Building Better Businesses

	Why Henry Ford was right - Mostly
	The Planning Journey: What Business are we in ?
	Define the Future: "Its that vision thing"
	What business do we want to be in ?
	20 ways to change, improve and grow your business
	10 ways to create a revolution in your company

Downloadable File - A Template for Building a Business & Marketing Plan
('building_better_businesses.doc' 964KB Word Document)

WHY HENRY FORD WAS RIGHT - MOSTLY

"Obstacles are those frightful things you see when you take your eyes off the goal" - Henry Ford

Unfortunately, objectives are only part of the equation without a clear view of your current position - Market, Customers, Values, Proposition, Strengths & Weaknesses, objectives are of limited value. Planning is a journey, where you start from influences many things. How far do you have to travel for how long and what methods of transport. How much will the journey cost ? What potential problems ?

So first get under the skin of your business, then decide where you want to get to - The Goal. Now you can plan how to get there - The Strategy: Business Plan, Financial Plan, Marketing Plan and Project Plan. In addition you will need a Communication and Trading Plan, involving as many people as possible, so that everyone is on board and equipped to deal with inevitable changes.

Now you come to the hard bit - Implementation. This is where the vast majority of strategy failures occur. It's project management - Business Processes, Communication, Visibility, Accountabilities, Milestones and Critical Paths. ALL must be constantly monitored, processed and reviewed. It's about people, progress and communication. If it was easy, everyone would be doing it well, but 8/10 strategies can fail here.

If PLANNING is a Journey,

STRATEGY is the Map,

PROJECT MANAGEMENT is the Navigator

THE PLANNING JOURNEY: WHAT BUSINESS ARE WE IN ?

You must get under the skin of your Business to really understand it - not as simple as it sounds. For example, Parker Pens, when they did it, found they weren't selling pens they were selling GIFTS and fundamentally changed their products, packaging and marketing approach.

You must define your business from your customer's point of view - the benefits you give them. Again not so easy, but if in doubt ask them! If they think you're doing a lousy job they'll tell you. Then you can improve and sell it back to them as a customer service initiative - ADDING VALUE.

Ask your staff, they'll know the issues - 60% of all improvement ideas come from within a business. What about your markets - how big and are they growing ? What about your customers and their needs. Are your product propositions satisfying those needs - do you sell on Price, Value, Quality of Service and is that what your customers' need ?

Are you UNIQUE - 80% of the world's most successful businesses differentiate in some way. To determine this you will need to analyse your competition and their proposition. Even Market Leaders are vulnerable - ask Marks & Spencer! You also need to analyse your Business's skills, resources, values, strengths & weaknesses - obstacles to Change & Growth.

NOW YOU KNOW WHAT BUSINESS YOU ARE IN - YOU CAN GO ONTO THE NEXT STAGE OF THE PLANNING JOURNEY.

DEFINE THE FUTURE: "It's That Vision Thing"

People often baulk at "Vision Statements", but in reality no business should be without one. In reality it describes the FUTURE for 3 to 5 years briefly on one side of A4, but it must have the commitment of the Management to make it reality - a touchstone to focus and refocus - the energies of people towards Goals and Objectives. It's not a Business Plan, suported by financial objectives - that comes later, but it is a powerful tool to remind staff of the Goals. It should include:-

1.	Which Market Segments to achieve leadership in or enter.
2.	How the company will be seen by customers as Unique.
3.	Essential policies to pursue, eg. Investments in IT or Design, Training initiatives.
4.	Broad financial goals, eg. A minimum or average % increase each year. Profit mix from each market segment.
5.	Future ownership - Private, Merger, Flotation.

The Vision Statement is highly confidential but, where relevant, parts of it should be shared with the Business. Belief in and commitment to the Vision are more important for success than sophisticated planning techniques.

Great businesses plan for a quantum leap. These rarely occur in the short term, but you can start initiatives which will cause a quantum leap to occur in the longer term.

THINK BIG AND MAKE IT HAPPEN !

WHAT BUSINESS DO WE WANT TO BE IN ?

This is where you flesh out your vision with specifics - where you want your business to be headed.

What type of business do you want to be ? - Skills, Values, Beliefs. How you want your customers and staff to perceive you. These insights will influence how you act in all areas of your business. Eg, will you strive to be the best or stand for quality and service ? If you chose this path, you pay lip service to it at your peril. People will soon notice. This is your culture.

Every action you take must be analysed from your customers' point of view. World class brands deliver absolute consistency of quality and service. This may require you to improve your skill base through training and recruitment which will be reflected in your financial plans for the future.

What are your target markets, target customers and what do they need ? Be absolutely specific to show the products / propositions to deliver to them. This in turn will highlight the need for product development.

Analyse your competition to learn how to beat them. This will be by being better or cheaper then them. Benchmark your competition and industry to show where you underperform - a great source of tangible targets - Delivery, Performance, Stock Levels, Customer Complaints, Staff Turnover.

By comparing all of these aspects of your Future Business with your current position, you will discover the size and nature of the Journey you must make.

20 WAYS TO CHANGE, IMPROVE AND GROW YOUR BUSINESS

1.	Know that 20% of your effort will give you 80% of your return - ALWAYS
2.	Identify key activities, Customers, Products and Suppliers and treat them differently and with respect.
3.	Work hard at implementation - 8/10 strategies fail because of poor implementation.
4.	Be UNIQUE - the vast majority of successful businesses differentiate.
5.	Persevere - 70% of all new business occurs after the 5th contact.
6.	For small businesses, the priorities are CASH FLOW, PROFIT and SALES in that order.
7.	Sell the benefits you offer - not the products.
8.	Know how profitable each customer is to you.
9.	Involve your staff - 60% of all improvement ideas will come from them.
10.	Your reception area is your "Silent Salesman" - make it work for you.
11.	An important part of your promotional mix is your image - the most difficult to change.
12.	Work hard at customer service - if good customer service was easy everybody would be doing it.
13.	Bill promptly "while the tears of appreciation are still damp on their cheeks".
14.	Find ways to sell more to existing and past customers.
15.	Review your Business Plan at least monthly and refresh it annually.
16.	Have a rolling cash flow and treat your bank manager like a customer !
17.	Find out what your customers think of you - Perception is Reality.
18.	Maintaining the status quo is not an option - it means you're GOING BACKWARDS.
19.	Define the beliefs and values that underpin your business - these will dictate all your actions and strategies.
20.	Respect your staff - your customers will see their behaviour and respond accordingly. PEOPLE ARE THE PRODUCT.

10 WAYS TO CREATE A REVOLUTION IN YOUR COMPANY

1.	Ask yourself what you want out of life.
2.	Ask yourself what really matters to you.
3.	Give all your 'work clothes' to Oxfam and wear what you feel is really you.
4.	Talk to people (even those you don't like, about 1 & 2). You should be feeling uncomfortable now - even sick: this is normal !
5.	Give up something you most need at work (desk, company car, etc).
6.	Trust everyone you meet. Keep every agreement you make.
7.	Undergo a 'group experience' (anything goes!).
8.	Rewrite your Business Plan to align all of the above with your customers.
9.	Draw a line on the office floor and invite everyone to join your 'brave new world'.
10.	Share everything you do and own, fairly with everybody who crosses that line.

(You should be feeling liberated. Soon you will have, in this order, the following: Grateful Customers; Inspired Employees; Friendly Communities; Money).