The most important part of this book however, is not what you read or learn,

but what
you actually do with these practical, proven concepts. Action is everything.
As you read,
think continually about specifc steps you can take immediately to apply
these ideas in
your business.
In business, as in so many areas of life, results are everything. As you go
along, think
about how these strategies can help you to get better results, faster!
She had two basic uestions!
"#hat$s working%&
'orea, AA()S, )mpower *etwork, +ealth, #ealth, 'nowledge, #isdom, Study
"#hat$s not working%&
"#ho$s working%&
AA()S co,workers, 'oreans, )mpower *etwork, -I./0rosperity Team/0ro1ect
A#23
"#ho$s not working%&
#hat is your current level of sales%
+igh with AA()S
-reak them down by product, product line, service, market and distribution
channel.
#hat e4actly are you selling, to which customers%
.yself, AA()S (ood 5 Alchohol
At what prices%
.yself,67.78hr
AA()S products,premium prices
#ith what level of proftability%
.yself,9urrently low proftability
AA()S,:ising proftability
9ompare your current sales with your assumptions, your e4pectations and
your pro1ections.
AA()S Sales are as e4pected
.yself,6;<,<<< month minimum reuired
Are you on track%
=es with >niv of .Aryland -A+ proving 6;7?< month I will be towards @A33
I*@ with )mpower *etwork
9ompare your level of sales with last year.
.uch better.
#hat are the trends%
Increase
Are they up or down%
>p
Is this trend temporary or permanent%
0ermanent
#hat do the trends suggest for the future of your business%
>nlimited 2pportunity
#hat could you do to respond more eAectively to them%
3earn 'orean faster, *etworking with 92BI9 members, 0roduce/sell 3earn
'orean *ow product!
Cash Flow Is Everything
3ook at your cash Cow and levels of proftability from each product, service
and
area of activity.
Are your profts going up or down%
>p
Are they on budget or going sideways%
3ook at the percentages. AnalyDe your return,on,euity, return,on,
investment,
and return,on,sales.
Are they increasing or decreasing%
If your goal is to build a great company, why isn$t your company already
great%
.ore capital reuired for )mpower network
#hich of your products or services is selling well today%
.y sales skills and )mpower *etwork
#hich of your products and services are the most proftable%
.y sales skills and )mpower *etwork
#hich ones are doing poorly%
#hich ones do you lose money on%
Erinking too much alchohol
Is your current business situation, positive or negative, in any area%
.ore capital reuired
Temporary or part of a long,term trend%
3ongterm
+ow can you know for sure%
Action
+ow can you fnd out%
:e1oin )mpower *etwork with -I./Fick StriDheusG3ike +obbsG0ro1ect A#23
#hat should you then do%
.ake 6;<,<<< frst H< days
Clarity Is the Key
#hy has your business been successful in the past%
.y study of business
#hat have you done well 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 oAer right now%
.y study of business, marketing and sales.
3ook at the people around you. #ho are your most valuable people%
A(+ Shoppette and >niversity 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 answer the brutal uestions.
The Customer Is the King
#ho are your best customers today%
'oreans, single males, and business opportunity seekers
#hat and where are your best markets%
Asia and the internet
#hat do your customers like the most about what you do for them%
.ake them happy
#hat do they compliment the most of what you oAer 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%
Sales and presentation
#hat do your customers like the least about what you do%
#hen I@m angry or tired
#hat do they complain about the most%
*ot having what they want available for purchase
#hat is it that you sell that your customers and potential customers prefer to
buy somewhere else, rather than from you%
Identify Your Personal Strengths
3ook at yourself honestly. #hat are your own personal best skills, ualities
and abilities%
)nglish, Studying, strategic planning, marketing and sales
#hat are the most important things that you do at work, and for your
company%
Eaily 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:
;. #hat is working the very best in your business today%
Sales and marketing
#hat parts of your business make you the happiest%
.arketing
I. #hat$s not working in your business%
#aiting on capital
#hat causes you the most aggravation and frustration%
#aiting on capital
H. #hat are your most important products and markets%
.e Jsales/marketing/english skillsK, )mpower *etwork in th >S/South
'orean markets
#hat accounts for the largest portion of your revenues%
A(+ and )mpower *etwork
L. #ho are your most important people%
A(+ and )mpower *etwork
#ho are the people who account for most of your results%
A(+ and )mpower *etwork
8. #hat are your special talents and skills% #hat is it you do that accounts for
most
of your success%
M. #hat are the ma1or changes taking place in your market% #hat changes
should
you make to compensate for them%
7. #hat are your most treasured assumptions about your people, customers,
markets,
products, services and yourself% #hat if one of them wasn$t true% #hat would
you do
then%
Imagine Starting ver
Nero,based thinking reuires that you apply this "scraper& mentality to every
part
of your business. =ou do this by asking this key uestion! Is there anything
that you are
doing in your business that, knowing what you now know, you wouldnt
start up again
today, if you had it to do over?
Instead of struggling to determine how you might modify, change, f4, revise,
improve or alter some business function, you instead ask, "If I was not doing
this today,
would I start it up again today, knowing what I now know?
To start with, is there any product or service that you would not bring to the
market, oAer or sell, if you had to do it over again, starting today% Since O<P
of your
products and services are probably going to be obsolete within the ne4t fve
years, there
may be products and services you are oAering today that, because of
changed market
conditions, you would not introduce again today, if you had to do it over
again, knowing
what you now know. These products or services are prime candidates for
discontinuation
or divestiture.
Is there any person in your business that you would not hire, assign, appoint,
go
to work for, or become associated with if you had to do it over again today%
.ost of your
problems in business will come from attempting to work with or around a
diQcult person,
who knowing what you now know, you wouldn$t get involved with again
today. #ho
does this bring to mind%
Is there any supplier, banker or vendor that you are dealing with today that,
knowing what you now know, you wouldn$t get involved with again today, if
you had to
do it over% Sin!e many of your "usiness relationshi#s will not wor$
out over time% you
must "e #re#ared to !ontinually reevaluate them% es#e!ially if they
are !ausing you any
#ro"lems or frustrations&
Analy'e Your Customers
Is there any customer that you are selling to or servicing today that, knowing
what you now know, you wouldn$t take on again as a customer% .any
companies are
asking this uestion about their diQcult customers and deciding to let them
go.
Sometimes, one of the smartest things you can do is to "fre your customers.&
)ncourage
them to go and deal with someone else who would be more appropriate for
them.
Assess Your (usiness #erations
Is there any expenditure in your business that you would not authoriDe again
if
you had it to do over% Is there any process, procedure or activity that,
knowing what you
now know, you wouldn$t start up again, or get into, if you were making the
decision
today, knowing what you now know%
Is there any advertising, marketing or selling methodology or e4pense that
knowing what you now know, you wouldn$t start up again today, if you had to
do it
over% 'eep asking, "#hat$s working%& and "#hat$s not working%&
Pay Attention To The Indi!ators
=ou can always tell when you are in a Dero,based
thinking situation because it
causes you continuous stress, aggravation,
frustration, negativity and unhappiness. =ou
think about it continually. 2ften you bring it home at
night and discuss it at the family
dinner table. Sometimes it will even keep you awake
at night.
#henever something is not working, or not working
out the way you e4pected,
or causing you stress, fnancial losses, aggravation,
or irritation, ask, Knowing what I now
know, would I get into this again today if I had to do
it over?
If the answer is "*o!& then your ne4t uestion is
How do I get out and how fast?
The )e!ision Is Inevita"le
+ere$s an important point. If something is not working, eventually you will
have to
get out of it. =ou will have to let the person go, discontinue the product or
service,
eliminate the activity or e4pense, 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 e4ecutive who
fnally
decides to get out of an unhappy situation says afterwards, "I should have
done this a
long time ago!&
A##ly This A##roa!h Continually
Pra!ti!e 'ero*"ased thin$ing as a +go forward, method for the rest
of your
"usiness !areer& A##ly it to everything you do% to every #art of your
"usiness% every single
day& A##ly it to every #rodu!t% servi!e% #ro!ess% #ro!edure and
#erson and "e sure that%
$nowing what you now $now% you would get into it again
today if you had to do it over &
If not% get out% and as fast as you !an&
)raw A -ine .nder the Past:
;. Imagine starting over again in every part of your businessR is there
anything you
are doing that, knowing what you now know, you wouldn$t start up again
today%
I. Is there any person in your business life who, knowing what you now know,
you
wouldn$t hire, assign, promote or otherwise get involved with again today,
knowing what
you now know%
H. Is there any product or service that, knowing what you now know, you
wouldn$t
bring to the market again today%
L. Is there any investment that you have made that, knowing what you now
know,
you wouldn$t make again today%
8. Is there any business activity or process that you are using that, knowing
what you
now know, you wouldn$t start up again today%
M. Is there any customer or market that, knowing what you now know, you
wouldn$t
take on or get into again today, if you had it to do over%
7. Is there any career decision that you have made that, knowing what you
now
know, you wouldn$t make the same way if you had it to do over again today%
Start With The (asi!s
The starting point of business analysis is for you to ask! "#hat business am I
in%&
#hat business are you really in% #hat business are you really, really in%&
I soon realiDed I was in the "goal
a!hievement "usiness& J.e T22!
S):BK.
.y business was helping people
to achieve their personal and business
goals faster by providing them with
practical ideas
that they could use immediately to get
better results.
This insight led me from talks and
seminars into audio and video
recording,
books, training programs and Internet
based e, learning on a variety of
sub1ects, including
the development and presentation of
the Turbostrategy 0rocess.
The Customer As Center#ie!e
"#ho is my customer%&
#ho is the person who buys from you today% Eescribe your customer in
detail. #hat is
the age, income, education, position, attitude, location and interest of your
ideal customer%
.any companies are not e4actly sure of the answer to this uestion. They
have at best an
unclear picture of the psychological and demographic characteristics of their
customers.
#ho will your customer be tomorrow, if current trends continue% #ho should
your customer be, if you want to be successful in the markets of tomorrow%
#ho could
your customer be if you were to change, improve or upgrade your product or
service
oAerings%
)etermine What You Sell
=our ne4t uestion is! "#hy does my customer buy%& #hat value, beneft,
result
or diAerence does your customer seek or e4pect to en1oy as a result of doing
business
with you% 2f all the various benefts that your products or services oAer your
customers,
what do your customers consider to be more important than anything else%
Eo you know%
=our ability to defne and promote this uniue beneft is the real key to
competitive
advantage and market success.
=ou ne4t uestion is! "#hat do we do especially well%& #hat do you do better
than any of your competitors% #here are you superior% 9ustomers only buy
from a
particular company because they feel that, in some way, that company oAers
something
that is superior to that of any other oAering. #hat is your area of e4cellence%
Tack #elch of Beneral )lectric was famous for saying, "If you don$t have
competitive advantage, don$t compete.& +is philosophy was that Beneral
)lectric would
be number one or number two in every market segment in which they
competed, or they
would get out of that market. Are you number one or number two in your
market% 9an
you be% #hat is your plan to achieve this market position%
)e/ne Your Com#etitor
The ne4t uestion, which we will deal with e4tensively in 9hapter ;<, is! "#ho
is
your competition%& 2nce you have identifed your competition, you must ask,
"#hy does
your potential customer buy from your competition, rather than from you%&
#hat value or
beneft does he perceive that he receives from someone else that he does
not feel he
receives from you% +ow could you oAset this perception%
Set Clear 0oals
In performing an e4amination of your business, you must ask continually,
"#hat
are my goals%& #hat are you trying to accomplish% If you are clear about your
goals, what
is holding you back from achieving them%
=ou need clear, written, measurable, time,bounded goals for every part of
your
business and personal life. =ou need short,term, medium,term and long,term
goals. )ach
goal must be in writing, with plans for its accomplishment. =ou can$t hit a
target that you
can$t see.
AnalyDe everything you do in the course of a day or a week. #hat are the
I<P of
your activities that could account for O<P or more of your results%
Sometimes, 1ust ;<P of
your activities, if you were to pursue them aggressively, could account for
?<P of your
results. #hat might they be%
(e!ome A!tion*riented
#hat actions should you take immediately in response to the answers to
these
uestions% #hat is the very frst thing you should do right now to increase
your sales and
improve your market position%
Another good uestion you should ask yourself is! "#hy am I in business at
all%&
#hy do you e4ist% #hat social purpose does your company serve% #hat loss
would 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
1ustify
your continued e4istence. #hat would you say to the tribunal in terms of how
you serve,
help, or make a diAerence in the lives or work of your customers to 1ustify
staying in
business%
These are key uestions that you need to ask and answer for your business
on a
regular basis. =ou should ask and answer these uestions for yourself, as
well. If you are
unclear or inaccurate in your answers to any of them, the health of your
enterprise could
be in 1eopardy.
Condu!t A (asi! (usiness Analysis:
;. #hat are your goals for your business% #hat are you trying to accomplish%
I. #ho is your ideal customer% Eescribe him or her accurately.
H. #hy does your customer buy from you% #hat special benefts or
advantages do
you oAer that your competitors don$t have%
L. #hat business are you really in% Eescribe your business in terms of what
you do
for your customer, what results you get.
8. #hat are the I<P of your activities that could account for O<P of your
results%
M. #hat is your competitive advantage, your "area of e4cellence%& In what
ways are
you superior to ?<P or more of your competitors%
7. #hat specifc, measurable actions should you take immediately in answer
to the
above uestions%
Cha#ter Four 1 )e!ide E2a!tly What You Want
he world has the habit of making way for the man whose words and actions
show that
he knows where he is going! J*apoleon +illK
Turbostrategy begins with your deciding e4actly what you want to accomplish
in
the key areas of your business life. 2nce you know your goals in each area,
you can then
decide upon the best steps you can take to get there.
The 0SPA 3odel
=ou can use the B2S0A .odel as a guide for strategic planning. These fve
key
thinking tools form the basis for successful business operations.
(egin With The End In 3ind
The frst letter, "B& stands for 0oals. These are the ultimate results that you
want
to achieve. =our goals are the end targets that you aim at throughout your
business year
or planning period. =our goals are your sales, profts, growth rate, market
share, or
percentage of return on assets, euity, investment or sales. Boals are always
measurable.
#hat are yours%
Ste#s on the Stair!ase
The second letter, "2& stands for "4e!tives. These are the steps you will
have to
take to achieve your goals. They are like the rungs on the ladder to get to the
top.
=our business ob1ectives can be specifc 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 lower defect rate or a higher sale amount
per customer
can be ob1ectives on the path to achieving the main corporate goals. #hat
are your
interim ob1ectives%
5ow to 0et There
The letter "S& stands for Strategies. These are the diAerent approaches that
you
can take to achieve your ob1ectives and reach your goals. (or e4ample,
achieving a
specifc level of proftability will reuire producing and selling specifc
uantities of
products or services to a specifc market in a specifc way. There are many
diAerent ways
to go about accomplishing these ob1ectives. The way you choose is your
strategy, and
may determine the success or failure of your enterprise.
Eo you produce, market, sell, deliver yourself, or do you outsource some part
of
the process% Eo you sell direct, via retail, direct mail, catalog or Internet% Eo
you charge
more, charge less, up,sell, cross,sell or discount% Eo you enter certain
markets and
abandon others% #hat is your strategy% Is it working%
Planning For Su!!ess
The letter "0& stands for Plans. These are your blueprints for achieving your
goals. =our plans are composed of step,by,step lists of e4actly what you will
do, day by
day, to get from wherever you are to wherever you want to go. 0lans are
always broken
down by seuence and priority.
Some things have to be done before others can be done. Some things are
more important
than others in achieving the goal or ob1ective. #hen your plan is organiDed by
seuence
and priority, you can accomplish much more in less time.
-usiness life consists almost entirely of pro1ects, one after the other. A pro1ect
can
be defned as a multi"task #ob, a 1ob made up of many small 1obs, each of
which has to be
done properly to complete the larger task. =our ability to plan, organiDe and
complete
multi,task 1obs, ever larger and more comple4, is the most important single
element of
your success, in any feld.
)evelo# a (ias for A!tion
The last letter in the B2S0A process, "A&, stands for A!tions. These are the
specifc 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 specifc person who is ualifed to perform the task correctly, on time and
on budget.
$hat gets measured gets done!
Fo!us on Pro/ta"ility
The central purpose of Turbostrategy is to boost your cash Cow and profts,
and
to increase your return on the money invested in your business. The aim of
strategy is to
generate a higher level of cash Cow and proftability than you would realiDe
without the
strategy, or with your previous strategy. In short, it is to make more money
than you are
making right now from the way that you are doing business today.
The essential resources of people, money and talent that you need to
succeed in
your business are always limited. They must be focused and concentrated for
ma4imum
results. This is what a good strategy enables you to do.
Four Ways to Im#rove Your (usiness
Setting strategy reuires making hard decisions in four areas! (irst, you must
decide what you are going to do more of. #hat$s working% #hat is selling
well% #hat
products, services and activities are the most proftable%
Second, you must decide what you are going to do less of. #hat$s not
working%
#hat contributes very little to growth and proftability% #hat should you
discontinue or
eliminate based on the realities of today$s market and today$s customers%
#hat can you do
to reduce costs in areas where they contribute very little to results%
Third, what are you going to start doing that you$re not doing today% #hat
new
products, services or activities should you introduce if you want to increase
your sales and
proftability, or improve and streamline your activities%
(inally, what are you going to stop doing altogether% :emember, the critical
resources of time and money are always scarce. The only way you can
improve results is
by discontinuing certain activities altogether. =ou can then channel those
resources into
areas where they yield higher levels of business results.
Clarity is the key to strategic success. The more time you take to be
absolutely
clear about who you are, and what you want to accomplish, the more
successful and
proftable you will be.
)e!ide E2a!tly What You Want:
;. #hat are your specifc, measurable long,term goals for sales and
proftability in
your business% #rite them down.
I. #hat are the specifc ob#ectives of sales, staQng, production, delivery and
customer development that you will have to achieve to accomplish your
goals%
H. #hat are the various ways that you can meet your ob1ectives and achieve
your
goals% #hat is the best strategy for you in today$s market%
L. #hat should you do more of and really focus on to increase your sales and
proftability%
8. #hat should you do less of, based on your current e4perience% #hat$s not
working%
M. #hat should you start doing that you are not doing today% #hat
opportunities are
available to you%
7. #hat should you discontinue, and stop doing altogether, so that you can
free up
resources for more proftable activities%
Cha#ter Five 1 )esign Your Ideal Future
$e have been endowed with the capacity and the power to create desirable
pictures within
and to %nd them automatically printed in the outer world of our
environment! JTohn
.cEonaldK
Some time ago, I conducted a strategic planning session for the senior
e4ecutives
of a 6;7I billion dollar company. The organiDation was going through a period
of
considerable turbulence, change, competition and new government
regulation. There had
been lay,oAs, frings, downsiDing and divestments. .y clients were the top
e4ecutives
who had survived the recent turmoil, and the blood letting was not yet over.
In these
circumstances, they were both worried about the future and distracted in the
present.
Create A Five Year Fantasy
To get them centered and focused, I began the strategy session with a
process that
I call +Ideali'ation&, In this process, which you can use yourself, I had the
members of
the top team create a "fve year fantasy.&
"3et us put aside the current situation for the moment,& I suggested.
"Instead, tell
me what this company would look like fve years from now if it was perfect in
every
respect%&
This e4ercise forced them to take their attention away from the problems of
the
present and focus their thinking on the possibilities of the future.
As we went around the room, each person contributed an idea about what
the
company would look like if it were perfect. I wrote each idea on a Cip chart
and taped
the pages onto the walls where everyone could see them. In less than half an
hour, we
generated I7 ideal descriptions.
#e then voted on these idealiDed goals and organiDed them by priority. #e
ended up
with a series of clear ob1ectives, including "highly proftable, tremendous
market
reputation, high stock price, top leadership, fabulous customer service, great
place to
work, best management, rapid growth rate and top reputation in the
industry,& among
others.
Thin$ In Terms f Possi"ilities
I then asked them, "Are these goals possible%& 2ne by one, they agreed that
all of
these goals were possible in fve years. They might not be achievable in one
or two years,
but in fve years, every one of them could be accomplished with will and
determination.
#e came out of that session with everyone revitaliDed and committed to
working
on achieving one or more of those fve,year fantasies. 2ver the ne4t two
years, the
company completely reorganiDed. They did more of some things and less of
others. They
started doing things that they had not done in the past, and they stopped
certain activities
altogether. They took complete control of their corporate destiny and
changed it.
0eter Erucker once wrote, "#e greatly overestimate what we can accomplish
in one
yearR but we greatly underestimate what is possible for us in fve years.&
Thin$ A"out The Future
Future*orientation is a key element of strategic planning and strategic
thinking.
It is a ma1or 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. There is no
one else in the
organiDation who can do it, and if the leader does not think about and plan for
the future
as an ongoing part of his 1ob, it will not be done. As they say in Alaska, "2nly
the lead
sled dog ever gets a diAerent view.&
+ow often and how well the top people in the company think about the future
largely
determines the success or failure of the business. "If you don$t know where
you$re going,
any road will take you there.&
The development of the uality of future,orientation reuires that you
continually
create an ideal image of your company some time in the future. You #ro4e!t
forward in
your mind 6*7 years and imagine that your !om#any is #erfe!t in
every res#e!t& You
de!ide e2a!tly how mu!h you would "e selling and earning at that
time& You imagine
your ideal sto!$ #ri!e% your ideal re#utation in the mar$et% your ideal
wor$ situation and
your ideal human environment&
(a!$ From The Future Thin$ing
2nce you have a clear picture of your
ideal future, you then return mentally
to
your current situation and think about
what you would have to do, starting
today, to turn your future vision into a
current reality. This is called, "back
from the future thinking.&
.ake a list of all the things that would
have to happen for you to realiDe your
fantasy sometime in the future. It is
amaDing how your perspective
changes when you
look back from the future, e4actly as if
you were looking back from the top of
the
mountain to yourself down in the
valley, and seeing the e4act route you
will have to
follow to get to the top.
-eaders 5ave 8ision
In HH<< studies of leaders reviewed by Tames .ac0herson, searching for the
common denominators of leadership throughout the ages, the one uality
that all the
studies had in common was the uality of vision. 3eaders have visionR non,
leaders do
not.
To become a visionary reuires that you develop the ability to imagine,
defne,
articulate, share and inspire other people with an e4citing picture of the
future. =ou get
everyone in your business committed to fulflling this vision, and to working
toward it
every day. This is the key to leadership, and to building a great company.
Aristotle wrote, +We "e!ome what we re#eatedly do&, =ou become a
leader by thinking
the way leaders think, both in your business and in your personal life. =ou
become a
leader by thinking about the future, and how you can make it a present
reality.
9ow% 3ore Than Ever
-ut it is in times of rapid change, and turbulence in the market, that an
e4citing
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
work, even when times are tough and pay increases are not possible.
There are many ways you can approach the development of a vision for your
organiDation. Perha#s the very "est vision for your !om#any in!ludes
two $ey
!om#onents& First% it is fo!used on your !ustomers and on doing
something for them that
!hanges and im#roves their lives or wor$ in some way& Se!ond% it
!ontains a !ommitment
to excellence % to "e the very "est at doing what you do for your
!ustomers& These are the
$eys to vision&
=our vision is to "be the best!& at the most important thing that you do for
your
customers. =our vision is to serve your customers in such a way that you are
seen as
superior in a particular product, service or activity. Imagine that you could be
known as
outstanding in any one thing that you do for your customers. #hat would it
be% =our
answer can be the starting point of a vision for your business that changes
your future
completely.
Your Personal 8ision
=ou need a vision for yourself as well. 0ro1ect forward fve years in your
imagination. If your future were perfect in every way, what would it look like%
If your
income, your position in your company or feld, your family life, your health,
your 1ob
and every part of your life were ideal in every way, how would it be diAerent
from today%
2nce you are clear about your vision, for yourself and for your business, the
only uestion you ask is, &ow do I make it a reality? Top people think
continually in
terms of how? They think in terms of taking action, of what can be done.
2nce you have clarifed your vision, and determined what you will have to do
to make it a reality, you then do something every day to move you toward
the creation of
your ideal future. =ou take complete control of your destiny. As Erucker wrote,
"The very
best way to predict the future is to create it.& And the starting point is vision.
)esign Your Ideal Future:
;. #hat is your vision for your company% 0ro1ect forward and imagine that
your
business was ideal in every way. #hat would it look like%
I. #hat is your vision for yourself% If your life and career were ideal in every
way,
what would it look like%
H. IdealiDe in each area of your business. If your products, services, sale and
proftability were perfect, what would they look like%
L. IdealiDe with regard to your people. If your staA were ideal in terms of
skills,
abilities, personalities and results, how would they be diAerent from today%
8. Imagine that a ma1or magaDine was going to write a story about your
company.
#hat would you want them to say%
M. 0ro1ect forward fve years and then look back to today from that vantage
point.
#hat would you have to change today to create your ideal future%
7. In what one area would it be most helpful to sales and proftability if your
company were widely known as "the best%& #hat steps could you take
immediately to
begin earning that reputation%
Create A 3ission Statement:
;. Eetermine your personal reasons for doing what you do. #hat gives you a
sense
of meaning and purpose in life%
I. Eecide upon the H,8 key values upon which your company is based.
Involve other
people in the discussion.
H. Eefne the actions and behaviors that people will engage in, both inside
and
outside the company, that are consistent with your values.
L. Eesign a mission statement, an ideal description of what your company
wants to
accomplish for its customers sometime in the future.
7& #rite out a list of your values, and what they mean, plus your mission
statement,
and share them with your staA and customers.
:& 9reate a personal mission statement for your career. #hat do you want to
accomplish, and how do you want to be known%
;& 9reate a mission statement for yourself and your family. #hat is it that you
want
to accomplish or achieve with your family in the years ahead%
Cha#ter Seven 1 <einvent Your rgani'ation
'very man of genius sees the world at a di(erent angle than his fellows!
J+avelock )llisK
Tack #elch of Beneral )lectric once said, "If the rate of change outside your
organiDation is greater than the rate of change inside your organiDation, then
the end is in
sight.&
In times of turbulence, you should be prepared to reinvent your business as
often
as necessary as your e4ternal world changes.
As an e4ercise, imagine that you were starting your business over again
today.
#hat would you get into, or not get into%
(undle of <esour!es
(or greater perspective, stand back and view your business as a bundle of
resources and
capabilities, like a fre hose of talent and ability that can be aimed in many
directions to
achieve diAerent results. Instead of limiting yourself to seeing your business
as an
organiDation that is designed to perform specifc functions, producing and
selling certain
products and services, think of it as being capable of doing a variety of things
completely
diAerent from what you are doing today.
The 0reat Fire
As you think about reinventing your business, imagine that your company
burned
to the ground while you were away. #hen you arrived at the scene, you found
that all
your staA were safe and standing around in the parking lot.
As it happens, there is unoccupied oQce space available across the street.
=ou
can immediately move into the new space and start your business anew.
+ere is the
uestion! #hich of 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%
E2amine Every <elationshi#
If you were starting your business over again today, completely free from any
encumbrances of the past, which customers would you call frst, and which
ones not at
all% #hich vendors, suppliers, bankers or other people would you immediately
get in
touch with, and who would you call later, if 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= <elationshi#s
*ow, let$s go back to the parking lot. 3et us assume that all of your people
are
safe and standing around waiting for instructions. #hich of them 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 most important person whose services you
would want to
secure% #ho would be the second most important% #ho would be third% And
so on.
E2amine Your rgani'ation
If you could reinvent your business, what would you do more of% #hat would
you
do less of% #hat would you start doing that you are not doing today% #hat
would you
stop doing altogether%
In reinventing your organiDation, ask yourself, "#hat are my most important
talents, skills, abilities and core competencies, and what else could I do with
them% #ho
are my best people and what else could they do% 'eep thinking about how
you would
reinvent your business if you were starting over. This will keep you on the
cutting edge of
creativity and innovation.
Thin$ In Terms of E2!ellen!e
The key uestions in reinvention are, "#hat could you be absolutely e4cellent
at
doing in today$s market%& #here could you be the best% #here could you
achieve worldclass
uality% #here could you be better than ?<P of your competitors% "
The market only pays e4traordinary rewards for e4traordinary products and
services. #here and how could you do what you do in an e4traordinary
fashion%
<einvent Your Career
(inally, think about reinventing yourself and your career on a regular basis, as
well. If 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 of%
If you were starting your career over again, what additional knowledge and
skills
would you want to have% #hat can you do, starting today, to acuire those
key skills%
Imagine that you could do a variety of 1obs. #hat would you really like to do
with your
life%
Since you were going to have to reinvent yourself regularly throughout your
career, it is
very important that you think about how you would do it well in advance of
when it
becomes necessary.
<einvent Your rgani'ation:
;. If you were starting your business over again today, what would you do
diAerently%
I. If you were starting your career over again today, what would you get
into, or out of%
H. If your business burned to the ground and you could only oAer one of
your products or services, which one would it be%
L. #ho are your most important customers, the ones who you would
immediately move to take care of, if you were starting over%
8. #ho are your most important people, both inside and outside of your
business%
M. #hat are your most important contacts and business relationships, the
ones you would want most to preserve if you were starting over%
7. If money were no ob1ect, what steps would you take today to reinvent
your business%
Cha#ter Eight 1 Sele!t the <ight Peo#le
&ere lies a man who know how to enlist into his service people better than
himself!
JAndrew 9arnegie ,epitaphK
The people in your company are the most important parts of your business.
All work, all
performance, all results come from them, both as individuals and when they
work
together in teams of some kind. The manager$s output is the output of his or
her team,
and of the individual team members.
In business, people come frst. Tobs, activities and results are only achieved
after
the right people are in place. Tim 9ollins says in his book, )ood to )reat, that
the key to
building a great business is, "frst, get the right people on the bus, and
second, get the
wrong people oA the bus.& Any other approach is bound to fail.
Two Key >ualities to -oo$ For
The best people have two ualities. (irst, they can be counted on to get the
1ob
done, to get it done well and to get it done in a timely fashion. Second, they
get along
well with others. They are good team players.
=ou should apply *ero"based thinking to each person who reports to you on a
regular basis. 9ontinually ask, "'nowing what I now know, would I hire, assign
or
promote this person again, if I had to do it over%&
If the answer is "*o,& then your ne4t uestion is, "+ow do I remove or replace
this
person, and how fast can I do it%&
#hat do you want and need those results to be%
2nce you are clear about the results you desire, set specifc measures of
performance on each 1ob, and each task. +ow will you and the candidate
know whether
or not the 1ob has been done properly% :emember, "#hat gets measured,
gets done.&
And, "If you can$t measure it, you can$t manage it.&
Sele!t the <ight Peo#le:
;. :ank every one in your company on a scale from ;,;<, with ;< being the
highest, on their competence at their 1ob.
I. :esolve to build a team of highly motivated, competent and positive
employees to
help you get the results you need.
H. Think through each new 1ob or hire carefully in advance. #rite out the
description
clearly.
L. Interview at least H candidates for a new position. Interview the candidate
you
like at least H times, in three places, and have him or her interviewed by at
least H
other people.
8. 9heck references carefullyR seek the fatal Caw or weakness that would
make the
candidate unsuitable.
M. +ire only positive, likable peopleR they make the best team players.
7. :esults are everythingR continually emphasiDe and e4plain e4actly what
results are
e4pected from each person.
Cha#ter 9ine 1 3ar$et 3ore E=e!tively
+ecause its purpose is to create a customer, the business enterprise has two
, and only
these two" basic functions- marketing and innovation! .arketing and
innovation produce
results/ all the rest are costs! J0eter EruckerK
All business strategy is ultimately marketing strategy. #henever you are
worried about the
health or future of your business, get back to thinking about marketing and
selling. (ocus
single,mindedly on increasing sales and revenues. 9utting e4penses and
controlling costs
is an ongoing necessity, but you can$t cost,cut your way to business success.
=ou have to
increase cash Cow, and this only comes from selling more of your products or
services.
9o matter how !hallenging or !om#etitive the e!onomy a##ears% as
mu!h as
?@A of your mar$et is still unta##ed& There are almost always hidden
opportunities
around you. =our ability to uncover and take advantage of those opportunities
is the true
test of competence as an e4ecutive or as a business.
)e!ide Who You Are and What You )o
0peciali*ation reuires that you focus on specifc products or services,
specifc
markets or specifc customer needs. =ou must fght the temptation to try to
oAer too many
products and services to too many customers in too many areas. =ou must
specialiDe,
both in your own 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 specialiDe in this area% #hat specifc problem
or need can
you solve or satisfy for your customer% And of all the diAerent results you can
get with
your business, where do you, should you, could you specialiDe%
See Yourself As A (usiness
In your personal life, you should ask the same uestions of yourself as well.
#hat
is your personal area of speciali*ation% In what way is your work 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 rewards possible%
)specially, you should continually ask yourself, $hat is it that I do very, very
well?
#hat is your personal area of e4cellence% #hat could it be% #hat should it
be%
-oo$ing Ahead
3ooking into the future of your business or industry, what new competencies
do you need
to develop to lead your feld in the months and years ahead% #hat additional
knowledge
and skills do you need to acuire% #hat are those few tasks, which, if you did
them in an
e4cellent fashion, would have the greatest positive impact on your career% In
what areas
could be paid the very most for the application of your special talents and
abilities% This
uestion is 1ust as relevant for you as it is for your company.
3ar$et 3ore E=e!tively:
;. Eecide today to dominate your feld, to be the best at marketing and
innovation in your product or service area. #hat is the frst step you should
take%
I. Eetermine your area of specialiDation, by product or service, market or
type of customer. #hat should it be% #hat could it be%
H. +ow do you diAerentiate your product or service from those of your
competitors% In what ways are you superior to anyone else% #hat could it be%
#hat
should it be%
L. #hat are you best market segments% #here are your highest probability
customers% #ho can beneft the most from using what you sell%
8. +ow can you organiDe your business so that you concentrate your
marketing and selling eAorts on those customers who can buy and pay faster
than any
others%
M. #hat additional products, services, knowledge or capabilities will you
need to dominate your markets in the months and years ahead%
7. #hat should you immediately start doing more of, less of, start or stop
to ad1ust to the current market%
Cha#ter Ten 1 Analy'e Your Com#etition
1oncentrate your strengths against your competitors relative weakness!
J-ruce
+endersonK
Know Your Enemy
+ere then is a uestion for you! #ho is your competition% )4actly% =our
choice of
competitor determines almost everything you do in your market, 1ust as the
choice of an
adversary determines everything a general does in the process of conducting
military
operations.
)etermine Their (uying 3otives
2nce you have determined why it is that people buy from you, you must then
ask
and answer, "#hy do people buy from my competitors%& #hat value or
benefts are your
potential customers convinced that they receive when buying from your
competitor rather
than from you%
#hat are your competitor$s key strengths% #hat are his areas of
specialiDation,
diAerentiation, segmentation and concentration% #hat does your competitor
have that
you don$t have% #hat does he oAer that you don$t oAer% #hat is he doing
more of or
better than you% #hat is his uniue selling proposition%
=set Their Advantages
As you study your competitors, look for ways to oAset or neutraliDe the
advantages
their customers perceive them to have. #hat are your competitor$s
weaknesses% +ow can
you e4ploit these weaknesses% #hat do you do better than they do% In what
ways are
your products or services superior to their oAerings% In what areas do you
have a distinct
advantage over your competitors% #hat can you do to oAset your
competitor$s strengths
and ma4imiDe your advantages% +ow can you better position yourself against
your
competitors in a tough market%
The more time you take to study and understand why and how your
competitors
are successful in selling to your customers, the more likely it is that you will
fnd an
opportunity to take away their market share. As Sun TDu says in he 2rt of
$ar, "If you
know both yourself and your enemy, you will prevail in a hundred battles.&
Analy'e Your Com#etition:
;. #ho is your competition for what you sell, with the e4act customers you
are
trying to attract%
I. #hat would happen if you changed your oAerings in such a way that you
targeted
a diAerent group of customers, one that would be easier to sell to%
H. #hy do your potential customers buy from your competitors% #hat
advantages do
they perceive%
L. #hat is your competitor$s uniue selling proposition% #hat special feature
or
beneft does his product or service have that yours does not%
8. In what ways are you superior to your competitors% #hat can you oAer
that they
cannot% +ow can you emphasiDe this advantage in your sales and marketing
eAorts%
M. #here is your competitor vulnerable% +ow could you e4ploit this to your
advantage%
7. +ow could you alter your marketing strategy in such a way that you could
achieve
dominance in a particular area, with a specifc customer or market segment%
Cha#ter Eleven 1 )o It (etter% Faster% Chea#er
he man who comes up with a means for doing or producing almost
anything better,
faster or more economically has his future and his fortune at his %ngertips!
JT. 0aul BettyK
The 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 proftability, your position in the marketplace and
everything else
you accomplish.
=our competitive advantage must be crystal clear to you and to everyone in
your
company, as well as to your prospective customers, 3ack of clear competitive
advantage
leads uickly to diminished sales, loss of market share, lower proftability,
price cutting,
and ultimately to business failure.
Your 5igh Con!e#t
=our business was started because you or your company had an idea for a
product or service that was diAerent or better from other products and
services. It oAered
to satisfy the same need or solve the same problem better, faster or cheaper
than anyone
or anything else then available.
=our ability to diAerentiate your product in the minds and hearts of your
customers is the key to winning them in the frst place, and then keeping
them after the
initial sale. To buy from you, a customer must be convinced that, all things
considered,
your oAering is diAerent and better than anything else that is currently
available at the
same price. Tack #elch was famous for saying, "If you don$t have competitive
advantage,
don$t compete!&
Three Areas of )i=erentiation
To succeed in a tough market, what you sell must be superior to your
competitor$s oAerings in at least three ways. It must "e "etter% faster%
!hea#er% and easier
to use in some way that ma$es it more attra!tive than rival #rodu!ts
or servi!es& It must be
sold more professionally or serviced with greater sensitivity, speed or
eQciency. It must
be better in at least three areas.
2ne of your key 1obs in strategic thinking is to identify the three areas where
you are
better and then to emphasiDe those areas of superiority in all your marketing
and sales
+ow could you achieve operational e4cellence in your business, or some part
of your
business, in such a way that you could be the low,cost provider in your
market% +ow
could you dramatically reduce your costs of doing business and use this low
cost
advantage to increase your sales and proftability%
-ead the Field
The second area where you could achieve competitive advantage is in the
use of
innovative te!hnology leading to the production of high uality products
and services.
9ompanies like .ercedes and :ole4 fall into this category, as does Sony and
3e4us.
9ustomers are willing to pay a premium for a brand name that represents
high uality and
cutting,edge technology. #here are there opportunities for you to distinguish
your
products or services by using your imagination to become the uality leader
in your feld%
Close to the Customer
The third area where you could develop competitive advantage is in being
"close to the
customer.& This reuires that you invest the time to develop high uality
relationships
based on "customer intimacy.& 9ustomers will pay more and remain loyal
longer to
companies that seem to know and understand them better than others.
0roviders of
specialiDed services, such as consulting frms, law frms and accounting frms
fall into this
category.
In what ways could you develop higher levels of trust and credibility with your
customers% #hat could you do to demonstrate to your customers that you
really care
about them and their interests% This strategy can oAer a breakthrough
opportunity,
especially in the sale of e4pensive products and services where resales and
referrals are
possible.
Pi!$ Your Targets
To lead your feld and achieve higher levels of proftability, you have to be
outstanding in one of these three areas and very good in the other two. 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 For Su#eriority
=our area of e4cellence is the key to your success in a competitive
marketplace.
This is where your product or service stands out in comparison to your
competitors. It is a
value or beneft that you oAer that no one else oAers. #ith regard to your
products or
services, what is it% #hat could it be% #hat should it be%
=our area of superiority is defned as an area of performance where your
product
or service is superior to that of your competitors. This performance diAerence
is
signifcant enough that your customer will buy it, and even pay you more for
it. In what
way does your product perform better, in terms of getting results that your
customer cares
about, than your competitors% +ow could you improve the performance of
your products
or services in some meaningful way%
(inally, your uni3ue selling proposition is something that you and only you
oAer
to your customers, and is something that they really care about. *o one else
does as well
as you do in this area. *o one else achieves the same beneft or result. #hat
is your
uniue selling proposition% #hat could it be%
-oo$ Into Yourself
2n a personal level, you must continually ask these uestions of yourself.
#hat is your
personal area of e4cellence% #here are you superior to your competitors%
#hat is your
uniue selling proposition% In what ways do you do your 1ob 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%
0erhaps the most important area of superiority you can develop is your ability
to
do your 1ob uickly and well, in an e4cellent fashion, consistently and
dependably every
time. This is the key to success as an individual in a competitive marketplace.
)o It (etter% Faster% Chea#er:
;. In what ways are your most important products or services superior to
those of
your competitors%
I. #hat is your recogniDed "area of e4cellence%& If you were to conduct a
survey,
what would people say that your company does especially well%
H. In what ways are your products or services faster to acuire, use and en1oy
than
your competitor$s%
L. #hat is your uniue selling proposition% #hat is it that your products or
services
oAer that no other company can match%
8. In what ways are your products or services cheaper to buy and use, or
achieve
superior fnancial results for your customers for the same cost%
M. If you were known for being outstanding in any one area of your product or
service oAerings, what one distinction would have the greatest positive
impact on your
sale and proftability%
7. 3ist the three areas where your products are, or can be, superior to any of
your
competitors. #hat is your plan to achieve this area of market superiority%
#hat should
you do frst%
What )o You SellB
The frst part of the marketing mi4 is your 4roduct or service. Always defne
your
product or service in terms of what it "does& for your customers, versus what
it "is.& +ere$s
the uestion, "Is your product or service, as you are oAering it today, ideally
suited for
your current market and customers%&
5ow 3u!h )o You ChargeB
The second part of the marketing mi4 is your 4rice. Is your price the right
price for what
you are selling% Should you change your price in some way% Should you
increase it,
decrease it, combine your price with other items, or add items to your price%
Should you
change your terms or oAer something diAerent for the same price%
)ou"le Your Pri!eB
Is there any place in your business that
you could increase your prices and still hold onto your market%
5ow )o You Sell ItB
+ow are you currently promoting and selling your product or service% #hat$s
working%
#hat$s not working% Should you change your methods of advertising,
marketing, selling
or acuiring customers in any way%
Sell 3ore Stu=
)specially, should you upgrade and improve your direct selling methods,
people,
presentation, and capabilities%
Is Your Phone <ingingB
)ver after, when I think about the eAectiveness of advertising, I always ask,
"Is
your phone ringing%&
Where )o You SellB
The fourth element of the marketing mi4 is the 4lace. This is the specifc
location where
the sale of your product takes place. #here e4actly do you sell your product
today% Eo
you sell in homes, oQces or in your own retail establishment% Eo you sell in a
particular
city, state or nationwide% Eo you sell in stores or by direct selling or by direct
mail% .ost
importantly, should you change the place at which you oAer your products%
A change in the location where you oAer your product or
service could change the direction of your business. #hat could it be%
E2amine Your Assum#tions
#henever you have diQculties selling a suQcient uantity of your product or
service, you should e4amine all of your assumptions in the areas of product,
price,
promotion and place. =ou should be willing to consider the possibility that
your method
is completely wrong in one or more of these areas.
It often happens that a single change in one of the "0$s& in the marketing mi4
can
change the entire nature of your business, boost your results, increase your
proftability
and move you toward market leadership. 'eep an open mind.
The Answers Are Changing
#hat is the correct marketing mi4 for you to sell the very most at the highest
cost, and
earn the greatest proft% #hat assumptions are you going on that
may no longer be true%
Change Your 3ar$eting 3i2:
C& -e prepared to challenge every aspect of your marketing, especially if it is
not
working as well as before. #hat areas cause you the greatest frustration and
dissatisfaction%
D& #hat e4actly do you sell, defned as what it "does& for your customers,
versus
what it "is%&
6& #hat prices do you charge% +ow could you change the way you charge to
make
buying from you more attractive%
E& +ow do you promote your product% 9ould there be better ways of
advertising
your products or services that would give you better results%
7& +ow do you sell your product or service% Is every person who deals with
your
customers fully trained in every key result area of selling%
:& #here do you sell your product or service% Should you be e4ploring other
locations or methods of sale%
;& Should you change more than one of the elements of the marketing mi4 at
the
same time% 9hallenging market conditions often call for bold departures from
the methods
of the past, especially if they are no longer working.
What Words )o You wnB
Eeliberately or accidentally, each product or service develops a reputation
that
positions it against its competitors. #hat is yours%
Create Your wn Cheat Sheet
+ere is the uestion. #hat words do you own% #hat words should you own in
the
hearts and minds of your prospective customers% #hat words could you own
if you were
to reorganiDe and redirect your marketing eAorts%
As an e4ercise, imagine one of your prospects meeting with one of your
customers. Imagine that your customer called you and asked you what you
would like
him to say to your prospect to convince your prospect to buy from you%
If you could put together a "cheat sheet& with the e4act words or phrases
that you
would like your customer to leave in the mind of 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 customers and potential customers% 2f all the words
and phrases
that customers could use to describe your products and services, and your
company,
which would be the most helpful for 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 organiDation%
Position Your Com#any For Su!!ess
;. #hat is your company$s reputation in your market% +ow do customers and
competitors think and talk about you%
I. #hat words do people use when describing your products or services to
others%
H. If you could "own& certain words that apply to your company, your
products or
services, which words would you choose%
L. #hat words, if they were automatically associated with your company,
would
have the greatest positive eAect on your sales and proftability%
8. #hat changes would you have to make to assure that every customer
contact
reinforced the message that you wanted to send to your customers about
doing business
with you%
M. #hat are the most important promises that you make to your prospects to
get
them to buy from you for the frst time% Eo you keep these promises after the
sale%
7. #hat are the most positive things that your customers say about dealing
with your
company% +ow could create a system to assure that more customers say
these things%
)4amine your complete range of products and services, especially the newer
ones,
and ask, "#hich of these has the potential to be a big seller%& #hat would
you have to do
or invest in o help make it a ma1or source of sales and revenues%
'eep asking yourself, "If I had not already committed time and money to this
product, knowing what I now know, would I start investing in it again today%&
Apply the S-> concept to yourself and your career. =ou have several areas of
talent and ability, core competencies, e4perience, knowledge and education.
#hat are
your cash cows, the skills that are central to your value to the organiDation%
#hat are your "stars,& the emerging areas of activity, or new skills and
knowledge
that can make you e4tremely valuable in the future%
#hat are your potential areas of great success% #hat are the pro1ects,
responsibilities and areas of opportunity, which, if you e4ploit them fully, can
enable you
to move ahead more rapidly in your career%
(inally, what are the "dog& areas of your work life% These are the tasks or
skills
that you may have mastered in the past, but which distract you from your
future. These
are the 1obs and activities that take up a lot of time, but which are nowhere
near as
valuable as other things you could be doing. #hat are they%
)evelo# Strategi! (usiness .nits
;. -egin today to view each product or service as a separate business,
responsible
for generating a certain amount of proft every month.
I. Broup your diAerent products or services by similar characteristics, similar
customers, or similar markets.
H. #hat are the cash cows of your business% #hat are the core products or
services
that are essential to your overall proftability%
L. #hat can you do today to safeguard and nurture your cash cows to assure
that
they continue contributing sales and cash Cow far into the future%
8. #hat are the "stars& of your business% #hat are the products that are
selling well,
increasing in market share, and generating high profts%
M. #hat could you do to increase the sales and proftability of your stars%
7. #hat are the "uestion marks& of your business% #hich of your current
products
or services should you discontinue, knowing what you now know%
What Is To (e SoldB
The frst uestion is, +What is to "e soldB, To answer this correctly, you
have to defne
your product or service in terms of what it does, and how it benefts your
customer. +ow
does it improve his or her life or work% 2f all the benefts that a customer
en1oys from
purchasing your product or service, what is the primary beneft, the one thing
that you
oAer that makes you superior to any other competitor in the marketplace% Eo
you know
the answer to this%
Who Is 0oing To Sell ItB
The second uestion is +(y whomB, #ho is actually going to sell the
product or service
and get the check from the customer% +ow are you going to recruit, train,
manage, feld
and support the sales person% +ow is this salesperson going to uncover the
necessary
leads and get face to face with the prospective customer%
Who Is Your CustomerB
The ne4t part of the uestion is "To whomB,
5ow 3u!h Are You 0oing To ChargeB
Is there any price you would raise, lower or modify in some
way%
Colle!ting Payment
The ne4t uestion is How is it going to be paid for? Eo you reuire
payment
in full, in advance% Eo you reuire a deposit when the sale is made and with
the balance
to be paid at a later time on certain terms% Eo you oAer credit or fnancing%
)specially,
what do your competitors do%
2ften a change in the way you charge, or in your pricing structure, can
dramatically increase your sales. #hat could you do diAerently in today$s
market that
would make it easier or more attractive to buy your product or service%
)elivering The 0oods
The fnal part of the uestion is How is going to be delivered
satisfactorily?
#hat is the e4act process of getting the product or service to your customer
in such a
way, and at such a level of uality, that the customer both buys from you
again and
recommends you to others%
Sell 3ore E=e!tively:
;. #hat is the e4act sales process necessary to sell your product or service,
from the
frst customer contact through to the close of the sale% Eo you know% +ow
could it be
improved%
I. #hat must your prospective customer be convinced of before he chooses
your
product over that of your competitor%
H. If money were no ob1ect, what special results or benefts do you oAer in
your
sales eAorts that make your product more desirable than any other available%
L. #hat is your process for recruiting salespeople% #hat media do you use%
#hat
levels of education and e4perience do you reuire%
8. #hat kind of a compensation system do you have for salespeople% #hat is
it
based on% +ow could it be improved so that it motivates better sales
performance%
M. +ow much of your business comes from referrals from happy customers%
+ow
could you increase the number of referrals you get as a percentage of your
business%
7. #hy aren$t your sales twice as high already% #hat sales eAorts could you
make to
tap into that O<P of the market that has never heard of you%
Follow the Formula
"#hy am I not at that goal already%& #hat is holding you
back% #hat is the constraint, chokepoint or bottleneck that sets the speed on
how fast you
achieve your specifc goals of sales, cash Cow or proftability in your
business%
3et us return to my earlier uestion, "#ould you like to double your sales and
double your income%& If your answer is "yes&, then why haven$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 limiting factor%
Identify Your Personal Constraints
Think about your personal life and goals as will. Ask yourself, "#hat are my
most
important goals% #hy am I not there already% #hat is it within me that is
holding me
back%&
Is it the lack of a particular uality, attribute or skill that sets the speed at
which I
achieve my goals% Is it a particular attitude or belief that is holding me back%
And most
important, what could you do immediately to alleviate your key constraints,
starting today%
Eliminate the <oad"lo!$s:
;. Set clear, measurable goals for sales and proftability. *ow ask, "#hat
determines
the speed at which I achieve these goals%&
I. >se sentence completion e4ercises. Say, "#e could double our sales if it
1ust
wasn$t for..& and fll in the blank.
H. Identify the ma1or block to your achieving your most important goal% +ow
could
you remove it%
L. 3ook within your company for the limiting factors that hold you back. #hat
are
the chokepoints in your business%
8. Assess each person in each key position. Are they competent and capable
of
doing what needs to be done for you to be successful%
M. 2nce you have identifed your key constraint to business success, ask,
"$hat else
is holding us back%& 'eep asking, "#hat else%& until you get to the real
problem.
7. In your own career and personal life, what sets the speed at which you
achieve
your goals% 3ook within yourself for the answers.
3a$e Faster% (etter )e!isions
#henever they bring you a problem
or a uestion, always ask, "#hat do you think we should do%&
<eengineer Your Com#any:
;. 0ractice simplifcation as a way of life. In what areas of work has your life
become
too complicated, and what can you do to get it back under control%
I. 0ractice Dero,based thinking with every step and every activity. If you were
not
now doing it this way, would you start doing it this way again today%
H. Take a single comple4 process or 1ob and make a list of every step from
beginning
to end. +ow could you reduce the number of steps by H<P the frst time
through%
L. #hat tasks or activities could you delegate to someone who can do them
7<P as
well as you%
8. #hat parts of your business could you outsource to companies or
individuals who
specialiDe in that area%
M. #hat parts of your work could you eliminate altogether with little or no
impact on
your bottom line%
7. #hat parts of your personal life do you need to streamline and simplify%
#hen are
you going to do it%
Pum# .# Your Pro/ts:
;. Eo a complete proft analysis on every product and service you oAer. :ank
them
from highest to lowest.
I. Identify the I<P of your products that account for O<P of your sales.
#hich are
they%
H. Identify the I<P of your products and services that account for O<P of
your
profts. Are they the same as your answer to UI%
L. After deducting all direct and indirect costs, which are your most proftable
products or services based on cost and return on investment%
8. +ow much is your time worth on an hourly basis% -uild this cost into
everything
you do to get an accurate measure of costs and proftability.
M. Attribute a percentage of all general and administrative costs to each
product or
service you sell. This e4ercise often turns profts into losses.
7. If your company was facing serious fnancial shortages, which products or
services
would you focus your energies on, and which would you discontinue% Think
about doing
it now.
It Starts From The To#
)ncourage each person to fnd ways to do their 1obs better, faster, and easier.
Allow them the freedom to e4periment with improvements, with no fear of
criticism if
they don$t work. Sometimes the greatest improvements occur as the result of
a series of
small e4periments that were not successful.
=ou should stand back regularly and e4amine every product, service and
process.
+ow could you improve it in some way% +ow could you make it better, faster
or cheaper%
+ow could you get the same or better results faster, or at a lower cost% *ever
be satisfed
or content with e4isting uality levels. Always look for ways to improve upon
them.
-rainstorm with your team regularly to generate ideas to cut costs, improve
uality,
increase sales and boost profts. )ncourage everyone to think, all day long,
about how
they can do their 1obs better. .ake this commitment to continuous
improvement a part of
your corporate culture.
Commit to E2!ellen!e
If everyone in your marketplace referred to you and your oAerings as the
best in the business, what kind of a diAerence would that make in your sales
and
proftability%
#ith that as your goal, what would you have to do, starting today, to assure
that
everyone refers to you as "the best& sometime in the future% #hat could you
do, starting
today, to begin this process% #hat is the frst step you should take%
>uality and Pro/ta"ility
"#hich of these companies do you feel is the best in this particular industry%&
+ere$s the uestion! If such a survey were done among potential customers
for what you
sell, where do you feel your company would rank in such a comparison%
#ould you be
ranked as "the best,& or somewhere lower% #hat could you do to move
higher in the
rankings% #hat one step could you take immediately%
5ow )o Customers )e/ne >ualityB
What )o Customers WantB
Commit to Continuous Im#rovement:
;. +ow do your customers defne uality% #hat is most important to them in
choosing your product or service%
I. +ow do you rank against your competitors on a scale from one to ten% +ow
could
you improve your ranking immediately%
H. Set up a reward system in your company for suggestions and ideas to
improve
uality and achieve greater customer satisfaction%
L. Eo you have uality and performance standards for people, products and
activities
in your company% Eoes everyone know what they are%
8. #hat company do you think is the best in your business, the most
respected and
proftable% +ow could you benchmark yourself against them%
M. #hat one step could you take immediately to improve customer
satisfaction with
your company%
7. #hat could you do personally to upgrade and improve the uality of your
performance in the most important things you do in your 1ob%
)e/ne Your Core (usiness
#hat is your core business% If everything else was stripped away, what would
be left at
your core%
Identify the I<P of opportunities available to you today that can be
responsible for
O<P of your sales and revenues in the years ahead. These will almost always
be
e4tensions of your current business, your core competencies, and your areas
of
e4cellence. =our choice of the opportunities available to you largely
determines the
future of your business. #hat are they%
Fo!us n 8alue
#hat are the I<P of your work activities that account for O<P of your
personal
value and your contribution to your company% If you 1ust doubled the amount
of time you
spend on the I<P of your high value tasks, and discontinued the O<P of low
value/no
value tasks that you do, you could become most of the most productive
people in your
company. These are your core tasks.
#hat are the I<P of problems, aggravations, and irritations that account for
O<P of
your headaches in your work% #ho are the most diQcult people, customers
or situations
that you have to deal with each day% #hat can you do today to minimiDe or
eliminate
them%
-ased on this O</I< analysis, what steps can you take immediately to
improve,
increase, and strengthen your core products, services, customers and
activities% #hat
should you do frst%
Where )o You E2!elB
In what areas of your products and services are you, or could you be better
than
?8P of your competition%
Advan!e Planning
This 1itadel is your core business. #hat is yours% #hatever it is, practice
"Scenario
0lanning& on a regular basis. Ask yourself, "#hat is the worst thing that could
possibly
happen in my market today%&
#hatever your answer is to that uestion, begin making provisions today to
assure
that you will be able to survive, should it occur.
Your Personal Citadel Strategy
As an individual, you must be clear about your personal core competencies,
as
well. +ow could you improve in each one of them% #hat core competencies
will you
need to lead your feld in the years ahead% #hat is your plan to acuire the
core
competencies of tomorrow%
Con!entrate n the Core:
;. #hat is your core business% #hat products and services are most
responsible for
your success today%
I. #hat are your core competencies% #hat is it that your company does
e4tremely
well%
H. #hat are the worst possible things that could happen to your business in
the ne4t
year% #hat are your plans to deal with them, should they occur%
L. #hat are your non,core products, services or activities% #hat would
happen if you
discontinued them entirely%
8. #ho are your core customers, and what are you doing to assure that they
never
leave you%
M. #ho are your core people, the ones who are most important for the
survival and
growth of your business% #hat is your strategy to keep them%
7. #hat are your core functions% #hat are the things you do that are central
to your
1ob% #hat activities are peripheral%
Four Key >uestions
#hen considering buying a product or service, customers have four uestions
that
must be answered before going ahead!
;. #hat does it cost%
I. #hat do I get for the money%
H. +ow fast do I get the benefts you promise%
L. +ow sure can I be that I will get those benefts%
#hichever company or salesperson answers these uestions most
convincingly
wins the sale.
)eliver n Your Promises
"#hat results or benefts do my customers e4pect of my
product or service%& and "+ow consistently do my customers get those
results and benefts
when they buy my products or services%& This is the true defnition of
"uality.&
Vuality can be defned as, "the percentage of times that your product or
service
does what you say it will do, and continues to do it.&
A uality rating of ;<<P, or perfect uality, means that what you sell always
delivers on your promises. A uality rating of ?<P means that your product
gets the
desired or promised results nine out of ten times.
-ittle Things 3ean A -ot
(ederal )4press has determined that if its uality rating was ??.?<P, they
would
make mistakes in the delivery of LL,<<< envelopes a day. At ??.?<P uality,
(ederal
)4press would collapse under its own weight of confusion. That is how
important uality
is in a business.
=our personal success is also determined by how consistently and dependably
you
perform and deliver on your responsibilities and promises. =ou should
continually ask
yourself, "#hat results are e4pected of me%&
=our level of eAectiveness is always defned by others, by what they need
from
you. 3eaders are always asking, "#hat does this situation need of me%& 2nce
they are
clear, they concentrate their energies in those areas.
Ask yourself, "2f all the results I can accomplish, what are the most valuable
and
important in terms of my rewards and my future%&
Im#roving Your A"ility to 0et <esults
+ere are seven of the best uestions you can ask and answer to improve your
ability to get results!
;. "#hy am I on the payroll%& #hat e4actly have you been hired to
accomplish%
.ake sure that what you are doing every day is the answer to this uestion.
I. "#hat are my highest value tasks and activities%& 2f 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 yourself and your company%
H. "#hat are my key result areas%& #hat are the core competencies and key
tasks
that you must absolutely, positively do in an e4cellent fashion to produce the
most
important and valued results e4pected of you% :esolve today to become a
"do,it,toyourself,
pro1ect.& (or the rest of your career, dedicate yourself to continually learning
and
improving in those areas where top performance is most vital to your
success. Betting
better at your key tasks is one of the best time saving techniues of all.
L. "#hat can I and only I do that, if done well, will make a real diAerence%&
There is always something that only you can do that can make a signifcant
diAerence to
your life and your work. If you don$t do it, it won$t get done. *o one else will
do it for
you. -ut if you do it, and you do it well, it can make a signifcant diAerence.
#hat is it%
8. "#hat one skill, if I developed and did it in an excellent fashion, would
have
the greatest positive impact on my career%& There is always one skill that if
you developed
it and did it well, would have a greater and more positive impact on your
career than any
other single skill. =our 1ob is to identify that skill and then put your whole
heart into
becoming absolutely e4cellent in that area, whatever it is.
M. "#hat one result, if I achieved it consistently for my customers, would
most
satisfy those customers and bring me the greatest number of additional
customers%& #hat
must your customer be absolutely convinced that he or she will receive from
you in order
to buy your product or service and to recommend it to his or her friends% +ow
could you
improve your uality and service in that area%
7. The fnal uestion for personal success, number seven, is this! "#hat is the
most valuable use of my time right now%& >se this uestion 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, what one thing could you do
that
would contribute more value to your life and work than any other single task
or activity%
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Whatever your answer% #ut mastery of that tas$ at the to# of your
list of #riorities&
)edi!ate yourself to getting "etter and "etter doing the one thing
that !an ma$e more of a
di=eren!e than anything else& This is the $ey to getting su#er"
results at every stage of
your life and !areer&
n!e more% here then are the DC $ey ideas in the Tur"ostrategy
#ro!ess:
;. Start Where You Are! Eo a complete and honest analysis of your
business as it is
today, including the current status of your sales, revenues, proftability and
the market
situation around you.
D& )raw A -ine .nder the Past: Apply Dero based thinking to every part of
your
business. If you were not doing it today, knowing what you now know, would
you get
into it again today%
6& Condu!t A (asi! (usiness Analysis: )4amine your products, services,
processes,
and activities as if you were looking at them for the frst time. -e prepared to
ask yourself
the "brutal uestions& about each one of them.
E& )e!ide E2a!tly What You Want: Set clear, written, measurable goals
and
ob1ectives for yourself in each part of your business.
7& )esign Your Ideal Future: 0ro1ect forward H,8 years and imagine that
your
business was ideal in every respect. #hat would it look like% #hat could you
do, starting
today, to make that future vision into a current reality%
:& Create A 3ission Statement: Eecide e4actly what it is you want to
accomplish
for others with your business. .ake it measurable. .ake it e4citing. Share it
with
everyone.
;& <einvent Your rgani'ation: Imagine starting your business or career
over again
today, with your present knowledge and e4perience. #hat would you do
diAerently%
?& Sele!t the <ight Peo#le: (ully ?8P of your success in business will be
determined by the people you choose to work with and for. Take the time to
make good
personnel decisions.
I& 3ar$et 3ore E=e!tively: Think through every part of your marketing
strategy by
applying the four principles of specialiDation, diAerentiation, segmentation
and
concentration to every product and service.
C@& Analy'e Your Com#etition: Eecide e4actly who you are competing
against, and
why it is that your prospective customers prefer to buy from them. +ow could
you oAset
this perceived advantage%
CC& )o It (etter% Chea#er% Faster! 9ontinually seek ways 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$eting 3i2: Imagine being your own management
consultant
and asking yourself hard uestions about the appropriateness of your
product, price,
place and promotion in today$s market.
C6& Position Your Com#any For Su!!ess! Eetermine how you want to be
thought
about and talked about by your customers and prospective customers. #hat
are the very
best words they could use to describe you%
CE& )evelo# Strategi! (usiness .nits: Eivide your products and services
into one
of four categories! cash cows, stars, 3uestion marks and dogs. .ake one
person
responsible for sales and proftability for each product or group of products.
C7& Sell 3ore E=e!tively: (ocus single,mindedly on upgrading the uality
of your
sales eAort. +ire more selectively, train more thoroughly, and manage more
professionally. Sales are the lifeblood of the business.
C:& Eliminate the (ottlene!$s: Identify the factors that determine how
fast you
achieve your goals of sales and proftability. 9oncentrate on alleviating these
bottlenecks
in every part of your business.
C;& <eengineer Your Com#any: 9ontinually seek ways to streamline and
simplify
the process of producing and selling your products and services. 3earn to
delegate,
outsource, downsiDe and eliminate the comple4ity of everything you do.
C?& Pum# .# Your Pro/ts: )valuate every product and service to
determine e4actly
how much net proft you are actually earning from each item you sell. :esolve
to
discontinue products and services that are not as proftable as others, and
channel more
resources into those products that are the mainstays of your business.
CI& Commit To Continuous Im#rovement: Install the 'aiDen process of
"continuous betterment& into your company. (ind out how your customer
defnes
"uality& and then continually strive to e4ceed e4pectations.
D@& Con!entrate n The Core: Identify the most important products and
services
you oAer, and then focus on getting better and better selling more and more
of them.
0robably O<P of the market potential for your core products has not yet been
tapped.
I;. Fo!us n <esults: 9oncentrate your best energies and resources on
getting the
most important results possible for your company. Set priorities in every area
and then
work single,mindedly to complete the few tasks that are more valuable than
everything
else put together.
The most important part of the Turbostrategy is not what you learn, but the
actions you
take, and how uickly you take those actions. There is a direct relationship
between how
fast you move on a new idea and how likely it is that you will ever move on a
new idea.
:esolve today to become intensely action,oriented for the rest of your career.
Tust do it!
The Tur"ostrategy Pro!ess