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The Three Percent Solution - Part 2

Written by: Jeremy Heighton

Article Overview: In our last article, we looked at strategic actions around your efforts. Today we will look at intelligent and strategic ways to work your business to reduce competitor advantage. This article highlights three strategies that will increase your competitive advantage in your marketplace: developing strong core structure, targeting your advertising, and strategically networking.

The Three Percent Solution - Part 2

The 3% Solution Part Two: Smart Structure – Strategic action regarding competition.

In our last article, we looked at strategic actions around your efforts. Today we will look at intelligent and strategic ways to work your business to reduce competitor advantage. This article highlights three strategies that will increase your competitive advantage in your marketplace: developing strong core structure, targeting your advertising, and strategically networking.

Core Structure:

One of our larger clients, a national retail chain, has been hit hard by the current economy, with sales in some stores declining up to 50%. In such times, workforce adjustments are a reality. Therefore, with our guidance the client streamlined its’ workforce. The next step we took was to look at what we call the “core structure” of the organization. We started with a SWOT (strength, weakness, opportunity, threats) analysis for the organization. We used the collected information to develop and refine their core structure. The strong core structure is important because it provides clarity to both staff and clients about your organizations’ purpose, direction and culture. Core structure contains the following elements:

Ø The vision statement

Ø The mission statement

Ø Operating principles

Ø Goals and objectives

Ø Processes and procedures

Ø Policies

Ø And performance management (including leadership skills)

I often say a leader without a vision is on a pleasant walk to nowhere. Your vision provides clarity about your business’s future state of reality. It says who you will become in the future. In other words, “what would this company look like when it is fully matured?”

Your mission tells clients what you do or offer each day that adds or delivers value to them. It tells them why they should come to you over your competitor.

Your businesses’ operating principles are supporting statements that create a clear understanding of how you do business. Topics for these statements usually include our values, our relationships, excellence in service etc.

Your teams’ goals and objectives are central to any forward movement. If you have spent the last few years in hover mode collecting cash, congratulations! Now, it is time to start thinking about where you are going and how you are going to get there.

Your processes and/or procedures are the methods or steps required to do a task or responsibility in your business. Defined processes are important because they allow you to train and direct your entire team in consistent manner, enhancing client expectations and streamlining the service they will receive.

Your policies are the glue of your organization. If you have an effective set of policies, they should be dog-eared and worn by constant use. A poor set of policies sits on a shelf to be used only in emergency. Policies should be reviewed often and updated regularly. A policy is, it is a context statement that identifies the general aspect of the task, the process or procedures that are required, authority for the task, and a consequence should the task not be done correctly.

Performance management encompasses what you do to direct, disciple and delegate to your staff, as well as evaluations, and social interactions in your workplace. Without performance management, your team can feel unfulfilled and directionless. Managing performance will be the topic of a future article.

All of these elements together create a clear understanding on the part of each employee of where you are going, what it will look like once you get there, what they are expected to do to help you get there and how they and your clients will be treated, each day.

Core structure is the starting point for developing a strong business identity. For a graphic example of what Core Structure looks like, visit the resources section of our website.

Target your advertising

Once you have your internal house in order, start looking at how you work your business outside of the walls of your location. I know from experience that there are a lot of slick salesmen out there trying to sell newspaper, radio, web-based and other advertisements. Be cautious of the quick sale/quick profit pitch of a quick-buck sales rep. Before you ever advertise, consider the following:

1) What does my target (ideal) client read, watch or do in their spare time?

2) In the past when I have advertised, what method has brought me the most traffic?

3) What is my target audience, and how do I reach them directly?

You should only engage your advertising engine once you have considered how to effectively reach your client. If you are currently advertising, remember you are the master of your account. Regularly review the traffic you receive from each advertising medium and make changes when necessary.

Strategic Networking

Once you have your advertising in check, start looking at other methods of marketing your business, beyond conventional means. For example, do you belong to networking groups, chambers, professional organizations, associations, charities, social networks? All of these are effective tools for marketing your business. However, the challenge is to pick the best one or two that seem to offer you the highest return on investment (time). When my wife, Jennifer, and I started WOW, we were sucked into the vortex of “networking groups.” At one time we were involved in almost a dozen groups. In fact, we often didn’t have time to work in our business because we were so busy “working our business”. Jennifer is now down to two groups and I have also chosen two. We manage our networking to give us the best expose to our preferred clients. When you engage in a group, think about the same types of questions you would ask when advertising, because networking is advertising. Make sure its’ effective and has the potential to yield results. If not, redirect your efforts and time somewhere where it will support your long term success.

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Article Tags: ca lang, competitive advantage, competitor, core structure, economy, font style, guidance, marketplace, nbsp, retail chain, smart structure, span style, style font, workforce



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