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Building for Growth. Nick Marsh 19 th March 2013. Introduction. Past Family manufacturing business Forte / Whitbread / Hilton Small to Medium Firms 2007 - Present Strategic Development Business West Coach team Exec Support. Mantra. If not you, then who? If not now, then when?. - PowerPoint PPT Presentation
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Building for Growth
Nick Marsh
19th March 2013
Introduction
• Past– Family manufacturing business– Forte / Whitbread / Hilton– Small to Medium Firms•2007 - Present•Strategic Development •Business West Coach team•Exec Support
Mantra...
If not you, then who?
If not now, then when?
1. Compete
• Where do you currently compete?
• On what basis do you compete?
Segment Customers By Value
* Defined by profit/margin/volume/sales - whatever is most useful
Cost to ServeLow High
‘Profit’* From Serving
High‘Discerning’ Customers
‘Easy Pickings’
‘Fillers’ ‘Pain in the Neck’
Keep Happy Get out if possible
Maintain as longas possible
Minimise effortbut keep hold of
Place customers into segments and determine how the firm needs to focus its efforts to serve them
2. Future-proof
• How and where can you build sustainable advantage and margin?
Strategic Positioning
Market Forces
Action:Invest /Grow
Action:Selectively
Invest
Action:Manage forSustainedRevenue
Action:Manage for
Cash / Withdraw
HighLow
High
Low
Market / Segment Attractiveness
• Size• Growth• Profitability• Competitive intensity
Business Strengths• Product range• Product suitability• Service quality• Price• Associated services• Reputation / Image
Market/Segment Analysis
3. Audit
Take an objective look...
• Internal
• External
Assessing the Team
• Competence: Level of technical / general experience
• Judgement: Evidence of effective decision making under pressure
• Energy: Bright or burned out?• Focus: Clear priorities or a grasshopper?• Relationships: Aligned with others or spiky?• Trust: Will commitments be honoured?
The Company / The Brand
• The value of your brand resides in the hearts and minds of your customers, employees and suppliers
• Your internal and external messaging must have a synergy of style and content
• The colours and symbols you choose can allow you to differentiate from your key competitors
• Your brand must deliver awareness, comfort / convenience / quality and loyalty
Brand Wheel
Pestle• A tool for understanding the industry situation as a whole and is often used in conjunction
with a SWOT.
• PESTLE: “Political, Economic, Sociological, Technological, Legal and Environmental” factors.
• Ask yourself, what are the:
– Key political factors likely to affect the industry? – Important economic factors? – Cultural aspects which are most important? – Technological innovations that are likely to occur? – Current and impending legislation that may affect the industry? – Environmental considerations?
4. Build
• What changes / developments must you undertake operationally, in behaviours and in communication?
Agree the Foundation for GrowthMission = Ultimate long term goal, aim or objective. ‘Constant Purpose’
“Space exploration for the advancement of science”
Vision = What something will look like; how you see the future & yourself in it. 1.“A man on the moon” 2. ‘A manned space station’ 3. ‘Mars….’
Strategy = How we will get there. “Develop superior technology that will take men to the moon”
Tactics = Sub-elements of the Strategy Implementation. These are changeable depending on how circumstances change.
“We will need wide tyres on the buggy in case the sand is deep”
Objectives = Milestones on the way to implementation. ‘Small Steps’
Defining the Value Proposition
What Needs?
What RelativePrice / Value?
What Customers?
• which products?• which features?• which service?
• what end users?• what channels?
• where do you sit in the market?
Building Your Support Network
Technical Advisers• Provide analysis of
technologies, markets & strategies
Cultural Interpreters• Provide insight &
models to help you understand positive culture
Political Counsellors• Operate as a
sounding board to support & challenge you in decision making & implementing growth agenda
Positive Leadership Traits
Demanding but can be satisfied• Press staff to agree to realistic commitments & hold them to those
promises• Recognise effort to maintain motivation
Accessible but not too familiar
•Be approachable but preserve your authority•Do not make yourself available indiscriminately (time to reflect)
Decisive but judicious • Defer major decisions while you gather data• Seek input from relevant team members
Focused but flexible •Show capacity to consider multiple solutions•Focus on key issues, but be open to consultation
Motion without commotion
•Build momentum without overwhelming the team•Learn how far you can push, without pushing too far
Humane but able to make tough decisions
•Do what needs to be done , but preserve dignity & be seen as fair•Don’t procrastinate over difficult decisions
Drivers for Change•The firm cannot define vision or priority strategies•Resources are spread too thin•Staff are rewarded for fire-fighting not for building sustainable solutionsFocus•Staff exhibit broad variation in levels of performance•There are no consequences for inconsistency•There is a culture of excuses for non-performanceDiscipline•Internal benchmarks are used to measure performance•Improvements in products & services unfold incrementally•Employees are rewarded for stale performance not for testing boundariesInnovation•Team members compete to protect turf rather than achieve collective goals•Members are rewarded for achieving personal goals onlyTeamwork• Needs of internal & external customers are ignored• Complacency is King: We have time to respond…
Sense of Urgency
Performance Measures
• Relative market share• Average customer value• Share of customer wallet• Customer loyalty / retention• Cross purchase levels• Net promoter scores• Levels of revenue• Unit volumes
5. Communicate
• Internal...
• External...
Internal Marketing Wheel
Communicating Strategic Messages• Strategy involves everyone in the organisation, not just management
• The benefits of strategy are greatest when it is communicated widely in the organisation
• Communicate the strategy in a simple and vivid way. Describe the essence of the strategy (1 or 2 paras vs. 20 pages) - create symbols and keys to the strategy
•The basic strategy and value proposition must also be communicated to customers, channels, suppliers, and stakeholders
• Do not assume that subordinates understand the strategy or that they agree with it:- a series of open, two way discussions may be necessary to increase understanding and buy in
• Those who do not ultimately accept the strategy cannot have an ongoing role in the company
Take Time to Reflect
What do you feel?
•Excited. If not, why not•Confident. If not, what can you change•In control. If not, what needs to change
What is bothering you?•Who are you not connecting with, why•Are meetings well structured & useful •Of all you see & hear, what disturbs you the most
What has gone well or poorly?•Which interactions could have gone better, which went well•Which of your decisions has turned out well or not so well•Which missed opportunities should have been captured
Facetube…Linkedout…SplatterTechnology Marvel or
Communication Mayhem?
Harnessing New Technology
Why…because segments of your audience may be using social media channels to assist / inform their buying decisions. Or, they might be talking about your product or service
Why…because until you understand the opportunity, your customers may be moving away from you and your competitors leaving you behind
Recognition
• “Thank you” messages / handwritten notes• Flowers / Champagne• Social events / away days• Anniversaries• Sabbaticals• Spontaneous celebration of success• Birthday cards / day off
But….a simple verbal thank you is often enough
Summary: Critical Questions
The market• Which markets do we serve & what are the key issues• What do we have to do to be successful• Who are the most innovative / successful competitors• Are we setting the right goals, aligned to the external environment
The product / service
• How do we deliver a service that customers value & want to buy• What is our USP / proposition• What is the pricing & distribution strategy
The finances • Are we tracking invoicing & payments• How do we fund new opportunities• Where does the business create sustainable profit
The people • Do we have the right people in the right places to implement the strategies & address the issues
• Who are the people who make things happen. Who are the anchor draggers
The processes • Where can we develop operational efficiencies• How do people & departments work together• How are decisions made & implemented
Ongoing Support
• High Growth Coaching
• Growth Accelerator
• Resource Efficiency Programme
• UKTI: International Support
Closing Thought
Inspire...
Involve...
Engage...
Nick Marsh: 07876 595 272