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Are they on budget or going sideways?
Look at the percentages. Analyze your return-on-equity, return-on-
investment,
and return-on-sales.
Are they increasing or decreasing?
! your goal is to build a great company, why isn"t your company already
great?
#ore capital required !or $mpower network
%hich o! your products or services is selling well today?
#y sales skills and $mpower &etwork
%hich o! your products and services are the most pro'table?
#y sales skills and $mpower &etwork
%hich ones are doing poorly?
%hich ones do you lose money on?
(rinking too much alchohol
s your current business situation, positive or negative, in any area?
#ore capital required
)emporary or part o! a long-term trend?
Longterm
*ow can you know !or sure?
Action
*ow can you 'nd out?
+e,oin $mpower &etwork with -#./ick 0trizheus1Like *obbs12ro,ect A%3L
%hat should you then do?
#ake 456,666 'rst 76 days
Clarity Is the Key
%hy has your business been success!ul in the past?
#y study o! business
%hat have you done well in the past that has been responsible !or your
success to date?
#y study o! business, marketing and sales.
%hat are the most important skills and competencies that your company
possesses today?
#y study o! business, marketing and sales.
%hat are the very best products and services that you o8er right now?
#y study o! business, marketing and sales.
Look at the people around you. %ho are your most valuable people?
A9* 0hoppette and University o! #aryland -A* money
%ho are no longer as valuable as be!ore?
%ho represents a net loss or detriment to your business?
-e prepared to ask and answer the brutal questions.
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 !or them?
#ake them happy
%hat do they compliment the most o! what you o8er or do !or them?
#ake them happy, talk alot and very smart in business and li!e
%hat is your number one area o! customer satis!action?
0ales and presentation
%hat do your customers like the least about what you do?
%hen ;m angry or tired
%hat do they complain about the most?
&ot having what they want available !or purchase
%hat is it that you sell that your customers and potential customers pre!er to
buy somewhere else, rather than !rom you?
Identify Your Personal Strengths
Look at yoursel! honestly. %hat are your own personal best skills, qualities
and abilities?
$nglish, 0tudying, strategic planning, marketing and sales
%hat are the most important things that you do at work, and !or your
company?
(aily !acility improvement, strategic planning, marketing and sales
%hat are the most valuable contributions you make personally to your
business?
ncrease sales, customer service, and customer retention
Start Where You Are:
5. %hat is working the very best in your business today?
0ales and marketing
%hat parts o! your business make you the happiest?
#arketing
<. %hat"s not working in your business?
%aiting on capital
%hat causes you the most aggravation and !rustration?
%aiting on capital
7. %hat are your most important products and markets?
#e =sales.marketing.english skills>, $mpower &etwork in th U0.0outh
:orean markets
%hat accounts !or the largest portion o! your revenues?
A9* and $mpower &etwork
?. %ho are your most important people?
A9* and $mpower &etwork
%ho are the people who account !or most o! your results?
A9* and $mpower &etwork
@. %hat are your special talents and skills?
%hat is it you do that accounts !or most o! your success?
A. %hat are the ma,or changes taking place in your market?
%hat changes should you make to compensate !or them?
B. %hat are your most treasured assumptions about your people, customers,
markets,
products, services and yoursel!?
%hat i! one o! them wasn"t true?
%hat would you do then?
Imagine Starting Over
Cero-based thinking requires that you apply this DscraperE mentality to every
part
o! your business. Fou do this by asking this key questionG
Is there anything that you are doing in your business that,
knowing what you now know, you wouldnt start up again today, if you
had it to do over?
nstead o! struggling to determine how you might modi!y, change, 'H, revise,
improve or alter some business !unction, you instead ask,
D! was not doing this today, would start it up again today, knowing what I
now know?
)o start with, is there any product or service that you would not bring to the
market, o8er or sell, i! you had to do it over again, starting today?
0ince I6J o! your products and services are probably going to be obsolete
within the neHt @ years, there
may be products and services you are o8ering today that, because o!
changed market
conditions, you would not introduce again today, i! you had to do it over
again, knowing
what you now know. )hese products or services are prime candidates !or
discontinuation
or divestiture.
s there any person in your business that you would not hire, assign, appoint,
go
to work !or, or become associated with i! you had to do it over again today?
#ost o! your problems in business will come !rom attempting to work with or
around a diKcult person,
who knowing what you now know, you wouldn"t get involved with again
today.
%ho does this bring to mind?
s there any supplier, banker or vendor that you are dealing with today that,
knowing what you now know, you wouldn"t get involved with again today, i!
you had to
do it over?
Since many of your business relationshis !ill not !or" out over
time# you
must be reared to continually reevaluate them# esecially if they
are causing you any
roblems or frustrations$
Analy%e Your Customers
s there any customer that you are selling to or servicing today that, knowing
what you now know, you wouldn"t take on again as a customer?
#any companies are asking this question about their diKcult customers and
deciding to let them go.
0ometimes, one o! the smartest things you can do is to D're your customers.E
$ncourage
them to go and deal with someone else who would be more appropriate !or
them.
Assess Your &usiness Oerations
s there any expenditure in your business that you would not authorize again
i!
you had it to do over?
s there any process, procedure or activity that, knowing what you
now know, you wouldn"t start up again, or get into, i! you were making the
decision
today, knowing what you now know?
s there any advertising, marketing or selling methodology or eHpense that
knowing what you now know, you wouldn"t start up again today, i! you had to
do it
over?
:eep asking, D%hat"s working?E
and D%hat"s not working?E
Pay Attention To The Indicators
Fou can always tell when you are in a zero-based
thinking situation because it
causes you continuous stress, aggravation,
!rustration, negativity and unhappiness. Fou
think about it continually. 3!ten you bring it home at
night and discuss it at the !amily
dinner table. 0ometimes it will even keep you awake
at night.
%henever something is not working, or not working
out the way you eHpected,
or causing you stress, 'nancial losses, aggravation,
or irritation, ask,
Knowing what I now know, would I get into this
again today if I had to do it over?
! the answer is D&oLE then your neHt question is
How do I get out and how fast?
The 'ecision Is Inevitable
*ere"s an important point. ! something is not working, eventually you will
have to
get out o! it. Fou will have to let the person go, discontinue the product or
service,
eliminate the activity or eHpense, or change the method o! operation. t is
only a matter o!
time. t is not going to get better all by itsel!. And every single eHecutive who
'nally
decides to get out o! an unhappy situation says a!terwards, D should have
done this a
long time agoLE
Aly This Aroach Continually
Practice %ero(based thin"ing as a )go for!ard* method for the rest
of your
business career$ Aly it to everything you do# to every art of your
business# every single
day$ Aly it to every roduct# service# rocess# rocedure and
erson and be sure that#
"no!ing !hat you no! "no!# you would get into it again
today if you had to do it over $
If not# get out# and as fast as you can$
'ra! A +ine ,nder the Past:
5. magine starting over again in every part o! your businessM is there
anything you
are doing that, knowing what you now know, you wouldn"t start up again
today?
<. s there any person in your business li!e who, knowing what you now know,
you
wouldn"t hire, assign, promote or otherwise get involved with again today,
knowing what
you now know?
7. s there any product or service that, knowing what you now know, you
wouldn"t
bring to the market again today?
?. s there any investment that you have made that, knowing what you now
know,
you wouldn"t make again today?
@. s there any business activity or process that you are using that, knowing
what you
now know, you wouldn"t start up again today?
A. s there any customer or market that, knowing what you now know, you
wouldn"t
take on or get into again today, i! you had it to do over?
B. s there any career decision that you have made that, knowing what you
now
know, you wouldn"t make the same way i! you had it to do over again today?
Start With The &asics
)he starting point o! business analysis is !or you to askG
D%hat business am in?E
%hat business are you really in?
%hat business are you really, really in?E
soon realized was in the Dgoal
achievement businessE =#e )33L
N$+O>.
#y business was helping people to
achieve their personal and business
goals !aster by providing them with
practical ideas
that they could use immediately to get
better results.
)his insight led me !rom talks and
seminars into audio and video
recording,
books, training programs and nternet
based e- learning on a variety o!
sub,ects, including the development
and presentation o! the )urbostrategy
2rocess.
The Customer As Centeriece
D%ho is my customer?E
%ho is the person who buys !rom you today? (escribe your customer in
detail.
%hat is the age, income, education, position, attitude, location and interest o!
your ideal customer?
#any companies are not eHactly sure o! the answer to this question. )hey
have at best an
unclear picture o! the psychological and demographic characteristics o! their
customers.
%ho will your customer be tomorrow, i! current trends continue?
%ho should your customer be, i! you want to be success!ul in the markets o!
tomorrow?
%ho could your customer be i! you were to change, improve or upgrade your
product or service
o8erings?
'etermine What You Sell
Four neHt question isG D%hy does my customer buy?E
%hat value, bene't, result or di8erence does your customer seek or eHpect
to en,oy as a result o! doing business
with you?
3! all the various bene'ts that your products or services o8er your
customers,
what do your customers consider to be more important than anything else?
(o you know?
Four ability to de'ne and promote this unique bene't is the real key to
competitive
advantage and market success. Fou neHt question isG
D%hat do we do especially well?E
%hat do you do better than any o! your competitors?
%here are you superior?
Pustomers only buy !rom a particular company because they !eel that, in
some way, that company o8ers something
that is superior to that o! any other o8ering.
%hat is your area o! eHcellence?
Qack %elch o! Oeneral $lectric was !amous !or saying, D! you don"t have
competitive advantage, don"t compete.E *is philosophy was that Oeneral
$lectric would
be number one or number two in every market segment in which they
competed, or they
would get out o! that market.
Are you number one or number two in your market?
Pan you be?
%hat is your plan to achieve this market position?
'e-ne Your Cometitor
)he neHt question, which we will deal with eHtensively in Phapter 56, isG
D%ho is your competition?E
3nce you have identi'ed your competition, you must ask,
D%hy does your potential customer buy !rom your competition, rather than
!rom you?E
%hat value or bene't does he perceive that he receives !rom someone else
that he does not !eel he
receives !rom you?
*ow could you o8set this perception?
Set Clear .oals
n per!orming an eHamination o! your business, you must ask continually,
D%hat are my goals?E
%hat are you trying to accomplish?
! you are clear about your goals, what is holding you back !rom achieving
them?
Fou need clear, written, measurable, time-bounded goals !or every part o!
your
business and personal li!e. Fou need short-term, medium-term and long-term
goals. $ach
goal must be in writing, with plans !or its accomplishment. Fou can"t hit a
target that you
can"t see. Analyze everything you do in the course o! a day or a week.
%hat are the <6J o! your activities that could account !or I6J or more o!
your results?
0ometimes, ,ust 56J o! your activities, i! you were to pursue them
aggressively, could account !or R6J o! your
results.
%hat might they be?
&ecome Action(Oriented
%hat actions should you take immediately in response to the answers to
these
questions?
%hat is the very 'rst thing you should do right now to increase your sales
and
improve your market position?
Another good question you should ask yoursel! isG
D%hy am in business at all?E
%hy do you eHist?
%hat social purpose does your company serve?
%hat loss would occur to society i! you ceased to do business altogether?
magine that you had to go in !ront o! a government tribunal each year to
,usti!y
your continued eHistence.
%hat would you say to the tribunal in terms o! how you serve, help, or make
a
di8erence in the lives or work o! your customers to ,usti!y staying in
business?
)hese are key questions that you need to ask and answer !or your business
on a
regular basis. Fou should ask and answer these questions !or yourself, as
well. ! you are
unclear or inaccurate in your answers to any o! them, the health o! your
enterprise could
be in ,eopardy.
Conduct A &asic &usiness Analysis:
5. %hat are your goals !or your business?
%hat are you trying to accomplish?
<. %ho is your ideal customer?
(escribe him or her accurately.
7. %hy does your customer buy !rom you?
%hat special bene'ts or advantages do you o8er that your competitors
don"t have?
?. %hat business are you really in?
(escribe your business in terms o! what you do !or your customer, what
results you get.
@. %hat are the <6J o! your activities that could account !or I6J o! your
results?
A. %hat is your competitive advantage, your Darea o! eHcellence?E
n what ways are you superior to R6J or more o! your competitors?
B. %hat speci'c, measurable actions should you take immediately in answer
to the above questions?
Chater /our 0 'ecide 12actly What You Want
he world has the habit of making way for the man whose words and actions
show that
he knows where he is going! =&apoleon *ill>
)urbostrategy begins with your deciding eHactly what you want to accomplish
in
the key areas o! your business li!e. 3nce you know your goals in each area,
you can then
decide upon the best steps you can take to get there.
The .OSPA 3odel
Fou can use the O302A #odel as a guide !or strategic planning. )hese 've
key
thinking tools !orm the basis !or success!ul business operations.
&egin With The 1nd In 3ind
)he 'rst letter, DOE stands !or .oals. )hese are the ultimate results that you
want
to achieve. Four goals are the end targets that you aim at throughout your
business year
or planning period. Four goals are your sales, pro'ts, growth rate, market
share, or
percentage o! return on assets, equity, investment or sales. Ooals are always
measurable.
%hat are yours?
Stes on the Staircase
)he second letter, D3E stands !or Ob4ectives. )hese are the steps you will
have to
take to achieve your goals. )hey are like the rungs on the ladder to get to the
top.
Four business ob,ectives can be speci'c rates o! return !rom advertising,
levels o! sales o!
certain products and services, number o! items shipped and billed, monies
collected and
cost levels !or certain activities. A lower de!ect rate or a higher sale amount
per customer
can be ob,ectives on the path to achieving the main corporate goals. %hat
are your
interim ob,ectives?
5o! to .et There
)he letter D0E stands !or Strategies. )hese are the di8erent approaches that
you
can take to achieve your ob,ectives and reach your goals. 9or eHample,
achieving a
speci'c level o! pro'tability will require producing and selling speci'c
quantities o!
products or services to a speci'c market in a speci'c way. )here are many
di8erent ways
to go about accomplishing these ob,ectives. )he way you choose is your
strategy, and
may determine the success or !ailure o! your enterprise.
(o you produce, market, sell, deliver yoursel!, or do you outsource some part
o!
the process? (o you sell direct, via retail, direct mail, catalog or nternet? (o
you charge
more, charge less, up-sell, cross-sell or discount? (o you enter certain
markets and
abandon others? %hat is your strategy? s it working?
Planning /or Success
)he letter D2E stands !or Plans. )hese are your blueprints !or achieving your
goals. Four plans are composed o! step-by-step lists o! eHactly what you will
do, day by
day, to get !rom wherever you are to wherever you want to go. 2lans are
always broken
down by sequence and priority.
0ome things have to be done before others can be done. 0ome things are
more important
than others in achieving the goal or ob,ective. %hen your plan is organized by
sequence
and priority, you can accomplish much more in less time.
-usiness li!e consists almost entirely o! pro,ects, one a!ter the other. A pro,ect
can
be de'ned as a multi"task #ob, a ,ob made up o! many small ,obs, each o!
which has to be
done properly to complete the larger task. Four ability to plan, organize and
complete
multi-task ,obs, ever larger and more compleH, is the most important single
element o!
your success, in any 'eld.
'evelo a &ias for Action
)he last letter in the O302A process, DAE, stands !or Actions. )hese are the
speci'c tasks
that you are going to complete to carry out the plans to implement the
strategies to
accomplish the ob#ectives to achieve your goals.
$very important task must be clear, measurable and time bounded. t must
be assigned to
a speci'c person who is quali'ed to per!orm the task correctly, on time and
on budget.
$hat gets measured gets done!
/ocus on Pro-tability
)he central purpose o! )urbostrategy is to boost your cash Sow and pro'ts,
and
to increase your return on the money invested in your business. )he aim o!
strategy is to
generate a higher level o! cash Sow and pro'tability than you would realize
without the
strategy, or with your previous strategy. n short, it is to make more money
than you are
making right now !rom the way that you are doing business today.
)he essential resources o! people, money and talent that you need to
succeed in
your business are always limited. )hey must be !ocused and concentrated !or
maHimum
results. )his is what a good strategy enables you to do.
/our Ways to Imrove Your &usiness
0etting strategy requires making hard decisions in !our areasG 9irst, 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 pro'table?
0econd, you must decide what you are going to do less of.
%hat"s not working?
%hat contributes very little to growth and pro'tability?
%hat should you discontinue or eliminate based on the realities o! today"s
market and today"s customers?
%hat can you do to reduce costs in areas where they contribute very little to
results?
)hird, what are you going to start doing that you"re not doing today?
%hat new products, services or activities should you introduce i! you want to
increase your sales and
pro'tability, or improve and streamline your activities?
9inally, what are you going to stop doing altogether?
+emember, the critical resources o! time and money are always scarce. )he
only way you can improve results is
by discontinuing certain activities altogether. Fou can then channel those
resources into
areas where they yield higher levels o! business results.
Clarity is the key to strategic success. )he more time you take to be
absolutely
clear about who you are, and what you want to accomplish, the more
success!ul and
pro'table you will be.
'ecide 12actly What You Want:
5. %hat are your speci'c, measurable long-term goals !or sales and
pro'tability in
your business?
<. %hat are the speci'c ob#ectives o! sales, staKng, production, delivery and
customer development that you will have to achieve to accomplish your
goals?
7. %hat are the various ways that you can meet your ob,ectives and achieve
your
goals?
%hat is the best strategy !or you in today"s market?
?. %hat should you do more of and really !ocus on to increase your sales and
pro'tability?
@. %hat should you do less of, based on your current eHperience?
%hat"s not working?
A. %hat should you start doing that you are not doing today?
%hat opportunities are available to you?
B. %hat should you discontinue, and stop doing altogether, so that you can
!ree up
resources !or more pro'table activities?
Chater /ive 0 'esign Your Ideal /uture
$e have been endowed with the capacity and the power to create desirable
pictures within
and to %nd them automatically printed in the outer world of our
environment! =Qohn
#c(onald>
0ome time ago, conducted a strategic planning session !or the senior
eHecutives
o! a 45B< billion dollar company. )he organization was going through a period
o!
considerable turbulence, change, competition and new government
regulation. )here had
been lay-o8s, 'rings, downsizing and divestments. #y clients were the top
eHecutives
who had survived the recent turmoil, and the blood letting was not yet over.
n these
circumstances, they were both worried about the !uture and distracted in the
present.
Create A /ive Year /antasy
)o get them centered and !ocused, began the strategy session with a
process that
call )Ideali%ation$* n this process, which you can use yoursel!, had the
members o!
the top team create a D've year !antasy.E
DLet us put aside the current situation !or the moment,E suggested.
Dnstead, tell
me what this company would look like 've years !rom now i! it was per!ect in
every
respect?E
)his eHercise !orced them to take their attention away !rom the problems o!
the
present and !ocus their thinking on the possibilities o! the !uture.
As we went around the room, each person contributed an idea about what
the
company would look like i! it were per!ect. wrote each idea on a Sip chart
and taped
the pages onto the walls where everyone could see them. n less than hal! an
hour, we
generated <B ideal descriptions.
%e then voted on these idealized goals and organized them by priority. %e
ended up
with a series o! clear ob,ectives, including Dhighly pro'table, tremendous
market
reputation, high stock price, top leadership, !abulous customer service, great
place to
work, best management, rapid growth rate and top reputation in the
industry,E among
others.
Thin" In Terms Of Possibilities
then asked them, DAre these goals possible?E 3ne by one, they agreed that
all o!
these goals were possible in 've years. )hey might not be achievable in one
or two years,
but in 've years, every one o! them could be accomplished with will and
determination.
%e came out o! that session with everyone revitalized and committed to
working
on achieving one or more o! those 've-year fantasies. 3ver the neHt two
years, the
company completely reorganized. )hey did more o! some things and less o!
others. )hey
started doing things that they had not done in the past, and they stopped
certain activities
altogether. )hey took complete control o! their corporate destiny and
changed it.
2eter (rucker once wrote, D%e greatly overestimate what we can accomplish
in one
yearM but we greatly underestimate what is possible !or us in 've years.E
Thin" About The /uture
/uture(orientation is a key element o! strategic planning and strategic
thinking.
t is a ma,or responsibility o! leadership and top people in every area. 3nly
the leader can
think about the !uture. 3nly the leader can plan !or the !uture. )here is no
one else in the
organization who can do it, and i! the leader does not think about and plan !or
the !uture
as an ongoing part o! his ,ob, it will not be done. As they say in Alaska, D3nly
the lead
sled dog ever gets a di8erent view.E
*ow o!ten and how well the top people in the company think about the !uture
largely
determines the success or !ailure o! the business. D! you don"t know where
you"re going,
any road will take you there.E
)he development o! the quality o! !uture-orientation requires that you
continually
create an ideal image o! your company some time in the !uture. You ro4ect
for!ard in
your mind 6(7 years and imagine that your comany is erfect in
every resect$ You
decide e2actly ho! much you !ould be selling and earning at that
time$ You imagine
your ideal stoc" rice# your ideal reutation in the mar"et# your ideal
!or" situation and
your ideal human environment$
&ac" /rom The /uture Thin"ing
3nce you have a clear picture o! your
ideal !uture, you then return mentally
to
your current situation and think about
what you would have to do, starting
today, to turn your !uture vision into a
current reality. )his is called, Dback
!rom the !uture thinking.E
#ake a list o! all the things that would
have to happen !or you to realize your
!antasy sometime in the !uture. t is
amazing how your perspective
changes when you
look back !rom the !uture, eHactly as i!
you were looking back !rom the top o!
the
mountain to yoursel! down in the
valley, and seeing the eHact route you
will have to
!ollow to get to the top.
+eaders 5ave 8ision
n 7766 studies o! leaders reviewed by Qames #ac2herson, searching !or the
common denominators o! leadership throughout the ages, the one quality
that all the
studies had in common was the quality o! vision. Leaders have visionM non-
leaders do
not.
)o become a visionary requires that you develop the ability to imagine,
de'ne,
articulate, share and inspire other people with an eHciting picture o! the
!uture. Fou get
everyone in your business committed to !ul'lling this vision, and to working
toward it
every day. )his is the key to leadership, and to building a great company.
Aristotle wrote, )We become !hat !e reeatedly
do$* Fou become a leader by thinking
the way leaders think, both in your business and in your personal li!e. Fou
become a
leader by thinking about the !uture, and how you can make it a present
reality.
9o!# 3ore Than 1ver
-ut it is in times o! rapid change, and turbulence in the market, that an
eHciting
vision o! the !uture becomes more important that ever be!ore. A vision can
become the
!orce that binds people together into a solid team. t can give meaning and
purpose to
work, even when times are tough and pay increases are not possible.
)here are many ways you can approach the development o! a vision !or your
organization. Perhas the very best vision for your comany includes
t!o "ey
comonents$ /irst# it is focused on your customers and on doing
something for them that
changes and imroves their lives or !or" in some !ay$ Second# it
contains a commitment
to excellence # to be the very best at doing !hat you do for your
customers$ These are the
"eys to vision$
Four vision is to Dbe the bestLE at the most important thing that you do !or
your
customers. Four 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 be
known as
outstanding in any one thing that you do !or your customers. %hat would it
be? Four
answer can be the starting point o! a vision !or your business that changes
your !uture
completely.
Your Personal 8ision
Fou need a vision !or yoursel! as well. 2ro,ect !orward @ years in your
imagination. ! your !uture were per!ect in every way, what would it look like?
! your
income, your position in your company or 'eld, your !amily li!e, your health,
your ,ob
and every part o! your li!e were ideal in every way, how would it be di8erent
!rom today?
3nce you are clear about your vision, !or yoursel! and !or your business, the
only question you ask is,
&ow do I make it a reality?
)op people think continually in terms o! how? )hey think in terms o! taking
action, o! what can be done.
3nce 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 o!
your ideal !uture. Fou take complete control o! your destiny. As (rucker wrote,
D)he very
best way to predict the !uture is to create it.E And the starting point is vision.
'esign Your Ideal /uture:
5. %hat is your vision !or your company? 2ro,ect !orward and imagine that
your
business was ideal in every way. %hat would it look like?
<. %hat is your vision !or yoursel!? ! your li!e and career were ideal in every
way,
what would it look like?
7. dealize in each area o! your business. ! your products, services, sale and
pro'tability were per!ect, what would they look like?
?. dealize with regard to your people. ! your sta8 were ideal in terms o!
skills,
abilities, personalities and results, how would they be di8erent !rom today?
@. magine that a ma,or magazine was going to write a story about your
company.
%hat would you want them to say?
A. 2ro,ect !orward 've years and then look back to today !rom that vantage
point.
%hat would you have to change today to create your ideal !uture?
B. n what one area would it be most help!ul to sales and pro'tability i! your
company were widely known as Dthe best?E %hat steps could you take
immediately to
begin earning that reputation?
Create A 3ission Statement:
5. (etermine your personal reasons !or doing what you do. %hat gives you a
sense
o! meaning and purpose in li!e?
<. (ecide upon the 7-@ key values upon which your company is based.
nvolve other
people in the discussion.
7. (e'ne the actions and behaviors that people will engage in, both inside
and
outside the company, that are consistent with your values.
?. (esign a mission statement, an ideal description o! what your company
wants to
accomplish !or its customers sometime in the !uture.
7$ %rite out a list o! your values, and what they mean, plus your mission
statement,
and share them with your sta8 and customers.
:$ Preate a personal mission statement !or your career. %hat do you want to
accomplish, and how do you want to be known?
;$ Preate a mission statement !or yoursel! and your !amily. %hat is it that you
want
to accomplish or achieve with your !amily in the years ahead?
Chater Seven 0 <einvent Your Organi%ation
'very man of genius sees the world at a di(erent angle than his fellows!
=*avelock $llis>
Qack %elch o! Oeneral $lectric once said, D! the rate o! change outside your
organization is greater than the rate o! change inside your organization, then
the end is in
sight.E
n times o! turbulence, you should be prepared to reinvent your business as
o!ten
as necessary as your eHternal world changes.
As an eHercise, imagine that you were starting your business over again
today.
%hat would you get into, or not get into?
&undle of <esources
9or greater perspective, stand back and view your business as a bundle of
resources and
capabilities, like a 're hose o! talent and ability that can be aimed in many
directions to
achieve di8erent results. nstead o! limiting yoursel! to seeing your business
as an
organization that is designed to per!orm speci'c !unctions, producing and
selling certain
products and services, think o! it as being capable o! doing a variety o! things
completely
di8erent !rom what you are doing today.
The .reat /ire
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 !ound
that all
your sta8 were sa!e and standing around in the parking lot.
As it happens, there is unoccupied oKce space available across the street.
Fou
can immediately move into the new space and start your business anew.
*ere is the
questionG %hich o! your products and services would you begin producing
and
distributing right away, and which ones would you not start up again,
knowing what you
now know?
12amine 1very <elationshi
! you were starting your business over again today, completely !ree !rom any
encumbrances o! the past, which customers would you call 'rst, 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, i! at all? %hat would you do 'rst?
%hat would
you do second? %hat would you not start up again, knowing what you now
know?
<einvent Your Sta= <elationshis
&ow, let"s go back to the parking lot. Let us assume that all o! your people
are
sa!e and standing around waiting !or instructions. %hich o! 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 'rst 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.
12amine Your Organi%ation
! you could reinvent your business, what would you do more o!? %hat would
you
do less o!? %hat would you start doing that you are not doing today? %hat
would you
stop doing altogether?
n reinventing your organization, ask yoursel!, D%hat are my most important
talents, skills, abilities and core competencies, and what else could do with
them? %ho
are my best people and what else could they do? :eep thinking about how
you would
reinvent your business i! you were starting over. )his will keep you on the
cutting edge o!
creativity and innovation.
Thin" In Terms of 12cellence
)he key questions in reinvention are, D%hat could you be absolutely eHcellent
at
doing in today"s market?E %here could you be the best? %here could you
achieve worldclass
quality? %here could you be better than R6J o! your competitors? D
)he market only pays eHtraordinary rewards !or eHtraordinary products and
services. %here and how could you do what you do in an eHtraordinary
!ashion?
<einvent Your Career
9inally, think about reinventing yoursel! and your career on a regular basis, as
well. ! you were starting over again today, what would you do more of, less
of, start or
stop? %hat would you get into or get out o!?
! you were starting your career over again, what additional knowledge and
skills
would you want to have? %hat can you do, starting today, to acquire those
key skills?
magine that you could do a variety o! ,obs. %hat would you really like to do
with your
li!e?
0ince you were going to have to reinvent yoursel! regularly throughout your
career, it is
very important that you think about how you would do it well in advance o!
when it
becomes necessary.
<einvent Your Organi%ation:
5. ! you were starting your business over again today, what would you do
di8erently?
<. ! you were starting your career over again today, what would you get
into, or out o!?
7. ! your business burned to the ground and you could only o8er one o!
your products or services, which one would it be?
?. %ho are your most important customers, the ones who you would
immediately move to take care o!, i! you were starting over?
@. %ho are your most important people, both inside and outside o! your
business?
A. %hat are your most important contacts and business relationships, the
ones you would want most to preserve i! you were starting over?
B. ! money were no ob,ect, what steps would you take today to reinvent
your business?
Chater 1ight 0 Select the <ight Peole
&ere lies a man who know how to enlist into his service people better than
himself!
=Andrew Parnegie -epitaph>
)he people in your company are the most important parts o! your business.
All work, all
per!ormance, all results come !rom them, both as individuals and when they
work
together in teams o! some kind. )he manager"s output is the output o! his or
her team,
and o! the individual team members.
n business, people come 'rst. Qobs, activities and results are only achieved
a!ter
the right people are in place. Qim Pollins says in his book, )ood to )reat, that
the key to
building a great business is, D'rst, get the right people on the bus, and
second, get the
wrong people o8 the bus.E Any other approach is bound to !ail.
T!o Key >ualities to +oo" /or
)he best people have two qualities. 9irst, they can be counted on to get the
,ob
done, to get it done well and to get it done in a timely !ashion. 0econd, they
get along
well with others. )hey are good team players.
Fou should apply *ero"based thinking to each person who reports to you on a
regular basis. Pontinually ask, D:nowing what now know, would hire, assign
or
promote this person again, i! had to do it over?E
! the answer is D&o,E then your neHt question is, D*ow do remove or replace
this
person, and how !ast can do it?E
%hat do you want and need those results to be?
3nce you are clear about the results you desire, set speci'c measures o!
per!ormance on each ,ob, and each task. *ow will you and the candidate
know whether
or not the ,ob has been done properly? +emember, D%hat gets measured,
gets done.E
And, D! you can"t measure it, you can"t manage it.E
Select the <ight Peole:
5. +ank every one in your company on a scale !rom 5-56, with 56 being the
highest, on their competence at their ,ob.
<. +esolve to build a team o! highly motivated, competent and positive
employees to
help you get the results you need.
7. )hink through each new ,ob or hire care!ully in advance. %rite out the
description
clearly.
?. nterview at least 7 candidates !or a new position. nterview the candidate
you
like at least 7 times, in three places, and have him or her interviewed by at
least 7
other people.
@. Pheck re!erences care!ullyM seek the !atal Saw or weakness that would
make the
candidate unsuitable.
A. *ire only positive, likable peopleM they make the best team players.
B. +esults are everythingM continually emphasize and eHplain eHactly what
results are
eHpected !rom each person.
Chater 9ine 0 3ar"et 3ore 1=ectively
+ecause its purpose is to create a customer, the business enterprise has two
, and only
these two" basic functions- marketing and innovation! .arketing and
innovation produce
results/ all the rest are costs! =2eter (rucker>
All business strategy is ultimately marketing strategy. %henever you are
worried about the
health or !uture o! your business, get back to thinking about marketing and
selling. 9ocus
single-mindedly on increasing sales and revenues. Putting eHpenses and
controlling costs
is an ongoing necessity, but you can"t cost-cut your way to business success.
Fou have to
increase cash Sow, and this only comes !rom selling more o! your products or
services.
9o matter ho! challenging or cometitive the economy aears# as
much as
?@A of your mar"et is still untaed$ )here are almost always hidden
opportunities
around you. Four ability to uncover and take advantage o! those opportunities
is the true
test o! competence as an eHecutive or as a business.
'ecide Who You Are and What You 'o
0peciali*ation requires that you !ocus on speci'c products or services,
speci'c
markets or speci'c customer needs. Fou must 'ght the temptation to try to
o8er too many
products and services to too many customers in too many areas. Fou must
specialize,
both in your own mind, and in the mind o! your customer.
%hat is it exactly that your product or service is designed to achieve, avoid or
preserve !or your customer? %hat are the core competencies or proprietary
methods or
technologies that enable you to specialize in this area? %hat speci'c problem
or need can
you solve or satis!y !or your customer? And o! all the di8erent results you can
get with
your business, where do you, should you, could you specialize?
See Yourself As A &usiness
n your personal li!e, you should ask the same questions o! yoursel! as well.
%hat
is your personal area o! speciali*ation? n what way is your work superior to
your
competitors? %hat is the ideal position or area o! responsibility !or you to
apply your
talents? %here should you be concentrating your energies to get the very
best results and
greatest rewards possible?
$specially, you should continually ask yoursel!, $hat is it that I do very, very
well?
%hat is your personal area o! eHcellence? %hat could it be? %hat should it
be?
+oo"ing Ahead
Looking into the !uture o! your business or industry, what new competencies
do you need
to develop to lead your 'eld in the months and years ahead? %hat additional
knowledge
and skills do you need to acquire? %hat are those !ew tasks, which, i! you did
them in an
eHcellent !ashion, would have the greatest positive impact on your career? n
what areas
could be paid the very most !or the application o! your special talents and
abilities? )his
question is ,ust as relevant !or you as it is !or your company.
3ar"et 3ore 1=ectively:
5. (ecide today to dominate your 'eld, to be the best at marketing and
innovation in your product or service area. %hat is the 'rst step you should
take?
<. (etermine your area o! specialization, by product or service, market or
type o! customer. %hat should it be? %hat could it be?
7. *ow do you di8erentiate your product or service !rom those o! your
competitors? n what ways are you superior to anyone else? %hat could it be?
%hat
should it be?
?. %hat are you best market segments? %here are your highest probability
customers? %ho can bene't the most !rom using what you sell?
@. *ow can you organize your business so that you concentrate your
marketing and selling e8orts on those customers who can buy and pay !aster
than any
others?
A. %hat additional products, services, knowledge or capabilities will you
need to dominate your markets in the months and years ahead?
B. %hat should you immediately start doing more o!, less o!, start or stop
to ad,ust to the current market?
Chater Ten 0 Analy%e Your Cometition
1oncentrate your strengths against your competitors relative weakness!
=-ruce
*enderson>
Kno! Your 1nemy
*ere then is a question !or youG %ho is your competition? $Hactly? Four
choice o!
competitor determines almost everything you do in your market, ,ust as the
choice o! an
adversary determines everything a general does in the process o! conducting
military
operations.
'etermine Their &uying 3otives
3nce you have determined why it is that people buy !rom you, you must then
ask
and answer, D%hy do people buy !rom my competitors?E %hat value or
bene'ts are your
potential customers convinced that they receive when buying !rom your
competitor rather
than !rom you?
%hat are your competitor"s key strengths? %hat are his areas o!
specialization,
di8erentiation, segmentation and concentration? %hat does your competitor
have that
you don"t have? %hat does he o8er that you don"t o8er? %hat is he doing
more o! or
better than you? %hat is his unique selling proposition?
O=set Their Advantages
As you study your competitors, look !or ways to o8set or neutralize the
advantages
their customers perceive them to have. %hat are your competitor"s
weaknesses? *ow can
you eHploit these weaknesses? %hat do you do better than they do? n what
ways are
your products or services superior to their o8erings? n what areas do you
have a distinct
advantage over your competitors? %hat can you do to o8set your
competitor"s strengths
and maHimize your advantages? *ow can you better position yoursel! against
your
competitors in a tough market?
)he more time you take to study and understand why and how your
competitors
are success!ul in selling to your customers, the more likely it is that you will
'nd an
opportunity to take away their market share. As 0un )zu says in he 2rt of
$ar, D! you
know both yoursel! and your enemy, you will prevail in a hundred battles.E
Analy%e Your Cometition:
5. %ho is your competition !or what you sell, with the eHact customers you
are
trying to attract?
<. %hat would happen i! you changed your o8erings in such a way that you
targeted
a di8erent group o! customers, one that would be easier to sell to?
7. %hy do your potential customers buy !rom your competitors? %hat
advantages do
they perceive?
?. %hat is your competitor"s unique selling proposition? %hat special !eature
or
bene't does his product or service have that yours does not?
@. n what ways are you superior to your competitors? %hat can you o8er
that they
cannot? *ow can you emphasize this advantage in your sales and marketing
e8orts?
A. %here is your competitor vulnerable? *ow could you eHploit this to your
advantage?
B. *ow 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?
Chater 1leven 0 'o It &etter# /aster# Cheaer
he man who comes up with a means for doing or producing almost
anything better,
faster or more economically has his future and his fortune at his %ngertips!
=Q. 2aul Oetty>
)he most important single determinant o! your success is your area o!
competitive
advantage. t is more important than all other !actors. t determines the rise
or !all o! your
business, your level o! pro'tability, your position in the marketplace and
everything else
you accomplish.
Four competitive advantage must be crystal clear to you and to everyone in
your
company, as well as to your prospective customers, Lack o! clear competitive
advantage
leads quickly to diminished sales, loss o! market share, lower pro'tability,
price cutting,
and ultimately to business !ailure.
Your 5igh Concet
Four business was started because you or your company had an idea !or a
product or service that was di8erent or better !rom other products and
services. t o8ered
to satis!y the same need or solve the same problem better, !aster or cheaper
than anyone
or anything else then available.
Four ability to di8erentiate your product in the minds and hearts o! your
customers is the key to winning them in the 'rst place, and then keeping
them a!ter the
initial sale. )o buy !rom you, a customer must be convinced that, all things
considered,
your o8ering is di8erent and better than anything else that is currently
available at the
same price. Qack %elch was !amous !or saying, D! you don"t have competitive
advantage,
don"t competeLE
Three Areas of 'i=erentiation
)o succeed in a tough market, what you sell must be superior to your
competitor"s o8erings in at least three ways. It must be better# faster#
cheaer# and easier
to use in some !ay that ma"es it more attractive than rival roducts
or services$ t must be
sold more pro!essionally or serviced with greater sensitivity, speed or
eKciency. t must
be better in at least three areas.
3ne o! your key ,obs in strategic thinking is to identi!y the three areas where
you are
better and then to emphasize those areas o! superiority in all your marketing
and sales
*ow could you achieve operational eHcellence in your business, or some part
o! your
business, in such a way that you could be the low-cost provider in your
market? *ow
could you dramatically reduce your costs o! doing business and use this low
cost
advantage to increase your sales and pro'tability?
+ead the /ield
)he second area where you could achieve competitive advantage is in the
use o!
innovative technology leading to the production o! high quality products
and services.
Pompanies like #ercedes and +oleH !all into this category, as does 0ony and
LeHus.
Pustomers are willing to pay a premium !or a brand name that represents
high quality and
cutting-edge technology. %here are there opportunities !or you to distinguish
your
products or services by using your imagination to become the quality leader
in your 'eld?
Close to the Customer
)he third area where you could develop competitive advantage is in being
Dclose to the
customer.E )his requires that you invest the time to develop high quality
relationships
based on Dcustomer intimacy.E Pustomers will pay more and remain loyal
longer to
companies that seem to know and understand them better than others.
2roviders o!
specialized services, such as consulting 'rms, law 'rms and accounting 'rms
!all into this
category.
n what ways could you develop higher levels o! trust and credibility with your
customers? %hat could you do to demonstrate to your customers that you
really care
about them and their interests? )his strategy can o8er a breakthrough
opportunity,
especially in the sale o! eHpensive products and services where resales and
re!errals are
possible.
Pic" Your Targets
)o lead your 'eld and achieve higher levels o! pro'tability, you have to be
outstanding in one o! these three areas and very good in the other two. 3ne
o! the most
important decisions you make is to choose your area o! competitive
advantage, and then
to dedicate your company to achieving it.
Strive /or Sueriority
Four area o! eHcellence is the key to your success in a competitive
marketplace.
)his is where your product or service stands out in comparison to your
competitors. t is a
value or bene't that you o8er that no one else o8ers. %ith regard to your
products or
services, what is it? %hat could it be? %hat should it be?
Four area o! superiority is de'ned as an area o! per!ormance where your
product
or service is superior to that o! your competitors. )his per!ormance di8erence
is
signi'cant enough that your customer will buy it, and even pay you more !or
it. n what
way does your product per!orm better, in terms o! getting results that your
customer cares
about, than your competitors? *ow could you improve the per!ormance o!
your products
or services in some meaning!ul way?
9inally, your uni3ue selling proposition is something that you and only you
o8er
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 bene't or result. %hat
is your
unique selling proposition? %hat could it be?
+oo" Into Yourself
3n a personal level, you must continually ask these questions o! yoursel!.
%hat is your
personal area o! eHcellence? %here are you superior to your competitors?
%hat is your
unique selling proposition? n what ways do you do your ,ob better or !aster
than others?
%hat is it that you and only you do in an outstanding !ashion !or your
company? %hat
could it be? %hat should it be?
2erhaps the most important area o! superiority you can develop is your ability
to
do your ,ob quickly and well, in an eHcellent !ashion, consistently and
dependably every
time. )his is the key to success as an individual in a competitive marketplace.
'o It &etter# /aster# Cheaer:
5. n what ways are your most important products or services superior to
those o!
your competitors?
<. %hat is your recognized Darea o! eHcellence?E ! you were to conduct a
survey,
what would people say that your company does especially well?
7. n what ways are your products or services !aster to acquire, use and en,oy
than
your competitor"s?
?. %hat is your unique selling proposition? %hat is it that your products or
services
o8er that no other company can match?
@. n what ways are your products or services cheaper to buy and use, or
achieve
superior 'nancial results !or your customers !or the same cost?
A. ! you were known !or being outstanding in any one area o! your product or
service o8erings, what one distinction would have the greatest positive
impact on your
sale and pro'tability?
B. List the three areas where your products are, or can be, superior to any o!
your
competitors. %hat is your plan to achieve this area o! market superiority?
%hat should
you do 'rst?
What 'o You SellB
)he 'rst part o! the marketing miH is your 4roduct or service. Always de'ne
your
product or service in terms o! what it DdoesE !or your customers, versus what
it Dis.E *ere"s
the question, Ds your product or service, as you are o8ering it today, ideally
suited !or
your current market and customers?E
5o! 3uch 'o You ChargeB
)he second part o! the marketing miH is your 4rice. s your price the right
price !or what
you are selling? 0hould you change your price in some way? 0hould you
increase it,
decrease it, combine your price with other items, or add items to your price?
0hould you
change your terms or o8er something di8erent !or the same price?
'ouble Your PriceB
s there any place in your business that
you could increase your prices and still hold onto your market?
5o! 'o You Sell ItB
*ow are you currently promoting and selling your product or service? %hat"s
working?
%hat"s not working? 0hould you change your methods o! advertising,
marketing, selling
or acquiring 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
$ver a!ter, when think about the e8ectiveness o! advertising, always ask,
Ds
your phone ringing?E
Where 'o You SellB
)he !ourth element o! the marketing miH is the 4lace. )his is the speci'c
location where
the sale o! your product takes place. %here eHactly do you sell your product
today? (o
you sell in homes, oKces or in your own retail establishment? (o you sell in a
particular
city, state or nationwide? (o you sell in stores or by direct selling or by direct
mail? #ost
importantly, should you change the place at which you o8er your products?
A change in the location where you o8er your product or
service could change the direction o! your business. %hat could it be?
12amine Your Assumtions
%henever you have diKculties selling a suKcient quantity o! your product or
service, you should eHamine all o! your assumptions in the areas o! product,
price,
promotion and place. Fou should be willing to consider the possibility that
your method
is completely wrong in one or more o! these areas.
t o!ten happens that a single change in one o! the D2"sE in the marketing miH
can
change the entire nature o! your business, boost your results, increase your
pro'tability
and move you toward market leadership. :eep an open mind.
The Ans!ers Are Changing
%hat is the correct marketing miH !or you to sell the very most at the highest
cost, and
earn the greatest pro't? %hat assumptions are you going on that
may no longer be true?
Change Your 3ar"eting 3i2:
C$ -e prepared to challenge every aspect o! your marketing, especially i! it is
not
working as well as be!ore. %hat areas cause you the greatest !rustration and
dissatis!action?
D$ %hat eHactly do you sell, de'ned as what it DdoesE !or your customers,
versus
what it Dis?E
6$ %hat prices do you charge? *ow could you change the way you charge to
make
buying !rom you more attractive?
E$ *ow do you promote your product? Pould there be better ways o!
advertising
your products or services that would give you better results?
7$ *ow do you sell your product or service? s every person who deals with
your
customers !ully trained in every key result area o! selling?
:$ %here do you sell your product or service? 0hould you be eHploring other
locations or methods o! sale?
;$ 0hould you change more than one o! the elements o! the marketing miH at
the
same time? Phallenging market conditions o!ten call !or bold departures !rom
the methods
o! the past, especially i! they are no longer working.
What Words 'o You O!nB
(eliberately or accidentally, each product or service develops a reputation
that
positions it against its competitors. %hat is yours?
Create Your O!n Cheat Sheet
*ere is the question. %hat words do you own? %hat words should you own in
the
hearts and minds o! your prospective customers? %hat words could you own
i! you were
to reorganize and redirect your marketing e8orts?
As an eHercise, imagine one o! your prospects meeting with one o! 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 buy !rom you?
! you could put together a Dcheat sheetE with the eHact words or phrases
that you
would like your customer to leave in the mind o! your prospect, what words
would you
choose? %ould you choose words like excellent 3uality, high integrity, friendly
service,
nice people, 3uick responses to problems, easy to work with, great prices?
*ow do you want
to be described by your customers and potential customers? 3! all the words
and phrases
that customers could use to describe your products and services, and your
company,
which would be the most helpful !or you and your business?
What Is Your &randB
*ow are you described and thought about by others when you are not there?
%hat is
your personal brand? %hat is your reputation? *ow do other people think and
talk about
you, both as a person and as a contributor to the organization?
Position Your Comany /or Success
5. %hat is your company"s reputation in your market? *ow do customers and
competitors think and talk about you?
<. %hat words do people use when describing your products or services to
others?
7. ! you could DownE certain words that apply to your company, your
products or
services, which words would you choose?
?. %hat words, i! they were automatically associated with your company,
would
have the greatest positive e8ect on your sales and pro'tability?
@. %hat changes would you have to make to assure that every customer
contact
rein!orced the message that you wanted to send to your customers about
doing business
with you?
A. %hat are the most important promises that you make to your prospects to
get
them to buy !rom you !or the 'rst time? (o you keep these promises a!ter the
sale?
B. %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?
$Hamine your complete range o! products and services, especially the newer
ones,
and ask, D%hich o! these has the potential to be a big seller?E %hat would
you have to do
or invest in o help make it a ma,or source o! sales and revenues?
:eep asking yoursel!, D! had not already committed time and money to this
product, knowing what now know, would start investing in it again today?E
Apply the 0-U concept to yoursel! and your career. Fou have several areas o!
talent and ability, core competencies, eHperience, knowledge and education.
%hat are
your cash cows, the skills that are central to your value to the organization?
%hat are your Dstars,E the emerging areas o! activity, or new skills and
knowledge
that can make you eHtremely valuable in the !uture?
%hat are your potential areas o! great success? %hat are the pro,ects,
responsibilities and areas o! opportunity, which, i! you eHploit them !ully, can
enable you
to move ahead more rapidly in your career?
9inally, what are the DdogE areas o! your work li!e? )hese are the tasks or
skills
that you may have mastered in the past, but which distract you !rom your
!uture. )hese
are the ,obs and activities that take up a lot o! time, but which are nowhere
near as
valuable as other things you could be doing. %hat are they?
'evelo Strategic &usiness ,nits
5. -egin today to view each product or service as a separate business,
responsible
!or generating a certain amount o! pro't every month.
<. Oroup your di8erent products or services by similar characteristics, similar
customers, or similar markets.
7. %hat are the cash cows o! your business? %hat are the core products or
services
that are essential to your overall pro'tability?
?. %hat can you do today to sa!eguard and nurture your cash cows to assure
that
they continue contributing sales and cash Sow !ar into the !uture?
@. %hat are the DstarsE o! your business? %hat are the products that are
selling well,
increasing in market share, and generating high pro'ts?
A. %hat could you do to increase the sales and pro'tability o! your stars?
B. %hat are the Dquestion marksE o! your business? %hich o! your current
products
or services should you discontinue, knowing what you now know?
What Is To &e SoldB
)he 'rst question is, )What is to be soldB* )o answer this correctly, you
have to de'ne
your product or service in terms o! what it does, and how it bene'ts your
customer. *ow
does it improve his or her li!e or work? 3! all the bene'ts that a customer
en,oys !rom
purchasing your product or service, what is the primary bene't, the one thing
that you
o8er that makes you superior to any other competitor in the marketplace? (o
you know
the answer to this?
Who Is .oing To Sell ItB
)he second question is )&y !homB* %ho is actually going to sell the
product or service
and get the check !rom the customer? *ow are you going to recruit, train,
manage, 'eld
and support the sales person? *ow is this salesperson going to uncover the
necessary
leads and get !ace to !ace with the prospective customer?
Who Is Your CustomerB
)he neHt part o! the question is DTo !homB*
5o! 3uch Are You .oing To ChargeB
s there any price you would raise, lower or modi!y in some
way?
Collecting Payment
)he neHt question is How is it going to be paid for? (o you require
payment
in !ull, in advance? (o you require a deposit when the sale is made and with
the balance
to be paid at a later time on certain terms? (o you o8er credit or 'nancing?
$specially,
what do your competitors do?
3!ten a change in the way you charge, or in your pricing structure, can
dramatically increase your sales. %hat could you do di8erently in today"s
market that
would make it easier or more attractive to buy your product or service?
'elivering The .oods
)he 'nal part o! the question is How is going to be delivered
satisfactorily?
%hat is the eHact process o! getting the product or service to your customer
in such a
way, and at such a level o! quality, that the customer both buys !rom you
again and
recommends you to others?
Sell 3ore 1=ectively:
5. %hat is the eHact sales process necessary to sell your product or service,
!rom the
'rst customer contact through to the close o! the sale? (o you know? *ow
could it be
improved?
<. %hat must your prospective customer be convinced o! be!ore he chooses
your
product over that o! your competitor?
7. ! money were no ob,ect, what special results or bene'ts do you o8er in
your
sales e8orts that make your product more desirable than any other available?
?. %hat is your process !or recruiting salespeople? %hat media do you use?
%hat
levels o! education and eHperience do you require?
@. %hat kind o! a compensation system do you have !or salespeople? %hat is
it
based on? *ow could it be improved so that it motivates better sales
per!ormance?
A. *ow much o! your business comes !rom re!errals !rom happy customers?
*ow
could you increase the number o! re!errals you get as a percentage o! your
business?
B. %hy aren"t your sales twice as high already? %hat sales e8orts could you
make to
tap into that I6J o! the market that has never heard o! you?
/ollo! the /ormula
D%hy am not at that goal already?E %hat is holding you
back? %hat is the constraint, chokepoint or bottleneck that sets the speed on
how !ast you
achieve your speci'c goals o! sales, cash Sow or pro'tability in your
business?
Let us return to my earlier question, D%ould you like to double your sales and
double your income?E ! your answer is DyesE, then why haven"t you done it
already? %hy
aren"t your sales twice as high? %hy aren"t your pro'ts twice as high? %hat is
holding you
back? %hat is constraining you? %hat is the limiting !actor?
Identify Your Personal Constraints
)hink about your personal li!e and goals as will. Ask yoursel!, D%hat are my
most
important goals? %hy am not there already? %hat is it within me that is
holding me
back?E
s it the lack o! a particular quality, attribute or skill that sets the speed at
which
achieve my goals? s it a particular attitude or belie! that is holding me back?
And most
important, what could you do immediately to alleviate your key constraints,
starting today?
1liminate the <oadbloc"s:
5. 0et clear, measurable goals !or sales and pro'tability. &ow ask, D%hat
determines
the speed at which achieve these goals?E
<. Use sentence completion eHercises. 0ay, D%e could double our sales i! it
,ust
wasn"t !or..E and 'll in the blank.
7. denti!y the ma,or block to your achieving your most important goal? *ow
could
you remove it?
?. Look within your company !or the limiting !actors that hold you back. %hat
are
the chokepoints in your business?
@. Assess each person in each key position. Are they competent and capable
o!
doing what needs to be done !or you to be success!ul?
A. 3nce you have identi'ed your key constraint to business success, ask,
D$hat else
is holding us back?E :eep asking, D%hat else?E until you get to the real
problem.
B. n your own career and personal li!e, what sets the speed at which you
achieve
your goals? Look within yoursel! !or the answers.
3a"e /aster# &etter 'ecisions
%henever they bring you a problem
or a question, always ask, D%hat do you think we should do?E
<eengineer Your Comany:
5. 2ractice simpli'cation as a way o! li!e. n what areas o! work has your li!e
become
too complicated, and what can you do to get it back under control?
<. 2ractice zero-based thinking with every step and every activity. ! you were
not
now doing it this way, would you start doing it this way again today?
7. )ake a single compleH process or ,ob and make a list o! every step !rom
beginning
to end. *ow could you reduce the number o! steps by 76J the 'rst time
through?
?. %hat tasks or activities could you delegate to someone who can do them
B6J as
well as you?
@. %hat parts o! your business could you outsource to companies or
individuals who
specialize in that area?
A. %hat parts o! your work could you eliminate altogether with little or no
impact on
your bottom line?
B. %hat parts o! your personal li!e do you need to streamline and simpli!y?
%hen are
you going to do it?
Pum , Your Pro-ts:
5. (o a complete pro't analysis on every product and service you o8er. +ank
them
!rom highest to lowest.
<. denti!y the <6J o! your products that account !or I6J o! your sales.
%hich are
they?
7. denti!y the <6J o! your products and services that account !or I6J o!
your
pro'ts. Are they the same as your answer to T<?
?. A!ter deducting all direct and indirect costs, which are your most pro'table
products or services based on cost and return on investment?
@. *ow much is your time worth on an hourly basis? -uild this cost into
everything
you do to get an accurate measure o! costs and pro'tability.
A. Attribute a percentage o! all general and administrative costs to each
product or
service you sell. )his eHercise o!ten turns pro'ts into losses.
B. ! your company was !acing serious 'nancial shortages, which products or
services
would you !ocus your energies on, and which would you discontinue? )hink
about doing
it now.
It Starts /rom The To
$ncourage each person to 'nd ways to do their ,obs better, !aster, and easier.
Allow them the !reedom to eHperiment with improvements, with no !ear o!
criticism i!
they don"t work. 0ometimes the greatest improvements occur as the result o!
a series o!
small eHperiments that were not success!ul.
Fou should stand back regularly and eHamine every product, service and
process.
*ow could you improve it in some way? *ow could you make it better, !aster
or cheaper?
*ow could you get the same or better results !aster, or at a lower cost? &ever
be satis'ed
or content with eHisting quality levels. Always look !or ways to improve upon
them.
-rainstorm with your team regularly to generate ideas to cut costs, improve
quality,
increase sales and boost pro'ts. $ncourage everyone to think, all day long,
about how
they can do their ,obs better. #ake this commitment to continuous
improvement a part o!
your corporate culture.
Commit to 12cellence
! everyone in your marketplace re!erred to you and your o8erings as the
best in the business, what kind o! a di8erence would that make in your sales
and
pro'tability?
%ith that as your goal, what would you have to do, starting today, to assure
that
everyone re!ers to you as Dthe bestE sometime in the !uture? %hat could you
do, starting
today, to begin this process? %hat is the 'rst step you should take?
>uality and Pro-tability
D%hich o! these companies do you !eel is the best in this particular industry?E
*ere"s the questionG ! such a survey were done among potential customers
!or what you
sell, where do you !eel your company would rank in such a comparison?
%ould you be
ranked as Dthe best,E or somewhere lower? %hat could you do to move
higher in the
rankings? %hat one step could you take immediately?
5o! 'o Customers 'e-ne >ualityB
What 'o Customers WantB
Commit to Continuous Imrovement:
5. *ow do your customers de'ne quality? %hat is most important to them in
choosing your product or service?
<. *ow do you rank against your competitors on a scale !rom one to ten? *ow
could
you improve your ranking immediately?
7. 0et up a reward system in your company !or suggestions and ideas to
improve
quality and achieve greater customer satis!action?
?. (o you have quality and per!ormance standards !or people, products and
activities
in your company? (oes everyone know what they are?
@. %hat company do you think is the best in your business, the most
respected and
pro'table? *ow could you benchmark yoursel! against them?
A. %hat one step could you take immediately to improve customer
satis!action with
your company?
B. %hat could you do personally to upgrade and improve the quality o! your
per!ormance in the most important things you do in your ,ob?
'e-ne Your Core &usiness
%hat is your core business? ! everything else was stripped away, what would
be le!t at
your core?
denti!y the <6J o! opportunities available to you today that can be
responsible !or
I6J o! your sales and revenues in the years ahead. )hese will almost always
be
eHtensions o! your current business, your core competencies, and your areas
o!
eHcellence. Four choice o! the opportunities available to you largely
determines the
!uture o! your business. %hat are they?
/ocus On 8alue
%hat are the <6J o! your work activities that account !or I6J o! your
personal
value and your contribution to your company? ! you ,ust doubled the amount
o! time you
spend on the <6J o! your high value tasks, and discontinued the I6J o! low
value.no
value tasks that you do, you could become most o! the most productive
people in your
company. )hese are your core tasks.
%hat are the <6J o! problems, aggravations, and irritations that account !or
I6J o!
your headaches in your work? %ho are the most diKcult people, customers
or situations
that you have to deal with each day? %hat can you do today to minimize or
eliminate
them?
-ased on this I6.<6 analysis, what steps can you take immediately to
improve,
increase, and strengthen your core products, services, customers and
activities? %hat
should you do 'rst?
Where 'o You 12celB
n what areas o! your products and services are you, or could you be better
than
R@J o! your competition?
Advance Planning
)his 1itadel is your core business. %hat is yours? %hatever it is, practice
D0cenario
2lanningE on a regular basis. Ask yoursel!, D%hat is the worst thing that could
possibly
happen in my market today?E
%hatever your answer is to that question, 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 o! them? %hat core competencies
will you
need to lead your 'eld in the years ahead? %hat is your plan to acquire the
core
competencies o! tomorrow?
Concentrate On the Core:
5. %hat is your core business? %hat products and services are most
responsible !or
your success today?
<. %hat are your core competencies? %hat is it that your company does
eHtremely
well?
7. %hat are the worst possible things that could happen to your business in
the neHt
year? %hat are your plans to deal with them, should they occur?
?. %hat are your non-core products, services or activities? %hat would
happen i! you
discontinued them entirely?
@. %ho are your core customers, and what are you doing to assure that they
never
leave you?
A. %ho are your core people, the ones who are most important !or the
survival and
growth o! your business? %hat is your strategy to keep them?
B. %hat are your core !unctions? %hat are the things you do that are central
to your
,ob? %hat activities are peripheral?
/our Key >uestions
%hen considering buying a product or service, customers have !our questions
that
must be answered be!ore going aheadG
5. %hat does it cost?
<. %hat do get !or the money?
7. *ow !ast do get the bene'ts you promise?
?. *ow sure can be that will get those bene'ts?
%hichever company or salesperson answers these questions most
convincingly
wins the sale.
'eliver On Your Promises
D%hat results or bene'ts do my customers eHpect o! my
product or service?E and D*ow consistently do my customers get those
results and bene'ts
when they buy my products or services?E )his is the true de'nition o!
Dquality.E
Uuality can be de'ned as, Dthe percentage o! times that your product or
service
does what you say it will do, and continues to do it.E
A quality rating o! 566J, or per!ect quality, means that what you sell always
delivers on your promises. A quality rating o! R6J means that your product
gets the
desired or promised results nine out o! ten times.
+ittle Things 3ean A +ot
9ederal $Hpress has determined that i! its quality rating was RR.R6J, they
would
make mistakes in the delivery o! ??,666 envelopes a day. At RR.R6J quality,
9ederal
$Hpress would collapse under its own weight o! con!usion. )hat is how
important quality
is in a business.
Four personal success is also determined by how consistently and dependably
you
per!orm and deliver on your responsibilities and promises. Fou should
continually ask
yoursel!, D%hat results are eHpected o! me?E
Four level o! e8ectiveness is always de'ned by others, by what they need
!rom
you. Leaders are always asking, D%hat does this situation need o! me?E 3nce
they are
clear, they concentrate their energies in those areas.
Ask yoursel!, D3! all the results can accomplish, what are the most valuable
and
important in terms o! my rewards and my !uture?E
Imroving Your Ability to .et <esults
*ere are seven o! the best questions you can ask and answer to improve your
ability to get resultsG
5. D%hy am on the payroll?E %hat eHactly have you been hired to
accomplish?
#ake sure that what you are doing every day is the answer to this question.
<. D%hat are my highest value tasks and activities?E 3! all the things that you
could be doing during the day, what are the activities that you engage in that
contribute
the greatest value to yoursel! and your company?
7. D%hat are my key result areas?E %hat are the core competencies and key
tasks
that you must absolutely, positively do in an eHcellent !ashion to produce the
most
important and valued results eHpected o! you? +esolve today to become a
Ddo-it-toyoursel!-
pro,ect.E 9or the rest o! your career, dedicate yoursel! to continually learning
and
improving in those areas where top per!ormance is most vital to your
success. Oetting
better at your key tasks is one o! the best time saving techniques o! all.
?. D%hat can and only do that, i! done well, will make a real di8erence?E
)here is always something that only you can do that can make a signi'cant
di8erence to
your li!e and your work. ! you don"t do it, it won"t get done. &o one else will
do it !or
you. -ut i! you do it, and you do it well, it can make a signi'cant di8erence.
%hat is it?
@. D%hat one skill, i! developed and did it in an excellent !ashion, would
have
the greatest positive impact on my career?E )here is always one skill that i!
you developed
it and did it well, would have a greater and more positive impact on your
career than any
other single skill. Four ,ob is to identi!y that skill and then put your whole
heart into
becoming absolutely eHcellent in that area, whatever it is.
A. D%hat one result, i! achieved it consistently !or my customers, would
most
satis!y those customers and bring me the greatest number o! additional
customers?E %hat
must your customer be absolutely convinced that he or she will receive !rom
you in order
to buy your product or service and to recommend it to his or her !riends? *ow
could you
improve your quality and service in that area?
B. )he 'nal question !or personal success, number seven, is thisG D%hat is the
most valuable use o! my time right now?E Use this question as your guiding
star
throughout the day. :eep asking, What is the most valuable use of my
time, right
now?
All 'ay +ong
! you could only per!orm one task all day long, what one thing could you do
that
would contribute more value to your li!e and work than any other single task
or activity?
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Whatever your ans!er# ut mastery of that tas" at the to of your
list of riorities$
'edicate yourself to getting better and better doing the one thing
that can ma"e more of a
di=erence than anything else$ This is the "ey to getting suerb
results at every stage of
your life and career$
Once more# here then are the DC "ey ideas in the Turbostrategy
rocess:
5. Start Where You AreG (o a complete and honest analysis o! your
business as it is
today, including the current status o! your sales, revenues, pro'tability and
the market
situation around you.
D$ 'ra! A +ine ,nder the Past: Apply zero based thinking to every part o!
your
business. ! you were not doing it today, knowing what you now know, would
you get
into it again today?
6$ Conduct A &asic &usiness Analysis: $Hamine your products, services,
processes,
and activities as i! you were looking at them !or the 'rst time. -e prepared to
ask yoursel!
the Dbrutal questionsE about each one o! them.
E$ 'ecide 12actly What You Want: 0et clear, written, measurable goals
and
ob,ectives !or yoursel! in each part o! your business.
7$ 'esign Your Ideal /uture: 2ro,ect !orward 7-@ 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 !uture vision into a current reality?
:$ Create A 3ission Statement: (ecide eHactly what it is you want to
accomplish
!or others with your business. #ake it measurable. #ake it eHciting. 0hare it
with
everyone.
;$ <einvent Your Organi%ation: magine starting your business or career
over again
today, with your present knowledge and eHperience. %hat would you do
di8erently?
?$ Select the <ight Peole: 9ully R@J o! your success in business will be
determined by the people you choose to work with and !or. )ake the time to
make good
personnel decisions.
I$ 3ar"et 3ore 1=ectively: )hink through every part o! your marketing
strategy by
applying the !our principles o! specialization, di8erentiation, segmentation
and
concentration to every product and service.
C@$ Analy%e Your Cometition: (ecide eHactly who you are competing
against, and
why it is that your prospective customers pre!er to buy !rom them. *ow could
you o8set
this perceived advantage?
CC$ 'o It &etter# Cheaer# /asterG Pontinually seek ways to serve and
satis!y your
customer in a superior !ashion to any one else in your market. &ever stop
raising the bar
on yoursel!.
CD$ Change Your 3ar"eting 3i2: magine being your own management
consultant
and asking yoursel! hard questions about the appropriateness o! your
product, price,
place and promotion in today"s market.
C6$ Position Your Comany /or SuccessG (etermine 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 Strategic &usiness ,nits: (ivide your products and services
into one
o! !our categoriesG cash cows, stars, 3uestion marks and dogs. #ake one
person
responsible !or sales and pro'tability !or each product or group o! products.
C7$ Sell 3ore 1=ectively: 9ocus single-mindedly on upgrading the quality
o! your
sales e8ort. *ire more selectively, train more thoroughly, and manage more
pro!essionally. 0ales are the li!eblood o! the business.
C:$ 1liminate the &ottlenec"s: denti!y the !actors that determine how
!ast you
achieve your goals o! sales and pro'tability. Poncentrate on alleviating these
bottlenecks
in every part o! your business.
C;$ <eengineer Your Comany: Pontinually seek ways to streamline and
simpli!y
the process o! producing and selling your products and services. Learn to
delegate,
outsource, downsize and eliminate the compleHity o! everything you do.
C?$ Pum , Your Pro-ts: $valuate every product and service to
determine eHactly
how much net pro't you are actually earning !rom each item you sell. +esolve
to
discontinue products and services that are not as pro'table as others, and
channel more
resources into those products that are the mainstays o! your business.
CI$ Commit To Continuous Imrovement: nstall the :aizen process o!
Dcontinuous bettermentE into your company. 9ind out how your customer
de'nes
DqualityE and then continually strive to eHceed eHpectations.
D@$ Concentrate On The Core: denti!y the most important products and
services
you o8er, and then !ocus on getting better and better selling more and more
o! them.
2robably I6J o! the market potential !or your core products has not yet been
tapped.
<5. /ocus On <esults: Poncentrate your best energies and resources on
getting the
most important results possible !or your company. 0et priorities in every area
and then
work single-mindedly to complete the !ew tasks that are more valuable than
everything
else put together.
)he most important part o! the )urbostrategy is not what you learn, but the
actions you
take, and how quickly you take those actions. )here is a direct relationship
between how
!ast you 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 !or the rest o! your career.
Qust do itL
The Turbostrategy Process