What could you do to respond more efectively to them?
Learn Korean faster, Networking with O!" mem#ers, $roduce%sell Learn Korean Now product& Cash Flow Is Everything Look at your cash 'ow and levels of pro(ta#ility from each product, service and area of activity) *re your pro(ts going up or down? Up *re they on #udget or going sideways? Look at the percentages) *naly+e your return,on,e-uity, return,on, investment, and return,on,sales) *re they increasing or decreasing? "f your goal is to #uild a great company, why isn.t your company already great? /ore capital re-uired for 0mpower network Which of your products or services is selling well today? /y sales skills and 0mpower Network Which of your products and services are the most pro(ta#le? /y sales skills and 0mpower Network Which ones are doing poorly? Which ones do you lose money on? 1rinking too much alchohol "s your current #usiness situation, positive or negative, in any area? /ore capital re-uired 2emporary or part of a long,term trend? Longterm 3ow can you know for sure? *ction 3ow can you (nd out? 4e5oin 0mpower Network with 6"/%7ick 8tri+heus9Like 3o##s9$ro5ect *WOL What should you then do? /ake :;<,<<< (rst =< days Clarity Is the Key Why has your #usiness #een successful in the past? /y study of #usiness What have you done well in the past that has #een responsi#le for your success to date? /y study of #usiness, marketing and sales) What are the most important skills and competencies that your company possesses today? /y study of #usiness, marketing and sales) What are the very #est products and services that you ofer right now? /y study of #usiness, marketing and sales) Look at the people around you) Who are your most valua#le people? *>3 8hoppette and University of /aryland 6*3 money Who are no longer as valua#le as #efore? Who represents a net loss or detriment to your #usiness? 6e prepared to ask and answer the #rutal -uestions) The Customer Is the King Who are your #est customers today? Koreans, single males, and #usiness opportunity seekers What and where are your #est markets? *sia and the internet What do your customers like the most a#out what you do for them? /ake them happy What do they compliment the most of what you ofer or do for them? /ake them happy, talk alot and very smart in #usiness and life What is your num#er one area of customer satisfaction? 8ales and presentation What do your customers like the least a#out what you do? When "?m angry or tired What do they complain a#out the most? Not having what they want availa#le for purchase What is it that you sell that your customers and potential customers prefer to #uy somewhere else, rather than from you? Identify Your Personal Strengths Look at yourself honestly) What are your own personal #est skills, -ualities and a#ilities? 0nglish, 8tudying, strategic planning, marketing and sales What are the most important things that you do at work, and for your company? 1aily facility improvement, strategic planning, marketing and sales What are the most valua#le contri#utions you make personally to your #usiness? "ncrease sales, customer service, and customer retention Start Where You Are: ;) What is working the very #est in your #usiness today? 8ales and marketing What parts of your #usiness make you the happiest? /arketing @) What.s not working in your #usiness? Waiting on capital What causes you the most aggravation and frustration? Waiting on capital =) What are your most important products and markets? /e Asales%marketing%english skillsB, 0mpower Network in th U8%8outh Korean markets What accounts for the largest portion of your revenues? *>3 and 0mpower Network C) Who are your most important people? *>3 and 0mpower Network Who are the people who account for most of your results? *>3 and 0mpower Network D) What are your special talents and skills? What is it you do that accounts for most of your success? E) What are the ma5or changes taking place in your market? What changes should you make to compensate for them? F) What are your most treasured assumptions a#out your people, customers, markets, products, services and yourself? What if one of them wasn.t true? What would you do then? Imagine Starting ver Gero,#ased thinking re-uires that you apply this HscraperI mentality to every part of your #usiness) Jou do this #y asking this key -uestionK Is there anything that you are doing in your business that, knowing what you now know, you wouldnt start up again today, if you had it to do over? "nstead of struggling to determine how you might modify, change, (L, revise, improve or alter some #usiness function, you instead ask, H"f " was not doing this today, would " start it up again today, knowing what I now know? 2o start with, is there any product or service that you would not #ring to the market, ofer or sell, if you had to do it over again, starting today? 8ince M<N of your products and services are pro#a#ly going to #e o#solete within the neLt D years, there may #e products and services you are ofering today that, #ecause of changed market conditions, you would not introduce again today, if you had to do it over again, knowing what you now know) 2hese products or services are prime candidates for discontinuation or divestiture) "s there any person in your #usiness that you would not hire, assign, appoint, go to work for, or #ecome associated with if you had to do it over again today? /ost of your pro#lems in #usiness will come from attempting to work with or around a diOcult person, who knowing what you now know, you wouldn.t get involved with again today) Who does this #ring to mind? "s there any supplier, #anker or vendor that you are dealing with today that, knowing what you now know, you wouldn.t get involved with again today, if you had to do it over? Sin!e many of your "usiness relationshi#s will not wor$ out over time% you must "e #re#ared to !ontinually reevaluate them% es#e!ially if they are !ausing you any #ro"lems or frustrations& Analy'e Your Customers "s there any customer that you are selling to or servicing today that, knowing what you now know, you wouldn.t take on again as a customer? /any companies are asking this -uestion a#out their diOcult customers and deciding to let them go) 8ometimes, one of the smartest things you can do is to H(re your customers)I 0ncourage them to go and deal with someone else who would #e more appropriate for them) Assess Your (usiness #erations "s there any expenditure in your #usiness that you would not authori+e again if you had it to do over? "s there any process, procedure or activity that, knowing what you now know, you wouldn.t start up again, or get into, if you were making the decision today, knowing what you now know? "s there any advertising, marketing or selling methodology or eLpense that knowing what you now know, you wouldn.t start up again today, if you had to do it over? Keep asking, HWhat.s working?I and HWhat.s not working?I Pay Attention To The Indi!ators Jou can always tell when you are in a +ero,#ased thinking situation #ecause it causes you continuous stress, aggravation, frustration, negativity and unhappiness) Jou think a#out it continually) Often you #ring it home at night and discuss it at the family dinner ta#le) 8ometimes it will even keep you awake at night) Whenever something is not working, or not working out the way you eLpected, or causing you stress, (nancial losses, aggravation, or irritation, ask, Knowing what I now know, would I get into this again today if I had to do it over? "f the answer is HNo&I then your neLt -uestion is How do I get out and how fast? The )e!ision Is Inevita"le 3ere.s an important point) "f something is not working, eventually you will have to get out of it) Jou will have to let the person go, discontinue the product or service, eliminate the activity or eLpense, or change the method of operation) "t is only a matter of time) "t is not going to get #etter all #y itself) *nd every single eLecutive who (nally decides to get out of an unhappy situation says afterwards, H" should have done this a long time ago&I A##ly This A##roa!h Continually Pra!ti!e 'ero*"ased thin$ing as a +go forward, method for the rest of your "usiness !areer& A##ly it to everything you do% to every #art of your "usiness% every single day& A##ly it to every #rodu!t% servi!e% #ro!ess% #ro!edure and #erson and "e sure that% $nowing what you now $now% you would get into it again today if you had to do it over & If not% get out% and as fast as you !an& )raw A -ine .nder the Past: ;) "magine starting over again in every part of your #usinessP is there anything you are doing that, knowing what you now know, you wouldn.t start up again today? @) "s there any person in your #usiness life who, knowing what you now know, you wouldn.t hire, assign, promote or otherwise get involved with again today, knowing what you now know? =) "s there any product or service that, knowing what you now know, you wouldn.t #ring to the market again today? C) "s there any investment that you have made that, knowing what you now know, you wouldn.t make again today? D) "s there any #usiness activity or process that you are using that, knowing what you now know, you wouldn.t start up again today? E) "s there any customer or market that, knowing what you now know, you wouldn.t take on or get into again today, if you had it to do over? F) "s there any career decision that you have made that, knowing what you now know, you wouldn.t make the same way if you had it to do over again today? Start With The (asi!s 2he starting point of #usiness analysis is for you to askK HWhat #usiness am " in?I What #usiness are you really in? What #usiness are you really, really in?I " soon reali+ed " was in the Hgoal a!hievement "usinessI A/e 2OO& Q04!B) /y #usiness was helping people to achieve their personal and #usiness goals faster #y providing them with practical ideas that they could use immediately to get #etter results) 2his insight led me from talks and seminars into audio and video recording, #ooks, training programs and "nternet #ased e, learning on a variety of su#5ects, including the development and presentation of the 2ur#ostrategy $rocess) The Customer As Center#ie!e HWho is my customer?I Who is the person who #uys from you today? 1escri#e your customer in detail) What is the age, income, education, position, attitude, location and interest of your ideal customer? /any companies are not eLactly sure of the answer to this -uestion) 2hey have at #est an unclear picture of the psychological and demographic characteristics of their customers) Who will your customer #e tomorrow, if current trends continue? Who should your customer #e, if you want to #e successful in the markets of tomorrow? Who could your customer #e if you were to change, improve or upgrade your product or service oferings? )etermine What You Sell Jour neLt -uestion isK HWhy does my customer #uy?I What value, #ene(t, result or diference does your customer seek or eLpect to en5oy as a result of doing #usiness with you? Of all the various #ene(ts that your products or services ofer your customers, what do your customers consider to #e more important than anything else? 1o you know? Jour a#ility to de(ne and promote this uni-ue #ene(t is the real key to competitive advantage and market success) Jou neLt -uestion isK HWhat do we do especially well?I What do you do #etter than any of your competitors? Where are you superior? ustomers only #uy from a particular company #ecause they feel that, in some way, that company ofers something that is superior to that of any other ofering) What is your area of eLcellence? Rack Welch of !eneral 0lectric was famous for saying, H"f you don.t have competitive advantage, don.t compete)I 3is philosophy was that !eneral 0lectric would #e num#er one or num#er two in every market segment in which they competed, or they would get out of that market) *re you num#er one or num#er two in your market? an you #e? What is your plan to achieve this market position? )e/ne Your Com#etitor 2he neLt -uestion, which we will deal with eLtensively in hapter ;<, isK HWho is your competition?I Once you have identi(ed your competition, you must ask, HWhy does your potential customer #uy from your competition, rather than from you?I What value or #ene(t does he perceive that he receives from someone else that he does not feel he receives from you? 3ow could you ofset this perception? Set Clear 0oals "n performing an eLamination of your #usiness, you must ask continually, HWhat are my goals?I What are you trying to accomplish? "f you are clear a#out your goals, what is holding you #ack from achieving them? Jou need clear, written, measura#le, time,#ounded goals for every part of your #usiness and personal life) Jou need short,term, medium,term and long,term goals) 0ach goal must #e in writing, with plans for its accomplishment) Jou can.t hit a target that you can.t see) *naly+e everything you do in the course of a day or a week) What are the @<N of your activities that could account for M<N or more of your results? 8ometimes, 5ust ;<N of your activities, if you were to pursue them aggressively, could account for S<N of your results) What might they #e? (e!ome A!tion*riented What actions should you take immediately in response to the answers to these -uestions? What is the very (rst thing you should do right now to increase your sales and improve your market position? *nother good -uestion you should ask yourself isK HWhy am " in #usiness at all?I Why do you eList? What social purpose does your company serve? What loss would occur to society if you ceased to do #usiness altogether? "magine that you had to go in front of a government tri#unal each year to 5ustify your continued eListence) What would you say to the tri#unal in terms of how you serve, help, or make a diference in the lives or work of your customers to 5ustify staying in #usiness? 2hese are key -uestions that you need to ask and answer for your #usiness on a regular #asis) Jou should ask and answer these -uestions for yourself, as well) "f you are unclear or inaccurate in your answers to any of them, the health of your enterprise could #e in 5eopardy) Condu!t A (asi! (usiness Analysis: ;) What are your goals for your #usiness? What are you trying to accomplish? @) Who is your ideal customer? 1escri#e him or her accurately) =) Why does your customer #uy from you? What special #ene(ts or advantages do you ofer that your competitors don.t have? C) What #usiness are you really in? 1escri#e your #usiness in terms of what you do for your customer, what results you get) D) What are the @<N of your activities that could account for M<N of your results? E) What is your competitive advantage, your Harea of eLcellence?I "n what ways are you superior to S<N or more of your competitors? F) What speci(c, measura#le actions should you take immediately in answer to the a#ove -uestions? Cha#ter Four 1 )e!ide E2a!tly What You Want he world has the habit of making way for the man whose words and actions show that he knows where he is going! ANapoleon 3illB 2ur#ostrategy #egins with your deciding eLactly what you want to accomplish in the key areas of your #usiness life) Once you know your goals in each area, you can then decide upon the #est steps you can take to get there) The 0SPA 3odel Jou can use the !O8$* /odel as a guide for strategic planning) 2hese (ve key thinking tools form the #asis for successful #usiness operations) (egin With The End In 3ind 2he (rst letter, H!I stands for 0oals) 2hese are the ultimate results that you want to achieve) Jour goals are the end targets that you aim at throughout your #usiness year or planning period) Jour goals are your sales, pro(ts, growth rate, market share, or percentage of return on assets, e-uity, investment or sales) !oals are always measura#le) What are yours? Ste#s on the Stair!ase 2he second letter, HOI stands for "4e!tives) 2hese are the steps you will have to take to achieve your goals) 2hey are like the rungs on the ladder to get to the top) Jour #usiness o#5ectives can #e speci(c rates of return from advertising, levels of sales of certain products and services, num#er of items shipped and #illed, monies collected and cost levels for certain activities) * lower defect rate or a higher sale amount per customer can #e o#5ectives on the path to achieving the main corporate goals) What are your interim o#5ectives? 5ow to 0et There 2he letter H8I stands for Strategies) 2hese are the diferent approaches that you can take to achieve your o#5ectives and reach your goals) >or eLample, achieving a speci(c level of pro(ta#ility will re-uire producing and selling speci(c -uantities of products or services to a speci(c market in a speci(c way) 2here are many diferent ways to go a#out accomplishing these o#5ectives) 2he way you choose is your strategy, and may determine the success or failure of your enterprise) 1o you produce, market, sell, deliver yourself, or do you outsource some part of the process? 1o you sell direct, via retail, direct mail, catalog or "nternet? 1o you charge more, charge less, up,sell, cross,sell or discount? 1o you enter certain markets and a#andon others? What is your strategy? "s it working? Planning For Su!!ess 2he letter H$I stands for Plans) 2hese are your #lueprints for achieving your goals) Jour plans are composed of step,#y,step lists of eLactly what you will do, day #y day, to get from wherever you are to wherever you want to go) $lans are always #roken down #y se-uence and priority) 8ome things have to #e done before others can #e done) 8ome things are more important than others in achieving the goal or o#5ective) When your plan is organi+ed #y se-uence and priority, you can accomplish much more in less time) 6usiness life consists almost entirely of pro5ects, one after the other) * pro5ect can #e de(ned as a multi"task #ob, a 5o# made up of many small 5o#s, each of which has to #e done properly to complete the larger task) Jour a#ility to plan, organi+e and complete multi,task 5o#s, ever larger and more compleL, is the most important single element of your success, in any (eld) )evelo# a (ias for A!tion 2he last letter in the !O8$* process, H*I, stands for A!tions) 2hese are the speci(c tasks that you are going to complete to carry out the plans to implement the strategies to accomplish the ob#ectives to achieve your goals) 0very important task must #e clear, measura#le and time #ounded) "t must #e assigned to a speci(c person who is -uali(ed to perform the task correctly, on time and on #udget) $hat gets measured gets done! Fo!us on Pro/ta"ility 2he central purpose of 2ur#ostrategy is to #oost your cash 'ow and pro(ts, and to increase your return on the money invested in your #usiness) 2he aim of strategy is to generate a higher level of cash 'ow and pro(ta#ility than you would reali+e without the strategy, or with your previous strategy) "n short, it is to make more money than you are making right now from the way that you are doing #usiness today) 2he essential resources of people, money and talent that you need to succeed in your #usiness are always limited) 2hey must #e focused and concentrated for maLimum results) 2his is what a good strategy ena#les you to do) Four Ways to Im#rove Your (usiness 8etting strategy re-uires making hard decisions in four areasK >irst, you must decide what you are going to do more of) What.s working? What is selling well? What products, services and activities are the most pro(ta#le? 8econd, you must decide what you are going to do less of) What.s not working? What contri#utes very little to growth and pro(ta#ility? What should you discontinue or eliminate #ased on the realities of today.s market and today.s customers? What can you do to reduce costs in areas where they contri#ute very little to results? 2hird, what are you going to start doing that you.re not doing today? What new products, services or activities should you introduce if you want to increase your sales and pro(ta#ility, or improve and streamline your activities? >inally, what are you going to stop doing altogether? 4emem#er, the critical resources of time and money are always scarce) 2he only way you can improve results is #y discontinuing certain activities altogether) Jou can then channel those resources into areas where they yield higher levels of #usiness results) Clarity is the key to strategic success) 2he more time you take to #e a#solutely clear a#out who you are, and what you want to accomplish, the more successful and pro(ta#le you will #e) )e!ide E2a!tly What You Want: ;) What are your speci(c, measura#le long,term goals for sales and pro(ta#ility in your #usiness? @) What are the speci(c ob#ectives of sales, staOng, production, delivery and customer development that you will have to achieve to accomplish your goals? =) What are the various ways that you can meet your o#5ectives and achieve your goals? What is the #est strategy for you in today.s market? C) What should you do more of and really focus on to increase your sales and pro(ta#ility? D) What should you do less of, #ased on your current eLperience? What.s not working? E) What should you start doing that you are not doing today? What opportunities are availa#le to you? F) What should you discontinue, and stop doing altogether, so that you can free up resources for more pro(ta#le activities? Cha#ter Five 1 )esign Your Ideal Future $e have been endowed with the capacity and the power to create desirable pictures within and to %nd them automatically printed in the outer world of our environment! ARohn /c1onaldB 8ome time ago, " conducted a strategic planning session for the senior eLecutives of a :;F@ #illion dollar company) 2he organi+ation was going through a period of considera#le tur#ulence, change, competition and new government regulation) 2here had #een lay,ofs, (rings, downsi+ing and divestments) /y clients were the top eLecutives who had survived the recent turmoil, and the #lood letting was not yet over) "n these circumstances, they were #oth worried a#out the future and distracted in the present) Create A Five Year Fantasy 2o get them centered and focused, " #egan the strategy session with a process that " call +Ideali'ation&, "n this process, which you can use yourself, " had the mem#ers of the top team create a H(ve year fantasy)I HLet us put aside the current situation for the moment,I " suggested) H"nstead, tell me what this company would look like (ve years from now if it was perfect in every respect?I 2his eLercise forced them to take their attention away from the pro#lems of the present and focus their thinking on the possi#ilities of the future) *s we went around the room, each person contri#uted an idea a#out what the company would look like if it were perfect) " wrote each idea on a 'ip chart and taped the pages onto the walls where everyone could see them) "n less than half an hour, we generated @F ideal descriptions) We then voted on these ideali+ed goals and organi+ed them #y priority) We ended up with a series of clear o#5ectives, including Hhighly pro(ta#le, tremendous market reputation, high stock price, top leadership, fa#ulous customer service, great place to work, #est management, rapid growth rate and top reputation in the industry,I among others) Thin$ In Terms f Possi"ilities " then asked them, H*re these goals possi#le?I One #y one, they agreed that all of these goals were possi#le in (ve years) 2hey might not #e achieva#le in one or two years, #ut in (ve years, every one of them could #e accomplished with will and determination) We came out of that session with everyone revitali+ed and committed to working on achieving one or more of those (ve,year fantasies) Over the neLt two years, the company completely reorgani+ed) 2hey did more of some things and less of others) 2hey started doing things that they had not done in the past, and they stopped certain activities altogether) 2hey took complete control of their corporate destiny and changed it) $eter 1rucker once wrote, HWe greatly overestimate what we can accomplish in one yearP #ut we greatly underestimate what is possi#le for us in (ve years)I Thin$ A"out The Future Future*orientation is a key element of strategic planning and strategic thinking) "t is a ma5or responsi#ility of leadership and top people in every area) Only the leader can think a#out the future) Only the leader can plan for the future) 2here is no one else in the organi+ation who can do it, and if the leader does not think a#out and plan for the future as an ongoing part of his 5o#, it will not #e done) *s they say in *laska, HOnly the lead sled dog ever gets a diferent view)I 3ow often and how well the top people in the company think a#out the future largely determines the success or failure of the #usiness) H"f you don.t know where you.re going, any road will take you there)I 2he development of the -uality of future,orientation re-uires that you continually create an ideal image of your company some time in the future) You #ro4e!t forward in your mind 6*7 years and imagine that your !om#any is #erfe!t in every res#e!t& You de!ide e2a!tly how mu!h you would "e selling and earning at that time& You imagine your ideal sto!$ #ri!e% your ideal re#utation in the mar$et% your ideal wor$ situation and your ideal human environment& (a!$ From The Future Thin$ing Once you have a clear picture of your ideal future, you then return mentally to your current situation and think a#out what you would have to do, starting today, to turn your future vision into a current reality) 2his is called, H#ack from the future thinking)I /ake a list of all the things that would have to happen for you to reali+e your fantasy sometime in the future) "t is ama+ing how your perspective changes when you look #ack from the future, eLactly as if you were looking #ack from the top of the mountain to yourself down in the valley, and seeing the eLact route you will have to follow to get to the top) -eaders 5ave 8ision "n ==<< studies of leaders reviewed #y Rames /ac$herson, searching for the common denominators of leadership throughout the ages, the one -uality that all the studies had in common was the -uality of vision) Leaders have visionP non, leaders do not) 2o #ecome a visionary re-uires that you develop the a#ility to imagine, de(ne, articulate, share and inspire other people with an eLciting picture of the future) Jou get everyone in your #usiness committed to ful(lling this vision, and to working toward it every day) 2his is the key to leadership, and to #uilding a great company) *ristotle wrote, +We "e!ome what we re#eatedly do&, Jou #ecome a leader #y thinking the way leaders think, #oth in your #usiness and in your personal life) Jou #ecome a leader #y thinking a#out the future, and how you can make it a present reality) 9ow% 3ore Than Ever 6ut it is in times of rapid change, and tur#ulence in the market, that an eLciting vision of the future #ecomes more important that ever #efore) * vision can #ecome the force that #inds people together into a solid team) "t can give meaning and purpose to work, even when times are tough and pay increases are not possi#le) 2here are many ways you can approach the development of a vision for your organi+ation) Perha#s the very "est vision for your !om#any in!ludes two $ey !om#onents& First% it is fo!used on your !ustomers and on doing something for them that !hanges and im#roves their lives or wor$ in some way& Se!ond% it !ontains a !ommitment to excellence % to "e the very "est at doing what you do for your !ustomers& These are the $eys to vision& Jour vision is to H#e the #est&I at the most important thing that you do for your customers) Jour vision is to serve your customers in such a way that you are seen as superior in a particular product, service or activity) "magine that you could #e known as outstanding in any one thing that you do for your customers) What would it #e? Jour answer can #e the starting point of a vision for your #usiness that changes your future completely) Your Personal 8ision Jou need a vision for yourself as well) $ro5ect forward D years in your imagination) "f your future were perfect in every way, what would it look like? "f your income, your position in your company or (eld, your family life, your health, your 5o# and every part of your life were ideal in every way, how would it #e diferent from today? Once you are clear a#out your vision, for yourself and for your #usiness, the only -uestion you ask is, &ow do I make it a reality? 2op people think continually in terms of how? 2hey think in terms of taking action, of what can #e done) Once you have clari(ed your vision, and determined what you will have to do to make it a reality, you then do something every day to move you toward the creation of your ideal future) Jou take complete control of your destiny) *s 1rucker wrote, H2he very #est way to predict the future is to create it)I *nd the starting point is vision) )esign Your Ideal Future: ;) What is your vision for your company? $ro5ect forward and imagine that your #usiness was ideal in every way) What would it look like? @) What is your vision for yourself? "f your life and career were ideal in every way, what would it look like? =) "deali+e in each area of your #usiness) "f your products, services, sale and pro(ta#ility were perfect, what would they look like? C) "deali+e with regard to your people) "f your staf were ideal in terms of skills, a#ilities, personalities and results, how would they #e diferent from today? D) "magine that a ma5or maga+ine was going to write a story a#out your company) What would you want them to say? E) $ro5ect forward (ve years and then look #ack to today from that vantage point) What would you have to change today to create your ideal future? F) "n what one area would it #e most helpful to sales and pro(ta#ility if your company were widely known as Hthe #est?I What steps could you take immediately to #egin earning that reputation? Create A 3ission Statement: ;) 1etermine your personal reasons for doing what you do) What gives you a sense of meaning and purpose in life? @) 1ecide upon the =,D key values upon which your company is #ased) "nvolve other people in the discussion) =) 1e(ne the actions and #ehaviors that people will engage in, #oth inside and outside the company, that are consistent with your values) C) 1esign a mission statement, an ideal description of what your company wants to accomplish for its customers sometime in the future) 7& Write out a list of your values, and what they mean, plus your mission statement, and share them with your staf and customers) :& reate a personal mission statement for your career) What do you want to accomplish, and how do you want to #e known? ;& reate a mission statement for yourself and your family) What is it that you want to accomplish or achieve with your family in the years ahead? Cha#ter Seven 1 <einvent Your rgani'ation 'very man of genius sees the world at a di(erent angle than his fellows! A3avelock 0llisB Rack Welch of !eneral 0lectric once said, H"f the rate of change outside your organi+ation is greater than the rate of change inside your organi+ation, then the end is in sight)I "n times of tur#ulence, you should #e prepared to reinvent your #usiness as often as necessary as your eLternal world changes) *s an eLercise, imagine that you were starting your #usiness over again today) What would you get into, or not get into? (undle of <esour!es >or greater perspective, stand #ack and view your #usiness as a bundle of resources and capa#ilities, like a (re hose of talent and a#ility that can #e aimed in many directions to achieve diferent results) "nstead of limiting yourself to seeing your #usiness as an organi+ation that is designed to perform speci(c functions, producing and selling certain products and services, think of it as #eing capa#le of doing a variety of things completely diferent from what you are doing today) The 0reat Fire *s you think a#out reinventing your #usiness, imagine that your company #urned to the ground while you were away) When you arrived at the scene, you found that all your staf were safe and standing around in the parking lot) *s it happens, there is unoccupied oOce space availa#le across the street) Jou can immediately move into the new space and start your #usiness anew) 3ere is the -uestionK Which of your products and services would you #egin producing and distri#uting right away, and which ones would you not start up again, knowing what you now know? E2amine Every <elationshi# "f you were starting your #usiness over again today, completely free from any encum#rances of the past, which customers would you call (rst, and which ones not at all? Which vendors, suppliers, #ankers or other people would you immediately get in touch with, and who would you call later, if at all? What would you do (rst? What would you do second? What would you not start up again, knowing what you now know? <einvent Your Sta= <elationshi#s Now, let.s go #ack to the parking lot) Let us assume that all of your people are safe and standing around waiting for instructions) Which of them would you take across the street with you to the new #usiness, and which ones would you leave in the parking lot? Who would #e the (rst and most important person whose services you would want to secure? Who would #e the second most important? Who would #e third? *nd so on) E2amine Your rgani'ation "f you could reinvent your #usiness, what would you do more of? What would you do less of? What would you start doing that you are not doing today? What would you stop doing altogether? "n reinventing your organi+ation, ask yourself, HWhat are my most important talents, skills, a#ilities and core competencies, and what else could " do with them? Who are my #est people and what else could they do? Keep thinking a#out how you would reinvent your #usiness if you were starting over) 2his will keep you on the cutting edge of creativity and innovation) Thin$ In Terms of E2!ellen!e 2he key -uestions in reinvention are, HWhat could you #e a#solutely eLcellent at doing in today.s market?I Where could you #e the #est? Where could you achieve worldclass -uality? Where could you #e #etter than S<N of your competitors? H 2he market only pays eLtraordinary rewards for eLtraordinary products and services) Where and how could you do what you do in an eLtraordinary fashion? <einvent Your Career >inally, think a#out reinventing yourself and your career on a regular #asis, as well) "f you were starting over again today, what would you do more of, less of, start or stop? What would you get into or get out of? "f you were starting your career over again, what additional knowledge and skills would you want to have? What can you do, starting today, to ac-uire those key skills? "magine that you could do a variety of 5o#s) What would you really like to do with your life? 8ince you were going to have to reinvent yourself regularly throughout your career, it is very important that you think a#out how you would do it well in advance of when it #ecomes necessary) <einvent Your rgani'ation: ;) "f you were starting your #usiness over again today, what would you do diferently? @) "f you were starting your career over again today, what would you get into, or out of? =) "f your #usiness #urned to the ground and you could only ofer one of your products or services, which one would it #e? C) Who are your most important customers, the ones who you would immediately move to take care of, if you were starting over? D) Who are your most important people, #oth inside and outside of your #usiness? E) What are your most important contacts and #usiness relationships, the ones you would want most to preserve if you were starting over? F) "f money were no o#5ect, what steps would you take today to reinvent your #usiness? Cha#ter Eight 1 Sele!t the <ight Peo#le &ere lies a man who know how to enlist into his service people better than himself! A*ndrew arnegie ,epitaphB 2he people in your company are the most important parts of your #usiness) *ll work, all performance, all results come from them, #oth as individuals and when they work together in teams of some kind) 2he manager.s output is the output of his or her team, and of the individual team mem#ers) "n #usiness, people come (rst) Ro#s, activities and results are only achieved after the right people are in place) Rim ollins says in his #ook, )ood to )reat, that the key to #uilding a great #usiness is, H(rst, get the right people on the #us, and second, get the wrong people of the #us)I *ny other approach is #ound to fail) Two Key >ualities to -oo$ For 2he #est people have two -ualities) >irst, they can #e counted on to get the 5o# done, to get it done well and to get it done in a timely fashion) 8econd, they get along well with others) 2hey are good team players) Jou should apply *ero"based thinking to each person who reports to you on a regular #asis) ontinually ask, HKnowing what " now know, would " hire, assign or promote this person again, if " had to do it over?I "f the answer is HNo,I then your neLt -uestion is, H3ow do " remove or replace this person, and how fast can " do it?I What do you want and need those results to #e? Once you are clear a#out the results you desire, set speci(c measures of performance on each 5o#, and each task) 3ow will you and the candidate know whether or not the 5o# has #een done properly? 4emem#er, HWhat gets measured, gets done)I *nd, H"f you can.t measure it, you can.t manage it)I Sele!t the <ight Peo#le: ;) 4ank every one in your company on a scale from ;,;<, with ;< #eing the highest, on their competence at their 5o#) @) 4esolve to #uild a team of highly motivated, competent and positive employees to help you get the results you need) =) 2hink through each new 5o# or hire carefully in advance) Write out the description clearly) C) "nterview at least = candidates for a new position) "nterview the candidate you like at least = times, in three places, and have him or her interviewed #y at least = other people) D) heck references carefullyP seek the fatal 'aw or weakness that would make the candidate unsuita#le) E) 3ire only positive, lika#le peopleP they make the #est team players) F) 4esults are everythingP continually emphasi+e and eLplain eLactly what results are eLpected from each person) Cha#ter 9ine 1 3ar$et 3ore E=e!tively +ecause its purpose is to create a customer, the business enterprise has two , and only these two" basic functions- marketing and innovation! .arketing and innovation produce results/ all the rest are costs! A$eter 1ruckerB *ll #usiness strategy is ultimately marketing strategy) Whenever you are worried a#out the health or future of your #usiness, get #ack to thinking a#out marketing and selling) >ocus single,mindedly on increasing sales and revenues) utting eLpenses and controlling costs is an ongoing necessity, #ut you can.t cost,cut your way to #usiness success) Jou have to increase cash 'ow, and this only comes from selling more of your products or services) 9o matter how !hallenging or !om#etitive the e!onomy a##ears% as mu!h as ?@A of your mar$et is still unta##ed& 2here are almost always hidden opportunities around you) Jour a#ility to uncover and take advantage of those opportunities is the true test of competence as an eLecutive or as a #usiness) )e!ide Who You Are and What You )o 0peciali*ation re-uires that you focus on speci(c products or services, speci(c markets or speci(c customer needs) Jou must (ght the temptation to try to ofer too many products and services to too many customers in too many areas) Jou must speciali+e, #oth in your own mind, and in the mind of your customer) What is it exactly that your product or service is designed to achieve, avoid or preserve for your customer? What are the core competencies or proprietary methods or technologies that ena#le you to speciali+e in this area? What speci(c pro#lem or need can you solve or satisfy for your customer? *nd of all the diferent results you can get with your #usiness, where do you, should you, could you speciali+e? See Yourself As A (usiness "n your personal life, you should ask the same -uestions of yourself as well) What is your personal area of speciali*ation? "n what way is your work superior to your competitors? What is the ideal position or area of responsi#ility for you to apply your talents? Where should you #e concentrating your energies to get the very #est results and greatest rewards possi#le? 0specially, you should continually ask yourself, $hat is it that I do very, very well? What is your personal area of eLcellence? What could it #e? What should it #e? -oo$ing Ahead Looking into the future of your #usiness or industry, what new competencies do you need to develop to lead your (eld in the months and years ahead? What additional knowledge and skills do you need to ac-uire? What are those few tasks, which, if you did them in an eLcellent fashion, would have the greatest positive impact on your career? "n what areas could #e paid the very most for the application of your special talents and a#ilities? 2his -uestion is 5ust as relevant for you as it is for your company) 3ar$et 3ore E=e!tively: ;) 1ecide today to dominate your (eld, to #e the #est at marketing and innovation in your product or service area) What is the (rst step you should take? @) 1etermine your area of speciali+ation, #y product or service, market or type of customer) What should it #e? What could it #e? =) 3ow do you diferentiate your product or service from those of your competitors? "n what ways are you superior to anyone else? What could it #e? What should it #e? C) What are you #est market segments? Where are your highest pro#a#ility customers? Who can #ene(t the most from using what you sell? D) 3ow can you organi+e your #usiness so that you concentrate your marketing and selling eforts on those customers who can #uy and pay faster than any others? E) What additional products, services, knowledge or capa#ilities will you need to dominate your markets in the months and years ahead? F) What should you immediately start doing more of, less of, start or stop to ad5ust to the current market? Cha#ter Ten 1 Analy'e Your Com#etition 1oncentrate your strengths against your competitors relative weakness! A6ruce 3endersonB Know Your Enemy 3ere then is a -uestion for youK Who is your competition? 0Lactly? Jour choice of competitor determines almost everything you do in your market, 5ust as the choice of an adversary determines everything a general does in the process of conducting military operations) )etermine Their (uying 3otives Once you have determined why it is that people #uy from you, you must then ask and answer, HWhy do people #uy from my competitors?I What value or #ene(ts are your potential customers convinced that they receive when #uying from your competitor rather than from you? What are your competitor.s key strengths? What are his areas of speciali+ation, diferentiation, segmentation and concentration? What does your competitor have that you don.t have? What does he ofer that you don.t ofer? What is he doing more of or #etter than you? What is his uni-ue selling proposition? =set Their Advantages *s you study your competitors, look for ways to ofset or neutrali+e the advantages their customers perceive them to have) What are your competitor.s weaknesses? 3ow can you eLploit these weaknesses? What do you do #etter than they do? "n what ways are your products or services superior to their oferings? "n what areas do you have a distinct advantage over your competitors? What can you do to ofset your competitor.s strengths and maLimi+e your advantages? 3ow can you #etter position yourself against your competitors in a tough market? 2he more time you take to study and understand why and how your competitors are successful in selling to your customers, the more likely it is that you will (nd an opportunity to take away their market share) *s 8un 2+u says in he 2rt of $ar, H"f you know #oth yourself and your enemy, you will prevail in a hundred #attles)I Analy'e Your Com#etition: ;) Who is your competition for what you sell, with the eLact customers you are trying to attract? @) What would happen if you changed your oferings in such a way that you targeted a diferent group of customers, one that would #e easier to sell to? =) Why do your potential customers #uy from your competitors? What advantages do they perceive? C) What is your competitor.s uni-ue selling proposition? What special feature or #ene(t does his product or service have that yours does not? D) "n what ways are you superior to your competitors? What can you ofer that they cannot? 3ow can you emphasi+e this advantage in your sales and marketing eforts? E) Where is your competitor vulnera#le? 3ow could you eLploit this to your advantage? F) 3ow could you alter your marketing strategy in such a way that you could achieve dominance in a particular area, with a speci(c customer or market segment? Cha#ter Eleven 1 )o It (etter% Faster% Chea#er he man who comes up with a means for doing or producing almost anything better, faster or more economically has his future and his fortune at his %ngertips! AR) $aul !ettyB 2he most important single determinant of your success is your area of competitive advantage) "t is more important than all other factors) "t determines the rise or fall of your #usiness, your level of pro(ta#ility, your position in the marketplace and everything else you accomplish) Jour competitive advantage must #e crystal clear to you and to everyone in your company, as well as to your prospective customers, Lack of clear competitive advantage leads -uickly to diminished sales, loss of market share, lower pro(ta#ility, price cutting, and ultimately to #usiness failure) Your 5igh Con!e#t Jour #usiness was started #ecause you or your company had an idea for a product or service that was diferent or #etter from other products and services) "t ofered to satisfy the same need or solve the same pro#lem #etter, faster or cheaper than anyone or anything else then availa#le) Jour a#ility to diferentiate your product in the minds and hearts of your customers is the key to winning them in the (rst place, and then keeping them after the initial sale) 2o #uy from you, a customer must #e convinced that, all things considered, your ofering is diferent and #etter than anything else that is currently availa#le at the same price) Rack Welch was famous for saying, H"f you don.t have competitive advantage, don.t compete&I Three Areas of )i=erentiation 2o succeed in a tough market, what you sell must #e superior to your competitor.s oferings in at least three ways) It must "e "etter% faster% !hea#er% and easier to use in some way that ma$es it more attra!tive than rival #rodu!ts or servi!es& "t must #e sold more professionally or serviced with greater sensitivity, speed or eOciency) "t must #e #etter in at least three areas) One of your key 5o#s in strategic thinking is to identify the three areas where you are #etter and then to emphasi+e those areas of superiority in all your marketing and sales 3ow could you achieve operational eLcellence in your #usiness, or some part of your #usiness, in such a way that you could #e the low,cost provider in your market? 3ow could you dramatically reduce your costs of doing #usiness and use this low cost advantage to increase your sales and pro(ta#ility? -ead the Field 2he second area where you could achieve competitive advantage is in the use of innovative te!hnology leading to the production of high -uality products and services) ompanies like /ercedes and 4oleL fall into this category, as does 8ony and LeLus) ustomers are willing to pay a premium for a #rand name that represents high -uality and cutting,edge technology) Where are there opportunities for you to distinguish your products or services #y using your imagination to #ecome the -uality leader in your (eld? Close to the Customer 2he third area where you could develop competitive advantage is in #eing Hclose to the customer)I 2his re-uires that you invest the time to develop high -uality relationships #ased on Hcustomer intimacy)I ustomers will pay more and remain loyal longer to companies that seem to know and understand them #etter than others) $roviders of speciali+ed services, such as consulting (rms, law (rms and accounting (rms fall into this category) "n what ways could you develop higher levels of trust and credi#ility with your customers? What could you do to demonstrate to your customers that you really care a#out them and their interests? 2his strategy can ofer a #reakthrough opportunity, especially in the sale of eLpensive products and services where resales and referrals are possi#le) Pi!$ Your Targets 2o lead your (eld and achieve higher levels of pro(ta#ility, you have to #e outstanding in one of these three areas and very good in the other two) One of the most important decisions you make is to choose your area of competitive advantage, and then to dedicate your company to achieving it) Strive For Su#eriority Jour area of eLcellence is the key to your success in a competitive marketplace) 2his is where your product or service stands out in comparison to your competitors) "t is a value or #ene(t that you ofer that no one else ofers) With regard to your products or services, what is it? What could it #e? What should it #e? Jour area of superiority is de(ned as an area of performance where your product or service is superior to that of your competitors) 2his performance diference is signi(cant enough that your customer will #uy it, and even pay you more for it) "n what way does your product perform #etter, in terms of getting results that your customer cares a#out, than your competitors? 3ow could you improve the performance of your products or services in some meaningful way? >inally, your uni3ue selling proposition is something that you and only you ofer to your customers, and is something that they really care a#out) No one else does as well as you do in this area) No one else achieves the same #ene(t or result) What is your uni-ue selling proposition? What could it #e? -oo$ Into Yourself On a personal level, you must continually ask these -uestions of yourself) What is your personal area of eLcellence? Where are you superior to your competitors? What is your uni-ue selling proposition? "n what ways do you do your 5o# #etter or faster than others? What is it that you and only you do in an outstanding fashion for your company? What could it #e? What should it #e? $erhaps the most important area of superiority you can develop is your a#ility to do your 5o# -uickly and well, in an eLcellent fashion, consistently and dependa#ly every time) 2his is the key to success as an individual in a competitive marketplace) )o It (etter% Faster% Chea#er: ;) "n what ways are your most important products or services superior to those of your competitors? @) What is your recogni+ed Harea of eLcellence?I "f you were to conduct a survey, what would people say that your company does especially well? =) "n what ways are your products or services faster to ac-uire, use and en5oy than your competitor.s? C) What is your uni-ue selling proposition? What is it that your products or services ofer that no other company can match? D) "n what ways are your products or services cheaper to #uy and use, or achieve superior (nancial results for your customers for the same cost? E) "f you were known for #eing outstanding in any one area of your product or service oferings, what one distinction would have the greatest positive impact on your sale and pro(ta#ility? F) List the three areas where your products are, or can #e, superior to any of your competitors) What is your plan to achieve this area of market superiority? What should you do (rst? What )o You SellB 2he (rst part of the marketing miL is your 4roduct or service) *lways de(ne your product or service in terms of what it HdoesI for your customers, versus what it His)I 3ere.s the -uestion, H"s your product or service, as you are ofering it today, ideally suited for your current market and customers?I 5ow 3u!h )o You ChargeB 2he second part of the marketing miL is your 4rice) "s your price the right price for what you are selling? 8hould you change your price in some way? 8hould you increase it, decrease it, com#ine your price with other items, or add items to your price? 8hould you change your terms or ofer something diferent for the same price? )ou"le Your Pri!eB "s there any place in your #usiness that you could increase your prices and still hold onto your market? 5ow )o You Sell ItB 3ow are you currently promoting and selling your product or service? What.s working? What.s not working? 8hould you change your methods of advertising, marketing, selling or ac-uiring customers in any way? Sell 3ore Stu= 0specially, should you upgrade and improve your direct selling methods, people, presentation, and capa#ilities? Is Your Phone <ingingB 0ver after, when " think a#out the efectiveness of advertising, " always ask, H"s your phone ringing?I Where )o You SellB 2he fourth element of the marketing miL is the 4lace) 2his is the speci(c location where the sale of your product takes place) Where eLactly do you sell your product today? 1o you sell in homes, oOces or in your own retail esta#lishment? 1o you sell in a particular city, state or nationwide? 1o you sell in stores or #y direct selling or #y direct mail? /ost importantly, should you change the place at which you ofer your products? * change in the location where you ofer your product or service could change the direction of your #usiness) What could it #e? E2amine Your Assum#tions Whenever you have diOculties selling a suOcient -uantity of your product or service, you should eLamine all of your assumptions in the areas of product, price, promotion and place) Jou should #e willing to consider the possi#ility that your method is completely wrong in one or more of these areas) "t often happens that a single change in one of the H$.sI in the marketing miL can change the entire nature of your #usiness, #oost your results, increase your pro(ta#ility and move you toward market leadership) Keep an open mind) The Answers Are Changing What is the correct marketing miL for you to sell the very most at the highest cost, and earn the greatest pro(t? What assumptions are you going on that may no longer #e true? Change Your 3ar$eting 3i2: C& 6e prepared to challenge every aspect of your marketing, especially if it is not working as well as #efore) What areas cause you the greatest frustration and dissatisfaction? D& What eLactly do you sell, de(ned as what it HdoesI for your customers, versus what it His?I 6& What prices do you charge? 3ow could you change the way you charge to make #uying from you more attractive? E& 3ow do you promote your product? ould there #e #etter ways of advertising your products or services that would give you #etter results? 7& 3ow do you sell your product or service? "s every person who deals with your customers fully trained in every key result area of selling? :& Where do you sell your product or service? 8hould you #e eLploring other locations or methods of sale? ;& 8hould you change more than one of the elements of the marketing miL at the same time? hallenging market conditions often call for #old departures from the methods of the past, especially if they are no longer working) What Words )o You wnB 1eli#erately or accidentally, each product or service develops a reputation that positions it against its competitors) What is yours? Create Your wn Cheat Sheet 3ere is the -uestion) What words do you own? What words should you own in the hearts and minds of your prospective customers? What words could you own if you were to reorgani+e and redirect your marketing eforts? *s an eLercise, imagine one of your prospects meeting with one of your customers) "magine that your customer called you and asked you what you would like him to say to your prospect to convince your prospect to #uy from you? "f you could put together a Hcheat sheetI with the eLact words or phrases that you would like your customer to leave in the mind of your prospect, what words would you choose? Would you choose words like excellent 3uality, high integrity, friendly service, nice people, 3uick responses to problems, easy to work with, great prices? 3ow do you want to #e descri#ed #y your customers and potential customers? Of all the words and phrases that customers could use to descri#e your products and services, and your company, which would #e the most helpful for you and your #usiness? What Is Your (randB 3ow are you descri#ed and thought a#out #y others when you are not there? What is your personal brand? What is your reputation? 3ow do other people think and talk a#out you, #oth as a person and as a contri#utor to the organi+ation? Position Your Com#any For Su!!ess ;) What is your company.s reputation in your market? 3ow do customers and competitors think and talk a#out you? @) What words do people use when descri#ing your products or services to others? =) "f you could HownI certain words that apply to your company, your products or services, which words would you choose? C) What words, if they were automatically associated with your company, would have the greatest positive efect on your sales and pro(ta#ility? D) What changes would you have to make to assure that every customer contact reinforced the message that you wanted to send to your customers a#out doing #usiness with you? E) What are the most important promises that you make to your prospects to get them to #uy from you for the (rst time? 1o you keep these promises after the sale? F) What are the most positive things that your customers say a#out dealing with your company? 3ow could create a system to assure that more customers say these things? 0Lamine your complete range of products and services, especially the newer ones, and ask, HWhich of these has the potential to #e a #ig seller?I What would you have to do or invest in o help make it a ma5or source of sales and revenues? Keep asking yourself, H"f " had not already committed time and money to this product, knowing what " now know, would " start investing in it again today?I *pply the 86U concept to yourself and your career) Jou have several areas of talent and a#ility, core competencies, eLperience, knowledge and education) What are your cash cows, the skills that are central to your value to the organi+ation? What are your Hstars,I the emerging areas of activity, or new skills and knowledge that can make you eLtremely valua#le in the future? What are your potential areas of great success? What are the pro5ects, responsi#ilities and areas of opportunity, which, if you eLploit them fully, can ena#le you to move ahead more rapidly in your career? >inally, what are the HdogI areas of your work life? 2hese are the tasks or skills that you may have mastered in the past, #ut which distract you from your future) 2hese are the 5o#s and activities that take up a lot of time, #ut which are nowhere near as valua#le as other things you could #e doing) What are they? )evelo# Strategi! (usiness .nits ;) 6egin today to view each product or service as a separate #usiness, responsi#le for generating a certain amount of pro(t every month) @) !roup your diferent products or services #y similar characteristics, similar customers, or similar markets) =) What are the cash cows of your #usiness? What are the core products or services that are essential to your overall pro(ta#ility? C) What can you do today to safeguard and nurture your cash cows to assure that they continue contri#uting sales and cash 'ow far into the future? D) What are the HstarsI of your #usiness? What are the products that are selling well, increasing in market share, and generating high pro(ts? E) What could you do to increase the sales and pro(ta#ility of your stars? F) What are the H-uestion marksI of your #usiness? Which of your current products or services should you discontinue, knowing what you now know? What Is To (e SoldB 2he (rst -uestion is, +What is to "e soldB, 2o answer this correctly, you have to de(ne your product or service in terms of what it does, and how it #ene(ts your customer) 3ow does it improve his or her life or work? Of all the #ene(ts that a customer en5oys from purchasing your product or service, what is the primary #ene(t, the one thing that you ofer that makes you superior to any other competitor in the marketplace? 1o you know the answer to this? Who Is 0oing To Sell ItB 2he second -uestion is +(y whomB, Who is actually going to sell the product or service and get the check from the customer? 3ow are you going to recruit, train, manage, (eld and support the sales person? 3ow is this salesperson going to uncover the necessary leads and get face to face with the prospective customer? Who Is Your CustomerB 2he neLt part of the -uestion is HTo whomB, 5ow 3u!h Are You 0oing To ChargeB "s there any price you would raise, lower or modify in some way? Colle!ting Payment 2he neLt -uestion is How is it going to be paid for? 1o you re-uire payment in full, in advance? 1o you re-uire a deposit when the sale is made and with the #alance to #e paid at a later time on certain terms? 1o you ofer credit or (nancing? 0specially, what do your competitors do? Often a change in the way you charge, or in your pricing structure, can dramatically increase your sales) What could you do diferently in today.s market that would make it easier or more attractive to #uy your product or service? )elivering The 0oods 2he (nal part of the -uestion is How is going to be delivered satisfactorily? What is the eLact process of getting the product or service to your customer in such a way, and at such a level of -uality, that the customer #oth #uys from you again and recommends you to others? Sell 3ore E=e!tively: ;) What is the eLact sales process necessary to sell your product or service, from the (rst customer contact through to the close of the sale? 1o you know? 3ow could it #e improved? @) What must your prospective customer #e convinced of #efore he chooses your product over that of your competitor? =) "f money were no o#5ect, what special results or #ene(ts do you ofer in your sales eforts that make your product more desira#le than any other availa#le? C) What is your process for recruiting salespeople? What media do you use? What levels of education and eLperience do you re-uire? D) What kind of a compensation system do you have for salespeople? What is it #ased on? 3ow could it #e improved so that it motivates #etter sales performance? E) 3ow much of your #usiness comes from referrals from happy customers? 3ow could you increase the num#er of referrals you get as a percentage of your #usiness? F) Why aren.t your sales twice as high already? What sales eforts could you make to tap into that M<N of the market that has never heard of you? Follow the Formula HWhy am " not at that goal already?I What is holding you #ack? What is the constraint, chokepoint or #ottleneck that sets the speed on how fast you achieve your speci(c goals of sales, cash 'ow or pro(ta#ility in your #usiness? Let us return to my earlier -uestion, HWould you like to dou#le your sales and dou#le your income?I "f your answer is HyesI, then why haven.t you done it already? Why aren.t your sales twice as high? Why aren.t your pro(ts twice as high? What is holding you #ack? What is constraining you? What is the limiting factor? Identify Your Personal Constraints 2hink a#out your personal life and goals as will) *sk yourself, HWhat are my most important goals? Why am " not there already? What is it within me that is holding me #ack?I "s it the lack of a particular -uality, attri#ute or skill that sets the speed at which " achieve my goals? "s it a particular attitude or #elief that is holding me #ack? *nd most important, what could you do immediately to alleviate your key constraints, starting today? Eliminate the <oad"lo!$s: ;) 8et clear, measura#le goals for sales and pro(ta#ility) Now ask, HWhat determines the speed at which " achieve these goals?I @) Use sentence completion eLercises) 8ay, HWe could dou#le our sales if it 5ust wasn.t for))I and (ll in the #lank) =) "dentify the ma5or #lock to your achieving your most important goal? 3ow could you remove it? C) Look within your company for the limiting factors that hold you #ack) What are the chokepoints in your #usiness? D) *ssess each person in each key position) *re they competent and capa#le of doing what needs to #e done for you to #e successful? E) Once you have identi(ed your key constraint to #usiness success, ask, H$hat else is holding us #ack?I Keep asking, HWhat else?I until you get to the real pro#lem) F) "n your own career and personal life, what sets the speed at which you achieve your goals? Look within yourself for the answers) 3a$e Faster% (etter )e!isions Whenever they #ring you a pro#lem or a -uestion, always ask, HWhat do you think we should do?I <eengineer Your Com#any: ;) $ractice simpli(cation as a way of life) "n what areas of work has your life #ecome too complicated, and what can you do to get it #ack under control? @) $ractice +ero,#ased thinking with every step and every activity) "f you were not now doing it this way, would you start doing it this way again today? =) 2ake a single compleL process or 5o# and make a list of every step from #eginning to end) 3ow could you reduce the num#er of steps #y =<N the (rst time through? C) What tasks or activities could you delegate to someone who can do them F<N as well as you? D) What parts of your #usiness could you outsource to companies or individuals who speciali+e in that area? E) What parts of your work could you eliminate altogether with little or no impact on your #ottom line? F) What parts of your personal life do you need to streamline and simplify? When are you going to do it? Pum# .# Your Pro/ts: ;) 1o a complete pro(t analysis on every product and service you ofer) 4ank them from highest to lowest) @) "dentify the @<N of your products that account for M<N of your sales) Which are they? =) "dentify the @<N of your products and services that account for M<N of your pro(ts) *re they the same as your answer to T@? C) *fter deducting all direct and indirect costs, which are your most pro(ta#le products or services #ased on cost and return on investment? D) 3ow much is your time worth on an hourly #asis? 6uild this cost into everything you do to get an accurate measure of costs and pro(ta#ility) E) *ttri#ute a percentage of all general and administrative costs to each product or service you sell) 2his eLercise often turns pro(ts into losses) F) "f your company was facing serious (nancial shortages, which products or services would you focus your energies on, and which would you discontinue? 2hink a#out doing it now) It Starts From The To# 0ncourage each person to (nd ways to do their 5o#s #etter, faster, and easier) *llow them the freedom to eLperiment with improvements, with no fear of criticism if they don.t work) 8ometimes the greatest improvements occur as the result of a series of small eLperiments that were not successful) Jou should stand #ack regularly and eLamine every product, service and process) 3ow could you improve it in some way? 3ow could you make it #etter, faster or cheaper? 3ow could you get the same or #etter results faster, or at a lower cost? Never #e satis(ed or content with eListing -uality levels) *lways look for ways to improve upon them) 6rainstorm with your team regularly to generate ideas to cut costs, improve -uality, increase sales and #oost pro(ts) 0ncourage everyone to think, all day long, a#out how they can do their 5o#s #etter) /ake this commitment to continuous improvement a part of your corporate culture) Commit to E2!ellen!e "f everyone in your marketplace referred to you and your oferings as the best in the business, what kind of a diference would that make in your sales and pro(ta#ility? With that as your goal, what would you have to do, starting today, to assure that everyone refers to you as Hthe #estI sometime in the future? What could you do, starting today, to #egin this process? What is the (rst step you should take? >uality and Pro/ta"ility HWhich of these companies do you feel is the #est in this particular industry?I 3ere.s the -uestionK "f such a survey were done among potential customers for what you sell, where do you feel your company would rank in such a comparison? Would you #e ranked as Hthe #est,I or somewhere lower? What could you do to move higher in the rankings? What one step could you take immediately? 5ow )o Customers )e/ne >ualityB What )o Customers WantB Commit to Continuous Im#rovement: ;) 3ow do your customers de(ne -uality? What is most important to them in choosing your product or service? @) 3ow do you rank against your competitors on a scale from one to ten? 3ow could you improve your ranking immediately? =) 8et up a reward system in your company for suggestions and ideas to improve -uality and achieve greater customer satisfaction? C) 1o you have -uality and performance standards for people, products and activities in your company? 1oes everyone know what they are? D) What company do you think is the #est in your #usiness, the most respected and pro(ta#le? 3ow could you #enchmark yourself against them? E) What one step could you take immediately to improve customer satisfaction with your company? F) What could you do personally to upgrade and improve the -uality of your performance in the most important things you do in your 5o#? )e/ne Your Core (usiness What is your core #usiness? "f everything else was stripped away, what would #e left at your core? "dentify the @<N of opportunities availa#le to you today that can #e responsi#le for M<N of your sales and revenues in the years ahead) 2hese will almost always #e eLtensions of your current #usiness, your core competencies, and your areas of eLcellence) Jour choice of the opportunities availa#le to you largely determines the future of your #usiness) What are they? Fo!us n 8alue What are the @<N of your work activities that account for M<N of your personal value and your contri#ution to your company? "f you 5ust dou#led the amount of time you spend on the @<N of your high value tasks, and discontinued the M<N of low value%no value tasks that you do, you could #ecome most of the most productive people in your company) 2hese are your core tasks) What are the @<N of pro#lems, aggravations, and irritations that account for M<N of your headaches in your work? Who are the most diOcult people, customers or situations that you have to deal with each day? What can you do today to minimi+e or eliminate them? 6ased on this M<%@< analysis, what steps can you take immediately to improve, increase, and strengthen your core products, services, customers and activities? What should you do (rst? Where )o You E2!elB "n what areas of your products and services are you, or could you #e better than SDN of your competition? Advan!e Planning 2his 1itadel is your core #usiness) What is yours? Whatever it is, practice H8cenario $lanningI on a regular #asis) *sk yourself, HWhat is the worst thing that could possi#ly happen in my market today?I Whatever your answer is to that -uestion, #egin making provisions today to assure that you will #e a#le to survive, should it occur) Your Personal Citadel Strategy *s an individual, you must #e clear a#out your personal core competencies, as well) 3ow could you improve in each one of them? What core competencies will you need to lead your (eld in the years ahead? What is your plan to ac-uire the core competencies of tomorrow? Con!entrate n the Core: ;) What is your core #usiness? What products and services are most responsi#le for your success today? @) What are your core competencies? What is it that your company does eLtremely well? =) What are the worst possi#le things that could happen to your #usiness in the neLt year? What are your plans to deal with them, should they occur? C) What are your non,core products, services or activities? What would happen if you discontinued them entirely? D) Who are your core customers, and what are you doing to assure that they never leave you? E) Who are your core people, the ones who are most important for the survival and growth of your #usiness? What is your strategy to keep them? F) What are your core functions? What are the things you do that are central to your 5o#? What activities are peripheral? Four Key >uestions When considering #uying a product or service, customers have four -uestions that must #e answered #efore going aheadK ;) What does it cost? @) What do " get for the money? =) 3ow fast do " get the #ene(ts you promise? C) 3ow sure can " #e that " will get those #ene(ts? Whichever company or salesperson answers these -uestions most convincingly wins the sale) )eliver n Your Promises HWhat results or #ene(ts do my customers eLpect of my product or service?I and H3ow consistently do my customers get those results and #ene(ts when they #uy my products or services?I 2his is the true de(nition of H-uality)I Uuality can #e de(ned as, Hthe percentage of times that your product or service does what you say it will do, and continues to do it)I * -uality rating of ;<<N, or perfect -uality, means that what you sell always delivers on your promises) * -uality rating of S<N means that your product gets the desired or promised results nine out of ten times) -ittle Things 3ean A -ot >ederal 0Lpress has determined that if its -uality rating was SS)S<N, they would make mistakes in the delivery of CC,<<< envelopes a day) *t SS)S<N -uality, >ederal 0Lpress would collapse under its own weight of confusion) 2hat is how important -uality is in a #usiness) Jour personal success is also determined #y how consistently and dependa#ly you perform and deliver on your responsi#ilities and promises) Jou should continually ask yourself, HWhat results are eLpected of me?I Jour level of efectiveness is always de(ned #y others, #y what they need from you) Leaders are always asking, HWhat does this situation need of me?I Once they are clear, they concentrate their energies in those areas) *sk yourself, HOf all the results " can accomplish, what are the most valua#le and important in terms of my rewards and my future?I Im#roving Your A"ility to 0et <esults 3ere are seven of the #est -uestions you can ask and answer to improve your a#ility to get resultsK ;) HWhy am " on the payroll?I What eLactly have you #een hired to accomplish? /ake sure that what you are doing every day is the answer to this -uestion) @) HWhat are my highest value tasks and activities?I Of all the things that you could #e doing during the day, what are the activities that you engage in that contri#ute the greatest value to yourself and your company? =) HWhat are my key result areas?I What are the core competencies and key tasks that you must a#solutely, positively do in an eLcellent fashion to produce the most important and valued results eLpected of you? 4esolve today to #ecome a Hdo,it,toyourself, pro5ect)I >or the rest of your career, dedicate yourself to continually learning and improving in those areas where top performance is most vital to your success) !etting better at your key tasks is one of the #est time saving techni-ues of all) C) HWhat can " and only " do that, if done well, will make a real diference?I 2here is always something that only you can do that can make a signi(cant diference to your life and your work) "f you don.t do it, it won.t get done) No one else will do it for you) 6ut if you do it, and you do it well, it can make a signi(cant diference) What is it? D) HWhat one skill, if " developed and did it in an excellent fashion, would have the greatest positive impact on my career?I 2here is always one skill that if you developed it and did it well, would have a greater and more positive impact on your career than any other single skill) Jour 5o# is to identify that skill and then put your whole heart into #ecoming a#solutely eLcellent in that area, whatever it is) E) HWhat one result, if " achieved it consistently for my customers, would most satisfy those customers and #ring me the greatest num#er of additional customers?I What must your customer #e a#solutely convinced that he or she will receive from you in order to #uy your product or service and to recommend it to his or her friends? 3ow could you improve your -uality and service in that area? F) 2he (nal -uestion for personal success, num#er seven, is thisK HWhat is the most valua#le use of my time right now?I Use this -uestion as your guiding star throughout the day) Keep asking, What is the most valuable use of my time, right now? All )ay -ong "f you could only perform one task all day long, what one thing could you do that would contri#ute more value to your life and work than any other single task or activity? FFFFI9TE<9ET 3A<KETI90 WIT5 E3PWE< 9ETW<K (I3GP<SPE<ITY TEA3GP<HECT AW-FFFF Whatever your answer% #ut mastery of that tas$ at the to# of your list of #riorities& )edi!ate yourself to getting "etter and "etter doing the one thing that !an ma$e more of a di=eren!e than anything else& This is the $ey to getting su#er" results at every stage of your life and !areer& n!e more% here then are the DC $ey ideas in the Tur"ostrategy #ro!ess: ;) Start Where You AreK 1o a complete and honest analysis of your #usiness as it is today, including the current status of your sales, revenues, pro(ta#ility and the market situation around you) D& )raw A -ine .nder the Past: *pply +ero #ased thinking to every part of your #usiness) "f you were not doing it today, knowing what you now know, would you get into it again today? 6& Condu!t A (asi! (usiness Analysis: 0Lamine your products, services, processes, and activities as if you were looking at them for the (rst time) 6e prepared to ask yourself the H#rutal -uestionsI a#out each one of them) E& )e!ide E2a!tly What You Want: 8et clear, written, measura#le goals and o#5ectives for yourself in each part of your #usiness) 7& )esign Your Ideal Future: $ro5ect forward =,D years and imagine that your #usiness was ideal in every respect) What would it look like? What could you do, starting today, to make that future vision into a current reality? :& Create A 3ission Statement: 1ecide eLactly what it is you want to accomplish for others with your #usiness) /ake it measura#le) /ake it eLciting) 8hare it with everyone) ;& <einvent Your rgani'ation: "magine starting your #usiness or career over again today, with your present knowledge and eLperience) What would you do diferently? ?& Sele!t the <ight Peo#le: >ully SDN of your success in #usiness will #e determined #y the people you choose to work with and for) 2ake the time to make good personnel decisions) I& 3ar$et 3ore E=e!tively: 2hink through every part of your marketing strategy #y applying the four principles of speciali+ation, diferentiation, segmentation and concentration to every product and service) C@& Analy'e Your Com#etition: 1ecide eLactly who you are competing against, and why it is that your prospective customers prefer to #uy from them) 3ow could you ofset this perceived advantage? CC& )o It (etter% Chea#er% FasterK ontinually seek ways to serve and satisfy your customer in a superior fashion to any one else in your market) Never stop raising the #ar on yourself) CD& Change Your 3ar$eting 3i2: "magine #eing your own management consultant and asking yourself hard -uestions a#out the appropriateness of your product, price, place and promotion in today.s market) C6& Position Your Com#any For Su!!essK 1etermine how you want to #e thought a#out and talked a#out #y your customers and prospective customers) What are the very #est words they could use to descri#e you? CE& )evelo# Strategi! (usiness .nits: 1ivide your products and services into one of four categoriesK cash cows, stars, 3uestion marks and dogs) /ake one person responsi#le for sales and pro(ta#ility for each product or group of products) C7& Sell 3ore E=e!tively: >ocus single,mindedly on upgrading the -uality of your sales efort) 3ire more selectively, train more thoroughly, and manage more professionally) 8ales are the life#lood of the #usiness) C:& Eliminate the (ottlene!$s: "dentify the factors that determine how fast you achieve your goals of sales and pro(ta#ility) oncentrate on alleviating these #ottlenecks in every part of your #usiness) C;& <eengineer Your Com#any: ontinually seek ways to streamline and simplify the process of producing and selling your products and services) Learn to delegate, outsource, downsi+e and eliminate the compleLity of everything you do) C?& Pum# .# Your Pro/ts: 0valuate every product and service to determine eLactly how much net pro(t you are actually earning from each item you sell) 4esolve to discontinue products and services that are not as pro(ta#le as others, and channel more resources into those products that are the mainstays of your #usiness) CI& Commit To Continuous Im#rovement: "nstall the Kai+en process of Hcontinuous #ettermentI into your company) >ind out how your customer de(nes H-ualityI and then continually strive to eLceed eLpectations) D@& Con!entrate n The Core: "dentify the most important products and services you ofer, and then focus on getting #etter and #etter selling more and more of them) $ro#a#ly M<N of the market potential for your core products has not yet #een tapped) @;) Fo!us n <esults: oncentrate your #est energies and resources on getting the most important results possi#le for your company) 8et priorities in every area and then work single,mindedly to complete the few tasks that are more valua#le than everything else put together) 2he most important part of the 2ur#ostrategy is not what you learn, #ut the actions you take, and how -uickly you take those actions) 2here is a direct relationship #etween how fast you move on a new idea and how likely it is that you will ever move on a new idea) 4esolve today to #ecome intensely action,oriented for the rest of your career) Rust do it& The Tur"ostrategy Pro!ess