ity, return-on-investment,

and return-on-sales.
Are they increasing or decreasing?
If your goal is to build a great company, why isnt your company already
great?
More capital required for mpower networ!
"hich of your products or services is selling well today?
My sales s!ills and mpower #etwor!
"hich of your products and services are the most pro$table?
My sales s!ills and mpower #etwor!
"hich ones are doing poorly?
"hich ones do you lose money on?
%rin!ing too much alchohol
Is your current business situation, positive or negative, in any area?
More capital required
&emporary or part of a long-term trend?
'ongterm
(ow can you !now for sure?
Action
(ow can you $nd out?
)e*oin mpower #etwor! with +IM,-ic! .tri/heus0'i!e (obbs01ro*ect A"2'
"hat should you then do?
Ma!e 345,555 $rst 65 days
Clarity Is the Key
"hy has your business been successful in the past?
My study of business
"hat have you done well in the past that has been responsible for your
success to date?
My study of business, mar!eting and sales.
"hat are the most important s!ills and competencies that your company
possesses today?
My study of business, mar!eting and sales.
"hat are the very best products and services that you o7er right now?
My study of business, mar!eting and sales.
'oo! at the people around you. "ho are your most valuable people?
A8( .hoppette and 9niversity of Maryland +A( money
"ho are no longer as valuable as before?
"ho represents a net loss or detriment to your business?
+e prepared to as! and answer the brutal questions.
The Customer Is the King
"ho are your best customers today?
:oreans, single males, and business opportunity see!ers
"hat and where are your best mar!ets?
Asia and the internet
"hat do your customers li!e the most about what you do for them?
Ma!e them happy
"hat do they compliment the most of what you o7er or do for them?
Ma!e them happy, tal! alot and very smart in business and life
"hat is your number one area of customer satisfaction?
.ales and presentation
"hat do your customers li!e the least about what you do?
"hen I;m angry or tired
"hat do they complain about the most?
#ot having what they want available for purchase
"hat is it that you sell that your customers and potential customers prefer to
buy somewhere else, rather than from you?
Identify Your Personal Strengths
'oo! at yourself honestly. "hat are your own personal best s!ills, qualities
and abilities?
nglish, .tudying, strategic planning, mar!eting and sales
"hat are the most important things that you do at wor!, and for your
company?
%aily facility improvement, strategic planning, mar!eting and sales
"hat are the most valuable contributions you ma!e personally to your
business?
Increase sales, customer service, and customer retention
Start Where You Are:
4. "hat is wor!ing the very best in your business today?
.ales and mar!eting
"hat parts of your business ma!e you the happiest?
Mar!eting
<. "hats not wor!ing in your business?
"aiting on capital
"hat causes you the most aggravation and frustration?
"aiting on capital
6. "hat are your most important products and mar!ets?
Me =sales,mar!eting,english s!ills>, mpower #etwor! in th 9.,.outh
:orean mar!ets
"hat accounts for the largest portion of your revenues?
A8( and mpower #etwor!
?. "ho are your most important people?
A8( and mpower #etwor!
"ho are the people who account for most of your results?
A8( and mpower #etwor!
@. "hat are your special talents and s!ills?
"hat is it you do that accounts for most of your success?
A. "hat are the ma*or changes ta!ing place in your mar!et?
"hat changes should you ma!e to compensate for them?
B. "hat are your most treasured assumptions about your people, customers,
mar!ets,
products, services and yourself?
"hat if one of them wasnt true?
"hat would you do then?
Imagine Starting Over
Cero-based thin!ing requires that you apply this DscraperE mentality to every
part
of your business. Fou do this by as!ing this !ey questionG
Is there anything that you are doing in your business that,
knowing what you now know, you wouldnt start up again today, if you
had it to do over?
Instead of struggling to determine how you might modify, change, $H, revise,
improve or alter some business function, you instead as!,
DIf I was not doing this today, would I start it up again today, knowing what I
now know?
&o start with, is there any product or service that you would not bring to the
mar!et, o7er or sell, if you had to do it over again, starting today?
.ince I5J of your products and services are probably going to be obsolete
within the neHt @ years, there
may be products and services you are o7ering today that, because of
changed mar!et
conditions, you would not introduce again today, if you had to do it over
again, knowing
what you now know. &hese products or services are prime candidates for
discontinuation
or divestiture.
Is there any person in your business that you would not hire, assign, appoint,
go
to wor! for, or become associated with if you had to do it over again today?
Most of your problems in business will come from attempting to wor! with or
around a diKcult person,
who !nowing what you now !now, you wouldnt get involved with again
today.
"ho does this bring to mind?
Is there any supplier, ban!er or vendor that you are dealing with today that,
!nowing what you now !now, you wouldnt get involved with again today, if
you had to
do it over?
Since many of your business relationshis !ill not !or" out over
time# you
must be reared to continually reevaluate them# esecially if they
are causing you any
roblems or frustrations$
Analy%e Your Customers
Is there any customer that you are selling to or servicing today that, !nowing
what you now !now, you wouldnt ta!e on again as a customer?
Many companies are as!ing this question about their diKcult customers and
deciding to let them go.
.ometimes, one of the smartest things you can do is to D$re your customers.E
ncourage
them to go and deal with someone else who would be more appropriate for
them.
Assess Your &usiness Oerations
Is there any expenditure in your business that you would not authori/e again
if
you had it to do over?
Is there any process, procedure or activity that, !nowing what you
now !now, you wouldnt start up again, or get into, if you were ma!ing the
decision
today, !nowing what you now !now?
Is there any advertising, mar!eting or selling methodology or eHpense that
!nowing what you now !now, you wouldnt start up again today, if you had to
do it
over?
:eep as!ing, D"hats wor!ing?E
and D"hats not wor!ing?E
Pay Attention To The Indicators
Fou can always tell when you are in a /ero-based
thin!ing situation because it
causes you continuous stress, aggravation,
frustration, negativity and unhappiness. Fou
thin! about it continually. 2ften you bring it home at
night and discuss it at the family
dinner table. .ometimes it will even !eep you awa!e
at night.
"henever something is not wor!ing, or not wor!ing
out the way you eHpected,
or causing you stress, $nancial losses, aggravation,
or irritation, as!,
Knowing what I now know, would I get into this
again today if I had to do it over?
If the answer is D#oLE then your neHt question is
How do I get out and how fast?
The 'ecision Is Inevitable
(eres an important point. If something is not wor!ing, eventually you will
have to
get out of it. Fou will have to let the person go, discontinue the product or
service,
eliminate the activity or eHpense, or change the method of operation. It is
only a matter of
time. It is not going to get better all by itself. And every single eHecutive who
$nally
decides to get out of an unhappy situation says afterwards, DI should have
done this a
long time agoLE
Aly This Aroach Continually
Practice %ero(based thin"ing as a )go for!ard* method for the rest
of your
business career$ Aly it to everything you do# to every art of your
business# every single
day$ Aly it to every roduct# service# rocess# rocedure and
erson and be sure that#
"no!ing !hat you no! "no!# you would get into it again
today if you had to do it over $
If not# get out# and as fast as you can$
'ra! A +ine ,nder the Past:
4. Imagine starting over again in every part of your businessM is there
anything you
are doing that, !nowing what you now !now, you wouldnt start up again
today?
<. Is there any person in your business life who, !nowing what you now !now,
you
wouldnt hire, assign, promote or otherwise get involved with again today,
!nowing what
you now !now?
6. Is there any product or service that, !nowing what you now !now, you
wouldnt
bring to the mar!et again today?
?. Is there any investment that you have made that, !nowing what you now
!now,
you wouldnt ma!e again today?
@. Is there any business activity or process that you are using that, !nowing
what you
now !now, you wouldnt start up again today?
A. Is there any customer or mar!et that, !nowing what you now !now, you
wouldnt
ta!e on or get into again today, if you had it to do over?
B. Is there any career decision that you have made that, !nowing what you
now
!now, you wouldnt ma!e the same way if you had it to do over again today?
Start With The &asics
&he starting point of business analysis is for you to as!G
D"hat business am I in?E
"hat business are you really in?
"hat business are you really, really in?E
I soon reali/ed I was in the Dgoal
achievement businessE =Me &22L
N)O>.
My business was helping people to
achieve their personal and business
goals faster by providing them with
practical ideas
that they could use immediately to get
better results.
&his insight led me from tal!s and
seminars into audio and video
recording,
boo!s, training programs and Internet
based e- learning on a variety of
sub*ects, including the development
and presentation of the &urbostrategy
1rocess.
The Customer As Centeriece
D"ho is my customer?E
"ho is the person who buys from you today? %escribe your customer in
detail.
"hat is the age, income, education, position, attitude, location and interest of
your ideal customer?
Many companies are not eHactly sure of the answer to this question. &hey
have at best an
unclear picture of the psychological and demographic characteristics of their
customers.
"ho will your customer be tomorrow, if current trends continue?
"ho should your customer be, if you want to be successful in the mar!ets of
tomorrow?
"ho could your customer be if you were to change, improve or upgrade your
product or service
o7erings?
'etermine What You Sell
Four neHt question isG D"hy does my customer buy?E
"hat value, bene$t, result or di7erence does your customer see! or eHpect
to en*oy as a result of doing business
with you?
2f all the various bene$ts that your products or services o7er your
customers,
what do your customers consider to be more important than anything else?
%o you !now?
Four ability to de$ne and promote this unique bene$t is the real !ey to
competitive
advantage and mar!et success. Fou neHt question isG
D"hat do we do especially well?E
"hat do you do better than any of your competitors?
"here are you superior?
Pustomers only buy from a particular company because they feel that, in
some way, that company o7ers something
that is superior to that of any other o7ering.
"hat is your area of eHcellence?
Qac! "elch of Oeneral lectric was famous for saying, DIf you dont have
competitive advantage, dont compete.E (is philosophy was that Oeneral
lectric would
be number one or number two in every mar!et segment in which they
competed, or they
would get out of that mar!et.
Are you number one or number two in your mar!et?
Pan you be?
"hat is your plan to achieve this mar!et position?
'e-ne Your Cometitor
&he neHt question, which we will deal with eHtensively in Phapter 45, isG
D"ho is your competition?E
2nce you have identi$ed your competition, you must as!,
D"hy does your potential customer buy from your competition, rather than
from you?E
"hat value or bene$t does he perceive that he receives from someone else
that he does not feel he
receives from you?
(ow could you o7set this perception?
Set Clear .oals
In performing an eHamination of your business, you must as! continually,
D"hat are my goals?E
"hat are you trying to accomplish?
If you are clear about your goals, what is holding you bac! from achieving
them?
Fou need clear, written, measurable, time-bounded goals for every part of
your
business and personal life. Fou need short-term, medium-term and long-term
goals. ach
goal must be in writing, with plans for its accomplishment. Fou cant hit a
target that you
cant see. Analy/e everything you do in the course of a day or a wee!.
"hat are the <5J of your activities that could account for I5J or more of
your results?
.ometimes, *ust 45J of your activities, if you were to pursue them
aggressively, could account for R5J of your
results.
"hat might they be?
&ecome Action(Oriented
"hat actions should you ta!e immediately in response to the answers to
these
questions?
"hat is the very $rst thing you should do right now to increase your sales
and
improve your mar!et position?
Another good question you should as! yourself isG
D"hy am I in business at all?E
"hy do you eHist?
"hat social purpose does your company serve?
"hat loss would occur to society if you ceased to do business altogether?
Imagine that you had to go in front of a government tribunal each year to
*ustify
your continued eHistence.
"hat would you say to the tribunal in terms of how you serve, help, or ma!e
a
di7erence in the lives or wor! of your customers to *ustify staying in
business?
&hese are !ey questions that you need to as! and answer for your business
on a
regular basis. Fou should as! and answer these questions for yourself, as
well. If you are
unclear or inaccurate in your answers to any of them, the health of your
enterprise could
be in *eopardy.
Conduct A &asic &usiness Analysis:
4. "hat are your goals for your business?
"hat are you trying to accomplish?
<. "ho is your ideal customer?
%escribe him or her accurately.
6. "hy does your customer buy from you?
"hat special bene$ts or advantages do you o7er that your competitors
dont have?
?. "hat business are you really in?
%escribe your business in terms of what you do for your customer, what
results you get.
@. "hat are the <5J of your activities that could account for I5J of your
results?
A. "hat is your competitive advantage, your Darea of eHcellence?E
In what ways are you superior to R5J or more of your competitors?
B. "hat speci$c, measurable actions should you ta!e 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 !ey areas of your business life. 2nce you !now your goals in each area,
you can then
decide upon the best steps you can ta!e to get there.
The .OSPA 3odel
Fou can use the O2.1A Model as a guide for strategic planning. &hese $ve
!ey
thin!ing tools form the basis for successful business operations.
&egin With The 1nd In 3ind
&he $rst letter, DOE stands for .oals. &hese are the ultimate results that you
want
to achieve. Four goals are the end targets that you aim at throughout your
business year
or planning period. Four goals are your sales, pro$ts, growth rate, mar!et
share, or
percentage of return on assets, equity, investment or sales. Ooals are always
measurable.
"hat are yours?
Stes on the Staircase
&he second letter, D2E stands for Ob4ectives. &hese are the steps you will
have to
ta!e to achieve your goals. &hey are li!e the rungs on the ladder to get to the
top.
Four business ob*ectives can be speci$c rates of return from advertising,
levels of sales of
certain products and services, number of items shipped and billed, monies
collected and
cost levels for certain activities. A lower defect rate or a higher sale amount
per customer
can be ob*ectives on the path to achieving the main corporate goals. "hat
are your
interim ob*ectives?
5o! to .et There
&he letter D.E stands for Strategies. &hese are the di7erent approaches that
you
can ta!e to achieve your ob*ectives and reach your goals. 8or eHample,
achieving a
speci$c level of pro$tability will require producing and selling speci$c
quantities of
products or services to a speci$c mar!et in a speci$c way. &here are many
di7erent ways
to go about accomplishing these ob*ectives. &he way you choose is your
strategy, and
may determine the success or failure of your enterprise.
%o you produce, mar!et, sell, deliver yourself, or do you outsource some part
of
the process? %o you sell direct, via retail, direct mail, catalog or Internet? %o
you charge
more, charge less, up-sell, cross-sell or discount? %o you enter certain
mar!ets and
abandon others? "hat is your strategy? Is it wor!ing?
Planning /or Success
&he letter D1E stands for Plans. &hese are your blueprints for achieving your
goals. Four plans are composed of step-by-step lists of eHactly what you will
do, day by
day, to get from wherever you are to wherever you want to go. 1lans are
always bro!en
down by sequence and priority.
.ome things have to be done before others can be done. .ome things are
more important
than others in achieving the goal or ob*ective. "hen your plan is organi/ed by
sequence
and priority, you can accomplish much more in less time.
+usiness life consists almost entirely of pro*ects, one after the other. A pro*ect
can
be de$ned as a multi"task #ob, a *ob made up of many small *obs, each of
which has to be
done properly to complete the larger tas!. Four ability to plan, organi/e and
complete
multi-tas! *obs, ever larger and more compleH, is the most important single
element of
your success, in any $eld.
'evelo a &ias for Action
&he last letter in the O2.1A process, DAE, stands for Actions. &hese are the
speci$c tas!s
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 tas! must be clear, measurable and time bounded. It must
be assigned to
a speci$c person who is quali$ed to perform the tas! correctly, on time and
on budget.
$hat gets measured gets done!
/ocus on Pro-tability
&he central purpose of &urbostrategy is to boost your cash Sow and pro$ts,
and
to increase your return on the money invested in your business. &he aim of
strategy is to
generate a higher level of cash Sow and pro$tability than you would reali/e
without the
strategy, or with your previous strategy. In short, it is to make more money
than you are
ma!ing right now from the way that you are doing business today.
&he essential resources of people, money and talent that you need to
succeed in
your business are always limited. &hey must be focused and concentrated for
maHimum
results. &his is what a good strategy enables you to do.
/our Ways to Imrove Your &usiness
.etting strategy requires ma!ing hard decisions in four areasG 8irst, you must
decide what you are going to do more of.
"hats wor!ing?
"hat is selling well?
"hat products, services and activities are the most pro$table?
.econd, you must decide what you are going to do less of.
"hats not wor!ing?
"hat contributes very little to growth and pro$tability?
"hat should you discontinue or eliminate based on the realities of todays
mar!et and todays customers?
"hat can you do to reduce costs in areas where they contribute very little to
results?
&hird, what are you going to start doing that youre not doing today?
"hat new products, services or activities should you introduce if you want to
increase your sales and
pro$tability, or improve and streamline your activities?
8inally, what are you going to stop doing altogether?
)emember, the critical resources of 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 of business results.
Clarity is the !ey to strategic success. &he more time you ta!e to be
absolutely
clear about who you are, and what you want to accomplish, the more
successful and
pro$table you will be.
'ecide 12actly What You Want:
4. "hat are your speci$c, measurable long-term goals for sales and
pro$tability in
your business?
<. "hat are the speci$c ob#ectives of sales, staKng, production, delivery and
customer development that you will have to achieve to accomplish your
goals?
6. "hat are the various ways that you can meet your ob*ectives and achieve
your
goals?
"hat is the best strategy for you in todays mar!et?
?. "hat should you do more of and really focus on to increase your sales and
pro$tability?
@. "hat should you do less of, based on your current eHperience?
"hats not wor!ing?
A. "hat should you start doing that you are not doing today?
"hat opportunities are available to you?
B. "hat should you discontinue, and stop doing altogether, so that you can
free up
resources for more pro$table activities?
Chater /ive 0 'esign Your Ideal /uture
$e have been endowed with the capacity and the power to create desirable
pictures within
and to %nd them automatically printed in the outer world of our
environment! =Qohn
Mc%onald>
.ome time ago, I conducted a strategic planning session for the senior
eHecutives
of a 34B< billion dollar company. &he organi/ation was going through a period
of
considerable turbulence, change, competition and new government
regulation. &here had
been lay-o7s, $rings, downsi/ing and divestments. My clients were the top
eHecutives
who had survived the recent turmoil, and the blood letting was not yet over.
In these
circumstances, they were both worried about the future and distracted in the
present.
Create A /ive Year /antasy
&o get them centered and focused, I began the strategy session with a
process that
I call )Ideali%ation$* In this process, which you can use yourself, I had the
members of
the top team create a D$ve year fantasy.E
D'et us put aside the current situation for the moment,E I suggested.
DInstead, tell
me what this company would loo! li!e $ve years from now if it was perfect in
every
respect?E
&his eHercise forced them to ta!e their attention away from the problems of
the
present and focus their thin!ing on the possibilities of the future.
As we went around the room, each person contributed an idea about what
the
company would loo! li!e if it were perfect. I wrote each idea on a Sip chart
and taped
the pages onto the walls where everyone could see them. In less than half an
hour, we
generated <B ideal descriptions.
"e then voted on these ideali/ed goals and organi/ed them by priority. "e
ended up
with a series of clear ob*ectives, including Dhighly pro$table, tremendous
mar!et
reputation, high stoc! price, top leadership, fabulous customer service, great
place to
wor!, best management, rapid growth rate and top reputation in the
industry,E among
others.
Thin" In Terms Of Possibilities
I then as!ed them, DAre these goals possible?E 2ne by one, they agreed that
all of
these goals were possible in $ve years. &hey might not be achievable in one
or two years,
but in $ve years, every one of them could be accomplished with will and
determination.
"e came out of that session with everyone revitali/ed and committed to
wor!ing
on achieving one or more of those $ve-year fantasies. 2ver the neHt two
years, the
company completely reorgani/ed. &hey did more of some things and less of
others. &hey
started doing things that they had not done in the past, and they stopped
certain activities
altogether. &hey too! complete control of their corporate destiny and
changed it.
1eter %ruc!er once wrote, D"e greatly overestimate what we can accomplish
in one
yearM but we greatly underestimate what is possible for us in $ve years.E
Thin" About The /uture
/uture(orientation is a !ey element of strategic planning and strategic
thin!ing.
It is a ma*or responsibility of leadership and top people in every area. 2nly
the leader can
thin! about the future. 2nly the leader can plan for the future. &here is no
one else in the
organi/ation who can do it, and if the leader does not thin! about and plan for
the future
as an ongoing part of his *ob, it will not be done. As they say in Alas!a, D2nly
the lead
sled dog ever gets a di7erent view.E
(ow often and how well the top people in the company thin! about the future
largely
determines the success or failure of the business. DIf you dont !now where
youre going,
any road will ta!e you there.E
&he development of the quality of future-orientation requires that you
continually
create an ideal image of your company some time in the future. You ro4ect
for!ard in
your mind 6(7 years and imagine that your comany is erfect in
every resect$ You
decide e2actly ho! much you !ould be selling and earning at that
time$ You imagine
your ideal stoc" rice# your ideal reutation in the mar"et# your ideal
!or" situation and
your ideal human environment$
&ac" /rom The /uture Thin"ing
2nce you have a clear picture of your
ideal future, you then return mentally
to
your current situation and thin! about
what you would have to do, starting
today, to turn your future vision into a
current reality. &his is called, Dbac!
from the future thin!ing.E
Ma!e a list of all the things that would
have to happen for you to reali/e your
fantasy sometime in the future. It is
ama/ing how your perspective
changes when you
loo! bac! from the future, eHactly as if
you were loo!ing bac! from the top of
the
mountain to yourself down in the
valley, and seeing the eHact route you
will have to
follow to get to the top.
+eaders 5ave 8ision
In 6655 studies of leaders reviewed by Qames Mac1herson, searching for the
common denominators of leadership throughout the ages, the one quality
that all the
studies had in common was the quality of vision. 'eaders have visionM non-
leaders do
not.
&o become a visionary requires that you develop the ability to imagine,
de$ne,
articulate, share and inspire other people with an eHciting picture of the
future. Fou get
everyone in your business committed to ful$lling this vision, and to wor!ing
toward it
every day. &his is the !ey to leadership, and to building a great company.
Aristotle wrote, )We become !hat !e reeatedly
do$* Fou become a leader by thin!ing
the way leaders thin!, both in your business and in your personal life. Fou
become a
leader by thin!ing about the future, and how you can ma!e it a present
reality.
9o!# 3ore Than 1ver
+ut it is in times of rapid change, and turbulence in the mar!et, that an
eHciting
vision of the future becomes more important that ever before. A vision can
become the
force that binds people together into a solid team. It can give meaning and
purpose to
wor!, even when times are tough and pay increases are not possible.
&here are many ways you can approach the development of a vision for your
organi/ation. Perhas the very best vision for your comany includes
t!o "ey
comonents$ /irst# it is focused on your customers and on doing
something for them that
changes and imroves their lives or !or" in some !ay$ Second# it
contains a commitment
to excellence # to be the very best at doing !hat you do for your
customers$ These are the
"eys to vision$
Four vision is to Dbe the bestLE at the most important thing that you do for
your
customers. Four vision is to serve your customers in such a way that you are
seen as
superior in a particular product, service or activity. Imagine that you could be
!nown as
outstanding in any one thing that you do for your customers. "hat would it
be? Four
answer can be the starting point of a vision for your business that changes
your future
completely.
Your Personal 8ision
Fou need a vision for yourself as well. 1ro*ect forward @ years in your
imagination. If your future were perfect in every way, what would it loo! li!e?
If your
income, your position in your company or $eld, your family life, your health,
your *ob
and every part of your life were ideal in every way, how would it be di7erent
from today?
2nce you are clear about your vision, for yourself and for your business, the
only question you as! is,
&ow do I make it a reality?
&op people thin! continually in terms of how? &hey thin! in terms of ta!ing
action, of what can be done.
2nce you have clari$ed your vision, and determined what you will have to do
to ma!e it a reality, you then do something every day to move you toward
the creation of
your ideal future. Fou ta!e complete control of your destiny. As %ruc!er wrote,
D&he very
best way to predict the future is to create it.E And the starting point is vision.
'esign Your Ideal /uture:
4. "hat is your vision for your company? 1ro*ect forward and imagine that
your
business was ideal in every way. "hat would it loo! li!e?
<. "hat is your vision for yourself? If your life and career were ideal in every
way,
what would it loo! li!e?
6. Ideali/e in each area of your business. If your products, services, sale and
pro$tability were perfect, what would they loo! li!e?
?. Ideali/e with regard to your people. If your sta7 were ideal in terms of
s!ills,
abilities, personalities and results, how would they be di7erent from today?
@. Imagine that a ma*or maga/ine was going to write a story about your
company.
"hat would you want them to say?
A. 1ro*ect forward $ve years and then loo! bac! to today from that vantage
point.
"hat would you have to change today to create your ideal future?
B. In what one area would it be most helpful to sales and pro$tability if your
company were widely !nown as Dthe best?E "hat steps could you ta!e
immediately to
begin earning that reputation?
Create A 3ission Statement:
4. %etermine your personal reasons for doing what you do. "hat gives you a
sense
of meaning and purpose in life?
<. %ecide upon the 6-@ !ey values upon which your company is based.
Involve other
people in the discussion.
6. %e$ne the actions and behaviors that people will engage in, both inside
and
outside the company, that are consistent with your values.
?. %esign a mission statement, an ideal description of what your company
wants to
accomplish for its customers sometime in the future.
7$ "rite out a list of your values, and what they mean, plus your mission
statement,
and share them with your sta7 and customers.
:$ Preate a personal mission statement for your career. "hat do you want to
accomplish, and how do you want to be !nown?
;$ Preate a mission statement for yourself and your family. "hat is it that you
want
to accomplish or achieve with your family in the years ahead?
Chater Seven 0 <einvent Your Organi%ation
'very man of genius sees the world at a di(erent angle than his fellows!
=(aveloc! llis>
Qac! "elch of Oeneral lectric once said, DIf 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.E
In times of turbulence, you should be prepared to reinvent your business as
often
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
8or greater perspective, stand bac! and view your business as a bundle of
resources and
capabilities, li!e a $re hose of talent and ability that can be aimed in many
directions to
achieve di7erent results. Instead of limiting yourself to seeing your business
as an
organi/ation that is designed to perform speci$c functions, producing and
selling certain
products and services, thin! of it as being capable of doing a variety of things
completely
di7erent from what you are doing today.
The .reat /ire
As you thin! about reinventing your business, imagine that your company
burned
to the ground while you were away. "hen you arrived at the scene, you found
that all
your sta7 were safe and standing around in the par!ing 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 of your products and services would you begin producing
and
distributing right away, and which ones would you not start up again,
!nowing what you
now !now?
12amine 1very <elationshi
If you were starting your business over again today, completely free from any
encumbrances of the past, which customers would you call $rst, and which
ones not at
all? "hich vendors, suppliers, ban!ers or other people would you immediately
get in
touch with, and who would you call later, if at all? "hat would you do $rst?
"hat would
you do second? "hat would you not start up again, !nowing what you now
!now?
<einvent Your Sta= <elationshis
#ow, lets go bac! to the par!ing lot. 'et us assume that all of your people
are
safe and standing around waiting for instructions. "hich of them would you
ta!e across
the street with you to the new business, and which ones would you leave in
the par!ing
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
If you could reinvent your business, what would you do more of? "hat would
you
do less of? "hat would you start doing that you are not doing today? "hat
would you
stop doing altogether?
In reinventing your organi/ation, as! yourself, D"hat are my most important
talents, s!ills, abilities and core competencies, and what else could I do with
them? "ho
are my best people and what else could they do? :eep thin!ing about how
you would
reinvent your business if you were starting over. &his will !eep you on the
cutting edge of
creativity and innovation.
Thin" In Terms of 12cellence
&he !ey questions in reinvention are, D"hat could you be absolutely eHcellent
at
doing in todays mar!et?E "here could you be the best? "here could you
achieve worldclass
quality? "here could you be better than R5J of your competitors? D
&he mar!et only pays eHtraordinary rewards for eHtraordinary products and
services. "here and how could you do what you do in an eHtraordinary
fashion?
<einvent Your Career
8inally, thin! about reinventing yourself and your career on a regular basis, as
well. If you were starting over again today, what would you do more of, less
of, start or
stop? "hat would you get into or get out of?
If you were starting your career over again, what additional !nowledge and
s!ills
would you want to have? "hat can you do, starting today, to acquire those
!ey s!ills?
Imagine that you could do a variety of *obs. "hat would you really li!e to do
with your
life?
.ince you were going to have to reinvent yourself regularly throughout your
career, it is
very important that you thin! about how you would do it well in advance of
when it
becomes necessary.
<einvent Your Organi%ation:
4. If you were starting your business over again today, what would you do
di7erently?
<. If you were starting your career over again today, what would you get
into, or out of?
6. If your business burned to the ground and you could only o7er one of
your products or services, which one would it be?
?. "ho are your most important customers, the ones who you would
immediately move to ta!e care of, if you were starting over?
@. "ho are your most important people, both inside and outside of your
business?
A. "hat are your most important contacts and business relationships, the
ones you would want most to preserve if you were starting over?
B. If money were no ob*ect, what steps would you ta!e 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 of your business.
All wor!, all
performance, all results come from them, both as individuals and when they
wor!
together in teams of some !ind. &he managers output is the output of his or
her team,
and of the individual team members.
In business, people come $rst. Qobs, activities and results are only achieved
after
the right people are in place. Qim Pollins says in his boo!, )ood to )reat, that
the !ey to
building a great business is, D$rst, get the right people on the bus, and
second, get the
wrong people o7 the bus.E Any other approach is bound to fail.
T!o Key >ualities to +oo" /or
&he best people have two qualities. 8irst, they can be counted on to get the
*ob
done, to get it done well and to get it done in a timely fashion. .econd, 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 as!, D:nowing what I now !now, would I hire, assign
or
promote this person again, if I had to do it over?E
If the answer is D#o,E then your neHt question is, D(ow do I remove or replace
this
person, and how fast can I do it?E
"hat do you want and need those results to be?
2nce you are clear about the results you desire, set speci$c measures of
performance on each *ob, and each tas!. (ow will you and the candidate
!now whether
or not the *ob has been done properly? )emember, D"hat gets measured,
gets done.E
And, DIf you cant measure it, you cant manage it.E
Select the <ight Peole:
4. )an! every one in your company on a scale from 4-45, with 45 being the
highest, on their competence at their *ob.
<. )esolve to build a team of highly motivated, competent and positive
employees to
help you get the results you need.
6. &hin! through each new *ob or hire carefully in advance. "rite out the
description
clearly.
?. Interview at least 6 candidates for a new position. Interview the candidate
you
li!e at least 6 times, in three places, and have him or her interviewed by at
least 6
other people.
@. Phec! references carefullyM see! the fatal Saw or wea!ness that would
ma!e the
candidate unsuitable.
A. (ire only positive, li!able peopleM they ma!e the best team players.
B. )esults are everythingM continually emphasi/e and eHplain eHactly what
results are
eHpected from each person.
Chater 9ine 0 3ar"et 3ore 1=ectively
+ecause its purpose is to create a customer, the business enterprise has two
, and only
these two" basic functions- marketing and innovation! .arketing and
innovation produce
results/ all the rest are costs! =1eter %ruc!er>
All business strategy is ultimately mar!eting strategy. "henever you are
worried about the
health or future of your business, get bac! to thin!ing about mar!eting and
selling. 8ocus
single-mindedly on increasing sales and revenues. Putting eHpenses and
controlling costs
is an ongoing necessity, but you cant cost-cut your way to business success.
Fou have to
increase cash Sow, and this only comes from selling more of your products or
services.
9o matter ho! challenging or cometitive the economy aears# as
much as
?@A of your mar"et is still untaed$ &here are almost always hidden
opportunities
around you. Four ability to uncover and ta!e advantage of those opportunities
is the true
test of competence as an eHecutive or as a business.
'ecide Who You Are and What You 'o
0peciali*ation requires that you focus on speci$c products or services,
speci$c
mar!ets or speci$c customer needs. Fou must $ght the temptation to try to
o7er too many
products and services to too many customers in too many areas. Fou must
speciali/e,
both in your own mind, and in the mind of your customer.
"hat is it exactly that your product or service is designed to achieve, avoid or
preserve for your customer? "hat are the core competencies or proprietary
methods or
technologies that enable you to speciali/e in this area? "hat speci$c problem
or need can
you solve or satisfy for your customer? And of all the di7erent results you can
get with
your business, where do you, should you, could you speciali/e?
See Yourself As A &usiness
In your personal life, you should as! the same questions of yourself as well.
"hat
is your personal area of speciali*ation? In what way is your wor! superior to
your
competitors? "hat is the ideal position or area of responsibility for you to
apply your
talents? "here should you be concentrating your energies to get the very
best results and
greatest rewards possible?
specially, you should continually as! yourself, $hat is it that I do very, very
well?
"hat is your personal area of eHcellence? "hat could it be? "hat should it
be?
+oo"ing Ahead
'oo!ing into the future of your business or industry, what new competencies
do you need
to develop to lead your $eld in the months and years ahead? "hat additional
!nowledge
and s!ills do you need to acquire? "hat are those few tas!s, which, if you did
them in an
eHcellent fashion, would have the greatest positive impact on your career? In
what areas
could be paid the very most for the application of your special talents and
abilities? &his
question is *ust as relevant for you as it is for your company.
3ar"et 3ore 1=ectively:
4. %ecide today to dominate your $eld, to be the best at mar!eting and
innovation in your product or service area. "hat is the $rst step you should
ta!e?
<. %etermine your area of speciali/ation, by product or service, mar!et or
type of customer. "hat should it be? "hat could it be?
6. (ow do you di7erentiate your product or service from those of your
competitors? In what ways are you superior to anyone else? "hat could it be?
"hat
should it be?
?. "hat are you best mar!et segments? "here are your highest probability
customers? "ho can bene$t the most from using what you sell?
@. (ow can you organi/e your business so that you concentrate your
mar!eting and selling e7orts on those customers who can buy and pay faster
than any
others?
A. "hat additional products, services, !nowledge or capabilities will you
need to dominate your mar!ets in the months and years ahead?
B. "hat should you immediately start doing more of, less of, start or stop
to ad*ust to the current mar!et?
Chater Ten 0 Analy%e Your Cometition
1oncentrate your strengths against your competitors relative weakness!
=+ruce
(enderson>
Kno! Your 1nemy
(ere then is a question for youG "ho is your competition? Hactly? Four
choice of
competitor determines almost everything you do in your mar!et, *ust as the
choice of an
adversary determines everything a general does in the process of conducting
military
operations.
'etermine Their &uying 3otives
2nce you have determined why it is that people buy from you, you must then
as!
and answer, D"hy do people buy from my competitors?E "hat value or
bene$ts are your
potential customers convinced that they receive when buying from your
competitor rather
than from you?
"hat are your competitors !ey strengths? "hat are his areas of
speciali/ation,
di7erentiation, segmentation and concentration? "hat does your competitor
have that
you dont have? "hat does he o7er that you dont o7er? "hat is he doing
more of or
better than you? "hat is his unique selling proposition?
O=set Their Advantages
As you study your competitors, loo! for ways to o7set or neutrali/e the
advantages
their customers perceive them to have. "hat are your competitors
wea!nesses? (ow can
you eHploit these wea!nesses? "hat do you do better than they do? In what
ways are
your products or services superior to their o7erings? In what areas do you
have a distinct
advantage over your competitors? "hat can you do to o7set your
competitors strengths
and maHimi/e your advantages? (ow can you better position yourself against
your
competitors in a tough mar!et?
&he more time you ta!e to study and understand why and how your
competitors
are successful in selling to your customers, the more li!ely it is that you will
$nd an
opportunity to ta!e away their mar!et share. As .un &/u says in he 2rt of
$ar, DIf you
!now both yourself and your enemy, you will prevail in a hundred battles.E
Analy%e Your Cometition:
4. "ho is your competition for what you sell, with the eHact customers you
are
trying to attract?
<. "hat would happen if you changed your o7erings in such a way that you
targeted
a di7erent group of customers, one that would be easier to sell to?
6. "hy do your potential customers buy from your competitors? "hat
advantages do
they perceive?
?. "hat is your competitors unique selling proposition? "hat special feature
or
bene$t does his product or service have that yours does not?
@. In what ways are you superior to your competitors? "hat can you o7er
that they
cannot? (ow can you emphasi/e this advantage in your sales and mar!eting
e7orts?
A. "here is your competitor vulnerable? (ow could you eHploit this to your
advantage?
B. (ow could you alter your mar!eting strategy in such a way that you could
achieve
dominance in a particular area, with a speci$c customer or mar!et segment?
Chater 1leven 0 'o It &etter# /aster# Cheaer
he man who comes up with a means for doing or producing almost
anything better,
faster or more economically has his future and his fortune at his %ngertips!
=Q. 1aul Oetty>
&he most important single determinant of your success is your area of
competitive
advantage. It is more important than all other factors. It determines the rise
or fall of your
business, your level of pro$tability, your position in the mar!etplace 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, 'ac! of clear competitive
advantage
leads quic!ly to diminished sales, loss of mar!et share, lower pro$tability,
price cutting,
and ultimately to business failure.
Your 5igh Concet
Four business was started because you or your company had an idea for a
product or service that was di7erent or better from other products and
services. It o7ered
to satisfy the same need or solve the same problem better, faster or cheaper
than anyone
or anything else then available.
Four ability to di7erentiate your product in the minds and hearts of your
customers is the !ey to winning them in the $rst place, and then !eeping
them after the
initial sale. &o buy from you, a customer must be convinced that, all things
considered,
your o7ering is di7erent and better than anything else that is currently
available at the
same price. Qac! "elch was famous for saying, DIf you dont have competitive
advantage,
dont competeLE
Three Areas of 'i=erentiation
&o succeed in a tough mar!et, what you sell must be superior to your
competitors o7erings in at least three ways. It must be better# faster#
cheaer# and easier
to use in some !ay that ma"es it more attractive than rival roducts
or services$ It must be
sold more professionally or serviced with greater sensitivity, speed or
eKciency. It must
be better in at least three areas.
2ne of your !ey *obs in strategic thin!ing is to identify the three areas where
you are
better and then to emphasi/e those areas of superiority in all your mar!eting
and sales
(ow could you achieve operational eHcellence in your business, or some part
of your
business, in such a way that you could be the low-cost provider in your
mar!et? (ow
could you dramatically reduce your costs of 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 of
innovative technology leading to the production of high quality products
and services.
Pompanies li!e Mercedes and )oleH fall into this category, as does .ony and
'eHus.
Pustomers are willing to pay a premium for a brand name that represents
high quality and
cutting-edge technology. "here are there opportunities for you to distinguish
your
products or services by using your imagination to become the quality leader
in your $eld?
Close to the Customer
&he third area 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 !now and understand them better than others.
1roviders of
speciali/ed services, such as consulting $rms, law $rms and accounting $rms
fall into this
category.
In what ways could you develop higher levels of trust and credibility with your
customers? "hat could you do to demonstrate to your customers that you
really care
about them and their interests? &his strategy can o7er a brea!through
opportunity,
especially in the sale of eHpensive products and services where resales and
referrals are
possible.
Pic" Your Targets
&o lead your $eld and achieve higher levels of pro$tability, you have to be
outstanding in one of these three areas and very good in the other two. 2ne
of the most
important decisions you ma!e is to choose your area of competitive
advantage, and then
to dedicate your company to achieving it.
Strive /or Sueriority
Four area of eHcellence is the !ey to your success in a competitive
mar!etplace.
&his is where your product or service stands out in comparison to your
competitors. It is a
value or bene$t that you o7er that no one else o7ers. "ith regard to your
products or
services, what is it? "hat could it be? "hat should it be?
Four area of superiority is de$ned as an area of performance where your
product
or service is superior to that of your competitors. &his performance di7erence
is
signi$cant enough that your customer will buy it, and even pay you more for
it. In what
way does your product perform better, in terms of getting results that your
customer cares
about, than your competitors? (ow could you improve the performance of
your products
or services in some meaningful way?
8inally, your uni3ue selling proposition is something that you and only you
o7er
to your customers, and is something that they really care about. #o one else
does as well
as you do in this area. #o one else achieves the same bene$t or result. "hat
is your
unique selling proposition? "hat could it be?
+oo" Into Yourself
2n a personal level, you must continually as! these questions of yourself.
"hat is your
personal area of eHcellence? "here are you superior to your competitors?
"hat is your
unique selling proposition? In what ways do you do your *ob better or faster
than others?
"hat is it that you and only you do in an outstanding fashion for your
company? "hat
could it be? "hat should it be?
1erhaps the most important area of superiority you can develop is your ability
to
do your *ob quic!ly and well, in an eHcellent fashion, consistently and
dependably every
time. &his is the !ey to success as an individual in a competitive mar!etplace.
'o It &etter# /aster# Cheaer:
4. In what ways are your most important products or services superior to
those of
your competitors?
<. "hat is your recogni/ed Darea of eHcellence?E If you were to conduct a
survey,
what would people say that your company does especially well?
6. In what ways are your products or services faster to acquire, use and en*oy
than
your competitors?
?. "hat is your unique selling proposition? "hat is it that your products or
services
o7er that no other company can match?
@. In what ways are your products or services cheaper to buy and use, or
achieve
superior $nancial results for your customers for the same cost?
A. If you were !nown for being outstanding in any one area of your product or
service o7erings, what one distinction would have the greatest positive
impact on your
sale and pro$tability?
B. 'ist the three areas where your products are, or can be, superior to any of
your
competitors. "hat is your plan to achieve this area of mar!et superiority?
"hat should
you do $rst?
What 'o You SellB
&he $rst part of the mar!eting miH is your 4roduct or service. Always de$ne
your
product or service in terms of what it DdoesE for your customers, versus what
it Dis.E (eres
the question, DIs your product or service, as you are o7ering it today, ideally
suited for
your current mar!et and customers?E
5o! 3uch 'o You ChargeB
&he second part of the mar!eting miH is your 4rice. Is your price the right
price for what
you are selling? .hould you change your price in some way? .hould you
increase it,
decrease it, combine your price with other items, or add items to your price?
.hould you
change your terms or o7er something di7erent for the same price?
'ouble Your PriceB
Is there any place in your business that
you could increase your prices and still hold onto your mar!et?
5o! 'o You Sell ItB
(ow are you currently promoting and selling your product or service? "hats
wor!ing?
"hats not wor!ing? .hould you change your methods of advertising,
mar!eting, 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 after, when I thin! about the e7ectiveness of advertising, I always as!,
DIs
your phone ringing?E
Where 'o You SellB
&he fourth element of the mar!eting miH is the 4lace. &his is the speci$c
location where
the sale of your product ta!es place. "here eHactly do you sell your product
today? %o
you sell in homes, oKces or in your own retail establishment? %o you sell in a
particular
city, state or nationwide? %o you sell in stores or by direct selling or by direct
mail? Most
importantly, should you change the place at which you o7er your products?
A change in the location where you o7er your product or
service could change the direction of your business. "hat could it be?
12amine Your Assumtions
"henever you have diKculties selling a suKcient quantity of your product or
service, you should eHamine all of your assumptions in the areas of product,
price,
promotion and place. Fou should be willing to consider the possibility that
your method
is completely wrong in one or more of these areas.
It often happens that a single change in one of the D1sE in the mar!eting miH
can
change the entire nature of your business, boost your results, increase your
pro$tability
and move you toward mar!et leadership. :eep an open mind.
The Ans!ers Are Changing
"hat is the correct mar!eting miH for you to sell the very most at the highest
cost, and
earn the greatest pro$t? "hat assumptions are you going on that
may no longer be true?
Change Your 3ar"eting 3i2:
C$ +e prepared to challenge every aspect of your mar!eting, especially if it is
not
wor!ing as well as before. "hat areas cause you the greatest frustration and
dissatisfaction?
D$ "hat eHactly do you sell, de$ned as what it DdoesE for your customers,
versus
what it Dis?E
6$ "hat prices do you charge? (ow could you change the way you charge to
ma!e
buying from you more attractive?
E$ (ow do you promote your product? Pould there be better ways of
advertising
your products or services that would give you better results?
7$ (ow do you sell your product or service? Is every person who deals with
your
customers fully trained in every !ey result area of selling?
:$ "here do you sell your product or service? .hould you be eHploring other
locations or methods of sale?
;$ .hould you change more than one of the elements of the mar!eting miH at
the
same time? Phallenging mar!et conditions often call for bold departures from
the methods
of the past, especially if they are no longer wor!ing.
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 of your prospective customers? "hat words could you own
if you were
to reorgani/e and redirect your mar!eting e7orts?
As an eHercise, imagine one of your prospects meeting with one of your
customers. Imagine that your customer called you and as!ed you what you
would li!e
him to say to your prospect to convince your prospect to buy from you?
If you could put together a Dcheat sheetE with the eHact words or phrases
that you
would li!e your customer to leave in the mind of your prospect, what words
would you
choose? "ould you choose words li!e excellent 3uality, high integrity, friendly
service,
nice people, 3uick responses to problems, easy to work with, great prices?
(ow do you want
to be described by your customers and potential customers? 2f all the words
and phrases
that customers could use to describe your products and services, and your
company,
which would be the most helpful for you and your business?
What Is Your &randB
(ow are you described and thought about by others when you are not there?
"hat is
your personal brand? "hat is your reputation? (ow do other people thin! and
tal! about
you, both as a person and as a contributor to the organi/ation?
Position Your Comany /or Success
4. "hat is your companys reputation in your mar!et? (ow do customers and
competitors thin! and tal! about you?
<. "hat words do people use when describing your products or services to
others?
6. If you could DownE certain words that apply to your company, your
products or
services, which words would you choose?
?. "hat words, if they were automatically associated with your company,
would
have the greatest positive e7ect on your sales and pro$tability?
@. "hat changes would you have to ma!e to assure that every customer
contact
reinforced the message that you wanted to send to your customers about
doing business
with you?
A. "hat are the most important promises that you ma!e to your prospects to
get
them to buy from you for the $rst time? %o you !eep these promises after the
sale?
B. "hat are the most positive things that your customers say about dealing
with your
company? (ow could create a system to assure that more customers say
these things?
Hamine your complete range of products and services, especially the newer
ones,
and as!, D"hich of these has the potential to be a big seller?E "hat would
you have to do
or invest in o help ma!e it a ma*or source of sales and revenues?
:eep as!ing yourself, DIf I had not already committed time and money to this
product, !nowing what I now !now, would I start investing in it again today?E
Apply the .+9 concept to yourself and your career. Fou have several areas of
talent and ability, core competencies, eHperience, !nowledge and education.
"hat are
your cash cows, the s!ills that are central to your value to the organi/ation?
"hat are your Dstars,E the emerging areas of activity, or new s!ills and
!nowledge
that can ma!e you eHtremely valuable in the future?
"hat are your potential areas of great success? "hat are the pro*ects,
responsibilities and areas of opportunity, which, if you eHploit them fully, can
enable you
to move ahead more rapidly in your career?
8inally, what are the DdogE areas of your wor! life? &hese are the tas!s or
s!ills
that you may have mastered in the past, but which distract you from your
future. &hese
are the *obs and activities that ta!e up a lot of time, but which are nowhere
near as
valuable as other things you could be doing. "hat are they?
'evelo Strategic &usiness ,nits
4. +egin today to view each product or service as a separate business,
responsible
for generating a certain amount of pro$t every month.
<. Oroup your di7erent products or services by similar characteristics, similar
customers, or similar mar!ets.
6. "hat are the cash cows of your business? "hat are the core products or
services
that are essential to your overall pro$tability?
?. "hat can you do today to safeguard and nurture your cash cows to assure
that
they continue contributing sales and cash Sow far into the future?
@. "hat are the DstarsE of your business? "hat are the products that are
selling well,
increasing in mar!et share, and generating high pro$ts?
A. "hat could you do to increase the sales and pro$tability of your stars?
B. "hat are the Dquestion mar!sE of your business? "hich of your current
products
or services should you discontinue, !nowing what you now !now?
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 of what it does, and how it bene$ts your
customer. (ow
does it improve his or her life or wor!? 2f all the bene$ts that a customer
en*oys from
purchasing your product or service, what is the primary bene$t, the one thing
that you
o7er that ma!es you superior to any other competitor in the mar!etplace? %o
you !now
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 chec! from 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 face to face with the prospective customer?
Who Is Your CustomerB
&he neHt part of the question is DTo !homB*
5o! 3uch Are You .oing To ChargeB
Is there any price you would raise, lower or modify in some
way?
Collecting Payment
&he neHt question is How is it going to be paid for? %o you require
payment
in full, in advance? %o you require a deposit when the sale is made and with
the balance
to be paid at a later time on certain terms? %o you o7er credit or $nancing?
specially,
what do your competitors do?
2ften a change in the way you charge, or in your pricing structure, can
dramatically increase your sales. "hat could you do di7erently in todays
mar!et that
would ma!e it easier or more attractive to buy your product or service?
'elivering The .oods
&he $nal part of the question is How is going to be delivered
satisfactorily?
"hat is the eHact process of getting the product or service to your customer
in such a
way, and at such a level of quality, that the customer both buys from you
again and
recommends you to others?
Sell 3ore 1=ectively:
4. "hat is the eHact sales process necessary to sell your product or service,
from the
$rst customer contact through to the close of the sale? %o you !now? (ow
could it be
improved?
<. "hat must your prospective customer be convinced of before he chooses
your
product over that of your competitor?
6. If money were no ob*ect, what special results or bene$ts do you o7er in
your
sales e7orts that ma!e your product more desirable than any other available?
?. "hat is your process for recruiting salespeople? "hat media do you use?
"hat
levels of education and eHperience do you require?
@. "hat !ind of a compensation system do you have for salespeople? "hat is
it
based on? (ow could it be improved so that it motivates better sales
performance?
A. (ow much of your business comes from referrals from happy customers?
(ow
could you increase the number of referrals you get as a percentage of your
business?
B. "hy arent your sales twice as high already? "hat sales e7orts could you
ma!e to
tap into that I5J of the mar!et that has never heard of you?
/ollo! the /ormula
D"hy am I not at that goal already?E "hat is holding you
bac!? "hat is the constraint, cho!epoint or bottlenec! that sets the speed on
how fast you
achieve your speci$c goals of sales, cash Sow or pro$tability in your
business?
'et us return to my earlier question, D"ould you li!e to double your sales and
double your income?E If your answer is DyesE, then why havent you done it
already? "hy
arent your sales twice as high? "hy arent your pro$ts twice as high? "hat is
holding you
bac!? "hat is constraining you? "hat is the limiting factor?
Identify Your Personal Constraints
&hin! about your personal life and goals as will. As! yourself, D"hat are my
most
important goals? "hy am I not there already? "hat is it within me that is
holding me
bac!?E
Is it the lac! of a particular quality, attribute or s!ill that sets the speed at
which I
achieve my goals? Is it a particular attitude or belief that is holding me bac!?
And most
important, what could you do immediately to alleviate your !ey constraints,
starting today?
1liminate the <oadbloc"s:
4. .et clear, measurable goals for sales and pro$tability. #ow as!, D"hat
determines
the speed at which I achieve these goals?E
<. 9se sentence completion eHercises. .ay, D"e could double our sales if it
*ust
wasnt for..E and $ll in the blan!.
6. Identify the ma*or bloc! to your achieving your most important goal? (ow
could
you remove it?
?. 'oo! within your company for the limiting factors that hold you bac!. "hat
are
the cho!epoints in your business?
@. Assess each person in each !ey position. Are they competent and capable
of
doing what needs to be done for you to be successful?
A. 2nce you have identi$ed your !ey constraint to business success, as!,
D$hat else
is holding us bac!?E :eep as!ing, D"hat else?E until you get to the real
problem.
B. In your own career and personal life, what sets the speed at which you
achieve
your goals? 'oo! within yourself for the answers.
3a"e /aster# &etter 'ecisions
"henever they bring you a problem
or a question, always as!, D"hat do you thin! we should do?E
<eengineer Your Comany:
4. 1ractice simpli$cation as a way of life. In what areas of wor! has your life
become
too complicated, and what can you do to get it bac! under control?
<. 1ractice /ero-based thin!ing with every step and every activity. If you were
not
now doing it this way, would you start doing it this way again today?
6. &a!e a single compleH process or *ob and ma!e a list of every step from
beginning
to end. (ow could you reduce the number of steps by 65J the $rst time
through?
?. "hat tas!s or activities could you delegate to someone who can do them
B5J as
well as you?
@. "hat parts of your business could you outsource to companies or
individuals who
speciali/e in that area?
A. "hat parts of your wor! could you eliminate altogether with little or no
impact on
your bottom line?
B. "hat parts of your personal life do you need to streamline and simplify?
"hen are
you going to do it?
Pum , Your Pro-ts:
4. %o a complete pro$t analysis on every product and service you o7er. )an!
them
from highest to lowest.
<. Identify the <5J of your products that account for I5J of your sales.
"hich are
they?
6. Identify the <5J of your products and services that account for I5J of
your
pro$ts. Are they the same as your answer to T<?
?. After deducting all direct and indirect costs, which are your most pro$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 of costs and pro$tability.
A. Attribute a percentage of all general and administrative costs to each
product or
service you sell. &his eHercise often turns pro$ts into losses.
B. If your company was facing serious $nancial shortages, which products or
services
would you focus your energies on, and which would you discontinue? &hin!
about doing
it now.
It Starts /rom The To
ncourage each person to $nd ways to do their *obs better, faster, and easier.
Allow them the freedom to eHperiment with improvements, with no fear of
criticism if
they dont wor!. .ometimes the greatest improvements occur as the result of
a series of
small eHperiments that were not successful.
Fou should stand bac! regularly and eHamine every product, service and
process.
(ow could you improve it in some way? (ow could you ma!e it better, faster
or cheaper?
(ow could you get the same or better results faster, or at a lower cost? #ever
be satis$ed
or content with eHisting quality levels. Always loo! for ways to improve upon
them.
+rainstorm with your team regularly to generate ideas to cut costs, improve
quality,
increase sales and boost pro$ts. ncourage everyone to thin!, all day long,
about how
they can do their *obs better. Ma!e this commitment to continuous
improvement a part of
your corporate culture.
Commit to 12cellence
If everyone in your mar!etplace referred to you and your o7erings as the
best in the business, what !ind of a di7erence would that ma!e in your sales
and
pro$tability?
"ith that as your goal, what would you have to do, starting today, to assure
that
everyone refers to you as Dthe bestE sometime in the future? "hat could you
do, starting
today, to begin this process? "hat is the $rst step you should ta!e?
>uality and Pro-tability
D"hich of these companies do you feel is the best in this particular industry?E
(eres the questionG If such a survey were done among potential customers
for what you
sell, where do you feel your company would ran! in such a comparison?
"ould you be
ran!ed as Dthe best,E or somewhere lower? "hat could you do to move
higher in the
ran!ings? "hat one step could you ta!e immediately?
5o! 'o Customers 'e-ne >ualityB
What 'o Customers WantB
Commit to Continuous Imrovement:
4. (ow do your customers de$ne quality? "hat is most important to them in
choosing your product or service?
<. (ow do you ran! against your competitors on a scale from one to ten? (ow
could
you improve your ran!ing immediately?
6. .et up a reward system in your company for suggestions and ideas to
improve
quality and achieve greater customer satisfaction?
?. %o you have quality and performance standards for people, products and
activities
in your company? %oes everyone !now what they are?
@. "hat company do you thin! is the best in your business, the most
respected and
pro$table? (ow could you benchmar! yourself against them?
A. "hat one step could you ta!e immediately to improve customer
satisfaction with
your company?
B. "hat could you do personally to upgrade and improve the quality of your
performance in the most important things you do in your *ob?
'e-ne Your Core &usiness
"hat is your core business? If everything else was stripped away, what would
be left at
your core?
Identify the <5J of opportunities available to you today that can be
responsible for
I5J of your sales and revenues in the years ahead. &hese will almost always
be
eHtensions of your current business, your core competencies, and your areas
of
eHcellence. Four choice of the opportunities available to you largely
determines the
future of your business. "hat are they?
/ocus On 8alue
"hat are the <5J of your wor! activities that account for I5J of your
personal
value and your contribution to your company? If you *ust doubled the amount
of time you
spend on the <5J of your high value tas!s, and discontinued the I5J of low
value,no
value tas!s that you do, you could become most of the most productive
people in your
company. &hese are your core tas!s.
"hat are the <5J of problems, aggravations, and irritations that account for
I5J of
your headaches in your wor!? "ho are the most diKcult people, customers
or situations
that you have to deal with each day? "hat can you do today to minimi/e or
eliminate
them?
+ased on this I5,<5 analysis, what steps can you ta!e immediately to
improve,
increase, and strengthen your core products, services, customers and
activities? "hat
should you do $rst?
Where 'o You 12celB
In what areas of your products and services are you, or could you be better
than
R@J of your competition?
Advance Planning
&his 1itadel is your core business. "hat is yours? "hatever it is, practice
D.cenario
1lanningE on a regular basis. As! yourself, D"hat is the worst thing that could
possibly
happen in my mar!et today?E
"hatever your answer is to that question, begin ma!ing provisions today to
assure
that you will be able to survive, should it occur.
Your Personal Citadel Strategy
As an individual, you must be clear about your personal core competencies,
as
well. (ow could you improve in each one of them? "hat core competencies
will you
need to lead your $eld in the years ahead? "hat is your plan to acquire the
core
competencies of tomorrow?
Concentrate On the Core:
4. "hat is your core business? "hat products and services are most
responsible for
your success today?
<. "hat are your core competencies? "hat is it that your company does
eHtremely
well?
6. "hat are the worst possible things that could happen to your business in
the neHt
year? "hat are your plans to deal with them, should they occur?
?. "hat are your non-core products, services or activities? "hat would
happen if you
discontinued them entirely?
@. "ho are your core customers, and what are you doing to assure that they
never
leave you?
A. "ho are your core people, the ones who are most important for the
survival and
growth of your business? "hat is your strategy to !eep them?
B. "hat are your core functions? "hat are the things you do that are central
to your
*ob? "hat activities are peripheral?
/our Key >uestions
"hen considering buying a product or service, customers have four questions
that
must be answered before going aheadG
4. "hat does it cost?
<. "hat do I get for the money?
6. (ow fast do I get the bene$ts you promise?
?. (ow sure can I be that I 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 of 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 of
Dquality.E
Uuality can be de$ned as, Dthe percentage of times that your product or
service
does what you say it will do, and continues to do it.E
A quality rating of 455J, or perfect quality, means that what you sell always
delivers on your promises. A quality rating of R5J means that your product
gets the
desired or promised results nine out of ten times.
+ittle Things 3ean A +ot
8ederal Hpress has determined that if its quality rating was RR.R5J, they
would
ma!e mista!es in the delivery of ??,555 envelopes a day. At RR.R5J quality,
8ederal
Hpress would collapse under its own weight of confusion. &hat is how
important quality
is in a business.
Four personal success is also determined by how consistently and dependably
you
perform and deliver on your responsibilities and promises. Fou should
continually as!
yourself, D"hat results are eHpected of me?E
Four level of e7ectiveness is always de$ned by others, by what they need
from
you. 'eaders are always as!ing, D"hat does this situation need of me?E 2nce
they are
clear, they concentrate their energies in those areas.
As! yourself, D2f all the results I can accomplish, what are the most valuable
and
important in terms of my rewards and my future?E
Imroving Your Ability to .et <esults
(ere are seven of the best questions you can as! and answer to improve your
ability to get resultsG
4. D"hy am I on the payroll?E "hat eHactly have you been hired to
accomplish?
Ma!e sure that what you are doing every day is the answer to this question.
<. D"hat are my highest value tas!s and activities?E 2f all the things that you
could be doing during the day, what are the activities that you engage in that
contribute
the greatest value to yourself and your company?
6. D"hat are my !ey result areas?E "hat are the core competencies and !ey
tas!s
that you must absolutely, positively do in an eHcellent fashion to produce the
most
important and valued results eHpected of you? )esolve today to become a
Ddo-it-toyourself-
pro*ect.E 8or the rest of your career, dedicate yourself to continually learning
and
improving in those areas where top performance is most vital to your
success. Oetting
better at your !ey tas!s is one of the best time saving techniques of all.
?. D"hat can I and only I do that, if done well, will ma!e a real di7erence?E
&here is always something that only you can do that can ma!e a signi$cant
di7erence to
your life and your wor!. If you dont do it, it wont get done. #o one else will
do it for
you. +ut if you do it, and you do it well, it can ma!e a signi$cant di7erence.
"hat is it?
@. D"hat one s!ill, if I developed and did it in an excellent fashion, would
have
the greatest positive impact on my career?E &here is always one s!ill that if
you developed
it and did it well, would have a greater and more positive impact on your
career than any
other single s!ill. Four *ob is to identify that s!ill and then put your whole
heart into
becoming absolutely eHcellent in that area, whatever it is.
A. D"hat one result, if I achieved it consistently for my customers, would
most
satisfy those customers and bring me the greatest number of additional
customers?E "hat
must your customer be absolutely convinced that he or she will receive from
you in order
to buy your product or service and to recommend it to his or her friends? (ow
could you
improve your quality and service in that area?
B. &he $nal question for personal success, number seven, is thisG D"hat is the
most valuable use of my time right now?E 9se this question as your guiding
star
throughout the day. :eep as!ing, What is the most valuable use of my
time, right
now?
All 'ay +ong
If you could only perform one tas! all day long, what one thing could you do
that
would contribute more value to your life and wor! than any other single tas!
or activity?
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13POW1< 91TWO<K &I3GP<OSP1<ITY
T1A3GP<OH1CT AWO+FFFF
Whatever your ans!er# ut mastery of that tas" at the to of your
list of riorities$
'edicate yourself to getting better and better doing the one thing
that can ma"e more of a
di=erence than anything else$ This is the "ey to getting suerb
results at every stage of
your life and career$
Once more# here then are the DC "ey ideas in the Turbostrategy
rocess:
4. Start Where You AreG %o a complete and honest analysis of your
business as it is
today, including the current status of your sales, revenues, pro$tability and
the mar!et
situation around you.
D$ 'ra! A +ine ,nder the Past: Apply /ero based thin!ing to every part of
your
business. If you were not doing it today, knowing what you now know, would
you get
into it again today?
6$ Conduct A &asic &usiness Analysis: Hamine your products, services,
processes,
and activities as if you were loo!ing at them for the $rst time. +e prepared to
as! yourself
the Dbrutal questionsE about each one of them.
E$ 'ecide 12actly What You Want: .et clear, written, measurable goals
and
ob*ectives for yourself in each part of your business.
7$ 'esign Your Ideal /uture: 1ro*ect forward 6-@ years and imagine that
your
business was ideal in every respect. "hat would it loo! li!e? "hat could you
do, starting
today, to ma!e that future vision into a current reality?
:$ Create A 3ission Statement: %ecide eHactly what it is you want to
accomplish
for others with your business. Ma!e it measurable. Ma!e it eHciting. .hare it
with
everyone.
;$ <einvent Your Organi%ation: Imagine starting your business or career
over again
today, with your present !nowledge and eHperience. "hat would you do
di7erently?
?$ Select the <ight Peole: 8ully R@J of your success in business will be
determined by the people you choose to wor! with and for. &a!e the time to
ma!e good
personnel decisions.
I$ 3ar"et 3ore 1=ectively: &hin! through every part of your mar!eting
strategy by
applying the four principles of speciali/ation, di7erentiation, 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 prefer to buy from them. (ow could
you o7set
this perceived advantage?
CC$ 'o It &etter# Cheaer# /asterG Pontinually see! ways to serve and
satisfy your
customer in a superior fashion to any one else in your mar!et. #ever stop
raising the bar
on yourself.
CD$ Change Your 3ar"eting 3i2: Imagine being your own management
consultant
and as!ing yourself hard questions about the appropriateness of your
product, price,
place and promotion in todays mar!et.
C6$ Position Your Comany /or SuccessG %etermine how you want to be
thought
about and tal!ed 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
of four categoriesG cash cows, stars, 3uestion marks and dogs. Ma!e one
person
responsible for sales and pro$tability for each product or group of products.
C7$ Sell 3ore 1=ectively: 8ocus single-mindedly on upgrading the quality
of your
sales e7ort. (ire more selectively, train more thoroughly, and manage more
professionally. .ales are the lifeblood of the business.
C:$ 1liminate the &ottlenec"s: Identify the factors that determine how
fast you
achieve your goals of sales and pro$tability. Poncentrate on alleviating these
bottlenec!s
in every part of your business.
C;$ <eengineer Your Comany: Pontinually see! ways to streamline and
simplify
the process of producing and selling your products and services. 'earn to
delegate,
outsource, downsi/e and eliminate the compleHity of everything you do.
C?$ Pum , Your Pro-ts: valuate every product and service to
determine eHactly
how much net pro$t you are actually earning from each item you sell. )esolve
to
discontinue products and services that are not as pro$table as others, and
channel more
resources into those products that are the mainstays of your business.
CI$ Commit To Continuous Imrovement: Install the :ai/en process of
Dcontinuous bettermentE into your company. 8ind out how your customer
de$nes
DqualityE and then continually strive to eHceed eHpectations.
D@$ Concentrate On The Core: Identify the most important products and
services
you o7er, and then focus on getting better and better selling more and more
of them.
1robably I5J of the mar!et potential for your core products has not yet been
tapped.
<4. /ocus On <esults: Poncentrate your best energies and resources on
getting the
most important results possible for your company. .et priorities in every area
and then
wor! single-mindedly to complete the few tas!s that are more valuable than
everything
else put together.
&he most important part of the &urbostrategy is not what you learn, but the
actions you
ta!e, and how quic!ly you ta!e those actions. &here is a direct relationship
between how
fast you move on a new idea and how li!ely it is that you will ever move on a
new idea.
)esolve today to become intensely action-oriented for the rest of your career.
Qust do itL
The Turbostrategy Process