July 26, 2010

This past week I had lunch with Jeffrey Fox. Mr. Fox is the keynote speaker on Thursday, September 30 at the GNEMSDC Expo. Mr. Fox is a prolific business writer and I am happy to say my newest soul mate or at least my newest brother from another mother. Mr. Fox's latest book, How to Be a Fierce Competitor: What Winning Companies and Great Managers Do in Tough Times is a must read for all MBEs and corporate representatives of GNEMSDC corporate members. This book will be the focus of Mr. Fox's remarks at the Expo and take from someone who has just finished the book, it will change how you think about your business. One chapter in the book goes directly to comments I made in my July 12 And Finally regarding distinguishing the good customers from the bad. His chapter is called "Fire the Strategic Customer". Mr. Fox says in a much more elegant way than I did, "Not all customers are good customers. A customer that cost more to acquire, more to support, to maintain, to service, than the revenues generated is not a good customer. A good customer are those that are net profitable to the company." MBEs are no different from any other profit maximizing firm. MBEs cannot afford to have and maintain "strategic" customers that are not profitable. Mr. Fox and I agree that the solution to un-profitable strategic customers is to fire them, better yet recommend them to a competitor. This is one of dozens of lessons that Mr. Fox may cover on September 30. I encourage you to buy the book and you will see why I call him my soul mate.