There are three to keep in mind with respect to how organizations evolve.
There Is No One Right Organization
The organization that will work is the one a group decides to make work, after much study and debate, despite its flaws. It is easy to make any organization fail. It is harder to make one work. Continue reading How organizations evolve.
Revenue Forecasts asserts that a certain amount of revenue will be earned in a certain period of time with a certain probability that the actual revenue earned in the period will be within a certain tolerance of the forecast. For example, management may forecast that there is a 90% chance of actual revenue being not more than 10% less than a forecasted amount.
Generally speaking, the percent probability of revenue from a source is assigned by management based on their judgement in light of their collective past experience with similar revenue generating opportunities in similar circumstances.
Some managers set forecasts equal Expected Value; that is, their revenue forecast equals the sum of potential revenue generating opportunities each multiplied by an assigned probability of occurring. There are several potential problems with this approach that should be considered carefully before proceeding:
- Summing expected values allows fractional results when there may actually be little to no chance of fractional results. For example, an opportunity to generate revenue of $100,000 with a 50% probability of occuring would contribute $50,000 to a forecast computed as a weighted sum even though the actual result is more likely to either be $0 or $100,000. Continue reading How to increase the accuracy of revenue forecasts.
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When you have a disgruntled client, do the following three things in order to get back on track.
1. Unload the negative: In a face-to-face meeting, first invite your client to inform you of all the things that are bothering him/her in great detail. Ask clarifying questions to draw out and completely understand exactly what the trouble is. It is very important to repeat back each point in order to get explicit confirmation that you understand exactly what has been said. It is equally important to avoid contradicting the client, imposing your views, or defending against what is being said in any way.
This task is complete when the client has said everything that is on his/her mind and when you have recapitulated with a complete summary of all of the points that have been brought to your attention. While you may be itching to tell your side of the story and to correct any misinformation, stay calm, repress such urges, and stick with the guidance above.
It takes great self control to do. Just keep asking for more and recapitulate again, until the client has no more to say and they are completely sure you have heard them accurately. The point here is that it will be a great deal easier for your client to hear and listen to you after they have been heard.
Continue reading How to handle a disgruntled client.