| (Note, although this article was written
| |
| | of OUTPUT to INPUT. Efficiency, on the
|
| in early 2002, it is totally relevant.
| |
| | other hand, is how many INPUT actions you
|
| Right now.)
| |
| | take per unit of time. For instance, you
|
| About three weeks ago I was surprised by
| |
| | can increase the number of calls you make
|
| this headline in the morning paper:
| |
| | per hour -- that is an increased
|
| "Fed says September 11th hurt economy."
| |
| | efficiency. You can increase the volume
|
| Wow!
| |
| | of sales for the same number of calls --
|
| "What did I miss here?" Was this news?
| |
| | that is increased effectiveness.)
|
| USA Today thought it was. I was shocked
| |
| | Random examples of things that might be
|
| the Fed saw fit to announce it.
| |
| | missing include consistency in marketing,
|
| And this week, another one: "NBER
| |
| | new products or services, more sales
|
| Confirms Recession."
| |
| | people, a source of new leads, an
|
| Hey, Greenspan! Get out and talk to
| |
| | employee (or a self-) development plan.
|
| people. All over the country people tell
| |
| | 2. What are your goals related to this
|
| me that if they break even this year,
| |
| | factor?
|
| they'll consider it a win. If that's not
| |
| | Setting new goals can, all by itself,
|
| a "recession"...
| |
| | transform your business. Your goals
|
| But have you ever wondered what it takes
| |
| | should be bold and dynamic -- big enough
|
| to end a recession? Not the textbook
| |
| | to inspire you and everyone around you.
|
| answer: two consecutive quarters of
| |
| | Goals work best when they are objective
|
| growth. Have you ever wondered what
| |
| | and quantifiable. And you must believe
|
| causes those consecutive growth quarters
| |
| | they are achievable - regardless of how
|
| in the first place?
| |
| | difficult or impossible they might seem.
|
| The economy turns up when enough people
| |
| | Some examples of bold goals: dominate
|
| get tired of the economy being turned
| |
| | your market niche; double last year's
|
| down.
| |
| | sales; top of the list in prospect mind-
|
| Companies need things. They need new
| |
| | share; 100 percent customer repurchases;
|
| people or new services like marketing and
| |
| | three new products developed and shipped
|
| sales. Some need new premises or new
| |
| | by mid-year; customer problems solved in
|
| equipment. You might be saying something
| |
| | half the current time, a career path for
|
| like "We really need this or that but
| |
| | each employee, sufficient cash to cover
|
| we're not spending another dime until the
| |
| | any business emergency.
|
| economy gets better."
| |
| | 3. How are you going to achieve these
|
| So we suffer from a cascade effect where
| |
| | goals?
|
| you are waiting for someone else to make
| |
| | A successful plan to achieve your goals
|
| the first move -- and the economy spirals
| |
| | has several components:
|
| downward -- getting worse and worse --
| |
| | Who will be accountable for each goal?
|
| until...
| |
| | Not you? then which executive? Which
|
| Until people begin to say, "I'm tired of
| |
| | managers? What department?
|
| this," or "I can't wait anymore," or
| |
| | Some factors map directly onto a specific
|
| "Let's get going." And as if by magic
| |
| | department, like revenue is owned by
|
| people start spending money again, and
| |
| | sales and marketing. But factors like
|
| poof -- the recession's over.
| |
| | intellectual capital or customer
|
| I'm a growth strategist -- I help people
| |
| | satisfaction - they don't fall clearly
|
| figure out the best way to build their
| |
| | into one department.
|
| businesses and make more money. I'd like
| |
| | Even so, someone still has to 'own' the
|
| to know when this recession will end, but
| |
| | factor. Figure out who. If no single
|
| I'm not an economist and that's to
| |
| | person is accountable - guess what - it
|
| difficult a question. Instead, I ask know
| |
| | won't happen.
|
| how much longer can people sit on their
| |
| | Whoever accepts accountability for a
|
| duffs before they finally get so tired
| |
| | specific goal should answer the remaining
|
| they have to act again.
| |
| | questions.
|
| I expect early next year people are going
| |
| | What strategies and tactics have a good
|
| to reach that point. Although The Fed
| |
| | chance to realize the goal?
|
| just made it official, many businesses
| |
| | If you've set bold objectives, you
|
| turned down in the third quarter of 2000,
| |
| | probably don't yet know how to reach
|
| and haven't picked up since.
| |
| | them. That's what makes them bold in the
|
| Aren't you bored with all the do-nothing?
| |
| | first place. For now, you're going to
|
| Don't you want to start building your
| |
| | have to make up some answers and live
|
| business again? Of course you do. What do
| |
| | with the uncertainty.
|
| you think everybody else thinks?
| |
| | And while there are no guarantees of
|
| (Side note: This forecast is right in
| |
| | success, each target should have an
|
| line with the "professionals" who say the
| |
| | identifiable path with a reasonable
|
| recession will end mid- to late 2002.
| |
| | probability of getting you there. That
|
| That will only happen if entrepreneurs
| |
| | path will define one or more initiatives
|
| and consumers start spending early in the
| |
| | and milestones you can put on a timeline.
|
| year.)
| |
| | What structural and procedural changes
|
| So what are you going to do about it?
| |
| | will you make relative to this factor?
|
| What are you personally going to do to
| |
| | Some examples are adding two salespeople,
|
| end the recession?
| |
| | or a new assistant. Perhaps you will
|
| What are you going to do to start making
| |
| | establish new reporting lines, eliminate
|
| money again? (I agree with President
| |
| | paper memos, acquire a competitor, or
|
| Bush. You don't have to put that flag
| |
| | having a monthly new business quota. Each
|
| away, but the most patriotic thing you
| |
| | structural and procedural change will
|
| can do right now is start spending money.
| |
| | spawn its own initiatives, which you will
|
| If enough people take that leap of faith,
| |
| | also time-line.
|
| the global economy will take off like a
| |
| | Does this initiative require new people?
|
| rocket.)
| |
| | Do you need new job descriptions, or add
|
| Are you going to be ready?
| |
| | managers? If you have to add people feed
|
| Now is a good time to prepare yourself
| |
| | all the financial considerations back
|
| for the next time when people decide to
| |
| | into your budget.
|
| start "doing business" again.
| |
| | Taken together, all the factors, goals,
|
| Last month I outlined a way to polish and
| |
| | accountable parties, initiatives,
|
| even rethink your business strategy. Here
| |
| | structural changes, timelines, measures
|
| I will quickly review the critical
| |
| | and milestones add up to a strategic plan
|
| factors which will insure your success.
| |
| | for the year.
|
| A plan designed as a platform for growth
| |
| | Can you live without addressing every one
|
| and profits must consider each of the
| |
| | of these factors?
|
| following critical success factors:
| |
| | Of course you can, but can you prosper?
|
| Money factors: positive cash flow,
| |
| | Yes -- you can do that too. But it will
|
| revenue growth, and profit margins.
| |
| | be harder.
|
| Acquiring new customers and/or
| |
| | Let's face it: some companies sell the
|
| distributors -- your future.
| |
| | same product year after year without
|
| Customer satisfaction -- how happy are
| |
| | making any changes. Look at WD-40. They
|
| they?
| |
| | completely own the do-it-yourself
|
| Quality -- how good is your product and
| |
| | lubricant niche --all they have to do is
|
| service?
| |
| | take orders and keep the shelves stocked.
|
| Product / service development -- what's
| |
| | But their growth rate was negative 4.6%
|
| new that will increase business with
| |
| | this past year. Obviously they are
|
| existing customers and attract new ones?
| |
| | neglecting one or more critical factors.
|
| Intellectual capital -- increasing what
| |
| | So yes -- you need to consider every
|
| you know that's profitable.
| |
| | critical success factor -- even if you
|
| Productivity -- how efficient are you?
| |
| | don't do anything about it you have to
|
| How effective?
| |
| | think about it.
|
| Strategic relationships -- new sources of
| |
| | Increase sales but neglect service - what
|
| business, products and outside revenue.
| |
| | will happen to customer satisfaction? It
|
| Employee attraction and retention -- your
| |
| | will probably go down, which will affect
|
| ability to do extend your reach.
| |
| | repeat sales, your reputation in the
|
| Sustainability -- your personal ability
| |
| | market place, and ultimately new sales.
|
| to keep it all going.
| |
| | Improve product quality but neglect
|
| (To find out more about these critical
| |
| | employee retention? What will happen to
|
| factors, get a copy of my book, Faster
| |
| | quality next year? Likely it will go
|
| Than the Speed of Change - bookblurb.html
| |
| | down. And then what will happen to sales?
|
| - it makes a great holiday gift for
| |
| | As you can see, each factor's improvement
|
| entrepreneurs as well.)
| |
| | synergistically contributes to your
|
| For each factor ask these three broad
| |
| | company's survivability and prosperity.
|
| questions.
| |
| | Can you do everything at once?
|
| 1. What can you learn from last year's
| |
| | Most businesses don't have the resources
|
| experience in this factor?
| |
| | for that, so something has to give --
|
| What did you do right? What worked?
| |
| | right...
|
| Always start with this question. Why?
| |
| | Or you can create another breakthrough.
|
| Because it's positive. That's why! It's
| |
| | This time, create a breakthrough in
|
| shocking how people naturally drift
| |
| | planning -- one which commits you to some
|
| toward the negative. Even when I ask --
| |
| | level of advancement for every one of the
|
| verbatim -- what did you do right, more
| |
| | critical factors.
|
| than half the time people respond with
| |
| | This planning task is not as big as you
|
| something they did wrong.
| |
| | might think from reading the above.
|
| How can you do more of those "right"
| |
| | Regardless, you may still think you can't
|
| things? How can you make them even
| |
| | afford the time...
|
| better? How can you apply what you
| |
| | Look - any amateur can grow a business
|
| learned in this area to some other?
| |
| | when the economy is going gangbusters,
|
| Only when you've exhausted this line of
| |
| | but it takes a purpose, inspiration, and
|
| questioning ask, what did you do wrong?
| |
| | attention to detail to increase profits
|
| Not to beat yourself -- to make sure you
| |
| | while the rest of the world is in a
|
| don't repeat it and discover ways to
| |
| | recession. Having a strategic plan -- one
|
| repair or improve the process.
| |
| | which considers all the critical success
|
| Next, ask what is missing. What could you
| |
| | factors - is a sure way to improve the
|
| add which will improve your
| |
| | odds in your favor.
|
| effectiveness.
| |
| | (c) Copyright Paul Lemberg.
|
| (Effectiveness can be stated as the ratio
| |
| |
|
