Be Different or be dead

September 7, 2015

How a small business can easily create a winning business plan

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How a small business can easily create a winning business plan.

If you own or operate a small business, how much time do you spend developing your business strategy? If you’re like most small business owners, not much.
Every small business leader is busy working IN their business; they don’t necessarily spend enough time working ON their business.

I often hear “I don’t have time to plan, I’m too busy running my business”, or “Everything is so unpredictable these days I don’t see the point.” They are consumed by day-to-day priorities and crises and have little time and energy left to develop a strategy for their business.

In addition, developing a strategic plan is often viewed as an expensive, complicated and time consuming activity that is an interruption to the “normal” flow of business.

The truth is that every business needs a strategy; otherwise progress can’t be measured and success never achieved.

Building your strategy doesn’t have to be a complicated time consuming exercise; I have developed an approach that results in having your strategy in not more than three days, and you can begin executing it on the fourth.

To not have a plan is to aimlessly bump and grind along, accepting whatever performance you can deliver.

My strategic game plan — SGP — makes it easy for you to plot your future. It can be created in less than 2 days with your small business leadership team in an informal and fun setting.

It’s called a ‘game plan’ because the focus is to build a just about right direction that can be executed rather than waste time trying to create the perfect plan which looks good on paper but no more.

My process is based on discovering the answers to 3 questions; the answers define the strategy.

#1. Growth — HOW BIG do you want to be?

Do you want $1 million in revenue within 24 months or do you want to be more aggressive and go for $5 million?

Most planning processes end with financial results. They calculate the growth results of executing the strategic direction chosen.

My process starts with your growth intentions, and builds the strategy from HOW BIG you want to be. The reason is simple: more aggressive growth goals require a more aggressive — and risky — strategy, and more moderate growth goals need a more incremental — and less risky — strategy.

The traditional planning approach forgets that there is an extremely tight relationship between revenue growth and strategic intent; my strategic game plan doesn’t and that’s what makes my approach DiFFERENT than others.

#2. Customers — WHO do you want to SERVE?

You have a goal to grow revenue 25% annually over the next 36 months. The next question is where are you going to get it? Where are you going to invest your scarce resources of time and money?

You have a choice here; customers are not all created equal and you need to focus on those who have the potential of satisfying your growth goals and that leverage the core competencies of your business.

It boils down to selecting a group of customers who collectively have the potential to generate the revenue you have decided to go after.

To get the right answer to this question requires an intimate understanding of the various customers you serve. You can’t choose the customer group to generate the revenue you covet if you don’t understand the propensity of your various customer segments to buy from you — discover their secrets and success will follow.

#3. Competitors — HOW will you compete and WIN?

It would be nice if you were the only provider of products and services to the customer group you’ve chosen, but that’s not likely to be the case. There is likely to be healthy aggressive competitors targeting the same customers you want to target, so the challenge you face is to determine how you will differentiate your organization from all others you will be competing with.

Why should people choose your organization when they have other choices available? What makes your team special in view of the alternatives available?

If you can’t give your chosen customers relevant, compelling and unique reasons why they should buy from you and not your competitors then unfortunately you have no other option but to compete by offering lower prices than everyone else, which is rarely a viable long term strategy for a small business with limited economies of scale and scope.

HOW to WIN is intended to explore the competencies of your organization that you can exploit to gain a sustainable competitive advantage over others who compete with you for the customers you’ve chosen to serve — the WHO.

My method is to create the ONLY statement that defines precisely what you and only you provide the customers you are targeting.

SGP soundbite — The final step in my process is to integrate the answers to all three questions as the high level summary of the strategic intent you’ve chosen.

“We will (HOW BIG) by focusing our scarce resources on (WHO to SERVE). We will compete by (HOW to WIN).”

Here’s an example:

“We will grow sales revenue by 25% over the next 36 months by serving the needs of four seasons vacationers in Washington State. We will compete and win by being the only organization creating personalized experience packages that incorporate the many activities that Whistler has to offer.”

The traditional business planning process has its limitations for small business. It generally requires more time than the small business leader has to devote to the task, and it costs more than most small businesses are prepared to pay.

3 questions; 3 answers that will define an effective strategy for your small business because it recognizes the special challenges that small businesses face.

Give it a try.

Cheers,
Roy
Check out my BE DiFFERENT or be dead book series

• Posted 9.7.15 at 05:05 am by Roy Osing
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July 20, 2015

Why ‘servant’ marketing is way better than flogging products

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Why ‘servant’ marketing is way better than flogging products.

Flogging is about ME; servant marketing is about YOU.

My regular reader will know that I rant about the need to banish the flogging mentality in business; to move away from pushing stuff at people.

Flogging is ‘It’s all about me’, supply-oriented marketing where the focus is on what is supplied rather than on what people demand.

Flogging is ‘presumptive marketing’ where businesses decide what will satisfy us and will make us happy.

Because they have a supply mentality they presume to know what is best for us.

Furthermore, flogging presumes that products they create for the ’average’ customer will fit the needs of everyone.

The flogger has a limited life span.

People have more choice today than ever before. Their wants and desires are complex. They lead busy and varied lives. And they are looking to organizations to be responsive to their particular wants and desires.

They are empowered. If they can’t get their special needs satisfied by their current company they will leave them in a heartbeat for another.

Successful marketing tomorrow will be built from ‘It’s all about you’.

Marketing that serves rather than flogs. Marketing that seeks to discover what individuals want rather than presuming that what is produced for the masses will work for them.

With an abundance of choice it’s pretty obvious that people will go where they are heard and where they will get special personalized attention; where they are served.

To get on the serving marketing track, ask these three questions:

▪️Who am I paying attention to? — This is not about a mass market, it’s about an individual. You can’t effectively serve markets (too many people with diverse wants). You can only produce for markets. Serving requires that you look at each person separately. One size never fits all.

▪️What are the unique characteristics of this person? — How are they different? What makes them special? What are their secrets? Be prepared to invest the time to discover what makes them tick.

This is not a quick process. Earning trust and the right to know her at a more intimate level is not a wham-bam-thank-you-mam process.

▪️What personalized ‘thing’ can I create or do to for them to reflect their distinctiveness? — What is the specific thing I can do for them to make them happy? The key here is not to think about whether or not your thing applies to anyone else. It doesn’t have to. It shouldn’t.

Remember: serving and flogging part ways here. Flogging always tries to find a solution that applies to as many people as possible.

Serving, on the other hand, tries to deliver a unique solution for each and every person.

Serving increases the relevance factor.

It’s DiFFERENT.

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

• Posted 7.20.15 at 05:42 am by Roy Osing
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July 16, 2015

5 proven reasons copying sucks creativity from an organization

Source: Pexels

5 proven reasons copying sucks creativity from an organization.

Benchmarking is viewed as a necessary process for most organizations. There are benchmarking consultant experts and courses you can take to learn how to benchmark proficiently and gain the maximum benefit.

In my view, benchmarking is a simple concept as is its process:

▪️Identify the organization that excels in some aspect of your operations that you believe requires improvement — customer service, business planning, customer engagement, sales management, accounts receivable, advertising planning and so on;

▪️Map (understand deeply) their system or process to understand exactly how they perform the operation;

▪️Define the actions you must take to incorporate their operating system into your operation with the objective of replicating their level of efficiency.

Benchmarking might help you improve your operations efficiency but it won’t make you stand-out from your competition.

Benchmarking doesn’t work for these reasons:

1. Benchmarking is copying

It’s ‘sucking up’ to an organization or individual recognized (by someone presumed to be the thought leader) to be the best at performing a particular function and is therefore the organization you should aspire to be.

It doesn’t make you special. It may help you improve your position in the crowd of hungry competitors by being more efficient at something, but it won’t help you stand out from them by being more relevant or unique.

Copying is the enemy of being different. The maximum benefit you can achieve by copying is best in class levels of performance which may return better operating results than previously obtained but unless you vault beyond these levels true differentiation won’t happen.

2. Benchmarking keeps you in the herd

The herd is a place where organizations go to blend in with others; to conform with what others do and to lose the DNA attributes that make them special.

Even if you are the ‘best of breed’ you’re still in the herd. It’s just that you execute a process better than any other herd member; you’re still rubbing shoulders with your sameness brethren.

And because you’re tagged ‘the best’, you have no motivation to break away from the herd; you find consolation in it.

The world is becoming a home for best practice addicts and as a result it’s boring and benign.

3. Benchmarking robs you of your individuality

Benchmarking results in conformance; it sucks any unique thinking you may have out of your system and replaces it with the need to capitulate to the leader of the herd.

Rather than look for a unique solution to your problem, you look for another herd member that has put in the work to create a solution that works for them and you assume you can boilerplate it and it will work for you.

When you copy someone or something, you relegate — subordinate — yourself to them. You roll over, put your ‘paws in the air’ and subsume yourself to the leadership of someone else. Looking up when you’re lying on the ground isn’t a very liberating place to be.

4. Benchmarking won’t make you special and differentiate you from your competitors

It has no strategic value in moving the organization to a position in the marketplace that ONLY you occupy.

“What are our competitors doing?” is often asked when organizations are thinking about improving how they conduct business, and the benchmarking process ensues — adding zero space between them and their competitors.

And, of course, if you’re chasing another organization, you’re adding nothing to the kitbag of things that make you ‘special’ in the eyes of your customers and encouraging them to spread your word to others and attract new business.

If you copy someone, all you do is lower the bar.

5. Benchmarking is the enemy of innovation

If you’re a copycat, you’re not an innovator. Benchmarking does little or nothing to stimulate innovation and creativity which seem to be values organizations covet in today’s world of uncertainty and constant change.

In fact benchmarking kills real innovation because it has performance improvement using the standard of another as its end game as opposed to revolutionary changes that determine new strategic outcomes.

We need to get our thinking straight.

Few organizations today stand out, which is sad; few are deemed to be really special by their customers.
Being remarkable isn’t a strategy on the radar of most, or if it is, it’s an elusive goal because leaders allow people to use traditional tools — like benchmarking best of class — to do their jobs.

Uniqueness, remarkability and being special come from being different than your competitors, not copying what they and others do, even if they perform certain functions more efficiently than you do.

We need to change our ways and stick copying where it belongs.

Let’s:
— Start thinking about being different than best in class, not copying best of breed;
— Covet being ‘different than breed’, not best of breed;
— Think about doing what others are not doing, not looking to other’s successes;
— Go in the opposite direction that others are going, not following in their footsteps.
— Define best in class to be the highest bar to be different from, not emulate;
— Purge boilerplates from our toolbox and break new ground (and maybe be the author of a new boilerplate).

Copying is the enemy of being special and remarkable.

And as leaders, let’s change the conversation in our organizations; purging the notion of benchmarking and copying as ways of achieving strategic progress by asking these types of questions of our teams:

▪️”What can we do to be different from the crowd of competitors?”;
▪️“How does what you’re proposing make us stand out from the competition and be special to our customers?”.
▪️“What crazy ‘insane’ thing is a different business to ours doing and how can we use the basics of the idea to morph it into a special idea for us?”

Benchmarking is absolutely the wrong thing to do when the end game for most organizations seems to be uniqueness and remarkability, but there are ways to ‘bend the curve’ and go in the right direction.

Start the change now, though, because time is not your friend.

Cheers
Roy
Check out my BE DiFFERENT or be dead book series

• Posted 7.16.15 at 05:39 am by Roy Osing
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May 18, 2015

Small biz leaders are great; here’s 5 reasons why

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Small biz leaders are great; here’s 5 reasons why.

Large and small teams face the same challenges: getting and keeping customers, engaging employees, managing costs and so on. Performance of large vs small, however, is determined by how effective the leader is.

I’m a fan of small business. I admire their passion and commitment.

And their leaders, who can teach the big guys a thing or two.

Here are 5 priceless gifts from small business leaders;

1. Get hands on — Feel the ‘hot breath’ of the customer everyday.

2. Get dirty — Feel what it’s like to do your business with insufficient tools and order fulfilment processes that don’t work the way they should. Follow up on customer complaints and learn how painful it can be.

3. Get in the trenches with the frontline — Take customer calls. Learn what it’s like representing your company to ‘the outside’. Make a point of honouring your frontline folks who succeed despite of the support they typically get from your managers.

4. Deliver value as your personal priority — It’s not about the company, it’s about YOU, and your personal contribution to what your organization delivers to your customers. Don’t delegate it.

5. Be human — And make a fool of yourself.

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

• Posted 5.18.15 at 04:30 am by Roy Osing
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