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Slides from the October 2012 Glasgow Competitive SME seminar: Introduction to the Irrefusable Offer.
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1. Welcome and Introduction (David Hood, Competitive SME)2. Opportunity or Armageddon? Ready for the Economic
Upswing?(Jim Henderson, Shirlaws)
3. The 7 Stage Process to Competitiveness and the Irrefusable Offer(Brian Canavan & David Hood, Competitive SME )
4. Collaboration for SMEs(Jim Mather, former Minister for Enterprise, Scottish Government)
5. Panel Session
: Agenda
Opportunity or Argmageddon?
Jim HendersonPartner, Shirlaws
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2007 2008 2009 2010 2011 2012
Services
Construction
Production
Agriculture
Percentage points
GDP
UK GDP
Source: NAB
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2007 2008 2009 2010 2011 2012
Services
Construction
Production
Agriculture
Percentage points
GDP
UK GDP
Source: NAB
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2007 2008 2009 2010 2011 2012
Services
Construction
Production
Agriculture
Percentage points
GDP
UK GDP
Source: NAB
External Charts
The “W”
Time To Get PositiveThe business owner who’s educated, confident and secure about the economic cycle will be preparing their business for the next boom.
It’s this preparation over the next 12-18 months that’s business critical in maximising the benefits from the next boom.
• Get your numbers right – prepare and plan
• Get your timing right – match your business stages to economic phases – investment returns take time
• Get your culture right and reconnect back to your vision
• Packaging and IP development
• Distribute into distinctly defined niche markets
V = P x M
Multiple
4.0 V7 Scale
2.0 V6 Brand – Brand Architecture
1.5 V5 Channel Extension
1.3 V4 Product Innovation
1.2 V3 Systems & Infrastructure
1.1 V2 Culture & Talent
1.0 V1 Industry Benchmark (norm)
0.9 Costs
0.8 Revenues
0.7 Assets
0.6 Liabilities
0.5 Management Team
0.4 External Factors
1957
1973
2001
1930
1990
• “Move fast and break things”. Mark Zuckerberg
• "Innovation has nothing to do with how many R&D dollars you have. It's not about money. It's about the people you have, how they're led, and how much you get it.“ Steve Jobs
Time To Get PositiveThe business owner who’s educated, confident and secure about the economic cycle will be preparing their business for the next boom.
It’s this preparation over the next 12-18 months that’s business critical in maximising the benefits from the next boom.
• Get your numbers right – prepare and plan
• Get your timing right – match your business stages to economic phases – investment returns take time
• Get your culture right and reconnect back to your vision
• Packaging and IP development
• Distribute into distinctly defined niche markets
• Use the resources at www.shirlawscoaching.co.uk– Test where you are on Stages… is your business ready to grow?
– Test your attitude to entrepreneurial Risk.. are you ready to innovate?
– Read the articles and thought papers.
• Register for our newsletters and download “More Money, More Time, Less Stress”
“A roadmap for making your business brilliant again” FT’s Mike Southon
• Buy me a coffee
More help to get ready for recovery…now
7 Stages to Creating the Irrefusable Offer
David Hood Brian Canavan
Competitive SME
© Copyright David Hood / Competitive SME
© Copyright David Hood / Competitive SME
: the 7 STAGES1. Strategy & Objectives2. Quick Gains3. Current Competitive Status
/ Engagement4. Possible Competitive
Advantage / True Value5. Prepare for Launch Success6. Refinement & Impact:
Maximising Revenue7. Sustaining your Edge
© Copyright David Hood / Competitive SME
© Copyright David Hood / Competitive SME
Example ofCompetitive SME tools... 1
Simple de/re-constructionof your Proposition
: De/Re-CONSTRUCT
© Copyright David Hood / Competitive SME
: De/Re-CONSTRUCT
© Copyright David Hood / Competitive SME
• Reactive• Resource focus• Legacy processes• Defined by industry• Make as much as we can• Make to and for margin
• Proactive• Opportunity focus• Adaptability / Resilience• Defined by market• Offer as much value• Make to need, order and demand
© Copyright David Hood / Competitive SME
Example ofCompetitive SME tools... 2
Using the Proposition Accelerator Tool (P.A.T.)
: P.A.T.
Proposition
Accelerator
Tool:
... the simple andultimate test!
© Copyright Brian Canavan / Competitive SME
© Copyright David Hood / Competitive SME
Example ofCompetitive SME tools... 3
the ultimate objective:The Irrefusable Offer
The Irrefusable Offer:Changing the Currency
What to Change What to Change to How to Change (Currency)
Rolls-Royce:Engine downtime costs a lot of money to the client
Keep the engines upin the air; (‘performance based logistics’)
‘Power by the hour’
First Class Physiotherapy:The point of interaction and reference for the problem of staff absence
Stop people getting hurt rather than waiting for them to get hurt; caring!
‘Reduce absence’
Laboratory Services:We charge more than the competition and are not seen as worth the money
Do not charge the way the industry does, always has, and always will
‘Helping shift product for the client’
© Copyright Competitive SME
CollaborationJim Mather
Gael Ltd.
ChairmanGael Ltd.
Jim Mather
Collaboration for SMEs
Jim Mather
My Messages
• Collaboration is a great survival strategy
• Competition is overstated and has been perverted
• Time for a new Beginning that resuscitates Trust
© Copyright Jim Mather - Gael Ltd
Two Problems with Collaboration
• Historical Connotations
• The Victory of “Competition is best” lobby– Competition - definition: The activity or condition of competing– Competitive - definition: Having or displaying a strong desire to be
more successful than others– Arguments:
• Competition has been overstated as a force for good, perverted & hijacked in some cases against the real economy and the consumer
• “Competition” often means “Lowest Price”
The Book The 14 Points Point 1:
Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs.
The Case for Collaboration It’s synonymous with Optimisation An attribute of the “competitive”
W. Edwards Deming
© Copyright Jim Mather - Gael Ltd
Worthy Altruistic Unifying
Goal
Determination to constantly optimise the whole system
ActiveMaintenance of
Relationships
Constant Referral to Community Interest
and Community Involvement
Involvement of external people and
organisations that could“Contribute or Benefit
From” the success of the “System”
Charles Ehin
Moving Target
© Copyright Jim Mather - Gael Ltd
Opposition
Unifying Worth Goal
Fair & Open Processes
Collaboration
Experience
Relationship
Professor Ken Cloke’s Ladder of Unity
© Copyright Jim Mather - Gael Ltd
Collaboration Blending the Three Mind-sets
H1 – Status Quo – Business as UsualH2 – Gradual Evolution of Existing BusinessH3 – Radical Departure from Existing Business Model
© Copyright Jim Mather - Gael Ltd
WHAT THE HOPPER BROTHERS OBSERVED
The Puritan Gift
Likely reasons why change & innovation & change programmes fail
Future SME 2011
Lack of
Collaborative
Conversations
Common Factor?
© Copyright Jim Mather - Gael Ltd
Likely Drivers of Innovation
Steve Johnson – Where Good Ideas come from
The Presence of
Collaborative
Conversations
Common Factor?
© Copyright Jim Mather - Gael Ltd
Current Issues with Competition
• For Real Economy Businesses - Waste, Duplication– Margins decimated– High Attrition Rate
• Nations – People, Communities & Countries left in lurch
• Consolidation and creation of Monopolies– David Korten – Nightmare Scenario
• Small number of Beneficiaries:-– Financial Markets– Professions – Legal, Accountancy, Purchasing
• Countries rejecting the Washington Consensus – Getting better results than compliant nations
© Copyright Jim Mather - Gael Ltd
The Case for a Two-Legged Walk- The Genius of Dee Hock
© Copyright Jim Mather - Gael Ltd
Collaborate with whom?
How do we do it?
• Take Margaret Wheatley’s advice• Blend Competitive & Collaborative Strategies
– Reject the Race to the bottom– Take pride in offerings and prices
• Read:- – The Shell Scenario Planners
• Ari de Geus and Adam Kahane– The man that studied how Toyota did it
• Mike Rother– The Hopper Brothers’ Hero
• William B. Given
• Resurrect Deming • Put the systems in place to move beyond good intentions
– Commitment to Quality, Continuous Improvement and Challenging Orthodoxies– Quality Management Systems – Collaboration Tools
© Copyright Jim Mather - Gael Ltd
Other Questions
• Can we create such a blend:-– Locally?– Nationally?
• Will Horizon 2020 Drive behaviour?• Can we educate:-
– Purchasing Managers?– The Accountancy Profession?
• And avoid The City and Wall Street creaming off the profits?
© Copyright Jim Mather - Gael Ltd
Want to join [email protected]@aperturemarketing.co.uk
@competitivesme