Identifying your strengths and weaknesses

 
 

Archive for February, 2007

Articulating Your Mission and Vision

Monday, February 26th, 2007

Earlier I shared that successful strategic planning is a continuous process – something that you need to make a habit. Now, I’d like to also propose that the process isn’t linear but circular.

To that end, let me begin at the requisite starting point – your mission statement. A mission statement, we all know, is a statement of your company’s purpose or its fundamental reason for existing, but it should also serve as both a guide for day-to-day operations and the foundation for future decision-making. In other words, it should determine your primary business and organization purpose AND be the roadmap in a strategic plan to empower your employees to be more effective. It should be specific, short, sharply focused, and memorable. The mission statement of Olsen & Associates Public Relations is “Dedicated to improving and optimizing public perceptions on behalf of our clients.” If the company doesn’t live up to this mission, it has no reason to exist.

I encourage you to think beyond bullet points on a memo or a posting on the break room wall. Instead, think of your mission statement as the primary guideline for leading your organization to higher levels of performance. It should provide the framework for independent decisions and actions initiated by departments, managers, and employees into a coordinated, company-wide game plan.

Your vision, likewise, should provide long-term direction while it delineates what kind of enterprise your company is trying to become and infuses the organization with a sense of purposeful action. Identify your corporate values. Create an image of what success will look like. Your vision statement needs to
be something you can achieve at some point in the future while also serving as a unifying focal point for everyone in the organization – like a North Star. I recommend developing one that’s far reaching but attainable. A vision statement can be as far reaching as 100 years or as short as five. It just needs to work for your company and the industry in which you operate.

Here are two examples of visions that were very lofty at the time they were established, but they don’t sound so crazy now:

  • “We will put a man on the moon before the end of the decade and bring him back” (President John F Kennedy)
  • “A computer on every desk and in every home using great software as an empowering
    tool” (Microsoft)

Together the mission and vision statements function to clarity why your organization exists and what the end game is. In this way, your mission and vision should drive every action and initiative on the road to where you are going and provide a constant reference point to keep your strategic plan on track.

Join me again as we continue with the Strategic Planning Process Checklist to keep you and your team on track while also making the strategic planning process a habit. Next time I’ll be discussing your Strategic Position. And remember, success is not a matter of chance, but rather success is a matter of choice.

Your Success Takes Planning

Friday, February 23rd, 2007

Did you know that having a strategic plan is the best way to bring focus and direction to your organization AND drive growth at the same time?

According to a recent study by M3 Planning, a nationwide leader in on-demand strategic planning services, businesses that use strategic planning are 12 percent more profitable. The results from the 2006 M3 Planning Strategy Benchmark of 280 firms in the United States found that by just adding strategic planning to a business’ activities, organizations can experience an increase in net profit. Those firms whose top management had a high commitment to execute strategic planning reported an 80 percent increase in sales volume during that year, and firms whose top management had a lower commitment reported a 59 percent increase. (For more information or to view full results see the report.)

I think it’s important to stress here that successful strategic planning is a continuous process. It isn’t just a one-time event; you need to make it a habit. I know how easy it is to get lost in the process, especially when you’re also in the middle of your organizations’ everyday operations, and in the coming weeks I’d like to share some suggestions that should help you embed successful strategic planning concepts into your organization. Consider them an easy-to-follow Strategic Planning Process Checklist to help keep your team on track.

First, I urge you to “Get Ready and Get Organized”. This may sound elementary, but you’d be surprised by the number of businesses that sabotage their strategic planning efforts by poor preparation. Take your time here; this is about your past, present and future. I encourage you to identify the specific issues and choices your strategic plan should address. I’ll elaborate on this topic later, but for now you should start thinking about where it is exactly you want your organization to go. (i.e. Start thinking “big picture” and “end game”) Determine your organizational readiness. (i.e. Do you have complete commitment and support from top leadership and key management? Is yours a culture that is open to looking beyond the status quo to find new ways of doing things?) Create your planning committee (i.e. Who will you rely on to implement your strategic plan? Who will be you plan administrator and who will be your most valuable players?). And finally, identify the information which must be collected to help make sound decisions. (i.e. What reporting is necessary to access your current situation and measure your efforts in reaching your goals?) A plan is only as good as the information on which it’s based. Don’t rely on assumptions or hunches. Again, I can’t stress enough that you can never underestimate the power of preparation and research.

Please join me as we continue down the Strategic Planning Process Checklist in this space. Next time, I’ll discuss “Articulating your mission and vision”. Meanwhile, keep in mind that success is not a matter of chance, but rather success is a matter of choice.

Inspired by success

Monday, February 19th, 2007

In case you don’t think selling your business is likely or even possible, here are examples of some entrepreneurial companies who’ve sold their businesses (I hope you’re inspired by their success):

Catalytica Pharmaceuticals: A 1,700 employee, Mountain View, California-based pharmaceutical outsourcer that made the world’s supply of such drugs as AZT and Wellbutrin. The company was founded in 1993 and was sold to DSM of Holland for $800 million in 2000.

MLMReporter.com: Founded in 2000, this company, which sells online marketing programs and systems, was sold two years later to KMT Media for just under $250,000 in April 2002.

Paypal: An online payment service based in San Jose was sold to eBay three years after it was founded for $1.5 billion in stock in June 2002.

MySpace: A social networking website (the fourth most popular English language website as of May 2006), was sold to media giant News Corp for $580 million in 2006 three years after it was founded.

How to Avoid Going Broke

Monday, February 12th, 2007

A recent survey found that 54 percent of all companies filing for bankruptcy are experiencing record sales levels in the days and weeks before closing their doors. In most cases, these companies are on a positive growth curve in all areas of their business: hiring new people, generating new business, and ramping up with suppliers. What happened? They ran out of cash.

Take the Tour de Nez, a small local cycling race. It was started 13 years ago by Tim Healion, owner of Reno’s first coffeehouse Deux Gros Nez, to celebrate the restaurant’s anniversary. Over the years, the event has grown from a bunch of revelers riding bikes to a pro cycling event with eight different races. With the growth also came the pre-event expenses. Although Tim was experiencing national recognition and wild success, the financial viability of the race became more and more dire. For a while the coffeehouse profits were used to finance cash shortfalls. But eventually, the event’s cash demands became even too much to finance internally. The result? Tim narrowly avoiding going broke this year through some big sponsorship sales. But next year presents the same issues again. His accounts payables continually outpace his accounts receivable, no matter how successful the event is.

How do you avoid going broke? Protect your balance sheet at all costs. Most businesses owners get caught up in the income statement showing growth in sales. But it’s easy to overlook how this growth impacts the balance sheet. Most of the cash in the business is actually generated and consumed on the balance sheet (by buying inventory, carrying receivables, paying off creditors, and buying fixed assets). Therefore, any time sales go up, it has an immediate and direct impact on both cash flow and the balance sheet. Understanding these relationships holds the key to surviving rapid sales growth.

See Your Business Through a Customer’s Eyes

Monday, February 5th, 2007

Original article featuring Erica Olsen: http://www.mastercard.com/us/business/en/smallbiz/articles/archive/0205Customer.html

Considering the time and effort you invest in your business, it may be hard to stand back and see your company from a different perspective. Discover strategies that will help you to understand how customers experience your business.

By Tara Remiasz

Imagine you’re traveling for business. After your flight takes off and you settle into your seat, you suddenly smell freshly baked chocolate chip cookies. After a while, you see the flight attendants handing the cookies out to everyone. When you finally take a bite of your cookie, you congratulate yourself for choosing an airline with such a great perk.

Several years ago, an employee for Canadian Airlines International devised the idea that baking and serving fresh cookies would be a great way to enhance the customer experience, says Paul Levesque, author, CEO
and founder of Customer Focus Breakthroughs Inc. based in California. The idea of serving fresh cookies may sound simple, but it required a solid understanding of the customers’ experience before the idea could
be developed.

Often times it is difficult for owners and workers to grasp the customer experience because they are so ingrained in the minutia of running the business. Here are some strategies that will help you to see your business from a customer’s perspective.

Break It Down
Levesque says he had consulted with Canadian Airlines International about how to brainstorm customer service ideas. It is likely that a process like the one he taught Canadian Airlines International personnel was used in the brainstorming session that produced the fresh cookie idea. According to Levesque, you cannot
separate employee motivation from the issue of customer service. Asking employees how to improve customer service has two inherent benefits: 1) Because of their daily dealings with customers, workers possess unique insights into the customer experience. 2) Employees will have a stronger desire to see initiatives enacted if they generate the ideas, as opposed to just following a mandated policy.

Ask employees to break down the customer experience into each step in the transaction, Levesque says. For example: First, the customer arrives in the parking lot. Second, the customer enters through the front door. Third, an employee greets the customer. And so on. Each step will be based on the type of business you run, whether it is on the Internet or a brick-and-mortar operation.

Once the customer experience has been broken down into each step, it’s time to apply three customer  service principles to each phase of the process. You and your employees should consider how your business
can exceed expectations, make the customer feel important and tailor the experience to individual  categories of customers.

Levesque offers an example of how all three of these principals were realized when he visited the Magic Kingdom and spotted a braille map of the entire park. The existence of this map went beyond what most
patrons probably expected, demonstrated that visually impaired visitors are important, and that the Magic Kingdom considers how to enhance everyone’s experience.

Ask Your Customers
Perhaps the only people who can vouch for the customer experience better than your workers are the customers themselves. Former customers can provide you with a wealth of information on how to improve operations, says Erica Olsen, vice president of marketing for Reno, Nev.-based MyStrategicPlan.

Olsen suggests having a third-party call former customers for feedback. Instead of directly asking ‘Why don’t you frequent our business anymore?’ she suggests couching the question in terms of ‘We are trying to become more effective as an organization and would value your feedback.’

When you conduct surveys of existing customers, it’s essential that you ask if the primary job was done correctly, she says. Often times, surveys focus on specific details and overlook basic questions such as
how well a business achieved its central goal.

There’s no magic number in terms of how many surveys you should conduct, but Olsen suggests that you do enough to see patterns in people’s answers. Allow yourself the necessary time to gather feedback,
rather than conducting too few interviews before making changes. She also stresses the importance of giving something back in return for your customers’ feedback. By offering a discount or small gift card, you are in fact acknowledging that you value your customers’ time.

A Little Help From Your Friends
Andrew Field, CEO and founder of PrintingForLess.com, Inc., in Livingston, Mont., also endorses the idea of conducting surveys. Field suggests using a one to seven rating scale that covers how a certain transaction went, and also how important that particular transaction is for the customer.

In addition to tapping employees and customers for feedback, Field recommends professional mystery shoppers or simply employing the services of friends and family to mystery shop your operation. Field
learned the value of mystery shopping accidentally, after his mother placed an order for brochures from his company. When the box of brochures arrived at her door, Field’s mother was dismayed to find that the box had been damaged in transit and some of the brochures had been ruined. Several of Field’s sales reps confirmed that this problem occasionally occurred with their clients’ shipments. Armed with this
new information, Field’s company instituted a policy of shrink-wrapping bundles of paper goods and then double boxing each shipment.

Whether you decide to use a professional mystery shopping service or friends and family, the key is to obtain objective, unbiased information about how a customer experienced your company. Be sure to obtain feedback on everything from how the customer was greeted to the quality and timeliness of service.

 
 
 
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