s?

Look at the percentages. Analyze your return-on-equity, return-on-

investment,
and return-on-sales.
Are they increasing or decreasing?
If your goal is to build a great company, hy isn!t your company already
great?
"ore capital required for #mpoer netork
$hich of your products or services is selling ell today?
"y sales skills and #mpoer %etork
$hich of your products and services are the most pro&table?
"y sales skills and #mpoer %etork
$hich ones are doing poorly?
$hich ones do you lose money on?
'rinking too much alchohol
Is your current business situation, positive or negative, in any area?
"ore capital required
(emporary or part of a long-term trend?
Longterm
)o can you kno for sure?
Action
)o can you &nd out?
*e+oin #mpoer %etork ith ,I"-.ick /trizheus0Like )obbs01ro+ect A$2L
$hat should you then do?
"ake 345,555 &rst 65 days
Clarity Is the Key
$hy has your business been successful in the past?
"y study of business
$hat have you done ell in the past that has been responsible for your
success to date?
"y study of business, marketing and sales.
$hat are the most important skills and competencies that your company
possesses today?
"y study of business, marketing and sales.
$hat are the very best products and services that you o7er right no?
"y study of business, marketing and sales.
Look at the people around you. $ho are your most valuable people?
A8) /hoppette and 9niversity of "aryland ,A) money
$ho are no longer as valuable as before?
$ho represents a net loss or detriment to your business?
,e prepared to ask and anser the brutal questions.
The Customer Is the King
$ho are your best customers today?
:oreans, single males, and business opportunity seekers
$hat and here are your best markets?
Asia and the internet
$hat do your customers like the most about hat you do for them?
"ake them happy
$hat do they compliment the most of hat you o7er or do for them?
"ake them happy, talk alot and very smart in business and life
$hat is your number one area of customer satisfaction?
/ales and presentation
$hat do your customers like the least about hat you do?
$hen I;m angry or tired
$hat do they complain about the most?
%ot having hat they ant available for purchase
$hat is it that you sell that your customers and potential customers prefer to
buy somehere else, rather than from you?
Identify Your Personal Strengths
Look at yourself honestly. $hat are your on personal best skills, qualities
and abilities?
#nglish, /tudying, strategic planning, marketing and sales
$hat are the most important things that you do at ork, and for your
company?
'aily facility improvement, strategic planning, marketing and sales
$hat are the most valuable contributions you make personally to your
business?
Increase sales, customer service, and customer retention
Start Where You Are:
4. $hat is orking the very best in your business today?
/ales and marketing
$hat parts of your business make you the happiest?
"arketing
<. $hat!s not orking in your business?
$aiting on capital
$hat causes you the most aggravation and frustration?
$aiting on capital
6. $hat are your most important products and markets?
"e =sales-marketing-english skills>, #mpoer %etork in th 9/-/outh
:orean markets
$hat accounts for the largest portion of your revenues?
A8) and #mpoer %etork
?. $ho are your most important people?
A8) and #mpoer %etork
$ho are the people ho account for most of your results?
A8) and #mpoer %etork
@. $hat are your special talents and skills?
$hat is it you do that accounts for most of your success?
A. $hat are the ma+or changes taking place in your market?
$hat changes should you make to compensate for them?
B. $hat are your most treasured assumptions about your people, customers,
markets,
products, services and yourself?
$hat if one of them asn!t true?
$hat ould you do then?
Imagine Starting Over
Cero-based thinking requires that you apply this DscraperE mentality to every
part
of 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?
Instead of struggling to determine ho you might modify, change, &H, revise,
improve or alter some business function, you instead ask,
DIf I as not doing this today, ould I start it up again today, knowing what I
now know?
(o start ith, is there any product or service that you ould not bring to the
market, o7er or sell, if you had to do it over again, starting today?
/ince I5J of your products and services are probably going to be obsolete
ithin the neHt @ years, there
may be products and services you are o7ering today that, because of
changed market
conditions, you ould not introduce again today, if you had to do it over
again, knowing
what you now know. (hese products or services are prime candidates for
discontinuation
or divestiture.
Is there any person in your business that you ould not hire, assign, appoint,
go
to ork 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 ork ith or
around a diKcult person,
ho knoing hat you no kno, you ouldn!t get involved ith again
today.
$ho does this bring to mind?
Is there any supplier, banker or vendor that you are dealing ith today that,
knoing hat you no kno, you ouldn!t get involved ith again today, if
you had to
do it over?
Since many of your business relationshis !ill not !or" out over
time# you
must be reared to continually reevaluate them# esecially if they
are causing you any
roblems or frustrations$
Analy%e Your Customers
Is there any customer that you are selling to or servicing today that, knoing
hat you no kno, you ouldn!t take on again as a customer?
"any companies are asking this question about their diKcult customers and
deciding to let them go.
/ometimes, one of the smartest things you can do is to D&re your customers.E
#ncourage
them to go and deal ith someone else ho ould be more appropriate for
them.
Assess Your &usiness Oerations
Is there any expenditure in your business that you ould not authorize again
if
you had it to do over?
Is there any process, procedure or activity that, knoing hat you
no kno, you ouldn!t start up again, or get into, if you ere making the
decision
today, knoing hat you no kno?
Is there any advertising, marketing or selling methodology or eHpense that
knoing hat you no kno, you ouldn!t start up again today, if you had to
do it
over?
:eep asking, D$hat!s orking?E
and D$hat!s not orking?E
Pay Attention To The Indicators
Fou can alays tell hen you are in a zero-based
thinking situation because it
causes you continuous stress, aggravation,
frustration, negativity and unhappiness. Fou
think about it continually. 2ften you bring it home at
night and discuss it at the family
dinner table. /ometimes it ill even keep you aake
at night.
$henever something is not orking, or not orking
out the ay you eHpected,
or causing you stress, &nancial losses, aggravation,
or irritation, ask,
Knowing what I now know, would I get into this
again today if I had to do it over?
If the anser is D%oLE then your neHt question is
How do I get out and how fast?
The 'ecision Is Inevitable
)ere!s an important point. If something is not orking, eventually you ill
have to
get out of it. Fou ill have to let the person go, discontinue the product or
service,
eliminate the activity or eHpense, or change the method of operation. It is
only a matter of
time. It is not going to get better all by itself. And every single eHecutive ho
&nally
decides to get out of an unhappy situation says afterards, DI should have
done this a
long time agoLE
Aly This Aroach Continually
Practice %ero(based thin"ing as a )go for!ard* method for the rest
of your
business career$ 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:
4. Imagine starting over again in every part of your businessM is there
anything you
are doing that, knoing hat you no kno, you ouldn!t start up again
today?
<. Is there any person in your business life ho, knoing hat you no kno,
you
ouldn!t hire, assign, promote or otherise get involved ith again today,
knoing hat
you no kno?
6. Is there any product or service that, knoing hat you no kno, you
ouldn!t
bring to the market again today?
?. Is there any investment that you have made that, knoing hat you no
kno,
you ouldn!t make again today?
@. Is there any business activity or process that you are using that, knoing
hat you
no kno, you ouldn!t start up again today?
A. Is there any customer or market that, knoing hat you no kno, you
ouldn!t
take on or get into again today, if you had it to do over?
B. Is there any career decision that you have made that, knoing hat you
no
kno, you ouldn!t make the same ay if you had it to do over again today?
Start With The &asics
(he starting point of business analysis is for you to askG
D$hat business am I in?E
$hat business are you really in?
$hat business are you really, really in?E
I soon realized I as in the Dgoal
achievement businessE ="e (22L
N#*O>.
"y business as helping people to
achieve their personal and business
goals faster by providing them ith
practical ideas
that they could use immediately to get
better results.
(his insight led me from talks and
seminars into audio and video
recording,
books, training programs and Internet
based e- learning on a variety of
sub+ects, including the development
and presentation of the (urbostrategy
1rocess.
The Customer As Centeriece
D$ho is my customer?E
$ho is the person ho buys from you today? 'escribe your customer in
detail.
$hat is the age, income, education, position, attitude, location and interest of
your ideal customer?
"any companies are not eHactly sure of the anser to this question. (hey
have at best an
unclear picture of the psychological and demographic characteristics of their
customers.
$ho will your customer be tomorro, if current trends continue?
$ho should your customer be, if you ant to be successful in the markets of
tomorro?
$ho could your customer be if you ere to change, improve or upgrade your
product or service
o7erings?
'etermine What You Sell
Four neHt question isG D$hy does my customer buy?E
$hat value, bene&t, result or di7erence does your customer seek or eHpect
to en+oy as a result of doing business
ith you?
2f all the various bene&ts that your products or services o7er your
customers,
hat do your customers consider to be more important than anything else?
'o you kno?
Four ability to de&ne and promote this unique bene&t is the real key to
competitive
advantage and market success. Fou neHt question isG
D$hat do e do especially ell?E
$hat do you do better than any of your competitors?
$here are you superior?
Pustomers only buy from a particular company because they feel that, in
some ay, that company o7ers something
that is superior to that of any other o7ering.
$hat is your area of eHcellence?
Qack $elch of Oeneral #lectric as famous for saying, DIf you don!t have
competitive advantage, don!t compete.E )is philosophy as that Oeneral
#lectric ould
be number one or number to in every market segment in hich they
competed, or they
ould get out of that market.
Are you number one or number to in your market?
Pan you be?
$hat is your plan to achieve this market position?
'e-ne Your Cometitor
(he neHt question, hich e ill deal ith eHtensively in Phapter 45, isG
D$ho is your competition?E
2nce you have identi&ed your competition, you must ask,
D$hy does your potential customer buy from your competition, rather than
from you?E
$hat value or bene&t does he perceive that he receives from someone else
that he does not feel he
receives from you?
)o could you o7set this perception?
Set Clear .oals
In performing an eHamination of your business, you must ask continually,
D$hat are my goals?E
$hat are you trying to accomplish?
If you are clear about your goals, hat is holding you back from achieving
them?
Fou need clear, ritten, measurable, time-bounded goals for every part of
your
business and personal life. Fou need short-term, medium-term and long-term
goals. #ach
goal must be in riting, ith plans for its accomplishment. Fou can!t hit a
target that you
can!t see. Analyze everything you do in the course of a day or a eek.
$hat are the <5J of your activities that could account for I5J or more of
your results?
/ometimes, +ust 45J of your activities, if you ere to pursue them
aggressively, could account for R5J of your
results.
$hat might they be?
&ecome Action(Oriented
$hat actions should you take immediately in response to the ansers to
these
questions?
$hat is the very &rst thing you should do right no to increase your sales
and
improve your market position?
Another good question you should ask yourself isG
D$hy am I in business at all?E
$hy do you eHist?
$hat social purpose does your company serve?
$hat loss ould occur to society if you ceased to do business altogether?
Imagine that you had to go in front of a government tribunal each year to
+ustify
your continued eHistence.
$hat ould you say to the tribunal in terms of ho you serve, help, or make
a
di7erence in the lives or ork of your customers to +ustify staying in
business?
(hese are key questions that you need to ask and anser for your business
on a
regular basis. Fou should ask and anser these questions for yourself, as
ell. If you are
unclear or inaccurate in your ansers to any of them, the health of your
enterprise could
be in +eopardy.
Conduct A &asic &usiness Analysis:
4. $hat are your goals for your business?
$hat are you trying to accomplish?
<. $ho is your ideal customer?
'escribe him or her accurately.
6. $hy does your customer buy from you?
$hat special bene&ts or advantages do you o7er that your competitors
don!t have?
?. $hat business are you really in?
'escribe your business in terms of hat you do for your customer, hat
results you get.
@. $hat are the <5J of your activities that could account for I5J of your
results?
A. $hat is your competitive advantage, your Darea of eHcellence?E
In hat ays are you superior to R5J or more of your competitors?
B. $hat speci&c, measurable actions should you take immediately in anser
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 ith your deciding eHactly hat you ant to accomplish
in
the key areas of your business life. 2nce you kno 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 O2/1A "odel as a guide for strategic planning. (hese &ve
key
thinking tools form the basis for successful business operations.
&egin With The 1nd In 3ind
(he &rst letter, DOE stands for .oals. (hese are the ultimate results that you
ant
to achieve. Four goals are the end targets that you aim at throughout your
business year
or planning period. Four goals are your sales, pro&ts, groth rate, market
share, or
percentage of return on assets, equity, investment or sales. Ooals are alays
measurable.
$hat are yours?
Stes on the Staircase
(he second letter, D2E stands for Ob4ectives. (hese are the steps you ill
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 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. A loer defect rate or a higher sale amount
per customer
can be ob+ectives on the path to achieving the main corporate goals. $hat
are your
interim ob+ectives?
5o! to .et There
(he letter D/E stands for Strategies. (hese are the di7erent approaches that
you
can take to achieve your ob+ectives and reach your goals. 8or eHample,
achieving a
speci&c level of pro&tability ill require producing and selling speci&c
quantities of
products or services to a speci&c market in a speci&c ay. (here are many
di7erent ays
to go about accomplishing these ob+ectives. (he ay you choose is your
strategy, and
may determine the success or failure of your enterprise.
'o you produce, market, sell, deliver yourself, or do you outsource some part
of
the process? 'o you sell direct, via retail, direct mail, catalog or Internet? 'o
you charge
more, charge less, up-sell, cross-sell or discount? 'o you enter certain
markets and
abandon others? $hat is your strategy? Is it orking?
Planning /or Success
(he letter D1E stands for Plans. (hese are your blueprints for achieving your
goals. Four plans are composed of step-by-step lists of eHactly hat you ill
do, day by
day, to get from herever you are to herever you ant to go. 1lans are
alays broken
don by sequence and priority.
/ome things have to be done before others can be done. /ome things are
more important
than others in achieving the goal or ob+ective. $hen your plan is organized by
sequence
and priority, you can accomplish much more in less time.
,usiness life consists almost entirely of pro+ects, one after the other. A pro+ect
can
be de&ned as a multi"task #ob, a +ob made up of many small +obs, each of
hich has to be
done properly to complete the larger task. Four ability to plan, organize and
complete
multi-task +obs, ever larger and more compleH, is the most important single
element of
your success, in any &eld.
'evelo a &ias for Action
(he last letter in the O2/1A process, DAE, stands for Actions. (hese are the
speci&c tasks
that you are going to complete to carry out the plans to implement the
strategies to
accomplish the ob#ectives to achieve your goals.
#very important task must be clear, measurable and time bounded. It must
be assigned to
a speci&c person ho is quali&ed to perform the task correctly, on time and
on budget.
$hat gets measured gets done!
/ocus on Pro-tability
(he central purpose of (urbostrategy is to boost your cash So and pro&ts,
and
to increase your return on the money invested in your business. (he aim of
strategy is to
generate a higher level of cash So and pro&tability than you ould realize
ithout the
strategy, or ith your previous strategy. In short, it is to make more money
than you are
making right no from the ay that you are doing business today.
(he essential resources of people, money and talent that you need to
succeed in
your business are alays limited. (hey must be focused and concentrated for
maHimum
results. (his is hat a good strategy enables you to do.
/our Ways to Imrove Your &usiness
/etting strategy requires making hard decisions in four areasG 8irst, you must
decide hat you are going to do more of.
$hat!s orking?
$hat is selling ell?
$hat products, services and activities are the most pro&table?
/econd, you must decide hat you are going to do less of.
$hat!s not orking?
$hat contributes very little to groth and pro&tability?
$hat should you discontinue or eliminate based on the realities of today!s
market and today!s customers?
$hat can you do to reduce costs in areas here they contribute very little to
results?
(hird, hat are you going to start doing that you!re not doing today?
$hat ne products, services or activities should you introduce if you ant to
increase your sales and
pro&tability, or improve and streamline your activities?
8inally, hat are you going to stop doing altogether?
*emember, the critical resources of time and money are alays scarce. (he
only ay you can improve results is
by discontinuing certain activities altogether. Fou can then channel those
resources into
areas here they yield higher levels of business results.
Clarity is the key to strategic success. (he more time you take to be
absolutely
clear about ho you are, and hat you ant to accomplish, the more
successful and
pro&table you ill be.
'ecide 12actly What You Want:
4. $hat are your speci&c, measurable long-term goals for sales and
pro&tability in
your business?
<. $hat are the speci&c ob#ectives of sales, staKng, production, delivery and
customer development that you ill have to achieve to accomplish your
goals?
6. $hat are the various ays that you can meet your ob+ectives and achieve
your
goals?
$hat is the best strategy for you in today!s market?
?. $hat should you do more of and really focus on to increase your sales and
pro&tability?
@. $hat should you do less of, based on your current eHperience?
$hat!s not orking?
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
free up
resources for more pro&table activities?
Chater /ive 0 'esign Your Ideal /uture
$e have been endowed with the capacity and the power to create desirable
pictures within
and to %nd them automatically printed in the outer world of our
environment! =Qohn
"c'onald>
/ome time ago, I conducted a strategic planning session for the senior
eHecutives
of a 34B< billion dollar company. (he organization as going through a period
of
considerable turbulence, change, competition and ne government
regulation. (here had
been lay-o7s, &rings, donsizing and divestments. "y clients ere the top
eHecutives
ho had survived the recent turmoil, and the blood letting as not yet over.
In these
circumstances, they ere both orried about the future and distracted in the
present.
Create A /ive Year /antasy
(o get them centered and focused, I began the strategy session ith a
process that
I call )Ideali%ation$* In this process, hich you can use yourself, I had the
members of
the top team create a D&ve year fantasy.E
DLet us put aside the current situation for the moment,E I suggested.
DInstead, tell
me hat this company ould look like &ve years from no if it as perfect in
every
respect?E
(his eHercise forced them to take their attention aay from the problems of
the
present and focus their thinking on the possibilities of the future.
As e ent around the room, each person contributed an idea about hat
the
company ould look like if it ere perfect. I rote each idea on a Sip chart
and taped
the pages onto the alls here everyone could see them. In less than half an
hour, e
generated <B ideal descriptions.
$e then voted on these idealized goals and organized them by priority. $e
ended up
ith a series of clear ob+ectives, including Dhighly pro&table, tremendous
market
reputation, high stock price, top leadership, fabulous customer service, great
place to
ork, best management, rapid groth rate and top reputation in the
industry,E among
others.
Thin" In Terms Of Possibilities
I then asked them, DAre these goals possible?E 2ne by one, they agreed that
all of
these goals ere possible in &ve years. (hey might not be achievable in one
or to years,
but in &ve years, every one of them could be accomplished ith ill and
determination.
$e came out of that session ith everyone revitalized and committed to
orking
on achieving one or more of those &ve-year fantasies. 2ver the neHt to
years, the
company completely reorganized. (hey did more of some things and less of
others. (hey
started doing things that they had not done in the past, and they stopped
certain activities
altogether. (hey took complete control of their corporate destiny and
changed it.
1eter 'rucker once rote, D$e greatly overestimate hat e can accomplish
in one
yearM but e greatly underestimate hat is possible for us in &ve years.E
Thin" About The /uture
/uture(orientation is a key element of strategic planning and strategic
thinking.
It is a ma+or responsibility of leadership and top people in every area. 2nly
the leader can
think about the future. 2nly the leader can plan for the future. (here is no
one else in the
organization ho can do it, and if the leader does not think about and plan for
the future
as an ongoing part of his +ob, it ill not be done. As they say in Alaska, D2nly
the lead
sled dog ever gets a di7erent vie.E
)o often and ho ell the top people in the company think about the future
largely
determines the success or failure of the business. DIf you don!t kno here
you!re going,
any road ill take you there.E
(he development of the quality of future-orientation requires that you
continually
create an ideal image of your company some time in the future. 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
2nce you have a clear picture of your
ideal future, you then return mentally
to
your current situation and think about
hat you ould have to do, starting
today, to turn your future vision into a
current reality. (his is called, Dback
from the future thinking.E
"ake a list of all the things that ould
have to happen for you to realize your
fantasy sometime in the future. It is
amazing ho your perspective
changes hen you
look back from the future, eHactly as if
you ere looking back from the top of
the
mountain to yourself don in the
valley, and seeing the eHact route you
ill have to
follo to get to the top.
+eaders 5ave 8ision
In 6655 studies of leaders revieed by Qames "ac1herson, searching for the
common denominators of leadership throughout the ages, the one quality
that all the
studies had in common as the quality of vision. Leaders have visionM non-
leaders do
not.
(o become a visionary requires that you develop the ability to imagine,
de&ne,
articulate, share and inspire other people ith an eHciting picture of the
future. Fou get
everyone in your business committed to ful&lling this vision, and to orking
toard it
every day. (his is the key to leadership, and to building a great company.
Aristotle rote, )We become !hat !e reeatedly
do$* Fou become a leader by thinking
the ay leaders think, both in your business and in your personal life. Fou
become a
leader by thinking about the future, and ho you can make it a present
reality.
9o!# 3ore Than 1ver
,ut it is in times of rapid change, and turbulence in the market, that an
eHciting
vision of the future becomes more important that ever before. A vision can
become the
force that binds people together into a solid team. It can give meaning and
purpose to
ork, even hen times are tough and pay increases are not possible.
(here are many ays you can approach the development of a vision for your
organization. Perhas the very best vision for your comany includes
t!o "ey
comonents$ /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 most important thing that you do for
your
customers. Four vision is to serve your customers in such a ay that you are
seen as
superior in a particular product, service or activity. Imagine that you could be
knon as
outstanding in any one thing that you do for your customers. $hat ould it
be? Four
anser can be the starting point of a vision for your business that changes
your future
completely.
Your Personal 8ision
Fou need a vision for yourself as ell. 1ro+ect forard @ years in your
imagination. If your future ere perfect in every ay, hat ould it look like?
If your
income, your position in your company or &eld, your family life, your health,
your +ob
and every part of your life ere ideal in every ay, ho ould it be di7erent
from today?
2nce you are clear about your vision, for yourself and for your business, the
only question you ask is,
&ow do I make it a reality?
(op people think continually in terms of how? (hey think in terms of taking
action, of what can be done.
2nce you have clari&ed your vision, and determined hat you ill have to do
to make it a reality, you then do something every day to move you toard
the creation of
your ideal future. Fou take complete control of your destiny. As 'rucker rote,
D(he very
best ay to predict the future is to create it.E And the starting point is vision.
'esign Your Ideal /uture:
4. $hat is your vision for your company? 1ro+ect forard and imagine that
your
business as ideal in every ay. $hat ould it look like?
<. $hat is your vision for yourself? If your life and career ere ideal in every
ay,
hat ould it look like?
6. Idealize in each area of your business. If your products, services, sale and
pro&tability ere perfect, hat ould they look like?
?. Idealize ith regard to your people. If your sta7 ere ideal in terms of
skills,
abilities, personalities and results, ho ould they be di7erent from today?
@. Imagine that a ma+or magazine as going to rite a story about your
company.
$hat ould you ant them to say?
A. 1ro+ect forard &ve years and then look back to today from that vantage
point.
$hat ould you have to change today to create your ideal future?
B. In hat one area ould it be most helpful to sales and pro&tability if your
company ere idely knon as Dthe best?E $hat steps could you take
immediately to
begin earning that reputation?
Create A 3ission Statement:
4. 'etermine your personal reasons for doing hat you do. $hat gives you a
sense
of meaning and purpose in life?
<. 'ecide upon the 6-@ key values upon hich your company is based.
Involve other
people in the discussion.
6. 'e&ne the actions and behaviors that people ill engage in, both inside
and
outside the company, that are consistent ith your values.
?. 'esign a mission statement, an ideal description of hat your company
ants to
accomplish for its customers sometime in the future.
7$ $rite out a list of your values, and hat they mean, plus your mission
statement,
and share them ith your sta7 and customers.
:$ Preate a personal mission statement for your career. $hat do you ant to
accomplish, and ho do you ant to be knon?
;$ Preate a mission statement for yourself and your family. $hat is it that you
ant
to accomplish or achieve ith your family 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 of Oeneral #lectric once said, DIf the rate of change outside your
organization is greater than the rate of change inside your organization, then
the end is in
sight.E
In times of turbulence, you should be prepared to reinvent your business as
often
as necessary as your eHternal orld changes.
As an eHercise, imagine that you ere starting your business over again
today.
$hat ould you get into, or not get into?
&undle of <esources
8or greater perspective, stand back and vie your business as a bundle of
resources and
capabilities, like a &re hose of talent and ability that can be aimed in many
directions to
achieve di7erent results. Instead of limiting yourself to seeing your business
as an
organization that is designed to perform speci&c functions, producing and
selling certain
products and services, think of it as being capable of doing a variety of things
completely
di7erent from hat you are doing today.
The .reat /ire
As you think about reinventing your business, imagine that your company
burned
to the ground hile you ere aay. $hen you arrived at the scene, you found
that all
your sta7 ere safe and standing around in the parking lot.
As it happens, there is unoccupied oKce space available across the street.
Fou
can immediately move into the ne space and start your business ane.
)ere is the
questionG $hich of your products and services ould you begin producing
and
distributing right aay, and hich ones ould you not start up again,
knoing hat you
no kno?
12amine 1very <elationshi
If 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? $hich vendors, suppliers, bankers or other people ould you immediately
get in
touch ith, and ho ould you call later, if at all? $hat ould you do &rst?
$hat ould
you do second? $hat ould you not start up again, knoing hat you no
kno?
<einvent Your Sta= <elationshis
%o, let!s go back to the parking lot. Let us assume that all of your people
are
safe and standing around aiting for instructions. $hich of them ould you
take across
the street ith you to the ne business, and hich ones ould you leave in
the parking
lot? $ho ould be the &rst and most important person hose services you
ould ant to
secure? $ho ould be the second most important? $ho ould be third? And
so on.
12amine Your Organi%ation
If you could reinvent your business, hat ould you do more of? $hat ould
you
do less of? $hat ould you start doing that you are not doing today? $hat
ould you
stop doing altogether?
In reinventing your organization, ask yourself, D$hat are my most important
talents, skills, abilities and core competencies, and what else could I do ith
them? $ho
are my best people and hat else could they do? :eep thinking about ho
you ould
reinvent your business if you ere starting over. (his ill keep you on the
cutting edge of
creativity and innovation.
Thin" In Terms of 12cellence
(he key questions in reinvention are, D$hat could you be absolutely eHcellent
at
doing in today!s market?E $here could you be the best? $here could you
achieve orldclass
quality? $here could you be better than R5J of your competitors? D
(he market only pays eHtraordinary reards for eHtraordinary products and
services. $here and ho could you do hat you do in an eHtraordinary
fashion?
<einvent Your Career
8inally, think about reinventing yourself and your career on a regular basis, as
ell. If you ere starting over again today, hat ould you do more of, less
of, start or
stop? $hat ould you get into or get out of?
If you ere starting your career over again, hat additional knoledge and
skills
ould you ant to have? $hat can you do, starting today, to acquire those
key skills?
Imagine that you could do a variety of +obs. $hat ould you really like to do
ith your
life?
/ince you ere going to have to reinvent yourself regularly throughout your
career, it is
very important that you think about ho you ould do it ell in advance of
hen it
becomes necessary.
<einvent Your Organi%ation:
4. If you ere starting your business over again today, hat ould you do
di7erently?
<. If you ere starting your career over again today, hat ould you get
into, or out of?
6. If your business burned to the ground and you could only o7er one of
your products or services, hich one ould it be?
?. $ho are your most important customers, the ones ho you ould
immediately move to take care of, if you ere starting over?
@. $ho are your most important people, both inside and outside of your
business?
A. $hat are your most important contacts and business relationships, the
ones you ould ant most to preserve if you ere starting over?
B. If money ere no ob+ect, hat steps ould 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!
=Andre Parnegie -epitaph>
(he people in your company are the most important parts of your business.
All ork, all
performance, all results come from them, both as individuals and hen they
ork
together in teams of some kind. (he manager!s output is the output of his or
her team,
and of the individual team members.
In business, people come &rst. Qobs, activities and results are only achieved
after
the right people are in place. Qim Pollins says in his book, )ood to )reat, that
the key to
building a great business is, D&rst, get the right people on the bus, and
second, get the
rong people o7 the bus.E Any other approach is bound to fail.
T!o Key >ualities to +oo" /or
(he best people have to qualities. 8irst, they can be counted on to get the
+ob
done, to get it done ell and to get it done in a timely fashion. /econd, they
get along
ell ith others. (hey are good team players.
Fou should apply *ero"based thinking to each person ho reports to you on a
regular basis. Pontinually ask, D:noing hat I no kno, ould I hire, assign
or
promote this person again, if I had to do it over?E
If the anser is D%o,E then your neHt question is, D)o do I remove or replace
this
person, and ho fast can I do it?E
$hat do you ant and need those results to be?
2nce you are clear about the results you desire, set speci&c measures of
performance on each +ob, and each task. )o ill you and the candidate
kno hether
or not the +ob has been done properly? *emember, D$hat gets measured,
gets done.E
And, DIf you can!t measure it, you can!t manage it.E
Select the <ight Peole:
4. *ank every one in your company on a scale from 4-45, ith 45 being the
highest, on their competence at their +ob.
<. *esolve to build a team of highly motivated, competent and positive
employees to
help you get the results you need.
6. (hink through each ne +ob or hire carefully in advance. $rite out the
description
clearly.
?. Intervie at least 6 candidates for a ne position. Intervie the candidate
you
like at least 6 times, in three places, and have him or her intervieed by at
least 6
other people.
@. Pheck references carefullyM seek the fatal Sa or eakness that ould
make the
candidate unsuitable.
A. )ire only positive, likable peopleM they make the best team players.
B. *esults are everythingM continually emphasize and eHplain eHactly hat
results are
eHpected from 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! =1eter 'rucker>
All business strategy is ultimately marketing strategy. $henever you are
orried about the
health or future of your business, get back to thinking about marketing and
selling. 8ocus
single-mindedly on increasing sales and revenues. Putting eHpenses and
controlling costs
is an ongoing necessity, but you can!t cost-cut your ay to business success.
Fou have to
increase cash So, and this only comes from selling more of your products or
services.
9o matter ho! challenging or cometitive the economy aears# as
much as
?@A of your mar"et is still untaed$ (here are almost alays hidden
opportunities
around you. Four ability to uncover and take advantage of those opportunities
is the true
test of competence as an eHecutive or as a business.
'ecide Who You Are and What You 'o
0peciali*ation requires that you focus on speci&c products or services,
speci&c
markets or speci&c customer needs. Fou must &ght the temptation to try to
o7er too many
products and services to too many customers in too many areas. Fou must
specialize,
both in your on mind, and in the mind of your customer.
$hat is it exactly that your product or service is designed to achieve, avoid or
preserve for your customer? $hat are the core competencies or proprietary
methods or
technologies that enable you to specialize in this area? $hat speci&c problem
or need can
you solve or satisfy for your customer? And of all the di7erent results you can
get ith
your business, here do you, should you, could you specialize?
See Yourself As A &usiness
In your personal life, you should ask the same questions of yourself as ell.
$hat
is your personal area of speciali*ation? In hat ay is your ork superior to
your
competitors? $hat is the ideal position or area of responsibility for you to
apply your
talents? $here should you be concentrating your energies to get the very
best results and
greatest reards possible?
#specially, you should continually ask yourself, $hat is it that I do very, very
well?
$hat is your personal area of eHcellence? $hat could it be? $hat should it
be?
+oo"ing Ahead
Looking 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? $hat additional
knoledge
and skills do you need to acquire? $hat are those fe tasks, hich, if you did
them in an
eHcellent fashion, ould have the greatest positive impact on your career? In
hat areas
could be paid the very most for the application of your special talents and
abilities? (his
question is +ust as relevant for you as it is for your company.
3ar"et 3ore 1=ectively:
4. 'ecide today to dominate your &eld, to be the best at marketing and
innovation in your product or service area. $hat is the &rst step you should
take?
<. 'etermine your area of specialization, by product or service, market or
type of customer. $hat should it be? $hat could it be?
6. )o do you di7erentiate your product or service from those of your
competitors? In hat ays are you superior to anyone else? $hat could it be?
$hat
should it be?
?. $hat are you best market segments? $here are your highest probability
customers? $ho can bene&t the most from using hat you sell?
@. )o can you organize your business so that you concentrate your
marketing and selling e7orts on those customers ho can buy and pay faster
than any
others?
A. $hat additional products, services, knoledge or capabilities ill you
need to dominate your markets in the months and years ahead?
B. $hat should you immediately start doing more of, less of, start or stop
to ad+ust to the current market?
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 for youG $ho is your competition? #Hactly? Four
choice of
competitor determines almost everything you do in your market, +ust as the
choice of an
adversary determines everything a general does in the process of conducting
military
operations.
'etermine Their &uying 3otives
2nce you have determined hy it is that people buy from you, you must then
ask
and anser, D$hy do people buy from my competitors?E $hat value or
bene&ts are your
potential customers convinced that they receive hen buying from your
competitor rather
than from you?
$hat are your competitor!s key strengths? $hat are his areas of
specialization,
di7erentiation, segmentation and concentration? $hat does your competitor
have that
you don!t have? $hat does he o7er that you don!t o7er? $hat is he doing
more of or
better than you? $hat is his unique selling proposition?
O=set Their Advantages
As you study your competitors, look for ays to o7set or neutralize the
advantages
their customers perceive them to have. $hat are your competitor!s
eaknesses? )o can
you eHploit these eaknesses? $hat do you do better than they do? In hat
ays are
your products or services superior to their o7erings? In hat areas do you
have a distinct
advantage over your competitors? $hat can you do to o7set your
competitor!s strengths
and maHimize your advantages? )o can you better position yourself against
your
competitors in a tough market?
(he more time you take to study and understand hy and ho your
competitors
are successful in selling to your customers, the more likely it is that you ill
&nd an
opportunity to take aay their market share. As /un (zu says in he 2rt of
$ar, DIf you
kno both yourself and your enemy, you ill prevail in a hundred battles.E
Analy%e Your Cometition:
4. $ho is your competition for hat you sell, ith the eHact customers you
are
trying to attract?
<. $hat ould happen if you changed your o7erings in such a ay that you
targeted
a di7erent group of customers, one that ould be easier to sell to?
6. $hy do your potential customers buy from your competitors? $hat
advantages do
they perceive?
?. $hat is your competitor!s unique selling proposition? $hat special feature
or
bene&t does his product or service have that yours does not?
@. In hat ays are you superior to your competitors? $hat can you o7er
that they
cannot? )o can you emphasize this advantage in your sales and marketing
e7orts?
A. $here is your competitor vulnerable? )o could you eHploit this to your
advantage?
B. )o could you alter your marketing strategy in such a ay that you could
achieve
dominance in a particular area, ith a speci&c customer or market segment?
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. 1aul Oetty>
(he most important single determinant of your success is your area of
competitive
advantage. It is more important than all other factors. It determines the rise
or fall of your
business, your level of pro&tability, your position in the marketplace and
everything else
you accomplish.
Four competitive advantage must be crystal clear to you and to everyone in
your
company, as ell as to your prospective customers, Lack of clear competitive
advantage
leads quickly to diminished sales, loss of market share, loer pro&tability,
price cutting,
and ultimately to business failure.
Your 5igh Concet
Four business as started because you or your company had an idea for a
product or service that as di7erent or better from other products and
services. It o7ered
to satisfy the same need or solve the same problem better, faster or cheaper
than anyone
or anything else then available.
Four ability to di7erentiate your product in the minds and hearts of your
customers is the key to inning them in the &rst place, and then keeping
them after the
initial sale. (o buy from you, a customer must be convinced that, all things
considered,
your o7ering is di7erent and better than anything else that is currently
available at the
same price. Qack $elch as famous for saying, DIf you don!t have competitive
advantage,
don!t competeLE
Three Areas of 'i=erentiation
(o succeed in a tough market, hat you sell must be superior to your
competitor!s o7erings in at least three ays. It must be better# faster#
cheaer# and easier
to use in some !ay that ma"es it more attractive than rival roducts
or services$ It must be
sold more professionally or serviced ith greater sensitivity, speed or
eKciency. It must
be better in at least three areas.
2ne of your key +obs in strategic thinking is to identify the three areas here
you are
better and then to emphasize those areas of superiority in all your marketing
and sales
)o could you achieve operational eHcellence in your business, or some part
of your
business, in such a ay that you could be the lo-cost provider in your
market? )o
could you dramatically reduce your costs of doing business and use this lo
cost
advantage to increase your sales and pro&tability?
+ead the /ield
(he second area here you could achieve competitive advantage is in the
use of
innovative technology leading to the production of high quality products
and services.
Pompanies like "ercedes and *oleH fall into this category, as does /ony and
LeHus.
Pustomers are illing to pay a premium for a brand name that represents
high quality and
cutting-edge technology. $here are there opportunities for you to distinguish
your
products or services by using your imagination to become the quality leader
in your &eld?
Close to the Customer
(he third area here you could develop competitive advantage is in being
Dclose to the
customer.E (his requires that you invest the time to develop high quality
relationships
based on Dcustomer intimacy.E Pustomers ill pay more and remain loyal
longer to
companies that seem to kno and understand them better than others.
1roviders of
specialized services, such as consulting &rms, la &rms and accounting &rms
fall into this
category.
In hat ays could you develop higher levels of trust and credibility ith your
customers? $hat could you do to demonstrate to your customers that you
really care
about them and their interests? (his strategy can o7er a breakthrough
opportunity,
especially in the sale of eHpensive products and services here resales and
referrals are
possible.
Pic" Your Targets
(o 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. 2ne
of the most
important decisions you make is to choose your area of competitive
advantage, and then
to dedicate your company to achieving it.
Strive /or Sueriority
Four area of eHcellence is the key to your success in a competitive
marketplace.
(his is here your product or service stands out in comparison to your
competitors. It is a
value or bene&t that you o7er that no one else o7ers. $ith regard to your
products or
services, hat is it? $hat could it be? $hat should it be?
Four area of superiority is de&ned as an area of performance here your
product
or service is superior to that of your competitors. (his performance di7erence
is
signi&cant enough that your customer ill buy it, and even pay you more for
it. In hat
ay does your product perform better, in terms of getting results that your
customer cares
about, than your competitors? )o could you improve the performance of
your products
or services in some meaningful ay?
8inally, your uni3ue selling proposition is something that you and only you
o7er
to your customers, and is something that they really care about. %o one else
does as ell
as you do in this area. %o one else achieves the same bene&t or result. $hat
is your
unique selling proposition? $hat could it be?
+oo" Into Yourself
2n a personal level, you must continually ask these questions of yourself.
$hat is your
personal area of eHcellence? $here are you superior to your competitors?
$hat is your
unique selling proposition? In hat ays do you do your +ob better or faster
than others?
$hat is it that you and only you do in an outstanding fashion for your
company? $hat
could it be? $hat should it be?
1erhaps the most important area of superiority you can develop is your ability
to
do your +ob quickly and ell, in an eHcellent fashion, consistently and
dependably every
time. (his is the key to success as an individual in a competitive marketplace.
'o It &etter# /aster# Cheaer:
4. In hat ays are your most important products or services superior to
those of
your competitors?
<. $hat is your recognized Darea of eHcellence?E If you ere to conduct a
survey,
hat ould people say that your company does especially ell?
6. In hat ays are your products or services faster to acquire, use and en+oy
than
your competitor!s?
?. $hat is your unique selling proposition? $hat is it that your products or
services
o7er that no other company can match?
@. In hat ays are your products or services cheaper to buy and use, or
achieve
superior &nancial results for your customers for the same cost?
A. If you ere knon for being outstanding in any one area of your product or
service o7erings, hat one distinction ould have the greatest positive
impact on your
sale and pro&tability?
B. List the three areas here your products are, or can be, superior to any of
your
competitors. $hat is your plan to achieve this area of market superiority?
$hat should
you do &rst?
What 'o You SellB
(he &rst part of the marketing miH is your 4roduct or service. Alays de&ne
your
product or service in terms of hat it DdoesE for your customers, versus hat
it Dis.E )ere!s
the question, DIs your product or service, as you are o7ering it today, ideally
suited for
your current market and customers?E
5o! 3uch 'o You ChargeB
(he second part of the marketing miH is your 4rice. Is your price the right
price for hat
you are selling? /hould you change your price in some ay? /hould you
increase it,
decrease it, combine your price ith other items, or add items to your price?
/hould you
change your terms or o7er something di7erent for the same price?
'ouble Your PriceB
Is there any place in your business that
you could increase your prices and still hold onto your market?
5o! 'o You Sell ItB
)o are you currently promoting and selling your product or service? $hat!s
orking?
$hat!s not orking? /hould you change your methods of advertising,
marketing, selling
or acquiring customers in any ay?
Sell 3ore Stu=
#specially, should you upgrade and improve your direct selling methods,
people,
presentation, and capabilities?
Is Your Phone <ingingB
#ver after, hen I think about the e7ectiveness of advertising, I alays ask,
DIs
your phone ringing?E
Where 'o You SellB
(he fourth element of the marketing miH is the 4lace. (his is the speci&c
location here
the sale of your product takes place. $here eHactly do you sell your product
today? 'o
you sell in homes, oKces or in your on retail establishment? 'o you sell in a
particular
city, state or nationide? 'o you sell in stores or by direct selling or by direct
mail? "ost
importantly, should you change the place at hich you o7er your products?
A change in the location here you o7er your product or
service could change the direction of your business. $hat could it be?
12amine Your Assumtions
$henever you have diKculties selling a suKcient quantity of your product or
service, you should eHamine all of your assumptions in the areas of product,
price,
promotion and place. Fou should be illing to consider the possibility that
your method
is completely rong in one or more of these areas.
It often happens that a single change in one of the D1!sE in the marketing miH
can
change the entire nature of your business, boost your results, increase your
pro&tability
and move you toard market leadership. :eep an open mind.
The Ans!ers Are Changing
$hat is the correct marketing miH for you to sell the very most at the highest
cost, and
earn the greatest pro&t? $hat assumptions are you going on that
may no longer be true?
Change Your 3ar"eting 3i2:
C$ ,e prepared to challenge every aspect of your marketing, especially if it is
not
orking as ell as before. $hat areas cause you the greatest frustration and
dissatisfaction?
D$ $hat eHactly do you sell, de&ned as hat it DdoesE for your customers,
versus
hat it Dis?E
6$ $hat prices do you charge? )o could you change the ay you charge to
make
buying from you more attractive?
E$ )o do you promote your product? Pould there be better ays of
advertising
your products or services that ould give you better results?
7$ )o do you sell your product or service? Is every person ho deals ith
your
customers fully trained in every key result area of selling?
:$ $here do you sell your product or service? /hould you be eHploring other
locations or methods of sale?
;$ /hould you change more than one of the elements of the marketing miH at
the
same time? Phallenging market conditions often call for bold departures from
the methods
of the past, especially if they are no longer orking.
What Words 'o You O!nB
'eliberately or accidentally, each product or service develops a reputation
that
positions it against its competitors. $hat is yours?
Create Your O!n Cheat Sheet
)ere is the question. $hat ords do you on? $hat ords should you on in
the
hearts and minds of your prospective customers? $hat ords could you on
if you ere
to reorganize and redirect your marketing e7orts?
As an eHercise, imagine one of your prospects meeting ith one of your
customers. Imagine that your customer called you and asked you hat you
ould like
him to say to your prospect to convince your prospect to buy from you?
If you could put together a Dcheat sheetE ith the eHact ords or phrases
that you
ould like your customer to leave in the mind of your prospect, hat ords
ould you
choose? $ould you choose ords like excellent 3uality, high integrity, friendly
service,
nice people, 3uick responses to problems, easy to work with, great prices?
)o do you ant
to be described by your customers and potential customers? 2f 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
)o are you described and thought about by others hen you are not there?
$hat is
your personal brand? $hat is your reputation? )o do other people think and
talk about
you, both as a person and as a contributor to the organization?
Position Your Comany /or Success
4. $hat is your company!s reputation in your market? )o do customers and
competitors think and talk about you?
<. $hat ords do people use hen describing your products or services to
others?
6. If you could DonE certain ords that apply to your company, your
products or
services, hich ords ould you choose?
?. $hat ords, if they ere automatically associated ith your company,
ould
have the greatest positive e7ect on your sales and pro&tability?
@. $hat changes ould you have to make to assure that every customer
contact
reinforced the message that you anted to send to your customers about
doing business
ith you?
A. $hat are the most important promises that you make to your prospects to
get
them to buy from you for the &rst time? 'o you keep these promises after the
sale?
B. $hat are the most positive things that your customers say about dealing
ith your
company? )o could create a system to assure that more customers say
these things?
#Hamine your complete range of products and services, especially the neer
ones,
and ask, D$hich of these has the potential to be a big seller?E $hat ould
you have to do
or invest in o help make it a ma+or source of sales and revenues?
:eep asking yourself, DIf I had not already committed time and money to this
product, knoing hat I no kno, ould I start investing in it again today?E
Apply the /,9 concept to yourself and your career. Fou have several areas of
talent and ability, core competencies, eHperience, knoledge and education.
$hat are
your cash cos, the skills that are central to your value to the organization?
$hat are your Dstars,E the emerging areas of activity, or ne skills and
knoledge
that can make you eHtremely valuable in the future?
$hat are your potential areas of great success? $hat are the pro+ects,
responsibilities and areas of opportunity, hich, if you eHploit them fully, can
enable you
to move ahead more rapidly in your career?
8inally, hat are the DdogE areas of your ork life? (hese are the tasks or
skills
that you may have mastered in the past, but hich distract you from your
future. (hese
are the +obs and activities that take up a lot of time, but hich are nohere
near as
valuable as other things you could be doing. $hat are they?
'evelo Strategic &usiness ,nits
4. ,egin today to vie each product or service as a separate business,
responsible
for generating a certain amount of pro&t every month.
<. Oroup your di7erent products or services by similar characteristics, similar
customers, or similar markets.
6. $hat are the cash cos of your business? $hat are the core products or
services
that are essential to your overall pro&tability?
?. $hat can you do today to safeguard and nurture your cash cos to assure
that
they continue contributing sales and cash So far into the future?
@. $hat are the DstarsE of your business? $hat are the products that are
selling ell,
increasing in market share, and generating high pro&ts?
A. $hat could you do to increase the sales and pro&tability of your stars?
B. $hat are the Dquestion marksE of your business? $hich of your current
products
or services should you discontinue, knoing hat you no kno?
What Is To &e SoldB
(he &rst question is, )What is to be soldB* (o 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. )o
does it improve his or her life or ork? 2f all the bene&ts that a customer
en+oys from
purchasing your product or service, hat is the primary bene&t, the one thing
that you
o7er that makes you superior to any other competitor in the marketplace? 'o
you kno
the anser 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 from the customer? )o are you going to recruit, train,
manage, &eld
and support the sales person? )o is this salesperson going to uncover the
necessary
leads and get face to face ith the prospective customer?
Who Is Your CustomerB
(he neHt part of the question is DTo !homB*
5o! 3uch Are You .oing To ChargeB
Is there any price you ould raise, loer or modify in some
ay?
Collecting Payment
(he neHt question is How is it going to be paid for? 'o you require
payment
in full, in advance? 'o you require a deposit hen the sale is made and ith
the balance
to be paid at a later time on certain terms? 'o you o7er credit or &nancing?
#specially,
hat do your competitors do?
2ften a change in the ay you charge, or in your pricing structure, can
dramatically increase your sales. $hat could you do di7erently in today!s
market that
ould make it easier or more attractive to buy your product or service?
'elivering The .oods
(he &nal part of the question is How is going to be delivered
satisfactorily?
$hat is the eHact process of getting the product or service to your customer
in such a
ay, and at such a level of quality, that the customer both buys from you
again and
recommends you to others?
Sell 3ore 1=ectively:
4. $hat is the eHact sales process necessary to sell your product or service,
from the
&rst customer contact through to the close of the sale? 'o you kno? )o
could it be
improved?
<. $hat must your prospective customer be convinced of before he chooses
your
product over that of your competitor?
6. If money ere no ob+ect, hat special results or bene&ts do you o7er in
your
sales e7orts that make your product more desirable than any other available?
?. $hat is your process for recruiting salespeople? $hat media do you use?
$hat
levels of education and eHperience do you require?
@. $hat kind of a compensation system do you have for salespeople? $hat is
it
based on? )o could it be improved so that it motivates better sales
performance?
A. )o much of your business comes from referrals from happy customers?
)o
could you increase the number of referrals you get as a percentage of your
business?
B. $hy aren!t your sales tice as high already? $hat sales e7orts could you
make to
tap into that I5J of the market that has never heard of you?
/ollo! the /ormula
D$hy am I not at that goal already?E $hat is holding you
back? $hat is the constraint, chokepoint or bottleneck that sets the speed on
ho fast you
achieve your speci&c goals of sales, cash So or pro&tability in your
business?
Let us return to my earlier question, D$ould you like to double your sales and
double your income?E If your anser is DyesE, then hy haven!t you done it
already? $hy
aren!t your sales tice as high? $hy aren!t your pro&ts tice as high? $hat is
holding you
back? $hat is constraining you? $hat is the limiting factor?
Identify Your Personal Constraints
(hink about your personal life and goals as ill. Ask yourself, D$hat are my
most
important goals? $hy am I not there already? $hat is it within me that is
holding me
back?E
Is it the lack of a particular quality, attribute or skill that sets the speed at
hich I
achieve my goals? Is it a particular attitude or belief that is holding me back?
And most
important, hat could you do immediately to alleviate your key constraints,
starting today?
1liminate the <oadbloc"s:
4. /et clear, measurable goals for sales and pro&tability. %o ask, D$hat
determines
the speed at hich I achieve these goals?E
<. 9se sentence completion eHercises. /ay, D$e could double our sales if it
+ust
asn!t for..E and &ll in the blank.
6. Identify the ma+or block to your achieving your most important goal? )o
could
you remove it?
?. Look ithin your company for the limiting factors that hold you back. $hat
are
the chokepoints in your business?
@. Assess each person in each key position. Are they competent and capable
of
doing hat needs to be done for you to be successful?
A. 2nce you have identi&ed your key constraint to business success, ask,
D$hat else
is holding us back?E :eep asking, D$hat else?E until you get to the real
problem.
B. In your on career and personal life, hat sets the speed at hich you
achieve
your goals? Look ithin yourself for the ansers.
3a"e /aster# &etter 'ecisions
$henever they bring you a problem
or a question, alays ask, D$hat do you think e should do?E
<eengineer Your Comany:
4. 1ractice simpli&cation as a ay of life. In hat areas of ork has your life
become
too complicated, and hat can you do to get it back under control?
<. 1ractice zero-based thinking ith every step and every activity. If you ere
not
no doing it this ay, ould you start doing it this ay again today?
6. (ake a single compleH process or +ob and make a list of every step from
beginning
to end. )o could you reduce the number of steps by 65J the &rst time
through?
?. $hat tasks or activities could you delegate to someone ho can do them
B5J as
ell as you?
@. $hat parts of your business could you outsource to companies or
individuals ho
specialize in that area?
A. $hat parts of your ork could you eliminate altogether ith little or no
impact on
your bottom line?
B. $hat parts of your personal life do you need to streamline and simplify?
$hen are
you going to do it?
Pum , Your Pro-ts:
4. 'o a complete pro&t analysis on every product and service you o7er. *ank
them
from highest to loest.
<. Identify the <5J of your products that account for I5J of your sales.
$hich are
they?
6. Identify the <5J of your products and services that account for I5J of
your
pro&ts. Are they the same as your anser to T<?
?. After deducting all direct and indirect costs, hich are your most pro&table
products or services based on cost and return on investment?
@. )o much is your time orth on an hourly basis? ,uild this cost into
everything
you do to get an accurate measure of costs and pro&tability.
A. Attribute a percentage of all general and administrative costs to each
product or
service you sell. (his eHercise often turns pro&ts into losses.
B. If your company as facing serious &nancial shortages, hich products or
services
ould you focus your energies on, and hich ould you discontinue? (hink
about doing
it no.
It Starts /rom The To
#ncourage each person to &nd ays to do their +obs better, faster, and easier.
Allo them the freedom to eHperiment ith improvements, ith no fear of
criticism if
they don!t ork. /ometimes the greatest improvements occur as the result of
a series of
small eHperiments that ere not successful.
Fou should stand back regularly and eHamine every product, service and
process.
)o could you improve it in some ay? )o could you make it better, faster
or cheaper?
)o could you get the same or better results faster, or at a loer cost? %ever
be satis&ed
or content ith eHisting quality levels. Alays look for ays to improve upon
them.
,rainstorm ith your team regularly to generate ideas to cut costs, improve
quality,
increase sales and boost pro&ts. #ncourage everyone to think, all day long,
about ho
they can do their +obs better. "ake this commitment to continuous
improvement a part of
your corporate culture.
Commit to 12cellence
If everyone in your marketplace referred to you and your o7erings as the
best in the business, hat kind of a di7erence ould that make in your sales
and
pro&tability?
$ith that as your goal, hat ould you have to do, starting today, to assure
that
everyone refers to you as Dthe bestE sometime in the future? $hat could you
do, starting
today, to begin this process? $hat is the &rst step you should take?
>uality and Pro-tability
D$hich of these companies do you feel is the best in this particular industry?E
)ere!s the questionG If such a survey ere done among potential customers
for hat you
sell, here do you feel your company ould rank in such a comparison?
$ould you be
ranked as Dthe best,E or somehere loer? $hat could you do to move
higher in the
rankings? $hat one step could you take immediately?
5o! 'o Customers 'e-ne >ualityB
What 'o Customers WantB
Commit to Continuous Imrovement:
4. )o do your customers de&ne quality? $hat is most important to them in
choosing your product or service?
<. )o do you rank against your competitors on a scale from one to ten? )o
could
you improve your ranking immediately?
6. /et up a reard system in your company for suggestions and ideas to
improve
quality and achieve greater customer satisfaction?
?. 'o you have quality and performance standards for people, products and
activities
in your company? 'oes everyone kno hat they are?
@. $hat company do you think is the best in your business, the most
respected and
pro&table? )o could you benchmark yourself against them?
A. $hat one step could you take immediately to improve customer
satisfaction ith
your company?
B. $hat could you do personally to upgrade and improve the quality of your
performance in the most important things you do in your +ob?
'e-ne Your Core &usiness
$hat is your core business? If everything else as stripped aay, hat ould
be left at
your core?
Identify the <5J of opportunities available to you today that can be
responsible for
I5J of your sales and revenues in the years ahead. (hese ill almost alays
be
eHtensions of your current business, your core competencies, and your areas
of
eHcellence. Four choice of the opportunities available to you largely
determines the
future of your business. $hat are they?
/ocus On 8alue
$hat are the <5J of your ork activities that account for I5J of your
personal
value and your contribution to your company? If you +ust doubled the amount
of time you
spend on the <5J of your high value tasks, and discontinued the I5J of lo
value-no
value tasks that you do, you could become most of the most productive
people in your
company. (hese are your core tasks.
$hat are the <5J of problems, aggravations, and irritations that account for
I5J of
your headaches in your ork? $ho are the most diKcult people, customers
or situations
that you have to deal ith each day? $hat can you do today to minimize or
eliminate
them?
,ased on this I5-<5 analysis, hat steps can you take immediately to
improve,
increase, and strengthen your core products, services, customers and
activities? $hat
should you do &rst?
Where 'o You 12celB
In hat areas of your products and services are you, or could you be better
than
R@J of your competition?
Advance Planning
(his 1itadel is your core business. $hat is yours? $hatever it is, practice
D/cenario
1lanningE on a regular basis. Ask yourself, D$hat is the orst thing that could
possibly
happen in my market today?E
$hatever your anser is to that question, begin making provisions today to
assure
that you ill be able to survive, should it occur.
Your Personal Citadel Strategy
As an individual, you must be clear about your personal core competencies,
as
ell. )o could you improve in each one of them? $hat core competencies
ill you
need to lead your &eld in the years ahead? $hat is your plan to acquire the
core
competencies of tomorro?
Concentrate On the Core:
4. $hat is your core business? $hat products and services are most
responsible for
your success today?
<. $hat are your core competencies? $hat is it that your company does
eHtremely
ell?
6. $hat are the orst possible things that could happen to your business in
the neHt
year? $hat are your plans to deal ith them, should they occur?
?. $hat are your non-core products, services or activities? $hat ould
happen if you
discontinued them entirely?
@. $ho are your core customers, and hat are you doing to assure that they
never
leave you?
A. $ho are your core people, the ones ho are most important for the
survival and
groth of your business? $hat is your strategy to keep them?
B. $hat are your core functions? $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, customers have four questions
that
must be ansered before going aheadG
4. $hat does it cost?
<. $hat do I get for the money?
6. )o fast do I get the bene&ts you promise?
?. )o sure can I be that I ill get those bene&ts?
$hichever company or salesperson ansers these questions most
convincingly
ins the sale.
'eliver On Your Promises
D$hat results or bene&ts do my customers eHpect of my
product or service?E and D)o consistently do my customers get those
results and bene&ts
hen they buy my products or services?E (his is the true de&nition of
Dquality.E
Uuality can be de&ned as, Dthe percentage of times that your product or
service
does hat you say it ill do, and continues to do it.E
A quality rating of 455J, or perfect quality, means that hat you sell always
delivers on your promises. A quality rating of R5J means that your product
gets the
desired or promised results nine out of ten times.
+ittle Things 3ean A +ot
8ederal #Hpress has determined that if its quality rating as RR.R5J, they
ould
make mistakes in the delivery of ??,555 envelopes a day. At RR.R5J quality,
8ederal
#Hpress ould collapse under its on eight of confusion. (hat is ho
important quality
is in a business.
Four personal success is also determined by ho consistently and dependably
you
perform and deliver on your responsibilities and promises. Fou should
continually ask
yourself, D$hat results are eHpected of me?E
Four level of e7ectiveness is alays de&ned by others, by hat they need
from
you. Leaders are alays asking, D$hat does this situation need of me?E 2nce
they are
clear, they concentrate their energies in those areas.
Ask yourself, D2f all the results I can accomplish, hat are the most valuable
and
important in terms of my reards and my future?E
Imroving Your Ability to .et <esults
)ere are seven of the best questions you can ask and anser to improve your
ability to get resultsG
4. D$hy am I on the payroll?E $hat eHactly have you been hired to
accomplish?
"ake sure that hat you are doing every day is the anser to this question.
<. D$hat are my highest value tasks and activities?E 2f 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?
6. D$hat are my key result areas?E $hat are the core competencies and key
tasks
that you must absolutely, positively do in an eHcellent fashion to produce the
most
important and valued results eHpected of you? *esolve today to become a
Ddo-it-toyourself-
pro+ect.E 8or the rest of your career, dedicate yourself to continually learning
and
improving in those areas here top performance is most vital to your
success. Oetting
better at your key tasks is one of the best time saving techniques of all.
?. D$hat can I and only I do that, if done ell, ill make a real di7erence?E
(here is alays something that only you can do that can make a signi&cant
di7erence to
your life and your ork. If you don!t do it, it on!t get done. %o one else ill
do it for
you. ,ut if you do it, and you do it ell, it can make a signi&cant di7erence.
$hat is it?
@. D$hat one skill, if I developed and did it in an excellent fashion, ould
have
the greatest positive impact on my career?E (here is alays one skill that if
you developed
it and did it ell, ould have a greater and more positive impact on your
career than any
other single skill. Four +ob is to identify that skill and then put your hole
heart into
becoming absolutely eHcellent in that area, hatever it is.
A. D$hat one result, if I achieved it consistently for my customers, ould
most
satisfy those customers and bring me the greatest number of additional
customers?E $hat
must your customer be absolutely convinced that he or she ill receive from
you in order
to buy your product or service and to recommend it to his or her friends? )o
could you
improve your quality and service in that area?
B. (he &nal question for personal success, number seven, is thisG D$hat is the
most valuable use of my time right no?E 9se 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
If you could only perform one task all day long, hat one thing could you do
that
ould contribute more value to your life and ork 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:
4. Start Where You AreG 'o a complete and honest analysis of your
business as it is
today, including the current status of your sales, revenues, pro&tability and
the market
situation around you.
D$ 'ra! A +ine ,nder the Past: Apply zero based thinking to every part of
your
business. If you ere not doing it today, knowing what you now know, ould
you get
into it again today?
6$ Conduct A &asic &usiness Analysis: #Hamine your products, services,
processes,
and activities as if you ere looking at them for the &rst time. ,e prepared to
ask yourself
the Dbrutal questionsE about each one of them.
E$ 'ecide 12actly What You Want: /et clear, ritten, measurable goals
and
ob+ectives for yourself in each part of your business.
7$ 'esign Your Ideal /uture: 1ro+ect forard 6-@ years and imagine that
your
business as ideal in every respect. $hat ould it look like? $hat could you
do, starting
today, to make that future vision into a current reality?
:$ Create A 3ission Statement: 'ecide eHactly hat it is you ant to
accomplish
for others ith your business. "ake it measurable. "ake it eHciting. /hare it
ith
everyone.
;$ <einvent Your Organi%ation: Imagine starting your business or career
over again
today, ith your present knoledge and eHperience. $hat ould you do
di7erently?
?$ Select the <ight Peole: 8ully R@J of your success in business ill be
determined by the people you choose to ork ith and for. (ake the time to
make good
personnel decisions.
I$ 3ar"et 3ore 1=ectively: (hink through every part of your marketing
strategy by
applying the four principles of specialization, di7erentiation, segmentation
and
concentration to every product and service.
C@$ Analy%e Your Cometition: 'ecide eHactly ho you are competing
against, and
hy it is that your prospective customers prefer to buy from them. )o could
you o7set
this perceived advantage?
CC$ 'o It &etter# Cheaer# /asterG Pontinually seek ays to serve and
satisfy your
customer in a superior fashion to any one else in your market. %ever stop
raising the bar
on yourself.
CD$ Change Your 3ar"eting 3i2: Imagine being your on management
consultant
and asking yourself hard questions about the appropriateness of your
product, price,
place and promotion in today!s market.
C6$ Position Your Comany /or SuccessG 'etermine ho you ant to be
thought
about and talked about by your customers and prospective customers. $hat
are the very
best ords they could use to describe you?
CE$ 'evelo Strategic &usiness ,nits: 'ivide your products and services
into one
of four categoriesG cash cows, stars, 3uestion marks and dogs. "ake one
person
responsible for sales and pro&tability for each product or group of products.
C7$ Sell 3ore 1=ectively: 8ocus single-mindedly on upgrading the quality
of your
sales e7ort. )ire more selectively, train more thoroughly, and manage more
professionally. /ales are the lifeblood of the business.
C:$ 1liminate the &ottlenec"s: Identify the factors that determine ho
fast you
achieve your goals of sales and pro&tability. Poncentrate on alleviating these
bottlenecks
in every part of your business.
C;$ <eengineer Your Comany: Pontinually seek ays to streamline and
simplify
the process of producing and selling your products and services. Learn to
delegate,
outsource, donsize and eliminate the compleHity of everything you do.
C?$ Pum , Your Pro-ts: #valuate every product and service to
determine eHactly
ho much net pro&t you are actually earning from each item you sell. *esolve
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 Imrovement: Install the :aizen process of
Dcontinuous bettermentE into your company. 8ind out ho your customer
de&nes
DqualityE and then continually strive to eHceed eHpectations.
D@$ Concentrate On The Core: Identify the most important products and
services
you o7er, and then focus on getting better and better selling more and more
of them.
1robably I5J of the market potential for your core products has not yet been
tapped.
<4. /ocus On <esults: Poncentrate your best energies and resources on
getting the
most important results possible for your company. /et priorities in every area
and then
ork single-mindedly to complete the fe tasks that are more valuable than
everything
else put together.
(he most important part of the (urbostrategy is not hat you learn, but the
actions you
take, and ho quickly you take those actions. (here is a direct relationship
beteen ho
fast you move on a ne idea and ho likely it is that you ill ever move on a
ne idea.
*esolve today to become intensely action-oriented for the rest of your career.
Qust do itL
The Turbostrategy Process