21 Oct Whose Idea Was TARP Anway?
Whose Idea Was TARP Anyway?
During the 2008 financial crisis, our government conceived TARP (Troubled Asset Relief Program) to purchase toxic assets from financial institutions as a means to find a way out of the subprime mortgage debacle. Although the program was widely ridiculed at the time, by 2012 over 97% of the funds had been repaid to the Treasury and the overall investment stayed within budget and never exceeded 1% of GDP. Hopefully we’ve learned the necessary lessons and subsequent stabilization regulation will prevent a repeat of the near meltdown.
Of course we never challenged Uncle Sam on their use of the name, but Tenacity trademarked the term TARP™ about ten years earlier. We use it as an acronym for a process called Team Account Retention Planning. This one works too, but in a much different way. As I write this blog, three of my Tenacity colleagues, including John, are “Down-Under” in Australia facilitating TARP sessions for an important client there. G’day mates! Enjoy the Vegemite!
We’ve written before about the need to match the enthusiasm of competitors who are trying to take your clients away from you. But it is equally important to match their focus on planning and strategy development. That’s where TARP comes in and, since we are already inside the door serving the client, we should be way better at it.
We urge our clients to schedule TARP meetings 18 – 24 months prior to contract expiration. The meetings should include everyone on our side of the Web of Influence®, the output from a recent FreshEyes® Review, key client outcome reports and all executives whose sign-off will be required to approve the strategy and investment.
As facilitators, Tenacity’s primary function is to reconstruct a detailed timeline of key events that have occurred over the relevant lifespan of the contract. We probe all outcomes and offer hypotheses for ways to increase Relevant Value and construct barriers to contract exit and competitive entry. With the right people in the room, strategic and tactical renewal plans crystallize and result in enthusiastic buy-in among the client teams. The process is time efficient and builds a strong sense of camaraderie and mutual accountability among the participants.
We’re going to plan to continue doing TARP sessions in support of our clients. Let’s hope Uncle Sam won’t have to.