There is no single answer to the question posed, but I want to share a quality control story with you, courtesy of Bill Waddell (www.evolvingexcellence.com). I’ve seen it happen in many environments, from capital goods to services and the office to manufacturing.
Quality Control - A Dose of Common Sense Goes a Long Way
The organization that typically pursues a ‘Fancy’ approach to solving a quality issue overlooks two basic rules in running a business:
- The people closest to the challenge often have the best insight
- Fancy doesn’t necessarily mean better
Feel free to share with others and keep your eyes and ears open for the simple approach to seemingly complex challenges!
#9: “Power Brands” earn their top-standing status by consistently communicating a singular positioning concept – i.e., Disney = magic, Coke = refreshment, Apple = awesome design.
#8: Organizations with fewer levels in their management hierarchies communicate more effectively, implement more efficiently and keep associates more engaged and motivated.
#7: One-page strategic plans help organizations stay focused on the 20% of actions that drive over 80% of desired results.
#6: Studies repeatedly show that individuals make better decisions when confronted with fewer options – so will your customers!
#5: Strong presentations repeatedly make only three key points – after audiences hear the first two points, they stay actively engaged in anticipation of the third.
#4: Investors back business plans that clearly articulate a game changer idea to address a specific group’s wants in a differentiated and ownable fashion.
#3: The production line concept was built on the idea of making one product efficiently – Henry Ford is famous for saying: “get any color Model T you want, as long as it’s black”.
#2: Great companies are driven by a tightly defined core ideology comprised of a motivating core purpose, a unified set of core values and a simply stated envisioned future.
#1: This list is comprised of 9 versus the typical “Top 10” things because less is more!
Every business wants referrals. Each business owner networks in their own way. Too often, that networking comes down to the question, “Please let me know if you know anyone who needs my products/services.”
Jim Bear, Founder of the Referral Stream, has developed a different approach to building business. As his website reports, “…he teaches people how to identify their ideal client, where to find that client, how to ask for an introduction, and how to develop meaningful business relationships.”
Two of the critical take-aways:
- Defining your ideal client. This becomes easy when he encourages you to think about an actual customer that you would kill for.
- The second key discovery is in ‘Where’ to find that client. The secret is to find the person or business that sees your prospect just before the prospect needs you. (His example of the orthodontist developing a referral relationship with pediatricians is a classic way to develop a Referral Well.)
The lessons of Jim’s approach are valuable for anyone looking for improved ways to grow a business.
P.S. It is often helpful to work on your potential list of referral sources with someone else, so the ideas aren’t limited by ‘what we know to be true’. Click to read a related article on this idea.
WHO – “Who” is the core customer of the enterprise. This defines the potential customers most likely to buy the product or service in the quantity required for optimal profit.
Is your juice box customer the 4-year old who drinks your product or the 25-40 year old, well-educated, Internet-savvy Mom? Robert Bloom helped Nestlé move from an also ran juice box company to #1 by recognizing that Mom was their customer and targeting the well-educated health conscious Mom in all their marketing.
Personalize Your Customer
Bob Bloom, author of “Inside Advantage,” is the grand master helping identify the “Who.” The key is to personalize your customer. This is more than understanding your target market; it’s about putting a face, name and persona on your customer. “Getting to know your customer by thinking about her or him in human terms – not as a statistic – will help facilitate a positive sales outcome”, says Bloom.
- Start with the demographic attributes of your core customer.
- Move to the psychographic characteristics.
- Then make it personal. It’s ok to stereotype here, we’re looking for the 80% not the entire 100%.
A. What are their likes and dislikes?
B. What other interests do they have?
C. Are they comfortable on the Internet or are they low tech?
D. Is there something truly unique about your buyer that might distinguish them?
Curves is a classic “Who” study. A middle-aged woman, ready to be fit, not too athletic, hates spandex, little or no exercise experience. With this “Who” in mind, Curves not only shaped their marketing but shaped the entire customer experience. The Curves workout is a set of easy to follow stations that fosters social interaction. Understanding their “Who”, you won’t find the classic exercise mirror wall in a Curves. Curves knows it’s “Who”.
80% Ain’t Bad to Define Your Core Customer
Inner Circle founder Norm Stoehr often talked about his restaurant experience with a house dressing that 80% of his customers loved, 10% thought it was too spicy and 10% thought it was too bland. Our tendency is to fiddle with our 80% approval rating to satisfy what may simply be outliers. Do not mess with success. The 80-20 Rule is alive and well when it comes to your Who.
Figure out who your “Who” is, keep it dynamic, let it evolve as you sharpen your understanding what motivates your best core customers.
By Dave Dahl, on January 9th, 2012 drdahl@aol.com,
In my thirty years working with corporate executives and business owners, I have learned that emotional intelligence (EQ) is probably more important than intellectual intelligence (IQ). Business cultures with high levels of employee engagement, have leadership teams with high levels of emotional intelligence.
I recently came across an article on “Intellectual Wellness” which has many similar attributes to emotional intelligence. Anything we can do to improve our “Intellectual Wellness” is certainly going to contribute to a happier and more productive life. It would be “well” worth your time to take the twelve question quiz below and learn how you are doing on your own “Intellectual Wellness”. For more information, go to www.welcoa.org.
Are You On Your Way To Intellectual Wellness?
Answer yes or no to these questions and see how you rate below.
- I’m usually on the lookout for new skills to learn.
- I generally have mentally stimulating interests.
- I am usually satified with my work/career.
- I normally am optimistic.
- I think of myself as a “lifelong learner.”
- I seek out ways to improve myself both personally and professionally.
- I read books other than those related to my profession.
- I adapt to change.
- I keep up with current events via the Internet, newspaper or other media.
- I am financially responsible.
- I consider myself to have healthy interpersonal relationships.
- I maintain my physical health by regular trips to the doctor.
Give yourself a 1 for every “yes” and a 0 for every “no”.
8 or more – EXCELLENT: You are on your way to Intellectual Wellness!
5-7 – AVERAGE: You’re trying, but there is room for improvement.
4 or less: BELOW AVERAGE: Check out www.welcoa.org for tips on how to improve.
Many people find selling to be a tremendous challenge. Some fear hearing “no” – others might lack sufficient confidence in their product/service offering to ask for the sale in a concise and forthright manner. A short while back, I heard a presentation by John Baker in which he articulated a simple formula for getting what you want. He calls it “The Asking Formula”. To learn more visit www.theaskingformula.com.
His formula is based on some simple principles:
- If you don’t directly ask for something, you surely won’t get it
- Not knowing what you want typically doesn’t provide the result you’re seeking
With these axioms as a foundation, John recommends the following approach to productive selling:
- First, be clear about what you want. Be concise and direct. Demonstrate a sense of urgency and focus your intent on just one thing
- Second, articulate your request by declaring “I’m asking for ______.” Exude confidence. Eliminate all qualifiers and use a visual if possible to showcase your ask. Be careful not to fall into the trap of providing a lot of information – this only confuses your audience about what you want.
- Third, think about what your target audience gets by fulfilling your request. Oftentimes, this requires active listening. Build a personal connection, demonstrate that you know your customer’s business and understand it, and then provide three core reasons based on THEIR WANTS on why they should do business with you. Articulate these three “best reasons” for why they should respond to your ask.
- Fourth, restate your ask and stop talking. Give them a chance to answer and ask for more clarifying information. Then, concisely address their additional questions with supporting facts on why you can provide what they seek.
The result is likely to be a closed sale. However, don’t fret if you hear “no”. They might be doing you a service by saving you time on trying to sell them something they don’t want, or by providing a key insight regarding how you can more clearly present your value proposition in the future. Use the Asking Formula, and enjoy the sweet feeling of getting what you want!
In nearly thirty years practicing law and sharing countless books with clients, friends and business owners, I have seen more impact and received more positive feedback from a book that has nothing to do with business but everything to do with enjoying prosperity. Younger Next Year was written a number of years ago by a retired Wall Street lawyer, Chris Crowley and a family doctor, Henry Lodge (“Harry”). The book has been transformational for me and for the many who have decided to follow “Harry’s Rules.” The book shares in an easy to read memorable way why and how these rules work, both practically and scientifically, but just seven simple rules can help you be “younger next year.” As we look at 2012, more of us should take heed and follow Harry’s Rules.
Harry’s Rules
#1 – Exercise six days a week for the rest of your life.
#2 – Do serious aerobic exercise four days a week for the rest of your life.
#3 – Do serious strength training with weights two days a week for the rest of your life.
#4 – Spend less than you make.
#5 – Quit eating crap!
#6 – Care.
#7 – Connect and commit.
Younger Next Year shares that aging may be inevitable but decay is a choice. It is easy to do, unfortunately easy not to do. Forget New Year’s Resolutions, commit to being younger next year by slowing, if not reversing, the decaying process. Read the book to get the jump start you need.
May 2012 bring everything you are hoping for and may you also be Younger Next Year. Happy New Year!!!
Is your organization grounded on a solid foundation with an articulated Core Ideology: Core Values and Core Purpose? Core values are those essential guiding tenets that define the enduring character of your organization. Core values provide the base against which all decisions can be tested. Is this action consistent with our core values? Your purpose is why your organization exists and it’s not to make money, that too easy. When found your core purpose describes your passion.
Core Values embody what you stand for. Zappos is well known for living their core values. Number 1 on their list is Deliver WOW through Service. They say if something is worth doing it is worth doing with a WOW. A signature story which exemplifies their core value is the customer service person who took four hours to help a woman who had a problem with her the shoe she had recently bought. Four hours is pretty impressive but then you find out she didn’t even buy the shoes from Zappos. Another Core Value they live by is create fun and a little weirdness. One has to wonder where the little weirdness line is? To shape your core values start with the list you think represent your core value then test them. If circumstances caused this value to pelanize your company, would you change it or stick with it? Would you fire an employee who violated this value? What if she was your #1 sales person? When you have true core values identified you will celebrate signature stories and ask who will create the next signature story.
Core Purpose defines why you exist. For 3M it’s Innovation, for Nike it’s Competition, Disney, Happiness and Starbucks Escape. This is a hard one to nail down. Most often the answer is to make money. Jim Collins suggests that you ask that most important question, why at least five times and then maybe you will be getting closer to the answer. In a recent session, it became apparent that the company I was working with the passion was about solving problems. Not necessarily market place words that will drive customers to the door but truly what was driving their organization and success.
These core ideologies set a foundation needed to build the organization that can sustain the growth we all hope for. Get these identified, articulated and then use them.
A useful resource to help find your core ideology is Jim Collins and Jerry Porras 1996 Harvard Business Review article, “Building Your Company’s Vision.”
But you’re an old fart and have been around the block (probably several times.) What can she provide you? Ask Cisco Systems or other companies that have found success with Reverse Mentoring.
In a recent newsletter, futurist Jack Uldrich reinforced his position that mentorship should go both directions (chronologically).
Jack Welch used reverse mentoring almost 20 years ago to help his executives learn how to use the Internet. The same need might exist today with respect to Social Media.
For a great article, see the Wall Street Journal’s reporting and video clip.
Need insights into work place rules? Work philosophy? Another generation? Consider recruiting your own young, smart, savvy mentor. It could be one of the best things you do in 2012!
As we approach the end of the year, it’s traditional to reflect upon what we have accomplished in the past twelve months and our goals for the coming year. This is fine when you’re thinking about articulating your operating plan for 2012 – but, to truly optimize your organizational culture and business performance, also take some time to define your underlying core purpose.
For most thriving start-ups and entrepreneurial enterprises, the business founder’s personal core purpose and that of the organization are oftentimes one and the same. An authentic core purpose is much more than the simple pursuit of greater profits. Those organizations that prosper are usually driven by a common focus on providing something truly meaningful for the greater society. These core purpose statements are externally versus internally focused.
How do you want to make a difference in this world? What provides you with the greatest amount of personal meaning and satisfaction? How can your business stay true to these aspirations, and create the enduring legacy you desire?
These are all important questions to ponder as you begin to articulate the core purpose for both you individually and for your business enterprise. One resource that I have found helpful when I first articulated my own core purpose statement was a book by a local Twin Cities author: “Even Eagles Need A Push” by David McNally (see http://amzn.to/nUz8Ze). This is NOT a book to read – rather, it’s a workbook that guides you through exercises that ultimately help your core purpose reveal itself.
Do the work. It’s well worth the effort. Witness for yourself how articulating an honest core purpose can bring both energy and peace. Go into 2012 with purposeful intention, and see the fruits it will bear. On behalf of myself and my fellow EBITDA Partners, I wish you all the best for a fulfilling 2012 and beyond!
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