One prerequisite for growth entails understanding yourself. The questions below may help in this area. Following the questions are some categorical observations and courses of action to consider, based on your responses.
Consider the strategic focus of the business — does management recognize the importance of designing the company to serve the needs of chosen markets? Stated another way, are you trying to be all things to all people, or do you serve well-defined markets chosen for their long-term growth and profit potential?
Do you intimately understand the needs of customers? This does not mean delivering quality, service, and a competitive price. Everyone strives to do that. In answering this question, do you regularly research customer needs, and use that information to help shape strategic decisions?
Do you connect with customers in ways that make it easy for them to connect with you? Since customers are the cornerstones of a company’s success, there should be multiple communication channels between you and them. There should also be internal processes that facilitate the dissemination of the customer information throughout your organization. In that way, customer comments do not fall on deaf ears. Instead, they are heard and understood.
Do you use financial information to shape strategic direction and tactical actions? We’ve discussed in previous columns the importance of knowing your key numbers that indicate your level of success. Know those numbers for your situation, and use them. Don’t just review them, but use them to help you shape strategies and actions.
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Where Are You?
How did you do? Are you behind the pack because the answers were more negative than positive? Are you getting by, with some good responses and some not so good responses? Or, are you ahead of the curve, with positive responses for most of the questions?
If you are behind the pack, there are some basic actions that will solidify your position. Think in terms of three driving forces — strategic, tactical and financial. Strategically, be specific in defining target markets, and intimately understand the customers in those markets. Tactically, establish multiple connections points with customers, and listen to what they say. Financially, know how to measure your success, and adjust based on the results.
If you think you are getting by, the question is — where to go from here? Develop a fully integrated revenue generating system. Create a layers-deep web of mutually supporting activities. This web of activities propels forward your strategy for serving customers, and each activity supports and enhances other activities throughout the company. In combination, the systemic whole produces competitive advantages virtually impossible for competitors to duplicate.
You are ahead of the curve. Congratulations! From here, consider being your own worst enemy. Your competition is looking at what you are doing. They will identify any weakness in your position, and exploit it. Stay ahead of them by constantly critiquing yourself as the customers would critique you. Be the customer. Test yourself. Look at all of the components of your organization, and ensure that each component drives value for the customer. If a component does not contribute to customer value, question its purpose. Do not spend resources on counterproductive elements.
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Ken Cook is managing director of Peer to Peer Advisors, an organization that facilitates business leaders helping each other. You can reach him at kcook@peertopeeradvisors.com.
