Everyday PR

Regardless of the economy, 15 percent of companies stall every year.  In a decade, 50 percent of companies stall.  Why?  A lack of consensus, focus, nerve and/or all of the above.

Motorola signed David Beckham to promote its new Aura phone in worldwide ads.

Steve McKee, author of “When Growth Stalls” and recent speaker at the 2009 PRSA Counselors Academy meeting, knows first-hand the growing pains of starting a business and the commitment to sustainability.

An Albuquerque-based business and marketing counselor who has experienced and recovered from stalled business growth, McKee points to several key internal factors that can contribute to the “death spiral”:

• Lack of consensus – Managerial disagreement at the top often inhibits business growth, particularly in a highly competitive environment. Motorola, maker of the world’s first commercial handheld cellular phone, and Sears exemplify how a lack of executive consensus can affect the bottom line, particularly in an environment of changing economic dynamics and strong competition.
• Lack of focus – Take a look at Remington Shavers and Citigroup to see how companies tried to be too many things to too many consumers. Define your areas of specialty, and perfect them.
• Loss of nerve – When companies show a lack of consistency in their marketing programs, they’re often sacrificing long-term goals for short-term gains – a sure sign of a growth stall. As a decision maker, you need to determine whether or not you’re “investing in” or “spending on” marketing. Your answer can reveal if and how you’ve lost your nerve. As a side note, healthy companies are twice as likely to win creative awards for their marketing programs.

A common result of all of these factors is a death spiral from which it can be hard to recover.  To check out the health of your company, take this free self diagnosis.