Business Execution Excellence

Why focus?

2010-06-01T21:51:00.009+02:00

Confucius says:" Man who chases two rabbits catches neither!"

"I'd rather be strong somewhere than weak everywhere".

When managers know they have only one battle to fight it concentrates their minds wonderfully.

Companies that broaden their line, for whatever reason, are vulnerable to narrowly focused competition that takes advantage of division.

Nobody loses business just because they have a broad focus. To lose business you have to run up against a competitor with a narrow focus.

What's needed for success is focus, which sometimes can be achieved with a full line of products, but with sacrifices' made in other areas. Distribution could be one such area. Dell Computer deselected retail distribution and direct sales force with success.

Some managers equate size with power. Is a large company more powerful than a small one? Not necessarily. A highly focused company is more powerful than a less focused company.

What provide an organization with its power is its degree of focus and its share of market. Size is only important if it contributes to an increase in market share.

Power gives a company the ability to "control" n industry, taking it in a direction that will only increase the company's power and domination.

Wouldn't it be easier to increase the share of a business you know than to get a share of a business you don't know?

A focus is not forever.

At any point in time, a company has 3 kinds of products: (1) yesterdays products, which are candidates for disposal; (2) today's products, which are producing the bulk of the company's profits; and (3) tomorrow's products, which are the company's future.

Nothing stays still long enough for a company to be perfectly focused.

Sooner or later even the most powerful focus becomes obsolete. That's when a company must refocus itself.

Focus, the future of your company depends on it.

Above are abstracts from the book:"Focus, The future of your company depends on it", by Al Ries.

If you are a BtB-unit manager and you are interested in some practical DIY-tools on strategic focus maybe you will enjoy visiting my blog: "Strategy On-line" or contact me at ps@psb-management.dk

Regards
Peter Sørensen

What are your plans when you get to New York?

2009-09-03T10:17:00.014+02:00

Recently I read with interest an article by Kenneth Rogoff, Project Syndicate in Korea Times about some of the challenges and opportunities faced by Europe.

Below is an abstract:

What will Europe's growth trajectory look like after the financial crisis? For some Europeans, still nervous that their economies and banking systems might collapse, this is a little like asking a passenger on the Titanic what they plan to do when they arrive in New York. But it is a crucial question to ask, especially when Europe has been facing so much outside pressure from the likes of the United States and the International Monetary Fund to focus on short-term Keynesian stimulus policies.
................
Yet, ugly or not, the downturn will eventually end. Yes, there is still a real risk of hitting an iceberg.
.....................
But, for now, a complete meltdown seems distinctly less likely than gradual stabilization followed by a tepid recovery, with soaring debt levels and lingering high unemployment.
...........................
An epic, financial-crisis-driven recession, such as the one we are still experiencing, is not a one-year event. So policymakers' responses cannot be evaluated by short-term measures, either. It is just as important to ask what happens over the next five years as over the next six months, and the jury is still very much out on that.
.......................................
The recent recession has presented challenges, but European leaders were right to avoid becoming intoxicated with short-term Keynesian policies, especially where these are inimical to addressing Europe's long-term challenges.

Kenneth Rogoff is Professor of Economics and Public Policy at Harvard University, and was formerly chief economist at the IMF. Copyright: Project Syndicate, 2009. www.project-syndicate.org

When I read the article I came to think of companies instead of continents. I think that many companies these days see themselves like having been onboard an ocean going maiden voyage - maybe even a "Blue Ocean" voyage on an unsinkable cruiseliner towards the land of golden opportunities.

And now they hit an iceberg and the question of strategy planning seems as relevant as the above question of "what they plan to do when they arrive in New York"

As for continents according to Kenneth Rogoff I believe it is for companies in that: "policymakers' responses cannot be evaluated by short-term meassures, either. It is just as important to ask what happens over the next five years as over the next six months, and the jury is still very much out on that".
If you are a B2B policymaker you may find interest in reading my blog "Strategy On-line" where I also discuss practical hands-on tools in strategy formulation and execution or your may find interest in reading my little "epic" story of a ship, a captain and his crew: "Back on the right course".
You may also contact me at ps@psb-management.dk

PETER SØRENSEN

If you do not know where you are going

2009-03-02T20:14:00.012+01:00

..................... any road will take you there.

Or what happens when you are not clear on what is your mission and what are your values.

"`Cheshire Puss,' Alice began, rather timidly, as she did not at all know whether it would like the name: however, it only grinned a little wider. `Come, it's pleased so far,' thought Alice, and she went on. `Would you tell me, please, which way I ought to go from here?'
`That depends a good deal on where you want to get to,' said the Cat.
`I don't much care where--' said Alice.
`Then it doesn't matter which way you go,' said the Cat.
`--so long as I get SOMEWHERE,' Alice added as an explanation.
`Oh, you're sure to do that,' said the Cat, `if you only walk long enough.'"
"`But I don't want to go among mad people,' Alice remarked.
`Oh, you can't help that,' said the Cat: `we're all mad here. I'm mad. You're mad.'
`How do you know I'm mad?' said Alice.
`You must be,' said the Cat, `or you wouldn't have come here.'
Alice didn't think that proved it at all; however, she went on `And how do you know that you're mad?'

`To begin with,' said the Cat, `a dog's not mad. You grant that?'
`I suppose so,' said Alice.
`Well, then,' the Cat went on, `you see, a dog growls when it's angry, and wags its tail when it's pleased. Now I growl when I'm pleased, and wag my tail when I'm angry. Therefore I'm mad.'"

(Text by Lewis Caroll:"Alice's Adventures in Wonderland " and picture by John Tenniel)

In the famous story "Alice's Adventures in Wonderland" by Lewis Caroll, Alice does not have any mission: "That depends a good deal on where you want to get to," Said the Cat.

"I don't much care where--" said Alice.

Alice is also quite vague about her values:" Bur I don't want to go among mad people," Alice remarked.

Are you clear on your company mission and values?

If not how can you decide which way to go - what strategy to follow?

Particularly in times of financial crisis, economic down turn, stock market collapse, recession, consumer cut in spending etc. it is essential to have a strategy that is clear as crystal.

If you would like some input as to how to identify and formulate company mission ans values as well as how to formulate and implement company strategy you may want to take a look at my other blog: Strategy on-line or contact me at ps@psb-management.dk

Peter Sørensen

Making a brick or building a cathedral?

2008-06-14T17:14:00.010+02:00

About the importance of mission statements particularly in B2B Business

It was a hot sunny day and the hiker was out walking. She passed a limestone quarry and met two men working hard and sweating while they were chipping away at the hard rock.
"What are you doing?" she asked the first man.
"I am making limestone brick" he answered in a sulky mood.
"But we are doing more than that!" exclaimed the second
"We are building a cathedral!"

The above short story illustrates in a good way the importance of putting the right perspective or purpose into your mission statement - particularly if your are a B2B manager

In B2B your direct customer is not the end-user and it may be difficult for your employees to see the wider perspective or meaning in what they do. This is a consequence of your company's position in the value chain as I describe in my other blog: "Strategy on-line"...

In their book:"Executing your Strategy; How to break it down & get it done" Morgan, Levitt and Malek put it this way:

"A sense of purpose is critical to creating a sustainable organization or business. It gives people a compelling reason to come to work every day and to invest their personal resources in the collective endeavour........
Without a sense of purpose, there is little reason to expect high performance. In contrast, a strong sense of purpose can actually reduce the stress of the overworked, by helping people separate the unimportant tasks from the ones that propel the organization toward its intended future....
......., the smallest building blocks of strategic execution are the individual, moment-by-moment choices of what to work on, what not to work on, and what level of effort and excellence to bring to the task. Without some collective sense of purpose, those individual investment decisions devolve to personal preference. Thus creating a sense of shared purpose is far more important than the sharing of lofty thoughts in the executive suite. It is actually the microscopic fibre that connects individual choices to the real work of strategic execution."

PETER SØRENSEN

To be committed or merely to be involved?

2008-05-09T15:01:00.012+02:00

The pig and the hen met one early morning just outside the barn. The sun was shinning and it was a beautiful day - just right for discussing visionary ideas.
The hen said to the pig: " I have a business proposal that I would like to discuss with you."
"And what would that be?" asked the pig a little on guard.
"I suggest that we open a Breakfast Restaurant", said the hen.
"A Breakfast Restaurant?" the pig was surprised.
"Yes, a Breakfast Restaurant where we will serve home made country cooking" answered the hen.
"And what would be on the menu?" the pig was now interested.
"It should of course be Bacon & Eggs!" declaimed the hen.
"Great idea - let us go for it" acclaimed the pig now convinced that the hen had indeed come up with a brilliant idea.

In the above I guess that you can say that the hen was involved but the pig became committed?

Transformed into business language there may be some resemblance to the relationship between consultancy and leadership - you guess who is who!

Having said that I strongly believe that we need both types - also in business, and if you happen to be a leader do not despair - because in Nordic mythology there was one unique creature called "særimner". The gods would cut slices of bacon form him every evening and in the morning he had fully recovered!

And if you do not mind me getting "involved" then maybe you should checkout my blog:

www.strategyonline.blogspot.com

or contact me at: ps@psb-management.dk

Peter Sørensen

I can see clearly now.......

2008-03-07T11:20:00.008+01:00

Thanks to http://www.youtube.com/user/ncmizzy
I often think of a Johnny Nash classic: " I can see clearly now": Here is how it goes:

"I can see clearly now, the rain is gone,
I can see all obstacles in my way
Gone are the dark clouds that had me blind
It’s gonna be a bright (bright), bright (bright) Sun-Shiny day.
I think I can make it now, the pain is gone
All of the bad feelings have disappeared
Here is the rainbow I’ve been praying for
It’s gonna be a bright (bright), bright (bright) Sun-Shiny day.
Look all around, there’s nothing but blue skies
Look straight ahead, nothing but blue skies
I can see clearly now, the rain is gone,
I can see all obstacles in my way
Gone are the dark clouds that had me blind
It’s gonna be a bright (bright), bright (bright) Sun-Shiny day."

I know it maybe a bit far-fetched but in a way the above describes in a perfect way what I hope to help facilitate in B2B development with my other blog:

www.strategyonline.blogspot.com

Peter Sørensen

Management by asking questions?

2008-02-07T18:07:00.005+01:00

http://www.courtauld.ac.uk/gallery/exhibitions/2007/cranach/adam-eve5.jpg

I thought that I would share with you one of my favourite stories - written by Jostein Gaarder: (Mika is an alien on his first visit to planet Earth)

A Story about the Power of Questions

To bow or not to bow……….?

”You can eat an apple”, I said and gave him the green fruit.

It was as if he had seen an apple for the first time.

First he just held it there and smelled it, but then he took a little bite.

”Mum - mum”, he said and took a bigger bite.

”Did it taste good?” I asked.

He bowed deeply.

I wanted to know how an apple tastes the very first time you taste it, so I asked again:

”How did it taste?”

He bowed and bowed.

”Why do you bow?” I asked.

Mika bowed again. It made me feel so confused, that I hurried to ask the question again.

”Why do you bow?”

Now it was him who became confused. I think he did not know if he should bow again or just answer.

”Where I come from we always bow, when someone asks an interesting question” he explained – ”and the deeper the question, the deeper we bow.”

That was the strangest thing I had heard in a long time. I could not understand that a question was something to bow for.

”What do you do when you greet each other?”

”We always try to find something wise to ask?” he said.

”Why?”

First he bowed quickly, because I had asked another question and then he said:

”We try to ask a wise question to get the other person to bow”.

I was so impressed by the answer that I bowed as deeply as I could. When I looked up Mika had put his finger in his mouth. After a long time he took it out.

”Why did you bow?” he asked and looked insulted.

”Because you answered my question so wisely,” I said.

Now he said very loudly and clearly something that has followed me in my life ever since:

”An answer is nothing to bow for. Even if an answer can sound ever so right, still you should not bow to it.”

I nodded briefly. But I regretted it at once, because now Mika may think that I bowed to the answer he had just given.

”The one who bows shows respect”, Mika continued, ”You should never show respect for an answer.”

”Why not?”

”An answer is always the part of the road that is behind you. Only questions point to the future.”

Those words were so wise, I thought, that I had to press my hands against my chin not to bow again……..

- Jostein Gaarder, 1996 in Norway

If you believe that asking the right questions is a powerful way to start formulating a crystal clear business strategy then maybe you should visit my other blog:

www.strategyonline.blogspot.com

Peter Sørensen

Back on the right course

2008-01-15T19:57:00.003+01:00

Once upon a time there was a boat - a sailing boat. On board the boat there was a crew of experienced sailors. They all had their particular skills like navigating, hoisting sails, steering, repairing or cooking. Oh yes, they had been through rough waters - some years ago, the ship had almost wrecked. A storm was up, the waves were as tall as high rises, the wind was bitterly cold and the ship deck was slippery and wet - some people even fell overboard. The captain however had a plan - he had a good sense of direction, a strong belief in the capability of the boat and its crew and the powerful will to persevere. With his and the help of his crew, they managed to save the proud ship, put her on the right course and steer her into calmer waters.

Even the sun came out and it felt so good to be out of the rain. Life was in many ways a lot easier. Sailing was easy and it was now clear that they were in rich waters with plenty of different species of fish to catch. Sure they were different, the fish. Some liked the flounders and plaice, which were best caught with a bottom trawl, some liked the codfish you could catch easily with a simple fishing pole and yet some liked the flying fish, you did not have to do anything to catch.

With no immediate threat, the crew started going off in different directions - of course they still felt they were all in the same boat - but they did not concentrate on the same things anymore. The wind was turning against them and no one had set a new course. In short, they were adrift and not only that - they were heading directly towards rocky shores.

It could have become a horrible ship wreck, but before it was too late, the captain and his entire crew managed to focus their efforts on getting back on course, trimming the ship, regaining full speed and leaving the rocky shores way behind them.

Yes, of course the above is only a story but I hope it also gives a mental picture of how I see some of the tasks, challenges and opportunities in business.

We shall update the picture of our possibility of success in the various markets and product areas, where we are active. On this basis we shall focus our efforts on segments where we - in the best way possible and better than our competitors - are or will be able to meet our customers' core needs.

Focusing on some areas means discarding others. Focusing calls for flexibility but also offers new possibilities.

If you are interested in Blue Ocean Strategy and Leadership then maybe you should check out my blog:

www.strategyonline.blogspot.com

PETER SØRENSEN

Megatrends

2007-12-10T13:58:00.001+01:00

From low procurement cost to low life cycle cost

Strategic purchasing, rationalizations, process improvements, product optimizations, LEAN and outsourcing are all examples of tools that are being used by the various companies in the value chain in order to offer their products or services to the end-user at a lower procurement cost than competition. Increasingly however customers are not only looking at the cost that they have to pay to receive and use any given product or service. In some cases there are also direct disposal costs to the consumer like e.g.: Garbage collection. Costumers are also looking at the associated costs to the society in general of procurement, usage and disposal like e.g.: Environmental and recycling costs.

http://en.wikipedia.org/wiki/Life_cycle_analysis

From high value to high ethics

Customization, usability, efficiency, flexibility, durability, experience and perception are characteristics that the various companies in the value chain build in their products or services in order to offer high value to the end-user and differentiate themselves from competition. Increasingly however customers are looking at the wider social perspectives of procurement, usage and disposal of the product or service. Customers are looking at the effects on quality of life for employees in the value chain as well as for the society at large.

http://en.wikipedia.org/wiki/Corporate_social_responsibility

From consumer to prosumer

Need and fulfilment, produce and consume have since the rise of the industrial age been separated into 2 different players and the key drivers in the market economy. Now with the Internet there is a trend towards integration again. Consumers start to influence, design and produce what they consume from on-site-spectator-video’s/-pictures shown in television, Youtube and Flickr over Web 2.0 interactive weblogs, wikipedia and video conferences to creating a virtual “reality” in “Second Life”. Outside the Internet desktop publishing is an example of the producer and consumer melting together as is to some extend Lego’s “Mindstorm” that enables customers to download software from Lego's website so that the users can edit and update software as they wish.

http://www.techcrunch.com/2007/06/15/the-rise-of-the-prosumer/