Management Matters Blog

Navigating the Maze of Search Engine Marketing

Mike Myatt, Chief Strategy Officer, N2growth

Search engine marketing has always played a critical role in managing the visibility of a company's online brand. However with the Internet becoming what is arguably today's dominant medium, search engine marketing has also risen to become a key driver in a company's overall brand strategy.

Regrettably the maturity of the products and services that comprise search engine related disciplines come at a time when the industry has never been more complicated and difficult to navigate. Even though businesses today have many more options with regard to how they execute their search engine initiatives, I find that many marketing executives struggle more today with their online marketing strategies than they did a few years ago. In this week's column I'll share my opinions on the current state of the search engine marketing Industry.

My experience with search engine marketing predates many in the field. I have been active online since the days of Arpanet, co-founded what was at the time the largest web development company in the Pacific Northwest region of the United States, served as director of internet strategy for the world’s largest web-enablement firm and founded one of the top 50 interactive advertising agencies in the United States. My purpose in providing the resume excerpt is not to self-promote, but simply to make the point that I have been actively involved in the industry from its conception, watched it struggle through its adolescence of the dot.com boom and bust, and am now watching it get a second-wind with Web 2.0. While the Internet as a medium is far from being mature, it has most certainly evolved, and so have the methods for marketing your brand online.

Last year alone I attended PubCon, the Blog Business Summit, the Search Engine Strategies Conference and a handful of other industry shows. While the messages communicated at these events made it clear that the industry has shown remarkable growth, made tremendous advances in sophistication, and has increased in the diversity of product/service offerings currently available, I question whether things are getting better or worse for the consumer.

In talking regularly with many senior executives, marketing professionals and entrepreneurs one thing is clear. They are clearly not fluent in the area of search engine marketing. While these professionals understand the potential that search engine marketing holds for their businesses, they do not understand how to capitalize on it. In fact, many of the people I have spoken with are extremely frustrated at the amount of money they have invested in search initiatives without being able to develop an understanding of the medium such that they have not yet been able to develop a consistent winning strategy in this space.

The major problems that exist within the search industry are tied to the fact that this is still an embryonic medium. There are only so many ways to purchase advertising in more mature mediums like radio or television. Contrast this with the numerous options available to consumers and businesses looking to purchase advertising on the Internet: search engine optimization, pay-per-click, pay-per-call, pay-per-acquisition, pay-per-post, sponsored advertising, themed advertising, Internet Yellow Pages, ezine ads, contextual advertising, ambedded advertising, pop-overs and pop-unders, banner serving networks, directory ads, content syndication, branded portals and microsites, e-mail marketing, link building, blogs and video blogs, podcasts, webcasts, social media, etc.

Advertising mediums in the infancy of their lifecycle spit out new opportunities faster than you can shake a stick at, and worse yet, this happens with a plethora of inexperienced vendors lined-up to cut their teeth on the advertiser’s nickel. There is rarely a week that passes when I don’t speak to a company who has a horror story to tell about a search marketing company who over-promised and under-delivered and by the time the advertiser figured out what was going-on they had spent thousands of dollars with little to show for it.

Another problem with the search industry is that Google currently controls most of the traffic. Combine Google’s dominant position with the fact that they will share little, if any, data with advertisers, and that they can change the rules of the game at any time. It brings new meaning to the term “flying blind.”

However the issue of transparency within the search industry is not limited to Google. Most of the search engines play their cards very close to the chest as they try and establish a leg up in the market. Until there is competitive pressure brought to bear on Google the odds are stacked against the advertiser. I met with a client last week that was spending 50 pecent of their pay-per-click budget on Yahoo and MSN because it was recommended to them by their search marketing firm. The problem was that given the advertiser’s product line and target market, Yahoo and MSN would produce virtually no return for them.This is a big problem.

The fact is that the Internet is the medium that can deliver the most velocity and biggest return on your marketing dollar. I also believe that this will continue to be the case as the dominance of the Internet medium will only continue to widen the gap over alternate mediums. Companies cannot afford not to allocate a substantial part of their advertising budget to online advertising, but until the medium matures it will behoove of them to make sure that they work with the best vendors who can keep up with the rapid pace of change in the industry.

6 Tips to a Better Employment Contract

By Mike Myatt, Chief Strategy Officer, N2growth

I recently received an e-mail from a CEO who was unceremoniously "asked" to resign by his board of directors. He asked me to author a piece on the value of employment agreements in hope of preventing other CEOs from unnecessarily subjecting themselves to a forced resignation scenario. So, in this week's column I'll outline a few items meant to help you protect your career longevity.

At the senior executive level jobs are both harder to come by and harder to keep. There is simply more at risk by the time you reach the C-suite than at any other point in your career. Yet I never cease to be amazed at the number of executives that place themselves in jeopardy by operating without the benefit of a solid employment contract. In my opinion there is absolutely no reason to assume the duties, responsibilities and obligations that go hand-in-hand with an executive position unless you understand what you’re playing for, as well as what the ground rules are. The funny thing is, at no time is it easier to secure an employment contract then when you are in the greatest demand…before you begin work.

There is no argument that every individual position certainly warrants terms and conditions that apply to the context and nature of the specific position at hand. That being said, at a minimum, you should attempt to insure that your employment contract includes the following provisions:

1. Job Description: Never accept a position unless a clearly defined job description has been incorporated into your employment contract. Roles, responsibilities, delegation of authority, reporting lines, performance expectations, etc., should all be outlined in great specificity. If you’re the CEO and you don’t ask for a board seat then shame on you. This is your chance to nail down the operating parameters under which you’ll be judged, so err on the side of removing any ambiguity that does not favor your position.

2. Term: Make sure and set yourself up for success, and not failure, by giving yourself enough runway to get the job done. The bigger the challenge, and the more that is at stake, the longer you’ll need to get the job done. I wouldn’t accept a C-level position without a minimum of a two year, non-cancellable agreement in place. Moreover, in many situations a 3 - 5 year agreement would not be overreaching.

3. Compensation: Be sure that your employment agreement clearly spells out fixed and variable compensation, as well as any executive perquisites. It is usually the subtle nuances of compensation that are not well defined. Therefore, whether it is the accrual of PTO, the terms of a sabbatical, bonus hurdles, vesting schedules, relocation constraints, strike prices, etc., you need to be very specific. The best rule of thumb is to consider anything not in writing as being non-existent.

4. Indemnification: In today’s litigious and compliance oriented world it is critical that the company indemnify you against reasonable risks that you assume in the performance of your duties. Among other things you should seek a hold harmless provision against all judgments, fines, penalties, and any amounts paid in settlements in connection with any threatened, pending or completed action to which you might be named by reason of your employment. Additionally, you should require the company to defend you in such actions while maintaining your right to provide for your own defense if you believe it is in your best interests. Lastly, don’t forget to have the company maintain E&O, or professional liability insurance on your behalf if it is available.

5. Termination: It is likely that your tenure will come to an end at some point in the future, so it is important to have a clear understanding of all aspects surrounding termination. Make it a point to clearly define what constitutes termination for cause vs. termination for non-cause, as well as any compensatory items relating thereto. Make sure that there is absolute clarity in regard to what constitutes a default or breach of your contract. In that vein, you should not only provide for reasonable notice provisions, but also for a lengthy right to cure provision in the event of an alleged notice of default or breach. Remember that the key to avoiding early termination is to make it less expensive for the company to let your contract expire, than to pony-up for termination penalties, break-up fees, golden parachutes or liquidated damages.

6. Winding Up Provisions: If and when your contract eventually comes to an end, make sure to have clearly delineated winding-up provisions in place in your agreement. These provisions should include (unless prohibited by law or regulation) a gag provision on the circumstances surrounding your termination. The gag provision should contain a non-slander provision, and provide for a positive reference. Additionally, no external media announcements about your termination should occur without your prior consent and approval. Lastly, some form of transition should be provided for as well. These options could include a short-term consulting assignment, an entrepreneur in residence provision, and/or a year of outplacement services.

Bottom line: Pay attention to your future going into a new position and when the inevitable occurs, you’ll have few regrets on the back side.   

 

Beating the Black Arts of Confusion

Mike Myatt, Chief Strategy Officer, N2growth

Have you ever finished listening to an explanation from a purported subject matter expert only to wonder what it was they just said? It has been my experience that the more vague, general, or ambiguous an explanation, the less command of the subject matter the person doing the explaining likely possesses. It is one thing to toss around the latest buzz-words, but it is quite another thing to actually know what they mean and have the ability to correctly apply them. In today's column I'm going to reveal the tricks of those who practice what I call "the black art of confusion" propagated by the ruse of ambiguity.

Those of you that know me have come to understand that I prefer to cut to the chase and get to the root of an issue as quickly as possible. While I appreciate the great oratory skills of those who communicate using wonderful word pictures, or the academics that can wax eloquent always using best form of prose, I prefer my business communication to be quick and dirty. In the immortal words of Jack Webb: “The facts ma’am...just the facts.” Don’t get me wrong, I’m not word bashing as I enjoy and appreciate anyone who has command of a great vocabulary, but I don’t have time for a 30 minute explanation of something that could have been, and should have been communicated in 2 minutes. Ahh, the lost art of brevity, but I digress.

What all of us need to remain on guard against are the people (notice I didn’t say professionals) that always seem to speak at the 30,000 foot level. A high-level overview is fine as a summary, but certainly not for anything beyond that. Vocabulary should be a tool for communicating expertise and not masking a lack thereof. Let’s define what I call the black-art practices of confusion:

1. Job security by confusion: Have you ever had an employee in a particular business unit or practice area paint the picture that things are so complex that only they can solve your problem? Nothing is too complex to be explained or understood, and no single individual is invaluable. Real knowledge should be transparent, transferable, and heavily leveraged, not horded or kept in isolation.

2. Sales by confusion: Have you ever been party to a sales presentation that was so sophisticated and technical that you arrived at the conclusion that, “surely these guys really know their stuff;” and as a result ended up purchasing something that wasn’t at all what you thought it would be? Remember, if someone can’t explain the benefits to you in plain English, then the benefits probably don’t exist. The best sales professionals communicate in clear and succinct statements, that are factually based, and that add value. They are never vague or ambiguous.

3. Intimidation by confusion: We’ve probably all had someone attempt to steamroll us at some point in our careers. Multi-syllable techno-jargon used in circular conversational patterns with an authoritative posture doesn’t mean someone knows what he's about. Rather, it usually means they are attempting to dazzle you with feigned brilliance in an attempt to intimidate. Remember that opinion doesn’t miraculously become fact simply by adding emphasis.

So what is the best way to deal with the black art of confusion? Force people to justify their positions by being specific. Make these wizards’ of confusion give you examples of relevant experience or have them explain their business logic in understandable terms. Make sure that your client’s, vendors, suppliers, partners, investors and employees all know that you value clear, concise, lucid and accurate communications.

The 3 Most Powerful Words in Business

 

By Mike Myatt, Chief Strategy Officer, N2growth

Every professional, regardless of his or her position or stature, should go back to basics on a regular basis to ensure that bad habits have not been formed. In that vein, I cannot think of a better time to review some fundamentals than at the beginning of a new year. I have watched the undisciplined and casual choice of vocabulary cause even the most savvy executives to lose productivity and leverage without even realizing it. The simple reality for leaders is that what you say, and how you say it, does in fact matter. In today's column I want to get back to basics and focus on three words that can make a huge difference in not only boosting your personal productivity, but also the productivity of your entire team.

While I encourage you to follow your parent’s direction and always use “please” and “thank you” as they are greatly appreciated by all, these are not two of the words that I referenced above. Two of the words that I’ll share with you in the text that follows are not used nearly often enough, and the third word is used all too often, and usually in an inappropriate manner. However when used correctly these three words can make a dramatic difference in raising your productivity to new heights.

Let’s start with the word that is quite literally a two edged sword. Used correctly the word “yes” can enable great things to happen. As an enabling word “yes” is a catalyzing and driving vocabulary item that sets things in motion. However the inappropriate use of the word “yes” will sink your boat faster than any other 3 letter word in the English language. The incorrect use of the word “yes” overextends, over commits, causes a lack of focus, launches failed initiatives, wastes resources and causes any number of other problematic situations.

The key to the proper use of the word ”yes” is to use wisdom and discernment in its application. Don’t just say yes because you can, but rather evaluate the chain of events set into motion by a yes answer and determine whether or not an affirmative response will cause more harm than good. I have always prided myself on trying to find ways to say “yes” in a manner that moves things forward in productive fashion. This means I actually think about the consequences of what I say before I say it. If my analyses leads me to believe that a “yes” will create more harm than good that 3 letter word simply won’t pass through my lips.

Let’s turn our attention to the word that will help you clear the decks to focus on highest and best use activities. The word is “no.” Most achievement oriented professionals want to take on the world and as such have a propensity to bite-off more than they can chew. Being over committed will suck the life out of those who possess even the greatest amounts of energy.

Saying ”no” doesn’t come easy to many as it is counter intuitive to wanting to help others succeed. The fact is that by saying “no” more often you’ll help others develop their skill sets faster by not being overly dependant upon your expertise. It is critical to remember that by solving other’s problems or fixing their mistakes you are neither being productive or a good leader. When someone asks you to bail them out you should tell them that you would be happy to support them by coaching them through the issue, but that they’ll have to resolve it on their own accord. This is leading by mentoring and educating not by being a doormat. Try this…the next time someone asks you for a “yes” answer that you’re disinclined to give say: “that’s an interesting idea, what other options have you considered and what are the pros and cons of each?” This question gives someone the chance to refine their thinking with the possibility of still receiving a “yes” answer to their request.

By learning to say “no” to things that do not constitute highest and best use activities you will find that you have much more time to focus on priorities and you’ll notice an immediate boost in productivity. Additionally with appropriate use of the word ”no” you will start to build some bench strength by training people to resolve conflict and problem solve on their own.

The third word and my personal favorite is “why.” No other word can cut through ambiguity, force justification of positioning, control a conversation, surface flawed logic or stimulate refined thinking like the proper use of ”why.” The skillful application of “why’ can also serve to test the depth and breadth of someone’s commitment or subject matter expertise.

My favorite use of ”why” kills two birds with one stone. It allows me to gain an insight into how people think by having them step through their thought process while at the same time using the exercise as a teaching tool. By continuing to drill down on a subject with the appropriate use of “why” I have watched individuals take what was little more than a raw concept and within a matter of minutes refine it into a well fleshed-out plan.

Use these three words effectively and watch your productivity soar.