The focus on things that make the biggest difference to your future prosperity.
![]()
(Note that although this article was written in early 2002, it is entirely appropriate. For now.)
Wd World Book
About three weeks ago, I was surprised by this newspaper headline:
"Fed says economy September 11 hurt."
Wow!
"What have I missed here?" It was this news? USA Today thought it would be. I was shocked that the Fed has decided to announce it.
And this week another, confirmed "NBERRecession. "
Hey, Greenspan! Stand up and talk to people. Across the country people tell me that if you break even this year, will consider it a victory. If this is not a "recession" ...
But have you ever wondered what it takes to end a recession? It is not the answer by the book: two consecutive quarters of growth. Have you ever wondered what causes these successive quarters of growth in the first place?
The economy is, sorry if enough people, the economy will continue todown.
Companies need things. You need new people or new services, such as marketing and sales. Some need new buildings or new equipment. You can say something like, "We really need this or that, but we're not spending a dime until the economy improves."
So we suffer from a cascade effect, where you expect someone else to make the first step - and the economy spiraling downward - even worse - until ...
Until people start to say: "I'm tiredthis "or" I can not wait "or" start "and begin as if by magic, people, money, poof -. the recession is over.
I am a growth strategist - I help people understand the best way to build their businesses and earn more. Let me know when the recession will end, but I am not an economist, and this is a question too difficult. Instead, ask how long people can sit on their Duff, before finally so tired, must actagain.
I expect that early next year, people are going to reach that point. Although the Fed has just made it official, many companies turned in the third quarter of 2000 and are not picked up since then.
Are not you bored with all the do-nothing? Do not you want to build your company again? Of course you do. What do you think anyone else thinks?
(Side note: This prediction is in line with the "professionals" that the recession of the mid to late 2002, saying that in the end.happen only if businesses and consumers start spending earlier this year.)
So what are you doing? What will you do personally to stop the recession?
What will you do to earn money again? (I agree with President Bush. There is no need to put away the flag, but the most patriotic thing you can do now is start spending money. If enough people make the leap of faith, it will pull the economy Global like a rocket.)
Is going to be youready?
Now is the time to prepare for the next time, when people start "doing business" to decide again.
Last month, I described a way to polish and even to rethink your business strategy. Here I will quickly review the critical factors to ensure your success.
A plan designed as a platform for growth and profits of each of the following critical success factors:
Money factors: positive cash flow, sales growth and profitMargins.
The acquisition of customers and / or distributors - your future.
Customer satisfaction - how happy they are?
Quality - How good is your product or service?
Product / service development - what is new, the company to increase with existing customers and attract new ones?
Intellectual capital - increasing what you know, it is profitable.
Productivity - the effect you? How effective?
Strategic partnerships - new sources of business,Products and revenues outside.
Employees and conservation - the ability to do, expand the scope.
Sustainability - your personal ability to make it all go.
For each factor, these three major issues.
1 What can you learn from the experience of last year at this factor?
What you have right? What worked? Always start with this question. Why? Why is positive. That's why! And 'shocking how people naturally drift toward the negative. Although I wonder- Literally - what you have right to react to more than half the population of the time with something that was wrong.
How can more of this "right" things? How can they improve? As you can see what you have learned in this area, and some others?
Only when you ask this kind of tired of the question, what have you done wrong? Not refer to themselves - to ensure that they are not repeated, and discover ways to repair or improve the process.
To ask next, what is lacking. What couldAdd to improving your effectiveness.
. (Effectiveness may be expressed as the ratio between the input efficiency, on the other hand, how many actions they take to the INPUT unit of time, for example, you can increase the number of calls per hour -. It is a greater efficiency, you can use the sales volume increases for the same number of calls -. This is a more effective).
Random examples of things that are missing could include marketing consistency, the newProducts or services, to plan more sales staff, a source of new contacts, employees (or self-) development.
2 What are your goals in relation to this factor?
Can set new goals for change, not to mention you, your company. Your goals should be bold and dynamic - big enough to inspire you and everyone around you. Work best when goals are objective and quantifiable. And you must believe that they are achievable - no matter how difficult or impossible they may seem.
SomeExamples of ambitious goals: to dominate your niche market, sales double from last year, topped the list in prospect mind-share, solve customer problems in half the time now, 100 percent customer repurchases, has developed three new products and delivered by the middle of a career for every employee, every company has enough money for the emergency service.
3 How will you achieve these goals?
A successful plan to achieve your goals has several components:
Who will be responsible for anyObjective? It is not true? then the executive branch? Which managers? Which department?
Some factors map directly to a specific department, such as the revenue is the sales and marketing. However, factors such as intellectual capital or customer satisfaction - which are not clearly in one ward.
Even so, someone must "own" factor. Find out who. If no single person is responsible for - guess what '- will not happen.
Who takes responsibility for a particular purpose must meet theoutstanding issues.
What strategies and tactics have a good chance to reach the goal?
If you have objectives fat, you probably do not yet know how to reach them. This makes them bold in the first place. Because now you're going to do some answers and live with uncertainty.
And while there is no guarantee of success, each objective should be a recognizable way, with reasonable chances of getting there. This path will define one or moreInitiatives and targets, you can put on a timeline.
What structural and procedural changes that are relevant to this factor?
Some examples are adding two salespeople, or a new assistant. Perhaps it is established reporting lines, eliminating paper memos, acquire a competitor or a monthly rate of new businesses. Change any of the structure and organization provides to create their own initiatives, which can also be time-line.
This initiative needs new people? You neednew job descriptions, or add to the manager? If you add people to feed all financial considerations back in your budget.
Taken together, add all the factors, the parties responsible for goals, initiatives, structural changes, timelines, milestones and measures for a strategic plan for the year.
You can live with it without resorting to any of these factors?
Of course you can, but you can thrive?
Yes - you can do that too. But it is more difficult.
Let's face it: someThe companies sell the same product year after year, without making any changes. Look at WD-40. They are completely their own do-it-yourself niche lubricants - all you need to do is, orders, and keep the shelves full. But their growth was negative 4.6% last year. Obviously, they are neglecting one or more critical factors.
So yes - you need to look at each critical success factor - even if you do not need to do something, to think about.
Increase your sales negligence, butService - what will happen to customer satisfaction? It will probably come down again that affect sales, your market reputation and, ultimately, new sales.
Improving the quality of the product negligence, but the loyalty of employees? What will happen to quality next year? It will probably go down. And then what will happen to sales?
As you can see, each factor contributes synergistically to improve the survival and prosperity of your company.
You can do anything toonce?
Most companies do not have the resources to do so, something has to give - to the right ...
Or create another step forward.
This time, a step forward in creating the plan - what you commit to a certain degree of support for each of the critical factors.
This planning task is not as great as you might think reading the above. Regardless, you may think, however, do not specify the time ...
Look - any amateur can grow a business if the economy, Are booming, but it takes a purpose, inspiration and attention to detail in order to increase profits, while the rest of the world is in recession. With a strategic plan - one that considers all the critical success factors - is a sure way to improve the odds in your favor.
(For more information on these critical factors to obtain a copy of my book, faster than the speed of change - in our company's web site trainer -. It makes a nice present for entrepreneurs as well)
- PL
Critical Success Factors
