Posts Tagged ‘results’

ProfitPATH’s Top Ten Blogs – First Quarter 2015

Tuesday, April 7th, 2015

Lessons about successful business growth1.  3 Lessons About Successful Business Growth

Two books, published 19 years apart, yet saying similar things about a key aspect of successful business growth:
‘Built To Last’ was published in 1994. In it, Jim Collins analyzed 18 companies that he called visionary because they were the best in their industries – and had been that way for decades. Collins argued that the core values and enduring purpose of all 18 could be separated from their operating practices and business strategies. And that, while the former never changed, the latter changed constantly in response to a changing world.
In her book ‘The End Of Competitive Advantage’, published in 2013, Rita Gunther McGrath studied the performance of large, publicly-traded companies from 2000-2009. She found that only 10 of them grew their net income by at least 5% every year. All 10 had found ways to combine tremendous internal stability with tremendous external flexibility. McGrath argues that to win in volatile and uncertain times, companies must learn to exploit short-lived opportunities quickly and decisively. more

time for a change in the direction you are heading, focus on center of compass...2.  3 Times When You May Need To Change Your Strategy

Changes to a well thought-out, well-crafted strategy shouldn’t be driven simply because it’s been in place 1, 3 or 5 years. A strategy shouldn’t necessarily be changed even if it isn’t producing results. In this situation I always look at how well (or badly) the strategy is being executed before I look at the strategy itself. So when should a company review its strategy? And what makes that review and any subsequent adaptation, revision or re-creation necessary? Here are three occasions. more

10 Commandments of Business Development3.  10 Commandments of Business Development

I’m not enjoying the after-effects of the 2007/2008 financial crisis. And I’m certainly not a fan of the banks, investment and other, which I believe were a significant contributor to the mess. But, while my wife may disagree, I like to think I keep an open mind. So when I saw an article talking about how Goldman Sachs grew from mid-tier firm to global player in a few decades I had to peek. John Whitehead, a co-head of the firm in 1970, wrote the following 10 commandments that guided their business development efforts. I love them. They’re full of common sense and they’re very practical. Written in 1970, these 10 commandments add to my belief that the basic, common sense principles of business never change. Here are 4 things that business owners today can take from them: more

4.  Adaptive Strategy – A Way To Profits In The New Normal?

Adaptive Strategy is an alternative developed by The Boston Consulting Group (BCG)¹. Here’s how I think it applies to owner managed businesses. Adaptive strategy is built on the 3 R’s required in a changing environment². Can adaptive strategy be applied in owner managed businesses? more

5.  6 Ways A Business Owner Can Influence Culture

I wrote last week about the relationship between Strategy, Culture and Leadership. As a result we’ve had some questions about how a business owner can influence the culture in his/her company. Here, in no particular priority, are 6 ways that it can be done. more

6.  The Difference Between A Strategy And A Plan

I want to talk briefly about what I think is one of the worst mistakes – confusing strategy and planning. Roger Martin wrote a post for the HBR last month in which he dealt with this very topic. I frequently hear business owners talk about the need to do “strategic planning” in order to create a “strategic plan”. Some talk – every year – about holding a “strategic planning meeting”. more

7.  6 Challenges Fast Growing Companies Face

I’ve mentioned Inc. magazine www.inc.com several times before. It’s a great resource. There’s a well-researched article in the current issue about 6 challenges fast growing companies face. They’re all about execution – and if the owner doesn’t deal with them well any one of them can be fatal. more

8.  6 Tips For Growing Your Business in 2015 – How to Use Them

I was asked a good question last week. “Loved your last blog post, Jim – but how do companies like mine do those things?” So here are some ways any business owner can implement the 6 tips in his/her company. more

9.  6 Tips For Growing Your Business in 2015

January is the month for New Year’s resolutions, freezing cold and, for many, a new fiscal year. Everyone wants to ‘do better’ in 2015 than in 2014 and, for business owners, ‘doing better’ is shorthand for growing. I don’t know how often, in the last couple of weeks, I’ve been asked something like “What are your top 6 tips for growing successfully”. The answer depends on a number of things. Here’s the rub. All 6 are much easier to talk about than do. But if you start on them now you can make some progress this year. more

10. 3 Reasons Why Strategy Isn’t Dead In The Water

I hate sweeping generalizations. Strategy is dead is one that I particularly dislike. To say that, it seems to me, is to say that it’s a complete waste of time for every company, regardless of size or industry, to have a strategy.
An article appeared in the Globe and Mail late last year, headline “Why Strategy is Dead In The Water.” It was based on an earlier article in Forbes magazine, headline “Is Strategy Dead? 7 Reasons The Answer May Be Yes.” We’d gone from strategy might be dead to signing its death certificate – in the space of two headlines. more

 

Jim Stewart is the founding Partner at ProfitPATH. He has been working with business owners for over 16 years to increase profits and improve the value of their companies. LinkedIn

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Get Results From Your Strategy Offsites

Tuesday, March 24th, 2015

Holding a strategy offsite is like going to the dentist.Get results from strategy offsites with these tips

Doing it regularly should prevent unexpected pain and discomfort.

But going to the dentist is something that can be avoided. Why do it when everything’s going well, when it’s not necessary?

After all, a visit to the dentist can result in discomfort or even end badly.

It’s the same thing with a planning meeting.

It’s uncomfortable when, for example, people don’t want to get behind the business owner’s ‘stretch’ goals. And most people can look back on an offsite they attended and wonder why they bothered – because nothing changed.

So here are some things we’ve learned to ensure strategy offsites deliver results.

1.    Before the meeting

Set a realistic goal.

I ask clients to imagine we’re packing up after the last day of the offsite, and they’re feeling really good about what has been achieved.

Then I ask them what has to have happened for them to be feeling that way.

Sometimes, after they reply, we have to use our experience to illustrate what can, and can’t, be achieved in 1 or 2 days.

Distribute pre-work before the strategy offsite to maximize productivity in the time spent face-to-face. Any thinking that can be done in advance should be and any information required to make decisions should be distributed and studied.

2.    During the offsite

Keep people focused by:

• Announcing times for coffee and lunch breaks and insisting email and calls are dealt with then.

• Using a  ‘parking lot’ to record topics that are important, but not immediately relevant. Clear it at the end of each day.

Relieve the intensity of the discussions by using brainteasers and humorous video clips. Vary the pace, and make sure everyone’s thoughts are heard, by using sub-groups for some sessions.

Our process ends with the development of specific, measurable, time-related action plans to solve the problem that was the focus of the offsite.  Appoint Champions to coordinate the completion of the Plans.

This way everyone leaves with a sense of accomplishment and a clear plan of action.

3.    After the meeting

Capitalize on the momentum by holding regular, structured follow-up meetings.

Get everyone together at least once a quarter. Each Champion gives a progress report on his or her Action Plan and adjustments are made if necessary.

Take these tips and you’ll get results from your strategy offsites.

 

If you enjoyed this post you’ll also enjoy What’s The Best Strategy – Grow The Core Or Expand?

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Jim Stewart is the founding Partner at ProfitPATH. He has been working with business owners for over 16 years to increase profits and improve the value of their companies. LinkedIn

4 More Reasons Why Strategy Isn’t Dead In The Water

Tuesday, February 10th, 2015

Saying strategy is dead is a sweeping generalization.4 more reasons why strategy isn't dead

I don’t buy the argument that strategy is a complete waste of time for every company, regardless of size or industry.

There’s no question that the world has changed dramatically and we have to change how we approach strategy.

But to say that we should stop doing strategy completely is throwing out the baby with the bathwater.

Two articles which appeared recently, one in the Globe and Mail and an earlier article in Forbes magazine, laid out 7 reasons why strategy is, or may be, dead.

Last week I commented on the first 3 reasons, here are my thoughts on the other 4.

4.  Competitive lines have dissolved. Strategy, it is argued, has long been based on well-defined market sectors, containing established competitors. Now a competitor is likely to come from an entirely different sector.

But is this a new phenomenon? Didn’t IBM, under Lou Gerstner, become an IT solutions provider?

5.  Information has gone from scarcity to abundancy. It is argued that the value of strategic planners and consultants lay in the proprietary, or scarce, information they possessed. Today, information is easily accessed via the web.

Commenting on this point one of the authors of the 2 articles said “It’s …….how you translate that information into actionable activities that is critical”. Isn’t that what strategy execution was – and still is – all about?

6.  It is very difficult to forecast (option values). Before opening a new factory, expected costs were compared to forecast revenues to see if it was a good investment. But, it’s argued, the outcomes of investments in, for example, the Internet of Things are wild guesses at best. Is this new? We’ve had to make educated (not wild) guesses about the unknown for years, e.g. the development of the Boeing 747, the world’s first jumbo jet.

7.  Large scale execution is trumped by rapid transactional learning. In the past, organizations could roll out improvement programs in a deliberate, staged fashion over a number of years. These days, it’s a whirlwind, and you must be learning all the time.

Recently I wrote about Rita McGrath’s book ‘The End Of Competitive Advantage’, which profiles 10 large, publicly-traded corporations that have found ways to combine internal stability with tremendous external flexibility and achieved remarkable results.

Have they abandoned strategy? No.

If whales can do it, so can minnows.

 

If you enjoyed this post you’ll also enjoy The Difference Between A Strategy And A Plan

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Jim Stewart is the founding Partner at ProfitPATH. He has been working with business owners for over 16 years to increase profits and improve the value of their companies. LinkedIn

6 Tips For Growing Your Business in 2015

Tuesday, January 13th, 2015

January is the month for New Year’s resolutions, freezing cold and, for many, a new fiscal year.Tips to successfully grow your business in 2015

Everyone wants to ‘do better’ in 2015 than in 2014 and, for business owners, ‘doing better’ is shorthand for growing.

I don’t know how often, in the last couple of weeks, I’ve been asked something like “What are your top 6 tips for growing successfully”.

The answer depends on a number of things.

That said here are some of the things that the companies I’ve seen grow successfully have in common.

Those companies are:

1.  Very willing to try new things (innovate, adapt). However they don’t bet the farm. They do limited scale tests of new products and ways of doing things first. Ones that work are rolled out quickly; ones that don’t are killed – just as quickly.

2.  Always trying to be better – than themselves. They are continually looking for ways to, for example, improve their own quality, do things more quickly and become more efficient. They don’t compare themselves to others, they just want to the best they can be.

3.  Following a strategy or plan. They know where they want to be in 3 – 5 years but don’t expect to get there by following a straight line. They try to keep growing steadily in good times and in bad.

4.  Skilled at turning their plan into results. Knowing what success will look like makes it easier for them to set priorities and allocate the resources and funds to achieve them. They link every individual and every department’s work to the company’s goals and hold themselves accountable.

5.  Able to spot trends earlier than most of their competitors. They stay close to their customers and suppliers, monitor their competitors and watch for developments in technology.

6.  Working from a solid foundation. All of their core business processes – sales, marketing, operations, finance and HR – are tried, tested and automated wherever possible. They find, hire and retain smart people who are a good “fit” with their culture and values. They are fiscally cautious, never over extend themselves and can fund their growth.

Here’s the rub. All 6 are much easier to talk about than do.

But if you start on them now you can make some progress this year. And if you need some help just give us a call…….

 

If you enjoyed this post you’ll also enjoy 3 Leadership Tips From A Great Scotsman

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Jim Stewart is the founding Partner at ProfitPATH. He has been working with business owners for over 16 years to increase profits and improve the value of their companies. LinkedIn

From Strategy to Results – Plus Some Succession Planning

Tuesday, January 6th, 2015

In an ’80s TV series called “The A Team”, one of the main characters used to say “I love it when a plan comes together”.Good strategy executed successfully

Here’s a wonderful example of a real life plan coming together.

In 2009 a recruiting company called LEAPJob hired us to help them with their business strategy.

It was a family business founded by Donna and Marcus Miller. One of their sons, Jeremy, worked in the firm with them. Stephen, their other son, had a very successful career with a large software company.

There were 3 major issues to consider.

First, the Millers believed the recruiting industry was undergoing fundamental change. They were concerned about the future for smaller companies.

Second, LEAPJob had an extremely high level of brand recognition in its target market and a very successful on-line lead generation engine.

Finally, Donna and Marcus were thinking about retiring.

The outcome was a 2-step strategy.

The recruiting business would be sold in approximately 3 years and Donna and Marcus would retire.

While they were positioning LEAPJob for sale, Donna and Marcus would help Jeremy launch a new business. This would leverage his skills in marketing and branding – competencies Jeremy had honed by leading the rebranding effort and building the lead generation engine.

Fast forward to January 2015.

Jeremy’s first book, published by an established Canadian label, is about to be launched. It will be available in stores and on-line via Amazon, Barnes and Noble and iBooks, amongst others, in a few days’ time.

The title of the book “Sticky Branding” is also the name of his company.

Jeremy’s commented a number of times over the years that our process played a significant role in his journey.

But the idea to pinpoint and profile small and mid-sized companies with sticky brands; the analytical skills to see the factors common to them; and the creativity to combine those factors and his own experience were all Jeremy’s.

The result – lessons which can be applied by the owners of small and mid-sized companies who want their companies to “stand out, attract customers & grow an incredible brand”

He’s had to deal with some hard knocks and tough times but now Jeremy is on the brink of success. I admire his focus and willpower.

Donna and Marcus are happily retired.

I love it when a good strategy is executed successfully.

 

If you enjoyed this post you’ll also enjoy Strategies That Get Results Are Developed By Thinkers And Doers

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Jim Stewart is the founding Partner at ProfitPATH. He has been working with business owners for over 16 years to increase profits and improve the value of their companies. LinkedIn

Top Ten In 2014……

Monday, December 29th, 2014

The results are in!

Our top 10 blog posts in 2014 were:

1.   Adaptive Strategy – A Way To Profits In The New Normal? looks at an alternative strategy that is built on the 3 R’s (Responsiveness, Resilience, Readiness) required in a changing environment.

2.   6 Ways A Business Owner Can Influence Culture looks at the ways a business owner can develop a culture which will help increase operating profits and build shareholder value.

3.   6 Challenges Fast Growing Companies Face discusses the 6 challenges of execution which, if not dealt with, could prove fatal.

4.   3 Times When You May Need To Change Your Strategy explains when a company should review its strategy and what makes that review and any subsequent actions necessary.

5.   The Difference Between A Strategy And A Plan talks about the difference between strategy and planning and why it’s important to understand what these terms mean.

6.   6 Things We Can All Learn From Family-Owned Business puts forward 6 simple things business owners can implement to achieve better long-term financial performances.

7.  Use These 3 Tips To Make Your Next Critical Decision offers 3 things Ram Charan, co-author of “Execution”, says business leaders do when faced with a critical decision.

8.  5 Traits Effective Business Owners Share outlines some of the traits effective entrepreneurs have in common that contribute to the growth of their businesses.

9.  3 Reasons Why Consulting Assignments Fail and 3 Reasons Why Consulting Assignments Fail – Part 2 addresses the most common reasons why things can go wrong between consultants and their clients.

10. Strategic Planning – 3 Things That Are Wrong With It outlines how business owners make 3 mistakes that could destroy their company when they confuse strategy and strategic planning.

If you missed any of them, here’s another opportunity!

Be Known For The Things You Do – And For Those You Don’t

Tuesday, December 2nd, 2014

In last week’s post I spoke about one of the reasons I started ProfitPATH 12 years ago.let your business be known for the things you do - and for those you don't

I wanted to create a company that did things differently to the way in which management consultants traditionally behaved.

To act as a guide, I made a list of all the things consultants I’d hired over the years had done that had annoyed me – and said we’ll do the opposite.

While I’ve often spoken about the list, I’ve never actually publicized it.

Now I’ve decided to change that. As a start, I thought we’d replace some of the outdated content on our current web site with the list.

I had to dig through some really old files but I found the original piece of paper on which I’d written the list.

Here it is.

We exist to help business owners achieve the results they want for their companies.  To do that we will:

1.   Tell clients when:

•  We don’t know how to do what they need. We will focus on what we do best.
•  They can do something by themselves. We will not bill clients for unnecessary work.
•  We don’t understand their requirements – even if it makes us look silly. We will not risk missing their expectations.
•  They ask us to provide “silver bullet” solutions. The Lone Ranger may have those – but we don’t.
•  We can’t provide what they need at the price or to meet the schedule they want. We will not “agree now, modify later”.

2.  Adapt and use tools and processes that we know deliver results. We will not use clients as guinea pigs.

3.  Design our services so that we can see the results of our work. We will not write reports and walk away.

4.  Find ways to link our compensation to the results of our work. This will be hard but we will not give up.

5.  Allow clients to terminate a project at any time – without a financial penalty.

6.  Always offer references. Where possible from clients of a similar size, in a similar industry.

7.  Submit proposals which contain absolutely no surprises – because they include only things we’ve already discussed with the client.

After seeing the list again I’m proud of how we’ve run the business.

However, I’m wondering what, if anything I missed.

What do you think?

 

If you enjoyed this post you’ll also enjoy The Elusive ‘Silver Bullet’

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Jim Stewart is the founding Partner at ProfitPATH. He has been working with business owners for over 16 years to increase profits and improve the value of their companies. LinkedIn

Lists That Last

Tuesday, November 25th, 2014

It’s funny how 2 unrelated events often come together to produce a completely unexpected outcome.Stay focused on the list of your company's set principles to maintain consistent success

In this case, the first event is that we recently decided to undertake a long overdue revamp of our web site. As a result, I’ve been thinking about the changes we need to make to our content.

The second is that I’m re-reading Jim Collins’ book “Built To Last” which employs his now familiar technique of contrasting Visionary companies with less successful Comparison companies.

One of the differences between them is that the Visionary companies all had a well-articulated core ideology.

Collins credits that core ideology with keeping the company focused on a set of principles that it practiced consistently through the decades. That focus was a major contributor to the Visionary companies consistent success.

That set me thinking.

When I started ProfitPATH 12 years ago, I had 2 reasons for doing so.

One was to share the tools and techniques I’d learned working for some remarkable companies, on 3 different continents. This didn’t mean I knew more than other people. I just knew different things.

The second was to do things differently to traditional consulting companies.

In fact, I made a list of all the things the consultants I’d hired over the years had done that had annoyed me and said – we’ll do the opposite.

I’ve often spoken about that list to colleagues and clients over the years, and I try very hard to live by it every day.

But, apart from the original scrap of paper I scribbled it on, I’ve never actually written it down or publicized it.

Now I’m going to change that.

That list is going to replace the outdated content that inhabits one of the pages on our current web site.

There are, of course, a couple of challenges.

Those of you who know me will agree that I have really bad handwriting. So, even if I could find the piece of paper on which I wrote the list, I probably wouldn’t be able to read it.

Fortunately, I remember most of the items quite well as I have verbally shared them often. The others will come back to me as I’m writing down the former.

I’ll share the list with you next week. And you can tell me what you think before I put them on the web site.

 

If you enjoyed this post you’ll also enjoy The Elusive ‘Silver Bullet’

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Jim Stewart is the founding Partner at ProfitPATH. He has been working with business owners for over 16 years to increase profits and improve the value of their companies. LinkedIn

Can Strategic Planning Pay Off?

Tuesday, November 18th, 2014

“The most fundamental weakness of most corporate plans today is that they do not lead to the major decisions that must be made currently to ensure the success of the enterprise in the future.”Key factors to make strategic planning pay off

It sounds like something I might have written in one of my blog posts because the point applies equally to owner-managed businesses.

But, regrettably, it wasn’t.

It’s from an article written by a 31-year-old, who then goes on to say:

“…..Nothing really new happens as a result of the plan, except that everyone gets a warm glow of security and satisfaction now that the uncertainty of the future has been contained……”

Does that sound familiar? The author goes on to say:

“……too many managements fail to…….recognize that the end product of strategic analysis should not be plans but current decisions.”

He then lists the reasons why decisions aren’t made:

• It’s risky – a bad decision could jeopardize the company.

• It’s difficult – “Strategic planning….deals with the most complex questions facing a company……synthesizing critical issues and strategic options to resolve those issues….is fundamentally a creative process. Many…..find it an elusive, uncomfortable task.”

• It requires leadership – making controversial decisions requires a willingness to be tough-minded.

• The value system works against it – owners often emphasize short-term results, which have little to do with long-term strategic success.

Next the author points out that “Many planning systems simply….produce forecasts of financial results, or statements of objectives”.

This is “….momentum” planning as opposed to dynamic planning that is attuned to the realities of external change……..

To deal with this, emphasis must be given to 3 things – evaluating the external environment; thorough evaluation of competitive strategies; and developing contingency plans.

Finally, the author provides 2 recommendations for motivating the people who can make or break a strategy. Involve those who will actually have to execute the strategy and adapt reward systems to recognize longer-term performance and the achievement of strategic goals.

So, which of today’s leading thinkers wrote the article? None of them did.

An up-and-coming member of the McKinsey team called Lou Gerstner (of IBM fame) wrote the article in 1973.

I like the article because it addresses all 4 of the Risks we believe growing companies face – having a Clear Growth Plan; linking it to Action; getting Buy In and holding people Accountable.

You can find the full article here.

 

If you enjoyed this post you’ll also enjoy Strategic Planning – 3 Things That Are Wrong With It

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Jim Stewart is the founding Partner at ProfitPATH. He has been working with business owners for over 16 years to increase profits and improve the value of their companies. LinkedIn

Strategy, Motherhood, The Dog and Its Tail

Tuesday, November 4th, 2014

Do you remember that old expression “The tail’s wagging the dog”?The tail's wagging the dog or, the process is more important than the result

It was used to describe situations in which, for example, a process for doing something takes on more importance than the result it produces.

Why did I think of that now?

Simply, for many companies, this is the time of year in which they begin their strategic or business planning.

This process is often viewed as unproductive, frustrating, even pointless or a waste of time. So it may not be welcomed with enthusiasm.

Why is that?

After 13 years of working with business owners and their teams, I have a few ideas:

1.  Strategy development is a difficult, creative, iterative activity. But in many organizations the ‘planning’ process has to be completed in a predetermined period of time, in the same month or quarter, every year. That’s the tail wagging the dog.

2.  We use terms like strategic planning, business planning, and even budgeting, interchangeably as if they all refer to the same thing. They don’t.

  • Strategy development involves making well thought out choices about the future.
  • Business planning is about the activities that have to be completed in the next 12 months to execute the strategy.
  • Budgeting is estimating the financial outcomes of the activities in the annual business plan.

3.  If we’re not clear about what we’re setting out to do, everyone will expect a different outcome and no one will end up getting the result they wanted.

4.  Worse, the results we do get may not be useful. By trying to do more than one thing at a time, we end up doing none of them well. The result is a breathtaking series of ‘motherhood’ statements that are neither a strategy nor focused action plans.

5.  We begin the process with a budget, the financial targets the owner wants to achieve, and make the ‘strategy’ fit those. That, to use another metaphor, is putting the cart before the horse.

6.  Even if the results are useful, we don’t follow up. We are so busy dealing with day-to-day challenges there is simply no time. In reality, we lack discipline – not time.

Is it surprising that many business owners, executives, managers and employees are cynical about ‘planning’?

 

If you enjoyed this post you’ll also enjoy Strategy and Planning – How Business Owners Think

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Jim Stewart is the founding Partner at ProfitPATH. He has been working with business owners for over 16 years to increase profits and improve the value of their companies. LinkedIn

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