At what prices?

Myself-$7.75hr
AAFES products-premium prices
With what level of prota!ility?
Myself-"urre#tly low prota!ility
AAFES-$isi#% prota!ility
"ompare your curre#t sales with your assumptio#s& your e'pectatio#s a#d
your pro(ectio#s.
AAFES Sales are as e'pected
Myself-$)*&*** mo#th mi#imum re+uired
Are you o# trac,?
-es with .#iv of MAryla#d /A0 provi#% $)71* mo#th 2 will !e towards 3A44
253 with Empower 5etwor,
"ompare your level of sales with last year.
Much !etter.
What are the tre#ds?
2#crease
Are they up or dow#?
.p
2s this tre#d temporary or perma#e#t?
6erma#e#t
What do the tre#ds su%%est for the future of your !usi#ess?
.#limited 7pportu#ity
What could you do to respo#d more e8ectively to them?
4ear# 9orea# faster& 5etwor,i#% with "7:2" mem!ers& 6roduce;sell 4ear#
9orea# 5ow product<
Cash Flow Is Everything
4oo, at your cash =ow a#d levels of prota!ility from each product& service
a#d
area of activity.
Are your prots %oi#% up or dow#?
.p
Are they o# !ud%et or %oi#% sideways?
4oo, at the perce#ta%es. A#aly>e your retur#-o#-e+uity& retur#-o#-
i#vestme#t&
a#d retur#-o#-sales.
Are they i#creasi#% or decreasi#%?
2f your %oal is to !uild a %reat compa#y& why is#?t your compa#y already
%reat?
More capital re+uired for Empower #etwor,
Which of your products or services is selli#% well today?
My sales s,ills a#d Empower 5etwor,
Which of your products a#d services are the most prota!le?
My sales s,ills a#d Empower 5etwor,
Which o#es are doi#% poorly?
Which o#es do you lose mo#ey o#?
@ri#,i#% too much alchohol
2s your curre#t !usi#ess situatio#& positive or #e%ative& i# a#y area?
More capital re+uired
Aemporary or part of a lo#%-term tre#d?
4o#%term
0ow ca# you ,#ow for sure?
Actio#
0ow ca# you #d out?
$e(oi# Empower 5etwor, with /2M;Bic, Stri>heusC4i,e 0o!!sC6ro(ect AW74
What should you the# do?
Ma,e $)*&*** rst D* days
Clarity Is the Key
Why has your !usi#ess !ee# successful i# the past?
My study of !usi#ess
What have you do#e well i# the past that has !ee# respo#si!le for your
success to date?
My study of !usi#ess& mar,eti#% a#d sales.
What are the most importa#t s,ills a#d compete#cies that your compa#y
possesses today?
My study of !usi#ess& mar,eti#% a#d sales.
What are the very !est products a#d services that you o8er ri%ht #ow?
My study of !usi#ess& mar,eti#% a#d sales.
4oo, at the people arou#d you. Who are your most valua!le people?
AF0 Shoppette a#d .#iversity of Maryla#d /A0 mo#ey
Who are #o lo#%er as valua!le as !efore?
Who represe#ts a #et loss or detrime#t to your !usi#ess?
/e prepared to as, a#d a#swer the !rutal +uestio#s.
The Customer Is the King
Who are your !est customers today?
9orea#s& si#%le males& a#d !usi#ess opportu#ity see,ers
What a#d where are your !est mar,ets?
Asia a#d the i#ter#et
What do your customers li,e the most a!out what you do for them?
Ma,e them happy
What do they complime#t the most of what you o8er or do for them?
Ma,e them happy& tal, alot a#d very smart i# !usi#ess a#d life
What is your #um!er o#e area of customer satisfactio#?
Sales a#d prese#tatio#
What do your customers li,e the least a!out what you do?
Whe# 23m a#%ry or tired
What do they complai# a!out the most?
5ot havi#% what they wa#t availa!le for purchase
What is it that you sell that your customers a#d pote#tial customers prefer to
!uy somewhere else& rather tha# from you?
Identify Your Personal Strengths
4oo, at yourself ho#estly. What are your ow# perso#al !est s,ills& +ualities
a#d a!ilities?
E#%lish& Studyi#%& strate%ic pla##i#%& mar,eti#% a#d sales
What are the most importa#t thi#%s that you do at wor,& a#d for your
compa#y?
@aily facility improveme#t& strate%ic pla##i#%& mar,eti#% a#d sales
What are the most valua!le co#tri!utio#s you ma,e perso#ally to your
!usi#ess?
2#crease sales& customer service& a#d customer rete#tio#
Start Where You Are:
). What is wor,i#% the very !est i# your !usi#ess today?
Sales a#d mar,eti#%
What parts of your !usi#ess ma,e you the happiest?
Mar,eti#%
E. What?s #ot wor,i#% i# your !usi#ess?
Waiti#% o# capital
What causes you the most a%%ravatio# a#d frustratio#?
Waiti#% o# capital
D. What are your most importa#t products a#d mar,ets?
Me Fsales;mar,eti#%;e#%lish s,illsG& Empower 5etwor, i# th .S;South
9orea# mar,ets
What accou#ts for the lar%est portio# of your reve#ues?
AF0 a#d Empower 5etwor,
H. Who are your most importa#t people?
AF0 a#d Empower 5etwor,
Who are the people who accou#t for most of your results?
AF0 a#d Empower 5etwor,
5. What are your special tale#ts a#d s,ills?
What is it you do that accou#ts for most of your success?
I. What are the ma(or cha#%es ta,i#% place i# your mar,et?
What cha#%es should you ma,e to compe#sate for them?
7. What are your most treasured assumptio#s a!out your people& customers&
mar,ets&
products& services a#d yourself?
What if o#e of them was#?t true?
What would you do the#?
Imagine Starting ver
Jero-!ased thi#,i#% re+uires that you apply this KscraperL me#tality to every
part
of your !usi#ess. -ou do this !y as,i#% this ,ey +uestio#M
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?
2#stead of stru%%li#% to determi#e how you mi%ht modify& cha#%e& '& revise&
improve or alter some !usi#ess fu#ctio#& you i#stead as,&
K2f 2 was #ot doi#% this today& would 2 start it up a%ai# today& knowing what I
now know?
Ao start with& is there a#y product or service that you would #ot !ri#% to the
mar,et& o8er or sell& if you had to do it over a%ai#& starti#% today?
Si#ce N*O of your products a#d services are pro!a!ly %oi#% to !e o!solete
withi# the #e't 5 years& there
may !e products a#d services you are o8eri#% today that& !ecause of
cha#%ed mar,et
co#ditio#s& you would #ot i#troduce a%ai# today& if you had to do it over
a%ai#& knowing
what you now know. Ahese products or services are prime ca#didates for
disco#ti#uatio#
or divestiture.
2s there a#y person i# your !usi#ess that you would #ot hire& assi%#& appoi#t&
%o
to wor, for& or !ecome associated with if you had to do it over a%ai# today?
Most of your pro!lems i# !usi#ess will come from attempti#% to wor, with or
arou#d a diPcult perso#&
who ,#owi#% what you #ow ,#ow& you would#?t %et i#volved with a%ai#
today.
Who does this !ri#% to mi#d?
2s there a#y supplier& !a#,er or ve#dor that you are deali#% with today that&
,#owi#% what you #ow ,#ow& you would#?t %et i#volved with a%ai# 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
2s there a#y customer that you are selli#% to or servici#% today that& ,#owi#%
what you #ow ,#ow& you would#?t ta,e o# a%ai# as a customer?
Ma#y compa#ies are as,i#% this +uestio# a!out their diPcult customers a#d
decidi#% to let them %o.
Sometimes& o#e of the smartest thi#%s you ca# do is to Kre your customers.L
E#coura%e
them to %o a#d deal with someo#e else who would !e more appropriate for
them.
Assess Your (usiness #erations
2s there a#y expenditure i# your !usi#ess that you would #ot authori>e a%ai#
if
you had it to do over?
2s there a#y process& procedure or activity that& ,#owi#% what you
#ow ,#ow& you would#?t start up a%ai#& or %et i#to& if you were ma,i#% the
decisio#
today& ,#owi#% what you #ow ,#ow?
2s there a#y advertisi#%& mar,eti#% or selli#% methodolo%y or e'pe#se that
,#owi#% what you #ow ,#ow& you would#?t start up a%ai# today& if you had to
do it
over?
9eep as,i#%& KWhat?s wor,i#%?L
a#d KWhat?s #ot wor,i#%?L
Pay Attention To The Indi!ators
-ou ca# always tell whe# you are i# a >ero-!ased
thi#,i#% situatio# !ecause it
causes you co#ti#uous stress& a%%ravatio#&
frustratio#& #e%ativity a#d u#happi#ess. -ou
thi#, a!out it co#ti#ually. 7fte# you !ri#% it home at
#i%ht a#d discuss it at the family
di##er ta!le. Sometimes it will eve# ,eep you awa,e
at #i%ht.
Whe#ever somethi#% is #ot wor,i#%& or #ot wor,i#%
out the way you e'pected&
or causi#% you stress& #a#cial losses& a%%ravatio#&
or irritatio#& as,&
Knowing what I now know, would I get into this
again today if I had to do it over?
2f the a#swer is K5o<L the# your #e't +uestio# is
How do I get out and how fast?
The )e!ision Is Inevita"le
0ere?s a# importa#t poi#t. 2f somethi#% is #ot wor,i#%& eve#tually you will
have to
%et out of it. -ou will have to let the perso# %o& disco#ti#ue the product or
service&
elimi#ate the activity or e'pe#se& or cha#%e the method of operatio#. 2t is
o#ly a matter of
time. 2t is #ot %oi#% to %et !etter all !y itself. A#d every si#%le e'ecutive who
#ally
decides to %et out of a# u#happy situatio# says afterwards& K2 should have
do#e this a
lo#% time a%o<L
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 $now% you would get into it again
today if you had to do it over &
If not% get out% and as fast as you !an&
)raw A -ine .nder the Past:
). 2ma%i#e starti#% over a%ai# i# every part of your !usi#essQ is there
a#ythi#% you
are doi#% that& ,#owi#% what you #ow ,#ow& you would#?t start up a%ai#
today?
E. 2s there a#y perso# i# your !usi#ess life who& ,#owi#% what you #ow ,#ow&
you
would#?t hire& assi%#& promote or otherwise %et i#volved with a%ai# today&
,#owi#% what
you #ow ,#ow?
D. 2s there a#y product or service that& ,#owi#% what you #ow ,#ow& you
would#?t
!ri#% to the mar,et a%ai# today?
H. 2s there a#y i#vestme#t that you have made that& ,#owi#% what you #ow
,#ow&
you would#?t ma,e a%ai# today?
5. 2s there a#y !usi#ess activity or process that you are usi#% that& ,#owi#%
what you
#ow ,#ow& you would#?t start up a%ai# today?
I. 2s there a#y customer or mar,et that& ,#owi#% what you #ow ,#ow& you
would#?t
ta,e o# or %et i#to a%ai# today& if you had it to do over?
7. 2s there a#y career decisio# that you have made that& ,#owi#% what you
#ow
,#ow& you would#?t ma,e the same way if you had it to do over a%ai# today?
Start With The (asi!s
Ahe starti#% poi#t of !usi#ess a#alysis is for you to as,M
KWhat !usi#ess am 2 i#?L
What !usi#ess are you really i#?
What !usi#ess are you really& really i#?L
2 soo# reali>ed 2 was i# the Kgoal
a!hievement "usinessL FMe A77<
RE$:G.
My !usi#ess was helpi#% people to
achieve their perso#al a#d !usi#ess
%oals faster !y providi#% them with
practical ideas
that they could use immediately to %et
!etter results.
Ahis i#si%ht led me from tal,s a#d
semi#ars i#to audio a#d video
recordi#%&
!oo,s& trai#i#% pro%rams a#d 2#ter#et
!ased e- lear#i#% o# a variety of
su!(ects& i#cludi#% the developme#t
a#d prese#tatio# of the Aur!ostrate%y
6rocess.
The Customer As Center#ie!e
KWho is my customer?L
Who is the perso# who !uys from you today? @escri!e your customer i#
detail.
What is the a%e& i#come& educatio#& positio#& attitude& locatio# a#d i#terest of
your ideal customer?
Ma#y compa#ies are #ot e'actly sure of the a#swer to this +uestio#. Ahey
have at !est a#
u#clear picture of the psycholo%ical a#d demo%raphic characteristics of their
customers.
Who will your customer !e tomorrow& if curre#t tre#ds co#ti#ue?
Who should your customer !e& if you wa#t to !e successful i# the mar,ets of
tomorrow?
Who could your customer !e if you were to cha#%e& improve or up%rade your
product or service
o8eri#%s?
)etermine What You Sell
-our #e't +uestio# isM KWhy does my customer !uy?L
What value& !e#et& result or di8ere#ce does your customer see, or e'pect
to e#(oy as a result of doi#% !usi#ess
with you?
7f all the various !e#ets that your products or services o8er your
customers&
what do your customers co#sider to !e more importa#t tha# a#ythi#% else?
@o you ,#ow?
-our a!ility to de#e a#d promote this u#i+ue !e#et is the real ,ey to
competitive
adva#ta%e a#d mar,et success. -ou #e't +uestio# isM
KWhat do we do especially well?L
What do you do !etter tha# a#y of your competitors?
Where are you superior?
"ustomers o#ly !uy from a particular compa#y !ecause they feel that& i#
some way& that compa#y o8ers somethi#%
that is superior to that of a#y other o8eri#%.
What is your area of e'celle#ce?
Sac, Welch of :e#eral Electric was famous for sayi#%& K2f you do#?t have
competitive adva#ta%e& do#?t compete.L 0is philosophy was that :e#eral
Electric would
!e #um!er o#e or #um!er two i# every mar,et se%me#t i# which they
competed& or they
would %et out of that mar,et.
Are you #um!er o#e or #um!er two i# your mar,et?
"a# you !e?
What is your pla# to achieve this mar,et positio#?
)e/ne Your Com#etitor
Ahe #e't +uestio#& which we will deal with e'te#sively i# "hapter )*& isM
KWho is your competitio#?L
7#ce you have ide#tied your competitio#& you must as,&
KWhy does your pote#tial customer !uy from your competitio#& rather tha#
from you?L
What value or !e#et does he perceive that he receives from someo#e else
that he does #ot feel he
receives from you?
0ow could you o8set this perceptio#?
Set Clear 0oals
2# performi#% a# e'ami#atio# of your !usi#ess& you must as, co#ti#ually&
KWhat are my %oals?L
What are you tryi#% to accomplish?
2f you are clear a!out your %oals& what is holdi#% you !ac, from achievi#%
them?
-ou #eed clear& writte#& measura!le& time-!ou#ded %oals for every part of
your
!usi#ess a#d perso#al life. -ou #eed short-term& medium-term a#d lo#%-term
%oals. Each
%oal must !e i# writi#%& with pla#s for its accomplishme#t. -ou ca#?t hit a
tar%et that you
ca#?t see. A#aly>e everythi#% you do i# the course of a day or a wee,.
What are the E*O of your activities that could accou#t for N*O or more of
your results?
Sometimes& (ust )*O of your activities& if you were to pursue them
a%%ressively& could accou#t for 1*O of your
results.
What mi%ht they !e?
(e!ome A!tion*riented
What actions should you ta,e immediately i# respo#se to the a#swers to
these
+uestio#s?
What is the very rst thi#% you should do ri%ht #ow to i#crease your sales
a#d
improve your mar,et positio#?
A#other %ood +uestio# you should as, yourself isM
KWhy am 2 i# !usi#ess at all?L
Why do you e'ist?
What social purpose does your compa#y serve?
What loss would occur to society if you ceased to do !usi#ess alto%ether?
2ma%i#e that you had to %o i# fro#t of a %over#me#t tri!u#al each year to
(ustify
your co#ti#ued e'iste#ce.
What would you say to the tri!u#al i# terms of how you serve& help& or ma,e
a
di8ere#ce i# the lives or wor, of your customers to (ustify stayi#% i#
!usi#ess?
Ahese are ,ey +uestio#s that you #eed to as, a#d a#swer for your !usi#ess
o# a
re%ular !asis. -ou should as, a#d a#swer these +uestio#s for yourself& as
well. 2f you are
u#clear or i#accurate i# your a#swers to a#y of them& the health of your
e#terprise could
!e i# (eopardy.
Condu!t A (asi! (usiness Analysis:
). What are your %oals for your !usi#ess?
What are you tryi#% to accomplish?
E. Who is your ideal customer?
@escri!e him or her accurately.
D. Why does your customer !uy from you?
What special !e#ets or adva#ta%es do you o8er that your competitors
do#?t have?
H. What !usi#ess are you really i#?
@escri!e your !usi#ess i# terms of what you do for your customer& what
results you %et.
5. What are the E*O of your activities that could accou#t for N*O of your
results?
I. What is your competitive adva#ta%e& your Karea of e'celle#ce?L
2# what ways are you superior to 1*O or more of your competitors?
7. What specic& measura!le actio#s should you ta,e immediately i# a#swer
to the a!ove +uestio#s?
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! F5apoleo# 0illG
Aur!ostrate%y !e%i#s with your decidi#% e'actly what you wa#t to accomplish
i#
the ,ey areas of your !usi#ess life. 7#ce you ,#ow your %oals i# each area&
you ca# the#
decide upo# the !est steps you ca# ta,e to %et there.
The 0SPA 3odel
-ou ca# use the :7S6A Model as a %uide for strate%ic pla##i#%. Ahese ve
,ey
thi#,i#% tools form the !asis for successful !usi#ess operatio#s.
(egin With The End In 3ind
Ahe rst letter& K:L sta#ds for 0oals. Ahese are the ultimate results that you
wa#t
to achieve. -our %oals are the e#d tar%ets that you aim at throu%hout your
!usi#ess year
or pla##i#% period. -our %oals are your sales& prots& %rowth rate& mar,et
share& or
perce#ta%e of retur# o# assets& e+uity& i#vestme#t or sales. :oals are always
measura!le.
What are yours?
Ste#s on the Stair!ase
Ahe seco#d letter& K7L sta#ds for "4e!tives. Ahese are the steps you will
have to
ta,e to achieve your %oals. Ahey are li,e the ru#%s o# the ladder to %et to the
top.
-our !usi#ess o!(ectives ca# !e specic rates of retur# from advertisi#%&
levels of sales of
certai# products a#d services& #um!er of items shipped a#d !illed& mo#ies
collected a#d
cost levels for certai# activities. A lower defect rate or a hi%her sale amou#t
per customer
ca# !e o!(ectives o# the path to achievi#% the mai# corporate %oals. What
are your
i#terim o!(ectives?
5ow to 0et There
Ahe letter KSL sta#ds for Strategies. Ahese are the di8ere#t approaches that
you
ca# ta,e to achieve your o!(ectives a#d reach your %oals. For e'ample&
achievi#% a
specic level of prota!ility will re+uire produci#% a#d selli#% specic
+ua#tities of
products or services to a specic mar,et i# a specic way. Ahere are ma#y
di8ere#t ways
to %o a!out accomplishi#% these o!(ectives. Ahe way you choose is your
strate%y& a#d
may determi#e the success or failure of your e#terprise.
@o you produce& mar,et& sell& deliver yourself& or do you outsource some part
of
the process? @o you sell direct& via retail& direct mail& catalo% or 2#ter#et? @o
you char%e
more& char%e less& up-sell& cross-sell or discou#t? @o you e#ter certai#
mar,ets a#d
a!a#do# others? What is your strate%y? 2s it wor,i#%?
Planning For Su!!ess
Ahe letter K6L sta#ds for Plans. Ahese are your !luepri#ts for achievi#% your
%oals. -our pla#s are composed of step-!y-step lists of e'actly what you will
do& day !y
day& to %et from wherever you are to wherever you wa#t to %o. 6la#s are
always !ro,e#
dow# !y se+ue#ce a#d priority.
Some thi#%s have to !e do#e before others ca# !e do#e. Some thi#%s are
more important
tha# others i# achievi#% the %oal or o!(ective. Whe# your pla# is or%a#i>ed !y
se+ue#ce
a#d priority& you ca# accomplish much more i# less time.
/usi#ess life co#sists almost e#tirely of pro(ects& o#e after the other. A pro(ect
ca#
!e de#ed as a multi"task #ob& a (o! made up of ma#y small (o!s& each of
which has to !e
do#e properly to complete the lar%er tas,. -our a!ility to pla#& or%a#i>e a#d
complete
multi-tas, (o!s& ever lar%er a#d more comple'& is the most importa#t si#%le
eleme#t of
your success& i# a#y eld.
)evelo# a (ias for A!tion
Ahe last letter i# the :7S6A process& KAL& sta#ds for A!tions. Ahese are the
specic tas,s
that you are %oi#% to complete to carry out the plans to impleme#t the
strategies to
accomplish the ob#ectives to achieve your goals.
Every importa#t tas, must !e clear& measura!le a#d time !ou#ded. 2t must
!e assi%#ed to
a specic perso# who is +ualied to perform the tas, correctly& o# time a#d
o# !ud%et.
$hat gets measured gets done!
Fo!us on Pro/ta"ility
Ahe ce#tral purpose of Aur!ostrate%y is to !oost your cash =ow a#d prots&
a#d
to i#crease your retur# o# the mo#ey i#vested i# your !usi#ess. Ahe aim of
strate%y is to
%e#erate a hi%her level of cash =ow a#d prota!ility tha# you would reali>e
without the
strate%y& or with your previous strate%y. 2# short& it is to make more money
tha# you are
ma,i#% ri%ht #ow from the way that you are doi#% !usi#ess today.
Ahe esse#tial resources of people& mo#ey a#d tale#t that you #eed to
succeed i#
your !usi#ess are always limited. Ahey must !e focused a#d co#ce#trated for
ma'imum
results. Ahis is what a %ood strate%y e#a!les you to do.
Four Ways to Im#rove Your (usiness
Setti#% strate%y re+uires ma,i#% hard decisio#s i# four areasM First& you must
decide what you are %oi#% to do more of.
What?s wor,i#%?
What is selli#% well?
What products& services a#d activities are the most prota!le?
Seco#d& you must decide what you are %oi#% to do less of.
What?s #ot wor,i#%?
What co#tri!utes very little to %rowth a#d prota!ility?
What should you disco#ti#ue or elimi#ate !ased o# the realities of today?s
mar,et a#d today?s customers?
What ca# you do to reduce costs i# areas where they co#tri!ute very little to
results?
Ahird& what are you %oi#% to start doing that you?re #ot doi#% today?
What #ew products& services or activities should you i#troduce if you wa#t to
i#crease your sales a#d
prota!ility& or improve a#d streamli#e your activities?
Fi#ally& what are you %oi#% to stop doing alto%ether?
$emem!er& the critical resources of time a#d mo#ey are always scarce. Ahe
o#ly way you ca# improve results is
!y disco#ti#ui#% certai# activities alto%ether. -ou ca# the# cha##el those
resources i#to
areas where they yield hi%her levels of !usi#ess results.
Clarity is the ,ey to strate%ic success. Ahe more time you ta,e to !e
a!solutely
clear a!out who you are& a#d what you wa#t to accomplish& the more
successful a#d
prota!le you will !e.
)e!ide E2a!tly What You Want:
). What are your specic& measura!le lo#%-term goals for sales a#d
prota!ility i#
your !usi#ess?
E. What are the specic ob#ectives of sales& staP#%& productio#& delivery a#d
customer developme#t that you will have to achieve to accomplish your
%oals?
D. What are the various ways that you ca# meet your o!(ectives a#d achieve
your
%oals?
What is the !est strategy for you i# today?s mar,et?
H. What should you do more of a#d really focus o# to i#crease your sales a#d
prota!ility?
5. What should you do less of& !ased o# your curre#t e'perie#ce?
What?s #ot wor,i#%?
I. What should you start doing that you are #ot doi#% today?
What opportu#ities are availa!le to you?
7. What should you disco#ti#ue& a#d stop doing altogether& so that you ca#
free up
resources for more prota!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! FSoh#
Mc@o#aldG
Some time a%o& 2 co#ducted a strate%ic pla##i#% sessio# for the se#ior
e'ecutives
of a $)7E !illio# dollar compa#y. Ahe or%a#i>atio# was %oi#% throu%h a period
of
co#sidera!le tur!ule#ce& cha#%e& competitio# a#d #ew %over#me#t
re%ulatio#. Ahere had
!ee# lay-o8s& ri#%s& dow#si>i#% a#d divestme#ts. My clie#ts were the top
e'ecutives
who had survived the rece#t turmoil& a#d the !lood letti#% was #ot yet over.
2# these
circumsta#ces& they were !oth worried a!out the future a#d distracted i# the
prese#t.
Create A Five Year Fantasy
Ao %et them ce#tered a#d focused& 2 !e%a# the strate%y sessio# with a
process that
2 call +Ideali'ation&, 2# this process& which you ca# use yourself& 2 had the
mem!ers of
the top team create a Kve year fa#tasy.L
K4et us put aside the curre#t situatio# for the mome#t&L 2 su%%ested.
K2#stead& tell
me what this compa#y would loo, li,e ve years from #ow if it was perfect i#
every
respect?L
Ahis e'ercise forced them to ta,e their atte#tio# away from the pro!lems of
the
prese#t a#d focus their thi#,i#% o# the possi!ilities of the future.
As we we#t arou#d the room& each perso# co#tri!uted a# idea a!out what
the
compa#y would loo, li,e if it were perfect. 2 wrote each idea o# a =ip chart
a#d taped
the pa%es o#to the walls where everyo#e could see them. 2# less tha# half a#
hour& we
%e#erated E7 ideal descriptio#s.
We the# voted o# these ideali>ed %oals a#d or%a#i>ed them !y priority. We
e#ded up
with a series of clear o!(ectives, i#cludi#% Khi%hly prota!le& treme#dous
mar,et
reputatio#& hi%h stoc, price& top leadership& fa!ulous customer service& %reat
place to
wor,& !est ma#a%eme#t& rapid %rowth rate a#d top reputatio# i# the
i#dustry&L amo#%
others.
Thin$ In Terms f Possi"ilities
2 the# as,ed them& KAre these %oals possi!le?L 7#e !y o#e& they a%reed that
all of
these %oals were possi!le i# ve years. Ahey mi%ht #ot !e achieva!le i# o#e
or two years&
!ut i# ve years& every o#e of them could !e accomplished with will a#d
determi#atio#.
We came out of that sessio# with everyo#e revitali>ed a#d committed to
wor,i#%
o# achievi#% o#e or more of those ve-year fantasies. 7ver the #e't two
years& the
compa#y completely reor%a#i>ed. Ahey did more of some thi#%s a#d less of
others. Ahey
started doi#% thi#%s that they had #ot do#e i# the past& a#d they stopped
certai# activities
alto%ether. Ahey too, complete co#trol of their corporate desti#y a#d
cha#%ed it.
6eter @ruc,er o#ce wrote& KWe %reatly overestimate what we ca# accomplish
i# o#e
yearQ !ut we %reatly u#derestimate what is possi!le for us i# ve years.L
Thin$ A"out The Future
Future*orientation is a ,ey eleme#t of strate%ic pla##i#% a#d strate%ic
thi#,i#%.
2t is a ma(or respo#si!ility of leadership a#d top people i# every area. 7#ly
the leader ca#
thi#, a!out the future. 7#ly the leader ca# pla# for the future. Ahere is #o
o#e else i# the
or%a#i>atio# who ca# do it& a#d if the leader does #ot thi#, a!out a#d pla# for
the future
as a# o#%oi#% part of his (o!& it will #ot !e do#e. As they say i# Alas,a& K7#ly
the lead
sled do% ever %ets a di8ere#t view.L
0ow ofte# a#d how well the top people i# the compa#y thi#, a!out the future
lar%ely
determi#es the success or failure of the !usi#ess. K2f you do#?t ,#ow where
you?re %oi#%&
a#y road will ta,e you there.L
Ahe developme#t of the +uality of future-orie#tatio# re+uires that you
co#ti#ually
create a# ideal ima%e of your compa#y some time i# 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
7#ce you have a clear picture of your
ideal future& you the# retur# me#tally
to
your curre#t situatio# a#d thi#, a!out
what you would have to do& starti#%
today& to tur# your future visio# i#to a
curre#t reality. Ahis is called& K!ac,
from the future thi#,i#%.L
Ma,e a list of all the thi#%s that would
have to happe# for you to reali>e your
fa#tasy sometime i# the future. 2t is
ama>i#% how your perspective
cha#%es whe# you
loo, !ac, from the future& e'actly as if
you were loo,i#% !ac, from the top of
the
mou#tai# to yourself dow# i# the
valley& a#d seei#% the e'act route you
will have to
follow to %et to the top.
-eaders 5ave 8ision
2# DD** studies of leaders reviewed !y Sames Mac6herso#& searchi#% for the
commo# de#omi#ators of leadership throu%hout the a%es& the o#e +uality
that all the
studies had i# commo# was the +uality of vision. 4eaders have visio#Q #o#-
leaders do
#ot.
Ao !ecome a visio#ary re+uires that you develop the a!ility to ima%i#e&
de#e&
articulate& share a#d i#spire other people with a# e'citi#% picture of the
future. -ou %et
everyo#e i# your !usi#ess committed to fullli#% this visio#& a#d to wor,i#%
toward it
every day. Ahis is the ,ey to leadership& a#d to !uildi#% a %reat compa#y.
Aristotle wrote& +We "e!ome what we re#eatedly
do&, -ou !ecome a leader !y thi#,i#%
the way leaders thi#,& !oth i# your !usi#ess a#d i# your perso#al life. -ou
!ecome a
leader !y thi#,i#% a!out the future& a#d how you ca# ma,e it a prese#t
reality.
9ow% 3ore Than Ever
/ut it is i# times of rapid cha#%e& a#d tur!ule#ce i# the mar,et& that a#
e'citi#%
visio# of the future !ecomes more importa#t that ever !efore. A visio# ca#
!ecome the
force that !i#ds people to%ether i#to a solid team. 2t ca# %ive mea#i#% a#d
purpose to
wor,& eve# whe# times are tou%h a#d pay i#creases are #ot possi!le.
Ahere are ma#y ways you ca# approach the developme#t of a visio# for your
or%a#i>atio#. 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&
-our visio# is to K!e the !est<L at the most importa#t thi#% that you do for
your
customers. -our visio# is to serve your customers i# such a way that you are
see# as
superior i# a particular product& service or activity. 2ma%i#e that you could !e
,#ow# as
outstanding i# a#y o#e thi#% that you do for your customers. What would it
!e? -our
a#swer ca# !e the starti#% poi#t of a visio# for your !usi#ess that cha#%es
your future
completely.
Your Personal 8ision
-ou #eed a visio# for yourself as well. 6ro(ect forward 5 years i# your
ima%i#atio#. 2f your future were perfect i# every way& what would it loo, li,e?
2f your
i#come& your positio# i# your compa#y or eld& your family life& your health&
your (o!
a#d every part of your life were ideal i# every way& how would it !e di8ere#t
from today?
7#ce you are clear a!out your visio#& for yourself a#d for your !usi#ess& the
o#ly +uestio# you as, is&
&ow do I make it a reality?
Aop people thi#, co#ti#ually i# terms of how? Ahey thi#, i# terms of ta,i#%
actio#& of what ca# !e do#e.
7#ce you have claried your visio#& a#d determi#ed what you will have to do
to ma,e it a reality& you the# do somethi#% every day to move you toward
the creatio# of
your ideal future. -ou ta,e complete co#trol of your desti#y. As @ruc,er wrote&
KAhe very
!est way to predict the future is to create it.L A#d the starti#% poi#t is visio#.
)esign Your Ideal Future:
). What is your visio# for your compa#y? 6ro(ect forward a#d ima%i#e that
your
!usi#ess was ideal i# every way. What would it loo, li,e?
E. What is your visio# for yourself? 2f your life a#d career were ideal i# every
way&
what would it loo, li,e?
D. 2deali>e i# each area of your !usi#ess. 2f your products& services& sale a#d
prota!ility were perfect& what would they loo, li,e?
H. 2deali>e with re%ard to your people. 2f your sta8 were ideal i# terms of
s,ills&
a!ilities& perso#alities a#d results& how would they !e di8ere#t from today?
5. 2ma%i#e that a ma(or ma%a>i#e was %oi#% to write a story a!out your
compa#y.
What would you wa#t them to say?
I. 6ro(ect forward ve years a#d the# loo, !ac, to today from that va#ta%e
poi#t.
What would you have to cha#%e today to create your ideal future?
7. 2# what o#e area would it !e most helpful to sales a#d prota!ility if your
compa#y were widely ,#ow# as Kthe !est?L What steps could you ta,e
immediately to
!e%i# ear#i#% that reputatio#?
Create A 3ission Statement:
). @etermi#e your perso#al reaso#s for doi#% what you do. What %ives you a
se#se
of meaning and purpose i# life?
E. @ecide upo# the D-5 ,ey values upo# which your compa#y is !ased.
2#volve other
people i# the discussio#.
D. @e#e the actio#s a#d !ehaviors that people will e#%a%e i#& !oth i#side
a#d
outside the compa#y& that are co#siste#t with your values.
H. @esi%# a missio# stateme#t& a# ideal descriptio# of what your compa#y
wa#ts to
accomplish for its customers sometime i# the future.
7& Write out a list of your values& a#d what they mea#& plus your missio#
stateme#t&
a#d share them with your sta8 a#d customers.
:& "reate a perso#al missio# stateme#t for your career. What do you wa#t to
accomplish& a#d how do you wa#t to !e ,#ow#?
;& "reate a missio# stateme#t for yourself a#d your family. What is it that you
wa#t
to accomplish or achieve with your family i# 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!
F0aveloc, EllisG
Sac, Welch of :e#eral Electric o#ce said& K2f the rate of cha#%e outside your
or%a#i>atio# is %reater tha# the rate of cha#%e inside your or%a#i>atio#& the#
the e#d is i#
si%ht.L
2# times of tur!ule#ce& you should !e prepared to rei#ve#t your !usi#ess as
ofte#
as #ecessary as your e'ter#al world cha#%es.
As a# e'ercise& ima%i#e that you were starti#% your !usi#ess over a%ai#
today.
What would you %et i#to& or #ot %et i#to?
(undle of <esour!es
For %reater perspective& sta#d !ac, a#d view your !usi#ess as a bundle of
resources a#d
capa!ilities& li,e a re hose of tale#t a#d a!ility that ca# !e aimed i# ma#y
directio#s to
achieve di8ere#t results. 2#stead of limiti#% yourself to seei#% your !usi#ess
as a#
or%a#i>atio# that is desi%#ed to perform specic fu#ctio#s& produci#% a#d
selli#% certai#
products a#d services& thi#, of it as !ei#% capa!le of doi#% a variety of thi#%s
completely
di8ere#t from what you are doi#% today.
The 0reat Fire
As you thi#, a!out rei#ve#ti#% your !usi#ess& ima%i#e that your compa#y
!ur#ed
to the %rou#d while you were away. Whe# you arrived at the sce#e& you fou#d
that all
your sta8 were safe a#d sta#di#% arou#d i# the par,i#% lot.
As it happe#s& there is u#occupied oPce space availa!le across the street.
-ou
ca# immediately move i#to the #ew space a#d start your !usi#ess a#ew.
0ere is the
+uestio#M Which of your products a#d services would you !e%i# produci#%
a#d
distri!uti#% ri%ht away& a#d which o#es would you #ot start up a%ai#&
,#owi#% what you
#ow ,#ow?
E2amine Every <elationshi#
2f you were starti#% your !usi#ess over a%ai# today& completely free from a#y
e#cum!ra#ces of the past& which customers would you call rst& a#d which
o#es #ot at
all? Which ve#dors& suppliers& !a#,ers or other people would you immediately
%et i#
touch with& a#d who would you call later& if at all? What would you do rst?
What would
you do seco#d? What would you not start up a%ai#& ,#owi#% what you #ow
,#ow?
<einvent Your Sta= <elationshi#s
5ow& let?s %o !ac, to the par,i#% lot. 4et us assume that all of your people
are
safe a#d sta#di#% arou#d waiti#% for i#structio#s. Which of them would you
ta,e across
the street with you to the #ew !usi#ess& a#d which o#es would you leave i#
the par,i#%
lot? Who would !e the rst a#d most importa#t perso# whose services you
would wa#t to
secure? Who would !e the seco#d most importa#t? Who would !e third? A#d
so o#.
E2amine Your rgani'ation
2f you could rei#ve#t your !usi#ess& what would you do more of? What would
you
do less of? What would you start doi#% that you are #ot doi#% today? What
would you
stop doi#% alto%ether?
2# rei#ve#ti#% your or%a#i>atio#& as, yourself& KWhat are my most importa#t
tale#ts& s,ills& a!ilities a#d core compete#cies& a#d what else could 2 do with
them? Who
are my !est people a#d what else could they do? 9eep thi#,i#% a!out how
you would
rei#ve#t your !usi#ess if you were starti#% over. Ahis will ,eep you o# the
cutti#% ed%e of
creativity a#d i##ovatio#.
Thin$ In Terms of E2!ellen!e
Ahe ,ey +uestio#s i# rei#ve#tio# are& KWhat could you !e a!solutely e'celle#t
at
doi#% i# today?s mar,et?L Where could you !e the !est? Where could you
achieve worldclass
+uality? Where could you !e !etter tha# 1*O of your competitors? K
Ahe mar,et o#ly pays e'traordi#ary rewards for e'traordi#ary products a#d
services. Where a#d how could you do what you do i# a# e'traordi#ary
fashio#?
<einvent Your Career
Fi#ally& thi#, a!out rei#ve#ti#% yourself a#d your career o# a re%ular !asis& as
well. 2f you were starti#% over a%ai# today& what would you do more of, less
of, start or
stop? What would you %et i#to or %et out of?
2f you were starti#% your career over a%ai#& what additio#al ,#owled%e a#d
s,ills
would you wa#t to have? What ca# you do& starti#% today& to ac+uire those
,ey s,ills?
2ma%i#e that you could do a variety of (o!s. What would you really li,e to do
with your
life?
Si#ce you were %oi#% to have to rei#ve#t yourself re%ularly throu%hout your
career& it is
very importa#t that you thi#, a!out how you would do it well i# adva#ce of
whe# it
!ecomes #ecessary.
<einvent Your rgani'ation:
). 2f you were starti#% your !usi#ess over a%ai# today& what would you do
di8ere#tly?
E. 2f you were starti#% your career over a%ai# today& what would you %et
i#to& or out of?
D. 2f your !usi#ess !ur#ed to the %rou#d a#d you could o#ly o8er one of
your products or services& which o#e would it !e?
H. Who are your most importa#t customers& the o#es who you would
immediately move to ta,e care of& if you were starti#% over?
5. Who are your most importa#t people& !oth i#side a#d outside of your
!usi#ess?
I. What are your most importa#t co#tacts a#d !usi#ess relatio#ships& the
o#es you would wa#t most to preserve if you were starti#% over?
7. 2f mo#ey were #o o!(ect& what steps would you ta,e today to rei#ve#t
your !usi#ess?
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!
FA#drew "ar#e%ie -epitaphG
Ahe people i# your compa#y are the most importa#t parts of your !usi#ess.
All wor,& all
performa#ce& all results come from them& !oth as i#dividuals a#d whe# they
wor,
to%ether i# teams of some ,i#d. Ahe ma#a%er?s output is the output of his or
her team&
a#d of the i#dividual team mem!ers.
2# !usi#ess& people come rst. So!s& activities a#d results are o#ly achieved
after
the ri%ht people are i# place. Sim "olli#s says i# his !oo,& )ood to )reat, that
the ,ey to
!uildi#% a %reat !usi#ess is& Krst& %et the ri%ht people o# the !us& a#d
seco#d& %et the
wro#% people o8 the !us.L A#y other approach is !ou#d to fail.
Two Key >ualities to -oo$ For
Ahe !est people have two +ualities. First& they ca# !e cou#ted o# to %et the
(o!
do#e& to %et it do#e well a#d to %et it do#e i# a timely fashio#. Seco#d& they
%et alo#%
well with others. Ahey are %ood team players.
-ou should apply *ero"based thinking to each perso# who reports to you o# a
re%ular !asis. "o#ti#ually as,& K9#owi#% what 2 #ow ,#ow& would 2 hire& assi%#
or
promote this perso# a%ai#& if 2 had to do it over?L
2f the a#swer is K5o&L the# your #e't +uestio# is& K0ow do 2 remove or replace
this
perso#& a#d how fast ca# 2 do it?L
What do you wa#t a#d #eed those results to !e?
7#ce you are clear a!out the results you desire& set specic measures of
performa#ce o# each (o!& a#d each tas,. 0ow will you a#d the ca#didate
,#ow whether
or #ot the (o! has !ee# do#e properly? $emem!er& KWhat %ets measured&
%ets do#e.L
A#d& K2f you ca#?t measure it& you ca#?t ma#a%e it.L
Sele!t the <ight Peo#le:
). $a#, every o#e i# your compa#y o# a scale from )-)*& with )* !ei#% the
hi%hest& o# their compete#ce at their (o!.
E. $esolve to !uild a team of hi%hly motivated& compete#t a#d positive
employees to
help you %et the results you #eed.
D. Ahi#, throu%h each #ew (o! or hire carefully i# adva#ce. Write out the
descriptio#
clearly.
H. 2#terview at least D ca#didates for a #ew positio#. 2#terview the ca#didate
you
li,e at least D times& i# three places& a#d have him or her i#terviewed !y at
least D
other people.
5. "hec, refere#ces carefullyQ see, the fatal =aw or wea,#ess that would
ma,e the
ca#didate u#suita!le.
I. 0ire o#ly positive& li,a!le peopleQ they ma,e the !est team players.
7. $esults are everythi#%Q co#ti#ually emphasi>e a#d e'plai# e'actly what
results are
e'pected from each perso#.
Cha#ter 9ine 1 3ar$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! F6eter @ruc,erG
All !usi#ess strate%y is ultimately mar,eti#% strate%y. Whe#ever you are
worried a!out the
health or future of your !usi#ess& %et !ac, to thi#,i#% a!out mar,eti#% a#d
selli#%. Focus
si#%le-mi#dedly o# i#creasi#% sales a#d reve#ues. "utti#% e'pe#ses a#d
co#trolli#% costs
is a# o#%oi#% #ecessity& !ut you ca#?t cost-cut your way to !usi#ess success.
-ou have to
i#crease cash =ow& a#d this o#ly comes from selli#% 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& Ahere are almost always hidde#
opportu#ities
arou#d you. -our a!ility to u#cover a#d ta,e adva#ta%e of those opportu#ities
is the true
test of compete#ce as a# e'ecutive or as a !usi#ess.
)e!ide Who You Are and What You )o
0peciali*ation re+uires that you focus o# specic products or services&
specic
mar,ets or specic customer #eeds. -ou must %ht the temptatio# to try to
o8er too ma#y
products a#d services to too ma#y customers i# too ma#y areas. -ou must
speciali>e&
!oth i# your ow# mi#d& a#d i# the mi#d of your customer.
What is it exactly that your product or service is desi%#ed to achieve& avoid or
preserve for your customer? What are the core compete#cies or proprietary
methods or
tech#olo%ies that e#a!le you to speciali>e i# this area? What specic pro!lem
or #eed ca#
you solve or satisfy for your customer? A#d of all the di8ere#t results you ca#
%et with
your !usi#ess& where do you& should you& could you speciali>e?
See Yourself As A (usiness
2# your perso#al life& you should as, the same +uestio#s of yourself as well.
What
is your perso#al area of speciali*ation? 2# what way is your wor, superior to
your
competitors? What is the ideal positio# or area of respo#si!ility for you to
apply your
tale#ts? Where should you !e concentrating your e#er%ies to %et the very
!est results a#d
%reatest rewards possi!le?
Especially& you should co#ti#ually as, yourself& $hat is it that I do very, very
well?
What is your perso#al area of e'celle#ce? What could it !e? What should it
!e?
-oo$ing Ahead
4oo,i#% i#to the future of your !usi#ess or i#dustry& what #ew compete#cies
do you #eed
to develop to lead your eld i# the mo#ths a#d years ahead? What additio#al
,#owled%e
a#d s,ills do you #eed to ac+uire? What are those few tas,s& which& if you did
them i# a#
e'celle#t fashio#& would have the %reatest positive impact o# your career? 2#
what areas
could !e paid the very most for the applicatio# of your special tale#ts a#d
a!ilities? Ahis
+uestio# is (ust as releva#t for you as it is for your compa#y.
3ar$et 3ore E=e!tively:
). @ecide today to dominate your eld& to !e the !est at mar,eti#% a#d
i##ovatio# i# your product or service area. What is the rst step you should
ta,e?
E. @etermi#e your area of speciali>atio#& !y product or service& mar,et or
type of customer. What should it !e? What could it !e?
D. 0ow do you di8ere#tiate your product or service from those of your
competitors? 2# what ways are you superior to a#yo#e else? What could it !e?
What
should it !e?
H. What are you !est mar,et se%me#ts? Where are your hi%hest pro!a!ility
customers? Who ca# !e#et the most from usi#% what you sell?
5. 0ow ca# you or%a#i>e your !usi#ess so that you co#ce#trate your
mar,eti#% a#d selli#% e8orts o# those customers who ca# !uy a#d pay faster
tha# a#y
others?
I. What additio#al products& services& ,#owled%e or capa!ilities will you
#eed to domi#ate your mar,ets i# the mo#ths a#d years ahead?
7. What should you immediately start doi#% more of& less of& start or stop
to ad(ust to the curre#t mar,et?
Cha#ter Ten 1 Analy'e Your Com#etition
1oncentrate your strengths against your competitors relative weakness!
F/ruce
0e#derso#G
Know Your Enemy
0ere the# is a +uestio# for youM Who is your competitio#? E'actly? -our
choice of
competitor determi#es almost everythi#% you do i# your mar,et& (ust as the
choice of a#
adversary determi#es everythi#% a %e#eral does i# the process of co#ducti#%
military
operatio#s.
)etermine Their (uying 3otives
7#ce you have determi#ed why it is that people !uy from you& you must the#
as,
a#d a#swer& KWhy do people !uy from my competitors?L What value or
!e#ets are your
pote#tial customers co#vi#ced that they receive whe# !uyi#% from your
competitor rather
tha# from you?
What are your competitor?s ,ey stre#%ths? What are his areas of
speciali>atio#&
di8ere#tiatio#& se%me#tatio# a#d co#ce#tratio#? What does your competitor
have that
you do#?t have? What does he o8er that you do#?t o8er? What is he doi#%
more of or
!etter tha# you? What is his u#i+ue selli#% propositio#?
=set Their Advantages
As you study your competitors& loo, for ways to o8set or #eutrali>e the
adva#ta%es
their customers perceive them to have. What are your competitor?s
wea,#esses? 0ow ca#
you e'ploit these wea,#esses? What do you do !etter tha# they do? 2# what
ways are
your products or services superior to their o8eri#%s? 2# what areas do you
have a disti#ct
adva#ta%e over your competitors? What ca# you do to o8set your
competitor?s stre#%ths
a#d ma'imi>e your adva#ta%es? 0ow ca# you !etter positio# yourself a%ai#st
your
competitors i# a tou%h mar,et?
Ahe more time you ta,e to study a#d u#dersta#d why a#d how your
competitors
are successful i# selli#% to your customers& the more li,ely it is that you will
#d a#
opportu#ity to ta,e away their mar,et share. As Su# A>u says i# he 2rt of
$ar& K2f you
,#ow !oth yourself a#d your e#emy& you will prevail i# a hu#dred !attles.L
Analy'e Your Com#etition:
). Who is your competitio# for what you sell& with the e'act customers you
are
tryi#% to attract?
E. What would happe# if you cha#%ed your o8eri#%s i# such a way that you
tar%eted
a di8ere#t %roup of customers& o#e that would !e easier to sell to?
D. Why do your pote#tial customers !uy from your competitors? What
adva#ta%es do
they perceive?
H. What is your competitor?s u#i+ue selli#% propositio#? What special feature
or
!e#et does his product or service have that yours does #ot?
5. 2# what ways are you superior to your competitors? What ca# you o8er
that they
ca##ot? 0ow ca# you emphasi>e this adva#ta%e i# your sales a#d mar,eti#%
e8orts?
I. Where is your competitor vul#era!le? 0ow could you e'ploit this to your
adva#ta%e?
7. 0ow could you alter your mar,eti#% strate%y i# such a way that you could
achieve
domi#a#ce i# a particular area& with a specic customer or mar,et se%me#t?
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!
FS. 6aul :ettyG
Ahe most importa#t si#%le determi#a#t of your success is your area of
competitive
advantage. 2t is more importa#t tha# all other factors. 2t determi#es the rise
or fall of your
!usi#ess& your level of prota!ility& your positio# i# the mar,etplace a#d
everythi#% else
you accomplish.
-our competitive adva#ta%e must !e crystal clear to you a#d to everyo#e i#
your
compa#y& as well as to your prospective customers& 4ac, of clear competitive
adva#ta%e
leads +uic,ly to dimi#ished sales& loss of mar,et share& lower prota!ility&
price cutti#%&
a#d ultimately to !usi#ess failure.
Your 5igh Con!e#t
-our !usi#ess was started !ecause you or your compa#y had a# idea for a
product or service that was di8ere#t or !etter from other products a#d
services. 2t o8ered
to satisfy the same #eed or solve the same pro!lem !etter& faster or cheaper
tha# a#yo#e
or a#ythi#% else the# availa!le.
-our a!ility to di8ere#tiate your product i# the mi#ds a#d hearts of your
customers is the ,ey to wi##i#% them i# the rst place& a#d the# ,eepi#%
them after the
i#itial sale. Ao !uy from you& a customer must !e co#vi#ced that& all thi#%s
co#sidered&
your o8eri#% is di8ere#t a#d !etter tha# a#ythi#% else that is curre#tly
availa!le at the
same price. Sac, Welch was famous for sayi#%& K2f you do#?t have competitive
adva#ta%e&
do#?t compete<L
Three Areas of )i=erentiation
Ao succeed i# a tou%h mar,et& what you sell must !e superior to your
competitor?s o8eri#%s i# 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& 2t must !e
sold more professio#ally or serviced with %reater se#sitivity& speed or
ePcie#cy. 2t must
!e !etter i# at least three areas.
7#e of your ,ey (o!s i# strate%ic thi#,i#% is to ide#tify the three areas where
you are
!etter a#d the# to emphasi>e those areas of superiority i# all your mar,eti#%
a#d sales
0ow could you achieve operatio#al e'celle#ce i# your !usi#ess& or some part
of your
!usi#ess& i# such a way that you could !e the low-cost provider i# your
mar,et? 0ow
could you dramatically reduce your costs of doi#% !usi#ess a#d use this low
cost
adva#ta%e to i#crease your sales a#d prota!ility?
-ead the Field
Ahe seco#d area where you could achieve competitive adva#ta%e is i# the
use of
innovative te!hnology leadi#% to the productio# of hi%h +uality products
a#d services.
"ompa#ies li,e Mercedes a#d $ole' fall i#to this cate%ory& as does So#y a#d
4e'us.
"ustomers are willi#% to pay a premium for a !ra#d #ame that represe#ts
hi%h +uality a#d
cutti#%-ed%e tech#olo%y. Where are there opportu#ities for you to disti#%uish
your
products or services !y usi#% your ima%i#atio# to !ecome the +uality leader
i# your eld?
Close to the Customer
Ahe third area where you could develop competitive adva#ta%e is i# !ei#%
Kclose to the
customer.L Ahis re+uires that you i#vest the time to develop hi%h +uality
relatio#ships
!ased o# Kcustomer i#timacy.L "ustomers will pay more a#d remai# loyal
lo#%er to
compa#ies that seem to ,#ow a#d u#dersta#d them !etter tha# others.
6roviders of
speciali>ed services& such as co#sulti#% rms& law rms a#d accou#ti#% rms
fall i#to this
cate%ory.
2# what ways could you develop hi%her levels of trust a#d credi!ility with your
customers? What could you do to demo#strate to your customers that you
really care
a!out them a#d their i#terests? Ahis strate%y ca# o8er a !rea,throu%h
opportu#ity&
especially i# the sale of e'pe#sive products a#d services where resales a#d
referrals are
possi!le.
Pi!$ Your Targets
Ao lead your eld a#d achieve hi%her levels of prota!ility& you have to !e
outsta#di#% i# o#e of these three areas a#d very %ood i# the other two. 7#e
of the most
importa#t decisio#s you ma,e is to choose your area of competitive
adva#ta%e& a#d the#
to dedicate your compa#y to achievi#% it.
Strive For Su#eriority
-our area of e'celle#ce is the ,ey to your success i# a competitive
mar,etplace.
Ahis is where your product or service sta#ds out i# compariso# to your
competitors. 2t is a
value or !e#et that you o8er that #o o#e else o8ers. With re%ard to your
products or
services& what is it? What could it !e? What should it !e?
-our area of superiority is de#ed as a# area of performa#ce where your
product
or service is superior to that of your competitors. Ahis performa#ce di8ere#ce
is
si%#ica#t e#ou%h that your customer will !uy it& a#d eve# pay you more for
it. 2# what
way does your product perform !etter& i# terms of %etti#% results that your
customer cares
a!out& tha# your competitors? 0ow could you improve the performa#ce of
your products
or services i# some mea#i#%ful way?
Fi#ally& your uni3ue selling proposition is somethi#% that you a#d o#ly you
o8er
to your customers& a#d is somethi#% that they really care a!out. 5o o#e else
does as well
as you do i# this area. 5o o#e else achieves the same !e#et or result. What
is your
u#i+ue selli#% propositio#? What could it !e?
-oo$ Into Yourself
7# a perso#al level& you must co#ti#ually as, these +uestio#s of yourself.
What is your
perso#al area of e'celle#ce? Where are you superior to your competitors?
What is your
u#i+ue selli#% propositio#? 2# what ways do you do your (o! !etter or faster
tha# others?
What is it that you and only you do i# a# outsta#di#% fashio# for your
compa#y? What
could it !e? What should it !e?
6erhaps the most importa#t area of superiority you ca# develop is your a!ility
to
do your (o! +uic,ly a#d well& i# a# e'celle#t fashio#& co#siste#tly a#d
depe#da!ly every
time. Ahis is the ,ey to success as a# i#dividual i# a competitive mar,etplace.
)o It (etter% Faster% Chea#er:
). 2# what ways are your most importa#t products or services superior to
those of
your competitors?
E. What is your reco%#i>ed Karea of e'celle#ce?L 2f you were to co#duct a
survey&
what would people say that your compa#y does especially well?
D. 2# what ways are your products or services faster to ac+uire& use a#d e#(oy
tha#
your competitor?s?
H. What is your u#i+ue selli#% propositio#? What is it that your products or
services
o8er that #o other compa#y ca# match?
5. 2# what ways are your products or services cheaper to !uy a#d use& or
achieve
superior #a#cial results for your customers for the same cost?
I. 2f you were ,#ow# for !ei#% outsta#di#% i# a#y o#e area of your product or
service o8eri#%s& what o#e disti#ctio# would have the %reatest positive
impact o# your
sale a#d prota!ility?
7. 4ist the three areas where your products are& or ca# !e& superior to a#y of
your
competitors. What is your pla# to achieve this area of mar,et superiority?
What should
you do rst?
What )o You SellB
Ahe rst part of the mar,eti#% mi' is your 4roduct or service. Always de#e
your
product or service i# terms of what it KdoesL for your customers& versus what
it Kis.L 0ere?s
the +uestio#& K2s your product or service& as you are o8eri#% it today& ideally
suited for
your curre#t mar,et a#d customers?L
5ow 3u!h )o You ChargeB
Ahe seco#d part of the mar,eti#% mi' is your 4rice. 2s your price the ri%ht
price for what
you are selli#%? Should you cha#%e your price i# some way? Should you
i#crease it&
decrease it& com!i#e your price with other items& or add items to your price?
Should you
cha#%e your terms or o8er somethi#% di8ere#t for the same price?
)ou"le Your Pri!eB
2s there a#y place i# your !usi#ess that
you could i#crease your prices a#d still hold o#to your mar,et?
5ow )o You Sell ItB
0ow are you curre#tly promoti#% a#d selli#% your product or service? What?s
wor,i#%?
What?s #ot wor,i#%? Should you cha#%e your methods of advertisi#%&
mar,eti#%& selli#%
or ac+uiri#% customers i# a#y way?
Sell 3ore Stu=
Especially& should you up%rade a#d improve your direct selli#% methods&
people&
prese#tatio#& a#d capa!ilities?
Is Your Phone <ingingB
Ever after& whe# 2 thi#, a!out the e8ective#ess of advertisi#%& 2 always as,&
K2s
your pho#e ri#%i#%?L
Where )o You SellB
Ahe fourth eleme#t of the mar,eti#% mi' is the 4lace. Ahis is the specic
locatio# where
the sale of your product ta,es place. Where e'actly do you sell your product
today? @o
you sell i# homes& oPces or i# your ow# retail esta!lishme#t? @o you sell i# a
particular
city& state or #atio#wide? @o you sell i# stores or !y direct selli#% or !y direct
mail? Most
importa#tly& should you cha#%e the place at which you o8er your products?
A cha#%e i# the locatio# where you o8er your product or
service could cha#%e the directio# of your !usi#ess. What could it !e?
E2amine Your Assum#tions
Whe#ever you have diPculties selli#% a suPcie#t +ua#tity of your product or
service& you should e'ami#e all of your assumptio#s i# the areas of product&
price&
promotio# a#d place. -ou should !e willi#% to co#sider the possi!ility that
your method
is completely wro#% i# o#e or more of these areas.
2t ofte# happe#s that a si#%le cha#%e i# o#e of the K6?sL i# the mar,eti#% mi'
ca#
cha#%e the e#tire #ature of your !usi#ess& !oost your results& i#crease your
prota!ility
a#d move you toward mar,et leadership. 9eep a# ope# mi#d.
The Answers Are Changing
What is the correct mar,eti#% mi' for you to sell the very most at the hi%hest
cost& a#d
ear# the %reatest prot? What assumptio#s are you %oi#% o# that
may #o lo#%er !e true?
Change Your 3ar$eting 3i2:
C& /e prepared to challe#%e every aspect of your mar,eti#%& especially if it is
#ot
wor,i#% as well as !efore. What areas cause you the %reatest frustratio# a#d
dissatisfactio#?
D& What e'actly do you sell& de#ed as what it KdoesL for your customers&
versus
what it Kis?L
6& What prices do you char%e? 0ow could you cha#%e the way you char%e to
ma,e
!uyi#% from you more attractive?
E& 0ow do you promote your product? "ould there !e !etter ways of
advertisi#%
your products or services that would %ive you !etter results?
7& 0ow do you sell your product or service? 2s every perso# who deals with
your
customers fully trai#ed i# every ,ey result area of selli#%?
:& Where do you sell your product or service? Should you !e e'plori#% other
locatio#s or methods of sale?
;& Should you cha#%e more tha# o#e of the eleme#ts of the mar,eti#% mi' at
the
same time? "halle#%i#% mar,et co#ditio#s ofte# call for !old departures from
the methods
of the past& especially if they are #o lo#%er wor,i#%.
What Words )o You wnB
@eli!erately or accide#tally& each product or service develops a reputatio#
that
positio#s it a%ai#st its competitors. What is yours?
Create Your wn Cheat Sheet
0ere is the +uestio#. What words do you ow#? What words should you ow# i#
the
hearts a#d mi#ds of your prospective customers? What words could you ow#
if you were
to reor%a#i>e a#d redirect your mar,eti#% e8orts?
As a# e'ercise& ima%i#e o#e of your prospects meeti#% with o#e of your
customers. 2ma%i#e that your customer called you a#d as,ed you what you
would li,e
him to say to your prospect to co#vi#ce your prospect to !uy from you?
2f you could put to%ether a Kcheat sheetL with the e'act words or phrases
that you
would li,e your customer to leave i# the mi#d of your prospect& what words
would you
choose? Would you choose words li,e excellent 3uality, high integrity, friendly
service,
nice people, 3uick responses to problems, easy to work with, great prices?
0ow do you wa#t
to !e descri!ed !y your customers a#d pote#tial customers? 7f all the words
a#d phrases
that customers could use to descri!e your products a#d services& a#d your
compa#y&
which would !e the most helpful for you a#d your !usi#ess?
What Is Your (randB
0ow are you descri!ed a#d thou%ht a!out !y others whe# you are #ot there?
What is
your personal brand? What is your reputatio#? 0ow do other people thi#, a#d
tal, a!out
you& !oth as a perso# a#d as a co#tri!utor to the or%a#i>atio#?
Position Your Com#any For Su!!ess
). What is your compa#y?s reputatio# i# your mar,et? 0ow do customers a#d
competitors thi#, a#d tal, a!out you?
E. What words do people use whe# descri!i#% your products or services to
others?
D. 2f you could Kow#L certai# words that apply to your compa#y& your
products or
services& which words would you choose?
H. What words& if they were automatically associated with your compa#y&
would
have the %reatest positive e8ect o# your sales a#d prota!ility?
5. What cha#%es would you have to ma,e to assure that every customer
co#tact
rei#forced the messa%e that you wa#ted to se#d to your customers a!out
doi#% !usi#ess
with you?
I. What are the most importa#t promises that you ma,e to your prospects to
%et
them to !uy from you for the rst time? @o you ,eep these promises after the
sale?
7. What are the most positive thi#%s that your customers say a!out deali#%
with your
compa#y? 0ow could create a system to assure that more customers say
these thi#%s?
E'ami#e your complete ra#%e of products a#d services& especially the #ewer
o#es&
a#d as,& KWhich of these has the pote#tial to !e a !i% seller?L What would
you have to do
or i#vest i# o help ma,e it a ma(or source of sales a#d reve#ues?
9eep as,i#% yourself& K2f 2 had #ot already committed time a#d mo#ey to this
product& ,#owi#% what 2 #ow ,#ow& would 2 start i#vesti#% i# it a%ai# today?L
Apply the S/. co#cept to yourself a#d your career. -ou have several areas of
tale#t a#d a!ility& core compete#cies& e'perie#ce& ,#owled%e a#d educatio#.
What are
your cash cows& the s,ills that are ce#tral to your value to the or%a#i>atio#?
What are your Kstars&L the emer%i#% areas of activity& or #ew s,ills a#d
,#owled%e
that ca# ma,e you e'tremely valua!le i# the future?
What are your pote#tial areas of %reat success? What are the pro(ects&
respo#si!ilities a#d areas of opportu#ity& which& if you e'ploit them fully& ca#
e#a!le you
to move ahead more rapidly i# your career?
Fi#ally& what are the Kdo%L areas of your wor, life? Ahese are the tas,s or
s,ills
that you may have mastered i# the past& !ut which distract you from your
future. Ahese
are the (o!s a#d activities that ta,e up a lot of time& !ut which are #owhere
#ear as
valua!le as other thi#%s you could !e doi#%. What are they?
)evelo# Strategi! (usiness .nits
). /e%i# today to view each product or service as a separate !usi#ess&
respo#si!le
for %e#erati#% a certai# amou#t of prot every mo#th.
E. :roup your di8ere#t products or services !y similar characteristics& similar
customers& or similar mar,ets.
D. What are the cash cows of your !usi#ess? What are the core products or
services
that are esse#tial to your overall prota!ility?
H. What ca# you do today to safe%uard a#d #urture your cash cows to assure
that
they co#ti#ue co#tri!uti#% sales a#d cash =ow far i#to the future?
5. What are the KstarsL of your !usi#ess? What are the products that are
selli#% well&
i#creasi#% i# mar,et share& a#d %e#erati#% hi%h prots?
I. What could you do to i#crease the sales a#d prota!ility of your stars?
7. What are the K+uestio# mar,sL of your !usi#ess? Which of your curre#t
products
or services should you disco#ti#ue& ,#owi#% what you #ow ,#ow?
What Is To (e SoldB
Ahe rst +uestio# is& +What is to "e soldB, Ao a#swer this correctly& you
have to de#e
your product or service i# terms of what it does& a#d how it !e#ets your
customer. 0ow
does it improve his or her life or wor,? 7f all the !e#ets that a customer
e#(oys from
purchasi#% your product or service& what is the primary !e#et& the o#e thi#%
that you
o8er that ma,es you superior to a#y other competitor i# the mar,etplace? @o
you ,#ow
the a#swer to this?
Who Is 0oing To Sell ItB
Ahe seco#d +uestio# is +(y whomB, Who is actually %oi#% to sell the
product or service
a#d %et the chec, from the customer? 0ow are you %oi#% to recruit& trai#&
ma#a%e& eld
a#d support the sales perso#? 0ow is this salesperso# %oi#% to u#cover the
#ecessary
leads a#d %et face to face with the prospective customer?
Who Is Your CustomerB
Ahe #e't part of the +uestio# is KTo whomB,
5ow 3u!h Are You 0oing To ChargeB
2s there a#y price you would raise& lower or modify i# some
way?
Colle!ting Payment
Ahe #e't +uestio# is How is it going to be paid for? @o you re+uire
payme#t
i# full& i# adva#ce? @o you re+uire a deposit whe# the sale is made a#d with
the !ala#ce
to !e paid at a later time o# certai# terms? @o you o8er credit or #a#ci#%?
Especially&
what do your competitors do?
7fte# a cha#%e i# the way you char%e& or i# your prici#% structure& ca#
dramatically i#crease your sales. What could you do di8ere#tly i# today?s
mar,et that
would ma,e it easier or more attractive to !uy your product or service?
)elivering The 0oods
Ahe #al part of the +uestio# is How is going to be delivered
satisfactorily?
What is the e'act process of %etti#% the product or service to your customer
i# such a
way& a#d at such a level of +uality& that the customer !oth !uys from you
a%ai# a#d
recomme#ds you to others?
Sell 3ore E=e!tively:
). What is the e'act sales process #ecessary to sell your product or service&
from the
rst customer co#tact throu%h to the close of the sale? @o you ,#ow? 0ow
could it !e
improved?
E. What must your prospective customer !e co#vi#ced of !efore he chooses
your
product over that of your competitor?
D. 2f mo#ey were #o o!(ect& what special results or !e#ets do you o8er i#
your
sales e8orts that ma,e your product more desira!le tha# a#y other availa!le?
H. What is your process for recruiti#% salespeople? What media do you use?
What
levels of educatio# a#d e'perie#ce do you re+uire?
5. What ,i#d of a compe#satio# system do you have for salespeople? What is
it
!ased o#? 0ow could it !e improved so that it motivates !etter sales
performa#ce?
I. 0ow much of your !usi#ess comes from referrals from happy customers?
0ow
could you i#crease the #um!er of referrals you %et as a perce#ta%e of your
!usi#ess?
7. Why are#?t your sales twice as hi%h already? What sales e8orts could you
ma,e to
tap i#to that N*O of the mar,et that has #ever heard of you?
Follow the Formula
KWhy am 2 #ot at that %oal already?L What is holdi#% you
!ac,? What is the co#strai#t& cho,epoi#t or !ottle#ec, that sets the speed o#
how fast you
achieve your specic %oals of sales& cash =ow or prota!ility i# your
!usi#ess?
4et us retur# to my earlier +uestio#& KWould you li,e to dou!le your sales a#d
dou!le your i#come?L 2f your a#swer is KyesL& the# why have#?t you do#e it
already? Why
are#?t your sales twice as hi%h? Why are#?t your prots twice as hi%h? What is
holdi#% you
!ac,? What is co#strai#i#% you? What is the limiti#% factor?
Identify Your Personal Constraints
Ahi#, a!out your perso#al life a#d %oals as will. As, yourself& KWhat are my
most
importa#t %oals? Why am 2 #ot there already? What is it within me that is
holdi#% me
!ac,?L
2s it the lac, of a particular +uality& attri!ute or s,ill that sets the speed at
which 2
achieve my %oals? 2s it a particular attitude or !elief that is holdi#% me !ac,?
A#d most
importa#t& what could you do immediately to alleviate your ,ey co#strai#ts&
starti#% today?
Eliminate the <oad"lo!$s:
). Set clear& measura!le %oals for sales a#d prota!ility. 5ow as,& KWhat
determi#es
the speed at which 2 achieve these %oals?L
E. .se se#te#ce completio# e'ercises. Say& KWe could dou!le our sales if it
(ust
was#?t for..L a#d ll i# the !la#,.
D. 2de#tify the ma(or !loc, to your achievi#% your most importa#t %oal? 0ow
could
you remove it?
H. 4oo, withi# your compa#y for the limiti#% factors that hold you !ac,. What
are
the cho,epoi#ts i# your !usi#ess?
5. Assess each perso# i# each ,ey positio#. Are they compete#t a#d capa!le
of
doi#% what #eeds to !e do#e for you to !e successful?
I. 7#ce you have ide#tied your ,ey co#strai#t to !usi#ess success& as,&
K$hat else
is holdi#% us !ac,?L 9eep as,i#%& KWhat else?L u#til you %et to the real
pro!lem.
7. 2# your ow# career a#d perso#al life& what sets the speed at which you
achieve
your %oals? 4oo, withi# yourself for the a#swers.
3a$e Faster% (etter )e!isions
Whe#ever they !ri#% you a pro!lem
or a +uestio#& always as,& KWhat do you thi#, we should do?L
<eengineer Your Com#any:
). 6ractice simplicatio# as a way of life. 2# what areas of wor, has your life
!ecome
too complicated& a#d what ca# you do to %et it !ac, u#der co#trol?
E. 6ractice >ero-!ased thi#,i#% with every step a#d every activity. 2f you were
#ot
#ow doi#% it this way& would you start doi#% it this way a%ai# today?
D. Aa,e a si#%le comple' process or (o! a#d ma,e a list of every step from
!e%i##i#%
to e#d. 0ow could you reduce the #um!er of steps !y D*O the rst time
throu%h?
H. What tas,s or activities could you dele%ate to someo#e who ca# do them
7*O as
well as you?
5. What parts of your !usi#ess could you outsource to compa#ies or
i#dividuals who
speciali>e i# that area?
I. What parts of your wor, could you elimi#ate alto%ether with little or #o
impact o#
your !ottom li#e?
7. What parts of your perso#al life do you #eed to streamli#e a#d simplify?
Whe# are
you %oi#% to do it?
Pum# .# Your Pro/ts:
). @o a complete prot a#alysis o# every product a#d service you o8er. $a#,
them
from hi%hest to lowest.
E. 2de#tify the E*O of your products that accou#t for N*O of your sales.
Which are
they?
D. 2de#tify the E*O of your products a#d services that accou#t for N*O of
your
prots. Are they the same as your a#swer to TE?
H. After deducti#% all direct a#d i#direct costs& which are your most prota!le
products or services !ased o# cost a#d retur# o# i#vestme#t?
5. 0ow much is your time worth o# a# hourly !asis? /uild this cost i#to
everythi#%
you do to %et a# accurate measure of costs a#d prota!ility.
I. Attri!ute a perce#ta%e of all %e#eral a#d admi#istrative costs to each
product or
service you sell. Ahis e'ercise ofte# tur#s prots i#to losses.
7. 2f your compa#y was faci#% serious #a#cial shorta%es& which products or
services
would you focus your e#er%ies o#& a#d which would you disco#ti#ue? Ahi#,
a!out doi#%
it #ow.
It Starts From The To#
E#coura%e each perso# to #d ways to do their (o!s !etter& faster& a#d easier.
Allow them the freedom to e'perime#t with improveme#ts& with #o fear of
criticism if
they do#?t wor,. Sometimes the %reatest improveme#ts occur as the result of
a series of
small e'perime#ts that were #ot successful.
-ou should sta#d !ac, re%ularly a#d e'ami#e every product& service a#d
process.
0ow could you improve it i# some way? 0ow could you ma,e it !etter& faster
or cheaper?
0ow could you %et the same or !etter results faster& or at a lower cost? 5ever
!e satised
or co#te#t with e'isti#% +uality levels. Always loo, for ways to improve upo#
them.
/rai#storm with your team re%ularly to %e#erate ideas to cut costs& improve
+uality&
i#crease sales a#d !oost prots. E#coura%e everyo#e to thi#,& all day lo#%&
a!out how
they ca# do their (o!s !etter. Ma,e this commitme#t to co#ti#uous
improveme#t a part of
your corporate culture.
Commit to E2!ellen!e
2f everyo#e i# your mar,etplace referred to you a#d your o8eri#%s as the
best in the business& what ,i#d of a di8ere#ce would that ma,e i# your sales
a#d
prota!ility?
With that as your %oal& what would you have to do& starti#% today& to assure
that
everyo#e refers to you as Kthe !estL sometime i# the future? What could you
do& starti#%
today& to !e%i# this process? What is the rst step you should ta,e?
>uality and Pro/ta"ility
KWhich of these compa#ies do you feel is the !est i# this particular i#dustry?L
0ere?s the +uestio#M 2f such a survey were do#e amo#% pote#tial customers
for what you
sell& where do you feel your compa#y would ra#, i# such a compariso#?
Would you !e
ra#,ed as Kthe !est&L or somewhere lower? What could you do to move
higher i# the
ra#,i#%s? What o#e step could you ta,e immediately?
5ow )o Customers )e/ne >ualityB
What )o Customers WantB
Commit to Continuous Im#rovement:
). 0ow do your customers de#e +uality? What is most importa#t to them i#
choosi#% your product or service?
E. 0ow do you ra#, a%ai#st your competitors o# a scale from o#e to te#? 0ow
could
you improve your ra#,i#% immediately?
D. Set up a reward system i# your compa#y for su%%estio#s a#d ideas to
improve
+uality a#d achieve %reater customer satisfactio#?
H. @o you have +uality a#d performa#ce sta#dards for people& products a#d
activities
i# your compa#y? @oes everyo#e ,#ow what they are?
5. What compa#y do you thi#, is the !est i# your !usi#ess& the most
respected a#d
prota!le? 0ow could you !e#chmar, yourself a%ai#st them?
I. What o#e step could you ta,e immediately to improve customer
satisfactio# with
your compa#y?
7. What could you do perso#ally to up%rade a#d improve the +uality of your
performa#ce i# the most importa#t thi#%s you do i# your (o!?
)e/ne Your Core (usiness
What is your core !usi#ess? 2f everythi#% else was stripped away& what would
!e left at
your core?
2de#tify the E*O of opportu#ities availa!le to you today that ca# !e
respo#si!le for
N*O of your sales a#d reve#ues i# the years ahead. Ahese will almost always
!e
e'te#sio#s of your curre#t !usi#ess& your core compete#cies& a#d your areas
of
e'celle#ce. -our choice of the opportu#ities availa!le to you lar%ely
determi#es the
future of your !usi#ess. What are they?
Fo!us n 8alue
What are the E*O of your wor, activities that accou#t for N*O of your
perso#al
value a#d your co#tri!utio# to your compa#y? 2f you (ust dou!led the amou#t
of time you
spe#d o# the E*O of your hi%h value tas,s& a#d disco#ti#ued the N*O of low
value;#o
value tas,s that you do& you could !ecome most of the most productive
people i# your
compa#y. Ahese are your core tas,s.
What are the E*O of pro!lems& a%%ravatio#s& a#d irritatio#s that accou#t for
N*O of
your headaches i# your wor,? Who are the most diPcult people& customers
or situatio#s
that you have to deal with each day? What ca# you do today to mi#imi>e or
elimi#ate
them?
/ased o# this N*;E* a#alysis& what steps ca# you ta,e immediately to
improve&
i#crease& a#d stre#%the# your core products& services& customers a#d
activities? What
should you do rst?
Where )o You E2!elB
2# what areas of your products a#d services are you& or could you !e better
tha#
15O of your competitio#?
Advan!e Planning
Ahis 1itadel is your core !usi#ess. What is yours? Whatever it is& practice
KSce#ario
6la##i#%L o# a re%ular !asis. As, yourself& KWhat is the worst thi#% that could
possi!ly
happe# i# my mar,et today?L
Whatever your a#swer is to that +uestio#& !e%i# ma,i#% provisio#s today to
assure
that you will !e a!le to survive& should it occur.
Your Personal Citadel Strategy
As a# i#dividual& you must !e clear a!out your perso#al core compete#cies&
as
well. 0ow could you improve i# each o#e of them? What core compete#cies
will you
#eed to lead your eld i# the years ahead? What is your pla# to ac+uire the
core
compete#cies of tomorrow?
Con!entrate n the Core:
). What is your core !usi#ess? What products a#d services are most
respo#si!le for
your success today?
E. What are your core compete#cies? What is it that your compa#y does
e'tremely
well?
D. What are the worst possi!le thi#%s that could happe# to your !usi#ess i#
the #e't
year? What are your pla#s to deal with them& should they occur?
H. What are your #o#-core products& services or activities? What would
happe# if you
disco#ti#ued them e#tirely?
5. Who are your core customers& a#d what are you doi#% to assure that they
#ever
leave you?
I. Who are your core people& the o#es who are most importa#t for the
survival a#d
%rowth of your !usi#ess? What is your strate%y to ,eep them?
7. What are your core fu#ctio#s? What are the thi#%s you do that are ce#tral
to your
(o!? What activities are peripheral?
Four Key >uestions
Whe# co#sideri#% !uyi#% a product or service& customers have four +uestio#s
that
must !e a#swered !efore %oi#% aheadM
). What does it cost?
E. What do 2 %et for the mo#ey?
D. 0ow fast do 2 %et the !e#ets you promise?
H. 0ow sure ca# 2 !e that 2 will %et those !e#ets?
Whichever compa#y or salesperso# a#swers these +uestio#s most
co#vi#ci#%ly
wi#s the sale.
)eliver n Your Promises
KWhat results or !e#ets do my customers e'pect of my
product or service?L a#d K0ow co#siste#tly do my customers %et those
results a#d !e#ets
whe# they !uy my products or services?L Ahis is the true de#itio# of
K+uality.L
Uuality ca# !e de#ed as& Kthe perce#ta%e of times that your product or
service
does what you say it will do& a#d co#ti#ues to do it.L
A +uality rati#% of )**O& or perfect +uality& mea#s that what you sell always
delivers o# your promises. A +uality rati#% of 1*O mea#s that your product
%ets the
desired or promised results #i#e out of te# times.
-ittle Things 3ean A -ot
Federal E'press has determi#ed that if its +uality rati#% was 11.1*O& they
would
ma,e mista,es i# the delivery of HH&*** e#velopes a day. At 11.1*O +uality&
Federal
E'press would collapse u#der its ow# wei%ht of co#fusio#. Ahat is how
importa#t +uality
is i# a !usi#ess.
-our perso#al success is also determi#ed !y how co#siste#tly a#d depe#da!ly
you
perform a#d deliver o# your respo#si!ilities a#d promises. -ou should
co#ti#ually as,
yourself& KWhat results are e'pected of me?L
-our level of e8ective#ess is always de#ed !y others& !y what they #eed
from
you. 4eaders are always as,i#%& KWhat does this situatio# #eed of me?L 7#ce
they are
clear& they co#ce#trate their e#er%ies i# those areas.
As, yourself& K7f all the results 2 ca# accomplish& what are the most valua!le
a#d
importa#t i# terms of my rewards a#d my future?L
Im#roving Your A"ility to 0et <esults
0ere are seve# of the !est +uestio#s you ca# as, a#d a#swer to improve your
a!ility to %et resultsM
). KWhy am 2 o# the payroll?L What e'actly have you !ee# hired to
accomplish?
Ma,e sure that what you are doi#% every day is the a#swer to this +uestio#.
E. KWhat are my hi%hest value tas,s a#d activities?L 7f all the thi#%s that you
could !e doi#% duri#% the day& what are the activities that you e#%a%e i# that
co#tri!ute
the %reatest value to yourself a#d your compa#y?
D. KWhat are my ,ey result areas?L What are the core compete#cies a#d ,ey
tas,s
that you must a!solutely& positively do i# a# e'celle#t fashio# to produce the
most
importa#t a#d valued results e'pected of you? $esolve today to !ecome a
Kdo-it-toyourself-
pro(ect.L For the rest of your career& dedicate yourself to co#ti#ually lear#i#%
a#d
improvi#% i# those areas where top performa#ce is most vital to your
success. :etti#%
better at your ,ey tas,s is o#e of the !est time savi#% tech#i+ues of all.
H. KWhat ca# 2 a#d o#ly 2 do that& if do#e well& will ma,e a real di8ere#ce?L
Ahere is always somethi#% that o#ly you ca# do that ca# ma,e a si%#ica#t
di8ere#ce to
your life a#d your wor,. 2f you do#?t do it& it wo#?t %et do#e. 5o o#e else will
do it for
you. /ut if you do it& a#d you do it well& it ca# ma,e a si%#ica#t di8ere#ce.
What is it?
5. KWhat o#e s,ill& if 2 developed a#d did it i# a# excellent fashio#& would
have
the %reatest positive impact o# my career?L Ahere is always o#e s,ill that if
you developed
it a#d did it well& would have a %reater a#d more positive impact o# your
career tha# a#y
other si#%le s,ill. -our (o! is to ide#tify that s,ill a#d the# put your whole
heart i#to
!ecomi#% a!solutely e'celle#t i# that area& whatever it is.
I. KWhat o#e result& if 2 achieved it co#siste#tly for my customers& would
most
satisfy those customers a#d !ri#% me the %reatest #um!er of additio#al
customers?L What
must your customer !e a!solutely co#vi#ced that he or she will receive from
you i# order
to !uy your product or service a#d to recomme#d it to his or her frie#ds? 0ow
could you
improve your +uality a#d service i# that area?
7. Ahe #al +uestio# for perso#al success& #um!er seve#& is thisM KWhat is the
most valua!le use of my time ri%ht #ow?L .se this +uestio# as your %uidi#%
star
throu%hout the day. 9eep as,i#%& What is the most valuable use of my
time, right
now?
All )ay -ong
2f you could o#ly perform o#e tas, all day lo#%& what o#e thi#% could you do
that
would co#tri!ute more value to your life a#d wor, tha# a#y other si#%le tas,
or activity?
FFFFI9TE<9ET 3A<KETI90 WIT5
E3PWE< 9ETW<K (I3GP<SPE<ITY
TEA3GP<HECT AW-FFFF
Whatever your answer% #ut mastery of that tas$ 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 $ey ideas in the Tur"ostrategy
#ro!ess:
). Start Where You AreM @o a complete a#d ho#est a#alysis of your
!usi#ess as it is
today& i#cludi#% the curre#t status of your sales& reve#ues& prota!ility a#d
the mar,et
situatio# arou#d you.
D& )raw A -ine .nder the Past: Apply >ero !ased thi#,i#% to every part of
your
!usi#ess. 2f you were #ot doi#% it today& knowing what you now know& would
you %et
i#to it a%ai# today?
6& Condu!t A (asi! (usiness Analysis: E'ami#e your products& services&
processes&
a#d activities as if you were loo,i#% at them for the rst time. /e prepared to
as, yourself
the K!rutal +uestio#sL a!out each o#e of them.
E& )e!ide E2a!tly What You Want: Set clear& writte#& measura!le %oals
a#d
o!(ectives for yourself i# each part of your !usi#ess.
7& )esign Your Ideal Future: 6ro(ect forward D-5 years a#d ima%i#e that
your
!usi#ess was ideal i# every respect. What would it loo, li,e? What could you
do& starti#%
today& to ma,e that future visio# i#to a curre#t reality?
:& Create A 3ission Statement: @ecide e'actly what it is you wa#t to
accomplish
for others with your !usi#ess. Ma,e it measura!le. Ma,e it e'citi#%. Share it
with
everyo#e.
;& <einvent Your rgani'ation: 2ma%i#e starti#% your !usi#ess or career
over a%ai#
today& with your prese#t ,#owled%e a#d e'perie#ce. What would you do
di8ere#tly?
?& Sele!t the <ight Peo#le: Fully 15O of your success i# !usi#ess will !e
determi#ed !y the people you choose to wor, with a#d for. Aa,e the time to
ma,e %ood
perso##el decisio#s.
I& 3ar$et 3ore E=e!tively: Ahi#, throu%h every part of your mar,eti#%
strate%y !y
applyi#% the four pri#ciples of speciali>atio#& di8ere#tiatio#& se%me#tatio#
a#d
co#ce#tratio# to every product a#d service.
C@& Analy'e Your Com#etition: @ecide e'actly who you are competi#%
a%ai#st& a#d
why it is that your prospective customers prefer to !uy from them. 0ow could
you o8set
this perceived adva#ta%e?
CC& )o It (etter% Chea#er% FasterM "o#ti#ually see, ways to serve a#d
satisfy your
customer i# a superior fashio# to a#y o#e else i# your mar,et. 5ever stop
raisi#% the !ar
o# yourself.
CD& Change Your 3ar$eting 3i2: 2ma%i#e !ei#% your ow# ma#a%eme#t
co#sulta#t
a#d as,i#% yourself hard +uestio#s a!out the appropriate#ess of your
product& price&
place a#d promotio# i# today?s mar,et.
C6& Position Your Com#any For Su!!essM @etermi#e how you wa#t to !e
thou%ht
a!out a#d tal,ed a!out !y your customers a#d prospective customers. What
are the very
!est words they could use to descri!e you?
CE& )evelo# Strategi! (usiness .nits: @ivide your products a#d services
i#to o#e
of four cate%oriesM cash cows, stars, 3uestion marks and dogs. Ma,e o#e
perso#
respo#si!le for sales a#d prota!ility for each product or %roup of products.
C7& Sell 3ore E=e!tively: Focus si#%le-mi#dedly o# up%radi#% the +uality
of your
sales e8ort. 0ire more selectively& trai# more thorou%hly& a#d ma#a%e more
professio#ally. Sales are the life!lood of the !usi#ess.
C:& Eliminate the (ottlene!$s: 2de#tify the factors that determi#e how
fast you
achieve your %oals of sales a#d prota!ility. "o#ce#trate o# alleviati#% these
!ottle#ec,s
i# every part of your !usi#ess.
C;& <eengineer Your Com#any: "o#ti#ually see, ways to streamli#e a#d
simplify
the process of produci#% a#d selli#% your products a#d services. 4ear# to
dele%ate&
outsource& dow#si>e a#d elimi#ate the comple'ity of everythi#% you do.
C?& Pum# .# Your Pro/ts: Evaluate every product a#d service to
determi#e e'actly
how much #et prot you are actually ear#i#% from each item you sell. $esolve
to
disco#ti#ue products a#d services that are #ot as prota!le as others& a#d
cha##el more
resources i#to those products that are the mai#stays of your !usi#ess.
CI& Commit To Continuous Im#rovement: 2#stall the 9ai>e# process of
Kco#ti#uous !etterme#tL i#to your compa#y. Fi#d out how your customer
de#es
K+ualityL a#d the# co#ti#ually strive to e'ceed e'pectatio#s.
D@& Con!entrate n The Core: 2de#tify the most importa#t products a#d
services
you o8er& a#d the# focus o# %etti#% !etter a#d !etter selli#% more a#d more
of them.
6ro!a!ly N*O of the mar,et pote#tial for your core products has #ot yet !ee#
tapped.
E). Fo!us n <esults: "o#ce#trate your !est e#er%ies a#d resources o#
%etti#% the
most importa#t results possi!le for your compa#y. Set priorities i# every area
a#d the#
wor, si#%le-mi#dedly to complete the few tas,s that are more valua!le tha#
everythi#%
else put to%ether.
Ahe most importa#t part of the Aur!ostrate%y is #ot what you lear#& !ut the
actio#s you
ta,e& a#d how +uic,ly you ta,e those actio#s. Ahere is a direct relatio#ship
!etwee# how
fast you move o# a #ew idea a#d how li,ely it is that you will ever move o# a
#ew idea.
$esolve today to !ecome i#te#sely actio#-orie#ted for the rest of your career.
Sust do it<
The Tur"ostrategy Pro!ess