our profts going up or down?

Up
Are they on budget or going sideways?
Look at the percentages. Analyze your return-on-equity, return-on-
investent,
and return-on-sales.
Are they increasing or decreasing?
!" your goal is to build a great copany, why isn#t your copany already
great?
$ore capital required "or %power network
&hich o" your products or services is selling well today?
$y sales skills and %power 'etwork
&hich o" your products and services are the ost proftable?
$y sales skills and %power 'etwork
&hich ones are doing poorly?
&hich ones do you lose oney on?
(rinking too uch alchohol
!s your current business situation, positive or negative, in any area?
$ore capital required
)eporary or part o" a long-ter trend?
Longter
*ow can you know "or sure?
Action
*ow can you fnd out?
+e,oin %power 'etwork with -!$./ick 0trizheus1Like *obbs12ro,ect A&3L
&hat should you then do?
$ake 456,666 frst 76 days
Clarity Is the Key
&hy has your business been success"ul in the past?
$y study o" business
&hat have you done well in the past that has been responsible "or your
success to date?
$y study o" business, arketing and sales.
&hat are the ost iportant skills and copetencies that your copany
possesses today?
$y study o" business, arketing and sales.
&hat are the very best products and services that you o8er right now?
$y study o" business, arketing and sales.
Look at the people around you. &ho are your ost valuable people?
A9* 0hoppette and University o" $aryland -A* oney
&ho are no longer as valuable as be"ore?
&ho represents a net loss or detrient to your business?
-e prepared to ask and answer the brutal questions.
The Customer Is the King
&ho are your best custoers today?
:oreans, single ales, and business opportunity seekers
&hat and where are your best arkets?
Asia and the internet
&hat do your custoers like the ost about what you do "or the?
$ake the happy
&hat do they coplient the ost o" what you o8er or do "or the?
$ake the happy, talk alot and very sart in business and li"e
&hat is your nuber one area o" custoer satis"action?
0ales and presentation
&hat do your custoers like the least about what you do?
&hen !; angry or tired
&hat do they coplain about the ost?
'ot having what they want available "or purchase
&hat is it that you sell that your custoers and potential custoers pre"er to
buy soewhere else, rather than "ro you?
Identify Your Personal Strengths
Look at yoursel" honestly. &hat are your own personal best skills, qualities
and abilities?
%nglish, 0tudying, strategic planning, arketing and sales
&hat are the ost iportant things that you do at work, and "or your
copany?
(aily "acility iproveent, strategic planning, arketing and sales
&hat are the ost valuable contributions you ake personally to your
business?
!ncrease sales, custoer service, and custoer retention
Start Where You Are:
5. &hat is working the very best in your business today?
0ales and arketing
&hat parts o" your business ake you the happiest?
$arketing
<. &hat#s not working in your business?
&aiting on capital
&hat causes you the ost aggravation and "rustration?
&aiting on capital
7. &hat are your ost iportant products and arkets?
$e =sales.arketing.english skills>, %power 'etwork in th U0.0outh
:orean arkets
&hat accounts "or the largest portion o" your revenues?
A9* and %power 'etwork
?. &ho are your ost iportant people?
A9* and %power 'etwork
&ho are the people who account "or ost o" your results?
A9* and %power 'etwork
@. &hat are your special talents and skills?
&hat is it you do that accounts "or ost o" your success?
A. &hat are the a,or changes taking place in your arket?
&hat changes should you ake to copensate "or the?
B. &hat are your ost treasured assuptions about your people, custoers,
arkets,
products, services and yoursel"?
&hat i" one o" the wasn#t true?
&hat would you do then?
Imagine Starting Over
Cero-based thinking requires that you apply this DscraperE entality to every
part
o" your business. Fou do this by asking this key questionG
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 o" struggling to deterine how you ight odi"y, change, fH, revise,
iprove or alter soe business "unction, you instead ask,
D!" ! was not doing this today, would ! start it up again today, knowing what I
now know?
)o start with, is there any product or service that you would not bring to the
arket, o8er or sell, i" you had to do it over again, starting today?
0ince I6J o" your products and services are probably going to be obsolete
within the neHt @ years, there
ay be products and services you are o8ering today that, because o"
changed arket
conditions, you would not introduce again today, i" you had to do it over
again, knowing
what you now know. )hese products or services are prie candidates "or
discontinuation
or divestiture.
!s there any person in your business that you would not hire, assign, appoint,
go
to work "or, or becoe associated with i" you had to do it over again today?
$ost o" your probles in business will coe "ro attepting to work with or
around a diKcult person,
who knowing what you now know, you wouldn#t get involved with again
today.
&ho does this bring to ind?
!s there any supplier, banker or vendor that you are dealing with today that,
knowing what you now know, you wouldn#t get involved with again today, i"
you had to
do it over?
Since many of your business relationshis !ill not !or" out over
time# you
must be reared to continually reevaluate them# esecially if they
are causing you any
roblems or frustrations$
Analy%e Your Customers
!s there any customer that you are selling to or servicing today that, knowing
what you now know, you wouldn#t take on again as a custoer?
$any copanies are asking this question about their diKcult custoers and
deciding to let the go.
0oeties, one o" the sartest things you can do is to Dfre your custoers.E
%ncourage
the to go and deal with soeone else who would be ore appropriate "or
the.
Assess Your &usiness Oerations
!s there any expenditure in your business that you would not authorize again
i"
you had it to do over?
!s there any process, procedure or activity that, knowing what you
now know, you wouldn#t start up again, or get into, i" you were aking the
decision
today, knowing what you now know?
!s there any advertising, arketing or selling ethodology or eHpense that
knowing what you now know, you wouldn#t start up again today, i" you had to
do it
over?
:eep asking, D&hat#s working?E
and D&hat#s not working?E
Pay Attention To The Indicators
Fou can always tell when you are in a zero-based
thinking situation because it
causes you continuous stress, aggravation,
"rustration, negativity and unhappiness. Fou
think about it continually. 3"ten you bring it hoe at
night and discuss it at the "aily
dinner table. 0oeties it will even keep you awake
at night.
&henever soething is not working, or not working
out the way you eHpected,
or causing you stress, fnancial losses, aggravation,
or irritation, ask,
Knowing what I now know, would I get into this
again today if I had to do it over?
!" the answer is D'oLE then your neHt question is
How do I get out and how fast?
The 'ecision Is Inevitable
*ere#s an iportant point. !" soething is not working, eventually you will
have to
get out o" it. Fou will have to let the person go, discontinue the product or
service,
eliinate the activity or eHpense, or change the ethod o" operation. !t is
only a atter o"
tie. !t is not going to get better all by itsel". And every single eHecutive who
fnally
decides to get out o" an unhappy situation says a"terwards, D! should have
done this a
long tie agoLE
Aly This Aroach Continually
Practice %ero(based thin"ing as a )go for!ard* method for the rest
of your
business career$ Aly it to everything you do# to every art of your
business# every single
day$ Aly it to every roduct# service# rocess# rocedure and
erson and be sure that#
"no!ing !hat you no! "no!# you would get into it again
today if you had to do it over $
If not# get out# and as fast as you can$
'ra! A +ine ,nder the Past:
5. !agine starting over again in every part o" your businessM is there
anything you
are doing that, knowing what you now know, you wouldn#t start up again
today?
<. !s there any person in your business li"e who, knowing what you now know,
you
wouldn#t hire, assign, proote or otherwise get involved with again today,
knowing what
you now know?
7. !s there any product or service that, knowing what you now know, you
wouldn#t
bring to the arket again today?
?. !s there any investent that you have ade that, knowing what you now
know,
you wouldn#t ake again today?
@. !s there any business activity or process that you are using that, knowing
what you
now know, you wouldn#t start up again today?
A. !s there any custoer or arket that, knowing what you now know, you
wouldn#t
take on or get into again today, i" you had it to do over?
B. !s there any career decision that you have ade that, knowing what you
now
know, you wouldn#t ake the sae way i" you had it to do over again today?
Start With The &asics
)he starting point o" business analysis is "or you to askG
D&hat business a ! in?E
&hat business are you really in?
&hat business are you really, really in?E
! soon realized ! was in the Dgoal
achievement businessE =$e )33L
N%+O>.
$y business was helping people to
achieve their personal and business
goals "aster by providing the with
practical ideas
that they could use iediately to get
better results.
)his insight led e "ro talks and
seinars into audio and video
recording,
books, training progras and !nternet
based e- learning on a variety o"
sub,ects, including the developent
and presentation o" the )urbostrategy
2rocess.
The Customer As Centeriece
D&ho is y custoer?E
&ho is the person who buys "ro you today? (escribe your custoer in
detail.
&hat is the age, incoe, education, position, attitude, location and interest o"
your ideal custoer?
$any copanies are not eHactly sure o" the answer to this question. )hey
have at best an
unclear picture o" the psychological and deographic characteristics o" their
custoers.
&ho will your custoer be toorrow, i" current trends continue?
&ho should your custoer be, i" you want to be success"ul in the arkets o"
toorrow?
&ho could your custoer be i" you were to change, iprove or upgrade your
product or service
o8erings?
'etermine What You Sell
Four neHt question isG D&hy does y custoer buy?E
&hat value, beneft, result or di8erence does your custoer seek or eHpect
to en,oy as a result o" doing business
with you?
3" all the various benefts that your products or services o8er your
custoers,
what do your custoers consider to be ore iportant than anything else?
(o you know?
Four ability to defne and proote this unique beneft is the real key to
copetitive
advantage and arket success. Fou neHt question isG
D&hat do we do especially well?E
&hat do you do better than any o" your copetitors?
&here are you superior?
Pustoers only buy "ro a particular copany because they "eel that, in
soe way, that copany o8ers soething
that is superior to that o" any other o8ering.
&hat is your area o" eHcellence?
Qack &elch o" Oeneral %lectric was "aous "or saying, D!" you don#t have
copetitive advantage, don#t copete.E *is philosophy was that Oeneral
%lectric would
be nuber one or nuber two in every arket segent in which they
copeted, or they
would get out o" that arket.
Are you nuber one or nuber two in your arket?
Pan you be?
&hat is your plan to achieve this arket position?
'e-ne Your Cometitor
)he neHt question, which we will deal with eHtensively in Phapter 56, isG
D&ho is your copetition?E
3nce you have identifed your copetition, you ust ask,
D&hy does your potential custoer buy "ro your copetition, rather than
"ro you?E
&hat value or beneft does he perceive that he receives "ro soeone else
that he does not "eel he
receives "ro you?
*ow could you o8set this perception?
Set Clear .oals
!n per"oring an eHaination o" your business, you ust ask continually,
D&hat are y goals?E
&hat are you trying to accoplish?
!" you are clear about your goals, what is holding you back "ro achieving
the?
Fou need clear, written, easurable, tie-bounded goals "or every part o"
your
business and personal li"e. Fou need short-ter, ediu-ter and long-ter
goals. %ach
goal ust be in writing, with plans "or its accoplishent. Fou can#t hit a
target that you
can#t see. Analyze everything you do in the course o" a day or a week.
&hat are the <6J o" your activities that could account "or I6J or ore o"
your results?
0oeties, ,ust 56J o" your activities, i" you were to pursue the
aggressively, could account "or R6J o" your
results.
&hat ight they be?
&ecome Action(Oriented
&hat actions should you take iediately in response to the answers to
these
questions?
&hat is the very frst thing you should do right now to increase your sales
and
iprove your arket position?
Another good question you should ask yoursel" isG
D&hy a ! in business at all?E
&hy do you eHist?
&hat social purpose does your copany serve?
&hat loss would occur to society i" you ceased to do business altogether?
!agine that you had to go in "ront o" a governent tribunal each year to
,usti"y
your continued eHistence.
&hat would you say to the tribunal in ters o" how you serve, help, or ake
a
di8erence in the lives or work o" your custoers to ,usti"y staying in
business?
)hese are key questions that you need to ask and answer "or your business
on a
regular basis. Fou should ask and answer these questions "or yourself, as
well. !" you are
unclear or inaccurate in your answers to any o" the, the health o" your
enterprise could
be in ,eopardy.
Conduct A &asic &usiness Analysis:
5. &hat are your goals "or your business?
&hat are you trying to accoplish?
<. &ho is your ideal custoer?
(escribe hi or her accurately.
7. &hy does your custoer buy "ro you?
&hat special benefts or advantages do you o8er that your copetitors
don#t have?
?. &hat business are you really in?
(escribe your business in ters o" what you do "or your custoer, what
results you get.
@. &hat are the <6J o" your activities that could account "or I6J o" your
results?
A. &hat is your copetitive advantage, your Darea o" eHcellence?E
!n what ways are you superior to R6J or ore o" your copetitors?
B. &hat specifc, easurable actions should you take iediately in answer
to the above questions?
Chater /our 0 'ecide 12actly 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! ='apoleon *ill>
)urbostrategy begins with your deciding eHactly what you want to accoplish
in
the key areas o" your business li"e. 3nce you know your goals in each area,
you can then
decide upon the best steps you can take to get there.
The .OSPA 3odel
Fou can use the O302A $odel as a guide "or strategic planning. )hese fve
key
thinking tools "or the basis "or success"ul business operations.
&egin With The 1nd In 3ind
)he frst letter, DOE stands "or .oals. )hese are the ultiate results that you
want
to achieve. Four goals are the end targets that you ai at throughout your
business year
or planning period. Four goals are your sales, profts, growth rate, arket
share, or
percentage o" return on assets, equity, investent or sales. Ooals are always
easurable.
&hat are yours?
Stes on the Staircase
)he second letter, D3E stands "or Ob4ectives. )hese are the steps you will
have to
take to achieve your goals. )hey are like the rungs on the ladder to get to the
top.
Four business ob,ectives can be specifc rates o" return "ro advertising,
levels o" sales o"
certain products and services, nuber o" ites shipped and billed, onies
collected and
cost levels "or certain activities. A lower de"ect rate or a higher sale aount
per custoer
can be ob,ectives on the path to achieving the ain corporate goals. &hat
are your
interi ob,ectives?
5o! to .et There
)he letter D0E stands "or Strategies. )hese are the di8erent approaches that
you
can take to achieve your ob,ectives and reach your goals. 9or eHaple,
achieving a
specifc level o" proftability will require producing and selling specifc
quantities o"
products or services to a specifc arket in a specifc way. )here are any
di8erent ways
to go about accoplishing these ob,ectives. )he way you choose is your
strategy, and
ay deterine the success or "ailure o" your enterprise.
(o you produce, arket, sell, deliver yoursel", or do you outsource soe part
o"
the process? (o you sell direct, via retail, direct ail, catalog or !nternet? (o
you charge
ore, charge less, up-sell, cross-sell or discount? (o you enter certain
arkets and
abandon others? &hat is your strategy? !s it working?
Planning /or Success
)he letter D2E stands "or Plans. )hese are your blueprints "or achieving your
goals. Four plans are coposed o" step-by-step lists o" eHactly what you will
do, day by
day, to get "ro wherever you are to wherever you want to go. 2lans are
always broken
down by sequence and priority.
0oe things have to be done before others can be done. 0oe things are
more important
than others in achieving the goal or ob,ective. &hen your plan is organized by
sequence
and priority, you can accoplish uch ore in less tie.
-usiness li"e consists alost entirely o" pro,ects, one a"ter the other. A pro,ect
can
be defned as a multi"task #ob, a ,ob ade up o" any sall ,obs, each o"
which has to be
done properly to coplete the larger task. Four ability to plan, organize and
coplete
ulti-task ,obs, ever larger and ore copleH, is the ost iportant single
eleent o"
your success, in any feld.
'evelo a &ias for Action
)he last letter in the O302A process, DAE, stands "or Actions. )hese are the
specifc tasks
that you are going to coplete to carry out the plans to ipleent the
strategies to
accoplish the ob#ectives to achieve your goals.
%very iportant task ust be clear, easurable and tie bounded. !t ust
be assigned to
a specifc person who is qualifed to per"or the task correctly, on tie and
on budget.
$hat gets measured gets done!
/ocus on Pro-tability
)he central purpose o" )urbostrategy is to boost your cash Sow and profts,
and
to increase your return on the oney invested in your business. )he ai o"
strategy is to
generate a higher level o" cash Sow and proftability than you would realize
without the
strategy, or with your previous strategy. !n short, it is to make more money
than you are
aking right now "ro the way that you are doing business today.
)he essential resources o" people, oney and talent that you need to
succeed in
your business are always liited. )hey ust be "ocused and concentrated "or
aHiu
results. )his is what a good strategy enables you to do.
/our Ways to Imrove Your &usiness
0etting strategy requires aking hard decisions in "our areasG 9irst, you ust
decide what you are going to do more of.
&hat#s working?
&hat is selling well?
&hat products, services and activities are the ost proftable?
0econd, you ust decide what you are going to do less of.
&hat#s not working?
&hat contributes very little to growth and proftability?
&hat should you discontinue or eliinate based on the realities o" today#s
arket and today#s custoers?
&hat can you do to reduce costs in areas where they contribute very little to
results?
)hird, what are you going to start doing that you#re not doing today?
&hat new products, services or activities should you introduce i" you want to
increase your sales and
proftability, or iprove and strealine your activities?
9inally, what are you going to stop doing altogether?
+eeber, the critical resources o" tie and oney are always scarce. )he
only way you can iprove results is
by discontinuing certain activities altogether. Fou can then channel those
resources into
areas where they yield higher levels o" business results.
Clarity is the key to strategic success. )he ore tie you take to be
absolutely
clear about who you are, and what you want to accoplish, the ore
success"ul and
proftable you will be.
'ecide 12actly What You Want:
5. &hat are your specifc, easurable long-ter goals "or sales and
proftability in
your business?
<. &hat are the specifc ob#ectives o" sales, staKng, production, delivery and
custoer developent that you will have to achieve to accoplish your
goals?
7. &hat are the various ways that you can eet your ob,ectives and achieve
your
goals?
&hat is the best strategy "or you in today#s arket?
?. &hat should you do more of and really "ocus on to increase your sales and
proftability?
@. &hat should you do less of, based on your current eHperience?
&hat#s not working?
A. &hat should you start doing that you are not doing today?
&hat opportunities are available to you?
B. &hat should you discontinue, and stop doing altogether, so that you can
"ree up
resources "or ore proftable activities?
Chater /ive 0 'esign Your Ideal /uture
$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! =Qohn
$c(onald>
0oe tie ago, ! conducted a strategic planning session "or the senior
eHecutives
o" a 45B< billion dollar copany. )he organization was going through a period
o"
considerable turbulence, change, copetition and new governent
regulation. )here had
been lay-o8s, frings, downsizing and divestents. $y clients were the top
eHecutives
who had survived the recent turoil, and the blood letting was not yet over.
!n these
circustances, they were both worried about the "uture and distracted in the
present.
Create A /ive Year /antasy
)o get the centered and "ocused, ! began the strategy session with a
process that
! call )Ideali%ation$* !n this process, which you can use yoursel", ! had the
ebers o"
the top tea create a Dfve year "antasy.E
DLet us put aside the current situation "or the oent,E ! suggested.
D!nstead, tell
e what this copany would look like fve years "ro now i" it was per"ect in
every
respect?E
)his eHercise "orced the to take their attention away "ro the probles o"
the
present and "ocus their thinking on the possibilities o" the "uture.
As we went around the roo, each person contributed an idea about what
the
copany would look like i" it were per"ect. ! wrote each idea on a Sip chart
and taped
the pages onto the walls where everyone could see the. !n less than hal" an
hour, we
generated <B ideal descriptions.
&e then voted on these idealized goals and organized the by priority. &e
ended up
with a series o" clear ob,ectives, including Dhighly proftable, treendous
arket
reputation, high stock price, top leadership, "abulous custoer service, great
place to
work, best anageent, rapid growth rate and top reputation in the
industry,E aong
others.
Thin" In Terms Of Possibilities
! then asked the, DAre these goals possible?E 3ne by one, they agreed that
all o"
these goals were possible in fve years. )hey ight not be achievable in one
or two years,
but in fve years, every one o" the could be accoplished with will and
deterination.
&e cae out o" that session with everyone revitalized and coitted to
working
on achieving one or ore o" those fve-year fantasies. 3ver the neHt two
years, the
copany copletely reorganized. )hey did ore o" soe things and less o"
others. )hey
started doing things that they had not done in the past, and they stopped
certain activities
altogether. )hey took coplete control o" their corporate destiny and
changed it.
2eter (rucker once wrote, D&e greatly overestiate what we can accoplish
in one
yearM but we greatly underestiate what is possible "or us in fve years.E
Thin" About The /uture
/uture(orientation is a key eleent o" strategic planning and strategic
thinking.
!t is a a,or responsibility o" leadership and top people in every area. 3nly
the leader can
think about the "uture. 3nly the leader can plan "or the "uture. )here is no
one else in the
organization who can do it, and i" the leader does not think about and plan "or
the "uture
as an ongoing part o" his ,ob, it will not be done. As they say in Alaska, D3nly
the lead
sled dog ever gets a di8erent view.E
*ow o"ten and how well the top people in the copany think about the "uture
largely
deterines the success or "ailure o" the business. D!" you don#t know where
you#re going,
any road will take you there.E
)he developent o" the quality o" "uture-orientation requires that you
continually
create an ideal iage o" your copany soe tie in the "uture. You ro4ect
for!ard in
your mind 6(7 years and imagine that your comany is erfect in
every resect$ You
decide e2actly ho! much you !ould be selling and earning at that
time$ You imagine
your ideal stoc" rice# your ideal reutation in the mar"et# your ideal
!or" situation and
your ideal human environment$
&ac" /rom The /uture Thin"ing
3nce you have a clear picture o" your
ideal "uture, you then return entally
to
your current situation and think about
what you would have to do, starting
today, to turn your "uture vision into a
current reality. )his is called, Dback
"ro the "uture thinking.E
$ake a list o" all the things that would
have to happen "or you to realize your
"antasy soetie in the "uture. !t is
aazing how your perspective
changes when you
look back "ro the "uture, eHactly as i"
you were looking back "ro the top o"
the
ountain to yoursel" down in the
valley, and seeing the eHact route you
will have to
"ollow to get to the top.
+eaders 5ave 8ision
!n 7766 studies o" leaders reviewed by Qaes $ac2herson, searching "or the
coon denoinators o" leadership throughout the ages, the one quality
that all the
studies had in coon was the quality o" vision. Leaders have visionM non-
leaders do
not.
)o becoe a visionary requires that you develop the ability to iagine,
defne,
articulate, share and inspire other people with an eHciting picture o" the
"uture. Fou get
everyone in your business coitted to "ulflling this vision, and to working
toward it
every day. )his is the key to leadership, and to building a great copany.
Aristotle wrote, )We become !hat !e reeatedly
do$* Fou becoe a leader by thinking
the way leaders think, both in your business and in your personal li"e. Fou
becoe a
leader by thinking about the "uture, and how you can ake it a present
reality.
9o!# 3ore Than 1ver
-ut it is in ties o" rapid change, and turbulence in the arket, that an
eHciting
vision o" the "uture becoes ore iportant that ever be"ore. A vision can
becoe the
"orce that binds people together into a solid tea. !t can give eaning and
purpose to
work, even when ties are tough and pay increases are not possible.
)here are any ways you can approach the developent o" a vision "or your
organization. Perhas the very best vision for your comany includes
t!o "ey
comonents$ /irst# it is focused on your customers and on doing
something for them that
changes and imroves their lives or !or" in some !ay$ Second# it
contains a commitment
to excellence # to be the very best at doing !hat you do for your
customers$ These are the
"eys to vision$
Four vision is to Dbe the bestLE at the ost iportant thing that you do "or
your
custoers. Four vision is to serve your custoers in such a way that you are
seen as
superior in a particular product, service or activity. !agine that you could be
known as
outstanding in any one thing that you do "or your custoers. &hat would it
be? Four
answer can be the starting point o" a vision "or your business that changes
your "uture
copletely.
Your Personal 8ision
Fou need a vision "or yoursel" as well. 2ro,ect "orward @ years in your
iagination. !" your "uture were per"ect in every way, what would it look like?
!" your
incoe, your position in your copany or feld, your "aily li"e, your health,
your ,ob
and every part o" your li"e were ideal in every way, how would it be di8erent
"ro today?
3nce you are clear about your vision, "or yoursel" and "or your business, the
only question you ask is,
&ow do I make it a reality?
)op people think continually in ters o" how? )hey think in ters o" taking
action, o" what can be done.
3nce you have clarifed your vision, and deterined what you will have to do
to ake it a reality, you then do soething every day to ove you toward
the creation o"
your ideal "uture. Fou take coplete control o" your destiny. As (rucker wrote,
D)he very
best way to predict the "uture is to create it.E And the starting point is vision.
'esign Your Ideal /uture:
5. &hat is your vision "or your copany? 2ro,ect "orward and iagine that
your
business was ideal in every way. &hat would it look like?
<. &hat is your vision "or yoursel"? !" your li"e and career were ideal in every
way,
what would it look like?
7. !dealize in each area o" your business. !" your products, services, sale and
proftability were per"ect, what would they look like?
?. !dealize with regard to your people. !" your sta8 were ideal in ters o"
skills,
abilities, personalities and results, how would they be di8erent "ro today?
@. !agine that a a,or agazine was going to write a story about your
copany.
&hat would you want the to say?
A. 2ro,ect "orward fve years and then look back to today "ro that vantage
point.
&hat would you have to change today to create your ideal "uture?
B. !n what one area would it be ost help"ul to sales and proftability i" your
copany were widely known as Dthe best?E &hat steps could you take
iediately to
begin earning that reputation?
Create A 3ission Statement:
5. (eterine your personal reasons "or doing what you do. &hat gives you a
sense
o" meaning and purpose in li"e?
<. (ecide upon the 7-@ key values upon which your copany is based.
!nvolve other
people in the discussion.
7. (efne the actions and behaviors that people will engage in, both inside
and
outside the copany, that are consistent with your values.
?. (esign a ission stateent, an ideal description o" what your copany
wants to
accoplish "or its custoers soetie in the "uture.
7$ &rite out a list o" your values, and what they ean, plus your ission
stateent,
and share the with your sta8 and custoers.
:$ Preate a personal ission stateent "or your career. &hat do you want to
accoplish, and how do you want to be known?
;$ Preate a ission stateent "or yoursel" and your "aily. &hat is it that you
want
to accoplish or achieve with your "aily in the years ahead?
Chater Seven 0 <einvent Your Organi%ation
'very man of genius sees the world at a di(erent angle than his fellows!
=*avelock %llis>
Qack &elch o" Oeneral %lectric once said, D!" the rate o" change outside your
organization is greater than the rate o" change inside your organization, then
the end is in
sight.E
!n ties o" turbulence, you should be prepared to reinvent your business as
o"ten
as necessary as your eHternal world changes.
As an eHercise, iagine that you were starting your business over again
today.
&hat would you get into, or not get into?
&undle of <esources
9or greater perspective, stand back and view your business as a bundle of
resources and
capabilities, like a fre hose o" talent and ability that can be aied in any
directions to
achieve di8erent results. !nstead o" liiting yoursel" to seeing your business
as an
organization that is designed to per"or specifc "unctions, producing and
selling certain
products and services, think o" it as being capable o" doing a variety o" things
copletely
di8erent "ro what you are doing today.
The .reat /ire
As you think about reinventing your business, iagine that your copany
burned
to the ground while you were away. &hen you arrived at the scene, you "ound
that all
your sta8 were sa"e and standing around in the parking lot.
As it happens, there is unoccupied oKce space available across the street.
Fou
can iediately ove into the new space and start your business anew.
*ere is the
questionG &hich o" your products and services would you begin producing
and
distributing right away, and which ones would you not start up again,
knowing what you
now know?
12amine 1very <elationshi
!" you were starting your business over again today, copletely "ree "ro any
encubrances o" the past, which custoers would you call frst, and which
ones not at
all? &hich vendors, suppliers, bankers or other people would you iediately
get in
touch with, and who would you call later, i" at all? &hat would you do frst?
&hat would
you do second? &hat would you not start up again, knowing what you now
know?
<einvent Your Sta= <elationshis
'ow, let#s go back to the parking lot. Let us assue that all o" your people
are
sa"e and standing around waiting "or instructions. &hich o" the would you
take across
the street with you to the new business, and which ones would you leave in
the parking
lot? &ho would be the frst and ost iportant person whose services you
would want to
secure? &ho would be the second ost iportant? &ho would be third? And
so on.
12amine Your Organi%ation
!" you could reinvent your business, what would you do more o"? &hat would
you
do less o"? &hat would you start doing that you are not doing today? &hat
would you
stop doing altogether?
!n reinventing your organization, ask yoursel", D&hat are y ost iportant
talents, skills, abilities and core copetencies, and what else could ! do with
the? &ho
are y best people and what else could they do? :eep thinking about how
you would
reinvent your business i" you were starting over. )his will keep you on the
cutting edge o"
creativity and innovation.
Thin" In Terms of 12cellence
)he key questions in reinvention are, D&hat could you be absolutely eHcellent
at
doing in today#s arket?E &here could you be the best? &here could you
achieve worldclass
quality? &here could you be better than R6J o" your copetitors? D
)he arket only pays eHtraordinary rewards "or eHtraordinary products and
services. &here and how could you do what you do in an eHtraordinary
"ashion?
<einvent Your Career
9inally, think about reinventing yoursel" and your career on a regular basis, as
well. !" you were starting over again today, what would you do more of, less
of, start or
stop? &hat would you get into or get out o"?
!" you were starting your career over again, what additional knowledge and
skills
would you want to have? &hat can you do, starting today, to acquire those
key skills?
!agine that you could do a variety o" ,obs. &hat would you really like to do
with your
li"e?
0ince you were going to have to reinvent yoursel" regularly throughout your
career, it is
very iportant that you think about how you would do it well in advance o"
when it
becoes necessary.
<einvent Your Organi%ation:
5. !" you were starting your business over again today, what would you do
di8erently?
<. !" you were starting your career over again today, what would you get
into, or out o"?
7. !" your business burned to the ground and you could only o8er one o"
your products or services, which one would it be?
?. &ho are your ost iportant custoers, the ones who you would
iediately ove to take care o", i" you were starting over?
@. &ho are your ost iportant people, both inside and outside o" your
business?
A. &hat are your ost iportant contacts and business relationships, the
ones you would want ost to preserve i" you were starting over?
B. !" oney were no ob,ect, what steps would you take today to reinvent
your business?
Chater 1ight 0 Select the <ight Peole
&ere lies a man who know how to enlist into his service people better than
himself!
=Andrew Parnegie -epitaph>
)he people in your copany are the ost iportant parts o" your business.
All work, all
per"orance, all results coe "ro the, both as individuals and when they
work
together in teas o" soe kind. )he anager#s output is the output o" his or
her tea,
and o" the individual tea ebers.
!n business, people coe frst. Qobs, activities and results are only achieved
a"ter
the right people are in place. Qi Pollins says in his book, )ood to )reat, that
the key to
building a great business is, Dfrst, get the right people on the bus, and
second, get the
wrong people o8 the bus.E Any other approach is bound to "ail.
T!o Key >ualities to +oo" /or
)he best people have two qualities. 9irst, they can be counted on to get the
,ob
done, to get it done well and to get it done in a tiely "ashion. 0econd, they
get along
well with others. )hey are good tea players.
Fou should apply *ero"based thinking to each person who reports to you on a
regular basis. Pontinually ask, D:nowing what ! now know, would ! hire, assign
or
proote this person again, i" ! had to do it over?E
!" the answer is D'o,E then your neHt question is, D*ow do ! reove or replace
this
person, and how "ast can ! do it?E
&hat do you want and need those results to be?
3nce you are clear about the results you desire, set specifc easures o"
per"orance on each ,ob, and each task. *ow will you and the candidate
know whether
or not the ,ob has been done properly? +eeber, D&hat gets easured,
gets done.E
And, D!" you can#t easure it, you can#t anage it.E
Select the <ight Peole:
5. +ank every one in your copany on a scale "ro 5-56, with 56 being the
highest, on their copetence at their ,ob.
<. +esolve to build a tea o" highly otivated, copetent and positive
eployees to
help you get the results you need.
7. )hink through each new ,ob or hire care"ully in advance. &rite out the
description
clearly.
?. !nterview at least 7 candidates "or a new position. !nterview the candidate
you
like at least 7 ties, in three places, and have hi or her interviewed by at
least 7
other people.
@. Pheck re"erences care"ullyM seek the "atal Saw or weakness that would
ake the
candidate unsuitable.
A. *ire only positive, likable peopleM they ake the best tea players.
B. +esults are everythingM continually ephasize and eHplain eHactly what
results are
eHpected "ro each person.
Chater 9ine 0 3ar"et 3ore 1=ectively
+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! =2eter (rucker>
All business strategy is ultiately arketing strategy. &henever you are
worried about the
health or "uture o" your business, get back to thinking about arketing and
selling. 9ocus
single-indedly on increasing sales and revenues. Putting eHpenses and
controlling costs
is an ongoing necessity, but you can#t cost-cut your way to business success.
Fou have to
increase cash Sow, and this only coes "ro selling ore o" your products or
services.
9o matter ho! challenging or cometitive the economy aears# as
much as
?@A of your mar"et is still untaed$ )here are alost always hidden
opportunities
around you. Four ability to uncover and take advantage o" those opportunities
is the true
test o" copetence as an eHecutive or as a business.
'ecide Who You Are and What You 'o
0peciali*ation requires that you "ocus on specifc products or services,
specifc
arkets or specifc custoer needs. Fou ust fght the teptation to try to
o8er too any
products and services to too any custoers in too any areas. Fou ust
specialize,
both in your own ind, and in the ind o" your custoer.
&hat is it exactly that your product or service is designed to achieve, avoid or
preserve "or your custoer? &hat are the core copetencies or proprietary
ethods or
technologies that enable you to specialize in this area? &hat specifc proble
or need can
you solve or satis"y "or your custoer? And o" all the di8erent results you can
get with
your business, where do you, should you, could you specialize?
See Yourself As A &usiness
!n your personal li"e, you should ask the sae questions o" yoursel" as well.
&hat
is your personal area o" speciali*ation? !n what way is your work superior to
your
copetitors? &hat is the ideal position or area o" responsibility "or you to
apply your
talents? &here should you be concentrating your energies to get the very
best results and
greatest rewards possible?
%specially, you should continually ask yoursel", $hat is it that I do very, very
well?
&hat is your personal area o" eHcellence? &hat could it be? &hat should it
be?
+oo"ing Ahead
Looking into the "uture o" your business or industry, what new copetencies
do you need
to develop to lead your feld in the onths and years ahead? &hat additional
knowledge
and skills do you need to acquire? &hat are those "ew tasks, which, i" you did
the in an
eHcellent "ashion, would have the greatest positive ipact on your career? !n
what areas
could be paid the very ost "or the application o" your special talents and
abilities? )his
question is ,ust as relevant "or you as it is "or your copany.
3ar"et 3ore 1=ectively:
5. (ecide today to dominate your feld, to be the best at arketing and
innovation in your product or service area. &hat is the frst step you should
take?
<. (eterine your area o" specialization, by product or service, arket or
type o" custoer. &hat should it be? &hat could it be?
7. *ow do you di8erentiate your product or service "ro those o" your
copetitors? !n what ways are you superior to anyone else? &hat could it be?
&hat
should it be?
?. &hat are you best arket segents? &here are your highest probability
custoers? &ho can beneft the ost "ro using what you sell?
@. *ow can you organize your business so that you concentrate your
arketing and selling e8orts on those custoers who can buy and pay "aster
than any
others?
A. &hat additional products, services, knowledge or capabilities will you
need to doinate your arkets in the onths and years ahead?
B. &hat should you iediately start doing ore o", less o", start or stop
to ad,ust to the current arket?
Chater Ten 0 Analy%e Your Cometition
1oncentrate your strengths against your competitors relative weakness!
=-ruce
*enderson>
Kno! Your 1nemy
*ere then is a question "or youG &ho is your copetition? %Hactly? Four
choice o"
copetitor deterines alost everything you do in your arket, ,ust as the
choice o" an
adversary deterines everything a general does in the process o" conducting
ilitary
operations.
'etermine Their &uying 3otives
3nce you have deterined why it is that people buy "ro you, you ust then
ask
and answer, D&hy do people buy "ro y copetitors?E &hat value or
benefts are your
potential custoers convinced that they receive when buying "ro your
copetitor rather
than "ro you?
&hat are your copetitor#s key strengths? &hat are his areas o"
specialization,
di8erentiation, segentation and concentration? &hat does your copetitor
have that
you don#t have? &hat does he o8er that you don#t o8er? &hat is he doing
ore o" or
better than you? &hat is his unique selling proposition?
O=set Their Advantages
As you study your copetitors, look "or ways to o8set or neutralize the
advantages
their custoers perceive the to have. &hat are your copetitor#s
weaknesses? *ow can
you eHploit these weaknesses? &hat do you do better than they do? !n what
ways are
your products or services superior to their o8erings? !n what areas do you
have a distinct
advantage over your copetitors? &hat can you do to o8set your
copetitor#s strengths
and aHiize your advantages? *ow can you better position yoursel" against
your
copetitors in a tough arket?
)he ore tie you take to study and understand why and how your
copetitors
are success"ul in selling to your custoers, the ore likely it is that you will
fnd an
opportunity to take away their arket share. As 0un )zu says in he 2rt of
$ar, D!" you
know both yoursel" and your eney, you will prevail in a hundred battles.E
Analy%e Your Cometition:
5. &ho is your copetition "or what you sell, with the eHact custoers you
are
trying to attract?
<. &hat would happen i" you changed your o8erings in such a way that you
targeted
a di8erent group o" custoers, one that would be easier to sell to?
7. &hy do your potential custoers buy "ro your copetitors? &hat
advantages do
they perceive?
?. &hat is your copetitor#s unique selling proposition? &hat special "eature
or
beneft does his product or service have that yours does not?
@. !n what ways are you superior to your copetitors? &hat can you o8er
that they
cannot? *ow can you ephasize this advantage in your sales and arketing
e8orts?
A. &here is your copetitor vulnerable? *ow could you eHploit this to your
advantage?
B. *ow could you alter your arketing strategy in such a way that you could
achieve
doinance in a particular area, with a specifc custoer or arket segent?
Chater 1leven 0 'o It &etter# /aster# Cheaer
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!
=Q. 2aul Oetty>
)he ost iportant single deterinant o" your success is your area o"
competitive
advantage. !t is ore iportant than all other "actors. !t deterines the rise
or "all o" your
business, your level o" proftability, your position in the arketplace and
everything else
you accoplish.
Four copetitive advantage ust be crystal clear to you and to everyone in
your
copany, as well as to your prospective custoers, Lack o" clear copetitive
advantage
leads quickly to diinished sales, loss o" arket share, lower proftability,
price cutting,
and ultiately to business "ailure.
Your 5igh Concet
Four business was started because you or your copany had an idea "or a
product or service that was di8erent or better "ro other products and
services. !t o8ered
to satis"y the sae need or solve the sae proble better, "aster or cheaper
than anyone
or anything else then available.
Four ability to di8erentiate your product in the inds and hearts o" your
custoers is the key to winning the in the frst place, and then keeping
the a"ter the
initial sale. )o buy "ro you, a custoer ust be convinced that, all things
considered,
your o8ering is di8erent and better than anything else that is currently
available at the
sae price. Qack &elch was "aous "or saying, D!" you don#t have copetitive
advantage,
don#t copeteLE
Three Areas of 'i=erentiation
)o succeed in a tough arket, what you sell ust be superior to your
copetitor#s o8erings in at least three ways. It must be better# faster#
cheaer# and easier
to use in some !ay that ma"es it more attractive than rival roducts
or services$ !t ust be
sold ore pro"essionally or serviced with greater sensitivity, speed or
eKciency. !t ust
be better in at least three areas.
3ne o" your key ,obs in strategic thinking is to identi"y the three areas where
you are
better and then to ephasize those areas o" superiority in all your arketing
and sales
*ow could you achieve operational eHcellence in your business, or soe part
o" your
business, in such a way that you could be the low-cost provider in your
arket? *ow
could you draatically reduce your costs o" doing business and use this low
cost
advantage to increase your sales and proftability?
+ead the /ield
)he second area where you could achieve copetitive advantage is in the
use o"
innovative technology leading to the production o" high quality products
and services.
Popanies like $ercedes and +oleH "all into this category, as does 0ony and
LeHus.
Pustoers are willing to pay a preiu "or a brand nae that represents
high quality and
cutting-edge technology. &here are there opportunities "or you to distinguish
your
products or services by using your iagination to becoe the quality leader
in your feld?
Close to the Customer
)he third area where you could develop copetitive advantage is in being
Dclose to the
custoer.E )his requires that you invest the tie to develop high quality
relationships
based on Dcustoer intiacy.E Pustoers will pay ore and reain loyal
longer to
copanies that see to know and understand the better than others.
2roviders o"
specialized services, such as consulting frs, law frs and accounting frs
"all into this
category.
!n what ways could you develop higher levels o" trust and credibility with your
custoers? &hat could you do to deonstrate to your custoers that you
really care
about the and their interests? )his strategy can o8er a breakthrough
opportunity,
especially in the sale o" eHpensive products and services where resales and
re"errals are
possible.
Pic" Your Targets
)o lead your feld and achieve higher levels o" proftability, you have to be
outstanding in one o" these three areas and very good in the other two. 3ne
o" the ost
iportant decisions you ake is to choose your area o" copetitive
advantage, and then
to dedicate your copany to achieving it.
Strive /or Sueriority
Four area o" eHcellence is the key to your success in a copetitive
arketplace.
)his is where your product or service stands out in coparison to your
copetitors. !t is a
value or beneft that you o8er that no one else o8ers. &ith regard to your
products or
services, what is it? &hat could it be? &hat should it be?
Four area o" superiority is defned as an area o" per"orance where your
product
or service is superior to that o" your copetitors. )his per"orance di8erence
is
signifcant enough that your custoer will buy it, and even pay you ore "or
it. !n what
way does your product per"or better, in ters o" getting results that your
custoer cares
about, than your copetitors? *ow could you iprove the per"orance o"
your products
or services in soe eaning"ul way?
9inally, your uni3ue selling proposition is soething that you and only you
o8er
to your custoers, and is soething that they really care about. 'o one else
does as well
as you do in this area. 'o one else achieves the sae beneft or result. &hat
is your
unique selling proposition? &hat could it be?
+oo" Into Yourself
3n a personal level, you ust continually ask these questions o" yoursel".
&hat is your
personal area o" eHcellence? &here are you superior to your copetitors?
&hat is your
unique selling proposition? !n what ways do you do your ,ob better or "aster
than others?
&hat is it that you and only you do in an outstanding "ashion "or your
copany? &hat
could it be? &hat should it be?
2erhaps the ost iportant area o" superiority you can develop is your ability
to
do your ,ob quickly and well, in an eHcellent "ashion, consistently and
dependably every
tie. )his is the key to success as an individual in a copetitive arketplace.
'o It &etter# /aster# Cheaer:
5. !n what ways are your ost iportant products or services superior to
those o"
your copetitors?
<. &hat is your recognized Darea o" eHcellence?E !" you were to conduct a
survey,
what would people say that your copany does especially well?
7. !n what ways are your products or services "aster to acquire, use and en,oy
than
your copetitor#s?
?. &hat is your unique selling proposition? &hat is it that your products or
services
o8er that no other copany can atch?
@. !n what ways are your products or services cheaper to buy and use, or
achieve
superior fnancial results "or your custoers "or the sae cost?
A. !" you were known "or being outstanding in any one area o" your product or
service o8erings, what one distinction would have the greatest positive
ipact on your
sale and proftability?
B. List the three areas where your products are, or can be, superior to any o"
your
copetitors. &hat is your plan to achieve this area o" arket superiority?
&hat should
you do frst?
What 'o You SellB
)he frst part o" the arketing iH is your 4roduct or service. Always defne
your
product or service in ters o" what it DdoesE "or your custoers, versus what
it Dis.E *ere#s
the question, D!s your product or service, as you are o8ering it today, ideally
suited "or
your current arket and custoers?E
5o! 3uch 'o You ChargeB
)he second part o" the arketing iH is your 4rice. !s your price the right
price "or what
you are selling? 0hould you change your price in soe way? 0hould you
increase it,
decrease it, cobine your price with other ites, or add ites to your price?
0hould you
change your ters or o8er soething di8erent "or the sae price?
'ouble Your PriceB
!s there any place in your business that
you could increase your prices and still hold onto your arket?
5o! 'o You Sell ItB
*ow are you currently prooting and selling your product or service? &hat#s
working?
&hat#s not working? 0hould you change your ethods o" advertising,
arketing, selling
or acquiring custoers in any way?
Sell 3ore Stu=
%specially, should you upgrade and iprove your direct selling ethods,
people,
presentation, and capabilities?
Is Your Phone <ingingB
%ver a"ter, when ! think about the e8ectiveness o" advertising, ! always ask,
D!s
your phone ringing?E
Where 'o You SellB
)he "ourth eleent o" the arketing iH is the 4lace. )his is the specifc
location where
the sale o" your product takes place. &here eHactly do you sell your product
today? (o
you sell in hoes, oKces or in your own retail establishent? (o you sell in a
particular
city, state or nationwide? (o you sell in stores or by direct selling or by direct
ail? $ost
iportantly, should you change the place at which you o8er your products?
A change in the location where you o8er your product or
service could change the direction o" your business. &hat could it be?
12amine Your Assumtions
&henever you have diKculties selling a suKcient quantity o" your product or
service, you should eHaine all o" your assuptions in the areas o" product,
price,
prootion and place. Fou should be willing to consider the possibility that
your ethod
is copletely wrong in one or ore o" these areas.
!t o"ten happens that a single change in one o" the D2#sE in the arketing iH
can
change the entire nature o" your business, boost your results, increase your
proftability
and ove you toward arket leadership. :eep an open ind.
The Ans!ers Are Changing
&hat is the correct arketing iH "or you to sell the very ost at the highest
cost, and
earn the greatest proft? &hat assuptions are you going on that
ay no longer be true?
Change Your 3ar"eting 3i2:
C$ -e prepared to challenge every aspect o" your arketing, especially i" it is
not
working as well as be"ore. &hat areas cause you the greatest "rustration and
dissatis"action?
D$ &hat eHactly do you sell, defned as what it DdoesE "or your custoers,
versus
what it Dis?E
6$ &hat prices do you charge? *ow could you change the way you charge to
ake
buying "ro you ore attractive?
E$ *ow do you proote your product? Pould there be better ways o"
advertising
your products or services that would give you better results?
7$ *ow do you sell your product or service? !s every person who deals with
your
custoers "ully trained in every key result area o" selling?
:$ &here do you sell your product or service? 0hould you be eHploring other
locations or ethods o" sale?
;$ 0hould you change ore than one o" the eleents o" the arketing iH at
the
sae tie? Phallenging arket conditions o"ten call "or bold departures "ro
the ethods
o" the past, especially i" they are no longer working.
What Words 'o You O!nB
(eliberately or accidentally, each product or service develops a reputation
that
positions it against its copetitors. &hat is yours?
Create Your O!n Cheat Sheet
*ere is the question. &hat words do you own? &hat words should you own in
the
hearts and inds o" your prospective custoers? &hat words could you own
i" you were
to reorganize and redirect your arketing e8orts?
As an eHercise, iagine one o" your prospects eeting with one o" your
custoers. !agine that your custoer called you and asked you what you
would like
hi to say to your prospect to convince your prospect to buy "ro you?
!" you could put together a Dcheat sheetE with the eHact words or phrases
that you
would like your custoer to leave in the ind o" your prospect, what words
would you
choose? &ould you choose words like excellent 3uality, high integrity, friendly
service,
nice people, 3uick responses to problems, easy to work with, great prices?
*ow do you want
to be described by your custoers and potential custoers? 3" all the words
and phrases
that custoers could use to describe your products and services, and your
copany,
which would be the ost helpful "or you and your business?
What Is Your &randB
*ow are you described and thought about by others when you are not there?
&hat is
your personal brand? &hat is your reputation? *ow do other people think and
talk about
you, both as a person and as a contributor to the organization?
Position Your Comany /or Success
5. &hat is your copany#s reputation in your arket? *ow do custoers and
copetitors think and talk about you?
<. &hat words do people use when describing your products or services to
others?
7. !" you could DownE certain words that apply to your copany, your
products or
services, which words would you choose?
?. &hat words, i" they were autoatically associated with your copany,
would
have the greatest positive e8ect on your sales and proftability?
@. &hat changes would you have to ake to assure that every custoer
contact
rein"orced the essage that you wanted to send to your custoers about
doing business
with you?
A. &hat are the ost iportant proises that you ake to your prospects to
get
the to buy "ro you "or the frst tie? (o you keep these proises a"ter the
sale?
B. &hat are the ost positive things that your custoers say about dealing
with your
copany? *ow could create a syste to assure that ore custoers say
these things?
%Haine your coplete range o" products and services, especially the newer
ones,
and ask, D&hich o" these has the potential to be a big seller?E &hat would
you have to do
or invest in o help ake it a a,or source o" sales and revenues?
:eep asking yoursel", D!" ! had not already coitted tie and oney to this
product, knowing what ! now know, would ! start investing in it again today?E
Apply the 0-U concept to yoursel" and your career. Fou have several areas o"
talent and ability, core copetencies, eHperience, knowledge and education.
&hat are
your cash cows, the skills that are central to your value to the organization?
&hat are your Dstars,E the eerging areas o" activity, or new skills and
knowledge
that can ake you eHtreely valuable in the "uture?
&hat are your potential areas o" great success? &hat are the pro,ects,
responsibilities and areas o" opportunity, which, i" you eHploit the "ully, can
enable you
to ove ahead ore rapidly in your career?
9inally, what are the DdogE areas o" your work li"e? )hese are the tasks or
skills
that you ay have astered in the past, but which distract you "ro your
"uture. )hese
are the ,obs and activities that take up a lot o" tie, but which are nowhere
near as
valuable as other things you could be doing. &hat are they?
'evelo Strategic &usiness ,nits
5. -egin today to view each product or service as a separate business,
responsible
"or generating a certain aount o" proft every onth.
<. Oroup your di8erent products or services by siilar characteristics, siilar
custoers, or siilar arkets.
7. &hat are the cash cows o" your business? &hat are the core products or
services
that are essential to your overall proftability?
?. &hat can you do today to sa"eguard and nurture your cash cows to assure
that
they continue contributing sales and cash Sow "ar into the "uture?
@. &hat are the DstarsE o" your business? &hat are the products that are
selling well,
increasing in arket share, and generating high profts?
A. &hat could you do to increase the sales and proftability o" your stars?
B. &hat are the Dquestion arksE o" your business? &hich o" your current
products
or services should you discontinue, knowing what you now know?
What Is To &e SoldB
)he frst question is, )What is to be soldB* )o answer this correctly, you
have to defne
your product or service in ters o" what it does, and how it benefts your
custoer. *ow
does it iprove his or her li"e or work? 3" all the benefts that a custoer
en,oys "ro
purchasing your product or service, what is the priary beneft, the one thing
that you
o8er that akes you superior to any other copetitor in the arketplace? (o
you know
the answer to this?
Who Is .oing To Sell ItB
)he second question is )&y !homB* &ho is actually going to sell the
product or service
and get the check "ro the custoer? *ow are you going to recruit, train,
anage, feld
and support the sales person? *ow is this salesperson going to uncover the
necessary
leads and get "ace to "ace with the prospective custoer?
Who Is Your CustomerB
)he neHt part o" the question is DTo !homB*
5o! 3uch Are You .oing To ChargeB
!s there any price you would raise, lower or odi"y in soe
way?
Collecting Payment
)he neHt question is How is it going to be paid for? (o you require
payent
in "ull, in advance? (o you require a deposit when the sale is ade and with
the balance
to be paid at a later tie on certain ters? (o you o8er credit or fnancing?
%specially,
what do your copetitors do?
3"ten a change in the way you charge, or in your pricing structure, can
draatically increase your sales. &hat could you do di8erently in today#s
arket that
would ake it easier or ore attractive to buy your product or service?
'elivering The .oods
)he fnal part o" the question is How is going to be delivered
satisfactorily?
&hat is the eHact process o" getting the product or service to your custoer
in such a
way, and at such a level o" quality, that the custoer both buys "ro you
again and
recoends you to others?
Sell 3ore 1=ectively:
5. &hat is the eHact sales process necessary to sell your product or service,
"ro the
frst custoer contact through to the close o" the sale? (o you know? *ow
could it be
iproved?
<. &hat ust your prospective custoer be convinced o" be"ore he chooses
your
product over that o" your copetitor?
7. !" oney were no ob,ect, what special results or benefts do you o8er in
your
sales e8orts that ake your product ore desirable than any other available?
?. &hat is your process "or recruiting salespeople? &hat edia do you use?
&hat
levels o" education and eHperience do you require?
@. &hat kind o" a copensation syste do you have "or salespeople? &hat is
it
based on? *ow could it be iproved so that it otivates better sales
per"orance?
A. *ow uch o" your business coes "ro re"errals "ro happy custoers?
*ow
could you increase the nuber o" re"errals you get as a percentage o" your
business?
B. &hy aren#t your sales twice as high already? &hat sales e8orts could you
ake to
tap into that I6J o" the arket that has never heard o" you?
/ollo! the /ormula
D&hy a ! not at that goal already?E &hat is holding you
back? &hat is the constraint, chokepoint or bottleneck that sets the speed on
how "ast you
achieve your specifc goals o" sales, cash Sow or proftability in your
business?
Let us return to y earlier question, D&ould you like to double your sales and
double your incoe?E !" your answer is DyesE, then why haven#t you done it
already? &hy
aren#t your sales twice as high? &hy aren#t your profts twice as high? &hat is
holding you
back? &hat is constraining you? &hat is the liiting "actor?
Identify Your Personal Constraints
)hink about your personal li"e and goals as will. Ask yoursel", D&hat are y
ost
iportant goals? &hy a ! not there already? &hat is it within me that is
holding e
back?E
!s it the lack o" a particular quality, attribute or skill that sets the speed at
which !
achieve y goals? !s it a particular attitude or belie" that is holding e back?
And ost
iportant, what could you do iediately to alleviate your key constraints,
starting today?
1liminate the <oadbloc"s:
5. 0et clear, easurable goals "or sales and proftability. 'ow ask, D&hat
deterines
the speed at which ! achieve these goals?E
<. Use sentence copletion eHercises. 0ay, D&e could double our sales i" it
,ust
wasn#t "or..E and fll in the blank.
7. !denti"y the a,or block to your achieving your ost iportant goal? *ow
could
you reove it?
?. Look within your copany "or the liiting "actors that hold you back. &hat
are
the chokepoints in your business?
@. Assess each person in each key position. Are they copetent and capable
o"
doing what needs to be done "or you to be success"ul?
A. 3nce you have identifed your key constraint to business success, ask,
D$hat else
is holding us back?E :eep asking, D&hat else?E until you get to the real
proble.
B. !n your own career and personal li"e, what sets the speed at which you
achieve
your goals? Look within yoursel" "or the answers.
3a"e /aster# &etter 'ecisions
&henever they bring you a proble
or a question, always ask, D&hat do you think we should do?E
<eengineer Your Comany:
5. 2ractice siplifcation as a way o" li"e. !n what areas o" work has your li"e
becoe
too coplicated, and what can you do to get it back under control?
<. 2ractice zero-based thinking with every step and every activity. !" you were
not
now doing it this way, would you start doing it this way again today?
7. )ake a single copleH process or ,ob and ake a list o" every step "ro
beginning
to end. *ow could you reduce the nuber o" steps by 76J the frst tie
through?
?. &hat tasks or activities could you delegate to soeone who can do the
B6J as
well as you?
@. &hat parts o" your business could you outsource to copanies or
individuals who
specialize in that area?
A. &hat parts o" your work could you eliinate altogether with little or no
ipact on
your botto line?
B. &hat parts o" your personal li"e do you need to strealine and sipli"y?
&hen are
you going to do it?
Pum , Your Pro-ts:
5. (o a coplete proft analysis on every product and service you o8er. +ank
the
"ro highest to lowest.
<. !denti"y the <6J o" your products that account "or I6J o" your sales.
&hich are
they?
7. !denti"y the <6J o" your products and services that account "or I6J o"
your
profts. Are they the sae as your answer to T<?
?. A"ter deducting all direct and indirect costs, which are your ost proftable
products or services based on cost and return on investent?
@. *ow uch is your tie worth on an hourly basis? -uild this cost into
everything
you do to get an accurate easure o" costs and proftability.
A. Attribute a percentage o" all general and adinistrative costs to each
product or
service you sell. )his eHercise o"ten turns profts into losses.
B. !" your copany was "acing serious fnancial shortages, which products or
services
would you "ocus your energies on, and which would you discontinue? )hink
about doing
it now.
It Starts /rom The To
%ncourage each person to fnd ways to do their ,obs better, "aster, and easier.
Allow the the "reedo to eHperient with iproveents, with no "ear o"
criticis i"
they don#t work. 0oeties the greatest iproveents occur as the result o"
a series o"
sall eHperients that were not success"ul.
Fou should stand back regularly and eHaine every product, service and
process.
*ow could you iprove it in soe way? *ow could you ake it better, "aster
or cheaper?
*ow could you get the sae or better results "aster, or at a lower cost? 'ever
be satisfed
or content with eHisting quality levels. Always look "or ways to iprove upon
the.
-rainstor with your tea regularly to generate ideas to cut costs, iprove
quality,
increase sales and boost profts. %ncourage everyone to think, all day long,
about how
they can do their ,obs better. $ake this coitent to continuous
iproveent a part o"
your corporate culture.
Commit to 12cellence
!" everyone in your arketplace re"erred to you and your o8erings as the
best in the business, what kind o" a di8erence would that ake in your sales
and
proftability?
&ith that as your goal, what would you have to do, starting today, to assure
that
everyone re"ers to you as Dthe bestE soetie in the "uture? &hat could you
do, starting
today, to begin this process? &hat is the frst step you should take?
>uality and Pro-tability
D&hich o" these copanies do you "eel is the best in this particular industry?E
*ere#s the questionG !" such a survey were done aong potential custoers
"or what you
sell, where do you "eel your copany would rank in such a coparison?
&ould you be
ranked as Dthe best,E or soewhere lower? &hat could you do to ove
higher in the
rankings? &hat one step could you take iediately?
5o! 'o Customers 'e-ne >ualityB
What 'o Customers WantB
Commit to Continuous Imrovement:
5. *ow do your custoers defne quality? &hat is ost iportant to the in
choosing your product or service?
<. *ow do you rank against your copetitors on a scale "ro one to ten? *ow
could
you iprove your ranking iediately?
7. 0et up a reward syste in your copany "or suggestions and ideas to
iprove
quality and achieve greater custoer satis"action?
?. (o you have quality and per"orance standards "or people, products and
activities
in your copany? (oes everyone know what they are?
@. &hat copany do you think is the best in your business, the ost
respected and
proftable? *ow could you benchark yoursel" against the?
A. &hat one step could you take iediately to iprove custoer
satis"action with
your copany?
B. &hat could you do personally to upgrade and iprove the quality o" your
per"orance in the ost iportant things you do in your ,ob?
'e-ne Your Core &usiness
&hat is your core business? !" everything else was stripped away, what would
be le"t at
your core?
!denti"y the <6J o" opportunities available to you today that can be
responsible "or
I6J o" your sales and revenues in the years ahead. )hese will alost always
be
eHtensions o" your current business, your core copetencies, and your areas
o"
eHcellence. Four choice o" the opportunities available to you largely
deterines the
"uture o" your business. &hat are they?
/ocus On 8alue
&hat are the <6J o" your work activities that account "or I6J o" your
personal
value and your contribution to your copany? !" you ,ust doubled the aount
o" tie you
spend on the <6J o" your high value tasks, and discontinued the I6J o" low
value.no
value tasks that you do, you could becoe ost o" the ost productive
people in your
copany. )hese are your core tasks.
&hat are the <6J o" probles, aggravations, and irritations that account "or
I6J o"
your headaches in your work? &ho are the ost diKcult people, custoers
or situations
that you have to deal with each day? &hat can you do today to iniize or
eliinate
the?
-ased on this I6.<6 analysis, what steps can you take iediately to
iprove,
increase, and strengthen your core products, services, custoers and
activities? &hat
should you do frst?
Where 'o You 12celB
!n what areas o" your products and services are you, or could you be better
than
R@J o" your copetition?
Advance Planning
)his 1itadel is your core business. &hat is yours? &hatever it is, practice
D0cenario
2lanningE on a regular basis. Ask yoursel", D&hat is the worst thing that could
possibly
happen in y arket today?E
&hatever your answer is to that question, begin aking provisions today to
assure
that you will be able to survive, should it occur.
Your Personal Citadel Strategy
As an individual, you ust be clear about your personal core copetencies,
as
well. *ow could you iprove in each one o" the? &hat core copetencies
will you
need to lead your feld in the years ahead? &hat is your plan to acquire the
core
copetencies o" toorrow?
Concentrate On the Core:
5. &hat is your core business? &hat products and services are ost
responsible "or
your success today?
<. &hat are your core copetencies? &hat is it that your copany does
eHtreely
well?
7. &hat are the worst possible things that could happen to your business in
the neHt
year? &hat are your plans to deal with the, should they occur?
?. &hat are your non-core products, services or activities? &hat would
happen i" you
discontinued the entirely?
@. &ho are your core custoers, and what are you doing to assure that they
never
leave you?
A. &ho are your core people, the ones who are ost iportant "or the
survival and
growth o" your business? &hat is your strategy to keep the?
B. &hat are your core "unctions? &hat are the things you do that are central
to your
,ob? &hat activities are peripheral?
/our Key >uestions
&hen considering buying a product or service, custoers have "our questions
that
ust be answered be"ore going aheadG
5. &hat does it cost?
<. &hat do ! get "or the oney?
7. *ow "ast do ! get the benefts you proise?
?. *ow sure can ! be that ! will get those benefts?
&hichever copany or salesperson answers these questions ost
convincingly
wins the sale.
'eliver On Your Promises
D&hat results or benefts do y custoers eHpect o" y
product or service?E and D*ow consistently do y custoers get those
results and benefts
when they buy y products or services?E )his is the true defnition o"
Dquality.E
Uuality can be defned as, Dthe percentage o" ties that your product or
service
does what you say it will do, and continues to do it.E
A quality rating o" 566J, or per"ect quality, eans that what you sell always
delivers on your proises. A quality rating o" R6J eans that your product
gets the
desired or proised results nine out o" ten ties.
+ittle Things 3ean A +ot
9ederal %Hpress has deterined that i" its quality rating was RR.R6J, they
would
ake istakes in the delivery o" ??,666 envelopes a day. At RR.R6J quality,
9ederal
%Hpress would collapse under its own weight o" con"usion. )hat is how
iportant quality
is in a business.
Four personal success is also deterined by how consistently and dependably
you
per"or and deliver on your responsibilities and proises. Fou should
continually ask
yoursel", D&hat results are eHpected o" e?E
Four level o" e8ectiveness is always defned by others, by what they need
"ro
you. Leaders are always asking, D&hat does this situation need o" e?E 3nce
they are
clear, they concentrate their energies in those areas.
Ask yoursel", D3" all the results ! can accoplish, what are the ost valuable
and
iportant in ters o" y rewards and y "uture?E
Imroving Your Ability to .et <esults
*ere are seven o" the best questions you can ask and answer to iprove your
ability to get resultsG
5. D&hy a ! on the payroll?E &hat eHactly have you been hired to
accoplish?
$ake sure that what you are doing every day is the answer to this question.
<. D&hat are y highest value tasks and activities?E 3" all the things that you
could be doing during the day, what are the activities that you engage in that
contribute
the greatest value to yoursel" and your copany?
7. D&hat are y key result areas?E &hat are the core copetencies and key
tasks
that you ust absolutely, positively do in an eHcellent "ashion to produce the
ost
iportant and valued results eHpected o" you? +esolve today to becoe a
Ddo-it-toyoursel"-
pro,ect.E 9or the rest o" your career, dedicate yoursel" to continually learning
and
iproving in those areas where top per"orance is ost vital to your
success. Oetting
better at your key tasks is one o" the best tie saving techniques o" all.
?. D&hat can ! and only ! do that, i" done well, will ake a real di8erence?E
)here is always soething that only you can do that can ake a signifcant
di8erence to
your li"e and your work. !" you don#t do it, it won#t get done. 'o one else will
do it "or
you. -ut i" you do it, and you do it well, it can ake a signifcant di8erence.
&hat is it?
@. D&hat one skill, i" ! developed and did it in an excellent "ashion, would
have
the greatest positive ipact on y career?E )here is always one skill that i"
you developed
it and did it well, would have a greater and ore positive ipact on your
career than any
other single skill. Four ,ob is to identi"y that skill and then put your whole
heart into
becoing absolutely eHcellent in that area, whatever it is.
A. D&hat one result, i" ! achieved it consistently "or y custoers, would
ost
satis"y those custoers and bring e the greatest nuber o" additional
custoers?E &hat
ust your custoer be absolutely convinced that he or she will receive "ro
you in order
to buy your product or service and to recoend it to his or her "riends? *ow
could you
iprove your quality and service in that area?
B. )he fnal question "or personal success, nuber seven, is thisG D&hat is the
ost valuable use o" y tie right now?E Use this question as your guiding
star
throughout the day. :eep asking, What is the most valuable use of my
time, right
now?
All 'ay +ong
!" you could only per"or one task all day long, what one thing could you do
that
would contribute ore value to your li"e and work than any other single task
or activity?
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Whatever your ans!er# ut mastery of that tas" at the to of your
list of riorities$
'edicate yourself to getting better and better doing the one thing
that can ma"e more of a
di=erence than anything else$ This is the "ey to getting suerb
results at every stage of
your life and career$
Once more# here then are the DC "ey ideas in the Turbostrategy
rocess:
5. Start Where You AreG (o a coplete and honest analysis o" your
business as it is
today, including the current status o" your sales, revenues, proftability and
the arket
situation around you.
D$ 'ra! A +ine ,nder the Past: Apply zero based thinking to every part o"
your
business. !" you were not doing it today, knowing what you now know, would
you get
into it again today?
6$ Conduct A &asic &usiness Analysis: %Haine your products, services,
processes,
and activities as i" you were looking at the "or the frst tie. -e prepared to
ask yoursel"
the Dbrutal questionsE about each one o" the.
E$ 'ecide 12actly What You Want: 0et clear, written, easurable goals
and
ob,ectives "or yoursel" in each part o" your business.
7$ 'esign Your Ideal /uture: 2ro,ect "orward 7-@ years and iagine that
your
business was ideal in every respect. &hat would it look like? &hat could you
do, starting
today, to ake that "uture vision into a current reality?
:$ Create A 3ission Statement: (ecide eHactly what it is you want to
accoplish
"or others with your business. $ake it easurable. $ake it eHciting. 0hare it
with
everyone.
;$ <einvent Your Organi%ation: !agine starting your business or career
over again
today, with your present knowledge and eHperience. &hat would you do
di8erently?
?$ Select the <ight Peole: 9ully R@J o" your success in business will be
deterined by the people you choose to work with and "or. )ake the tie to
ake good
personnel decisions.
I$ 3ar"et 3ore 1=ectively: )hink through every part o" your arketing
strategy by
applying the "our principles o" specialization, di8erentiation, segentation
and
concentration to every product and service.
C@$ Analy%e Your Cometition: (ecide eHactly who you are copeting
against, and
why it is that your prospective custoers pre"er to buy "ro the. *ow could
you o8set
this perceived advantage?
CC$ 'o It &etter# Cheaer# /asterG Pontinually seek ways to serve and
satis"y your
custoer in a superior "ashion to any one else in your arket. 'ever stop
raising the bar
on yoursel".
CD$ Change Your 3ar"eting 3i2: !agine being your own anageent
consultant
and asking yoursel" hard questions about the appropriateness o" your
product, price,
place and prootion in today#s arket.
C6$ Position Your Comany /or SuccessG (eterine how you want to be
thought
about and talked about by your custoers and prospective custoers. &hat
are the very
best words they could use to describe you?
CE$ 'evelo Strategic &usiness ,nits: (ivide your products and services
into one
o" "our categoriesG cash cows, stars, 3uestion marks and dogs. $ake one
person
responsible "or sales and proftability "or each product or group o" products.
C7$ Sell 3ore 1=ectively: 9ocus single-indedly on upgrading the quality
o" your
sales e8ort. *ire ore selectively, train ore thoroughly, and anage ore
pro"essionally. 0ales are the li"eblood o" the business.
C:$ 1liminate the &ottlenec"s: !denti"y the "actors that deterine how
"ast you
achieve your goals o" sales and proftability. Poncentrate on alleviating these
bottlenecks
in every part o" your business.
C;$ <eengineer Your Comany: Pontinually seek ways to strealine and
sipli"y
the process o" producing and selling your products and services. Learn to
delegate,
outsource, downsize and eliinate the copleHity o" everything you do.
C?$ Pum , Your Pro-ts: %valuate every product and service to
deterine eHactly
how uch net proft you are actually earning "ro each ite you sell. +esolve
to
discontinue products and services that are not as proftable as others, and
channel ore
resources into those products that are the ainstays o" your business.
CI$ Commit To Continuous Imrovement: !nstall the :aizen process o"
Dcontinuous betterentE into your copany. 9ind out how your custoer
defnes
DqualityE and then continually strive to eHceed eHpectations.
D@$ Concentrate On The Core: !denti"y the ost iportant products and
services
you o8er, and then "ocus on getting better and better selling ore and ore
o" the.
2robably I6J o" the arket potential "or your core products has not yet been
tapped.
<5. /ocus On <esults: Poncentrate your best energies and resources on
getting the
ost iportant results possible "or your copany. 0et priorities in every area
and then
work single-indedly to coplete the "ew tasks that are ore valuable than
everything
else put together.
)he ost iportant part o" the )urbostrategy is not what you learn, but the
actions you
take, and how quickly you take those actions. )here is a direct relationship
between how
"ast you ove on a new idea and how likely it is that you will ever ove on a
new idea.
+esolve today to becoe intensely action-oriented "or the rest o" your career.
Qust do itL
The Turbostrategy Process