacionales.

La cosa más importante que recordar es que los mejores agentes, intermediarios, o ejecutivos internacionales estratégicos son una extensión de su empresa. Son oportunistas éticos cual comparten información con sus clientes de confianza para crear un puente de comunicación, ideas, y negocios entre naciones. Últimamente, el propósito del mejor intermediario estratégico es ayudar a establecer una ventaja competitiva en un mercado específico.

¿Está listo para capitalizar en los mercados emergentes? La próxima semana discutiremos como cualquier empresario puede hacer millones de dólares en la siguiente década en una industria sin límites.

 

Diego M. Silva Aceituno, CEO