this trend temporary or permanent?

Permanent
What do the trends suggest for the future of your business?
Unlimited Opportunity
What could you do to respond more efectively to them?
Learn Korean faster, Netor!ing ith "O#$" members, Produce%sell Learn
Korean No product&
Cash Flow Is Everything
Loo! at your cash 'o and levels of pro(tability from each product, service
and
area of activity)
*re your pro(ts going up or don?
Up
*re they on budget or going sideays?
Loo! at the percentages) *naly+e your return,on,e-uity, return,on,
investment,
and return,on,sales)
*re they increasing or decreasing?
$f your goal is to build a great company, hy isn.t your company already
great?
/ore capital re-uired for 0mpoer netor!
Which of your products or services is selling ell today?
/y sales s!ills and 0mpoer Netor!
Which of your products and services are the most pro(table?
/y sales s!ills and 0mpoer Netor!
Which ones are doing poorly?
Which ones do you lose money on?
1rin!ing too much alchohol
$s your current business situation, positive or negative, in any area?
/ore capital re-uired
2emporary or part of a long,term trend?
Longterm
3o can you !no for sure?
*ction
3o can you (nd out?
4e5oin 0mpoer Netor! ith 6$/%7ic! 8tri+heus9Li!e 3obbs9Pro5ect *WOL
What should you then do?
/a!e :;<,<<< (rst =< days
Clarity Is the Key
Why has your business been successful in the past?
/y study of business
What have you done ell in the past that has been responsible for your
success to date?
/y study of business, mar!eting and sales)
What are the most important s!ills and competencies that your company
possesses today?
/y study of business, mar!eting and sales)
What are the very best products and services that you ofer right no?
/y study of business, mar!eting and sales)
Loo! at the people around you) Who are your most valuable people?
*>3 8hoppette and University of /aryland 6*3 money
Who are no longer as valuable as before?
Who represents a net loss or detriment to your business?
6e prepared to as! and anser the brutal -uestions)
The Customer Is the King
Who are your best customers today?
Koreans, single males, and business opportunity see!ers
What and here are your best mar!ets?
*sia and the internet
What do your customers li!e the most about hat you do for them?
/a!e them happy
What do they compliment the most of hat you ofer or do for them?
/a!e them happy, tal! alot and very smart in business and life
What is your number one area of customer satisfaction?
8ales and presentation
What do your customers li!e the least about hat you do?
When $?m angry or tired
What do they complain about the most?
Not having hat they ant available for purchase
What is it that you sell that your customers and potential customers prefer to
buy somehere else, rather than from you?
Identify Your Personal Strengths
Loo! at yourself honestly) What are your on personal best s!ills, -ualities
and abilities?
0nglish, 8tudying, strategic planning, mar!eting and sales
What are the most important things that you do at or!, and for your
company?
1aily facility improvement, strategic planning, mar!eting and sales
What are the most valuable contributions you ma!e personally to your
business?
$ncrease sales, customer service, and customer retention
Start Where You Are:
;) What is or!ing the very best in your business today?
8ales and mar!eting
What parts of your business ma!e you the happiest?
/ar!eting
@) What.s not or!ing in your business?
Waiting on capital
What causes you the most aggravation and frustration?
Waiting on capital
=) What are your most important products and mar!ets?
/e Asales%mar!eting%english s!illsB, 0mpoer Netor! in th U8%8outh
Korean mar!ets
What accounts for the largest portion of your revenues?
*>3 and 0mpoer Netor!
C) Who are your most important people?
*>3 and 0mpoer Netor!
Who are the people ho account for most of your results?
*>3 and 0mpoer Netor!
D) What are your special talents and s!ills?
What is it you do that accounts for most of your success?
E) What are the ma5or changes ta!ing place in your mar!et?
What changes should you ma!e to compensate for them?
F) What are your most treasured assumptions about your people, customers,
mar!ets,
products, services and yourself?
What if one of them asn.t true?
What ould you do then?
Imagine Starting ver
Gero,based thin!ing re-uires that you apply this HscraperI mentality to every
part
of your business) Jou do this by as!ing this !ey -uestionK
Is there anything that you are doing in your business that,
knowing what you now know, you wouldnt start up again today, if you
had it to do over?
$nstead of struggling to determine ho you might modify, change, (L, revise,
improve or alter some business function, you instead as!,
H$f $ as not doing this today, ould $ start it up again today, knowing what I
now know?
2o start ith, is there any product or service that you ould not bring to the
mar!et, ofer or sell, if you had to do it over again, starting today?
8ince M<N of your products and services are probably going to be obsolete
ithin the neLt D years, there
may be products and services you are ofering today that, because of
changed mar!et
conditions, you ould not introduce again today, if you had to do it over
again, knowing
what you now know) 2hese products or services are prime candidates for
discontinuation
or divestiture)
$s there any person in your business that you ould not hire, assign, appoint,
go
to or! for, or become associated ith if you had to do it over again today?
/ost of your problems in business ill come from attempting to or! ith or
around a diOcult person,
ho !noing hat you no !no, you ouldn.t get involved ith again
today)
Who does this bring to mind?
$s there any supplier, ban!er or vendor that you are dealing ith today that,
!noing hat you no !no, you ouldn.t get involved ith again today, if
you had to
do it over?
Sin!e many of your "usiness relationshi#s will not wor$ out over
time% you
must "e #re#ared to !ontinually reevaluate them% es#e!ially if they
are !ausing you any
#ro"lems or frustrations&
Analy'e Your Customers
$s there any customer that you are selling to or servicing today that, !noing
hat you no !no, you ouldn.t ta!e on again as a customer?
/any companies are as!ing this -uestion about their diOcult customers and
deciding to let them go)
8ometimes, one of the smartest things you can do is to H(re your customers)I
0ncourage
them to go and deal ith someone else ho ould be more appropriate for
them)
Assess Your (usiness #erations
$s there any expenditure in your business that you ould not authori+e again
if
you had it to do over?
$s there any process, procedure or activity that, !noing hat you
no !no, you ouldn.t start up again, or get into, if you ere ma!ing the
decision
today, !noing hat you no !no?
$s there any advertising, mar!eting or selling methodology or eLpense that
!noing hat you no !no, you ouldn.t start up again today, if you had to
do it
over?
Keep as!ing, HWhat.s or!ing?I
and HWhat.s not or!ing?I
Pay Attention To The Indi!ators
Jou can alays tell hen you are in a +ero,based
thin!ing situation because it
causes you continuous stress, aggravation,
frustration, negativity and unhappiness) Jou
thin! about it continually) Often you bring it home at
night and discuss it at the family
dinner table) 8ometimes it ill even !eep you aa!e
at night)
Whenever something is not or!ing, or not or!ing
out the ay you eLpected,
or causing you stress, (nancial losses, aggravation,
or irritation, as!,
Knowing what I now know, would I get into this
again today if I had to do it over?
$f the anser is HNo&I then your neLt -uestion is
How do I get out and how fast?
The )e!ision Is Inevita"le
3ere.s an important point) $f something is not or!ing, eventually you ill
have to
get out of it) Jou ill have to let the person go, discontinue the product or
service,
eliminate the activity or eLpense, or change the method of operation) $t is
only a matter of
time) $t is not going to get better all by itself) *nd every single eLecutive ho
(nally
decides to get out of an unhappy situation says afterards, H$ should have
done this a
long time ago&I
A##ly This A##roa!h Continually
Pra!ti!e 'ero*"ased thin$ing as a +go forward, method for the rest
of your
"usiness !areer& A##ly it to everything you do% to every #art of your
"usiness% every single
day& A##ly it to every #rodu!t% servi!e% #ro!ess% #ro!edure and
#erson and "e sure that%
$nowing what you now $now% you would get into it again
today if you had to do it over &
If not% get out% and as fast as you !an&
)raw A -ine .nder the Past:
;) $magine starting over again in every part of your businessP is there
anything you
are doing that, !noing hat you no !no, you ouldn.t start up again
today?
@) $s there any person in your business life ho, !noing hat you no !no,
you
ouldn.t hire, assign, promote or otherise get involved ith again today,
!noing hat
you no !no?
=) $s there any product or service that, !noing hat you no !no, you
ouldn.t
bring to the mar!et again today?
C) $s there any investment that you have made that, !noing hat you no
!no,
you ouldn.t ma!e again today?
D) $s there any business activity or process that you are using that, !noing
hat you
no !no, you ouldn.t start up again today?
E) $s there any customer or mar!et that, !noing hat you no !no, you
ouldn.t
ta!e on or get into again today, if you had it to do over?
F) $s there any career decision that you have made that, !noing hat you
no
!no, you ouldn.t ma!e the same ay if you had it to do over again today?
Start With The (asi!s
2he starting point of business analysis is for you to as!K
HWhat business am $ in?I
What business are you really in?
What business are you really, really in?I
$ soon reali+ed $ as in the Hgoal
a!hievement "usinessI A/e 2OO&
Q04#B)
/y business as helping people to
achieve their personal and business
goals faster by providing them ith
practical ideas
that they could use immediately to get
better results)
2his insight led me from tal!s and
seminars into audio and video
recording,
boo!s, training programs and $nternet
based e, learning on a variety of
sub5ects, including the development
and presentation of the 2urbostrategy
Process)
The Customer As Center#ie!e
HWho is my customer?I
Who is the person ho buys from you today? 1escribe your customer in
detail)
What is the age, income, education, position, attitude, location and interest of
your ideal customer?
/any companies are not eLactly sure of the anser to this -uestion) 2hey
have at best an
unclear picture of the psychological and demographic characteristics of their
customers)
Who will your customer be tomorro, if current trends continue?
Who should your customer be, if you ant to be successful in the mar!ets of
tomorro?
Who could your customer be if you ere to change, improve or upgrade your
product or service
oferings?
)etermine What You Sell
Jour neLt -uestion isK HWhy does my customer buy?I
What value, bene(t, result or diference does your customer see! or eLpect
to en5oy as a result of doing business
ith you?
Of all the various bene(ts that your products or services ofer your
customers,
hat do your customers consider to be more important than anything else?
1o you !no?
Jour ability to de(ne and promote this uni-ue bene(t is the real !ey to
competitive
advantage and mar!et success) Jou neLt -uestion isK
HWhat do e do especially ell?I
What do you do better than any of your competitors?
Where are you superior?
"ustomers only buy from a particular company because they feel that, in
some ay, that company ofers something
that is superior to that of any other ofering)
What is your area of eLcellence?
Rac! Welch of #eneral 0lectric as famous for saying, H$f you don.t have
competitive advantage, don.t compete)I 3is philosophy as that #eneral
0lectric ould
be number one or number to in every mar!et segment in hich they
competed, or they
ould get out of that mar!et)
*re you number one or number to in your mar!et?
"an you be?
What is your plan to achieve this mar!et position?
)e/ne Your Com#etitor
2he neLt -uestion, hich e ill deal ith eLtensively in "hapter ;<, isK
HWho is your competition?I
Once you have identi(ed your competition, you must as!,
HWhy does your potential customer buy from your competition, rather than
from you?I
What value or bene(t does he perceive that he receives from someone else
that he does not feel he
receives from you?
3o could you ofset this perception?
Set Clear 0oals
$n performing an eLamination of your business, you must as! continually,
HWhat are my goals?I
What are you trying to accomplish?
$f you are clear about your goals, hat is holding you bac! from achieving
them?
Jou need clear, ritten, measurable, time,bounded goals for every part of
your
business and personal life) Jou need short,term, medium,term and long,term
goals) 0ach
goal must be in riting, ith plans for its accomplishment) Jou can.t hit a
target that you
can.t see) *naly+e everything you do in the course of a day or a ee!)
What are the @<N of your activities that could account for M<N or more of
your results?
8ometimes, 5ust ;<N of your activities, if you ere to pursue them
aggressively, could account for S<N of your
results)
What might they be?
(e!ome A!tion*riented
What actions should you ta!e immediately in response to the ansers to
these
-uestions?
What is the very (rst thing you should do right no to increase your sales
and
improve your mar!et position?
*nother good -uestion you should as! yourself isK
HWhy am $ in business at all?I
Why do you eList?
What social purpose does your company serve?
What loss ould occur to society if you ceased to do business altogether?
$magine that you had to go in front of a government tribunal each year to
5ustify
your continued eListence)
What ould you say to the tribunal in terms of ho you serve, help, or ma!e
a
diference in the lives or or! of your customers to 5ustify staying in
business?
2hese are !ey -uestions that you need to as! and anser for your business
on a
regular basis) Jou should as! and anser these -uestions for yourself, as
ell) $f you are
unclear or inaccurate in your ansers to any of them, the health of your
enterprise could
be in 5eopardy)
Condu!t A (asi! (usiness Analysis:
;) What are your goals for your business?
What are you trying to accomplish?
@) Who is your ideal customer?
1escribe him or her accurately)
=) Why does your customer buy from you?
What special bene(ts or advantages do you ofer that your competitors
don.t have?
C) What business are you really in?
1escribe your business in terms of hat you do for your customer, hat
results you get)
D) What are the @<N of your activities that could account for M<N of your
results?
E) What is your competitive advantage, your Harea of eLcellence?I
$n hat ays are you superior to S<N or more of your competitors?
F) What speci(c, measurable actions should you ta!e immediately in anser
to the above -uestions?
Cha#ter Four 1 )e!ide E2a!tly What You Want
he world has the habit of making way for the man whose words and actions
show that
he knows where he is going! ANapoleon 3illB
2urbostrategy begins ith your deciding eLactly hat you ant to accomplish
in
the !ey areas of your business life) Once you !no your goals in each area,
you can then
decide upon the best steps you can ta!e to get there)
The 0SPA 3odel
Jou can use the #O8P* /odel as a guide for strategic planning) 2hese (ve
!ey
thin!ing tools form the basis for successful business operations)
(egin With The End In 3ind
2he (rst letter, H#I stands for 0oals) 2hese are the ultimate results that you
ant
to achieve) Jour goals are the end targets that you aim at throughout your
business year
or planning period) Jour goals are your sales, pro(ts, groth rate, mar!et
share, or
percentage of return on assets, e-uity, investment or sales) #oals are alays
measurable)
What are yours?
Ste#s on the Stair!ase
2he second letter, HOI stands for "4e!tives) 2hese are the steps you ill
have to
ta!e to achieve your goals) 2hey are li!e the rungs on the ladder to get to the
top)
Jour business ob5ectives can be speci(c rates of return from advertising,
levels of sales of
certain products and services, number of items shipped and billed, monies
collected and
cost levels for certain activities) * loer defect rate or a higher sale amount
per customer
can be ob5ectives on the path to achieving the main corporate goals) What
are your
interim ob5ectives?
5ow to 0et There
2he letter H8I stands for Strategies) 2hese are the diferent approaches that
you
can ta!e to achieve your ob5ectives and reach your goals) >or eLample,
achieving a
speci(c level of pro(tability ill re-uire producing and selling speci(c
-uantities of
products or services to a speci(c mar!et in a speci(c ay) 2here are many
diferent ays
to go about accomplishing these ob5ectives) 2he ay you choose is your
strategy, and
may determine the success or failure of your enterprise)
1o you produce, mar!et, sell, deliver yourself, or do you outsource some part
of
the process? 1o you sell direct, via retail, direct mail, catalog or $nternet? 1o
you charge
more, charge less, up,sell, cross,sell or discount? 1o you enter certain
mar!ets and
abandon others? What is your strategy? $s it or!ing?
Planning For Su!!ess
2he letter HPI stands for Plans) 2hese are your blueprints for achieving your
goals) Jour plans are composed of step,by,step lists of eLactly hat you ill
do, day by
day, to get from herever you are to herever you ant to go) Plans are
alays bro!en
don by se-uence and priority)
8ome things have to be done before others can be done) 8ome things are
more important
than others in achieving the goal or ob5ective) When your plan is organi+ed by
se-uence
and priority, you can accomplish much more in less time)
6usiness life consists almost entirely of pro5ects, one after the other) * pro5ect
can
be de(ned as a multi"task #ob, a 5ob made up of many small 5obs, each of
hich has to be
done properly to complete the larger tas!) Jour ability to plan, organi+e and
complete
multi,tas! 5obs, ever larger and more compleL, is the most important single
element of
your success, in any (eld)
)evelo# a (ias for A!tion
2he last letter in the #O8P* process, H*I, stands for A!tions) 2hese are the
speci(c tas!s
that you are going to complete to carry out the plans to implement the
strategies to
accomplish the ob#ectives to achieve your goals)
0very important tas! must be clear, measurable and time bounded) $t must
be assigned to
a speci(c person ho is -uali(ed to perform the tas! correctly, on time and
on budget)
$hat gets measured gets done!
Fo!us on Pro/ta"ility
2he central purpose of 2urbostrategy is to boost your cash 'o and pro(ts,
and
to increase your return on the money invested in your business) 2he aim of
strategy is to
generate a higher level of cash 'o and pro(tability than you ould reali+e
ithout the
strategy, or ith your previous strategy) $n short, it is to make more money
than you are
ma!ing right no from the ay that you are doing business today)
2he essential resources of people, money and talent that you need to
succeed in
your business are alays limited) 2hey must be focused and concentrated for
maLimum
results) 2his is hat a good strategy enables you to do)
Four Ways to Im#rove Your (usiness
8etting strategy re-uires ma!ing hard decisions in four areasK >irst, you must
decide hat you are going to do more of)
What.s or!ing?
What is selling ell?
What products, services and activities are the most pro(table?
8econd, you must decide hat you are going to do less of)
What.s not or!ing?
What contributes very little to groth and pro(tability?
What should you discontinue or eliminate based on the realities of today.s
mar!et and today.s customers?
What can you do to reduce costs in areas here they contribute very little to
results?
2hird, hat are you going to start doing that you.re not doing today?
What ne products, services or activities should you introduce if you ant to
increase your sales and
pro(tability, or improve and streamline your activities?
>inally, hat are you going to stop doing altogether?
4emember, the critical resources of time and money are alays scarce) 2he
only ay you can improve results is
by discontinuing certain activities altogether) Jou can then channel those
resources into
areas here they yield higher levels of business results)
Clarity is the !ey to strategic success) 2he more time you ta!e to be
absolutely
clear about ho you are, and hat you ant to accomplish, the more
successful and
pro(table you ill be)
)e!ide E2a!tly What You Want:
;) What are your speci(c, measurable long,term goals for sales and
pro(tability in
your business?
@) What are the speci(c ob#ectives of sales, staOng, production, delivery and
customer development that you ill have to achieve to accomplish your
goals?
=) What are the various ays that you can meet your ob5ectives and achieve
your
goals?
What is the best strategy for you in today.s mar!et?
C) What should you do more of and really focus on to increase your sales and
pro(tability?
D) What should you do less of, based on your current eLperience?
What.s not or!ing?
E) What should you start doing that you are not doing today?
What opportunities are available to you?
F) What should you discontinue, and stop doing altogether, so that you can
free up
resources for more pro(table activities?
Cha#ter Five 1 )esign Your Ideal Future
$e have been endowed with the capacity and the power to create desirable
pictures within
and to %nd them automatically printed in the outer world of our
environment! ARohn
/c1onaldB
8ome time ago, $ conducted a strategic planning session for the senior
eLecutives
of a :;F@ billion dollar company) 2he organi+ation as going through a period
of
considerable turbulence, change, competition and ne government
regulation) 2here had
been lay,ofs, (rings, donsi+ing and divestments) /y clients ere the top
eLecutives
ho had survived the recent turmoil, and the blood letting as not yet over)
$n these
circumstances, they ere both orried about the future and distracted in the
present)
Create A Five Year Fantasy
2o get them centered and focused, $ began the strategy session ith a
process that
$ call +Ideali'ation&, $n this process, hich you can use yourself, $ had the
members of
the top team create a H(ve year fantasy)I
HLet us put aside the current situation for the moment,I $ suggested)
H$nstead, tell
me hat this company ould loo! li!e (ve years from no if it as perfect in
every
respect?I
2his eLercise forced them to ta!e their attention aay from the problems of
the
present and focus their thin!ing on the possibilities of the future)
*s e ent around the room, each person contributed an idea about hat
the
company ould loo! li!e if it ere perfect) $ rote each idea on a 'ip chart
and taped
the pages onto the alls here everyone could see them) $n less than half an
hour, e
generated @F ideal descriptions)
We then voted on these ideali+ed goals and organi+ed them by priority) We
ended up
ith a series of clear ob5ectives, including Hhighly pro(table, tremendous
mar!et
reputation, high stoc! price, top leadership, fabulous customer service, great
place to
or!, best management, rapid groth rate and top reputation in the
industry,I among
others)
Thin$ In Terms f Possi"ilities
$ then as!ed them, H*re these goals possible?I One by one, they agreed that
all of
these goals ere possible in (ve years) 2hey might not be achievable in one
or to years,
but in (ve years, every one of them could be accomplished ith ill and
determination)
We came out of that session ith everyone revitali+ed and committed to
or!ing
on achieving one or more of those (ve,year fantasies) Over the neLt to
years, the
company completely reorgani+ed) 2hey did more of some things and less of
others) 2hey
started doing things that they had not done in the past, and they stopped
certain activities
altogether) 2hey too! complete control of their corporate destiny and
changed it)
Peter 1ruc!er once rote, HWe greatly overestimate hat e can accomplish
in one
yearP but e greatly underestimate hat is possible for us in (ve years)I
Thin$ A"out The Future
Future*orientation is a !ey element of strategic planning and strategic
thin!ing)
$t is a ma5or responsibility of leadership and top people in every area) Only
the leader can
thin! about the future) Only the leader can plan for the future) 2here is no
one else in the
organi+ation ho can do it, and if the leader does not thin! about and plan for
the future
as an ongoing part of his 5ob, it ill not be done) *s they say in *las!a, HOnly
the lead
sled dog ever gets a diferent vie)I
3o often and ho ell the top people in the company thin! about the future
largely
determines the success or failure of the business) H$f you don.t !no here
you.re going,
any road ill ta!e you there)I
2he development of the -uality of future,orientation re-uires that you
continually
create an ideal image of your company some time in the future) You #ro4e!t
forward in
your mind 6*7 years and imagine that your !om#any is #erfe!t in
every res#e!t& You
de!ide e2a!tly how mu!h you would "e selling and earning at that
time& You imagine
your ideal sto!$ #ri!e% your ideal re#utation in the mar$et% your ideal
wor$ situation and
your ideal human environment&
(a!$ From The Future Thin$ing
Once you have a clear picture of your
ideal future, you then return mentally
to
your current situation and thin! about
hat you ould have to do, starting
today, to turn your future vision into a
current reality) 2his is called, Hbac!
from the future thin!ing)I
/a!e a list of all the things that ould
have to happen for you to reali+e your
fantasy sometime in the future) $t is
ama+ing ho your perspective
changes hen you
loo! bac! from the future, eLactly as if
you ere loo!ing bac! from the top of
the
mountain to yourself don in the
valley, and seeing the eLact route you
ill have to
follo to get to the top)
-eaders 5ave 8ision
$n ==<< studies of leaders revieed by Rames /acPherson, searching for the
common denominators of leadership throughout the ages, the one -uality
that all the
studies had in common as the -uality of vision) Leaders have visionP non,
leaders do
not)
2o become a visionary re-uires that you develop the ability to imagine,
de(ne,
articulate, share and inspire other people ith an eLciting picture of the
future) Jou get
everyone in your business committed to ful(lling this vision, and to or!ing
toard it
every day) 2his is the !ey to leadership, and to building a great company)
*ristotle rote, +We "e!ome what we re#eatedly
do&, Jou become a leader by thin!ing
the ay leaders thin!, both in your business and in your personal life) Jou
become a
leader by thin!ing about the future, and ho you can ma!e it a present
reality)
9ow% 3ore Than Ever
6ut it is in times of rapid change, and turbulence in the mar!et, that an
eLciting
vision of the future becomes more important that ever before) * vision can
become the
force that binds people together into a solid team) $t can give meaning and
purpose to
or!, even hen times are tough and pay increases are not possible)
2here are many ays you can approach the development of a vision for your
organi+ation) Perha#s the very "est vision for your !om#any in!ludes
two $ey
!om#onents& First% it is fo!used on your !ustomers and on doing
something for them that
!hanges and im#roves their lives or wor$ in some way& Se!ond% it
!ontains a !ommitment
to excellence % to "e the very "est at doing what you do for your
!ustomers& These are the
$eys to vision&
Jour vision is to Hbe the best&I at the most important thing that you do for
your
customers) Jour vision is to serve your customers in such a ay that you are
seen as
superior in a particular product, service or activity) $magine that you could be
!non as
outstanding in any one thing that you do for your customers) What ould it
be? Jour
anser can be the starting point of a vision for your business that changes
your future
completely)
Your Personal 8ision
Jou need a vision for yourself as ell) Pro5ect forard D years in your
imagination) $f your future ere perfect in every ay, hat ould it loo! li!e?
$f your
income, your position in your company or (eld, your family life, your health,
your 5ob
and every part of your life ere ideal in every ay, ho ould it be diferent
from today?
Once you are clear about your vision, for yourself and for your business, the
only -uestion you as! is,
&ow do I make it a reality?
2op people thin! continually in terms of how? 2hey thin! in terms of ta!ing
action, of what can be done)
Once you have clari(ed your vision, and determined hat you ill have to do
to ma!e it a reality, you then do something every day to move you toard
the creation of
your ideal future) Jou ta!e complete control of your destiny) *s 1ruc!er rote,
H2he very
best ay to predict the future is to create it)I *nd the starting point is vision)
)esign Your Ideal Future:
;) What is your vision for your company? Pro5ect forard and imagine that
your
business as ideal in every ay) What ould it loo! li!e?
@) What is your vision for yourself? $f your life and career ere ideal in every
ay,
hat ould it loo! li!e?
=) $deali+e in each area of your business) $f your products, services, sale and
pro(tability ere perfect, hat ould they loo! li!e?
C) $deali+e ith regard to your people) $f your staf ere ideal in terms of
s!ills,
abilities, personalities and results, ho ould they be diferent from today?
D) $magine that a ma5or maga+ine as going to rite a story about your
company)
What ould you ant them to say?
E) Pro5ect forard (ve years and then loo! bac! to today from that vantage
point)
What ould you have to change today to create your ideal future?
F) $n hat one area ould it be most helpful to sales and pro(tability if your
company ere idely !non as Hthe best?I What steps could you ta!e
immediately to
begin earning that reputation?
Create A 3ission Statement:
;) 1etermine your personal reasons for doing hat you do) What gives you a
sense
of meaning and purpose in life?
@) 1ecide upon the =,D !ey values upon hich your company is based)
$nvolve other
people in the discussion)
=) 1e(ne the actions and behaviors that people ill engage in, both inside
and
outside the company, that are consistent ith your values)
C) 1esign a mission statement, an ideal description of hat your company
ants to
accomplish for its customers sometime in the future)
7& Write out a list of your values, and hat they mean, plus your mission
statement,
and share them ith your staf and customers)
:& "reate a personal mission statement for your career) What do you ant to
accomplish, and ho do you ant to be !non?
;& "reate a mission statement for yourself and your family) What is it that you
ant
to accomplish or achieve ith your family in the years ahead?
Cha#ter Seven 1 <einvent Your rgani'ation
'very man of genius sees the world at a di(erent angle than his fellows!
A3aveloc! 0llisB
Rac! Welch of #eneral 0lectric once said, H$f the rate of change outside your
organi+ation is greater than the rate of change inside your organi+ation, then
the end is in
sight)I
$n times of turbulence, you should be prepared to reinvent your business as
often
as necessary as your eLternal orld changes)
*s an eLercise, imagine that you ere starting your business over again
today)
What ould you get into, or not get into?
(undle of <esour!es
>or greater perspective, stand bac! and vie your business as a bundle of
resources and
capabilities, li!e a (re hose of talent and ability that can be aimed in many
directions to
achieve diferent results) $nstead of limiting yourself to seeing your business
as an
organi+ation that is designed to perform speci(c functions, producing and
selling certain
products and services, thin! of it as being capable of doing a variety of things
completely
diferent from hat you are doing today)
The 0reat Fire
*s you thin! about reinventing your business, imagine that your company
burned
to the ground hile you ere aay) When you arrived at the scene, you found
that all
your staf ere safe and standing around in the par!ing lot)
*s it happens, there is unoccupied oOce space available across the street)
Jou
can immediately move into the ne space and start your business ane)
3ere is the
-uestionK Which of your products and services ould you begin producing
and
distributing right aay, and hich ones ould you not start up again,
!noing hat you
no !no?
E2amine Every <elationshi#
$f you ere starting your business over again today, completely free from any
encumbrances of the past, hich customers ould you call (rst, and hich
ones not at
all? Which vendors, suppliers, ban!ers or other people ould you immediately
get in
touch ith, and ho ould you call later, if at all? What ould you do (rst?
What ould
you do second? What ould you not start up again, !noing hat you no
!no?
<einvent Your Sta= <elationshi#s
No, let.s go bac! to the par!ing lot) Let us assume that all of your people
are
safe and standing around aiting for instructions) Which of them ould you
ta!e across
the street ith you to the ne business, and hich ones ould you leave in
the par!ing
lot? Who ould be the (rst and most important person hose services you
ould ant to
secure? Who ould be the second most important? Who ould be third? *nd
so on)
E2amine Your rgani'ation
$f you could reinvent your business, hat ould you do more of? What ould
you
do less of? What ould you start doing that you are not doing today? What
ould you
stop doing altogether?
$n reinventing your organi+ation, as! yourself, HWhat are my most important
talents, s!ills, abilities and core competencies, and what else could $ do ith
them? Who
are my best people and hat else could they do? Keep thin!ing about ho
you ould
reinvent your business if you ere starting over) 2his ill !eep you on the
cutting edge of
creativity and innovation)
Thin$ In Terms of E2!ellen!e
2he !ey -uestions in reinvention are, HWhat could you be absolutely eLcellent
at
doing in today.s mar!et?I Where could you be the best? Where could you
achieve orldclass
-uality? Where could you be better than S<N of your competitors? H
2he mar!et only pays eLtraordinary reards for eLtraordinary products and
services) Where and ho could you do hat you do in an eLtraordinary
fashion?
<einvent Your Career
>inally, thin! about reinventing yourself and your career on a regular basis, as
ell) $f you ere starting over again today, hat ould you do more of, less
of, start or
stop? What ould you get into or get out of?
$f you ere starting your career over again, hat additional !noledge and
s!ills
ould you ant to have? What can you do, starting today, to ac-uire those
!ey s!ills?
$magine that you could do a variety of 5obs) What ould you really li!e to do
ith your
life?
8ince you ere going to have to reinvent yourself regularly throughout your
career, it is
very important that you thin! about ho you ould do it ell in advance of
hen it
becomes necessary)
<einvent Your rgani'ation:
;) $f you ere starting your business over again today, hat ould you do
diferently?
@) $f you ere starting your career over again today, hat ould you get
into, or out of?
=) $f your business burned to the ground and you could only ofer one of
your products or services, hich one ould it be?
C) Who are your most important customers, the ones ho you ould
immediately move to ta!e care of, if you ere starting over?
D) Who are your most important people, both inside and outside of your
business?
E) What are your most important contacts and business relationships, the
ones you ould ant most to preserve if you ere starting over?
F) $f money ere no ob5ect, hat steps ould you ta!e today to reinvent
your business?
Cha#ter Eight 1 Sele!t the <ight Peo#le
&ere lies a man who know how to enlist into his service people better than
himself!
A*ndre "arnegie ,epitaphB
2he people in your company are the most important parts of your business)
*ll or!, all
performance, all results come from them, both as individuals and hen they
or!
together in teams of some !ind) 2he manager.s output is the output of his or
her team,
and of the individual team members)
$n business, people come (rst) Robs, activities and results are only achieved
after
the right people are in place) Rim "ollins says in his boo!, )ood to )reat, that
the !ey to
building a great business is, H(rst, get the right people on the bus, and
second, get the
rong people of the bus)I *ny other approach is bound to fail)
Two Key >ualities to -oo$ For
2he best people have to -ualities) >irst, they can be counted on to get the
5ob
done, to get it done ell and to get it done in a timely fashion) 8econd, they
get along
ell ith others) 2hey are good team players)
Jou should apply *ero"based thinking to each person ho reports to you on a
regular basis) "ontinually as!, HKnoing hat $ no !no, ould $ hire, assign
or
promote this person again, if $ had to do it over?I
$f the anser is HNo,I then your neLt -uestion is, H3o do $ remove or replace
this
person, and ho fast can $ do it?I
What do you ant and need those results to be?
Once you are clear about the results you desire, set speci(c measures of
performance on each 5ob, and each tas!) 3o ill you and the candidate
!no hether
or not the 5ob has been done properly? 4emember, HWhat gets measured,
gets done)I
*nd, H$f you can.t measure it, you can.t manage it)I
Sele!t the <ight Peo#le:
;) 4an! every one in your company on a scale from ;,;<, ith ;< being the
highest, on their competence at their 5ob)
@) 4esolve to build a team of highly motivated, competent and positive
employees to
help you get the results you need)
=) 2hin! through each ne 5ob or hire carefully in advance) Write out the
description
clearly)
C) $ntervie at least = candidates for a ne position) $ntervie the candidate
you
li!e at least = times, in three places, and have him or her intervieed by at
least =
other people)
D) "hec! references carefullyP see! the fatal 'a or ea!ness that ould
ma!e the
candidate unsuitable)
E) 3ire only positive, li!able peopleP they ma!e the best team players)
F) 4esults are everythingP continually emphasi+e and eLplain eLactly hat
results are
eLpected from each person)
Cha#ter 9ine 1 3ar$et 3ore E=e!tively
+ecause its purpose is to create a customer, the business enterprise has two
, and only
these two" basic functions- marketing and innovation! .arketing and
innovation produce
results/ all the rest are costs! APeter 1ruc!erB
*ll business strategy is ultimately mar!eting strategy) Whenever you are
orried about the
health or future of your business, get bac! to thin!ing about mar!eting and
selling) >ocus
single,mindedly on increasing sales and revenues) "utting eLpenses and
controlling costs
is an ongoing necessity, but you can.t cost,cut your ay to business success)
Jou have to
increase cash 'o, and this only comes from selling more of your products or
services)
9o matter how !hallenging or !om#etitive the e!onomy a##ears% as
mu!h as
?@A of your mar$et is still unta##ed& 2here are almost alays hidden
opportunities
around you) Jour ability to uncover and ta!e advantage of those opportunities
is the true
test of competence as an eLecutive or as a business)
)e!ide Who You Are and What You )o
0peciali*ation re-uires that you focus on speci(c products or services,
speci(c
mar!ets or speci(c customer needs) Jou must (ght the temptation to try to
ofer too many
products and services to too many customers in too many areas) Jou must
speciali+e,
both in your on mind, and in the mind of your customer)
What is it exactly that your product or service is designed to achieve, avoid or
preserve for your customer? What are the core competencies or proprietary
methods or
technologies that enable you to speciali+e in this area? What speci(c problem
or need can
you solve or satisfy for your customer? *nd of all the diferent results you can
get ith
your business, here do you, should you, could you speciali+e?
See Yourself As A (usiness
$n your personal life, you should as! the same -uestions of yourself as ell)
What
is your personal area of speciali*ation? $n hat ay is your or! superior to
your
competitors? What is the ideal position or area of responsibility for you to
apply your
talents? Where should you be concentrating your energies to get the very
best results and
greatest reards possible?
0specially, you should continually as! yourself, $hat is it that I do very, very
well?
What is your personal area of eLcellence? What could it be? What should it
be?
-oo$ing Ahead
Loo!ing into the future of your business or industry, hat ne competencies
do you need
to develop to lead your (eld in the months and years ahead? What additional
!noledge
and s!ills do you need to ac-uire? What are those fe tas!s, hich, if you did
them in an
eLcellent fashion, ould have the greatest positive impact on your career? $n
hat areas
could be paid the very most for the application of your special talents and
abilities? 2his
-uestion is 5ust as relevant for you as it is for your company)
3ar$et 3ore E=e!tively:
;) 1ecide today to dominate your (eld, to be the best at mar!eting and
innovation in your product or service area) What is the (rst step you should
ta!e?
@) 1etermine your area of speciali+ation, by product or service, mar!et or
type of customer) What should it be? What could it be?
=) 3o do you diferentiate your product or service from those of your
competitors? $n hat ays are you superior to anyone else? What could it be?
What
should it be?
C) What are you best mar!et segments? Where are your highest probability
customers? Who can bene(t the most from using hat you sell?
D) 3o can you organi+e your business so that you concentrate your
mar!eting and selling eforts on those customers ho can buy and pay faster
than any
others?
E) What additional products, services, !noledge or capabilities ill you
need to dominate your mar!ets in the months and years ahead?
F) What should you immediately start doing more of, less of, start or stop
to ad5ust to the current mar!et?
Cha#ter Ten 1 Analy'e Your Com#etition
1oncentrate your strengths against your competitors relative weakness!
A6ruce
3endersonB
Know Your Enemy
3ere then is a -uestion for youK Who is your competition? 0Lactly? Jour
choice of
competitor determines almost everything you do in your mar!et, 5ust as the
choice of an
adversary determines everything a general does in the process of conducting
military
operations)
)etermine Their (uying 3otives
Once you have determined hy it is that people buy from you, you must then
as!
and anser, HWhy do people buy from my competitors?I What value or
bene(ts are your
potential customers convinced that they receive hen buying from your
competitor rather
than from you?
What are your competitor.s !ey strengths? What are his areas of
speciali+ation,
diferentiation, segmentation and concentration? What does your competitor
have that
you don.t have? What does he ofer that you don.t ofer? What is he doing
more of or
better than you? What is his uni-ue selling proposition?
=set Their Advantages
*s you study your competitors, loo! for ays to ofset or neutrali+e the
advantages
their customers perceive them to have) What are your competitor.s
ea!nesses? 3o can
you eLploit these ea!nesses? What do you do better than they do? $n hat
ays are
your products or services superior to their oferings? $n hat areas do you
have a distinct
advantage over your competitors? What can you do to ofset your
competitor.s strengths
and maLimi+e your advantages? 3o can you better position yourself against
your
competitors in a tough mar!et?
2he more time you ta!e to study and understand hy and ho your
competitors
are successful in selling to your customers, the more li!ely it is that you ill
(nd an
opportunity to ta!e aay their mar!et share) *s 8un 2+u says in he 2rt of
$ar, H$f you
!no both yourself and your enemy, you ill prevail in a hundred battles)I
Analy'e Your Com#etition:
;) Who is your competition for hat you sell, ith the eLact customers you
are
trying to attract?
@) What ould happen if you changed your oferings in such a ay that you
targeted
a diferent group of customers, one that ould be easier to sell to?
=) Why do your potential customers buy from your competitors? What
advantages do
they perceive?
C) What is your competitor.s uni-ue selling proposition? What special feature
or
bene(t does his product or service have that yours does not?
D) $n hat ays are you superior to your competitors? What can you ofer
that they
cannot? 3o can you emphasi+e this advantage in your sales and mar!eting
eforts?
E) Where is your competitor vulnerable? 3o could you eLploit this to your
advantage?
F) 3o could you alter your mar!eting strategy in such a ay that you could
achieve
dominance in a particular area, ith a speci(c customer or mar!et segment?
Cha#ter Eleven 1 )o It (etter% Faster% Chea#er
he man who comes up with a means for doing or producing almost
anything better,
faster or more economically has his future and his fortune at his %ngertips!
AR) Paul #ettyB
2he most important single determinant of your success is your area of
competitive
advantage) $t is more important than all other factors) $t determines the rise
or fall of your
business, your level of pro(tability, your position in the mar!etplace and
everything else
you accomplish)
Jour competitive advantage must be crystal clear to you and to everyone in
your
company, as ell as to your prospective customers, Lac! of clear competitive
advantage
leads -uic!ly to diminished sales, loss of mar!et share, loer pro(tability,
price cutting,
and ultimately to business failure)
Your 5igh Con!e#t
Jour business as started because you or your company had an idea for a
product or service that as diferent or better from other products and
services) $t ofered
to satisfy the same need or solve the same problem better, faster or cheaper
than anyone
or anything else then available)
Jour ability to diferentiate your product in the minds and hearts of your
customers is the !ey to inning them in the (rst place, and then !eeping
them after the
initial sale) 2o buy from you, a customer must be convinced that, all things
considered,
your ofering is diferent and better than anything else that is currently
available at the
same price) Rac! Welch as famous for saying, H$f you don.t have competitive
advantage,
don.t compete&I
Three Areas of )i=erentiation
2o succeed in a tough mar!et, hat you sell must be superior to your
competitor.s oferings in at least three ays) It must "e "etter% faster%
!hea#er% and easier
to use in some way that ma$es it more attra!tive than rival #rodu!ts
or servi!es& $t must be
sold more professionally or serviced ith greater sensitivity, speed or
eOciency) $t must
be better in at least three areas)
One of your !ey 5obs in strategic thin!ing is to identify the three areas here
you are
better and then to emphasi+e those areas of superiority in all your mar!eting
and sales
3o could you achieve operational eLcellence in your business, or some part
of your
business, in such a ay that you could be the lo,cost provider in your
mar!et? 3o
could you dramatically reduce your costs of doing business and use this lo
cost
advantage to increase your sales and pro(tability?
-ead the Field
2he second area here you could achieve competitive advantage is in the
use of
innovative te!hnology leading to the production of high -uality products
and services)
"ompanies li!e /ercedes and 4oleL fall into this category, as does 8ony and
LeLus)
"ustomers are illing to pay a premium for a brand name that represents
high -uality and
cutting,edge technology) Where are there opportunities for you to distinguish
your
products or services by using your imagination to become the -uality leader
in your (eld?
Close to the Customer
2he third area here you could develop competitive advantage is in being
Hclose to the
customer)I 2his re-uires that you invest the time to develop high -uality
relationships
based on Hcustomer intimacy)I "ustomers ill pay more and remain loyal
longer to
companies that seem to !no and understand them better than others)
Providers of
speciali+ed services, such as consulting (rms, la (rms and accounting (rms
fall into this
category)
$n hat ays could you develop higher levels of trust and credibility ith your
customers? What could you do to demonstrate to your customers that you
really care
about them and their interests? 2his strategy can ofer a brea!through
opportunity,
especially in the sale of eLpensive products and services here resales and
referrals are
possible)
Pi!$ Your Targets
2o lead your (eld and achieve higher levels of pro(tability, you have to be
outstanding in one of these three areas and very good in the other to) One
of the most
important decisions you ma!e is to choose your area of competitive
advantage, and then
to dedicate your company to achieving it)
Strive For Su#eriority
Jour area of eLcellence is the !ey to your success in a competitive
mar!etplace)
2his is here your product or service stands out in comparison to your
competitors) $t is a
value or bene(t that you ofer that no one else ofers) With regard to your
products or
services, hat is it? What could it be? What should it be?
Jour area of superiority is de(ned as an area of performance here your
product
or service is superior to that of your competitors) 2his performance diference
is
signi(cant enough that your customer ill buy it, and even pay you more for
it) $n hat
ay does your product perform better, in terms of getting results that your
customer cares
about, than your competitors? 3o could you improve the performance of
your products
or services in some meaningful ay?
>inally, your uni3ue selling proposition is something that you and only you
ofer
to your customers, and is something that they really care about) No one else
does as ell
as you do in this area) No one else achieves the same bene(t or result) What
is your
uni-ue selling proposition? What could it be?
-oo$ Into Yourself
On a personal level, you must continually as! these -uestions of yourself)
What is your
personal area of eLcellence? Where are you superior to your competitors?
What is your
uni-ue selling proposition? $n hat ays do you do your 5ob better or faster
than others?
What is it that you and only you do in an outstanding fashion for your
company? What
could it be? What should it be?
Perhaps the most important area of superiority you can develop is your ability
to
do your 5ob -uic!ly and ell, in an eLcellent fashion, consistently and
dependably every
time) 2his is the !ey to success as an individual in a competitive mar!etplace)
)o It (etter% Faster% Chea#er:
;) $n hat ays are your most important products or services superior to
those of
your competitors?
@) What is your recogni+ed Harea of eLcellence?I $f you ere to conduct a
survey,
hat ould people say that your company does especially ell?
=) $n hat ays are your products or services faster to ac-uire, use and en5oy
than
your competitor.s?
C) What is your uni-ue selling proposition? What is it that your products or
services
ofer that no other company can match?
D) $n hat ays are your products or services cheaper to buy and use, or
achieve
superior (nancial results for your customers for the same cost?
E) $f you ere !non for being outstanding in any one area of your product or
service oferings, hat one distinction ould have the greatest positive
impact on your
sale and pro(tability?
F) List the three areas here your products are, or can be, superior to any of
your
competitors) What is your plan to achieve this area of mar!et superiority?
What should
you do (rst?
What )o You SellB
2he (rst part of the mar!eting miL is your 4roduct or service) *lays de(ne
your
product or service in terms of hat it HdoesI for your customers, versus hat
it His)I 3ere.s
the -uestion, H$s your product or service, as you are ofering it today, ideally
suited for
your current mar!et and customers?I
5ow 3u!h )o You ChargeB
2he second part of the mar!eting miL is your 4rice) $s your price the right
price for hat
you are selling? 8hould you change your price in some ay? 8hould you
increase it,
decrease it, combine your price ith other items, or add items to your price?
8hould you
change your terms or ofer something diferent for the same price?
)ou"le Your Pri!eB
$s there any place in your business that
you could increase your prices and still hold onto your mar!et?
5ow )o You Sell ItB
3o are you currently promoting and selling your product or service? What.s
or!ing?
What.s not or!ing? 8hould you change your methods of advertising,
mar!eting, selling
or ac-uiring customers in any ay?
Sell 3ore Stu=
0specially, should you upgrade and improve your direct selling methods,
people,
presentation, and capabilities?
Is Your Phone <ingingB
0ver after, hen $ thin! about the efectiveness of advertising, $ alays as!,
H$s
your phone ringing?I
Where )o You SellB
2he fourth element of the mar!eting miL is the 4lace) 2his is the speci(c
location here
the sale of your product ta!es place) Where eLactly do you sell your product
today? 1o
you sell in homes, oOces or in your on retail establishment? 1o you sell in a
particular
city, state or nationide? 1o you sell in stores or by direct selling or by direct
mail? /ost
importantly, should you change the place at hich you ofer your products?
* change in the location here you ofer your product or
service could change the direction of your business) What could it be?
E2amine Your Assum#tions
Whenever you have diOculties selling a suOcient -uantity of your product or
service, you should eLamine all of your assumptions in the areas of product,
price,
promotion and place) Jou should be illing to consider the possibility that
your method
is completely rong in one or more of these areas)
$t often happens that a single change in one of the HP.sI in the mar!eting miL
can
change the entire nature of your business, boost your results, increase your
pro(tability
and move you toard mar!et leadership) Keep an open mind)
The Answers Are Changing
What is the correct mar!eting miL for you to sell the very most at the highest
cost, and
earn the greatest pro(t? What assumptions are you going on that
may no longer be true?
Change Your 3ar$eting 3i2:
C& 6e prepared to challenge every aspect of your mar!eting, especially if it is
not
or!ing as ell as before) What areas cause you the greatest frustration and
dissatisfaction?
D& What eLactly do you sell, de(ned as hat it HdoesI for your customers,
versus
hat it His?I
6& What prices do you charge? 3o could you change the ay you charge to
ma!e
buying from you more attractive?
E& 3o do you promote your product? "ould there be better ays of
advertising
your products or services that ould give you better results?
7& 3o do you sell your product or service? $s every person ho deals ith
your
customers fully trained in every !ey result area of selling?
:& Where do you sell your product or service? 8hould you be eLploring other
locations or methods of sale?
;& 8hould you change more than one of the elements of the mar!eting miL at
the
same time? "hallenging mar!et conditions often call for bold departures from
the methods
of the past, especially if they are no longer or!ing)
What Words )o You wnB
1eliberately or accidentally, each product or service develops a reputation
that
positions it against its competitors) What is yours?
Create Your wn Cheat Sheet
3ere is the -uestion) What ords do you on? What ords should you on in
the
hearts and minds of your prospective customers? What ords could you on
if you ere
to reorgani+e and redirect your mar!eting eforts?
*s an eLercise, imagine one of your prospects meeting ith one of your
customers) $magine that your customer called you and as!ed you hat you
ould li!e
him to say to your prospect to convince your prospect to buy from you?
$f you could put together a Hcheat sheetI ith the eLact ords or phrases
that you
ould li!e your customer to leave in the mind of your prospect, hat ords
ould you
choose? Would you choose ords li!e excellent 3uality, high integrity, friendly
service,
nice people, 3uick responses to problems, easy to work with, great prices?
3o do you ant
to be described by your customers and potential customers? Of all the ords
and phrases
that customers could use to describe your products and services, and your
company,
hich ould be the most helpful for you and your business?
What Is Your (randB
3o are you described and thought about by others hen you are not there?
What is
your personal brand? What is your reputation? 3o do other people thin! and
tal! about
you, both as a person and as a contributor to the organi+ation?
Position Your Com#any For Su!!ess
;) What is your company.s reputation in your mar!et? 3o do customers and
competitors thin! and tal! about you?
@) What ords do people use hen describing your products or services to
others?
=) $f you could HonI certain ords that apply to your company, your
products or
services, hich ords ould you choose?
C) What ords, if they ere automatically associated ith your company,
ould
have the greatest positive efect on your sales and pro(tability?
D) What changes ould you have to ma!e to assure that every customer
contact
reinforced the message that you anted to send to your customers about
doing business
ith you?
E) What are the most important promises that you ma!e to your prospects to
get
them to buy from you for the (rst time? 1o you !eep these promises after the
sale?
F) What are the most positive things that your customers say about dealing
ith your
company? 3o could create a system to assure that more customers say
these things?
0Lamine your complete range of products and services, especially the neer
ones,
and as!, HWhich of these has the potential to be a big seller?I What ould
you have to do
or invest in o help ma!e it a ma5or source of sales and revenues?
Keep as!ing yourself, H$f $ had not already committed time and money to this
product, !noing hat $ no !no, ould $ start investing in it again today?I
*pply the 86U concept to yourself and your career) Jou have several areas of
talent and ability, core competencies, eLperience, !noledge and education)
What are
your cash cos, the s!ills that are central to your value to the organi+ation?
What are your Hstars,I the emerging areas of activity, or ne s!ills and
!noledge
that can ma!e you eLtremely valuable in the future?
What are your potential areas of great success? What are the pro5ects,
responsibilities and areas of opportunity, hich, if you eLploit them fully, can
enable you
to move ahead more rapidly in your career?
>inally, hat are the HdogI areas of your or! life? 2hese are the tas!s or
s!ills
that you may have mastered in the past, but hich distract you from your
future) 2hese
are the 5obs and activities that ta!e up a lot of time, but hich are nohere
near as
valuable as other things you could be doing) What are they?
)evelo# Strategi! (usiness .nits
;) 6egin today to vie each product or service as a separate business,
responsible
for generating a certain amount of pro(t every month)
@) #roup your diferent products or services by similar characteristics, similar
customers, or similar mar!ets)
=) What are the cash cos of your business? What are the core products or
services
that are essential to your overall pro(tability?
C) What can you do today to safeguard and nurture your cash cos to assure
that
they continue contributing sales and cash 'o far into the future?
D) What are the HstarsI of your business? What are the products that are
selling ell,
increasing in mar!et share, and generating high pro(ts?
E) What could you do to increase the sales and pro(tability of your stars?
F) What are the H-uestion mar!sI of your business? Which of your current
products
or services should you discontinue, !noing hat you no !no?
What Is To (e SoldB
2he (rst -uestion is, +What is to "e soldB, 2o anser this correctly, you
have to de(ne
your product or service in terms of hat it does, and ho it bene(ts your
customer) 3o
does it improve his or her life or or!? Of all the bene(ts that a customer
en5oys from
purchasing your product or service, hat is the primary bene(t, the one thing
that you
ofer that ma!es you superior to any other competitor in the mar!etplace? 1o
you !no
the anser to this?
Who Is 0oing To Sell ItB
2he second -uestion is +(y whomB, Who is actually going to sell the
product or service
and get the chec! from the customer? 3o are you going to recruit, train,
manage, (eld
and support the sales person? 3o is this salesperson going to uncover the
necessary
leads and get face to face ith the prospective customer?
Who Is Your CustomerB
2he neLt part of the -uestion is HTo whomB,
5ow 3u!h Are You 0oing To ChargeB
$s there any price you ould raise, loer or modify in some
ay?
Colle!ting Payment
2he neLt -uestion is How is it going to be paid for? 1o you re-uire
payment
in full, in advance? 1o you re-uire a deposit hen the sale is made and ith
the balance
to be paid at a later time on certain terms? 1o you ofer credit or (nancing?
0specially,
hat do your competitors do?
Often a change in the ay you charge, or in your pricing structure, can
dramatically increase your sales) What could you do diferently in today.s
mar!et that
ould ma!e it easier or more attractive to buy your product or service?
)elivering The 0oods
2he (nal part of the -uestion is How is going to be delivered
satisfactorily?
What is the eLact process of getting the product or service to your customer
in such a
ay, and at such a level of -uality, that the customer both buys from you
again and
recommends you to others?
Sell 3ore E=e!tively:
;) What is the eLact sales process necessary to sell your product or service,
from the
(rst customer contact through to the close of the sale? 1o you !no? 3o
could it be
improved?
@) What must your prospective customer be convinced of before he chooses
your
product over that of your competitor?
=) $f money ere no ob5ect, hat special results or bene(ts do you ofer in
your
sales eforts that ma!e your product more desirable than any other available?
C) What is your process for recruiting salespeople? What media do you use?
What
levels of education and eLperience do you re-uire?
D) What !ind of a compensation system do you have for salespeople? What is
it
based on? 3o could it be improved so that it motivates better sales
performance?
E) 3o much of your business comes from referrals from happy customers?
3o
could you increase the number of referrals you get as a percentage of your
business?
F) Why aren.t your sales tice as high already? What sales eforts could you
ma!e to
tap into that M<N of the mar!et that has never heard of you?
Follow the Formula
HWhy am $ not at that goal already?I What is holding you
bac!? What is the constraint, cho!epoint or bottlenec! that sets the speed on
ho fast you
achieve your speci(c goals of sales, cash 'o or pro(tability in your
business?
Let us return to my earlier -uestion, HWould you li!e to double your sales and
double your income?I $f your anser is HyesI, then hy haven.t you done it
already? Why
aren.t your sales tice as high? Why aren.t your pro(ts tice as high? What is
holding you
bac!? What is constraining you? What is the limiting factor?
Identify Your Personal Constraints
2hin! about your personal life and goals as ill) *s! yourself, HWhat are my
most
important goals? Why am $ not there already? What is it within me that is
holding me
bac!?I
$s it the lac! of a particular -uality, attribute or s!ill that sets the speed at
hich $
achieve my goals? $s it a particular attitude or belief that is holding me bac!?
*nd most
important, hat could you do immediately to alleviate your !ey constraints,
starting today?
Eliminate the <oad"lo!$s:
;) 8et clear, measurable goals for sales and pro(tability) No as!, HWhat
determines
the speed at hich $ achieve these goals?I
@) Use sentence completion eLercises) 8ay, HWe could double our sales if it
5ust
asn.t for))I and (ll in the blan!)
=) $dentify the ma5or bloc! to your achieving your most important goal? 3o
could
you remove it?
C) Loo! ithin your company for the limiting factors that hold you bac!) What
are
the cho!epoints in your business?
D) *ssess each person in each !ey position) *re they competent and capable
of
doing hat needs to be done for you to be successful?
E) Once you have identi(ed your !ey constraint to business success, as!,
H$hat else
is holding us bac!?I Keep as!ing, HWhat else?I until you get to the real
problem)
F) $n your on career and personal life, hat sets the speed at hich you
achieve
your goals? Loo! ithin yourself for the ansers)
3a$e Faster% (etter )e!isions
Whenever they bring you a problem
or a -uestion, alays as!, HWhat do you thin! e should do?I
<eengineer Your Com#any:
;) Practice simpli(cation as a ay of life) $n hat areas of or! has your life
become
too complicated, and hat can you do to get it bac! under control?
@) Practice +ero,based thin!ing ith every step and every activity) $f you ere
not
no doing it this ay, ould you start doing it this ay again today?
=) 2a!e a single compleL process or 5ob and ma!e a list of every step from
beginning
to end) 3o could you reduce the number of steps by =<N the (rst time
through?
C) What tas!s or activities could you delegate to someone ho can do them
F<N as
ell as you?
D) What parts of your business could you outsource to companies or
individuals ho
speciali+e in that area?
E) What parts of your or! could you eliminate altogether ith little or no
impact on
your bottom line?
F) What parts of your personal life do you need to streamline and simplify?
When are
you going to do it?
Pum# .# Your Pro/ts:
;) 1o a complete pro(t analysis on every product and service you ofer) 4an!
them
from highest to loest)
@) $dentify the @<N of your products that account for M<N of your sales)
Which are
they?
=) $dentify the @<N of your products and services that account for M<N of
your
pro(ts) *re they the same as your anser to T@?
C) *fter deducting all direct and indirect costs, hich are your most pro(table
products or services based on cost and return on investment?
D) 3o much is your time orth on an hourly basis? 6uild this cost into
everything
you do to get an accurate measure of costs and pro(tability)
E) *ttribute a percentage of all general and administrative costs to each
product or
service you sell) 2his eLercise often turns pro(ts into losses)
F) $f your company as facing serious (nancial shortages, hich products or
services
ould you focus your energies on, and hich ould you discontinue? 2hin!
about doing
it no)
It Starts From The To#
0ncourage each person to (nd ays to do their 5obs better, faster, and easier)
*llo them the freedom to eLperiment ith improvements, ith no fear of
criticism if
they don.t or!) 8ometimes the greatest improvements occur as the result of
a series of
small eLperiments that ere not successful)
Jou should stand bac! regularly and eLamine every product, service and
process)
3o could you improve it in some ay? 3o could you ma!e it better, faster
or cheaper?
3o could you get the same or better results faster, or at a loer cost? Never
be satis(ed
or content ith eListing -uality levels) *lays loo! for ays to improve upon
them)
6rainstorm ith your team regularly to generate ideas to cut costs, improve
-uality,
increase sales and boost pro(ts) 0ncourage everyone to thin!, all day long,
about ho
they can do their 5obs better) /a!e this commitment to continuous
improvement a part of
your corporate culture)
Commit to E2!ellen!e
$f everyone in your mar!etplace referred to you and your oferings as the
best in the business, hat !ind of a diference ould that ma!e in your sales
and
pro(tability?
With that as your goal, hat ould you have to do, starting today, to assure
that
everyone refers to you as Hthe bestI sometime in the future? What could you
do, starting
today, to begin this process? What is the (rst step you should ta!e?
>uality and Pro/ta"ility
HWhich of these companies do you feel is the best in this particular industry?I
3ere.s the -uestionK $f such a survey ere done among potential customers
for hat you
sell, here do you feel your company ould ran! in such a comparison?
Would you be
ran!ed as Hthe best,I or somehere loer? What could you do to move
higher in the
ran!ings? What one step could you ta!e immediately?
5ow )o Customers )e/ne >ualityB
What )o Customers WantB
Commit to Continuous Im#rovement:
;) 3o do your customers de(ne -uality? What is most important to them in
choosing your product or service?
@) 3o do you ran! against your competitors on a scale from one to ten? 3o
could
you improve your ran!ing immediately?
=) 8et up a reard system in your company for suggestions and ideas to
improve
-uality and achieve greater customer satisfaction?
C) 1o you have -uality and performance standards for people, products and
activities
in your company? 1oes everyone !no hat they are?
D) What company do you thin! is the best in your business, the most
respected and
pro(table? 3o could you benchmar! yourself against them?
E) What one step could you ta!e immediately to improve customer
satisfaction ith
your company?
F) What could you do personally to upgrade and improve the -uality of your
performance in the most important things you do in your 5ob?
)e/ne Your Core (usiness
What is your core business? $f everything else as stripped aay, hat ould
be left at
your core?
$dentify the @<N of opportunities available to you today that can be
responsible for
M<N of your sales and revenues in the years ahead) 2hese ill almost alays
be
eLtensions of your current business, your core competencies, and your areas
of
eLcellence) Jour choice of the opportunities available to you largely
determines the
future of your business) What are they?
Fo!us n 8alue
What are the @<N of your or! activities that account for M<N of your
personal
value and your contribution to your company? $f you 5ust doubled the amount
of time you
spend on the @<N of your high value tas!s, and discontinued the M<N of lo
value%no
value tas!s that you do, you could become most of the most productive
people in your
company) 2hese are your core tas!s)
What are the @<N of problems, aggravations, and irritations that account for
M<N of
your headaches in your or!? Who are the most diOcult people, customers
or situations
that you have to deal ith each day? What can you do today to minimi+e or
eliminate
them?
6ased on this M<%@< analysis, hat steps can you ta!e immediately to
improve,
increase, and strengthen your core products, services, customers and
activities? What
should you do (rst?
Where )o You E2!elB
$n hat areas of your products and services are you, or could you be better
than
SDN of your competition?
Advan!e Planning
2his 1itadel is your core business) What is yours? Whatever it is, practice
H8cenario
PlanningI on a regular basis) *s! yourself, HWhat is the orst thing that could
possibly
happen in my mar!et today?I
Whatever your anser is to that -uestion, begin ma!ing provisions today to
assure
that you ill be able to survive, should it occur)
Your Personal Citadel Strategy
*s an individual, you must be clear about your personal core competencies,
as
ell) 3o could you improve in each one of them? What core competencies
ill you
need to lead your (eld in the years ahead? What is your plan to ac-uire the
core
competencies of tomorro?
Con!entrate n the Core:
;) What is your core business? What products and services are most
responsible for
your success today?
@) What are your core competencies? What is it that your company does
eLtremely
ell?
=) What are the orst possible things that could happen to your business in
the neLt
year? What are your plans to deal ith them, should they occur?
C) What are your non,core products, services or activities? What ould
happen if you
discontinued them entirely?
D) Who are your core customers, and hat are you doing to assure that they
never
leave you?
E) Who are your core people, the ones ho are most important for the
survival and
groth of your business? What is your strategy to !eep them?
F) What are your core functions? What are the things you do that are central
to your
5ob? What activities are peripheral?
Four Key >uestions
When considering buying a product or service, customers have four -uestions
that
must be ansered before going aheadK
;) What does it cost?
@) What do $ get for the money?
=) 3o fast do $ get the bene(ts you promise?
C) 3o sure can $ be that $ ill get those bene(ts?
Whichever company or salesperson ansers these -uestions most
convincingly
ins the sale)
)eliver n Your Promises
HWhat results or bene(ts do my customers eLpect of my
product or service?I and H3o consistently do my customers get those
results and bene(ts
hen they buy my products or services?I 2his is the true de(nition of
H-uality)I
Uuality can be de(ned as, Hthe percentage of times that your product or
service
does hat you say it ill do, and continues to do it)I
* -uality rating of ;<<N, or perfect -uality, means that hat you sell always
delivers on your promises) * -uality rating of S<N means that your product
gets the
desired or promised results nine out of ten times)
-ittle Things 3ean A -ot
>ederal 0Lpress has determined that if its -uality rating as SS)S<N, they
ould
ma!e mista!es in the delivery of CC,<<< envelopes a day) *t SS)S<N -uality,
>ederal
0Lpress ould collapse under its on eight of confusion) 2hat is ho
important -uality
is in a business)
Jour personal success is also determined by ho consistently and dependably
you
perform and deliver on your responsibilities and promises) Jou should
continually as!
yourself, HWhat results are eLpected of me?I
Jour level of efectiveness is alays de(ned by others, by hat they need
from
you) Leaders are alays as!ing, HWhat does this situation need of me?I Once
they are
clear, they concentrate their energies in those areas)
*s! yourself, HOf all the results $ can accomplish, hat are the most valuable
and
important in terms of my reards and my future?I
Im#roving Your A"ility to 0et <esults
3ere are seven of the best -uestions you can as! and anser to improve your
ability to get resultsK
;) HWhy am $ on the payroll?I What eLactly have you been hired to
accomplish?
/a!e sure that hat you are doing every day is the anser to this -uestion)
@) HWhat are my highest value tas!s and activities?I Of all the things that you
could be doing during the day, hat are the activities that you engage in that
contribute
the greatest value to yourself and your company?
=) HWhat are my !ey result areas?I What are the core competencies and !ey
tas!s
that you must absolutely, positively do in an eLcellent fashion to produce the
most
important and valued results eLpected of you? 4esolve today to become a
Hdo,it,toyourself,
pro5ect)I >or the rest of your career, dedicate yourself to continually learning
and
improving in those areas here top performance is most vital to your
success) #etting
better at your !ey tas!s is one of the best time saving techni-ues of all)
C) HWhat can $ and only $ do that, if done ell, ill ma!e a real diference?I
2here is alays something that only you can do that can ma!e a signi(cant
diference to
your life and your or!) $f you don.t do it, it on.t get done) No one else ill
do it for
you) 6ut if you do it, and you do it ell, it can ma!e a signi(cant diference)
What is it?
D) HWhat one s!ill, if $ developed and did it in an excellent fashion, ould
have
the greatest positive impact on my career?I 2here is alays one s!ill that if
you developed
it and did it ell, ould have a greater and more positive impact on your
career than any
other single s!ill) Jour 5ob is to identify that s!ill and then put your hole
heart into
becoming absolutely eLcellent in that area, hatever it is)
E) HWhat one result, if $ achieved it consistently for my customers, ould
most
satisfy those customers and bring me the greatest number of additional
customers?I What
must your customer be absolutely convinced that he or she ill receive from
you in order
to buy your product or service and to recommend it to his or her friends? 3o
could you
improve your -uality and service in that area?
F) 2he (nal -uestion for personal success, number seven, is thisK HWhat is the
most valuable use of my time right no?I Use this -uestion as your guiding
star
throughout the day) Keep as!ing, What is the most valuable use of my
time, right
now?
All )ay -ong
$f you could only perform one tas! all day long, hat one thing could you do
that
ould contribute more value to your life and or! than any other single tas!
or activity?
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TEA3GP<HECT AW-FFFF
Whatever your answer% #ut mastery of that tas$ at the to# of your
list of #riorities&
)edi!ate yourself to getting "etter and "etter doing the one thing
that !an ma$e more of a
di=eren!e than anything else& This is the $ey to getting su#er"
results at every stage of
your life and !areer&
n!e more% here then are the DC $ey ideas in the Tur"ostrategy
#ro!ess:
;) Start Where You AreK 1o a complete and honest analysis of your
business as it is
today, including the current status of your sales, revenues, pro(tability and
the mar!et
situation around you)
D& )raw A -ine .nder the Past: *pply +ero based thin!ing to every part of
your
business) $f you ere not doing it today, knowing what you now know, ould
you get
into it again today?
6& Condu!t A (asi! (usiness Analysis: 0Lamine your products, services,
processes,
and activities as if you ere loo!ing at them for the (rst time) 6e prepared to
as! yourself
the Hbrutal -uestionsI about each one of them)
E& )e!ide E2a!tly What You Want: 8et clear, ritten, measurable goals
and
ob5ectives for yourself in each part of your business)
7& )esign Your Ideal Future: Pro5ect forard =,D years and imagine that
your
business as ideal in every respect) What ould it loo! li!e? What could you
do, starting
today, to ma!e that future vision into a current reality?
:& Create A 3ission Statement: 1ecide eLactly hat it is you ant to
accomplish
for others ith your business) /a!e it measurable) /a!e it eLciting) 8hare it
ith
everyone)
;& <einvent Your rgani'ation: $magine starting your business or career
over again
today, ith your present !noledge and eLperience) What ould you do
diferently?
?& Sele!t the <ight Peo#le: >ully SDN of your success in business ill be
determined by the people you choose to or! ith and for) 2a!e the time to
ma!e good
personnel decisions)
I& 3ar$et 3ore E=e!tively: 2hin! through every part of your mar!eting
strategy by
applying the four principles of speciali+ation, diferentiation, segmentation
and
concentration to every product and service)
C@& Analy'e Your Com#etition: 1ecide eLactly ho you are competing
against, and
hy it is that your prospective customers prefer to buy from them) 3o could
you ofset
this perceived advantage?
CC& )o It (etter% Chea#er% FasterK "ontinually see! ays to serve and
satisfy your
customer in a superior fashion to any one else in your mar!et) Never stop
raising the bar
on yourself)
CD& Change Your 3ar$eting 3i2: $magine being your on management
consultant
and as!ing yourself hard -uestions about the appropriateness of your
product, price,
place and promotion in today.s mar!et)
C6& Position Your Com#any For Su!!essK 1etermine ho you ant to be
thought
about and tal!ed about by your customers and prospective customers) What
are the very
best ords they could use to describe you?
CE& )evelo# Strategi! (usiness .nits: 1ivide your products and services
into one
of four categoriesK cash cows, stars, 3uestion marks and dogs) /a!e one
person
responsible for sales and pro(tability for each product or group of products)
C7& Sell 3ore E=e!tively: >ocus single,mindedly on upgrading the -uality
of your
sales efort) 3ire more selectively, train more thoroughly, and manage more
professionally) 8ales are the lifeblood of the business)
C:& Eliminate the (ottlene!$s: $dentify the factors that determine ho
fast you
achieve your goals of sales and pro(tability) "oncentrate on alleviating these
bottlenec!s
in every part of your business)
C;& <eengineer Your Com#any: "ontinually see! ays to streamline and
simplify
the process of producing and selling your products and services) Learn to
delegate,
outsource, donsi+e and eliminate the compleLity of everything you do)
C?& Pum# .# Your Pro/ts: 0valuate every product and service to
determine eLactly
ho much net pro(t you are actually earning from each item you sell) 4esolve
to
discontinue products and services that are not as pro(table as others, and
channel more
resources into those products that are the mainstays of your business)
CI& Commit To Continuous Im#rovement: $nstall the Kai+en process of
Hcontinuous bettermentI into your company) >ind out ho your customer
de(nes
H-ualityI and then continually strive to eLceed eLpectations)
D@& Con!entrate n The Core: $dentify the most important products and
services
you ofer, and then focus on getting better and better selling more and more
of them)
Probably M<N of the mar!et potential for your core products has not yet been
tapped)
@;) Fo!us n <esults: "oncentrate your best energies and resources on
getting the
most important results possible for your company) 8et priorities in every area
and then
or! single,mindedly to complete the fe tas!s that are more valuable than
everything
else put together)
2he most important part of the 2urbostrategy is not hat you learn, but the
actions you
ta!e, and ho -uic!ly you ta!e those actions) 2here is a direct relationship
beteen ho
fast you move on a ne idea and ho li!ely it is that you ill ever move on a
ne idea)
4esolve today to become intensely action,oriented for the rest of your career)
Rust do it&
The Tur"ostrategy Pro!ess