Be Different or be dead

December 11, 2017

Why reaction to the unexpected makes the best business plan

Source: Pexels

Why reacting to the unexpected makes the best business plan.

Traditional business strategy methods give us many tools and techniques to build ‘the perfect plan’.

It offers structure in the SWOT process. It provides analysis in demand and forecasting models. It provides decision-making frameworks to assess the merits of various alternatives.

It’s a mature discipline that has definitely helped organizations chart a course for their future.

That said, I have two issues with it.

▪️ Traditional planning is far too complicated; too expensive; too time consuming in relation to the benefits realized and it raises the false expectaion that the strategy will actually work as planned in a world full of rapid change and unpleasant surprises.

If the essence of the strategy can’t be counted on to succeed why don’t we simplify the planning process so that it is not overly onerous and complicated? So that it is expedient and not costly?

I have seen the folly of relying exclusively on this old school approach that gives the planner the false impression that the complexity of the approach increases the chances of its success.

This alternative has been road tested in the real world.

Dumb down the strategy building process, get your plan just about right and execute it better than your competitors.

▪️ The traditional approach says virtually nothing about the principle of response. Successful companies are brilliant at reacting to surprise events they did not anticipate and those that are unable to adapt struggle and die.

How many strategies have you seen unfold the way you originally planned? I have seen none; it is the impossible dream!

The principle of response is the essence of the practice of planning on the run: Plan - Execute - Learn - RESPOND (Adjust) - Execute….

The essentials of planning in response to unexpected forces:

1. Keep the business planning process simple. Cut the time to devote to developing your strategy in half to make room for more attention to implementation. Get your direction right. Be ok with ’heading west’. Precision is your enemy.

2. Get to the real gut issues you are facing. Forget about complicated mathematical formulae to help you understand the challenges you face. This is not an intellectual exercise.
Declare the three issues keeping you up at night that you must address in order to survive and thrive in an unpredictable world.

3. Plot a course of action. Spend copious amounts of time figuring out how you intend to implement your statement of direction. Assign accountability and specific timeframes to deliver results.

4. Execute! Execute! Execute! Bear down on getting results however you can. It doesn’t have to be elegant as long as you’re getting stuff done. And make sure everyone in the organization understands what they have to do to support the execution plan; people doing their own thing is a nonstarter.

5. Learn what works and what doesn’t. Meticulously monitor and analyze results to discover what you should do more of and what you should stop doing.

6. React to your results and adjust your direction. Tweek your plan based on how effective your execution is and move on quickly. Keep your feet moving.

Remarkable organizations have a ‘reasonable’ plan, but their competitive advantage is that they react to unexpected change better than anyone else.

Cheers,
Roy
Check out my BE DiFFERENT or be dead Book Series

• Posted 12.11.17 at 04:23 am by Roy Osing
• Permalink

November 27, 2017

Why the best growth strategy is to make a culture and transplant it

Source: Pexels

In an unpredictable and intensely competitive environment every business faces a challenge to grow.

They generally apply one of two strategies to achieve this end.

▪️The first is to grow organically; focusing the organization’s resources primarily on their existing customers with current and new products and they rely on obtaining new customers by winning them away from their competitors.

▪️The second is to expand their customer base by acquiring another company and essentially importing the customer base that they hold. Apart from anticipated synergies such as reduced operating costs the purchaser buys a customer base with an existing revenue stream.

There are mixed views on which approach is the most effective.

Organic growth can be slower than desired; acquisition growth can, at least on paper, be fast and effective, but can often result in organizational integration issues (for example cultural and leadership differences) that prevent growth objectives from being achieved.

▪️There is a third growth approach, however, which is a kluge of organic growth and acquisition strategies; I rarely see this option used by any organization.

This involves creating a brand or culture and transplanting it in the business acquired. If an organization has been successful in creating a culture around serving customers, for example, they would look to buy a company with significant growth potential and transfer their customer focused culture to it.
They would treat other common core competencies such as technological and strategic fit as secondary considerations.

Richard Branson is a good example of a leader who has been successful doing this. He developed a customer centric culture In his businesses and then applied it to new businesses he bought but had no prior experience in.

For example his music business spawned his customer focus competency which he then applied subsequently to the many different businesses he acquired.

It makes sense.

Any business requires a strong customer bias to be successful. Incubate it in your own (semi-controlled) environment and then replicate it in the businesses you acquire.

There are three huge benefits of this ‘culture transplant’ approach.

1. Your competitive advantage is scaled and multiplied across all businesses you buy;

2. Business integration risks are reduced as cultural differences are less of a factor;

3. The time to realize acquisition synergies is shortened as critical barriers to execution such as structure and employee engagement are minimized.

If you’re in the hunt for an acquisition as a means to grow, look for a company who first has a culture leaning in your direction and then has opportunities for synergy and growth.

Cheers,
Roy
Check out my BE DiFFERENT or be dead Book Series

• Posted 11.27.17 at 04:20 am by Roy Osing
• Permalink

October 30, 2017

3 simple questions to ask to make your startup a winner

Source: Unsplash

3 simple questions to ask to make your startup a winner.

So you have an awesome idea for a new business. You think you can make a difference in the world and make tons of money like some others before you have. How should you proceed?

What do you have to do to turn your ‘brave idea’ into a ‘crude deed’?

First you need to know that the odds that you will succeed in the long run are not that great. Many studies conclude the same thing, that around 30 percent of new businesses make it to 2 years while only half are still around after 5 years.

The herd of losers is HUGE and growing.

Why do so many die?

- Economies throughout the world are volatile and unpredictable;

- Competition is super intense; new competitors enter markets at a blistering rate;

- New technology rains down relentlessly disrupting the flow of plans;

- Markets are cluttered with sameness; products and services are undifferentiated and competitive claims are lost in the crowd;

- Customers are more empowered than ever before, establishing relationships with suppliers that deliver distinctive solutions and ignoring those that don’t.

What do the survivors look like?

Those that are able to survive and win are different from their competitors.

They survive the scrutiny of the discriminating customer by providing relevant, compelling value that is unmatched by their competitors.

Those that have no distinctive identity simply don’t make it.

They die.

Answer these 3 questions and discover how you can beat the odds of long term success.

Q1. Why do many companies who have been around a while fail?

a) They cease being relevant to their customers ✅

b) They don’t advertise enough

c) Their cost structure is too high

d) Their revenues decline

They get too smug and comfortable and take their existing customers for granted.

Survivors remain relevant and invest substantial resources to stay there.

When you are up and running, never feel entitled to your current revenue stream. You have to go out and earn it every day!

Q2. What is the biggest mistake entrepreneurs make when starting a new business?

a) They fail to attract great sales people

b) They don’t advertise enough

c) They don’t test their idea with potential customers

d) Their business idea is not different from their competition in a way people care about ✅

Your idea must resonate with people; it must address something they care about and it must be different than anything else out there.

It’s not about gee-whiz technology and all the cool things it can do.

It’s more about captivating someone with what they can do ‘with your thing’ and that they can ONLY get it from you.

Don’t launch your new idea until it passes this test.

Q3. What is the most critical thing to look for in recruiting people to join your team?

a) The innate desire to serve other people ✅

b) Social media expertise

c) Technology skills

d) A powerful personal network

The other attributes are important, but at the end of the day successful business is about building relationships with, and caring about other people.

Ensure that the individuals you recruit have demonstrated skills and experience in helping their fellow human beings. That’s what drives amazing customer service which is a key differentiator.

Change the world by being the ONLY one that does what you do with people that love human beings.

Cheers,
Roy
Check out my BE DiFFERENT or be dead Book Series

• Posted 10.30.17 at 03:10 am by Roy Osing
• Permalink

August 28, 2017

2 easy questions every startup should ask to survive

Source: Unsplash

2 easy questions every startup should ask to survive.

Some say 9 out of 10 new businesses fail; others say 50% will not make it 5 years.

Ignore the precision of the numbers and you are left with the inescapable conclusion that when you start a business there is a very good chance you will fail.

Why is the mortality rate so high for startups?

These four explanations are typically used to explain failure.

1. They don’t have sufficient financial resources; they run out of money. They are unable to attract enough investors who believe in their idea. The founder is no longer able to continue at zero salary or benefits.

2. They don’t have people with the marketing competencies required to turn their new brave idea into a market reality. They are unable to communicate a value proposition that captures the attention of their audience and entices them to support it.

3. Their product doesn’t address a compelling market need; the problem it is solving is not easy to explain. It doesn’t resonate with anyone. People have to think too much.

4. Their solution is basically the same as their competition. There is no differentiation; it’s not distinctive or unique. Cover your eyes and the solution provider could be any one of a number of players in the market.

All choices are contributing factors to be sure, but the main culprits are first, a product that doesn’t capture the imagination of the target market and second, the absence of clear competitive differentiation.

Without a compelling solution and value proposition that stands out from the competition you will undoubtedly fall victim to the grim reaper sooner or later.

Two questions that startup leaders should ask themselves:

1. “What common problem (i.e. virtually everyone is aware of it) does my product solution solve?”

How easy is it to explain? Do people get it right away? Is it intended for a large segment of the market, or a small specialized group?
If it takes an hour to describe how your solution “talks to” the problem, and if it is targeted to a small specialized niche, you could be in trouble.

People are attracted to products that have broad social appeal. It doesn’t take long to explain, for example, why a solution to distracted driving would be valuable to have.

2. “Why should a potential customer do business with you and no one else?”

The world is full of hungry competitors; what makes you special enough to have potential customers consider you and ONLY you for the solution you provide?

If you can’t clearly separate your solution from the competitive herd, you will be invisible and go unnoticed - and your money will most likely run out.

If you offer a no brainer solution to a problem that the world understands and if you are the ONLY ones who offer it the way you do, you will have a long and rewarding business life.

If not, join the statistics.

Cheers,
Roy
Check out my BE DiFFERENT or be dead Book Series

• Posted 8.28.17 at 12:54 am by Roy Osing
• Permalink