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2009 Health Care Reform Initiative Lesson #3: Without a Clear Understanding of the Problems to be Solved, and Requirements, Development will Build Solutions Because They Can and Not Because They Should!

Where a number of entrepreneurs make a costly mistake is in jumping into a new product launch and making a product launch checklist  without spending an adequate amount of time gaining an intimate market knowledge and building strategy. When this occurs, developers and engineers (Representatives) build things because they can not because they should.

How do we end up with a 1,000 page bill? ( few have read, and fewer understand?) Or an ipod station and toilet paper holder? Or a laptop that smells?…. ( by design)

Without a clear understanding of the problem you want to solve, and clear requirements and not understanding who you are solving them for, you will build stuff.

Developers are creative problem solvers. They want to be given problems and requirements. They go nuts if you also tell them how to solve it. Just as salespeople hate it when accounting tries to tell them how to sell more.

The inherent problem though lays in the fact developers also see problems that are real to them, that may not be market problems. So they have their “wish list” of solutions they want to introduce.

If you lack a clear definition of the problems you want to solve and the requirements needed and just “throw a challenge over the wall” two things will happen;

1. Development will create a perceived list of problems and prioritize them themselves.

2. Without a clear direction, they will build what they always wanted to build and not necessarily what the market needs or wants.

What happens next is even more dangerous. So you have shared your “big hairy audacious goal” with your market: “A Health Care reform bill before the August break”.

Not having a connection to the problems your team will connect to something…so the August goal is clear, measureable and written so they rally to meet that goal.

The achievement of the goal date becomes more important than solving the unresolved market problem.

When this occurs your team tunes out the market and its needs and tunes into the leaders goal ( and often ego).

Teams aligned around the wrong goal “tell and sell” versus “teach and share the problems they solved” and markets often rebel.

Buyers like to buy; they do not like to be sold.

With the power of social media, and the lack of alignment to the correct goal, a solution can launch and die within hours.

Market leaders understand the value in spending the time upfront, clearly defining the problem(s) they want to solve and developing requirements that set their developers up to win, and ultimately add value to the bottom line of the organization.

Market Losers are so focused on a delivery goal they Haste, and they waste. Focus on the wrong goal results in their team members thrashing around, starting and stopping and not able to develop revolutionary solutions that the market willing buys.

 

How about your organization….

 

Does your team throw things over the wall?

 

Do your developers ask for more information and the prioritization of requirements, or do they assume they know.

 

Has your company launched something because you could and not because you should? ….How’s that working for you?

Technorati Tags: requirements,market leader,market loser,throwing things over the wall,marketing,product development,launch,new product launch,build products your market wants to buy

2009 Health Care Reform Initiative Lesson #2: Without a Clear Definition of the Problem You Want to Solve, you cannot write good requirements for your development team

 

Without a clear understanding of the problem(s) you want to solve, how can you write the requirements needed in the solution your development team creates? They will assume the problems and will try solve those with  assumed requirements as facts. The farther the requirements move from actual market problems that you have agreed you need solved, the farther the final product solution will be from something that resonates in your marketplace.

In this case congress was asked to create a Health Care Reform bill with the lack of a clear understanding of problems they were to solve and my guess is they therefore did not have prioritized requirements that clearly explain what the final solution must do, and for whom. Couple this with being given an aggressive product launch date for your solution and you will experience what my father used to call: Haste makes waste. ( sound familiar, I have faced this many times)

Like congress, business owners use their gut and intuition at a time they should be gaining an intimate knowledge of their market, their buyers, buying process and buying criteria.

I am confident everyone “worked hard”, but I am also convinced without a clear understanding of problems to be solved they could not have “worked smart”.

What we are now experiencing with the 2009 Health Care Reform Initiative is symptomatic of leaders lacking market intelligence and a clear understanding of the problem(s) they are to solve. We see entrepreneurs with a vision boldly launching their solution into their markets only to find what they “thought” was a brilliant idea( their wife and golf buddies thought so) does not resonate with their customers and potential buyers. As I wrote in my post: Nail it before you scale it, you must completely solve the identified problems before you scale them. Scaling products that are not complete solutions only results in a lack of understanding among your customers and is often perceived as self serving, and an inside-out focused Market Loser, versus a market serving , Market Leader.. When this occurs you break trust.

Once trust is broken with buyers in your marketplace they are never won back 100%, and it will cost you dearly.

When you lack a clear definition of the problems you wish to solve you can not write requirements that are of value to the development team.

Without clear requirements, your development team will work very hard to solve the assumed problems they think you want solved and the perceived needs you “throw over the wall”. We not only need a list of the problems and defined requirements but development would also value the prioritization of those requirements.

Without open and clear communication development will decide the prioritization, again further drifting form market problems and solutions to urgent and pervasive needs.

One symptom of this is development spending more time defending what they built versus building new solutions your market wants to buy.

How about your organization….

 

Are you asking your development and or engineering to develop solutions without a clear understanding of the problem they are setting out to solve?

 

Does your development team have requirements or are they left to guess and assume?

 

Do you find your development team working “hard” or “smart”? Why or why not?

 

Do you find the quality of problem definition and the prioritization of requirements has an inverse relationship to the amount of time given for the solution to be launch?

Technorati Tags: requirements,problems,market problems,solve market rpoblems,launch,new product launch,development,market leader,market loser

2009 Health Care Reform Initiative Lesson #1: Without a Clear Definition of the Problem You Want to Solve, You Will Experience “Scope Creep” and Your Launch Plan Will Fail

Without a clear definition of the problem(s) you solve with your new product or service you will experience scope creep and your team will thrash around. When you thrash around you have a number of starts and stops without completely solving each individual initiative. Not only is this behavior ineffective but it is costly and often dangerous.

Fundamentally I agree, if what the news media tells us is true regarding; the number of uninsured Americans, the rising costs of care, the rising costs of caring for uninsured Americans,… that there is a problem that needs to be solved. However I do not understand the problem, or problems we are trying to solve with the 2009 Health Care Reform Initiative, nor how the over 1,000 page proposal solves them.

I see this frequently with entrepreneurs. They discover what they perceive to be an unresolved market problem and the solution is crystal clear (to them) so they launch. They take out 2nd mortgages, they cash in their 401k, and they ask family and friends for support. (Money) They share their brilliant idea with their buddies on the golf course to validate their idea and everyone says… ”brilliant idea”. However very quickly they learn an expensive lesson when they expect (and have created the support) to sell 60,000 units and only sell 2.

Without a clear definition of the Problem you solve your New Product Launch Plan will fail.

Instead of clearly defining the problem, quantifying the need, making sure people want and will pay money to solve that problem they broaden their scope. Now they have a number of messages floating in their market that are Luke warm at best and none clearly articulate how you solve any problems for buyers in your marketplace. None are connecting with anyone.

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“Dumb and Dumber, FOX and Warner and how they are Planning on Delaying Deliveries to Red Box

Lloyd and Harry reach Aspen on Scooter in Dumb and Dumber

FOX and Warner Bros delaying new movie releases to Red Box and other kiosk vendors is like watching a new release of Dumb and Dumber.

In the Wall Street Journal article: Warner Bros. aims to lift DVD sales, will delay arrival at rental kiosks. They discuss how they plan to delay new releases to DVD rental kiosks.

The movie studios are concerned about their DVD revenues.

The market is not only speaking, but screaming how they are raving fans of DVD rentals Kiosks like Red Box.

The current big customers like Blockbuster and others are posting over 22% losses in revenues when kiosks like Red Box are showing consistent and impressive gains. Call me crazy… but your market is speaking guys…can you hear me now? Red Box Kiosks are described as; “The hottest thing in movie rentals is as old as the Coke machine — and just as red.”Their CEO Gregg Kaplan said “We are incredibly proud to achieve 200 million rentals and 10,000 locations nationwide.”

The studios have a choice, they can try to “control” the market, the buyers, or they need to intimately understand the market, buyers and needs and not only embrace the new ways consumers wish to consume content but enable it.

Thirteen years of my work experience was serving the movie distribution, rental and mass retail. How Warner and Fox are behaving is no different than how they all were behaving worried that this new thing called “movie rental stores “would erode their box office revenues in the mid 1980”s.

Market losers try to control the market and they protected their current cash cows while ignoring the consumer’s voice. They ignore the bright lights of growth and change trying to tightly hold on to past business models their markets no longer value.

Market leaders spend time getting to know their market and they quickly understand consumers who rent movies also go to movie theaters and some even buy movies and collect them.

When we rent content it is about wanting entertainment in a convenient and cost effective way for me as a consumer. You can try to control us, however when you do we find other ways to solve our needs and often they are much more severe to your bottom line. Besides, how long will it be before one of your competing studios blinks? Didn’t we live this same scenario “back in the day” And what happened…aggressive smaller studios emerged understanding the needs of consumers and and one of you big guys blinked. Some of you held your ground (more stubborn and stupid, driven by your own needs and egos instead of being strategic marketers) and how did that work for you back then? I remember, do you?

I can remember the 28,000 independent video stores and large movie distributors placing pressure on the studios to not ship new video releases directly to this 14 store chain in Texas called Blockbuster. At the time they were buying through distributors like Big State, Commtron, Ingram, and others. Well that little chain of 14 video rental stores quickly became a market leader.

I am a huge fan of Red Box.

They solve problems for me;

· I want to rent a DVD fast, I like the experience

· I want to rent a DVD and do my grocery shopping in one trip, in one location, one stop ( I am already late for dinner)

· I do not want to pay what Blockbuster charges , no late fees …but still a lot more than $1.00

· I only want the movie for one night

· I don’t want to have to join Net flicks or others and pre plan my month of movie viewing

· At a $1.00 rental, I feel like I receive a value , if I like it I go to Wal Mart and buy it

· I do not want to have to “shop” at a movie rental store only to find out they have all the new releases checked out

· I do not want to pay more for a new release than an older movie

· I do not want to buy movies through my cable provider as they are already raping me with what they charge

· The box office theaters are increasing their prices ( again, feels like they are thinking about their own needs and not mine)

So what are you going to do Dumb and Dumber? Are you going to repeat the past and focus on your needs or are you going to understand the market, it’s consumers and our changing needs and not only enable us to enjoy movie entertainment, but who knows you may even find new products and serves that solve our unresolved problems that Red Box fails to solve?

When I wrote my post : Attention leaders: Don’t look now but your lack of market knowledge is showing… I was talking about companies like you that have lost touch with their markets and they guess , assume, and use their gut and intuitions as their way of hitting their goals. They make inside-out versus market -in decisions and their shareholder values decline rapidly.

Your choice…focus on your internal needs and try to control the market… Or gain an intimate knowledge of your market today and it’s consumers like me and build products and service delivery systems that serve me and solve my unresolved problems.

Oh I can hear the movie exec’s now…”easy for you to say, we have billions at stake here.” Well you are right, you do. But you will eventually supply the kiosk companies with new releases at the same time as others. While you figure it out, Red Box will go to a mass retail store on the day of the new release and buy them. While you figure this out you will remove profit from your movie distributors.

So the question is how long do you want to be a “buggy whip” manufacturer saying this horseless carriage is a fad? Or, do you embrace your market, its changes and evolve into a new company that meets our needs today and into the future?

Maybe you develop a “imovies” since my kids seem to download their favorite DVD’s onto Apple laptops? The only hassle is the download from the disc. Not a big deal, but maybe you take the time to understand why they are doing this, the problem it solves for them and solve it brillantly?

We are all watching…

How about your company….

Are you trying to control your market? How’s that working for you?

Are you trying to control your vendors trying to slow down a new service model in your industry?

Are you the buggy whip manufacturer saying this new horseless carriage is a fad and will never last?

Or are you studying your market, your consumers and intimately understanding what and why they do what they do?

All is not lost by the way as some forward thinking buggy whip manufactures found as they learned to make leather seating for these horseless carriages.

Trying to control a market is foolish and expensive. Understand and embrace your market and become a market leader, not a market loser.

Technorati Tags: FOX,Warner Bros.,Red Box,Market leadership,Market leader,market loser,Blockbuster Video,Marketing,market change

Mentor Moment #9: Insight without Action…a waste of time and money

As a leader in your business are you constantly challenging what is believed to be the truth in hopes of identifying unmet market needs and roadblocks to servicing your market? Or, are you busy brainwashing your team with inside out beliefs that are only true in the recesses of your gut and intuition?

One of my favorite scenes from the movies came from A few good Men, the famous “you can’t handle the truth scene.” In this passionate exchange Jack Nicholson states “you can’t handle the truth!” This scene resonates with me as I have found myself in a position far too often when I have been asked to help take a company and its team to the next level. The first thing I must do is help the team gain truth and market loser teams wish to debate the findings.

My first step always is get in your market, deep in your market,with customers, and non customers alike.

I am often referred to as a Heretic as my loyalty is not to the understood norms created inside your building, but to gaining true market knowledge to drive decisions that increase shareholder value. we will be asking a lot of open ended questions with the focus on understanding the truth. I highly recommend every business leader make it a point to intimately understand the market of today as we redefine “normal”. Once we gain current market knowledge, we undertake what often takes the most energy;the Detox of the leadership team from truths created in boardrooms and often in the “gut” of their leader.

Leaders must know what they know, and know what they do not know. You have an obligation to those you serve to gain market knowledge to insure the strategies you implement add the maximum value.

So how about you and your company….

Do you have a clear understanding of the market truth(s) of today?

Are you assuming the truths developed inside your boardroom are true? Or are you a fellow heretic constantly checking in on the market you serve to gain an intimate knowledge of its unresolved problems?

As a leader, are you playing it safe agreeing with the market (Loser) assumptions? Or, are you gathering the truth and sharing it with your fellow leaders? (market leader)

And now the big question…can your team handle the truth?

If you can’t handle the truth don’t ask for my help, as it’s a waste of my time and your money.

Technorati Tags: market knowledge,truth,market leadership,market loser,redefine normal,inside out,strategy

Five questions a radio preacher asks to see if your business is heading in the wrong direction

Each day I listen to a Christian radio station as I drive to lunch. It’s not unusual that a preacher is sharing and often I find myself parking my car and taking notes. Yesterday was no exception as Chuck Swindoll was sharing five questions to know if we as believers are headed in the wrong direction.

As I quickly grabbed some take out and returned to the office I thought how the wisdom he shared could help businesses who may be headed in the wrong direction. Below are his five questions shaped to apply to you and your business.

  1. Do you find yourself fighting greater battles within than without?
  2. Is there more attention on one versus the team? (kingdom building)
  3. Do you feel you don’t need the Lord’s help in your business?
  4. Are criticisms of your leadership and your business quickly dismissed versus taken seriously and respected?
  5. Are consequences of sin are no longer feared? ( as a reminder, the definition of sin is “missing the mark”)

For a preacher who jokingly said he has a “face for radio” I find myself feeling very thankful for his sharing the wisdom found in the Bible. I find the Bible is an amazing resource of wisdom that can be applied instantly to circumstances we face as leaders in our business.

So how did you answer the above the above?

How is your team reacting to the challenges of today? Do they need to just STOP or are they “blame-storming?”

Do you find team members (you?) worried about how an individual may look versus the performance of your team?

Are you your own God? Is your ego preventing you from asking for the lord to bless you, your business, and your customers? (After all, EGO does stand for: Edging God Out) Are you counting on your gut and intuition?

How well does your senior leaders accept criticism and new ideas? How about you? Do you need to hire a Heretic?

Are you allowing bad behaviors that are not consistent with your team’s values? Are you allowing an “end justify the means” mentality?

All of this free business advice from the Bible and radio preacher? You bet!

You may want to check out his web site at Insight for Living, …who knows you too may find yourself parked in your car and taking notes at lunch time.

$84 million Greeting Card new product idea for Father’s day? …not so fast

Father’s day is approaching and what do you get the guy who seems to have everything? For my dad it’s pretty easy, although he lives 2,000 miles away we still talk each week and a couple of ideas quickly come to mind. He’s a big fan of the television show 24, and he likes to golf so I went to the store and I quickly found episode three of 24, a golf shirt, and a card that connected to a memory of when he would say” I’m not sleeping, I am just resting my eyes”.

My wife however struggles each year with  father’s day as her parents were divorced when she was very young and she has little if any communication with her dad. Each year she gets frustrated while shopping for a card as they all say things like; “to the best dad in the world”, or “for someone who was always there”. So I offered to find a card for her to send to her dad this year. (How hard could it be?Just go to Target and buy one right?)

I started looking at funny cards, yet they referenced time together. I looked at serious cards; however they expressed a deep message that did not seem appropriate. (Why did I volunteer for this mission?) This was becoming very difficult to find a card that basically says ; “Happy father’s day, although you choose not to be a part of my life I love you unconditionally and I am thinking of you this day, and although you forgot my last birthday, I want to thank you for helping to bring me into this world and it’s never too late to build a relationship”.

Having launched a number of new products over the years, my mind started racing…this is an unresolved market problem: Cards for children who wish to connect with their parents who are absent from their lives. ( I am reminded of the scene from the movie Night Shift when the actor gets out his tape recorder and says…I’m an idea man, for example; stop the garbage problem by having edible paper..yes, I have a tape recorder too)

Then that familiar little voice in my head said; I should start a company to fix this problem…..

Not so fast… does it pass the 3 step acid test discussed in the book Tuned In? Is the problem; urgent, pervasive, and are people willing to pay to have it solved?

Is this an Urgent problem? I would say yes every father’s day, Mother’s day, birthday, and holiday.

Is it pervasive, do a number of people have this problem? Again, I quickly say “yes” as this is a problem for my wife.( and therefore becomes a problem for me) I need to be sure however before I take funds from my home equity it will work. Very quickly I start extrapolating( justifying why I should do this); the divorce rate in the US is around 50%, so this problem could touch ½ the US population. So I remember reading somewhere the US population is around 290 million so ½ would be a potential market size of 145 million, sounds good so far. Not all parents that are divorced are absent from their children’s lives. However I do hear quite a bit in the news about deadbeat dads…so let’s assume 10% of divorced parents are absent from their child’s lives…so the market size is now around 14 million per occurrence, and there are at least three occurrences per year per person

Are people willing to pay to solve this problem? I would say yes again. After all I would pay more than the average cost of a card if it perfectly solved this problem, and I would not have to search so hard for the right card.

So we have an unresolved market problem, as far as I can tell. We have children of absentee parents who wish to communicate with them on special days and holidays. So let’s try to size this opportunity ;(three times per year kids need cards ) X(my market size of 14 million) X (retail price of the card, say $3.00). This would be a nice $84 million business right? Well no, my guess is the gross profit margin Target realizes on greeting cards is around 50%, so now the opportunity is $42 million.I need to write a business plan, go get funding and launch this puppy before anyone else thinks of it….again,maybe.

The above scenario happens to me mentally each day, many times per day as I find unresolved problems. The problems feel urgent, pervasive, and I am willing to pay to solve them…and that’s where most people blow it, because like me you assume and guess without market data.You may very well be willing to pay to solve this problem with a perfect solution designed just for this specific niche, however at this point you really do not know if others would be willing to pay to solve this problem. You really do not know if others feel this problem is as urgent to them, and therefore it may not be nearly as pervasive as you once thought. It may very well be an awesome idea and because we know this problem intimately we would be the perfect person to solve it.

I have helped a number of startups who saw unresolved market problems that were so crystal clear they felt they would be a fool not to launch a solution to solve this problem before someone else did. About 6-8 months into missing their positive cash flow projections they hire me to “fix it”. Sometimes they find problems in markets they know very well. Most of the new companies launched today were started by someone who was working for someone else at the time they discovered a problem. However some entrepreneurs fall into a trap; I’m a pretty smart guy, I have done ——-, and ——-, and I believe I can turn this into a nice business quickly that I can then sell to a market leader for millions, buy matching Bentley’s and never have a care in the world again…right? Again, Maybe…

I did a little research not long ago and found that at any given time 6 out of 10 US adults are thinking about starting their own business. The disturbing statistic was the majority, between 80-90% who do launch a new business fail within 18 months. Why? They launch without a thorough understanding of the market, they lack a business plan, and grossly underestimate the cash needed to build and grow the business.Of those that fail, 50% declare bankruptcy.

There are a number of great on line tools for how to write a business plan. You can Google “how to write a business plan” and you will find sites like; My own Business, and many others. Before anyone takes equity out of their home, or borrows from their 401K or loved ones I highly recommend you do research and write a business plan. When you write a plan, you will be forced to answer hard questions, and you will need to go into the market and do research and not just rely on your gut and mental extrapolations of market size. Based on my experience,when you estimate the cost to start your business pad it by +25%, and when you estimate your timeframe to positive cash flow add 8 months to your forecast. You still in the game?

You may vary well have the next great new product, and when you complete market research and build a business plan you may validate that opportunity. Once the plan is written show it to at least 5 trusted advisors and ask their opinion of the opportunity. Ask them if they would loan you the money to start this business and listen to what they say.(many will say it’s a great idea as to not hurt your feelings, however the true test is would they back it with their checkbook?) If these advisors say you have a winner, meet with a number of people who would be representative of your buyer persona and ask their opinion of your solution. What you must determine is ;does your solution perfectly solve their problem? In addition, you will be asked to create a SWOT analysis for your plan. In doing so make sure and review competitors in the space, as well as competitors adjacent to the space you wish to participate in. In this case I would be up against American Greeting and Hallmark to name a few. Far too often entrepreneurs launch great solutions to unresolved market problems but they underestimate competitors already in the space, or adjacent to the space.

If you find an unresolved market problem, and you find the problem to be pervasive and buyers are willing to pay to solve it, do yourself a favor and do some additional research and write a business plan.

Oh, and as for my hunt that became a three hour quest to find a father’s day card for my father in law…the card pictured worked just fine. Was it a perfect solution…no, but it will do.

Do you need to “Detox“ your business before it can hit your goals?

About twelve weeks ago I had a wakeup call. I had my regular check up with my doctor and he informed me I needed to have a prescription for high blood pressure. It seems my blood pressure was dangerously high and if not addressed could lead to a stroke or heart attack. I am not a big fan of taking medication that addresses the symptom and not the cause, so I asked the doctor what I should do. He reviewed my folder and looked me square in the eye and said “you need to lose weight, I don’t know if you realize it but over the last seven years you have gained over 50 lbs…loosing this weight would be a great start.” What the doctor did not know was that I was working out three times per week but just couldn’t lose the weight this time.

A friend had a noticeable weight loss (70lbs) recently so I asked Dave what was his secret? Without hesitation he said “Medifast” and he gave me the phone number of their local office. When I met the counselor she started by asking me a number of questions, taking my blood pressure and handing me a prescription for blood work I needed to have done at a local clinic. The counselor then explained the weight loss process will begin with a week of “detox” .

Instantly my mind raced and I became apprehensive and anxious. I thought of the infomercials from television about detox programs and how John Wayne was supposed to have had over 20lbs of undigested toxins in his system when he died. I started to worry about the process and how uncomfortable it probably would be.

The counselor obviously has seen the look I now had on my face before, so she started to educate me about how our bodies work. Our bodies were designed to be amazing efficient machines. We are designed to consume food that contains essential vitamins and minerals to keep us alive and full of energy. What happens through poor food choices, stress, and bad lifestyle choices is we accumulate toxins over time. Toxins significantly impair the efficiency our bodies were meant to operate in. Toxins surround fat cells and if left unchecked, prevent our bodies from metabolizing stored fat for energy. One result is we consume more food and do not burn the stored energy reserves as we were designed, and coupled with inactivity we gain weight.

When we detox our bodies we help clean out accumulated toxins and bring our bodies back to the efficiency we were designed for. In addition to now accessing fat cells for energy, your body will absorb vitamins and nutrients as is was designed and need to eat less.

Since starting the program with the m’lis suppliments eight weeks ago, I have lost just over 30 lbs and I have noticeably more energy, I’m wearing clothes I have not worn in years, and most importantly I no longer need to have a prescription for high blood pressure. The detox process prepared me, my body, to achieve my desired goals.

As I went through the week of detox it made me reflect how a number of the businesses I have helped over the years needed to detox before I could truly help them. Businesses accumulate toxins and by not actively participating in their markets they lose their effectiveness and become sluggish. They find their gut and intuition is not producing desired results. As I reflect about the process I have used to help companies over the years I noticed they often followed a predictable series of steps;

1. They ask for help, something is off; a missed goal, poor performance of key indicators…, they learn what it would take in commitment, time, cost, and they postpone or choose not to change…live with it hoping the problem, the pain, goes away on its own

2. Wake up call, something happens; having to use their line of credit to make payroll, they lose a key account (or two), a competitor launches an amazing new product that obsoletes their cash cow, poor EBITDA, or the board gives the leaders a timeline for improvement.

3. They commit to change

4. We go into their market, find out why people do business with them, find out why others do not, and gain the markets’ perception of what this company does and does not do.

5. Discover market problems no one is solving

6. If the business has a solution that solves unresolved problems, reposition it in the markets’ voice based on the problems this product or solution solves

 

7. Identify roadblocks, how easy or hard is it for your clients to do business with you? Identify the “flaming hoops “customers need to jump through, and tear them down

8. Detox- the entire team, flush all the old , dated , beliefs and clean the business from within of all the roadblocks preventing the efficient absorption of revenues and profits. One area that grows fat and becomes less effective is often marketing. I discussed this in my post; “Skubala” Marketing. Sometimes it is actually team members we need to deter as Art Petty identified in his blog post Detoxing Your Team.

9. Create new product solutions if your current offering does not solve the unresolved problems you discover

10. Collect testimonials of clients, in their words ( do not “marcom” their words) that describe the problem they had and how your product solved it

11. Tell, tell everyone in the market the problems you solve

12. Start absorbing the new revenues of a healthy business

13. Plan to detox your business frequently as markets change

If your business is not healthy today, you are not alone. The current economic condition was a wakeup call for a number of businesses. As Kristen Zhivago identifies in her blog post Bravery and your Revenue, it takes a brave CEO to operate in the “beyond the call” mode. For a number of teams they learned their business was not as healthy as it outwardly appeared in good economic times, times when the phone just seemed to ring and they were in call mode. Good economic times do not push us, stress us, and test the overall health of our business. Just as a stress test or a blood pressure cuff can provide an early warning to a potentially fatal problem in the future, tough economic conditions show us the weak points, the kinks in our corporate armor that must be improved.

The majority of the teams I have worked with needed to detox, flush their old beliefs, and inside out perceptions ,processes, and their “company speak” prior to being positioned for explosive growth. The most common way of detoxing your business is to seek the truth. You find truth in your market asking questions , not sitting around board tables starting sentences with; “I think” or my personal favorite “ when I ran _____( you fill in the blank) 10 years ago we …..” That probably worked great 10 years ago and that is why you now hold a leadership role. But guess what, the market has changed! Once the business completes the detox process they are positioned to become healthy, and ultimately a market leader in their space.

If you cheat and try to cut corners, not flush all the toxins from your business you will only postpone your future profits and shareholder value. If you don’t flush the dated perceptions, non contributing team members, policies and procedures that serve your team, but feel like flaming hoops to jump through for your customers, your business will remain inefficient, ineffective and could, if left untreated …die.

So do me a favor, start detoxing your business today and your team will become more efficient, effective and ultimately a market leader. Market leaders have higher gross profits, grow 2X that of competitors, have higher morale, and valued higher.

Most competitors will choose to be lazy and keep carrying around the dead weight of old assumptions that suck the life out of their growth, profitability, and their market value as an organization.

A couple of questions for you:

What Toxins has your business accumulated over the years?

What symptoms have you seen over the last nine months that were a wakeup call for you and your team?

If you choose not to detox, what is the reason? What are you afraid of?

Do you have team members that need to be detoxed?

How healthy is your bottom line?

As CEO Should you give yourself a “pink slip?”

At a recent T.I.E. event, a venture capital firm partner said “ by the time you change CEO’s, you are already twelve months late.“As I discussed in is your business is bleeding , if  your business is in trouble it is one, or a combination of three back to basics business triage areas; product, market or team.. Sometimes it may even be the team member titled CEO. So why do we have such a difficult time with this? Is it ego, Pride? A great post by Kristin Zhivago tilted ; Revenue and your charactor: the high cost of Pride touches on this as it relates to listening to cutomer needs verse thinking you know all the answers.I have found two types of CEO’s emerge over time in the life of a business; the entrepreneurial founder and the professional  business builder. Both skills are valuable and very important and rarely does one individual master both.

Entrepreneurial leader

This CEO has a technical expertise in their space, and are visionaries, “big picture leaders”. They are passionately focused on solving unresolved market problems. They see problems as opportunities. Their quest is the difference their work makes in the lives of others in their market. They are inventors who can not rest until their product or service perfectly solves the problem.

Business builder

This CEO knows how to scale a business. They know how to grow markets and their people. They measure what matters and have a strong network . They are balanced team builders that create a sustainable and repeatable growth.They are connected to their market, but may lack the technical expertise to solve unresolved market problems.

So how do you know what kind of CEO is needed by your business?

What stage is your business in today?

What type of CEO does your team need at this stage of the organizations growth?

Honestly, are you that person?

There is nothing worse than providing the wrong skill set and leadership style given the lifecycle of your business. I am not saying to actually “give yourself a pink slip”, but a true leader knows his/her strengths that add value, and their weaknesses .Leaders know the needs of their team and market. If your business has grown to a point with your entrepreneurial flair, great, but rarely will this type of leader scale that perfect product or solution without help.

I see this very often in the Biomed industry. The founder is most often a scientist focused on “the work”, not the business of monitizing the work. So once the new solution is developed, they often hire a CEO to scale the business. This individual is not their “boss” but a partner with complementary skills  that will grow the business. These founders have the emotional intelligence to humbly admit their personal distinctive competencies.

So ask yourself a simple question to find what kind of CEO you are; is your passion in the development of products and or service solutions that solve unresolved problems? Or is your passion and expertise in the management and growth of  teams and  markets? Some might say, “well why should I pick, I am good at both.” Well I hate to break it to you, but if you feel that way you are either very rare, or very wrong. ( the odds favor wrong) Once you answer the above, now ask yourself what type of leader does your business need today? If you want an unbiased view, ask your team to participate in 360 review.

If you find the business needs a skill set you do not possess, one of the best things you can do for your business and personal wealth, is to hire that skill and it may be a new CEO. This decision will free you to serve with your gift while being complimented by a partner who also has unique competancies . Agreat article by David Allen some time ago Titled : You can do anything-But not everything helps solidify the need we all have to narrow our focus.

If you are a founder, how can you come to grips with growing and handing your baby over to someone else? Focus.Focus on your business and its needs!

Besides, the founder is the one authors write books about.

Is your business bleeding?… Three back to basics triage steps to stop the bleeding

If your revenues are off as of late you are not alone. However knowing others are struggling does not help you know where to make adjustments to achieve your corporate objectives, or for smaller companies to help you make payroll. I call this looking for the real “why.” Once you determine the true “why(s)” you can make strategic corrections and adjustments to correct your business.So what should you do if your business is bleeding today? It may feel like death by a thousand cuts, but I can assure you it is always one of three ailments.

Over the years, when your business was booming you really did not need to be that good. I know that disturbs some people, but the tendency for some is to have taken a position of; “do I know where the business is coming from and why people buy from me? ..Why should I care as long as it keeps coming in?” (as described by one of my customers years ago.) Well, now is the time they are caring.

There are three back to basics business triage reviews I  always asses. If you are not achieving your revenue targets your business is bleeding in one, or a combination of the below;

1. Product

 

2. The market

 

3. Your team

Product

Do you have a product problem? What problem does your product solve? How well does it solve this problem? What have your customers been saying lately? Is your product the perfect solution for an unresolved market problem?

Market

Do you have a market problem? Do you have a market or solution for one customer? How pervasive is the problem you solve in your market? What new conditions has your market experienced? Has your market experienced any new market dynamics like new competitors, government regulations, environmental factors, technology changes? Does your market feel the problem you solve is urgent? Does your market have the ability to pay for your solution? ( a word of caution, too quickly leaders determine they are bleeding due to a market problem, be careful)

Your team

If your product is a perfect solution (determined by the market) and the market is urgently looking for someone to solve their problem with cash in hand, then your problem is your team. This is one of the most difficult areas to adjust. The quickest indicator I look for is how market driven your team is overall. How focused and passionate are they to serving the market? Does your team possess the skill set required for the market of today? As is often the case some team members provided tremendous value in the past, but now lack the experience or training to meet the market needs of today. In a Fortune article recently it discussed how market leading companies are always training their team members in good times and bad.

Here’s a shocker for some CEO’s …you are a part of the team too!

If you have a product that perfectly solves and unresolved market problem, and a market that desires to pay someone to solve the problem your product solves, and you have an amazing team….then the problem may be you. Ouch!..that hurts , how do you know if you are the problem? You need to ask yourself some tough questions;

How well does your experience and training match the needs of your team and your market?

What area do you feel is your strength?

What area is your weakness?

What skill does your business need today?

What steps have you taken, and or are you taking to offset your weakness and or the needs of your business?

leaders know their strengths and humbly admit their weaknesses. Top leaders are committed to continuously improving their abilities to better serve their internal and external customers. This is accomplished through growing our abilities and balancing our teams with leaders who compliment our weaknesses.

It’s time you go back to basics and perform honest triage if you find your business bleeding.

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