‘Business
Development Manager’ – it’s one of those job titles that has as many
definitions as it has people in the role: 1,869 within a 25 mile radius of my
location (in Shropshire), in fact, according to LinkedIn. BDMs range from
senior sales people, perhaps most frequently, to those heavily focused on innovation and new products, and those focused on new strategic markets. The premise of this
article is that, regardless, BDMs – perhaps more so than anyone else in
a company – should have a Market Analyst at their right hand, as a sidekick, or a
Horatio to their Hamlet.
 |
| Horatio, Hamlet and the Ghost; by Henry Fuseli |
Let me
explain the analogy: Shakespeare’s Hamlet is commonly spoken
of as an enigma, persistent (in trying to prove King Claudius’s guilt),
enthusiastic, energetic, and occasionally rash and impulsive[1]; “words are Hamlet’s constant companions”
– he has the gift of the gab, one might say. He possesses similar traits to
those required in business development or sales. (Funnily enough, Hamlet is often compared to another
play, Death of a Salesman, but I’ll stop there!)
Horatio
– Hamlet’s loyal friend throughout – is described variously as the harbinger of
truth[2],
very rational, not “passion’s slave”,
intelligent, sceptical and never rash. He does go along with many of Hamlet’s
rash decisions but, significantly, he questions Hamlet’s judgement on one occasion: “you will lose this wager, my lord”, he
declares when advising Hamlet against participating in the duel that costs him
his life. Horatio is our analyst, providing the wise sounding-board for the
boundless enthusiasm and ideas of our Business Development Manager.
So,
while no definition of ‘business development’ is agreed, what is its essence? I
went to a popular jobs website and took the job descriptions for the first ten
Business Development Manager roles in my vicinity – this is by no means
scientific, but it is indicative – and the wordcloud below shows the 50 most
frequently-cited words. Those that jump out, in particular, are “new” (40), “customer” (26), “sales” (25) and “growth” (22). Often, these roles are about new strategic opportunities, new
markets (segments and geographies), new customers, new products, new
partnerships, and all in the pursuit of growth. Business Development Managers
are busy, very busy! Plus, it seems, they have to “ensure” all of this! |
| A wordcloud of the most common words in 10 Business Development Manager job descriptions. |
And
virtually all of the key elements of these roles require market intelligence;
indeed, I would suggest that business development is the area of a business in
which analysts can make the greatest contribution: from horizon scanning to
identify new “opportunities” for “growth”, to researching “new” markets, customers and,
inevitably, competitors.
One of
the foremost studies into the success, or otherwise, of business development
projects was conducted by the Rotterdam School of Management, working with Philips
over a ten-year period. It found that lack of market knowledge was the main
reason why new business development projects failed.[3]
Polaroid provided one example: they had the technological knowledge in digital
imaging, but not the new market knowledge in terms of business models,
distribution channels and the new competitors they were facing.
Other
research, in the context of small business, identified why business development
projects fail, with five of the ten reasons being market and competitive
intelligence-related: poor research, unclear target market, lack of testing,
competition, monitoring and control.[4]
And,
arguably, business development is even more important to industry challengers
and SMEs – companies that can never stand still or rest on their laurels.
Challengers, by definition, are growth-oriented, seeking innovative ways to
grow in the face of larger market-leaders; and SMEs, likewise, are flexible and
fast-moving enough to make the most of business development opportunities when
(and, crucially, if) they are spotted. Bearing in mind that these projects
often involve considerable investment too, it is clear to see why they should
be based on sound intelligence. Such businesses have to be that bit more surgical,
identifying the most prosperous and realistic opportunities, as opposed to some
large companies where a multi-million pound acquisition that fails can just be
shrugged off.
Yet, of
course, these are also the companies that are less likely to be employing
full-time analysts. In large firms, analysts are one of the go-to people for
business development projects, in my experience. In that context, I have
regularly been called upon for projects relating to new product development,
entering new markets, and acquisitions, in particular.
So, I
put it to you that all Business Development Managers need a Market Analyst as a
sidekick, to take on the analytical burden of these projects, to provide a
sounding-board, and to help allay the prospect of doing the business equivalent
of Hamlet’s fateful duel with Laertes – “you
will lose this wager, my lord.”
If you're a Business Development Manager and want a sidekick, then contact me. I work on a freelance and flexible basis, specialising in market and competitive intelligence for industry challengers and SMEs.
If you're a Business Development Manager and want a sidekick, then contact me. I work on a freelance and flexible basis, specialising in market and competitive intelligence for industry challengers and SMEs.
[1] In
part, at least, as the character is somewhat of a paradox. Analyses can be
found here: http://www.cliffsnotes.com/literature/h/hamlet/character-analysis/hamlet
and http://www.sparknotes.com/shakespeare/hamlet/canalysis.html
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