Thursday, October 26, 2006

Business Development Strategy: Can you fulfill your purpose?

Business Development Strategy: Can you create a company or department to fulfill your purpose?
============================================================
Read the full color version of this article.


EXERCISE FOR THE SERIOUS ORGANIZATION BUILDER.
Download an updated (FREE) version of the Business
Builder Outline (PDF file)

============================================================

I take part in a forum , a sort of Master Mind group of business people in several countries who are interested in business development strategy. In a recent teleconference, a well-known business consultant said, "Small businesses fall apart when it comes to strategy."

This led to a discussion of the difference between strategy and tactics.

Is there a really difference between Strategy and Tactics? If yes, how can you apply it to your Business Development Strategy?

I offered my views on the difference -- and how I implemented that difference in my company. Some people said that strategy and tactics are the same. Others said, "It's all semantics -- and who cares anyway!"

Well, semantics is the relationship between words (or symbols) and their intended meanings. In my company, "tactics" and "strategy" have different but specific meanings.

Anyway, concurrent with all that , I was reviewing and updating my own purpose and goals. I noticed that during my brainstorming, I was NOT concerned with either strategy or tactics. I was simply brainstorming my purpose. From my Purpose, I created Goals. That was about it.

But sooner or later , I know that I must create some plans (strategies) to achieve my Purpose and Goals. And I must take some steps (tactics) to make my strategies happen. So, I drew a diagram showing concentric circles, labeled Purpose, Goals, Strategies, and Tactics.
For diagram.

OK. Suppose I wanted to organize a company to fulfill that Purpose and those Goals? Here's an example of how I would arrange the company's Org Chart from the top down. (Not all-possible boxes are shown.)
For diagram.

Now, here's where the fun begins because there is a phenomenon called inheritance (in my organization), where each subordinate inherits one of their manager's Tactical Objectives as his or her Strategic Objective. In a moment, I will give you link to a page where can study how we do that.

Focus on your Contribution and accelerate achievement of your Purpose and business development strategy.

Let me return to the statement , "Small businesses fall apart when it comes to strategy." I would not limit this phenomenon to small businesses. I have seen huge companies where employees don't know the company's purpose, goals, strategies, or business development strategy.

I suppose one could say that employees need only do their jobs. Besides, most people (me included) tend to focus downward and get caught up with struggle and effort (tactics).

However, when we lose sight of our purpose, goals, or strategies, we render ourselves at least partially ineffective in achieving them. Still, we must make sure that tactics are executed.

What would happen if everyone asked , "How can I contribute to the larger Purpose?" We would turn our attention away from our own specialties, skills, and tactics - and advance perfrmance of the whole organization.

Awareness of our contribution turns our attention to the Purpose, where results really count. So, to be the most effective we should focus on outward contributions while performing nitty-gritty tactics. Effective people get the right things done for the right Purpose.
"It is one of the most beautiful compensations of this life that no man can sincerely try to help another without helping himself." -- Ralph Waldo Emerson

OK, here's the link to the page where I discuss why and how each subordinate inherits one of their manager's Tactical Objectives as his or her Strategic Objective.

============================================================
EXERCISE FOR THE SERIOUS ORGANIZATION BUILDER.
Download an updated (FREE) version of the Business
Builder Outline (PDF file)

============================================================

HELP Profitable Venture Tactics help your colleagues.

This eZine relies on subscriber's participation. So, it stands to reason, the more subscribers, the more participation. You can expand the circulation by telling your colleagues about Profitable Venture Tactics.

Your business and management colleagues will thank you for being so thoughtful.

What did you learn today that you found most beneficial?

How will you apply what you have learned at work?

Please email your comments

Best Regards,

Mike Hayden, Principal/Consultant
Your partner in streamlining business.

PS.
If you're not on our P V T Roster, click here PVT sign up (free)


PPS. Click here to sign up for the PVT Forum (free).


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
(c) 2006 Mike Hayden, All rights reserved. You may use
material from the Profitable Venture Tactics eZine in
whole or in part, as long as you include complete
attribution, including live website links and email link.
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Tuesday, October 03, 2006

How to Implement Creativity via Imagineering

How to Implement Creativity via Imagineering
============================================================
To read the full color version of this article,
go to:
http://clicks.aweber.com/z/ct/?pZFEu3SsPLF4P3rlVeBo8w

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Your business associates will appreciate
know1ng about this newsletter. Why not
forward it to them n0w?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Walt Disney Imagineering is the master planning,
creative development, design, engineering,
production, project management and research &
development arm of The Walt Disney Company.

Its talented corps of Imagineers creates -- from
concept initiation through instal!ation -- all
Disney resorts, theme parks and attractions, real
estate developments, regional entertainment
venues and new media projects.

The best source of advice on how to become an
Imagineer is from the Imagineers themselves (The
Disney Magazine, Winter 1995, page 49):

"[Executive designer and longtime Imagineer]
Rolly Crump told me of some advice Walt Disney
had given him: Become a student of life, be
interested in everything. Be a life sponge,
soaking up, observing and recording anything and
everything of interest. Develop an attitude where
you nev'er stop learning."
-- Joe Lanzisero, Senior Concept Designer

"Nev'er pass up the opp0rtunity to see new
things, draw things, build things, talk to
experts and learn new skills. I learned how to
invent machines of all kinds over the years. I've
worked as an auto mechanic, machinist, carpenter,
factory worker, artist, concept engineer and many
other trades. Some were for m0ney and some were
just for fun, but I learned from every one of
them."
-- Bruce S. Johnson, Research and Development

"'Educational Path' doesn't just mean classroom
teaching. I think a lot of my education came from
working at Disneyland. It also came from taking
courses-- psycholinguistics, nuclear biology,
wood shop--seemingly unrelated to what I was
studying. Taking nothing but design courses might
make a good designer, but taking a variety of
courses will make a better Imagineer."
-- David Durham, Show Designer

"...find out everything you can about
everything. If you are an artist--draw, paint,
sculpt and write. If you are a writer--read,
write, paint and sculpt. You nev'er know what
you're capable of doing until you start doing it.
More than anything, work hard and stick with it.
Remember, the only time you will find success
before work is in the dictionary."
-- Kevin Rafferty, Show Writer

"Pick a career you really like--I'm not kidding
about this--even if it is something other people
may tell you is not trendy, 'has no future' or
seems to have a low probability of success, like
art or botany. I think you can only be successful
if you really like what you are doing."
-- Ben Schwegler, Research and Development

"Don't give up...Wander far and wide in your
quest for experience. Don't just limit it to what
you perceive as the world of Disney. Imagineering
is always growing, too. It is always looking for
new realms, styles and possibilities." -- Larry
Nikolai, Show Designer


==================================================
More on Disney's Imagineering.
==================================================
A while back, I received a detailed email with
more information about Disney's Imagineering. I
am sure that you can use these important ideas in
your organization. Here's the whole message
verbatim [bold added].


==================================================
How can YOU use these Creativity Strategies?
==================================================

Mike,

Your recent PVT reference to Disney's
Imagineering reminded me of a seminar I attended,
the content of which may be of interest to your
readers. Robert Dilts, the seminar leader has
made extensive study of successful people and
organizations.

The seminar I attended discussed the Disney
Creativity Strategy. I will outline the subject
for you and your readers in this note and if
there is interest in the subject I would be happy
to fill in some details.

As we all know creativity requires a special
mindset, one where we throw out the rule book and
let our minds fre.e associate. By the same token,
in order for our creations to succeed they are
subject to physical and commercial realities. And
there will always be nay-sayers.

Often when people or organizations try to
create something they fail miserably. Often this
is because people are incongruous about their
creations. On the one had they are trying to
create. On the other hand they are trying to be
realistic. And there is always a voice that is
critical of the process.

These three voices, the creator, the realist,
and the critic all need to be heard, but not at
the same time. According to Dilts, what Disney
did was create three separate environments.
Disney's creative process starts in the
creativity room. In this room no amount of
reality or criticism is allowed.

The second step of the process takes place in
the "realist" room. In this room the ideas that
make it out of the creative room are tested for
the real world. What is the budget? Can it be
done? Do we have the time, resources, etc?

After filtering the ideas through the realist
filters, the process advances to the "critics"
room. This is the room where all the nay-sayers
get to have their voice. This is too expensive,
no one wants cartoons any more, whatever.

For big projects, it is often worthwhile to
cycle the ideas that survive the "critics" room
through the entire process again. Going back into
the creative room allows the creative mindset to
refine and enhance given the constraints of
reality and critics. The revitalized idea then
must pass the reality and critic tests.

After one or more cycles through this system,
the ideas are fresh, will stand the test of
reality and satisfy the critics. The key is to
focus each process. When creating, create. When
being a realist be a realist and, only criticize
when in the critic mode.

You do not necessarily need to separate spaces,
but it will help. Once people realize that a room
or specific space is reserved for a particular
mindset, they will focus their thoughts on the
task at hand.

David S. Hayden is a manufacturing manager,
freelance writer and author of 7 Easy Steps to
CNC Programming ... A Beginner's Guide, and The
PC Easy Reader: Because you are NOT a Dummy or an
Idiot! David can be reached at
http://clicks.aweber.com/z/ct/?dAMu5fnlrrR7aNq2onOseg

Wow Dave, what a fabulous contribution to PVT
readers! Thanks.


==================================================
EXERCISE FOR THE SERIOUS ORGANIZATION BUILDER.
==================================================
1. Add the above Creative Strategy to your
Operations Manual and use it often.

2. Download an updated (FREE) version of the
Business Builder Outline at:
http://clicks.aweber.com/z/ct/?VK4or3LnYzS_6A.MSguQyg


==================================================
HELP Profitable Venture Tactics help your
colleagues.
==================================================

This eZine relies on subscriber's participation.
So, it stands to reason, the more subscribers,
the more participation. You can expand the
circulation by telling your colleagues about
Profitable Venture Tactics.

Your business and management colleagues will
thank you for being so thoughtful.

What did you learn today that you found most
beneficial?

How will you apply what you have learned at
work?


Please email your comments to
http://clicks.aweber.com/z/ct/?LwDNYqrHCxtSjwTgUh.CMQ

Best Regards,

Mike Hayden, Principal/Consultant
Your partner in streamlining business.

PS. If you're not on our P V T Roster, sign up (fre.e) at:
http://clicks.aweber.com/z/ct/?xbw38aXwcd4B108phedaxQ

PPS. To sign up for the PVT Forum, sign up (fre.e) at:
http://clicks.aweber.com/z/ct/?fvNM0OSaXGmX2cmKQgq.sA

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
(c) 2006 Mike Hayden, All rights reserved. You may use
material from the Profitable Venture Tactics eZine in
whole or in part, as long as you include complete
attribution, including live website links and email link.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

Sunday, October 01, 2006

What exactly is a business model?

What exactly is a business model?
============================================================
To read the full color version of this article,
go to:
http://clicks.aweber.com/z/ct/?nx11WeTGk0EHISnXKShVPw

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Your business associates will appreciate
know1ng about this newsletter. Why not
forward it to them n0w?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

CONTENTS:

1. A reader asks...
2. Evolution of a definition...
3. My definition of a business model.
4. Are you stuck with "tribal knowledge?"
5. Help with your franchise manual.


==================================================
1. A reader asks...
==================================================

Dea.r Sirs,

What exactly is a business model? I could not
find a definition in common literature. I am a
student of business economy in Berlin, Germany. I
would be very happy if you could give me an
answer. Thanks and have a nice day.

Kind regards,

A. R., Berlin, Germany


==================================================
2. Evolution of a Definition...
==================================================

This question gives me a chance to review our
basic premises again.

I have heard people use the term "business model"
many ways. Often, people refer to a specific
business process as a business model.

For example, I've heard people call their sal'es
process a business model. Similarly, you could
program a simulation model for your manufacturing
process and call it a business model.

So, let's examine what the American HeritageÆ
Dictionary of the English Language says
(excerpts).

business:

1. a. The occupation, work, or trade in which a
person is engaged [...]
b. A specific occupation or pursuit [...]

2. Commercial, industrial, or professional
dealings [...]

3. A commercial enterprise or establishment [...]

4. [...]

model:

1. A small object, usually built to scale, that
represents in detail another, often lar'ger
object. [Bad news: A "Barbie Doll" model is NOT
built to scale!]

2. A preliminary work or construction that serves
as a plan from which a final product is to be
made[...]

3. A schematic description of a system, theory,
or phenomenon [...]

4. A style or design of an item [...]

5. [...]

Woops! If you combine these two words, you still
don't have a specific definition. So, I will use
my own definition.


==================================================
3. My definition of a business model.
==================================================

Generally, I define a business model as:

A set of plans for building your business,
A structural design for your business,
A "model" business to imitate or emulate,
Documented standards for your business.

So, let's say you were going to build a business.
You've decided you want to build the "McDonalds"
of shoeshine parlors - with parlors all over the
planet!

First, you'd need to design and build your model
business - your franchise prototype.

Your model would define the pattern for all your
shoeshine parlors to follow. It would specify
the services, the color scheme, the logo, the way
your business treats customers, everything - what
to say, what to do, and how to do it.

You would write all this stuff down in Operations
Manuals so you could duplicate the business over
and over.

You could then sell your franchise - your
turn-key shoeshine parlor business - to others
who want to own a business but don't want to
build it from the ground up.

My point is this.

Your model parlor defines how all the other
parlors must work to provide consistent quality,
service, value, etc.

All successful franchises use the "model"
concept, whether they call it that or not. That's
why your order of a Big Mac, chocolate shake,
and fries is exactly the same in Toronto,
Toledo, Topeka, or Timbuktu.

NOTE: The same idea applies to a single facility
business.

If all your business processes are documented, a
single business (big or small) can provide
consistent quality, service, value, etc.

If all your business processes are documented,
your business can provide the customer
extraordinary results using ordinary people.

You don't need to hire prima donnas!

It doesn't matter if your business is a small
sandwich shop, or a giant computer chip maker
like Intel.

My company, Senior Management Services, has more
than 13,000 pages in its Operations Manuals that
define all the business processes.

These Operations Manuals are "living documents"
that we update as times and markets change.

If I hire a new accountant, that person receives
applicable sections of the Operations Manual that
show the business processes necessary to do the
accounting successfully.

Since the work is documented, I don't need to
hire an accounting "expert."


==================================================
4. Are you stuck with "tribal knowledge?"
==================================================

If you have not documented your business model
and business processes, your business operates on
"tribal knowledge," which means your employees
transmit business processes (technology) by
word-of-mouth, from person to person.

Tribal knowledge means that as an employee you
must know the right guy - and he must be willing
to tell you how to do the job. (Good Luck!)

Why?

Some people keep the technology of their position
se'cret, calling it "job security." Ultimately,
this method will keep your company stuck.

Your company will be built around personalities,
instead of a working business model.

You should not give someone a promotion or raise
until they document their job. If they can't be
replaced, they're not promotable. And you should
document this policy in your Operations Manuals.

Long answer to a short question...


==================================================
5. Help with your franchise manual.
==================================================

Last week, a reader from LA called for assistance
with developing a franchise manual for some sort
of childcare facility. (A business I wouldn't
touch with a frozen rope!)

He wanted his manual to be 80-100 pages. He has
already opened five facilities in the Los Angeles
area.

Meanwhile, he must chase around LA everyday to
keep the businesses up and running. That's no way
to live!

Like "business model," there's no specific
definition for a "franchise manual." After some
discussion, I agreed to create an outline they
could use to get
started. (Pro Bono.)

In our discussion, I discovered that his new
franchise operation is not organized in a way
that will sustain continued growth.

So, I created a 7-page outline for him. My
outline emphasizes organizational strategy, which
amounts to a strategy for division of labor.

The same organizational strategy could be used
for a single-facility business.

I use a "franchise" model because franchises have
a 90+% SUCCESS rate, while typical startups have
a 90+% FAILURE rate.

(In Silicon Valley, I've seen hundreds, if not
thousands of companies fail - many due to ad-lib,
power-trip organizational strategies.)

The outline is simply that - an outline. However,
today I added an exercise for serious students of
business development.

You can download a copy of this franchise manual
outline at:

http://clicks.aweber.com/z/ct/?DJv.FaM6Jxy_cuVNUrBg8Q

A complete set of Operations Manuals for every
position on an Org Chart can grow to hundreds or
thousands of pages.


==================================================
Today's managers suffer increasing pressure...
==================================================

Most managers these days suffer increasing
pressure to slash costs and sell more with fewer
people. I work with managers and executives to
relieve this pressure of having to sell more. I
like to say, "We take the pressure off!"

Over two decades, SMS has saved time, mOney, and
effort for scores of companies in Silicon Valley
(and from Toronto to Hong Kong)! This means you
benefit from techniques proven successful on over
300 projects.

I can help.

You decide.

Don't let the lack of correct psychographic
positioning stunt the growth of your business!


==================================================
HELP Profitable Venture Tactics help your
colleagues.
==================================================

This eZine relies on subscriber's participation.
So, it stands to reason, the more subscribers,
the more participation. You can expand the
circulation by telling your colleagues about
Profitable Venture Tactics.

Your business and management colleagues will
thank you for being so thoughtful.

What did you learn today that you found most
beneficial?

How will you apply what you have learned at
work?


Please email your comments to
http://clicks.aweber.com/z/ct/?PFjqMYdmTJbLIQG7VR7ZcA

Best Regards,

Mike Hayden, Principal/Consultant
Your partner in streamlining business.

PS. If you're not on our P V T Roster, sign up (fr#e) at:
http://clicks.aweber.com/z/ct/?7MsBpX1H1MURlHhlq3ZeYw

PPS. To sign up for the PVT Forum, sign up (fr#e) at:
http://clicks.aweber.com/z/ct/?LHExfIew4jyOAzqmBCbfYA

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
(c) 2006 Mike Hayden, All rights reserved. You may use
material from the Profitable Venture Tactics eZine in
whole or in part, as long as you include complete
attribution, including live website links and email link.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * *