Friday, 18 March 2016

Hamlet & Horatio – Business Development Managers & Analysts


‘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.

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