Strategy corner; the wisdom of ‘no’

While it is most common to focus on what to do, of equal importance is to answer the inverse question of what not to do, which markets to NOT penetrate, which demographics to NOT target. Like the yin-yang, these questions represent two parts of the whole that comprise a company’s strategic landscape. Just as any artist or composer will tell you the silence is as important as the lines or notes, so too is it with strategy.

Michael Porter, the famous Harvard strategist, provides 3 key ideas regarding strategy:

1. Strategy is the creation of a unique and valuable position, involving a different set of activities. Strategic position emerges from three distinct sources:

•    serving few needs of many customers

•    serving broad needs of few customers

•    serving broad needs of many customers in a narrow market

2. Strategy requires you to make trade-offs in competing—to choose what not to do.

3. Strategy involves creating “fit” among a company’s activities.

In other words the company reinforces it’s strategic position by leveraging its core competencies and general activities rather than spreading itself thin to ‘hit all the targets’. An example he provides is  when Continental Lite tried to compete on price with Southwest airlines – with poor outcome.

The lesson?

…. still no free lunch!

Working Smarter; managing your person

I recently came actoss a great post talking about something called ultradian sprint in the Harvard Business Review.

The basic idea is that because there’s so much information out there it is easy to get distracted with this or that  -Nytimes, gmail, etc. etc. A better way to work is to focus one’s time using a timer such as timer for mac. Set the time for an interval between 90-120 minutes, focus on a singular task and then – GO GO GO!!! This is a sprint not a walk in the park. Just as the sprinter goes in one direction toward the finish tape, so too these sessions should be equally focused and singular in purpose.

Follow up each block of time with true relaxation, meaning something enjoyable that will recharge you. Though you may feel like you can continue onto the next session it is important to treat the rest intervals with as much seriousness (of relaxation, that is) as you do the GO intervals. If you’re working as you should you will need these breaks.

It’s important not only to work smarter in each block interval but to make sure these intervals are in line with your core beliefs and values. This seems so obvious to say and yet how many of us are truly immune from judgment and comparison to our peers? One of the great temptations is to remain busy in our fast times. Let’s not forget that setting course in the wrong direction can take us farther from the destination than if we stayed in place and charted course properly.

Peter F. Drucker of The Harvard Business Review says the following on career:

Only when you operate from a combination of your strengths and self-knowledge can you achieve true—and lasting—excellence. To build a life of excellence, begin by asking yourself these questions:

“What Are My Strengths?”

“How Do I Work?”

“What Are My Values?”

“Where Do I Belong?”

“What Can I Contribute?”

As an entrepreneur it is very easy for things to spin out of control and to revert to putting out fires. Remaining on target and keeping that spark and original intention is critical to get through the hard times. Hopefully these questions can help keep the fire burning without consuming.

Using SCORE and the SBA

In case you are not familiar with the US Small Business Association (SBA) here is your chance to learn about it before your friends recoil in shock and horror. This is a great resource for any business – old or nascent.

http://www.sba.gov/

This group is comprised of VERY experienced, retired business executives with the mission of facilitating success from small businesses. You can also use SCORE which allows you to find a consultant and converse with them online here.

With something like 80-90% of new businesses failing within the first 2 years this is a critical resource. I’ve used the SBA and SCORE extensively, from developing business plans to implementing marketing strategies. I’ve received invaluable mentoring along the way. Like any good thing you only get out what you put in. In the past I’ve set weekly meetings with counselors to keep on track. I would produce reports and provide detailed analysis. If you are serious about your business succeeding I can’t recommend this more highly – at least at the beginning stages.

Increase productivity with free Excel spreadsheets

As an entrepreneur one thing that I am constantly refining (daily, hourly) is organizing business processes and efficiency. One very helpful resource I’ve found has been business spreadsheets to track everything from break-even analysis to profit/loss tracking and even inventory depreciation and forecasting (including seasonality) models.

Why reinvent what already works. Best of all these spreadsheets are freely distributed. I recommend using these as launching points to then tailor to the particulars of your own business. I actually did buy the book, written by a veteran business consultant – the dynamic manager – which has some great nuggets of information that will get your business working like a well-oiled machine. This website is easy to access and well worth the time spent to find what you need to run your business more productively: www.jaxworks.com