slaying your value vampires

7 mystical questions that can help “unearth” your company’s greatest (and often unseen) value – and bring your growth back from the dead.

G U I D I N G Y O U R VA L U E E X P E D I T I O N

©2016 VALUEARC, A DAYNERHALL COMPANY. All rights reserved worldwide.

ValueArc, the ValueArc Platform and the ValueArc logo are trademarks of DaynerHall. All other names, identities or logos are the property of their respective companies. All content within the ValueArc program and within this eBook is the intellectual property of DaynerHall, and cannot be sold, published or reproduced without express permission.

Slaying Your Value Vampires I ValueArc CEO eBook Series 1

CONTENTS

3 Introduction: Tales, Myths & Legends

6 Your Neck Is On The Line

13 Question 1: Can You See Your Business “Reflection”?

15 Question 2: Can You Conjure Consensus?

17 Question 3: Would Your Customers Kill For You?

19 Question 4: Are You Buried In A “Product Coffin”?

22 Question 5: Does The Market See You As A Slayer… Or As Fresh Meat?

25 Question 6: Do You Have A Unique Market Position… Or Are You Swimming In An Ocean Of Red?

28 Question 7: Have You Sharpened Your “Brand Blade?”

32 Conclusion: Surviving ‘Til Sunrise

33 Appendix


Table of


IntroductionTales, Myths & Legends

There’s an old saying: blood is thicker than water. And there’s no thicker blood than the kind that pumps through your business.

Nightmares. We’ve all experienced them. As a CEO or business leader, you’ve probably had your fair share. There’s nothing more terrifying than being unprepared for a crucial board meeting or having a key business deal fall through – only to wake up to the cold, sweaty reality that it was just a dream... or was it?

Our tales, myths and legends are just stories – but they are deeply rooted in truth. Vampires were born from a very real fear of darkness, death and the unknown. And yet, we find these “demons” fascinating and even useful. We envy their strength, struggle to exploit their weaknesses and almost always prevail with the power of light. This epic battle is as old as mankind, and is continuously reflected in our storytelling – from Nosferatu to Dracula to Twilight.

So is it that hard to believe that these bloodsuckers might be living inside your business... feasting on your growth? Perhaps they aren’t the Bella Lugosi or Edward Cullen variety – but these unseen foes are hiding in the dark corners of your sales strategy, devouring your productivity and draining your company’s perceived value in the marketplace. The question is: can you stop them?

The answer is yes – and it won’t require any holy water or garlic. In this eBook, you’ll discover the blood-curdling methods these monsters use to sink their teeth into your business while remaining in the shadows. You’ll see how they “glamour” industry analysts with poor positioning and messaging. By answering a few key questions, you can turn the tables on these monsters, and drive a stake into the hearts of your own Value Vampires.

Good luck – and good hunting...


Your Neck IS ON THE LINE

If you’re the CEO of a high tech or B2B business, let’s face it: your neck is always on the line (queue the horror film music...)

Competition is becoming a nightmare. Your products and services are sliding into the commodity category. Your board is bloodthirsty. “Grow or die” is your mantra, and the latter is always lurking in the dark recesses of your balance sheet.

But the real drain on your growth might be your perceived value by the market – and that can bite deeper than you think.

It’s time to shed some sunlight on these monsters – and bring your growth back from the dead. Let’s explore the legend of these “Value Vampires” that are feeding on your business lifeblood, so you can draw them out of the shadows.

The Very Real “Myth” of the Value Vampires

Vampires.

It seems like you can’t change the channel or scour Netflix without running into another teen-drama about these cold, lifeless yet disarmingly sexy breed of beings. As culture, we’re fascinated by these creatures; their mysterious underworld both frightens and intrigues us, and is glamorized in media. True Blood, From Dusk ‘til Dawn, The Vampire Diaries… these are just a few of the current permutations of the vampire lore in popular television. The list goes on and on.

And why shouldn’t we be obsessed with these perfect monsters? They are beyond human… they’re superhuman. They have managed to possess the most desirable trait we could wish for: immortality. They live in the night, where all the “fun” stuff happens. They have incredible power: strength, speed, telepathy, flight… more than we can imagine. They can transform their state (remember Dracula becoming the bat?), alter their age and change their outward appearance. They can even enrapture their victims by “glamouring” them – that is to say, use their powers of charm, beauty and allure to reel the weak into their clutches (sounds a bit like George Clooney, eh?)

In essence, vampires are terrifyingly equipped to overcome us. They are seemingly unstoppable.

Except for a few choice (if not awkwardly convenient) weaknesses: Garlic. Holy water. Wooden stakes. Crucifixes. And of course, sunlight. We have to have some way to fight back, right?

Vampires may not be real, but they were born out of a real fear of the unknown. We created our mythologies to explain the inexplicable, before science and logic provided sound rationale. But even then, these legends persisted, engrained into our cultural DNA. They were romanticized and

made part of our “mysticism.” In truth, they are the embodiment of our human frailty, a corporeal reflection of our weakness, and an expression of our belief in evil. So in that sense, these figments of imagination do exist; they haunt us, follow us – and instill a crippling fear that is as old as mankind.

In business, it is exactly the same.

As a CEO or company leader, you know fear. It’s stopped you dead in your tracks. It’s kept you up at night like a horror movie. You might even wield it as a weapon, helping you sharpen your focus and heighten your situational awareness. There will always be things beyond your grasp, and despite every effort to “peek around the corners” or “read the tea leaves,” you will always be left with one certainty in this world: you can’t stop bad things from happening.

But there are, indeed, ghosts in your “business machine” – and if you know where to look, you can slay them.

Like the classic vampire persona, these nuisances possess many of the same attributes. They are often hard to see; they blend in, becoming invisible. They can be fast-moving targets, shifting from sales to marketing to operations. They have a strong impact on your productivity and efficiency. They often transform your market perception, “glamouring” your executive team with a dense fog while misleading editors and analysts with a lack of clarity. They drain your business of its value – and its capacity to grow.

We call them Value Vampires. And they’re haunting you from the inside.


Becoming a Slayer

If you were a fan of the iconic 90s serial Buffy the Vampire Slayer, you might recall her unique power to locate nests and shake out the undead with a few wooden stakes.

You might also recollect her uncanny ability to balance the responsibilities of a “slayer” while attending high school. Turns out she had classmates that were often lured into fangdom; who worries about GPAs when a vampire just ate the kid that sat next to you in calculus?

Unfortunately, finding and defeating the Value Vampires in your business requires a little more cunning – and a lot more than a 24-episode season. If for no other reason, you may not know where to start looking for them. It’s always best to start with the basics, so here are some clues that you might have an infestation on your hands:

• You’re suddenly in a very loud, crowded and competitive market – with new startups racing in every day

• Brands you know are suddenly entering your game with like products and services, even copying your go-to-market strategy

• You’re frequently losing to competitors on price, and you’re feeling the pressure to drop, drop, drop

• Analysts are viewing you as less innovative, less visionary – and more of a commodity

• You haven’t been nurturing a “tribe” of loyal customers

• You’re on a “product treadmill,” pushing out upgrade after upgrade in an effort to keep up with your key competitors

• You know your business has something unique to offer, but you just don’t feel like the market perceives you as different, compelling or disruptive

Does this sound familiar?

Of course – because every business experiences these challenges. What’s important to note is that it often creates fear… fear around growth, fear around competition and fear of the future.

This is what attracts the monsters to feed.

Hiding in the Shadows

Value Vampires can manifest in a number of ways, but they typically thrive in your company’s lack of clarity and consensus. Hidden in these “shadows,” they make it difficult to see where your real value is, and how to bring it out into the light.

When you don’t have a top-down vision that guides your company – one you can clearly express to the market – then you’re not selling with focus or intention. This creates confusion amongst your customers, prospects and channels, and may lead them to qualify you as just another “me too” player.

A clear vision can help plant the seeds of loyalty – and build the kind of relationships that lead to explosive growth.


The Value Gap

Here’s the danger in not having a clear vision and unique market claim – or the internal consensus to support it:

The market will do it for you.

It’s true. Just think about it: when your propsects turn to well-respected analysts for guidance on your products, they’re listening to them – not you. When customers Google your solutions, they’re reading blogs and reports generated by writers and editors, beyond your control. If these views are left unchallenged, your market perception – the “default position” of your value – can be shaped by inaccuracies and assumptions. This can lead to a commodity categorization that places you in the same league as your competitors, where decisions are often made on price as opposed to relationship.

The Value Gap is the resulting “rift” between your default position and your company’s greatest strategic potential. It’s here that the Value Vampires breed... sinking their teeth into your perception and feeding on your potential.

To bridge this gap, you need to extend your “value footprint” beyond its current limitations and redefine your strategic relevance to your your market. In addition, you need to provide a visionary roadmap – one that answers the big challenges that your customers face.


YOURDEFAULT POSITION

Left unchallenged, the market perception of your

value is shaped by limited or inaccurate information and faulty

assumptions – including what your competitors say about you.

Weak Positioning, Limited Value

YOUR DESIRED STRATEGIC POSITION

To achieve maximum value and momentum in the market, you must position your company as an answer to the big challenges

faced by your customers.

Strategic Positioning, Maximum Value






THE VALUE GAP




















THE VALUE GAP

THE VALUE ARC




















THE VALUE GAP

THE VALUE ARC





Define strategic relevance / benefits

to customers: “Market Impact”

Extend the value definition:“Value Footprint”
















The Value Gap: A Visualization

Climbing the ValueArc Workbook, 2016

Blood Doesn’t Lie – And Here’s The Proof

The proof, they say, is in the blood.

Right now, you’re probably asking yourself: How do I find these Value Vampires? How are they affecting my business? Where do I start looking? Should I wear a garlic necklace? And how do I find silver bullets?

You’re right to be skeptical. But maybe the best way to illustrate the impact of finding your greatest (and often unseen) value – the value being drained by these invisible foes – is with a success story. Here’s an example of how one business drove a stake through the heart of their own Value Vampires:

It was a dark and stormy night… (queue thunder, lightning, rain, pipe organ… you get the picture)

A medium-sized player in the Internet security market was digging its own grave.

Perhaps that’s a little melodramatic. But in the hyper-competitive security space, it wasn’t unusual to be here today… and gone tomorrow.

While relatively unknown, this relatively mature company had managed to build a decent footprint across a number of enterprise networks. Their point devices, from firewalls to intrusion prevention, were well-respected and reliable. Largely seen as just a hardware provider, they had little to no brand power – and were frequently losing to larger, more established brands like Symantec. And while the enterprise shadow was growing longer, niche startups were emerging, eating the smaller opportunities downstream.

While InfoSec was a hot market – and continuing to heat up with constant hacks and data breaches – they were struggling to build a “visionary”

reputation in the minds of analysts and editors. They knew the competitive landscape would become more cluttered, and they lacked the capital resources to invest in further acquisition or aggressive innovation. What’s worse, they had climbed on to a “product treadmill,” upgrading functionality just to stay in lockstep with their peers.

How could they bring their growth back from the dead? What was eating away at their success?

The problem for this company wasn’t their technology. In fact, by every measure, they had great products – even a few industry accolades and certifications to prove it. Their problem was a lack of positioning.

On paper, they looked like everyone else: a commodity player in a world of vanilla, “just-like-me” security solutions. They weren’t clear on what their greatest value was to the market – or even who their ideal customers were. They were being “bled dry” by their own demons. And defeating them wasn’t going to be easy.

But here’s how they did it:

They started with a deep inspection of their core business value. They asked questions like:

• What makes us truly unique – beyond our products?

• What claim could we make that is defensible against our competitors – and how can we support it?

• How can we reposition ourselves without reinventing our product line... or our business for that matter?


• What do our customers really think of us? What about our partners?

• Have we earned the loyalty of our customers? If so, do we deserve it?

• What problem are we solving for the market that’s different from everyone else?

• How do we add value without buying another company or technology?

• How can we sell a relationship instead of just a product or solution?

• How can we make our vision a more meaningful part of our messaging?

• What “buried treasure” might be unearthed to help tell our story in a more compelling way?

• What tangible assets do we have that we weren’t utilizing?

As it turned out, the secret was hidden in their intangible assets.That’s not unusual; in fact, over 70% of the market value for the S&P 500* is found in these types of intangibles – things like intellectual property, patents, guaranteed SLAs and proprietary processes.

For this company, their greatest value wasn’t a new feature of their latest integrated security device. And it wasn’t an aggressive new price for a SKU on a sales slick. It was something below the surface – a part of their development and innovation program that was never brought to the forefront.

Their greatest “unseen” value was their intellectual property: a research team of white-hat hackers and analysts that discovered vulnerabilities in networks months before they were exploited. By issuing patches to their own firewalls and intrusion prevention devices well ahead of attacks, they essentially delivered security that was ahead of the threat.


INTANGIBLE ASSETS ACCOUNT FOR OVER

OF THE MARKET VALUEFOR THE S&P 500*

*OceanTomo, 2009 Intangible Asset Valuation of the S&P 500

70%

And no one else could make this claim.

By pivoting their focus to a “preemptive security” platform, this company transformed everything – and the key to unlocking their market potential was consensus. From the CEO down, the entire organization adopted a core mission: delivering security ahead of the threat. They moved away from being “just another” hardware provider and elevated their value as a strategic partner. They also shifted the conversation from hardware to software, amplifying their innovation in the minds of consumers and analysts. And a renewed focus on service and relationships moved them out of the commodity category – and into a market of one.

And it was more than that. In developing this platform, the company’s CEO prescribed a visionary roadmap for the entire industry – a future of innovation that would automate security as a managed service, and continue to drive the importance of a preemptive strategy. This radical thinking brought the company to the steps of the nation’s Capitol, helping to shape the government’s posture, policy making and investment in Cybersecurity. It was a big move. And like all big moves, it involved risk.

But here’s the thing: it didn’t require any substantive changes to their technology. There were no new products, no groundbreaking features and no expensive acquisitions.

In fact, the only tack that occurred was enhancing the value of their brand.

Once marketing kicked in, the preemptive security message was abuzz across industry media. The effect was viral, and leading analyst groups like Gartner and Forrester took notice. The gap between their perceived value as a “product company” and a “visionary partner” was closing – and it had a profound impact on their revenue. More wins, bigger contracts and a unique story helped elevate their position in the security landscape – and attracted “suitors,” hungry to acquire their unique capabilities. In the end, IBM purchased this mid-sized company for nearly fives times their annual revenue. Talk about slaying your Value Vampires.


THE SECRET TO UNLOCKING THE pOWER

OF YOUR VALUE is IN YOURBrand

Swimming Away from the Oceans of “Red”

Not every company will be a target acquisition for Big Blue.

But any business – including yours – can transform its fortunes by swimming away from the red… and finding their own “blue oceans.”

As part of your journey in this eBook, we’ll discuss the impact of Blue Ocean Strategy by W. Chan Kim and Renée Mauborgne. This business philosophy is key to overcoming your Value Vampires, and illustrates how creativity and disruptive thinking can help move your business into a market of one.

In the case of the internet security company, their “blue ocean” was delivering security ahead of the threat. It changed everything – their position, their perception and ultimately their stock price. It moved them out of the commodity mindset and elevated their value across every dimension.

All that’s waiting in the “red ocean” are the Vampires... sinking their teeth into your growth…

Can These Bloodsuckers Really Be Stopped?

Bram Stoker’s Van Helsing said it best: “We learn from failure, not from success.”

Granted, he was talking about ways to kill Count Dracula. Not an easy task.

The good news is that, like Van Helsing, you can conquer these villains with the right tools and the right guidance.

For your consideration, here are the seven key questions that can help identify your company’s Value Vampires, and how repositioning your greatest (and often unseen) value can bring your growth back from the dead. But be warned, intrepid hunter: this tale is not for the faint of heart. These beasts are hiding in every dark corner, waiting to strike…

As you move through each question, remember that you are not alone. At the end of the book, you’ll learn how the ValueArc Platform can be the hero of your story… helping you slay your demons and move your business into the light.



Question 1

Can You See Your Business “Reflection”?

Corey Feldman knew it in The Lost Boys: Vampires can’t see their own reflections.

Unless, of course, you invite them into your house…

When it comes to business, value isn’t always clear. It’s often hidden – nay, invisible – and as elusive as a ghost. It shifts and changes, moving from one place to another within your organization. As a CEO, you might be too busy putting out fires (or, maybe lighting torches and storming Frankenstein’s castle) to really ponder the value that lies beyond your products and services.

In fact, when was the last time you gazed into a mirror and analyzed your company’s greatest value to the market?

Ask yourself:

• What kind of business are we today?

• Are we still in the same business we started? What has changed?

• What do we want to look like in five years? Will our current path and strategy keep us alive until then?

• How has technology changed our mission and vision?

• Do our customers understand what we think our value is? Or do they just see us as a price or a line item?

If you’ve ever been to a carnival and traversed the infamous House of Mirrors, you’ll know how the word “fragmented” feels. While not seeing your own reflection is alarming, it is equally dangerous to have multiple reflections. Does your leadership team have a fragmented view of your value to the market?

Speaking of carnivals, here’s a “midway” game that’s almost as fun as “Guess Your Weight”:

Ask each member of your executive team to write down what they think your company’s greatest value is to the market. If you have ten people participate, you’re almost guaranteed to have ten different answers.

It’s a predictable response. Think about it: the VP of sales probably sees your value differently than the VP of Engineering, or your CMO, or the CTO. This “gap” in your internal perception of value is precisely why you need a common voice. Maybe you already have a mission statement or a business plan, but is everyone reflecting your company’s value in the same way?

This is also why the relationship is so paramount. More than any widget’s whiz-bang benefit, the relationship has the greatest potential to bring every part of your organization to the value table, rallying around a single market claim that elevates your connection to customers, partners and analysts alike. So even if your sales managers and developers balance your value equation differently, you can close the gap by focusing more on selling a relationship.

A lack of consensus can be crippling to your organization. Much like the House of Mirrors, you might be asking, which reflection is the REAL one? You likely have different verticals, different industries and different prospect “personas” as part of your broad marketing strategy – and each one probably requires a different sales message. But do you have one unifying voice… one visage they would all recognize and understand?

If you can’t see your own reflection, the consequences can be grave.



Question 2

Can You Conjure Consensus?

Vampires live in the spirit realm… in a world of magic and superstition. So why do we believe in them?

It’s simple: if we tell ourselves the same story long enough, it becomes real.

If you’ve been operating with the same strategy for any length of time, it may be difficult to see the dark forest through the trees. And when your leadership team is accustomed to finding their “cheese” in the same places (as prescribed by Spencer Johnson in his classic book, Who Moved My Cheese?), it may be like…

Well, like exhuming a body from the cold, frozen ground.

So how do get everyone on the same page? How do you break the curse and “conjure” consensus in your organization – from top to bottom?

As noted in Question 1, it starts with examining your own reflection. Conduct the internal polling exercise – and find out what your leadership team really thinks your greatest value to the market is. As mentioned before, you can expect different answers from a number of people, and that’s a good sign that you’re not in alignment.

As a team, discuss the answers. Where are the similarities? The differences? What was unexpected – and did it create a disruptive point of view?

Here’s an example:

A few years ago, a small tokenization and key management solution provider was struggling to grow. While their products were both innovative and reliable, they were playing in a largely commodity space. Their brand was unknown in the market, and they were hitting headwinds from larger, more established manufacturers.

Gathering their executive team, they conducted the internal “reflection” exercise to gauge what their greatest value to the market was – and the answers were both enlightening and alarming. The sales lead fell in line with the product’s core tenants, suggesting that their single platform for encryption key management and logging was the foundation. Several people zeroed in on their protection for PCI (payment card information) and PHI (protected health information) from accidental loss or theft. There were also other answers that danced around their “platform agnostic” benefit.

But another manager suggested that their ability to simplify compliance management across a number of regulatory issues was critical from an operational and planning perspective.

This caused a disruptive and revelatory thought: are we really more of an ERP company?

After some deeper discussion and consideration, the leadership team synthesized their findings into a more comprehensive messaging platform – one that positioned them not only as a technology company, but a resource planning partner, helping companies reduce the complexity of compliance management over data security and privacy.

Arriving at this destination required navigating some rough terrain. Their team had to be open to looking in places that were often overlooked… exploring the dark, muddy corners of their mission. But by chasing this mindset, they were able to expand their view of value and elevate their position – to be in a market of one.

Not long after, they were purchased by a much larger competitor. Talk about a happy ending…

Vampires love curses. And the curse of confusion can be one of the most chronic and crippling. To conjure consensus, start by examining your own reflection – then go deeper to find out what others think of your value. Once you’ve exposed your lack of consensus, you can work towards a common value proposition and drive adoption across your organization.



Question 3

Would Your Customers Kill For You?

In other words… would they die without your products and services?

Are they legions of loyalists, or simply sucking you dry on price?

If you haven’t engaged your tribe, it’s time to ask them: what makes you choose us?

Now that you’ve conjured some consensus inside your organization, it’s time to do the same outside.

Here’s how...

Talk to your five or ten of your best customers – ideally, clients of record that have done business with you for an extended period of time. These should be relationships that you hold in high regard, where trust and honesty are assumed.

Ask them:

• Why do you continue to buy from us?

• How are we different from our competitors? (Be specific and name a few)

• Do you see as strategic? Do you see any part of what we do as a commodity?

• Do you see us differently now than when we first started working together?

• Are you loyal to our brand? If so, why?

• How would you describe the value of our relationship? How do our people make a difference?

• How can we evolve the value of our partnership? What can we do better?

Many of these questions may seem logical – even predictable. But when was the last time you had a one-on-one conversation with a customer about something other than a contract renewal or a new product feature?

Use this opportunity to elevate the way they perceive you: as an invested partner, as a resource focused on the quality of your relationship. Educate them on your journey; why is the definition of value so important? What have you divined from your leadership team – and what consensus have you arrived at – that you can test or “bounce off” them?

Now, engage your channel partners, resellers and trusted consultants; anyone that touches your product before it reaches your end customer. Ask them the same set of questions. What revelations can they bring to light that you didn’t see before? How can you use these interviews to evolve your own internal perception of value? Does this alter anything that you discovered during your internal exercises?

Once you’ve completed this leg of your trek, you’ll have even more insight into your greatest value to the market. This is still just the beginning; you have more hunting to do. But you’ll be more equipped than ever to storm the subterranean lair and drive out the Vampires.

Sink your own teeth into uncovering why your customers keep coming back – and make that a central part of your value story.



Question 4

Are You Buried in a “Product Coffin”?

Every night, the tomb slides open and the hunt begins…

The hunger swells, and you quench your thirst for blood in the same way – trapped in a vicious, horrific cycle. And the cold truth sets in: you have become the Vampire.

Sound like a nightmare? Or are you living it right now… in your own business?

If your company is product-centric, it might be suffering from the same affliction: a never-ending curse of upgrades and “me too” offerings to help you compete – but not win.

And you tell yourself: I can’t afford to let the cobwebs grow. I need to focus on the next upgrade.

If you’re in a product coffin, it’s time to open the lid and brave the sunlight.

How, you ask? By selling the value of your relationship. And that starts with your “Why Story.”

Simon Sinek, author of Start With Why, has long been an advocate of disrupting conventional business thinking. When it comes to elevating the value of a brand, he prescribes a very simple methodology: first, tell your customers and prospects why you do what you do. Follow this with how you do it – and only then do you qualify it all with what you do.

Sounds easy, right?

OK. So it’s not a “silver bullet” that instantly solves everything. But the shift in thinking is the key: it drives the value of your relationship and vision, instead of just leading with your widget… how it does this, now does that, now it costs less…

Sinek’s now famous example is Apple. By leading with their Why – to inspire consumers to think differently – they engaged their market on a more emotional and provocative level. They were perceived as innovative, in touch with the future, and far more evolved in their own perception of value.

Their How was focused on their pursuit of products that were both simple and beautiful – still not suggesting anything about technology, but something more aspirational… even spiritual.

By the time they arrive at their What, it doesn’t even matter if they make computers, phones, MP3 players or TVs – because you’re not buying any of that. You’re buying a brand… an image… a relationship.Conversely, Dell (as Sinek points out) has always led with their What. They have always made computers; cheap, unattractive and (questionably) reliable machines. Cold, calculating… and without heart. And that has consistently placed them in a commodity category against other mass-produced boxes like Microsoft and Lenovo.

Now, we all know Apple as a multi-billion dollar market phenom. But here’s a real-world example from an automotive aftermarket insurance reseller:

After struggling to find growth in a niche market, this mid-sized company decided to jump-start their thinking and shift from selling products to relationships. Rather than leading as a purveyor of extended warranties for things like scratch-and-dent and drive train policies, they instead emphasized their Why: to transform the entire dealership experience for consumers.

Their How was focused on expanding the value the dealership’s impact on their automobile’s performance – and their customer’s peace of mind.

Their What was exactly the same… except, it wasn’t. No longer defined by their products, they could now expand into new solutions and services, all supporting their core market claim. They left behind the tired, one-dimensional perception as a vendor for insurance products – and became a trusted partner for enhancing the value of the overall dealership experience. And they achieved it all by focusing on – and leading with – the relationship.


Vampires, they say, don’t have souls. Neither do commodity products.

It’s easy to get trapped in your own “product coffin.” But it’s time to let in the light. Ask yourself:

• How can we shift our focus from products to relationships?

• How can the analysis of our company’s greatest market value help transform our Why story?

• How can we shift from ordinary to visionary?

• How can we break the product cycle and truly own our customer relationships?

Don’t become your own Value Vampire. Bite back.


TO TRANSFORM YOUR COMPANY FROM

ORDINARY TO VISIONARY, START WITH THE

WHY


Question 5 Does the Market See You as a Slayer… or as Fresh Meat?

Editors…

Analysts…

Product reviewers…

Bloggers…

Are they singing your praises, or congregating like an angry mob with pitchforks and torches?

If the chase is on, where do you run?

Not to mix “monster metaphors,” but we all remember the tragic plot from Mary Shelley’s Frankenstein. Misunderstood and seeking acceptance, Frankenstein’s creation is painted as an evil beast – and becomes a target for the townspeople (who are out for blood). At each turn, he attempts to fit in, to follow the tenants of normalcy and create social connections. But his unfortunate form – an amalgam of different body parts from numerous corpses – obscures his true self. In the end, they see only the monster.

At its core, it’s a story about the power of perception. During a pivotal point in the timeline, this hideous creature even saves a little girl from drowning – but her male companion misjudges his appearance, and assumes he is attacking her.

Sometimes, appearances can be deceiving. And that is equally true in the business realm.

If you’re paying attention to your market watchers, you’re already becoming a victim of their storytelling. It might seem at times that they have a chokehold on the world, that the sun rises and sets on their view of all things. Gartner’s Magic Quadrant has evolved to become a Magna Carta of sorts for business purchasing and procurement; in fact, your position on this tiny map can dictate whether you make the short list for a bid.

Are you visionary? Are you a mature player? Are you a laggard? Is your technology becoming passé? Before you have a chance to answer any of these questions, the analyst community has already passed judgment on you… and not always for the best.

Editors and bloggers are doing it as well – shaping opinions and attitudes on their own terms. There’s a saying: there is no such thing as bad press – unless it’s bad press about you. The blogosphere has also become an unpredictable, “Wild West” of content; you never know what these gunslingers might say tomorrow about your latest upgrade.

But how, exactly, are these “Witches of Woe” crafting their opinions?

You.

Your content.

Your messages.

Your opinions.

It’s not to say that your actual product performance doesn’t impact their reporting. These measures and metrics are of course critical. But remember: these are people, just like you – sharing their research, opinions and reaction. And they’re not just buying your product… they’re buying your vision.

The fact is, if you don’t define your position in the market, the mob will do it for you. They’ll see you as “fresh meat,” and exploit you gruesomely across their content. Like Vampires, they can “glamour” an audience of loyal readers and followers – charming their mindset and influencing their decisions. These market watchers wield a trust and power that is unmatched; they can even be dead-wrong, and people will still seek their validation. And your prospects won’t know where the gaps are because they’re following the “glamouring” like sheep to the slaughter.

It’s not personal… it’s just a vampire-eat-human world out there.

To survive, you must become a slayer.

Want the market watchers on your side? Give them a vision that changes the conversation. Fight them off by sharing your unique market claim – your greatest value – as part of your “Why Story.” Give them a narrative they can sink their teeth into, a path that guides them past the product and into the future.


Here are a few places where you can invest your energy:

• Invest in listening strategies and VOC (voice of the customer) campaigns to test broad market sentiment around your products, value and overall brand; what are the analysts, editors and even consumers saying about you? How does this compare to your analysis of your greatest market value?

• Turn your business into a “content engine” that brings a laser focus to your “Why Story”

• Build an inbound/content marketing program that attracts more of the right eyeballs to your messaging

• Develop more thought leadership (white papers, executive briefs, eBooks) that positions you as the expert voice in your market – and clearly frames your value

• Elevate your focus on relationships in your content and analyst presentations – not just products, technology and innovation

You can’t outrun the mob. Even if you gain ground, you’ll always be looking over your shoulder. Instead, face them head on. You can’t hope to control what the market says about your business – but when you take a proactive stance, you can help shape it.

When you own your value and your Why Story, you have more power than you think.

And that’s what a good slayer needs: power.


TURN YOURBUSINESS INTO A

THAT BRINGS A LASER FOCUS TO YOUR “WHY STORY”

CONTENTENGINE


Question 6 Do You Have a Unique Market Position… Or Are You Swimming in an Ocean of red?

If you’ve ever seen Jaws, you might remember the story of The Indianapolis.

As Quint recites his terrifying tale, there’s one line that raises the hair on your neck and haunts your dreams:

“You know the thing about a shark...he’s got lifeless eyes, black eyes, like a doll’s eye. When he comes at ya, doesn’t seem to be livin’. Until he bites ya and those black eyes roll over white...”

Sharks. Vampires. They have one thing in common: an insatiable thirst for blood.

Like these superhuman species of legend, sharks seem equipped to devour us. They are incredibly fast, extremely agile – and they can detect one drop of blood in a million drops of water. They are, in essence, perfect hunters.

And like vampires, they attack from the darkness, below the water and drowned in shadows. We almost never see them before they bite – and that’s probably our greatest weakness: not knowing.

Now, imagine a red ocean: a deep, harrowing sea that is filled with these deadly predators. Would you see the threat beneath the surface, nipping at your feet… or spot the fins gliding towards you? How would you survive?

By swimming away… to a blue ocean.

If you’re familiar with the business philosophy known as “Blue Ocean Strategy”, you know what this means. If not, it’s pretty simple: “red” means “blood.” As in bloody competition. As in a sea full of hungry, desperate, commoditized players… hunting for the same customers.

The only way out is to swim to a “blue ocean,” where you are alone… and positioned to compete in a market of one. It’s your safe harbor – a place where you can build the right messaging to stave off the fangs of competition. Having a unique market claim that is disruptive and defensible and is the key.

Blue Ocean Strategy, written by W. Chan Kim and Renée Mauborgne, is a primer for discovering your company’s greatest value – and positioning yourself as a truly unique brand in a sea of commodity. It provides several examples of how businesses changed everything by finding an unmet need in the market, and closed the gap with disruptive offerings.

It demonstrates the power of a brand to “tune out” the noise in any industry – from TiVo in tech to Cirque du Soleil in entertainment – by solving real problems in new and often “unseen” ways.

One of the best examples from the book is Yellow Tail Wines. Even if you’re not a connoisseur of the “vino,” you’d probably recognize their label, which features the unmistakable image of a yellow kangaroo.

Yellow Tail, as the story goes, was not a wunderkind brand. They were small, unknown, not terribly sophisticated – and not awash with cash. The wine market was getting crowded – with high-end, well-established brands duking it out at the top, and the “wine-in-the-box” varietals pounding each other at the bottom.

In contrast, Yellow Tail swam against the current. They saw an opportunity in the middle of the market, where a fresh, distinct brand for wine could flourish. People were tired of the stuffy, old-world Bordeaux and the cheap sting of wine coolers; no one offered a wine that was fun, non-traditional and easy to drink (translation: it tasted good).

Rather than stealing market share from either end of the spectrum, they simply grew the market. They employed the tenants of the Blue Ocean “Four Actions Framework”, which enabled them to:

• REDUCE the complexity of the wines they offered and shifted the focus away from the “prestige” of the vineyard

• CREATE products that the industry has never offered – wines that were “fun,” “adventurous” and “easy” to drink

• RAISE the perception of the value of wine – and elevate the role of retailers in promoting it


• ELIMINATE the factors that the industry expects – like stuffy academic terminology and the importance of “aging”

Yellow Tail did more than grow the market. They streamlined their manufacturing, eliminating the range and complexity of multiple products that other vintners offered. Rather than confuse and dilute the decision cycle, they limited their line to just a few varietals and only two kinds of bottles.

By “blending” their overall strategy, Yellow Tail developed a sophisticated hybrid – one that appealed to a higher-end market accustomed to more expensive brands, but with a price point that made it affordable to “pop a cork” everyday. But the real stroke of genius was the playful nature of their brand’s label: a kangaroo. That, along with their Australian lineage, positioned them as a more exotic and attractive experience.

And that’s the key. They told a “Why Story” about the customer’s experience – one that was fun, spirited and adventurous. It struck a more emotional chord as well, which resonated far beyond the wine enthusiast category. This is what helped them expand the overall wine market.

What’s more, Yellow Tail achieved all of this success with little to no investment in media or advertising.

While the Yellow Tail example may seem like an anomaly, it’s more achievable than you think. In fact, some of the most successful and disruptive brands in the world have “leapfrogged” over the competition by swimming away from the terrors of the red tide to find their own blue ocean.

You can do it, too. Start by asking yourself:

• How can we position ourselves to be truly different from our competitors? What parts of our offerings can be made distinct, so we’re no longer competing as a commodity?

• What areas of our market are being underserved? Where are there opportunities to improve the customer experience and solve problems?

• What aren’t we seeing? What might we be missing, and can we engage our customers to help us answer that question?

• Are there places where our products and services can be repositioned to expand our market?

• What assets do we have right now that the market isn’t seeing? What parts of our “Why Story” can be amplified to expand our value to our existing market, and perhaps to new markets?

Blue Ocean Strategy can be a real gamechanger for your business. That said, it doesn’t necessarily provide a roadmap for transforming what you already have: intangible assets that may be “hidden” from your view, just waiting to be woven into your positioning. TiVo was incredibly disruptive at the time it entered the market… but not every company has that level of innovation in their bag of tricks.

So dig deeper. Get below the surface. Turn over rocks. Inventory everything – and see what pops out. Chances are, you have more value hidden in your business than you ever thought. And that might be more than enough to get you out of the red water… and into the blue.



Question 7 Have You Sharpened Your “Brand Blade?”

In the vampire genre, wooden stakes and silver swords have long been the weapons of choice – even for the most reluctant and inexperienced slayer. In fact, Dennis Miller had to wield them in Bordello of Blood.

Unfortunately, a Medieval weapon couldn’t be used to stop the film from being made. But that’s another story...

On this journey to vanquish your Value Vampires, you’ll delve deep – deep into the dark recesses of your business. And you should be just as equipped to protect yourself.

So where do you turn? Crucifixes? Tanning beds?There are many weapons in your arsenal – but the one most often overlooked is your brand.

It might be your most powerful ally for conquering perceptions and overcoming doubt in your marketplace. And it’s always a trusty partner for thwarting the undead.

What’s best: it’s an intangible asset, one that doesn’t require significant cost and effort to change or enhance. The key to unlocking its power? Having it perfectly aligned with your messaging and positioning.

Whether you know it or not, your brand is having a conversation with your market when you’re not there. That means it should behave like a sales person, nurturing a prospect into your experience – just as you would. It should project your core values and support your “Why Story” in the most compelling and disruptive way possible. Most importantly, it should be aspirational; an expression of the company you want to be in five years.

Let’s start with the basics. There are three commonly accepted categories for measuring the current value of your brand: • Awareness• Retention• Loyalty

How well know does the market know your brand? Are you top of mind when a business or consumer is ready to buy? And once they buy, are they inclined to buy from you again? According the BrandZ, brand accounts for one third of the value of Fortune 500 companies, so understanding the value of your own brand should be a key part of your strategy.

Once you’ve gained consensus around your greatest value to your market – and you’ve tested and validated your findings – it’s time to sharpen your “brand blade” and have it reflect this message.

When we talk about “brand,” we’re not just examining the visual aspects. Your brand is an ecosystem; a multi-sensory experience that should encompass all of your communications. Wherever a customer or prospect can be influenced – from Web content to imagery to sales scripts – your brand should be there.

Another important point: your brand is both internal and external. It starts with your employees. They need a solid understanding of it – and what it means for your customers. Everyone in your organization is a salesperson; when each employee (from leadership down to the trenches) adopts and embraces how your brand expresses value, they can all help carry the water.

If you’re like most companies, you know your brand could be working harder to strategically position you in the market. So… how is your brand working (or not working) right now? Is it representing your greatest value?


BRANDACCOUNTS FOR

OF THE VALUE OF FORTUNE 500 COMPANIES*

One Third

*Margaret Reynolds, BreakthroughMasters Blog and BrandZ, 2013

Is your brand sophisticated? Is it in league with Apple… or does it look and feel more like 1999?

Does your brand evoke a “world-class” company on the move?

Does it represent the company you want to be in five years?

Is it clear? Is your brand free of clutter, lightweight and easy to understand?

Is it distinct? Does your visual brand stand apart from your competitors?

Does your “Brandscape” (colors, typography, imagery) provide a unique experience for your audience?

Is your brand consistent? Is it widely adopted across all of your communications?

Is it extensible? Is it “transportable” to other communication channels within your brand strategy?

Does it integrate the messaging and positioning that reflects your greatest value to your market?

Is your content “on-brand”? Does it have a unique “voice” and attitude that distinguishes it from the rest of the market? If so, is it being used consistently across all of your media?

Can your customers and prospects experience your brand? Is it multi-sensory? If so, is it consistent across each experiential channel?

Have you earned – and measured – your brand awareness, retention and loyalty with your customers?


Brand Blood TestHere’s a quick quiz you can take to get some insight (score yourself on a scale of 1 to 5):

1 2 3 4 5 1 2 3 4 5

1 2 3 4 5 1 2 3 4 5

1 2 3 4 5 1 2 3 4 5

1 2 3 4 5 1 2 3 4 5

1 2 3 4 5 1 2 3 4 5

1 2 3 4 5 1 2 3 4 5

So how did you do? Is your “Brand Blood Type” positive… or negative?

Maybe you’re doing OK… and maybe the Crypt Keeper is laughing at your logo. If you’re not sure, engage other members of your leadership team. How would they score your brand? How do your trusted customers and prospects see you?

Regardless of your score, the good news is that your brand is less expensive to modify than your product line. That makes it the best tool for making a significant move in your market – especially in the near term. Retooling hardware or enhancing software can be rigorous and costly, and make take months to change; your brand, on the other hand, can be upgraded tomorrow.

Vampires are creatures of habit. They resist change. Heck, they’re immortal… so nothing about them ever changes.

The fact is, if your brand is behaving in the same way, it’s not projecting the position you want to be in – or the company you aspire to be. Your brand is your greatest secret weapon this fight; with it, you can mold messages, shape perceptions and tell the market your “Why Story” on your own terms.

Sharpen your “Brand Blade.” And start cutting down the competition.



Conclusion Surviving ‘til Sunrise

Here’s a universal truth: we all love stories. The myths and legends about Vampires are no exception... or any monster for that matter.

Over time, we’ve watched these tales transform, bringing new life to the undead. We’ve even discovered that Abraham Lincoln himself was a Vampire hunter. Who knew?

Our stories are always being rewritten – and the same is true of business. The market is fluid, constantly changing, dropping new challenges and unseen obstacles at your front door. The question is: will you let them in?

The concept of “Value Vampires” may be a figment of imagination, but it represents a very real threat to your future. While the thoughts and strategies in this eBook are designed to help you hunt down and slay these enigmas, they’re like bats in the belfry. They linger – and despite your best efforts, often return from the dead.

So how do you survive ‘til sunrise? You remain vigilant.

Keep these questions handy. Ask them whenever you hit whitewater and growth becomes elusive. Make sure you can see your own reflection. Never give up the quest to uncover value in your company – even if it’s hidden in the darkest places.

And remember: curses are meant to be broken.

APPENDIX

ThE ValuEarC™ PrOgram

Even Van Helsing found Transylvania a little hard to get to… so he had help.

Now that you’ve explored this eBook, you may be asking: who can I talk to about finding hidden value in my company and repositioning it? And is there a program or a system that can help me through this process?

The answer is yes. It’s called ValueArc™ – and it’s a proven methodology trusted by dozens of companies, from startups to the Fortune 500. ValueArc’s unique approach has helped businesses accelerate their growth and reach strategic goals like increased market share, higher stock value – even a faster path to IPO or acquisition.

The ValueArc Basecamp Program is an intensive, hands-on research and analysis engagement, designed to help uncover unseen value in organizations and create consensus amongst leadership teams.

The ValueArc Ascent Program helps sharpen your “Branding Blade.” It starts by conducting a comprehensive Brandscape analysis of your market and competitors, and recommends key enhancements in your brand posture to maximize clarity and consistency – and create disruption.

The ValueArc Horizon Program broadcasts your message with the right integrated mix of media and content. This go-to-market “blueprint” provides a map for reaching your ideal target audience, and leverages the power of inbound marketing to draw more eyeballs to your offerings.

To learn more about ValueArc, visit www.valuearc.com


APPENDIX

aBOuT ThE auThOrS

Matt Garrepy [email protected]

For nearly two decades, Matt has been the Creative Director and Chief Creative Officer for DaynerHall. In that time, he has worked with some of the largest corporate brands in the computer hardware, software, financial and security fields – from startups to the Fortune 1000. This includes such notable brands as IBM, Microsoft, Verizon, Sprint, Lockheed Martin, VERITAS, FIS and Harmonic. As a former Senior Art Director for MARC USA, Matt also worked with some of the most prestigious hospitality and entertainment brands in the world, including Hilton and Universal Studios.

Drawing on his deep experience in devising and applying innovative branding strategies that have helped lead dozens of companies through mergers, acquisitions and IPOs, Matt helped co-create the ValueArc System. In his role as Chief Brand Architect for ValueArc, Matt oversees the development of brand audits, brandscapes and brand blueprints that result in powerful go-to-market architectures. His reputation has made him a sought-after guest speaker on topics ranging from marketing and brand positioning to creative development and delivery. Matt attended Flagler College, where he graduated summa cum laude with degrees in advertising, public relations and commercial art. He is also a National Merit and Lewis Scholar, and the recipient of numerous gold and silver Addy awards.

Kitt Hancock [email protected]

As both the president of DaynerHall and one of the creators of ValueArc, Kitt has been central in developing and enhancing the ValueArc System for over a decade. A seasoned B2B and high-tech marketing pro, he has spearheaded the strategic planning, creative development and account management efforts for dozens of global brands, including IBM, VERITAS, FIS, Microsoft, Motorola, Verizon, Harris, Siemens, Lockheed Martin, GE, Westinghouse, FedEx, Genicom and Mitsubishi.

Kitt plays a lead role in shaping and delivering the ValueArc program. This includes managing the messaging and positioning, brand strategy development, channel support and partner nurturing. He has helped dozens of companies – from startups to the Fortune 1000 – create brand positioning and messaging platforms by “value mining” their untapped potential to maximize their market valuations. Kitt earned his Bachelor of Science Degree in Advertising from the University of Florida. He has also attended numerous industry tradeshows, trainings and events across a spectrum of technology specialty areas, with a unique focus in Internet security. His reputation as a veteran B2B strategist has made him a sought-after speaker on the subjects of marketing, branding and sales enablement.


Kim, W. C., & Mauborgne, R. (2005). Blue ocean strategy: How to create uncontested market space and make the competition irrelevant. Boston, Mass: Harvard Business School Press.

Sinek, S. (2009). Start with why: How great leaders inspire everyone to take action. New York: Portfolio.

Moore, G. A. (1999). Crossing the chasm: Marketing and selling high-tech products to mainstream customers. New York: HarperBusiness.

Johnson, S. (1998). Who moved my cheese?: An amazing way to deal with change in your work and in your life. New York: Putnam.


APPENDIX

SOurCES

©2016 VALUEARC, A DAYNERHALL COMPANY. All rights reserved worldwide.

ValueArc, the ValueArc Platform and the ValueArc logo are trademarks of DaynerHall. All other names, identities or logos are the property of their respective companies. All content within the ValueArc program and within this eBook is the intellectual property of DaynerHall, and cannot be sold, published or reproduced without express permission.

G U I D I N G Y O U R VA L U E E X P E D I T I O N