Unlimited Opportunity

What could you do to respond more efectively to them?

Learn Korean faster, Networking with O!" mem#ers, $roduce%sell Learn
Korean Now product&
Cash Flow Is Everything
Look at your cash 'ow and levels of pro(ta#ility from each product, service
and
area of activity)
*re your pro(ts going up or down?
Up
*re they on #udget or going sideways?
Look at the percentages) *naly+e your return,on,e-uity, return,on,
investment,
and return,on,sales)
*re they increasing or decreasing?
"f your goal is to #uild a great company, why isn.t your company already
great?
/ore capital re-uired for 0mpower network
Which of your products or services is selling well today?
/y sales skills and 0mpower Network
Which of your products and services are the most pro(ta#le?
/y sales skills and 0mpower Network
Which ones are doing poorly?
Which ones do you lose money on?
1rinking too much alchohol
"s your current #usiness situation, positive or negative, in any area?
/ore capital re-uired
2emporary or part of a long,term trend?
Longterm
3ow can you know for sure?
*ction
3ow can you (nd out?
4e5oin 0mpower Network with 6"/%7ick 8tri+heus9Like 3o##s9$ro5ect *WOL
What should you then do?
/ake :;<,<<< (rst =< days
Clarity Is the Key
Why has your #usiness #een successful in the past?
/y study of #usiness
What have you done well in the past that has #een responsi#le for your
success to date?
/y study of #usiness, marketing and sales)
What are the most important skills and competencies that your company
possesses today?
/y study of #usiness, marketing and sales)
What are the very #est products and services that you ofer right now?
/y study of #usiness, marketing and sales)
Look at the people around you) Who are your most valua#le people?
*>3 8hoppette and University of /aryland 6*3 money
Who are no longer as valua#le as #efore?
Who represents a net loss or detriment to your #usiness?
6e prepared to ask and answer the #rutal -uestions)
The Customer Is the King
Who are your #est customers today?
Koreans, single males, and #usiness opportunity seekers
What and where are your #est markets?
*sia and the internet
What do your customers like the most a#out what you do for them?
/ake them happy
What do they compliment the most of what you ofer or do for them?
/ake them happy, talk alot and very smart in #usiness and life
What is your num#er one area of customer satisfaction?
8ales and presentation
What do your customers like the least a#out what you do?
When "?m angry or tired
What do they complain a#out the most?
Not having what they want availa#le for purchase
What is it that you sell that your customers and potential customers prefer to
#uy somewhere else, rather than from you?
Identify Your Personal Strengths
Look at yourself honestly) What are your own personal #est skills, -ualities
and a#ilities?
0nglish, 8tudying, strategic planning, marketing and sales
What are the most important things that you do at work, and for your
company?
1aily facility improvement, strategic planning, marketing and sales
What are the most valua#le contri#utions you make personally to your
#usiness?
"ncrease sales, customer service, and customer retention
Start Where You Are:
;) What is working the very #est in your #usiness today?
8ales and marketing
What parts of your #usiness make you the happiest?
/arketing
@) What.s not working in your #usiness?
Waiting on capital
What causes you the most aggravation and frustration?
Waiting on capital
=) What are your most important products and markets?
/e Asales%marketing%english skillsB, 0mpower Network in th U8%8outh
Korean markets
What accounts for the largest portion of your revenues?
*>3 and 0mpower Network
C) Who are your most important people?
*>3 and 0mpower Network
Who are the people who account for most of your results?
*>3 and 0mpower Network
D) What are your special talents and skills?
What is it you do that accounts for most of your success?
E) What are the ma5or changes taking place in your market?
What changes should you make to compensate for them?
F) What are your most treasured assumptions a#out your people, customers,
markets,
products, services and yourself?
What if one of them wasn.t true?
What would you do then?
Imagine Starting ver
Gero,#ased thinking re-uires that you apply this HscraperI mentality to every
part
of your #usiness) Jou do this #y asking this key -uestionK
Is there anything that you are doing in your business that,
knowing what you now know, you wouldnt start up again today, if you
had it to do over?
"nstead of struggling to determine how you might modify, change, (L, revise,
improve or alter some #usiness function, you instead ask,
H"f " was not doing this today, would " start it up again today, knowing what I
now know?
2o start with, is there any product or service that you would not #ring to the
market, ofer or sell, if you had to do it over again, starting today?
8ince M<N of your products and services are pro#a#ly going to #e o#solete
within the neLt D years, there
may #e products and services you are ofering today that, #ecause of
changed market
conditions, you would not introduce again today, if you had to do it over
again, knowing
what you now know) 2hese products or services are prime candidates for
discontinuation
or divestiture)
"s there any person in your #usiness that you would not hire, assign, appoint,
go
to work for, or #ecome associated with if you had to do it over again today?
/ost of your pro#lems in #usiness will come from attempting to work with or
around a diOcult person,
who knowing what you now know, you wouldn.t get involved with again
today)
Who does this #ring to mind?
"s there any supplier, #anker 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
"s there any customer that you are selling to or servicing today that, knowing
what you now know, you wouldn.t take on again as a customer?
/any companies are asking this -uestion a#out their diOcult customers and
deciding to let them go)
8ometimes, one of the smartest things you can do is to H(re your customers)I
0ncourage
them to go and deal with someone else who would #e more appropriate for
them)
Assess Your (usiness #erations
"s there any expenditure in your #usiness that you would not authori+e again
if
you had it to do over?
"s there any process, procedure or activity that, knowing what you
now know, you wouldn.t start up again, or get into, if you were making the
decision
today, knowing what you now know?
"s there any advertising, marketing or selling methodology or eLpense that
knowing what you now know, you wouldn.t start up again today, if you had to
do it
over?
Keep asking, HWhat.s working?I
and HWhat.s not working?I
Pay Attention To The Indi!ators
Jou can always tell when you are in a +ero,#ased
thinking situation #ecause it
causes you continuous stress, aggravation,
frustration, negativity and unhappiness) Jou
think a#out it continually) Often you #ring it home at
night and discuss it at the family
dinner ta#le) 8ometimes it will even keep you awake
at night)
Whenever something is not working, or not working
out the way you eLpected,
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?
"f the answer is HNo&I then your neLt -uestion is
How do I get out and how fast?
The )e!ision Is Inevita"le
3ere.s an important point) "f something is not working, eventually you will
have to
get out of it) Jou will have to let the person go, discontinue the product or
service,
eliminate the activity or eLpense, or change the method of operation) "t is
only a matter of
time) "t is not going to get #etter all #y itself) *nd every single eLecutive who
(nally
decides to get out of an unhappy situation says afterwards, H" should have
done this a
long time ago&I
A##ly This A##roa!h Continually
Pra!ti!e 'ero*"ased thin$ing as a +go forward, method for the rest
of your
"usiness !areer& A##ly it to everything you do% to every #art of your
"usiness% every single
day& A##ly it to every #rodu!t% servi!e% #ro!ess% #ro!edure and
#erson and "e sure that%
$nowing what you now $now% you would get into it again
today if you had to do it over &
If not% get out% and as fast as you !an&
)raw A -ine .nder the Past:
;) "magine starting over again in every part of your #usinessP is there
anything you
are doing that, knowing what you now know, you wouldn.t start up again
today?
@) "s there any person in your #usiness 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?
=) "s there any product or service that, knowing what you now know, you
wouldn.t
#ring to the market again today?
C) "s there any investment that you have made that, knowing what you now
know,
you wouldn.t make again today?
D) "s there any #usiness activity or process that you are using that, knowing
what you
now know, you wouldn.t start up again today?
E) "s 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?
F) "s 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
2he starting point of #usiness analysis is for you to askK
HWhat #usiness am " in?I
What #usiness are you really in?
What #usiness are you really, really in?I
" soon reali+ed " was in the Hgoal
a!hievement "usinessI A/e 2OO&
Q04!B)
/y #usiness was helping people to
achieve their personal and #usiness
goals faster #y providing them with
practical ideas
that they could use immediately to get
#etter results)
2his insight led me from talks and
seminars into audio and video
recording,
#ooks, training programs and "nternet
#ased e, learning on a variety of
su#5ects, including the development
and presentation of the 2ur#ostrategy
$rocess)
The Customer As Center#ie!e
HWho is my customer?I
Who is the person who #uys from you today? 1escri#e your customer in
detail)
What is the age, income, education, position, attitude, location and interest of
your ideal customer?
/any companies are not eLactly sure of the answer to this -uestion) 2hey
have at #est an
unclear picture of the psychological and demographic characteristics of their
customers)
Who will your customer #e tomorrow, if current trends continue?
Who should your customer #e, if you want to #e successful in the markets of
tomorrow?
Who could your customer #e if you were to change, improve or upgrade your
product or service
oferings?
)etermine What You Sell
Jour neLt -uestion isK HWhy does my customer #uy?I
What value, #ene(t, result or diference does your customer seek or eLpect
to en5oy as a result of doing #usiness
with you?
Of all the various #ene(ts that your products or services ofer your
customers,
what do your customers consider to #e more important than anything else?
1o you know?
Jour a#ility to de(ne and promote this uni-ue #ene(t is the real key to
competitive
advantage and market success) Jou neLt -uestion isK
HWhat do we do especially well?I
What do you do #etter than any of your competitors?
Where are you superior?
ustomers only #uy from a particular company #ecause they feel that, in
some way, that company ofers something
that is superior to that of any other ofering)
What is your area of eLcellence?
Rack Welch of !eneral 0lectric was famous for saying, H"f you don.t have
competitive advantage, don.t compete)I 3is philosophy was that !eneral
0lectric would
#e num#er one or num#er two in every market segment in which they
competed, or they
would get out of that market)
*re you num#er one or num#er two in your market?
an you #e?
What is your plan to achieve this market position?
)e/ne Your Com#etitor
2he neLt -uestion, which we will deal with eLtensively in hapter ;<, isK
HWho is your competition?I
Once you have identi(ed your competition, you must ask,
HWhy does your potential customer #uy from your competition, rather than
from you?I
What value or #ene(t does he perceive that he receives from someone else
that he does not feel he
receives from you?
3ow could you ofset this perception?
Set Clear 0oals
"n performing an eLamination of your #usiness, you must ask continually,
HWhat are my goals?I
What are you trying to accomplish?
"f you are clear a#out your goals, what is holding you #ack from achieving
them?
Jou need clear, written, measura#le, time,#ounded goals for every part of
your
#usiness and personal life) Jou need short,term, medium,term and long,term
goals) 0ach
goal must #e in writing, with plans for its accomplishment) Jou can.t hit a
target that you
can.t see) *naly+e everything you do in the course of a day or a week)
What are the @<N of your activities that could account for M<N or more of
your results?
8ometimes, 5ust ;<N of your activities, if you were to pursue them
aggressively, could account for S<N of your
results)
What might they #e?
(e!ome A!tion*riented
What actions should you take immediately in response to the answers to
these
-uestions?
What is the very (rst thing you should do right now to increase your sales
and
improve your market position?
*nother good -uestion you should ask yourself isK
HWhy am " in #usiness at all?I
Why do you eList?
What social purpose does your company serve?
What loss would occur to society if you ceased to do #usiness altogether?
"magine that you had to go in front of a government tri#unal each year to
5ustify
your continued eListence)
What would you say to the tri#unal in terms of how you serve, help, or make
a
diference in the lives or work of your customers to 5ustify staying in
#usiness?
2hese are key -uestions that you need to ask and answer for your #usiness
on a
regular #asis) Jou should ask and answer these -uestions for yourself, as
well) "f you are
unclear or inaccurate in your answers to any of them, the health of your
enterprise could
#e in 5eopardy)
Condu!t A (asi! (usiness Analysis:
;) What are your goals for your #usiness?
What are you trying to accomplish?
@) Who is your ideal customer?
1escri#e him or her accurately)
=) Why does your customer #uy from you?
What special #ene(ts or advantages do you ofer that your competitors
don.t have?
C) What #usiness are you really in?
1escri#e your #usiness in terms of what you do for your customer, what
results you get)
D) What are the @<N of your activities that could account for M<N of your
results?
E) What is your competitive advantage, your Harea of eLcellence?I
"n what ways are you superior to S<N or more of your competitors?
F) What speci(c, measura#le actions should you take immediately in answer
to the a#ove -uestions?
Cha#ter Four 1 )e!ide E2a!tly What You Want
he world has the habit of making way for the man whose words and actions
show that
he knows where he is going! ANapoleon 3illB
2ur#ostrategy #egins with your deciding eLactly what you want to accomplish
in
the key areas of your #usiness life) Once you know your goals in each area,
you can then
decide upon the #est steps you can take to get there)
The 0SPA 3odel
Jou can use the !O8$* /odel as a guide for strategic planning) 2hese (ve
key
thinking tools form the #asis for successful #usiness operations)
(egin With The End In 3ind
2he (rst letter, H!I stands for 0oals) 2hese are the ultimate results that you
want
to achieve) Jour goals are the end targets that you aim at throughout your
#usiness year
or planning period) Jour goals are your sales, pro(ts, growth rate, market
share, or
percentage of return on assets, e-uity, investment or sales) !oals are always
measura#le)
What are yours?
Ste#s on the Stair!ase
2he second letter, HOI stands for "4e!tives) 2hese are the steps you will
have to
take to achieve your goals) 2hey are like the rungs on the ladder to get to the
top)
Jour #usiness o#5ectives can #e speci(c rates of return from advertising,
levels of sales of
certain products and services, num#er of items shipped and #illed, monies
collected and
cost levels for certain activities) * lower defect rate or a higher sale amount
per customer
can #e o#5ectives on the path to achieving the main corporate goals) What
are your
interim o#5ectives?
5ow to 0et There
2he letter H8I stands for Strategies) 2hese are the diferent approaches that
you
can take to achieve your o#5ectives and reach your goals) >or eLample,
achieving a
speci(c level of pro(ta#ility will re-uire producing and selling speci(c
-uantities of
products or services to a speci(c market in a speci(c way) 2here are many
diferent ways
to go a#out accomplishing these o#5ectives) 2he way you choose is your
strategy, and
may determine the success or failure of your enterprise)
1o you produce, market, sell, deliver yourself, or do you outsource some part
of
the process? 1o you sell direct, via retail, direct mail, catalog or "nternet? 1o
you charge
more, charge less, up,sell, cross,sell or discount? 1o you enter certain
markets and
a#andon others? What is your strategy? "s it working?
Planning For Su!!ess
2he letter H$I stands for Plans) 2hese are your #lueprints for achieving your
goals) Jour plans are composed of step,#y,step lists of eLactly what you will
do, day #y
day, to get from wherever you are to wherever you want to go) $lans are
always #roken
down #y se-uence and priority)
8ome things have to #e done before others can #e done) 8ome things are
more important
than others in achieving the goal or o#5ective) When your plan is organi+ed #y
se-uence
and priority, you can accomplish much more in less time)
6usiness life consists almost entirely of pro5ects, one after the other) * pro5ect
can
#e de(ned as a multi"task #ob, a 5o# made up of many small 5o#s, each of
which has to #e
done properly to complete the larger task) Jour a#ility to plan, organi+e and
complete
multi,task 5o#s, ever larger and more compleL, is the most important single
element of
your success, in any (eld)
)evelo# a (ias for A!tion
2he last letter in the !O8$* process, H*I, stands for A!tions) 2hese 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)
0very important task must #e clear, measura#le and time #ounded) "t must
#e assigned to
a speci(c person who is -uali(ed to perform the task correctly, on time and
on #udget)
$hat gets measured gets done!
Fo!us on Pro/ta"ility
2he central purpose of 2ur#ostrategy is to #oost your cash 'ow and pro(ts,
and
to increase your return on the money invested in your #usiness) 2he aim of
strategy is to
generate a higher level of cash 'ow and pro(ta#ility than you would reali+e
without the
strategy, or with your previous strategy) "n short, it is to make more money
than you are
making right now from the way that you are doing #usiness today)
2he essential resources of people, money and talent that you need to
succeed in
your #usiness are always limited) 2hey must #e focused and concentrated for
maLimum
results) 2his is what a good strategy ena#les you to do)
Four Ways to Im#rove Your (usiness
8etting strategy re-uires making hard decisions in four areasK >irst, you must
decide what you are going to do more of)
What.s working?
What is selling well?
What products, services and activities are the most pro(ta#le?
8econd, you must decide what you are going to do less of)
What.s not working?
What contri#utes very little to growth and pro(ta#ility?
What should you discontinue or eliminate #ased on the realities of today.s
market and today.s customers?
What can you do to reduce costs in areas where they contri#ute very little to
results?
2hird, what are you going to start doing that you.re not doing today?
What new products, services or activities should you introduce if you want to
increase your sales and
pro(ta#ility, or improve and streamline your activities?
>inally, what are you going to stop doing altogether?
4emem#er, the critical resources of time and money are always scarce) 2he
only way you can improve results is
#y discontinuing certain activities altogether) Jou can then channel those
resources into
areas where they yield higher levels of #usiness results)
Clarity is the key to strategic success) 2he more time you take to #e
a#solutely
clear a#out who you are, and what you want to accomplish, the more
successful and
pro(ta#le you will #e)
)e!ide E2a!tly What You Want:
;) What are your speci(c, measura#le long,term goals for sales and
pro(ta#ility in
your #usiness?
@) What are the speci(c ob#ectives of sales, staOng, production, delivery and
customer development that you will have to achieve to accomplish your
goals?
=) What are the various ways that you can meet your o#5ectives and achieve
your
goals?
What is the #est strategy for you in today.s market?
C) What should you do more of and really focus on to increase your sales and
pro(ta#ility?
D) What should you do less of, #ased on your current eLperience?
What.s not working?
E) What should you start doing that you are not doing today?
What opportunities are availa#le to you?
F) What should you discontinue, and stop doing altogether, so that you can
free up
resources for more pro(ta#le activities?
Cha#ter Five 1 )esign Your Ideal Future
$e have been endowed with the capacity and the power to create desirable
pictures within
and to %nd them automatically printed in the outer world of our
environment! ARohn
/c1onaldB
8ome time ago, " conducted a strategic planning session for the senior
eLecutives
of a :;F@ #illion dollar company) 2he organi+ation was going through a period
of
considera#le tur#ulence, change, competition and new government
regulation) 2here had
#een lay,ofs, (rings, downsi+ing and divestments) /y clients were the top
eLecutives
who had survived the recent turmoil, and the #lood letting was not yet over)
"n these
circumstances, they were #oth worried a#out the future and distracted in the
present)
Create A Five Year Fantasy
2o get them centered and focused, " #egan the strategy session with a
process that
" call +Ideali'ation&, "n this process, which you can use yourself, " had the
mem#ers of
the top team create a H(ve year fantasy)I
HLet us put aside the current situation for the moment,I " suggested)
H"nstead, tell
me what this company would look like (ve years from now if it was perfect in
every
respect?I
2his eLercise forced them to take their attention away from the pro#lems of
the
present and focus their thinking on the possi#ilities of the future)
*s we went around the room, each person contri#uted an idea a#out what
the
company would look like if it were perfect) " wrote each idea on a 'ip chart
and taped
the pages onto the walls where everyone could see them) "n less than half an
hour, we
generated @F ideal descriptions)
We then voted on these ideali+ed goals and organi+ed them #y priority) We
ended up
with a series of clear o#5ectives, including Hhighly pro(ta#le, tremendous
market
reputation, high stock price, top leadership, fa#ulous customer service, great
place to
work, #est management, rapid growth rate and top reputation in the
industry,I among
others)
Thin$ In Terms f Possi"ilities
" then asked them, H*re these goals possi#le?I One #y one, they agreed that
all of
these goals were possi#le in (ve years) 2hey might not #e achieva#le in one
or two years,
#ut in (ve years, every one of them could #e accomplished with will and
determination)
We came out of that session with everyone revitali+ed and committed to
working
on achieving one or more of those (ve,year fantasies) Over the neLt two
years, the
company completely reorgani+ed) 2hey did more of some things and less of
others) 2hey
started doing things that they had not done in the past, and they stopped
certain activities
altogether) 2hey took complete control of their corporate destiny and
changed it)
$eter 1rucker once wrote, HWe greatly overestimate what we can accomplish
in one
yearP #ut we greatly underestimate what is possi#le for us in (ve years)I
Thin$ A"out The Future
Future*orientation is a key element of strategic planning and strategic
thinking)
"t is a ma5or responsi#ility of leadership and top people in every area) Only
the leader can
think a#out the future) Only the leader can plan for the future) 2here is no
one else in the
organi+ation who can do it, and if the leader does not think a#out and plan for
the future
as an ongoing part of his 5o#, it will not #e done) *s they say in *laska, HOnly
the lead
sled dog ever gets a diferent view)I
3ow often and how well the top people in the company think a#out the future
largely
determines the success or failure of the #usiness) H"f you don.t know where
you.re going,
any road will take you there)I
2he development of the -uality of future,orientation re-uires that you
continually
create an ideal image of your company some time in the future) You #ro4e!t
forward in
your mind 6*7 years and imagine that your !om#any is #erfe!t in
every res#e!t& You
de!ide e2a!tly how mu!h you would "e selling and earning at that
time& You imagine
your ideal sto!$ #ri!e% your ideal re#utation in the mar$et% your ideal
wor$ situation and
your ideal human environment&
(a!$ From The Future Thin$ing
Once you have a clear picture of your
ideal future, you then return mentally
to
your current situation and think a#out
what you would have to do, starting
today, to turn your future vision into a
current reality) 2his is called, H#ack
from the future thinking)I
/ake a list of all the things that would
have to happen for you to reali+e your
fantasy sometime in the future) "t is
ama+ing how your perspective
changes when you
look #ack from the future, eLactly as if
you were looking #ack from the top of
the
mountain to yourself down in the
valley, and seeing the eLact route you
will have to
follow to get to the top)
-eaders 5ave 8ision
"n ==<< studies of leaders reviewed #y Rames /ac$herson, 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) Leaders have visionP non,
leaders do
not)
2o #ecome a visionary re-uires that you develop the a#ility to imagine,
de(ne,
articulate, share and inspire other people with an eLciting picture of the
future) Jou get
everyone in your #usiness committed to ful(lling this vision, and to working
toward it
every day) 2his is the key to leadership, and to #uilding a great company)
*ristotle wrote, +We "e!ome what we re#eatedly
do&, Jou #ecome a leader #y thinking
the way leaders think, #oth in your #usiness and in your personal life) Jou
#ecome a
leader #y thinking a#out the future, and how you can make it a present
reality)
9ow% 3ore Than Ever
6ut it is in times of rapid change, and tur#ulence in the market, that an
eLciting
vision of the future #ecomes more important that ever #efore) * vision can
#ecome the
force that #inds people together into a solid team) "t can give meaning and
purpose to
work, even when times are tough and pay increases are not possi#le)
2here are many ways you can approach the development of a vision for your
organi+ation) Perha#s the very "est vision for your !om#any in!ludes
two $ey
!om#onents& First% it is fo!used on your !ustomers and on doing
something for them that
!hanges and im#roves their lives or wor$ in some way& Se!ond% it
!ontains a !ommitment
to excellence % to "e the very "est at doing what you do for your
!ustomers& These are the
$eys to vision&
Jour vision is to H#e the #est&I at the most important thing that you do for
your
customers) Jour vision is to serve your customers in such a way that you are
seen as
superior in a particular product, service or activity) "magine that you could #e
known as
outstanding in any one thing that you do for your customers) What would it
#e? Jour
answer can #e the starting point of a vision for your #usiness that changes
your future
completely)
Your Personal 8ision
Jou need a vision for yourself as well) $ro5ect forward D years in your
imagination) "f your future were perfect in every way, what would it look like?
"f your
income, your position in your company or (eld, your family life, your health,
your 5o#
and every part of your life were ideal in every way, how would it #e diferent
from today?
Once you are clear a#out your vision, for yourself and for your #usiness, the
only -uestion you ask is,
&ow do I make it a reality?
2op people think continually in terms of how? 2hey think in terms of taking
action, of what can #e done)
Once you have clari(ed 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) Jou take complete control of your destiny) *s 1rucker wrote,
H2he very
#est way to predict the future is to create it)I *nd the starting point is vision)
)esign Your Ideal Future:
;) What is your vision for your company? $ro5ect forward and imagine that
your
#usiness was ideal in every way) What would it look like?
@) What is your vision for yourself? "f your life and career were ideal in every
way,
what would it look like?
=) "deali+e in each area of your #usiness) "f your products, services, sale and
pro(ta#ility were perfect, what would they look like?
C) "deali+e with regard to your people) "f your staf were ideal in terms of
skills,
a#ilities, personalities and results, how would they #e diferent from today?
D) "magine that a ma5or maga+ine was going to write a story a#out your
company)
What would you want them to say?
E) $ro5ect forward (ve years and then look #ack to today from that vantage
point)
What would you have to change today to create your ideal future?
F) "n what one area would it #e most helpful to sales and pro(ta#ility if your
company were widely known as Hthe #est?I What steps could you take
immediately to
#egin earning that reputation?
Create A 3ission Statement:
;) 1etermine your personal reasons for doing what you do) What gives you a
sense
of meaning and purpose in life?
@) 1ecide upon the =,D key values upon which your company is #ased)
"nvolve other
people in the discussion)
=) 1e(ne the actions and #ehaviors that people will engage in, #oth inside
and
outside the company, that are consistent with your values)
C) 1esign a mission statement, an ideal description of what your company
wants to
accomplish for its customers sometime in the future)
7& Write out a list of your values, and what they mean, plus your mission
statement,
and share them with your staf and customers)
:& reate a personal mission statement for your career) What do you want to
accomplish, and how do you want to #e known?
;& reate a mission statement for yourself and your family) What 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!
A3avelock 0llisB
Rack Welch of !eneral 0lectric once said, H"f the rate of change outside your
organi+ation is greater than the rate of change inside your organi+ation, then
the end is in
sight)I
"n times of tur#ulence, you should #e prepared to reinvent your #usiness as
often
as necessary as your eLternal world changes)
*s an eLercise, imagine that you were starting your #usiness over again
today)
What would you get into, or not get into?
(undle of <esour!es
>or greater perspective, stand #ack and view your #usiness as a bundle of
resources and
capa#ilities, like a (re hose of talent and a#ility that can #e aimed in many
directions to
achieve diferent results) "nstead of limiting yourself to seeing your #usiness
as an
organi+ation that is designed to perform speci(c functions, producing and
selling certain
products and services, think of it as #eing capa#le of doing a variety of things
completely
diferent from what you are doing today)
The 0reat Fire
*s you think a#out reinventing your #usiness, imagine that your company
#urned
to the ground while you were away) When you arrived at the scene, you found
that all
your staf were safe and standing around in the parking lot)
*s it happens, there is unoccupied oOce space availa#le across the street)
Jou
can immediately move into the new space and start your #usiness anew)
3ere is the
-uestionK Which of your products and services would you #egin producing
and
distri#uting right away, and which ones would you not start up again,
knowing what you
now know?
E2amine Every <elationshi#
"f you were starting your #usiness over again today, completely free from any
encum#rances of the past, which customers would you call (rst, and which
ones not at
all? Which vendors, suppliers, #ankers or other people would you immediately
get in
touch with, and who would you call later, if at all? What would you do (rst?
What would
you do second? What would you not start up again, knowing what you now
know?
<einvent Your Sta= <elationshi#s
Now, let.s go #ack to the parking lot) Let us assume that all of your people
are
safe and standing around waiting for instructions) Which of them would you
take across
the street with you to the new #usiness, and which ones would you leave in
the parking
lot? Who would #e the (rst and most important person whose services you
would want to
secure? Who would #e the second most important? Who would #e third? *nd
so on)
E2amine Your rgani'ation
"f you could reinvent your #usiness, what would you do more of? What would
you
do less of? What would you start doing that you are not doing today? What
would you
stop doing altogether?
"n reinventing your organi+ation, ask yourself, HWhat are my most important
talents, skills, a#ilities and core competencies, and what else could " do with
them? Who
are my #est people and what else could they do? Keep thinking a#out how
you would
reinvent your #usiness if you were starting over) 2his will keep you on the
cutting edge of
creativity and innovation)
Thin$ In Terms of E2!ellen!e
2he key -uestions in reinvention are, HWhat could you #e a#solutely eLcellent
at
doing in today.s market?I Where could you #e the #est? Where could you
achieve worldclass
-uality? Where could you #e #etter than S<N of your competitors? H
2he market only pays eLtraordinary rewards for eLtraordinary products and
services) Where and how could you do what you do in an eLtraordinary
fashion?
<einvent Your Career
>inally, think a#out reinventing yourself and your career on a regular #asis, as
well) "f you were starting over again today, what would you do more of, less
of, start or
stop? What would you get into or get out of?
"f you were starting your career over again, what additional knowledge and
skills
would you want to have? What can you do, starting today, to ac-uire those
key skills?
"magine that you could do a variety of 5o#s) What would you really like to do
with your
life?
8ince you were going to have to reinvent yourself regularly throughout your
career, it is
very important that you think a#out how you would do it well in advance of
when it
#ecomes necessary)
<einvent Your rgani'ation:
;) "f you were starting your #usiness over again today, what would you do
diferently?
@) "f you were starting your career over again today, what would you get
into, or out of?
=) "f your #usiness #urned to the ground and you could only ofer one of
your products or services, which one would it #e?
C) Who are your most important customers, the ones who you would
immediately move to take care of, if you were starting over?
D) Who are your most important people, #oth inside and outside of your
#usiness?
E) What are your most important contacts and #usiness relationships, the
ones you would want most to preserve if you were starting over?
F) "f money were no o#5ect, what steps would you take today to reinvent
your #usiness?
Cha#ter Eight 1 Sele!t the <ight Peo#le
&ere lies a man who know how to enlist into his service people better than
himself!
A*ndrew arnegie ,epitaphB
2he people in your company are the most important parts of your #usiness)
*ll work, all
performance, all results come from them, #oth as individuals and when they
work
together in teams of some kind) 2he manager.s output is the output of his or
her team,
and of the individual team mem#ers)
"n #usiness, people come (rst) Ro#s, activities and results are only achieved
after
the right people are in place) Rim ollins says in his #ook, )ood to )reat, that
the key to
#uilding a great #usiness is, H(rst, get the right people on the #us, and
second, get the
wrong people of the #us)I *ny other approach is #ound to fail)
Two Key >ualities to -oo$ For
2he #est people have two -ualities) >irst, they can #e counted on to get the
5o#
done, to get it done well and to get it done in a timely fashion) 8econd, they
get along
well with others) 2hey are good team players)
Jou should apply *ero"based thinking to each person who reports to you on a
regular #asis) ontinually ask, HKnowing what " now know, would " hire, assign
or
promote this person again, if " had to do it over?I
"f the answer is HNo,I then your neLt -uestion is, H3ow do " remove or replace
this
person, and how fast can " do it?I
What do you want and need those results to #e?
Once you are clear a#out the results you desire, set speci(c measures of
performance on each 5o#, and each task) 3ow will you and the candidate
know whether
or not the 5o# has #een done properly? 4emem#er, HWhat gets measured,
gets done)I
*nd, H"f you can.t measure it, you can.t manage it)I
Sele!t the <ight Peo#le:
;) 4ank every one in your company on a scale from ;,;<, with ;< #eing the
highest, on their competence at their 5o#)
@) 4esolve to #uild a team of highly motivated, competent and positive
employees to
help you get the results you need)
=) 2hink through each new 5o# or hire carefully in advance) Write out the
description
clearly)
C) "nterview at least = candidates for a new position) "nterview the candidate
you
like at least = times, in three places, and have him or her interviewed #y at
least =
other people)
D) heck references carefullyP seek the fatal 'aw or weakness that would
make the
candidate unsuita#le)
E) 3ire only positive, lika#le peopleP they make the #est team players)
F) 4esults are everythingP continually emphasi+e and eLplain eLactly what
results are
eLpected from each person)
Cha#ter 9ine 1 3ar$et 3ore E=e!tively
+ecause its purpose is to create a customer, the business enterprise has two
, and only
these two" basic functions- marketing and innovation! .arketing and
innovation produce
results/ all the rest are costs! A$eter 1ruckerB
*ll #usiness strategy is ultimately marketing strategy) Whenever you are
worried a#out the
health or future of your #usiness, get #ack to thinking a#out marketing and
selling) >ocus
single,mindedly on increasing sales and revenues) utting eLpenses and
controlling costs
is an ongoing necessity, #ut you can.t cost,cut your way to #usiness success)
Jou have to
increase cash 'ow, and this only comes from selling more of your products or
services)
9o matter how !hallenging or !om#etitive the e!onomy a##ears% as
mu!h as
?@A of your mar$et is still unta##ed& 2here are almost always hidden
opportunities
around you) Jour a#ility to uncover and take advantage of those opportunities
is the true
test of competence as an eLecutive or as a #usiness)
)e!ide Who You Are and What You )o
0peciali*ation re-uires that you focus on speci(c products or services,
speci(c
markets or speci(c customer needs) Jou must (ght the temptation to try to
ofer too many
products and services to too many customers in too many areas) Jou must
speciali+e,
#oth in your own mind, and in the mind of your customer)
What is it exactly that your product or service is designed to achieve, avoid or
preserve for your customer? What are the core competencies or proprietary
methods or
technologies that ena#le you to speciali+e in this area? What speci(c pro#lem
or need can
you solve or satisfy for your customer? *nd of all the diferent results you can
get with
your #usiness, where do you, should you, could you speciali+e?
See Yourself As A (usiness
"n your personal life, you should ask the same -uestions of yourself as well)
What
is your personal area of speciali*ation? "n what way is your work superior to
your
competitors? What is the ideal position or area of responsi#ility for you to
apply your
talents? Where should you #e concentrating your energies to get the very
#est results and
greatest rewards possi#le?
0specially, you should continually ask yourself, $hat is it that I do very, very
well?
What is your personal area of eLcellence? What could it #e? What should it
#e?
-oo$ing Ahead
Looking into the future of your #usiness or industry, what new competencies
do you need
to develop to lead your (eld in the months and years ahead? What additional
knowledge
and skills do you need to ac-uire? What are those few tasks, which, if you did
them in an
eLcellent fashion, would have the greatest positive impact on your career? "n
what areas
could #e paid the very most for the application of your special talents and
a#ilities? 2his
-uestion is 5ust as relevant for you as it is for your company)
3ar$et 3ore E=e!tively:
;) 1ecide today to dominate your (eld, to #e the #est at marketing and
innovation in your product or service area) What is the (rst step you should
take?
@) 1etermine your area of speciali+ation, #y product or service, market or
type of customer) What should it #e? What could it #e?
=) 3ow do you diferentiate your product or service from those of your
competitors? "n what ways are you superior to anyone else? What could it #e?
What
should it #e?
C) What are you #est market segments? Where are your highest pro#a#ility
customers? Who can #ene(t the most from using what you sell?
D) 3ow can you organi+e your #usiness so that you concentrate your
marketing and selling eforts on those customers who can #uy and pay faster
than any
others?
E) What additional products, services, knowledge or capa#ilities will you
need to dominate your markets in the months and years ahead?
F) What should you immediately start doing more of, less of, start or stop
to ad5ust to the current market?
Cha#ter Ten 1 Analy'e Your Com#etition
1oncentrate your strengths against your competitors relative weakness!
A6ruce
3endersonB
Know Your Enemy
3ere then is a -uestion for youK Who is your competition? 0Lactly? Jour
choice of
competitor determines almost everything you do in your market, 5ust as the
choice of an
adversary determines everything a general does in the process of conducting
military
operations)
)etermine Their (uying 3otives
Once you have determined why it is that people #uy from you, you must then
ask
and answer, HWhy do people #uy from my competitors?I What value or
#ene(ts are your
potential customers convinced that they receive when #uying from your
competitor rather
than from you?
What are your competitor.s key strengths? What are his areas of
speciali+ation,
diferentiation, segmentation and concentration? What does your competitor
have that
you don.t have? What does he ofer that you don.t ofer? What is he doing
more of or
#etter than you? What is his uni-ue selling proposition?
=set Their Advantages
*s you study your competitors, look for ways to ofset or neutrali+e the
advantages
their customers perceive them to have) What are your competitor.s
weaknesses? 3ow can
you eLploit these weaknesses? What do you do #etter than they do? "n what
ways are
your products or services superior to their oferings? "n what areas do you
have a distinct
advantage over your competitors? What can you do to ofset your
competitor.s strengths
and maLimi+e your advantages? 3ow can you #etter position yourself against
your
competitors in a tough market?
2he 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
(nd an
opportunity to take away their market share) *s 8un 2+u says in he 2rt of
$ar, H"f you
know #oth yourself and your enemy, you will prevail in a hundred #attles)I
Analy'e Your Com#etition:
;) Who is your competition for what you sell, with the eLact customers you
are
trying to attract?
@) What would happen if you changed your oferings in such a way that you
targeted
a diferent group of customers, one that would #e easier to sell to?
=) Why do your potential customers #uy from your competitors? What
advantages do
they perceive?
C) What is your competitor.s uni-ue selling proposition? What special feature
or
#ene(t does his product or service have that yours does not?
D) "n what ways are you superior to your competitors? What can you ofer
that they
cannot? 3ow can you emphasi+e this advantage in your sales and marketing
eforts?
E) Where is your competitor vulnera#le? 3ow could you eLploit this to your
advantage?
F) 3ow could you alter your marketing strategy in such a way that you could
achieve
dominance in a particular area, with a speci(c 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!
AR) $aul !ettyB
2he most important single determinant of your success is your area of
competitive
advantage) "t is more important than all other factors) "t determines the rise
or fall of your
#usiness, your level of pro(ta#ility, your position in the marketplace and
everything else
you accomplish)
Jour competitive advantage must #e crystal clear to you and to everyone in
your
company, as well as to your prospective customers, Lack of clear competitive
advantage
leads -uickly to diminished sales, loss of market share, lower pro(ta#ility,
price cutting,
and ultimately to #usiness failure)
Your 5igh Con!e#t
Jour #usiness was started #ecause you or your company had an idea for a
product or service that was diferent or #etter from other products and
services) "t ofered
to satisfy the same need or solve the same pro#lem #etter, faster or cheaper
than anyone
or anything else then availa#le)
Jour a#ility to diferentiate your product in the minds and hearts of your
customers is the key to winning them in the (rst place, and then keeping
them after the
initial sale) 2o #uy from you, a customer must #e convinced that, all things
considered,
your ofering is diferent and #etter than anything else that is currently
availa#le at the
same price) Rack Welch was famous for saying, H"f you don.t have competitive
advantage,
don.t compete&I
Three Areas of )i=erentiation
2o succeed in a tough market, what you sell must #e superior to your
competitor.s oferings in at least three ways) It must "e "etter% faster%
!hea#er% and easier
to use in some way that ma$es it more attra!tive than rival #rodu!ts
or servi!es& "t must #e
sold more professionally or serviced with greater sensitivity, speed or
eOciency) "t must
#e #etter in at least three areas)
One of your key 5o#s in strategic thinking is to identify the three areas where
you are
#etter and then to emphasi+e those areas of superiority in all your marketing
and sales
3ow could you achieve operational eLcellence in your #usiness, or some part
of your
#usiness, in such a way that you could #e the low,cost provider in your
market? 3ow
could you dramatically reduce your costs of doing #usiness and use this low
cost
advantage to increase your sales and pro(ta#ility?
-ead the Field
2he 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)
ompanies like /ercedes and 4oleL fall into this category, as does 8ony and
LeLus)
ustomers are willing to pay a premium for a #rand name that represents
high -uality and
cutting,edge technology) Where are there opportunities for you to distinguish
your
products or services #y using your imagination to #ecome the -uality leader
in your (eld?
Close to the Customer
2he third area where you could develop competitive advantage is in #eing
Hclose to the
customer)I 2his re-uires that you invest the time to develop high -uality
relationships
#ased on Hcustomer intimacy)I ustomers will pay more and remain loyal
longer to
companies that seem to know and understand them #etter than others)
$roviders of
speciali+ed services, such as consulting (rms, law (rms and accounting (rms
fall into this
category)
"n what ways could you develop higher levels of trust and credi#ility with your
customers? What could you do to demonstrate to your customers that you
really care
a#out them and their interests? 2his strategy can ofer a #reakthrough
opportunity,
especially in the sale of eLpensive products and services where resales and
referrals are
possi#le)
Pi!$ Your Targets
2o lead your (eld and achieve higher levels of pro(ta#ility, you have to #e
outstanding in one of these three areas and very good in the other two) One
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
Jour area of eLcellence is the key to your success in a competitive
marketplace)
2his is where your product or service stands out in comparison to your
competitors) "t is a
value or #ene(t that you ofer that no one else ofers) With regard to your
products or
services, what is it? What could it #e? What should it #e?
Jour area of superiority is de(ned as an area of performance where your
product
or service is superior to that of your competitors) 2his performance diference
is
signi(cant enough that your customer will #uy it, and even pay you more for
it) "n what
way does your product perform #etter, in terms of getting results that your
customer cares
a#out, than your competitors? 3ow 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
ofer
to your customers, and is something that they really care a#out) No one else
does as well
as you do in this area) No one else achieves the same #ene(t or result) What
is your
uni-ue selling proposition? What could it #e?
-oo$ Into Yourself
On a personal level, you must continually ask these -uestions of yourself)
What is your
personal area of eLcellence? Where are you superior to your competitors?
What is your
uni-ue selling proposition? "n what ways do you do your 5o# #etter or faster
than others?
What is it that you and only you do in an outstanding fashion for your
company? What
could it #e? What should it #e?
$erhaps the most important area of superiority you can develop is your a#ility
to
do your 5o# -uickly and well, in an eLcellent fashion, consistently and
dependa#ly every
time) 2his is the key to success as an individual in a competitive marketplace)
)o It (etter% Faster% Chea#er:
;) "n what ways are your most important products or services superior to
those of
your competitors?
@) What is your recogni+ed Harea of eLcellence?I "f you were to conduct a
survey,
what would people say that your company does especially well?
=) "n what ways are your products or services faster to ac-uire, use and en5oy
than
your competitor.s?
C) What is your uni-ue selling proposition? What is it that your products or
services
ofer that no other company can match?
D) "n what ways are your products or services cheaper to #uy and use, or
achieve
superior (nancial results for your customers for the same cost?
E) "f you were known for #eing outstanding in any one area of your product or
service oferings, what one distinction would have the greatest positive
impact on your
sale and pro(ta#ility?
F) List the three areas where your products are, or can #e, superior to any of
your
competitors) What is your plan to achieve this area of market superiority?
What should
you do (rst?
What )o You SellB
2he (rst part of the marketing miL is your 4roduct or service) *lways de(ne
your
product or service in terms of what it HdoesI for your customers, versus what
it His)I 3ere.s
the -uestion, H"s your product or service, as you are ofering it today, ideally
suited for
your current market and customers?I
5ow 3u!h )o You ChargeB
2he second part of the marketing miL is your 4rice) "s your price the right
price for what
you are selling? 8hould you change your price in some way? 8hould you
increase it,
decrease it, com#ine your price with other items, or add items to your price?
8hould you
change your terms or ofer something diferent for the same price?
)ou"le Your Pri!eB
"s there any place in your #usiness that
you could increase your prices and still hold onto your market?
5ow )o You Sell ItB
3ow are you currently promoting and selling your product or service? What.s
working?
What.s not working? 8hould you change your methods of advertising,
marketing, selling
or ac-uiring customers in any way?
Sell 3ore Stu=
0specially, should you upgrade and improve your direct selling methods,
people,
presentation, and capa#ilities?
Is Your Phone <ingingB
0ver after, when " think a#out the efectiveness of advertising, " always ask,
H"s
your phone ringing?I
Where )o You SellB
2he fourth element of the marketing miL is the 4lace) 2his is the speci(c
location where
the sale of your product takes place) Where eLactly do you sell your product
today? 1o
you sell in homes, oOces or in your own retail esta#lishment? 1o you sell in a
particular
city, state or nationwide? 1o you sell in stores or #y direct selling or #y direct
mail? /ost
importantly, should you change the place at which you ofer your products?
* change in the location where you ofer your product or
service could change the direction of your #usiness) What could it #e?
E2amine Your Assum#tions
Whenever you have diOculties selling a suOcient -uantity of your product or
service, you should eLamine all of your assumptions in the areas of product,
price,
promotion and place) Jou should #e willing to consider the possi#ility that
your method
is completely wrong in one or more of these areas)
"t often happens that a single change in one of the H$.sI in the marketing miL
can
change the entire nature of your #usiness, #oost your results, increase your
pro(ta#ility
and move you toward market leadership) Keep an open mind)
The Answers Are Changing
What is the correct marketing miL for you to sell the very most at the highest
cost, and
earn the greatest pro(t? What assumptions are you going on that
may no longer #e true?
Change Your 3ar$eting 3i2:
C& 6e prepared to challenge every aspect of your marketing, especially if it is
not
working as well as #efore) What areas cause you the greatest frustration and
dissatisfaction?
D& What eLactly do you sell, de(ned as what it HdoesI for your customers,
versus
what it His?I
6& What prices do you charge? 3ow could you change the way you charge to
make
#uying from you more attractive?
E& 3ow do you promote your product? ould there #e #etter ways of
advertising
your products or services that would give you #etter results?
7& 3ow do you sell your product or service? "s every person who deals with
your
customers fully trained in every key result area of selling?
:& Where do you sell your product or service? 8hould you #e eLploring other
locations or methods of sale?
;& 8hould you change more than one of the elements of the marketing miL at
the
same time? hallenging market conditions often call for #old departures from
the methods
of the past, especially if they are no longer working)
What Words )o You wnB
1eli#erately or accidentally, each product or service develops a reputation
that
positions it against its competitors) What is yours?
Create Your wn Cheat Sheet
3ere is the -uestion) What words do you own? What words should you own in
the
hearts and minds of your prospective customers? What words could you own
if you were
to reorgani+e and redirect your marketing eforts?
*s an eLercise, imagine one of your prospects meeting with one of your
customers) "magine that your customer called you and asked you what you
would like
him to say to your prospect to convince your prospect to #uy from you?
"f you could put together a Hcheat sheetI with the eLact words or phrases
that you
would like your customer to leave in the mind of your prospect, what words
would you
choose? Would you choose words like excellent 3uality, high integrity, friendly
service,
nice people, 3uick responses to problems, easy to work with, great prices?
3ow do you want
to #e descri#ed #y your customers and potential customers? Of all the words
and phrases
that customers could use to descri#e your products and services, and your
company,
which would #e the most helpful for you and your #usiness?
What Is Your (randB
3ow are you descri#ed and thought a#out #y others when you are not there?
What is
your personal brand? What is your reputation? 3ow do other people think and
talk a#out
you, #oth as a person and as a contri#utor to the organi+ation?
Position Your Com#any For Su!!ess
;) What is your company.s reputation in your market? 3ow do customers and
competitors think and talk a#out you?
@) What words do people use when descri#ing your products or services to
others?
=) "f you could HownI certain words that apply to your company, your
products or
services, which words would you choose?
C) What words, if they were automatically associated with your company,
would
have the greatest positive efect on your sales and pro(ta#ility?
D) What changes would you have to make to assure that every customer
contact
reinforced the message that you wanted to send to your customers a#out
doing #usiness
with you?
E) What are the most important promises that you make to your prospects to
get
them to #uy from you for the (rst time? 1o you keep these promises after the
sale?
F) What are the most positive things that your customers say a#out dealing
with your
company? 3ow could create a system to assure that more customers say
these things?
0Lamine your complete range of products and services, especially the newer
ones,
and ask, HWhich of these has the potential to #e a #ig seller?I What would
you have to do
or invest in o help make it a ma5or source of sales and revenues?
Keep asking yourself, H"f " had not already committed time and money to this
product, knowing what " now know, would " start investing in it again today?I
*pply the 86U concept to yourself and your career) Jou have several areas of
talent and a#ility, core competencies, eLperience, knowledge and education)
What are
your cash cows, the skills that are central to your value to the organi+ation?
What are your Hstars,I the emerging areas of activity, or new skills and
knowledge
that can make you eLtremely valua#le in the future?
What are your potential areas of great success? What are the pro5ects,
responsi#ilities and areas of opportunity, which, if you eLploit them fully, can
ena#le you
to move ahead more rapidly in your career?
>inally, what are the HdogI areas of your work life? 2hese are the tasks or
skills
that you may have mastered in the past, #ut which distract you from your
future) 2hese
are the 5o#s and activities that take up a lot of time, #ut which are nowhere
near as
valua#le as other things you could #e doing) What are they?
)evelo# Strategi! (usiness .nits
;) 6egin today to view each product or service as a separate #usiness,
responsi#le
for generating a certain amount of pro(t every month)
@) !roup your diferent products or services #y similar characteristics, similar
customers, or similar markets)
=) What are the cash cows of your #usiness? What are the core products or
services
that are essential to your overall pro(ta#ility?
C) What can you do today to safeguard and nurture your cash cows to assure
that
they continue contri#uting sales and cash 'ow far into the future?
D) What are the HstarsI of your #usiness? What are the products that are
selling well,
increasing in market share, and generating high pro(ts?
E) What could you do to increase the sales and pro(ta#ility of your stars?
F) What are the H-uestion marksI of your #usiness? Which of your current
products
or services should you discontinue, knowing what you now know?
What Is To (e SoldB
2he (rst -uestion is, +What is to "e soldB, 2o answer this correctly, you
have to de(ne
your product or service in terms of what it does, and how it #ene(ts your
customer) 3ow
does it improve his or her life or work? Of all the #ene(ts that a customer
en5oys from
purchasing your product or service, what is the primary #ene(t, the one thing
that you
ofer that makes you superior to any other competitor in the marketplace? 1o
you know
the answer to this?
Who Is 0oing To Sell ItB
2he second -uestion is +(y whomB, Who is actually going to sell the
product or service
and get the check from the customer? 3ow are you going to recruit, train,
manage, (eld
and support the sales person? 3ow is this salesperson going to uncover the
necessary
leads and get face to face with the prospective customer?
Who Is Your CustomerB
2he neLt part of the -uestion is HTo whomB,
5ow 3u!h Are You 0oing To ChargeB
"s there any price you would raise, lower or modify in some
way?
Colle!ting Payment
2he neLt -uestion is How is it going to be paid for? 1o you re-uire
payment
in full, in advance? 1o you re-uire a deposit when the sale is made and with
the #alance
to #e paid at a later time on certain terms? 1o you ofer credit or (nancing?
0specially,
what do your competitors do?
Often a change in the way you charge, or in your pricing structure, can
dramatically increase your sales) What could you do diferently in today.s
market that
would make it easier or more attractive to #uy your product or service?
)elivering The 0oods
2he (nal part of the -uestion is How is going to be delivered
satisfactorily?
What is the eLact process of getting the product or service to your customer
in such a
way, and at such a level of -uality, that the customer #oth #uys from you
again and
recommends you to others?
Sell 3ore E=e!tively:
;) What is the eLact sales process necessary to sell your product or service,
from the
(rst customer contact through to the close of the sale? 1o you know? 3ow
could it #e
improved?
@) What must your prospective customer #e convinced of #efore he chooses
your
product over that of your competitor?
=) "f money were no o#5ect, what special results or #ene(ts do you ofer in
your
sales eforts that make your product more desira#le than any other availa#le?
C) What is your process for recruiting salespeople? What media do you use?
What
levels of education and eLperience do you re-uire?
D) What kind of a compensation system do you have for salespeople? What is
it
#ased on? 3ow could it #e improved so that it motivates #etter sales
performance?
E) 3ow much of your #usiness comes from referrals from happy customers?
3ow
could you increase the num#er of referrals you get as a percentage of your
#usiness?
F) Why aren.t your sales twice as high already? What sales eforts could you
make to
tap into that M<N of the market that has never heard of you?
Follow the Formula
HWhy am " not at that goal already?I What is holding you
#ack? What is the constraint, chokepoint or #ottleneck that sets the speed on
how fast you
achieve your speci(c goals of sales, cash 'ow or pro(ta#ility in your
#usiness?
Let us return to my earlier -uestion, HWould you like to dou#le your sales and
dou#le your income?I "f your answer is HyesI, then why haven.t you done it
already? Why
aren.t your sales twice as high? Why aren.t your pro(ts twice as high? What is
holding you
#ack? What is constraining you? What is the limiting factor?
Identify Your Personal Constraints
2hink a#out your personal life and goals as will) *sk yourself, HWhat are my
most
important goals? Why am " not there already? What is it within me that is
holding me
#ack?I
"s it the lack of a particular -uality, attri#ute or skill that sets the speed at
which "
achieve my goals? "s it a particular attitude or #elief that is holding me #ack?
*nd most
important, what could you do immediately to alleviate your key constraints,
starting today?
Eliminate the <oad"lo!$s:
;) 8et clear, measura#le goals for sales and pro(ta#ility) Now ask, HWhat
determines
the speed at which " achieve these goals?I
@) Use sentence completion eLercises) 8ay, HWe could dou#le our sales if it
5ust
wasn.t for))I and (ll in the #lank)
=) "dentify the ma5or #lock to your achieving your most important goal? 3ow
could
you remove it?
C) Look within your company for the limiting factors that hold you #ack) What
are
the chokepoints in your #usiness?
D) *ssess each person in each key position) *re they competent and capa#le
of
doing what needs to #e done for you to #e successful?
E) Once you have identi(ed your key constraint to #usiness success, ask,
H$hat else
is holding us #ack?I Keep asking, HWhat else?I until you get to the real
pro#lem)
F) "n your own career and personal life, what sets the speed at which you
achieve
your goals? Look within yourself for the answers)
3a$e Faster% (etter )e!isions
Whenever they #ring you a pro#lem
or a -uestion, always ask, HWhat do you think we should do?I
<eengineer Your Com#any:
;) $ractice simpli(cation as a way of life) "n what areas of work has your life
#ecome
too complicated, and what can you do to get it #ack under control?
@) $ractice +ero,#ased thinking with every step and every activity) "f you were
not
now doing it this way, would you start doing it this way again today?
=) 2ake a single compleL process or 5o# and make a list of every step from
#eginning
to end) 3ow could you reduce the num#er of steps #y =<N the (rst time
through?
C) What tasks or activities could you delegate to someone who can do them
F<N as
well as you?
D) What parts of your #usiness could you outsource to companies or
individuals who
speciali+e in that area?
E) What parts of your work could you eliminate altogether with little or no
impact on
your #ottom line?
F) What parts of your personal life do you need to streamline and simplify?
When are
you going to do it?
Pum# .# Your Pro/ts:
;) 1o a complete pro(t analysis on every product and service you ofer) 4ank
them
from highest to lowest)
@) "dentify the @<N of your products that account for M<N of your sales)
Which are
they?
=) "dentify the @<N of your products and services that account for M<N of
your
pro(ts) *re they the same as your answer to T@?
C) *fter deducting all direct and indirect costs, which are your most pro(ta#le
products or services #ased on cost and return on investment?
D) 3ow much is your time worth on an hourly #asis? 6uild this cost into
everything
you do to get an accurate measure of costs and pro(ta#ility)
E) *ttri#ute a percentage of all general and administrative costs to each
product or
service you sell) 2his eLercise often turns pro(ts into losses)
F) "f your company was facing serious (nancial shortages, which products or
services
would you focus your energies on, and which would you discontinue? 2hink
a#out doing
it now)
It Starts From The To#
0ncourage each person to (nd ways to do their 5o#s #etter, faster, and easier)
*llow them the freedom to eLperiment with improvements, with no fear of
criticism if
they don.t work) 8ometimes the greatest improvements occur as the result of
a series of
small eLperiments that were not successful)
Jou should stand #ack regularly and eLamine every product, service and
process)
3ow could you improve it in some way? 3ow could you make it #etter, faster
or cheaper?
3ow could you get the same or #etter results faster, or at a lower cost? Never
#e satis(ed
or content with eListing -uality levels) *lways look for ways to improve upon
them)
6rainstorm with your team regularly to generate ideas to cut costs, improve
-uality,
increase sales and #oost pro(ts) 0ncourage everyone to think, all day long,
a#out how
they can do their 5o#s #etter) /ake this commitment to continuous
improvement a part of
your corporate culture)
Commit to E2!ellen!e
"f everyone in your marketplace referred to you and your oferings as the
best in the business, what kind of a diference would that make in your sales
and
pro(ta#ility?
With that as your goal, what would you have to do, starting today, to assure
that
everyone refers to you as Hthe #estI sometime in the future? What could you
do, starting
today, to #egin this process? What is the (rst step you should take?
>uality and Pro/ta"ility
HWhich of these companies do you feel is the #est in this particular industry?I
3ere.s the -uestionK "f such a survey were done among potential customers
for what you
sell, where do you feel your company would rank in such a comparison?
Would you #e
ranked as Hthe #est,I or somewhere lower? What could you do to move
higher in the
rankings? What one step could you take immediately?
5ow )o Customers )e/ne >ualityB
What )o Customers WantB
Commit to Continuous Im#rovement:
;) 3ow do your customers de(ne -uality? What is most important to them in
choosing your product or service?
@) 3ow do you rank against your competitors on a scale from one to ten? 3ow
could
you improve your ranking immediately?
=) 8et up a reward system in your company for suggestions and ideas to
improve
-uality and achieve greater customer satisfaction?
C) 1o you have -uality and performance standards for people, products and
activities
in your company? 1oes everyone know what they are?
D) What company do you think is the #est in your #usiness, the most
respected and
pro(ta#le? 3ow could you #enchmark yourself against them?
E) What one step could you take immediately to improve customer
satisfaction with
your company?
F) What could you do personally to upgrade and improve the -uality of your
performance in the most important things you do in your 5o#?
)e/ne Your Core (usiness
What is your core #usiness? "f everything else was stripped away, what would
#e left at
your core?
"dentify the @<N of opportunities availa#le to you today that can #e
responsi#le for
M<N of your sales and revenues in the years ahead) 2hese will almost always
#e
eLtensions of your current #usiness, your core competencies, and your areas
of
eLcellence) Jour choice of the opportunities availa#le to you largely
determines the
future of your #usiness) What are they?
Fo!us n 8alue
What are the @<N of your work activities that account for M<N of your
personal
value and your contri#ution to your company? "f you 5ust dou#led the amount
of time you
spend on the @<N of your high value tasks, and discontinued the M<N of low
value%no
value tasks that you do, you could #ecome most of the most productive
people in your
company) 2hese are your core tasks)
What are the @<N of pro#lems, aggravations, and irritations that account for
M<N of
your headaches in your work? Who are the most diOcult people, customers
or situations
that you have to deal with each day? What can you do today to minimi+e or
eliminate
them?
6ased on this M<%@< analysis, what steps can you take immediately to
improve,
increase, and strengthen your core products, services, customers and
activities? What
should you do (rst?
Where )o You E2!elB
"n what areas of your products and services are you, or could you #e better
than
SDN of your competition?
Advan!e Planning
2his 1itadel is your core #usiness) What is yours? Whatever it is, practice
H8cenario
$lanningI on a regular #asis) *sk yourself, HWhat is the worst thing that could
possi#ly
happen in my market today?I
Whatever your answer is to that -uestion, #egin making provisions today to
assure
that you will #e a#le to survive, should it occur)
Your Personal Citadel Strategy
*s an individual, you must #e clear a#out your personal core competencies,
as
well) 3ow could you improve in each one of them? What core competencies
will you
need to lead your (eld in the years ahead? What is your plan to ac-uire the
core
competencies of tomorrow?
Con!entrate n the Core:
;) What is your core #usiness? What products and services are most
responsi#le for
your success today?
@) What are your core competencies? What is it that your company does
eLtremely
well?
=) What are the worst possi#le things that could happen to your #usiness in
the neLt
year? What are your plans to deal with them, should they occur?
C) What are your non,core products, services or activities? What would
happen if you
discontinued them entirely?
D) Who are your core customers, and what are you doing to assure that they
never
leave you?
E) Who are your core people, the ones who are most important for the
survival and
growth of your #usiness? What is your strategy to keep them?
F) What are your core functions? What are the things you do that are central
to your
5o#? What activities are peripheral?
Four Key >uestions
When considering #uying a product or service, customers have four -uestions
that
must #e answered #efore going aheadK
;) What does it cost?
@) What do " get for the money?
=) 3ow fast do " get the #ene(ts you promise?
C) 3ow sure can " #e that " will get those #ene(ts?
Whichever company or salesperson answers these -uestions most
convincingly
wins the sale)
)eliver n Your Promises
HWhat results or #ene(ts do my customers eLpect of my
product or service?I and H3ow consistently do my customers get those
results and #ene(ts
when they #uy my products or services?I 2his is the true de(nition of
H-uality)I
Uuality can #e de(ned as, Hthe percentage of times that your product or
service
does what you say it will do, and continues to do it)I
* -uality rating of ;<<N, or perfect -uality, means that what you sell always
delivers on your promises) * -uality rating of S<N means that your product
gets the
desired or promised results nine out of ten times)
-ittle Things 3ean A -ot
>ederal 0Lpress has determined that if its -uality rating was SS)S<N, they
would
make mistakes in the delivery of CC,<<< envelopes a day) *t SS)S<N -uality,
>ederal
0Lpress would collapse under its own weight of confusion) 2hat is how
important -uality
is in a #usiness)
Jour personal success is also determined #y how consistently and dependa#ly
you
perform and deliver on your responsi#ilities and promises) Jou should
continually ask
yourself, HWhat results are eLpected of me?I
Jour level of efectiveness is always de(ned #y others, #y what they need
from
you) Leaders are always asking, HWhat does this situation need of me?I Once
they are
clear, they concentrate their energies in those areas)
*sk yourself, HOf all the results " can accomplish, what are the most valua#le
and
important in terms of my rewards and my future?I
Im#roving Your A"ility to 0et <esults
3ere are seven of the #est -uestions you can ask and answer to improve your
a#ility to get resultsK
;) HWhy am " on the payroll?I What eLactly have you #een hired to
accomplish?
/ake sure that what you are doing every day is the answer to this -uestion)
@) HWhat are my highest value tasks and activities?I Of all the things that you
could #e doing during the day, what are the activities that you engage in that
contri#ute
the greatest value to yourself and your company?
=) HWhat are my key result areas?I What are the core competencies and key
tasks
that you must a#solutely, positively do in an eLcellent fashion to produce the
most
important and valued results eLpected of you? 4esolve today to #ecome a
Hdo,it,toyourself,
pro5ect)I >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) !etting
better at your key tasks is one of the #est time saving techni-ues of all)
C) HWhat can " and only " do that, if done well, will make a real diference?I
2here is always something that only you can do that can make a signi(cant
diference to
your life and your work) "f you don.t do it, it won.t get done) No one else will
do it for
you) 6ut if you do it, and you do it well, it can make a signi(cant diference)
What is it?
D) HWhat one skill, if " developed and did it in an excellent fashion, would
have
the greatest positive impact on my career?I 2here 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) Jour 5o# is to identify that skill and then put your whole
heart into
#ecoming a#solutely eLcellent in that area, whatever it is)
E) HWhat one result, if " achieved it consistently for my customers, would
most
satisfy those customers and #ring me the greatest num#er of additional
customers?I What
must your customer #e a#solutely convinced that he or she will receive from
you in order
to #uy your product or service and to recommend it to his or her friends? 3ow
could you
improve your -uality and service in that area?
F) 2he (nal -uestion for personal success, num#er seven, is thisK HWhat is the
most valua#le use of my time right now?I Use this -uestion as your guiding
star
throughout the day) Keep asking, What is the most valuable use of my
time, right
now?
All )ay -ong
"f you could only perform one task all day long, what one thing could you do
that
would contri#ute more value to your life and work than any other single task
or activity?
FFFFI9TE<9ET 3A<KETI90 WIT5
E3PWE< 9ETW<K (I3GP<SPE<ITY
TEA3GP<HECT AW-FFFF
Whatever your answer% #ut mastery of that tas$ at the to# of your
list of #riorities&
)edi!ate yourself to getting "etter and "etter doing the one thing
that !an ma$e more of a
di=eren!e than anything else& This is the $ey to getting su#er"
results at every stage of
your life and !areer&
n!e more% here then are the DC $ey ideas in the Tur"ostrategy
#ro!ess:
;) Start Where You AreK 1o a complete and honest analysis of your
#usiness as it is
today, including the current status of your sales, revenues, pro(ta#ility and
the market
situation around you)
D& )raw A -ine .nder the Past: *pply +ero #ased thinking to every part of
your
#usiness) "f 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: 0Lamine your products, services,
processes,
and activities as if you were looking at them for the (rst time) 6e prepared to
ask yourself
the H#rutal -uestionsI a#out each one of them)
E& )e!ide E2a!tly What You Want: 8et clear, written, measura#le goals
and
o#5ectives for yourself in each part of your #usiness)
7& )esign Your Ideal Future: $ro5ect forward =,D years and imagine that
your
#usiness was ideal in every respect) What would it look like? What could you
do, starting
today, to make that future vision into a current reality?
:& Create A 3ission Statement: 1ecide eLactly what it is you want to
accomplish
for others with your #usiness) /ake it measura#le) /ake it eLciting) 8hare it
with
everyone)
;& <einvent Your rgani'ation: "magine starting your #usiness or career
over again
today, with your present knowledge and eLperience) What would you do
diferently?
?& Sele!t the <ight Peo#le: >ully SDN of your success in #usiness will #e
determined #y the people you choose to work with and for) 2ake the time to
make good
personnel decisions)
I& 3ar$et 3ore E=e!tively: 2hink through every part of your marketing
strategy #y
applying the four principles of speciali+ation, diferentiation, segmentation
and
concentration to every product and service)
C@& Analy'e Your Com#etition: 1ecide eLactly who you are competing
against, and
why it is that your prospective customers prefer to #uy from them) 3ow could
you ofset
this perceived advantage?
CC& )o It (etter% Chea#er% FasterK ontinually seek ways to serve and
satisfy your
customer in a superior fashion to any one else in your market) Never stop
raising the #ar
on yourself)
CD& Change Your 3ar$eting 3i2: "magine #eing your own management
consultant
and asking yourself hard -uestions a#out the appropriateness of your
product, price,
place and promotion in today.s market)
C6& Position Your Com#any For Su!!essK 1etermine how you want to #e
thought
a#out and talked a#out #y your customers and prospective customers) What
are the very
#est words they could use to descri#e you?
CE& )evelo# Strategi! (usiness .nits: 1ivide your products and services
into one
of four categoriesK cash cows, stars, 3uestion marks and dogs) /ake one
person
responsi#le for sales and pro(ta#ility for each product or group of products)
C7& Sell 3ore E=e!tively: >ocus single,mindedly on upgrading the -uality
of your
sales efort) 3ire more selectively, train more thoroughly, and manage more
professionally) 8ales are the life#lood of the #usiness)
C:& Eliminate the (ottlene!$s: "dentify the factors that determine how
fast you
achieve your goals of sales and pro(ta#ility) oncentrate on alleviating these
#ottlenecks
in every part of your #usiness)
C;& <eengineer Your Com#any: ontinually seek ways to streamline and
simplify
the process of producing and selling your products and services) Learn to
delegate,
outsource, downsi+e and eliminate the compleLity of everything you do)
C?& Pum# .# Your Pro/ts: 0valuate every product and service to
determine eLactly
how much net pro(t you are actually earning from each item you sell) 4esolve
to
discontinue products and services that are not as pro(ta#le as others, and
channel more
resources into those products that are the mainstays of your #usiness)
CI& Commit To Continuous Im#rovement: "nstall the Kai+en process of
Hcontinuous #ettermentI into your company) >ind out how your customer
de(nes
H-ualityI and then continually strive to eLceed eLpectations)
D@& Con!entrate n The Core: "dentify the most important products and
services
you ofer, and then focus on getting #etter and #etter selling more and more
of them)
$ro#a#ly M<N of the market potential for your core products has not yet #een
tapped)
@;) Fo!us n <esults: oncentrate your #est energies and resources on
getting the
most important results possi#le for your company) 8et priorities in every area
and then
work single,mindedly to complete the few tasks that are more valua#le than
everything
else put together)
2he most important part of the 2ur#ostrategy is not what you learn, #ut the
actions you
take, and how -uickly you take those actions) 2here is a direct relationship
#etween how
fast you move on a new idea and how likely it is that you will ever move on a
new idea)
4esolve today to #ecome intensely action,oriented for the rest of your career)
Rust do it&
The Tur"ostrategy Pro!ess