What's Your Plan B If You Lost Your Biggest Customer?

Discover the easiest ways to disappoint your customers without really trying

I've played netball since I was about 10 years old so you could say it's in my blood and one of my favourite sports in the world. And whilst I never got to be a rep player, I've certainly embraced everything it offers including playing, coaching, umpiring and club committee member; with that passion culminating in being on the Netball Technical Team as one of the GC2018 Commonwealth Games Volunteers.

So it's been incredibly disheartening to see the sport I love and have given so much time and energy to, be embroiled in such a debarkle surrounded the gaining and then loss of the $15M Hancock Prospecting sponsorship deal.

Thankfully (or maybe not), Visit Victoria have come along and 'saved' Netball Australia with a similar deal on Monday. However, if social media comments are anything to go by, Netball Australia may have gone right back into another melting pot of criticism as Victorian taxpayers would prefer their funds spent on ambulances, health care and roads rather than a national sporting organisation.

Now whilst I'm not going to comment on who's right or wrong, I do believe there are some lessons and warning signs each and every small business owner should heed so let me share my musings in this week's blog.

FOCUS: Embrace Your ROLE

As a small business owner, I know both the joy when you gain that 'ideal client/customer' which makes your heart and bank account sing, and the despair when external circumstances intervene and that relationship quickly ends.

So I have some understanding of how Netball Australia felt when they gained the $15M Sponsorship deal from Hancock Prospecting which provided a much needed lifeline to an organisation facing financial viability issues.

Yet as the days went on, this deal went from being a saviour and valued commitment, to one which opened up a huge can of worms, and ultimately slipped away as quickly as it had arrived.

Now due to the conflicting media reports about what transpired (and I've read every article on this and listened to all the commentary surrounding it), I'm certainly not getting into which party is right or wrong. Because quite frankly, I believe all parties (Netball Australia, Players and Hancock Prospecting) could have all managed this situation better.

To me, the key issue seems to be a lack of communication; a fact highlighted by Natalie Medhurst (ex Diamonds player) in her commentary piece for Code Sports.

As this is subscriber only content, here's an extract of what she had to say regarding the Diamonds culture and the relationship between them and Netball Australia and the car crash that was waiting to happen.

In 2013, after a bit of a rough patch for the team, we wanted to develop a new and improved culture within the group. With that, Sisters in Arms was developed. The new culture became most visible in the moment before the first whistle, when all players and staff stood along the lines of the court, shoulder to shoulder, arms linked to sing the national anthem. Connected. United.

Creating a workplace culture is tough. Often meaningless words are thrown around. The font of a statement is more important than the meaning.

But for the Australian Diamonds, and other successful sporting teams and businesses, a winning culture is lived and breathed every day. When new players walk into the environment, they are given an understanding of what has gone before and their place in not just maintaining the culture, but moving it forward.

It is about respect, support, inclusivity and a level playing field. So much so that all players in the Australian Diamonds team - excluding the leadership group, who are given a very small bonus - are paid exactly the same amount, irrespective of perceived on-court value or games played.

This has been a stance driven by the playing group.

While a culture doesn't always transfer to automatic wins and success, it becomes the foundation by which players hold themselves to account. The blueprint to how they represent their team and country with honour, especially when adversity strikes.

Netball Australia and the Diamonds playing group haven't always been one big happy family, but it has always been a hell of a lot better than what we've seen in the past two years.

Enough is enough. No one is winning this battle.

Innocent bystanders, including grassroots players, volunteers and supporters, are taking a hit. Even spare a thought for Netball WA and the West Coast Fever, who have been side swiped by this out-of-control vehicle.

Quite frankly, I couldn't have said it better myself as I certainly felt for Netball WA and the West Coast Fever who have now lost much needed financial support from Hancock Prospecting (a sponsor they've had a great relationship with) because they've become collateral damage.

So here's my musings which have relevance for small business

• How did Netball Australia 'suddenly' get into financial viability issues? This doesn't happen overnight so was there enough due diligence from the Board and CEO? No idea but it makes you wonder when netball is still one of most participative female sports in Australia.

• Putting all your eggs in one basket is never usually a good strategy because anyone including governments can pull funding, personnel can change or circumstances intervene to take it away in an instant. Trust me, I learnt the hard way - during the GFC, I was the 'change management and systems expert' for building designers and suddenly, that niche disappeared overnight.

• Miscommunication seems to be the real problem at the heart of this. And it's not the first time Netball Australia have unilaterally made decisions with no consultation with players and clubs including the 2 point shot and 'selling' the Grand Final to Perth instead of it being held at the top 2 team's venue, as has been the case FOREVER. This option which is now lost with the Visit Victoria deal so no more home ground grand finals which is a pity for both members and the sport.

Due to this history, I would've thought there would have been more communication rather than less because these parties are definitely not on the same page.

• How long does history play a part in decision making, especially if you were not part of that history, in the case of Gina Reinhart? Yes, she heads up the family business but does that also mean she inherits the mistakes made by those before her?

• What should have been communicated to players (aka staff) and what should simply be... here's the decision we've made; and what part does authenticity and culture play in this?

What's Next?

Determining when to consult with staff versus simply advising of decisions made is a tough balancing act most CEOs, Owners and Managers walk every single day in businesses and organisations. And it's made even more difficult when management have a different perspective of the agreed workplace culture to that of staff.

A phrase I often say to my coaching clients as I mediate between owners, managers and teams when communication and relationships break down is:

PERCEPTION is at one end, REALITY is at the other end, and TRUTH is somewhere in the middle.

But what we have to remember is this is all from the perspective of the individual which is why miscommunication occurs, especially if these different perspectives are not acknowledged or discussed.

So .....

1. Are you in the same financial position as Netball Australia, and if so, what's your decision making process in taking on clients or customers to address this?

2. When do you discuss these opportunities with staff to see if they have any objections?

3. How do you manage decisions and actions of the past when making decisions about future business?

And here's my final thought:
Workplace culture, business reputation and branding takes a very long time to build, but can be lost in a second.

So I hope you'll put yourself in the shoes of the parties involved (Netball Australia, Hancock Prospecting and the Diamonds players) to see how you would handle a similar situation if it occurred in your small business.

But as you do this, please understand the media has sensationalised this issue and there are very conflicting reports so it's very hard to determine what actually happened because unless you're in those meetings and seen the correspondence, you could be making incorrect assumptions and we all know what happens when we assume.

P.S.
Join me on my FREE Webinar on Wednesday 23rd November where I'll share 7 Sporting Insights To Grow Your Small Business

Please click this link to register and/or access the recording.

Cheers
Tamara

Author: Tamara Simon

Tamara Simon uses the world of sport to coach people to grow their small business.

For over twenty years as a Speaker, Author and Coach, she's been providing much needed support to small business owners, CEOs and their teams so they can build, manage and grow a simple profitable business.

So if your organisation's members are small businesses or you're a small business owner who is...

- ready to GROW but not sure where to start

- overwhelmed with managing your GROWTH

- looking for possibilities to GROW further

Then check out her website to find out how to work with her, and book her to speak at your next event.
www.tamarasimon.com.au

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