Chapter 4

Jamshed sir,
What is unite selling propositions?

The Art of Effective Communication

art and science;The analyst has a number of key (communication) task
responsibilities, including: 1) delivery of the findings to the decision
makers,
2) gauging their understanding of the analyst’s recommendations, 3)
making sure that no critical intelligence was lost in the
exchange of ideas, and
4) understanding how the analysis product will be used.

Failures in these final stages of the analysis process can devalue

the analyst’s work and be a prime contributor to bad decisions
or inappropriate actions taken by an enterprise in the
marketplace. Additionally, the communication stage is a vital
feedback mechanism for analysts to understand how well they
have done their job. It also provides pointers on how they might
improve their performance
on the next one.

Packaging the Results of Your Analysis

One thing the analyst must always consider is the need to inform
versus the need to protect critical information from being shared beyond
the
persons for whom it was originally intended.Analysts who develop
recognized levels of communication effectiveness are
more likely to present results that
Are future-oriented with detailed predictions of the evolution of the
phenomena of interest.
Contain well-articulated conclusions that are developed through
comprehensive research and logical reasoning.
Include clear explanations of subjects that go beyond the reasonable
technical grasp of their decision-making clients.
Delivering the Message
1. Face-to-Face Briefings
Face-to-face conversation, dialog, and briefings allow the analyst to
physically and orally present their findings in real time to a client. This
not only encourages discussion and exchange of understanding to take
place synchronously, but also minimizes second-hand distortion of the
effects that a time lag can have on the acquired understanding. All things
being equal, we nearly always recommend that analysts engage in face-
to-face briefings if it can be done on a convenient and viable basis with
their clients. If it can’t be done face-to-face, another good alternative is to
use one of the better interactive digital video calling or telephony
platforms that have cropped up, like Apple’s FaceTime, Skype’s video
conferencing, or Google’s Hangouts, among others.

2. Written Reports and Briefings

Printed outputs are a cost-effective way of distributing results. Some
executives still prefer to read items from the printed page rather than from
a screen, particularly if a screen is not readily available or inconvenient
(that is, the decision maker is traveling on an airplane or his e-mail
networks are not easily accessible). A problem with this form of
communication is that many more
pages of materials are printed than are ever read, and much of the
information that is read is not fully understood by its readers. It is not
unknown, quite common even, for the readers of paper-based intelligence
reports to be overlooked. Additionally, the report itself has the potential
to fall into the hands of an unintended audience and can create
undesirable vulnerabilities.
Presentations in Meetings, Seminars, and
3.

Workshops
Meetings are a time-demonstrated, effective way to deliver results to a
group of decision makers and also a good way of gaining a group’s
attention. The main advantage in this socialized, synchronous format is
that it provides opportunities for the analysts to discuss their findings in
real time, not only with those who may have initiated the task in the first
place but also with those individuals to whom it was also designed to
inform. It is important that the appropriate decision makers are available
to observe and interact with the presenter; nevertheless, this scheduling
aspect is often an overlooked part of the analysis
communication process. One criticism of this method is that many times,
analysts prepare (overly) detailed PowerPoint slide decks whereby the
aesthetics of their slides, the fanciness of their presentations, or the
structure of their slide organization overpowers the important content or
message, which then gets lost or missed because of the high reliance on
the presenting technology. Analysts need to be wary of spending too
much time thinking about how they can design reports, at the expense of
worrying about the robustness of content. Synchronous seminars and
workshops are two other forms of presentation- based communication.
They can allow the analysts to present their ideas more formally while
still allowing for the collective benefits of quality question-and- answer
time. This encourages discussion among the collected group of executives
in an audience and aids the exploration of solutions to competitive and
strategic problems. Several excellent, web-conferencing applications
closely replicate the benefits gained from in-person synchronicity, while
also
overcoming challenges of distance and time zones.
4. E-Mail/Instant Messaging
Digital communication is probably the most commonly used means for
analysts to communicate with their decision-making clients. The major
benefit of this format is the almost immediate attention and quick replies.
E-mail and instant text messaging are good ways to disseminate “alerts,”
to bring attention to the
availability of regularly published newsletters and other forms of
analytical results that need to be acted upon in a quick manner. A
drawback of this form of communication is that it makes communicating
the “richness” of the recommendation context difficult. It can also limit
the format of the results to mostly, if not entirely, text. Last but not least,
it can run into synchronization
problems due to incompatible applications, transmission failure, or time
zone issues, among others.

5. Web-Based Intelligence Solutions and Systems

Customized software solutions offered by specialized business and
competitive intelligence vendors, or systems tailored for analytical use
within the larger corporate communication system, are becoming more
commonplace. These allow analysts’ clients to either see their findings in
refined and finished formats, which can include digital links to other
materials, and/or in their original input such as documents, interview
notes, articles, and so forth. Such systems nearly
always allow for selective access and viewing by clients on a need-to-
know basis, or they can be designed to send out various forms of
information in the form of e-mails, instant messages, or fax to a selected
numbers of recipients. The drawback to these systems is that they can be
cumbersome, costly, complex,
incompatible with complementary organizational solutions, and that they
do not always allow for two-way communication to take place.

6. Exercises and Planning Sessions

Many analytical tools require two-way interaction between analysts and
their decision-making clients. Some of the tools in this book are best
practiced in this way, including techniques such as war gaming (see
Chapter 28, “War Gaming”), scenario analysis,or shadowing (see Chapter
24, “Shadowing”). These
frequently involve the analyst or designated individuals playing the role
of one or more competitors. These techniques require a vast amount of
data before anything is attempted and can be conducted in a one-off
session, over an extended period of time in a person-to-person format, or
can be conducted in teams in tightly planned and scheduled sessions
aided by expert facilitators.

Common Products and Reports Used by

7.

Analysts
Analysts ordinarily generate outputs in a variety of forms for use by their
decision-making clients. Each of these has a typical audience, for which
they are designed, are produced on a particular frequency, and are viewed
to hold a certain level of perceived value in the eyes of the report
recipients. They should
always be tailored for the known and unique needs of the decision
makers. Common types of analyst reports are discussed in greater detail
next with respect to their relative advantages and disadvantages.

8. News Bulletins and Newsletters

Targeted most frequently to field sales personnel, marketing, managers,
sales managers, or other decision makers, these analysis outputs contain
largely tactical and/or operational information and utilize data gathered
from all sources. They can include both publicly available and internally
available information. They frequently focus on current or immediate past
events. They are rarely oriented toward the future. Newsletters are
typically of lower strategic value relative to other types of
outputs.11 Although these items may be seen as less valuable than other
products in a comparative sense, their cumulative value can be higher and
strategic in nature. This can be especially true if they raise the level of
competitive awareness over time in the enterprise. When done well,
newsletters and news bulletins can be catalysts for not only conversations
and discussions between analysts, analyst groups, and their clients, but
also encourage new questions to be asked of the analyst group. One way
of achieving this catalyzing effect is to ensure that newsletters do indeed
include analysts’ interpretations and insight, along with the informative
“news” aspects of the bulletins.Many analysts and companies have failed
to sustain their intelligence functions because they have spent too much
time and effort “feeding” the publication process rather than providing
uniquely valuable information and insights. Such publications can
become superficial and receive damaging
feedback from executives with comments such as, “I knew this already”
or “I can read this elsewhere—why do we need analysts or an intelligence
function to get this information?” On the other hand, some companies
have done these effectively and their intelligence functions prospered.
How these reports are
presented and how much timely, unique information is provided will
make or break this process. Here are the characteristics to think about in
establishing regularized intelligence reporting practices such as
newsletters: Provide fresh content and unique, even provocative,
perspectives on a key issue. Include the perspectives of a decision maker,
executive, and other clients
of the analytical process. Create formats that are easy to digest. They
should be concise, to the point, and quick to read.
Focus on high priority and timely topics while correspondingly
displaying analytical depth and understanding. Stimulate questions,
debate impacts, promote communication among
executives, and of course...encourage action.Quality control—be very
selective about what to report. Don’t just “fill up
the report.” Someone close to senior execs should review each issue
carefully before sending it out. No typos/mistakes can be tolerated.
Staff/budget requirements to support the routinized publication process—
is the cost worth it? Should the analyst be doing more important things?
We like to use an acronym developed by Chip and Dan Heath to guide
the development of newsletters that “stick” with readers. They offer six
principles,
under the acronym of their “SUCCESs” model to guide how this should
be done:
1. Simple—This is about prioritizing, and making sure the core of the
message is communicated with an analogy, story, or customized “pitch.”
2. Unexpected—Use a provocative, unconventional, or even humorous
story, article, or column to raise readers’ curiosity. They need to want to
read it, for it to “stick” with them.
3. Concrete—Try using sensory language, paint mental pictures, and
engage multiple parts of the reader’s memory.
4. Credible—Use vivid details, credible sources, or statistics to give your
insights authority.
5. Emotional—Be sure to help the reader understand what is in it for
them, and paint a picture that can engage their hearts, feelings, and
emotions.
6. Stories—These drive people to take actions by stimulating, inspiring,
and motivating them. Help your readers understand how their actions can
impact a problem your company faces or an opportunity that it seeks to
exploit.
9. Assessments
Assessments are fairly brief and regularly generated products that look at
particular business decisions, providing an understanding of the current
situation facing the decision maker, identifying the critical success factors
associated with the situation, and suggesting likely outcomes in terms of
probabilities. The content can range from a very general overview of
broad issues to detailed answers to highly specific questions.

10.Competitor Profiles
Competitor profiles are produced as needed but are constantly updated
and contain general information about the enterprise’s rivals in the
marketplace. If accessible over the web and available on mobile
communication devices, theyare valuable for field sales personnel,
marketing, and sales managers, as well as other functional decision
makers who not only benefit from them on a daily and transactional basis,
but also contribute to their augmentation and evolution. Seldom
actionable in their own right, they are of lower strategic value relative to
other types of analytic outputs, but can be combined with other types of
outputs
that have higher overall decision-making value. Done well, competitor
profiling is carried out at many different layers of the
enterprise, addressing the competitive landscape and associated activities
right across the value chain. Passive competitor profiles are simple
historical commentaries, compiled from publicly available documents and
as such, carry little or no analytical value or originality. Active
competitor profiles are future driven, contain identification and
assessments of critical success factors,
deconstruction of published financial reports, qualitative and quantitative
judgments on current/future capabilities, probabilities of competitor
action taking place, and recommendations on how best to react to each
and every one
should it occur. Active competitor profiling is also done much more
efficiently today by tying into automated web scouring or spidering, and
RSS (really simple syndication) feeds, which use a family of standard
web feed formats to publish frequently updated information in the form
of blog entries, news headlines,
audio files, video snippets, and web updates.
11. Battlecards
Competitive battlecards are called by a variety of different names,
including beat sheets, unique selling propositions (USPs), or competitive
silver bullets. They all have in common the purpose of helping a
company and its sales personnel beat rivals in sales situations by
providing insights on other offerings in the
marketplace and detailed product comparisons. They are frequently used
to educate and inform sales personnel about the competition, enable your
representatives to establish competitive barriers or traps about rival
products/services in the minds of prospective buyers, better differentiate
your offering, and help overcome possible objections. Many company’s
battlecards
increasingly take advantage of mobile technology platforms (iPads, smart
phones, phablets, and such) to provide company personnel with
taxonomized, hyperlinked, up-to-the-minute information to allow them to
deliver information to prospective customers or clients in the selling field
at any given moment.
Done effectively, sales people in companies using battlecards should
close more sales and help their business gain market share. Battlecards
usually make available key comparison data across a wide rangeof factors
within a designated competitor set. These can include differentiated or
segmented product/service features, pricing, pros/strengths/advantages,
and cons/weaknesses/disadvantages of the item in relation to rival items,
user benefits and needs met, realm of application, service considerations,
success stories and credible testimonials, other customer evaluation
criteria, and total cost of ownership (TCO) or return on investment (ROI)
comparisons. The key to their effectiveness is their inclusion of pertinent
and astute analysis, generated from combining the basic facts with other
analysis methods like war gaming (Chapter 28), shadowing (Chapter 24),
critical success factors (Chapter 13), business model analysis (Chapter
10), win/loss analysis (Chapter 29), competitive positioning analysis
(Chapter 11), benchmarking (Chapter 8), and product line analysis
(Chapter 21), as opposed to just keeping them automatically updated with
data and information.
Strategic Impact Worksheets
Strategic impact worksheets are closely related to competitor profiles and
are
used to identify specific events that may potentially impact the enterprise.
They
are usually targeted at those individuals in the enterprise who will be
most
affected by the events, possibly including Strategic Business Unit or
functional
managers. Ordinarily issued on a regular basis, they are usually of
moderate
value to decision makers. However, if the analyst uses these with
competitor
profiles to develop an early-warning system, then they can take on
increased
value. Anything that helps the organization to avoid being surprised by
competitor action, market shifts, or hitherto unforeseen events can only
be of
great value.
Intelligence Briefings
Usually issued on a regular basis, in a highly condensed manner,
intelligence
briefings are reports to senior and other managers about strategic news.
They are
rarely used to address specific issues, but they do ensure that all
concerned are
kept as “aware” as possible of the shifting competitive landscape.
Intelligence briefings are increasingly offered digitally in broadcast
formats
over secure intranets, in webinar formats, or via secure video-
teleconferencing
facilities and platforms. They are typically of moderate value to the
analyst’s
clients if done on a regular basis, but can be of higher importance if done
on an
as-needed or required basis.Situation Analysis
A situation analysis is one of the more unique products produced by
analysts on
an as-needed or as-requested basis for key decision makers. These reports
summarize emerging and rising strategic issues. They usually provide
background in the form of the detailed thinking and synthesis actually
performed
to generate the recommendations. Relative to other intelligence products,
their
shelf lives are short.
Special Intelligence Summaries
Special intelligence summaries are usually brief in length, not much more
than
one or two pages, and most frequently generated on an as-requested basis.
They
identify situations, summarize the key supporting analyses, and offer
recommendations on desired actions to senior decision makers. They are
among
the most valuable outputs regularly generated by analysts and are often
the most
visible influencers of an enterprise’s decisions.
Creating the Report
When creating reports, analysts should emphasize the following items:14
Strategic versus tactical or operational information
Decision-oriented information
Inclusion of only relevant supporting data
Distribution of reports to clients on a timely, need-to-know basis
Multiple reports versus one large report for lower to middle levels of
management
Analysts can enhance their decision makers’ receptivity by using a
variety of
analysis outputs. M. Dugal developed the idea of an analyst’s portfolio,
which
comprised 10 key products. Each of these “products” differ in terms of
shelf life,
intended audience, processes used to generate them, sources underlying
their
development, analytical tools most commonly applied to generating
them, their
modes of dissemination, and the resources required to produce them.
1. Current Intelligence provides clients with the first identification of
developments in the organization’s competitive arena. This is typically
light on analytical manipulation and, in cases where it is warranted, will
later be assessed more thoroughly.
2. Basic Intelligence reports on analytical research that provides the up-
to-date, systematic facts and understanding about the organization’s
environment, industry, and competitors.
3. Technical Intelligence helps the decision maker understand
developments
in both the scientific and technical areas that affect, or may potentially
impact, their organization’s competitive environment.
4. Early Warning Intelligence provides advanced warning of potential
marketplace disruptions and environmental opportunities and threats.
5. Estimated Intelligence provides forecasts, scenarios, and likely
developments relative to competitor’s products, markets, customers,
processes, and/or industry composition.
6. Work Group Intelligence is used in support of internal projects and
teams
especially those relative to possible merger and acquisition candidates,
patent purchases, or acquisition of specialist expertise.
7. Targeted Intelligence offers one-time intelligence that targets narrow,
specific, and focused needs of an intelligence client.
8. Crisis Intelligence is designed to assist the organization in managing
its
way through crisis events.
9. Foreign Intelligence focuses on competitors, industries, and companies
that operate outside the nation-state domicile of the organization.
10. Counterintelligence assists the organization in addressing the
intelligence
threats posed by competitors.

Chapter 5
the benefits that analysts and their organizations gain from using
techniques correctly are the following:
1. Greater understanding of relationships and situations—Virtually
every
technique and combination of techniques requires the analyst to ask
numerous questions including “what?,” “how?,” “when?,” “who?,”
“where?,” and most importantly, “why?” These questions lessen the
likelihood that they will miss or overlook important facets of the analysis
being undertaken.
2. Initially focus the analyst on data and facts—Most techniques
require
data and facts first and discourage the use of unqualified opinions,
beliefs,
rumors, or feelings. Although some techniques are highly qualitative,
andothers highly quantitative, nearly all of them require the analyst to
maintain a keen understanding of the soundness of data input.
3. Guide efficient data collection efforts—On agreeing which questions
are
to be answered, the analyst can then consider which techniques will be of
most use. This then drives the data collection effort and lessens the
likelihood that time and resources will be spent on collecting unnecessary
or redundant information.
4. Encourages analysts to be rigorous—Most techniques compel the
analysts to consider a wider and deeper range of possibilities than they
would normally accomplish alone. This is exemplified by the processes
we
outline in this book that can require multiple steps, which in turn require
many checks and balances between these steps. Hasty analyses, badly
organized information, and only using convenient data always leads to
dissatisfied decision makers and short careers for the analysts who
operate
in this fashion.
5. Forces analysts to think critically—Analysts should consider the
benefits and limitations inherent in looking at data and information in
specific ways. Most of the techniques presented here, along with the
information we urge analysts to consider, should help them to prepare
defensible and well-reasoned insights that will stand up to the critical
scrutiny of demanding decision makers. Many of these techniques are
subsequently modified for particular proprietary applications in
enterprises, which often then become part of the enterprise’s analytical
repertoire.
6. Promotes a proactive attitude to analysis—Most techniques require
the
analyst to consider the options and think through the relative value of
each
before use. Utilizing selection criteria to choose the best technique(s) for
particular challenges causes analysts to think ahead in terms of the data
they will need to operate each and the type of outcome each will deliver.
This helps to determine their suitability to address the question(s) being
asked.
Studies of the use of competitive analysis tools and techniques have
demonstrated the extent of their use, as well as perceived judgments of
their
effectiveness. According to A. Gib and R. Gooding’s survey of
competitive
analysts, the most-utilized tools included competitor profiling,
product/market
analysis, industry analysis, qualitative research methods, and customer
satisfaction surveys. These tools all tended to be rated highly in terms of
theirperceived effectiveness, along with management profiling. The least-
utilized
tools included spire analysis, dialectic inquiry/devil’s advocacy, gaming
theory,
force field analysis, and experience curve analysis.
As advisors and consultants in the area of competitive and strategic
analysis,
we are not surprised by the finding that a tool’s extensive use and its
perceived
effectiveness would be highly correlated. Analysts will use tools they
perceive to
be effective and will shy away from ones they perceive to be ineffective.
Having
said that, we have no knowledge of how well trained the analysts were in
applying the 30 tools that were rated, the nature of the questions or topics
that
their decision-making clients had asked them to address, the context in
which
they applied the tools, or the quality of the data/information used in
employing
the techniques.

Applying the Techniques

There is a process to properly identify analysis techniques, and analysts
should
think through a series of questions before they make their choice:
1. What is the full range of techniques that can be used to respond to the
question asked?
2. What is the focus and scope of the competitive phenomenon being
analyzed?
3. What are the constraints—personal, informational, organizational,
resources, and contextual—that might affect the analysis process?

FAROUT is based on the premise that for analytical output to be

insightful,
intelligent, and valuable to business decision makers, it needs to meet a
number
of common characteristics. The output needs to be
Future-oriented
Accurate
Resource-efficient
Objective
Useful and
Timely

Future orientation: Relying on the past as predictor of the future can be

dangerous. This is particularly true when innovation, science, and
technology
factors can quickly disrupt a market. This has been very evident in the
rapid
adoption and development of e-commerce causing disintermediation of
entire
industries. By definition, the intelligence resulting from an analyst’s work
must
be future-oriented, looking both deeply and broadly at what might
happen. They
must be willing to take risks to some degree by being both inventive and
predictive. Early warning, foresight, prescience, or prevision cannot be
adequately generated by using historical data that are focused entirely on
the
past. The better analytical methods for developing intelligence are indeed
future-oriented.
Accuracy: The effective analyst should develop outputs that aim for high
levels of accuracy. This means that the insights gained are precise.
Accuracy also
means that the analyst’s insights are as closely matched as possible to the
actual
conditions of the phenomena being analyzed. High levels of accuracy are
difficult to attain in practice when the data underlying the analysis
Comes from only one source
Has not been cross-validated against both hard and soft information
Is collected under time constraints that restrict the comprehensiveness of
the collection process
Needs to be converted from sources in ways that it was not originally
designed for
Comes from sources filled with high levels of bias in the first place
Although achieving the highest levels of accuracy is theoretically
desirable,
the analyst usually has to trade off against other conceptual and pragmatic
considerations. Experienced practitioners have suggested that in a good
proportion of competitive marketplace contexts, accuracy or precision
might
often be much less important than developing an enhanced understanding
or
perspective.
Resource efficiency: To produce effective analysis, data needs to come
from
sources that cost less than the resultant output is worth. This equation
refers to
the marginal value of gathering the additional information required. At
the
margin, the subsequent use of a tool is valuable to the extent that it will
increase
the value of the insights more than the resources expended by the
enterprise’s
analyst in applying it. Executives commonly lament that their
organizations
gather enormous amounts of data, with the thought that it eventually may
be
needed. Their experiences suggest that much, if not most, of the data will
likely
lay dormant for years inside contemporary, high-volume, digital storage
devices.
Although an Internet search may conveniently produce volumes of
apparent
“hits,” one phone call to a well-placed and knowledgeable contact would
most
likely have produced far superior information in a fraction of the time.
Objectivity: The application of a given method affects the degree of bias
held
by the analyst, analyst groups, and/or organizations.6 Too many otherwise
“good” analyses can be clouded by cognitive or social biases ranging
from prior
hypothesis bias through recentness and availability to groupthink, all of
which
provide comfort in dealing with risk or uncertainty.7 To minimize the
potentiallydestructive nature of these common biases, data or information
should be viewed
by analysts in a dispassionate, impersonal, rational, and systematic
manner. In
other words, objectivity helps to minimize the destructive potential of
analytical
and decision-oriented biases. It is also essential for analysts to recognize
the
potential for and avoid the selective use of facts to provide support for
pre-
ordained or desirous conclusions. Experienced analysts recognize that
delivering
bad news is just as much a part of their job as delivering good news, and
they
will tackle each with equal skill and objectivity.
Usefulness: Almost by definition, valuable analytical outputs will meet
the
critical intelligence needs specified by a particular decision maker. The
output of
some techniques and models can be quickly understood, whereas others
may be
less easily digested and can require the decision maker to further engage
with the
analyst before they are confident of making decisions. It helps if the
analyst and
the decision maker can design a process that helps each of them to
develop a
clear understanding of the problems and intelligence needs, as well as a
deep and
broad appreciation of the decision context. This understanding does not
always
come easily, and for many, will only emerge over a lengthy period of
time,
which engenders trust and respect for the tasks and responsibilities of
each.
Ultimately, effective analysts strive to produce outputs that meet, or
surpass, the
requirements of the decision maker.
Timeliness: Strategic business information or competitive data frequently
has
a limited “shelf life,” especially where those decisions are being made in
dynamic, hyper-competitive, or turbulent environmental contexts.
Consequently,
raw data loses its value the longer it remains excluded from the decisions
underlying organizational action. Some methods of analysis may provide
the
intelligence required by clients for decisions but take far too long to
develop.
This could happen when a need exists to subject the data to multiple
phases of
analysis, to gather a certain volume or variety of data that is not quickly
accessible, or to employ other, less readily available individuals in the
process.
On the other hand, some methods of analysis may require little time to
perform
but do not deliver the other required features of objectivity, accuracy,
utility, and
resource efficiencies. Valuable analysis will provide decision makers
with
enough time to implement the course of action recommended by the
analysis.

We utilize a five-point rating scale to assess each analytical technique