Do you have a plan for Growth?

Do you have a plan for GROWTH?

Do you have a clear vision of where you are going to take your business? Are you sure that everything you do today to increase turnover, acquire more clients and reduce the amount of time you work in your business is actually working? Successful businesses develop strategic plans to move their business forward, to grow and succeed.

The first role af any owner or director is to have a plan, from star-up onwards (not for the banks) but for you to own and deliver. That plan needs to be kept alive, fresh and driven to focus on success and succeeding.

GROWTH needs a strategy!

A strategy is a researched approach supported by a detailed plan of continual action steps. The reason strategies are so vital is they keep things moving, and in business, if you are not going forward, you’re going backwards, and that can happen very fast. So, if you want your business to be successful and/or pay you more, having a strategy that focuses on growth is a must!

If you have no formal strategy to take your business to the next level you need to refocus your priorities right now to create growth, here's the first stage of a growth strategy framework:

Step 1 Create a clear vision of what you want to achieve:

There’s an old saying that you can’t hit a target you can’t see. Well your vision is your target. Your vision needs to be very clear in terms of what you want from your business, by turnover, profit, customer type or all three? What’s your ideal position in that market, do you want to be known as the premier supplier of your product or service, or a low cost or niche player?

What about your personal goals to support your lifestyle?  You need to be very clear about what you want and what you don’t want. Have a clear focus that will keep you aligned with your long term goal for you and your business. 

Cowden Consulting provides Strategic Planning Workshops which enable owners to create their vision of what they want to achieve. Our SPW faciliated workshops provide the opportunity for owners to work on their business not in their business. To learn more about Strategic Planning Workshops (SPW's) or contact us by clicking Cowden Consulting to discuss your needs, or go to our website www.cowdenconsulting.com to learn more about us.

Strategy: How Steve Jobs changed the world

Apple’s founder and talisman, Steve Jobs has finally had to step down from running the world’s most successful company, it is probably overdue that the world recognises this brilliant strategist who changed the world.

Had Steve Jobs just set-up Apple he would have gone down in history as a great inventor, but to have done it twice over with the same company, creating the world’s biggest company in the process surely makes him the greatest ever. Possibly his most important contribution was that he created markets and then the best products possible for those new markets. Steve Jobs understood that the technology needed to work for customers, rather than expect people to work the technology.   

As a brilliant businessman and strategist, he more importantly created world class products and ran the company that delivered those products to market. Most superb inventors just invent and most great directors’ focus on leading, to do both simultaneously to such a high standard is an outstanding achievement.       

Steve Jobs is so unusual because he understands that great technology does not sell itself and that to have great technology you have to be passionate not only about what you produce, but also about the world in which your products exist.

Steve Jobs potted history 1976 started Apple with Stephen Wozniak to make and sell printed circuit boards 1978 launched  a new disc drive which made the money to invest in whole computers Launched the revolutionary Macintosh computer in 1984 Ousted from Apple in 1985 and returned after creating NeXT in 1996 which Apple bought Created Pixar with $5 billion in box-office sales, sold for $7.4 to Disney in 1996  Created the i-generation with more to come such as iCloud and entering the TV market

While to many who did not understand his holistic strategy they looked for and saw flaws, tried to stab the ego and even removed him from his own company (to play safe with what he had produced as a single new product).  He played the long game recognising that the world would not be changed overnight, this was his strategic master-stoke, he got the timing right by understanding the big picture and knowing when to strike.

He has been described by those who have worked with him as wilful, irascible, temperamental and stubborn, to name a few, but can anyone do so much without at least those characteristics to change the world? Other words, which people often use to describe him, include perfectionist, insistent and mesmerising and that is how the world will remember how he has achieved such global success.   In his Stanford address in 2005 he explained what made him, drove him and continued to motivate him to become the person and the huge success for which the world will remember him for.    

Steve Jobs changed the world. He saw a world revolution in technology before anyone else and saw how he could drive that change. Great strategic thinking not only thinks about change but also the impact of that change will have, and that’s what makes him simply the best. Other owners and directors were working on improving their share price or becoming number one with their new product, focusing on the today, this month’s or this years priorities, Steve Jobs drove Apple to rethink the world and in doing so became its biggest player. His line in recruiting John Sculley from Pepsi “Do you want to sell sugar water for the rest of your life or do you want to come with me and change the world” sums up his strategic brilliance.   

Evidence of this brilliant approach comes throughout his career, from Vangelis’ Chariots of Fire music to launch the Macintosh, through to his unforgettable iPod launch where with a huge back screen shot he casually produced it from the back pocket of his jeans; Steve Jobs has learnt how to successfully engage with audiences. Every product is meticulously planned with product lined up to two years in advance, with innovative marketing from start to finish.

From a business selling technology, it is now seen as having the best retail environment that people actually want to visit Apple shops where the focus is on excellence, not on pedalling technology cheaper than the next retailer. Steve Jobs has always had an eye for detail, which his artistic flare turned geeky boxes into works of art; a calligraphy course he went on led him to have a non standard font Apple Garamond created rather than traditional New Roman Times font, something he goaded Microsoft about at a high school speech some years later. That attention to detail is what demonstrated his perfectionist approach and left the competitors looking and feeling like they were in the dark ages.          

Apple’s “Think different” strategy has worked so well since 1997 because it touched people who felt there was no alternative to the Bill Gates and Microsoft monopoly of software. Think Different also drove change for both the 50,000 Apple employees and allowing his strategy to infect and spread globally.  It was not only technical people who bought into Macs but a whole new generation of users who found that there was a credible alternative that did more than just be a glorified typewriter.

              

While Apple was never one man, Steve Jobs legacy will be difficult to estimate for many years to come as the world’s most successful businessman. The old adage it is not what one has done that counts but what one leaves to grow that is the measure of a man’s success and that will take time for the world to see his true legacy, but the following puts some numbers behind this success.  

Since Steve Jobs comeback in 1997 Apple has sold:-

• 26 million iPhones
• 60 million computers
• 200 million iPods
• 1 billion iTunes songs   

Apple is currently valued at $356 billion ($2 Billion ahead of Exxon) making it the largest company in the world. Last quarter alone Apple profits more than doubled to $7.3 billion, sales rose by 82% to $28.6 billion by selling 20 million iPhones, 9 million iPads, 8 million iPods and 4 million Mac computers .

Steve Jobs announcement of his retirement wiped $17 billion *(5%) from its market share, but he has increased its share value by 9000% since 1997.   

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A good business starts with the end in mind: have clear objectives.

Vision
Having a vision is vital to be successful in the long term, but having objectives will ensure you get you there. Clear milestones for everyone inside your company, top to bottom are the essential component of a successful company. Every successful company has clear goals, strategic ones the outrageous ones (global domination) through to achievable tactical objectives.

Without clear (SMART, see below) objectives company’s loose focus on its goal. Without objectives companies can fall victim to strategic drift, this month’s whim and next month’s quick idea.  Without cascaded objectives at every level, good people’s morale falls as they cannot see where how they are contributing to the company’s success. Without objectives everything else in planning and execution is a waste of paper, time and effort.  

Objectives
Objectives should be like a pyramid, with the big objectives at the top, but at every layer underneath there should be the sub objectives that make the bigger one happen. A well run organisation should therefore look like a pyramid, in terms of objectives, with everyone working on their goals which build up together to achieve the big picture goals. This form of management managing by objectives MBO, (not to be confused with a management buy-out MBO), allows people to focus on their objectives, which are aligned to higher goals.

Try not to have too many objectives to achieve. I always recommend no more than 5 per person. The reason why 5? Because it keeps people focused and not drowned in statistics. Even at the company level remember the old KISS concept of simplicity, if you have page after page of objectives some will suffer unless you can resource them. Focus on what really matters to the business, what drives performance and how are they made up. For people think about their Key Performance Indicators, KPI’s they are doing a good job if… Classical KPI’s usually include: revenue, margin, customer numbers, retention, growth, production, saving, are amongst the most common.      

Objective Setting
High performance companies often drive all their goals by setting team objectives which are then broken down into Key Performance Indicators (KPIs) for each individual employee. Try not to give any individual or manager too many. An easy way to achieve that is to ensure they can remember and recall them with ease when you meet them.        

    The benefits of setting objectives:

1.       Objectives define the entire purpose of your business (or unit) in a couple of sentences or bullet points or set of numbers.

2.       Objectives are often identified as key performance indicators at the individual persons performance.

3.       The objectives that you set determine the quality of the strategy or tactics that you will adopt.

4.       Goals allow you to Manage By Objectives MBO which avoids time in argument and also helps in introducing a more participative management culture where employees are encouraged to set their own objectives.

5.       Clear KPI’s per person is a successful way to evaluate performance as long as the KPI’s are numerate or translatable into a numerate language.

Remember SMART criteria to define attributes of good objectives:

That is:

·         Specific

·         Measurable

·         Achievable

·         Realistic

·         Timely

 SMART criteria include:

1.       Both short range and long range targets should be set.

2.       Both quantitative and qualitative

3.       Clear. Put them in writing, to be achieved within a specified time frame.

4.       Measurable. So that they can be compared with actual results.

5.       Challenging. This is so that staff will put greater effort and be more motivated.

6.       Achievable. Avoid overly optimistic goals as this might be counter productive due to their demotivating nature. Goals should be realistic, reasonable, reachable and beatable. Avoid hidden goals and don't be over specific.

Hope that gets you thinking?

regards
 

Richard Gourlay 

Do you have a vision or are you just a dreamer?

No matter how big or small your business is without a clear vision of where you are going owners and directors often fall into the classic trap of just managing from day-to-day.

Envisioning, the ability to see into the future and imagine how things could be, is as important for success as having real passion for the business and the determination to create something new. These three personal qualities of leaders are vital for successful companies and a vision statement, sometimes called “a picture of your company in the future”, but it’s so much more than that.

Your vision statement is your inspiration, the framework for all your strategic planning. A vision statement may apply to an entire company or to a single division within that company.

The vision statement answers the question, “Where do we want to go?” What you are doing when creating a vision statement is articulating your dreams and hopes for your business. It reminds you of what you are trying to build. A vision statement is for you and the other members of your company, not just for your customers or clients.

Visionary goals should be longer term and more challenging than strategic goals. Collins and Porras describe these lofty objectives as "Big, Hairy, Audacious Goals." These goals should be challenging enough so that people nearly gasp when they learn of them and realize the effort that will be required to reach them.

Most visionary goals fall into one of the following five categories:

1. Targeted - quantitative or qualitative goals such as Nike: "To bring inspiration and innovation to every athlete in the world" “If you have a body, you are an athlete.”
2. Common enemy - focused on overtaking a specific firm, becoming the number one in that sector, such as Amazon: "Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online."
3. Role model - to become like another in a different industry or market, the mirror role, Victoria Beckham (Posh Spice) "Right from the beginning, I said I wanted to be more famous than Persil Automatic”.
4. Internal transformation – creating internal vision, GE set the goal of “Becoming number one or number two in every market it serves”

While visionary goals may require significant stretching to achieve, many visionary companies have succeeded in reaching them. Once such a goal is achieved, it needs to be replaced; otherwise, it is unlikely that the organization will continue to be successful. The second most dangerous place for a company is to have achieved its only goal, the most dangerous place is never to have had one. 

Simple steps to creating your vision, ask some simple questions:

• What will our business look like in 3 to 5 years from now?
• What new things do we intend to pursue and how?
• What future customer needs do we want to satisfy?

Write the answers down and focus on developing them into a coherent, motivational and purposeful message which can connect with everyone. 

Then Question:

• Does our vision statement provide a powerful picture of what our business will look like in 3 to 5 years from now?
• Is your vision statement a picture of your company’s future, which everyone can interpret into their role?
• Does it clarify the business activities to pursue, the desired market position and capabilities you will need 

If your statement answers these questions then you have a vision worth owning and sharing. A vision must be motivational to everyone inside an organisation. 

The classic apocryphal story to demonstrate the effectiveness of great visions is about the time President Kennedy visited NASA. During one trip he came across a cleaner sweeping the warehouse floor, and asked him what his job at NASA was. The cleaner replied “My Job is to put a man on the moon, Sir.” 

Now I don’t know if the story is true, but it’s inspiring. In a facility full of high-powered individuals and great minds, even the cleaner was completely on board with the strategy. While you may not be planning to put a person on the moon, we can learn a lot from the story. It may sound ridiculous, but every business needs to be a little like NASA.

Great visions can create an unstoppable company

Every organisation needs to have a clear goal, owned by everyone inside and outside it. An owned and shared vision creates and sustains great morale and internal strength for companies, which can become a powerful and unstoppable force in any market no matter how competitive.  

At Cowden Consulting we focus on ensuring companies can successfully compete in their chosen or desired market.