"Curious, Not Furious"

1. Get Your Product Portfolio Ready With Kris Hardy

Microsoft. Dell. Lenovo.

Name a leading enterprise technology company and there’s a good chance that Kris Hardy has advised them.

With the introduction of AI, many enterprise technology companies are looking to transform their products – the same way they did when the Internet of Things, Omnichannel Marketing, and Cloud Computing became mainstream.

Kris is an expert in helping enterprise technology companies adapt and transform their product portfolios when these market changes happen. What makes her such an asset to these tech companies is that she understands the people in the organization, specifically how they must work together to make product strategies successful.

In this interview, she talks about the guiding principles and key interactions, as well as how to make them happen in a positive and productive way – a bridge-builder between teams, if you will.

This is an excerpt of our conversation, but you can watch the full interview here:

When you join an enterprise technology company, what are the signs that their product portfolio needs a refresh cycle?

Kris: To me, there are two key things: the company’s financial profile and their customers’ insights.

First is the financial profile that the portfolio is generating. I’d specifically look at the rate of growth. If the company is adjusting for seasonality and the growth is still flattening (relative to competitors), then it’s a signal that the portfolio is less effective. 

The second one that’s often a blind spot for my clients is customer insight. Voice of the customer panels and market research should be on a regular cadence. These are your canary in the coal mine, where you hear customers tell you: “What you’re giving me isn’t really servicing my need.”

I see the same gap. Consumer clients often have regular research, but my enterprise clients don’t seem to do this on a regular basis. Why do you think this is?

Kris: I often don’t see ongoing research on product teams. It’s usually the 4th bullet point in the roles and responsibilities of an individual product manager. Quite often, the product manager spends the majority of their time managing the immediate project needs like, understanding product performance, and developing new features. Doing all these takes away their time to conduct market analysis or form outside teams to carry out research regularly.

If you were to wake up as an executive leading a technology product organization, how would you structure this function for your team?

Kris: I’d start with a technology synthesis person who brings in different tech ideas and ensures that the new products are practical and useful. They ensure that the product solves customer pain points in a way that aligns with the company’s goals.

Then I would have a project manager, which is ideally different from the first but oftentimes it’s the same person. They keep the team afloat by organizing tasks and coordinating the team to provide accountability. Their main goal is to make sure that product launches happen on time and within budget.

I’d also have a data analytics function that collects all important data needed for decision-making. It’s their job to spot trends, solve problems, and find windows of improvement for their product portfolio.

And then I would have an insights person who’s wholly dedicated to research, customer research, and competitive analysis. Their role is to understand what’s happening in the market in competitive landscapes and address questions from executives.

I would also ensure this insights person participates in customer conversations, hears firsthand customer experiences with the product, serves as the listening product team’s bridge to sellers, and is a touch point to what’s happening in the market itself.

I hear you and I think that bridge is critically important. But I’ve seen that there can often be friction between product and sales teams to the point where they truly don’t get along or like each other. So for this model to work, they must have a tight bond. How do you build that bond?

Kris: I think understanding the root cause of why there’s friction is the start of creating better relationships between teams. Any dynamic with disagreements like that suffers from a lack of transparency or contact needed for mutual understanding.

The product owner should walk in the seller’s shoes, truly have compassion and empathy, and understand the position that the seller is in every day. It’s not easy because they’re absorbing customer problems all the time. From there, they can understand each other and collaborate better.

What We Can Learn From Kris Hardy:

1. Research and insights must happen regularly. Large enterprise technology organizations tend to have siloed and frequent research arms. But even then, they can be disconnected from product teams.

2. The sales team is your greatest connection. Lots of times, there’s friction between product and sales teams to the point where they truly don’t get along. So for this model to work, they must have a tight bond that allows them to collaborate better. 

3. Don’t be furious, be curious. Sales teams can be gruff in their feedback and demeanor. But I found that responding to them with curiosity and asking questions gets you much further than reacting emotionally. It’s made easier when the product owner takes time to build relationships directly with sellers as people.

2. Does Your Contract Have These Clauses?

In a perfect world, contracts wouldn’t be necessary.

But in the real world, wise independent consultants use contracts to set expectations and boundaries. While an agreement that covers the scope of work and payment terms may seem enough, strange things happen. When issues arise, it can be advantageous to have certain clauses agreed to.

After talking to other consultants and reflecting on our own contracts, I wanted to share with you some often-overlooked but important clauses.

Let’s take a closer look at each one:

1. Payment Terms. Nobody wants to spend time chasing cash, so keep payment terms simple. Our preference is to be on Net 10 terms, where the invoice is due in 10 days. If the client won’t accept Net 10, then Net 30 is a viable option, but we like to offer a 2% discount on payment received within 10 days as an incentive for fast payment.

“Payment will be made by ACH. Contractor will submit invoices for services rendered no later than 30 days following the month of completion. Company shall pay Contractor’s invoice within thirty (30) calendar days of receipt following Client approval of deliverables. Contractor shall offer a discount of 2% for payment received within ten (10) calendar days following submission of an invoice to Client."

2. Termination. Consider what really matters when the contract ends. Early termination isn’t ideal for independent consultants as it takes some time to replace the income stream. To address this, I’ve seen other consultants include early termination fees to recoup all or some of the lost income.
   
   But in our case, we want to be flexible. Termination on either side can be done within 15 days. This shows that we can come in and out fast, so clients don’t have to worry about a long-term engagement.

“Company may terminate this Agreement at any time, for any reason, without liability or continuing obligation, upon written notice to the Contractor. Such termination shall be effective on the date specified in the notice. Contractor may terminate this Agreement at any time, for any reason, without liability or continuing obligation, upon fifteen (15) calendar days written notice to Company. This Agreement also may be terminated at any time upon the mutual written agreement of the Company and Contractor.”

3. Non-Competition. Non-compete clauses for independent consultants rarely hold up in court because they’re not employees under IRS standards. But if the client requires it, I strive to list very specific competitors in the contract.
   
   For example, if my client is Walmart and they require a non-competition clause, then I would try to ensure that it specifically names competitors like Target and Costco – rather than broadly restricting work with all retailers.

“For the duration of this Agreement and 12 months after its duration, Contractor agrees not to directly or indirectly engage with the following competitors of the Company:

• [Competitor 1]

• [Competitor 2]

• [Competitor 3]

This restriction applies solely to Contractor personally and does not extend to other individuals or entities affiliated with Contractor. However, no affiliated entity will engage with the listed competitors without written and prior consent from the Company.”

4. Non-Solicitation or Recruitment. This clause prevents clients from directly hiring other consultants you bring in to support your work. It typically states that the client cannot hire someone they’re introduced to through you without written permission and a recruitment fee.
   
   If you decide to add this clause, it’s also helpful to add a separate section about what the specific recruitment fee should be – whether it’s a percentage of the recruit’s salary or a fixed amount.

“Company agrees to not directly or indirectly solicit, hire, or engage any individual or entity introduced by Contractor to assist with the project during the term of this agreement or within 12 months after its termination, without obtaining prior written permission from Contractor.

If Company wishes to hire or engage any such individual or entity, a recruitment fee of 20% of the individual’s first-year salary shall be paid to Contractor as compensation.”

5. Survival. This one sounds far-fetched but it’s actually quite important. The survival clause states that if you die, your estate should get paid for the work you did.

“In the event Contractor dies during the Term of this Agreement, this Agreement shall terminate, and the Company shall pay to Contractor’s estate the compensation which would otherwise be payable to Contractor for services rendered prior to Contractor’s death.”

6. Severability. If one part of your contract is invalid, a severability clause protects you from having the entire contract made void. Without this clause, you can be exposed to more liabilities and legal headaches.

“If any term or provision of this Agreement is held to be void or unenforceable, that term or provision will be severed from this Agreement, the balance of the Agreement will survive, and the balance of this Agreement will be reasonably construed to carry out the intent of the Parties as evidenced by the terms of this Agreement.”

But remember that these are my personal opinions and anecdotal examples. You should still consult an attorney for recommendations that are right for your specific situation.

We’ve also created these starter project-based and time-based templates from the examples gathered from other consultants.

Feel free to download and edit them as you need.

Remember, the path to success is paved with continuous learning and embracing fresh perspectives.

Let's stay connected, share ideas, and elevate your consulting business.

Stay curious, friends.

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