Month: August 2019

Categories
Strategy

5 Steps for Effective Strategy Implementation and Execution

5 Steps for Effective Strategy Implementation and Execution

Introduction

  • Do your strategies often fails?
  • Do you want to know how to implement a strategy successfully?

Organizations create strategies but due to a lack of proper knowledge of strategy implementation and execution process they are not able to execute them properly and as a result, their strategies fail.

In this article, we will discuss how to implement a strategy successfully through 5 simple steps of the strategy implementation process.

Step 1 – Unique, Clear and Distinct

It is the first step of the strategy implementation process.

For strategy Implementation and execution, you need to:

✅ Create a tough, bold, and distinct set of choices in your organization.

✅ Create such a unique and clear set of choices that it becomes easy to present your organization distinctly.

Step 2 – Strategic Positioning

The uniqueness of your organization should be positioned strategically. It is the second step of the strategy implementation process.

❌ Do not make a product that sells well in the market.

✅ Make a problem-solving product that solves the problem of your customer.

✅ Make a product after identifying the need of your customers.

As an entrepreneur or CEO, Step 1 and Step 2 are your responsibilities. So, you need to perform them on your own end effectively.

Step 3 – Incentivize the Behavior with Emotional Value and Financial Value

Even if you have made the strategy for positioning but your employees and management are not ready yet. So, you need to incentivize their behavior. It is the third step of the strategy implementation process.

You need to provide the following types of incentives to your employees and management:

Emotional Incentive

✅ Take emotional commitment from the employees for implementing the strategy.

✅ Tell employees how this strategy will be beneficial for them and the company.

Financial Incentive

✅ Provide financial incentives to the employees for the work they do to implement the strategy.

When you and your team come together, the execution will be easy.

Step 4 – Identify the Skill Deficit, Knowledge Deficit, and Execution Deficit

If employees want to help you in strategy implementation and execution but they do not have the required skills or they do not know what should they do and how to do, then it is impossible to execute your strategy.

In such a case, you need to:

  • Identify the different types of deficits of your employees like skill, knowledge, and execution.
  • Become the gap partner of your employees to help them to fill their deficits.
  • Train, inspire or engage your existing employees.
  • Bring new skilled manpower to implement the strategy.

Step 5 – Flexibility is the Solution for Frequent Barriers

✅ Make your frameworks and working style flexible.

The framework is necessary for execution. Without frameworks of strategy implementation and execution, you cannot be successful.

There are two types of frameworks –

  • Standard Framework
  • Creative framework

Once you know the standard frameworks, you are able to make your own framework, which will be customized according to the current situation or problem.

When CEOs or entrepreneurs start making their own customized frameworks, they provide these frameworks to their juniors and juniors just need to enforce the devised strategy implementation process to let your company start growing.

Categories
Strategy

Are You Failing to Implement Strategy Execution Process?

Are You Failing to Implement Strategy Execution Process?

Introduction

  • Do you want to know strategy implementation process?
  • Do you want to know what strategy execution framework is?

Many businesses fail in their initial years despite the excellent strategy execution process and years of experience. Do you know why?

It is because of the lack of appropriate strategy execution framework.

Many businesses fail because they fail to execute their strategy.

Strategy does not give big Success, Execution does.

The day you understand this, you will see your business growing.

Here is how you can execute your strategy through 4 important strategy execution frameworks.

If you adopt these 4 steps in any department, the efficiency of that department will increase.

It does not matter whether you are the first mover or the last mover. You will become a fast mover. Here, are those four steps:

Step #1: MEG (Most Essential Goal)

Among the most important tools of the strategy execution process is MEG (Most Essential Goal).

MEG is a goal for which you are ready to compromise everything else and focuses on it only is called Most Essential Goal (MEG).

Focus on What Matters the Most!

If you do everything but miss your most essential goal, you will fail.

If you miss everything else and focus on your MEG, you will get successful.

So, you need to identify the MEG of your department, division or organization that you want to execute.

Step #2: Effort Score and Result Score

Without matching your Effort Score with Result you cannot implement the strategy execution process effectively in your business.

If you want to achieve a goal, separate your Effort Score and Result Score.

While achieving any goal, determine what effort will it take and what result/outcome is expected.

Step #3: Scoreboard
Until you make a scoreboard, people will not feel excited and your strategy implementation process will fail drastically.

People play differently when they have a scoreboard.

Actually, people want to win and you should help them win by making a scoreboard.

When you encourage people, they will take scoreboard as a game and will try to win. As a result, their speed will increase.

Increasing the speed of the department will help you control the numbers, figures, and targets.

Now, you can engage people easily.

Let’s move on to Step 4!

Step #4: Weekly Review Meeting

Conduct weekly review meetings with your team so as to improve their performance, and implement the strategy execution process efficiently.

When people with a shared vision sit together to discuss areas of mutual concerns, it sparks creativity and helps them achieve the Most Essential Goal.

Categories
HR & People Management

How to increase employees performance?

Introduction

  • Are your employees not feeling motivated to achieve the organizational goals?
  • Do you want to know how to increase employee performance?

Employees’ performance directly affects the growth of an organization. If your employees are not motivated enough to perform, then be sure your organizational goals will take a backseat.

How to sort this out?

To understand how to increase employee productivity, let us first understand the quadrants given below.

Quadrant #3: Managing

It is said that when you are managing your employees, you are only damaging your employees. This will not help you to increase employee productivity.

For Example

If you continuously scold employees about their mistakes, it will reduce their inspiration and motivation. They will stop taking initiatives and responsibilities.

Telling employees about their problems, again and again, will only make the problem bigger instead of solving it.

✅ Managing is only required when there are Disciplinary Issues. Only in this case, you can increase employee performance.

Quadrant #4: Mentoring

Mentoring is required when an employee has a Skill Deficit Issue. This will help you to increase employee productivity.

✅ It is mostly required by new employees as they do not know what to do and how to do.

✅ Identify the skill gap in your employees and train them by becoming their skill partner.

❌ Never give mentoring to an employee who already has the skill to perform his work; this will only damage your relationships with them. His motivation will also go down.

Let us understand this with the help of an example.

If somebody already knows how to play the harmonium and you keep on telling him how to play it, it will only damage your relationship with them.

Quadrant #1: Counseling

Counseling is about asking questions to employees about their problems. It will help you to understand your employees, which will gradually enable you to increase employee efficiency.

For Example

If an employee is coming constantly late to office, then instead of telling him (managing) that he is late, ask him (coaching) why he is late.

Probably, he might be facing some real issues in reaching to the office.

If you ask him, he will be encouraged to speak and both of you mutually find out the solution to the problem.

This will increase his trust in you and he will work hard for you. It will increase employee efficiency.

When you ask employees about their problems, it is inside out and when you tell them about their problems, it is outside in.

Inside out will create inspiration while outside in will kill his inspiration

Quadrant #2: Coaching

Coaching is a process of asking solution-oriented questions to employees like – What are your ideas? What are your top three ideas to remove the defects? What your experience talks about it?

✅ Coach the employees by increasing their willingness and asking them about the solutions.

✅ Ask them about their knowledge and experience.

If an employee is giving a solution, then he will commit more because it is not your solution, it is his solution.

There is already a buy-in that is created in him and now, it is easy for you to increase his willingness.

It will also increase employee performance, accountability, ownership, initiative, and responsibility towards you and your company.

Quadrant 1 (Managing) – gives 0/100 results, Quadrant 2 (Monitoring) – gives 33/100 results, Quadrant 3 (Counseling) – gives 66/100 results and Quadrant 4 (Coaching) – gives 100/100 results.

Now as you know coaching is the best way how to increase employees’ performance, you can improve their productivity and grow your business seamlessly through above-given quadrants.

Categories
Marketing

Methods for Understanding Customer Needs!

?Introduction

  • Are you understanding customer needs?
  • Are you looking to improve your understanding about customers?

You need not become Steve Jobs to innovate. 

This is because Innovation is Approachable, Easy, Doable and Feasible.

You can do it by understanding customer needs.

Here are 8 methods that will help you in identifying customer needs and behaviour.

Method #1: Start with the Existing Data

Before launching any product, you should study the consumer behavior. To do so, you should analyze the customer data which will help you in understanding customer needs and determine their buying behaviour. 

  • Compile all the customer data available on your computer, call logs, or data bank.
  • Analyze the customer data to identify which product has a high demand.
  • Collect the details of customers from feedback forms to study their buying pattern.

Example:

Apple Inc. collects data of all the customers visiting its retail stores across the world and analyzes it for identifying customer needs and their buying behavior.

Swedish company, IKEA, uses an Artificial Intelligence-based Chat Bot on its online platform to interact with the customers. This helps them to study the customers’ buying behavior.

Method #2: Interview the Internal Stakeholders

Another most powerful way for understanding customer needs is by establishing direct communication with the internal stakeholders. 

  • Get reviews from people who come in direct contact with the customers.
  • Assemble all reviews from the team members of sales, services, delivery, and customer care department.
  • Based on these reviews, try identifying customer needs.

Method #3: Identify Pains & Gaps in the Customers’ Buying Process

For identifying customer needs, when a customer comes to your shop or online platform, you need to understand:

  • What he really wants? 
  • What are the gaps that influence his buying process?

Method #4: Scan All Interaction Touch Points

You can figure out all the ’touchpoints’ when your potential customer interacts with you or comes in contact with your company through any medium. It is one of the ways of identifying customer needs.

  • Map out the whole process from the first interaction with your customer until he actually ends up buying your product.
  • Identify all the touchpoints for understanding customer needs and try to improve them as per customers’ feedback.

Example:

Before buying a company’s furniture, a person checks out its online presence. 

If he finds it satisfactorily, then he fills up an online form to request an enquiry. 

It is followed by a call from the company. 

If he finds it impressive, he decides to visit the company’s showroom.  

While visiting the showroom, he will observe the company’s parking facility, security check, beautification and interaction with the salesman. 

When a customer is satisfied with each touchpoint of a company, he decides to buy the product.

Method #5: Conduct Follow Me Home Research

For understanding customer needs, many companies opt for this method to observe their existing customers’ feedback about their products. 

It involves getting feedback from your customers while using the product at their home. 

It is a very powerful step to understand:

  • How do customers feel about your product?
  • Why does a customer use your product?
  • What are the challenges they face?
  • What are its competitive dynamics?
  • What are your growth gaps?

Based on the feedback, you can bring the required changes in your product.

Method #6: Focused Group Interview of Customer

Understanding customer needs of current and potential customers before introducing any new product or service. 

It can be done by interviewing your existing customers. 

You can ask them different questions in different ways to know what kind of product they need and what changes are required to be brought in your product. 

Example:

Britannia once decided to launch a biscuit with the flavor of Kaju Barfi, as this sweet is very popular among Indians. 

Before launching the product, they invited some of their regular customers to get feedback on the product.  

However, the customers rejected their idea after tasting the sample of biscuits.

This led Britannia to stop committing a big mistake.

Method #7: Analyze your Competition ’ SWOT Analysis

It is one of the methods for identifying customer needs.

No matter how big or small your company is, you need to analyze your competition through SWOT analysis i.e. Strength, Weakness, Opportunity, and Threat.

  • Strength and Weakness are Internal
    ’ What are the strengths and weaknesses of your company?
  • Opportunity and Threats are External
    ’ Which opportunity is waiting for you in the market? What are the competitive advantages of your competitors? What are the threats to your company? 

Method #8: Diary Study and Feedback Form

Feedback form is a traditional method, but it can be converted into a non-conventional method. 

How? 

You just have to allow your ’customers to write their feedback about your product on the scale of 1 to 10.” 

This will give you the Net Promoter Score, thus, enabling you to bring in the required changes to improve this score.

So, the above 8 methods will enable you to identifying customer needs and behavior so that you can take informed decisions in your business and make it successful.

Categories
Marketing

Zero Budget Branding of Product by Cross Promotion Technique

Zero Budget Branding of Product by Cross Promotion Technique
Zero Budget Branding of Product by Cross Promotion Technique

Introduction

  • Do you want to advertise your product at a low cost?
  • Are you not getting the expected results by spending so much money on advertisement?

When you have a limited budget to market your product, then the only way that can help you to advertise your product is Cross Promotion Technique.

It allows you to advertise your product using an established and non-competing brand without investing too much.

What is Cross Promotion Technique?

When two or more non-competing brands, which are targeting the same Psychographic and Demographic audience, come together to promote each other without threatening each other’s consumer base is called Cross Promotion Technique.

Benefits of Cross Promotion Technique

  • Cross-promotion gives more promotion and exposure to non-competing brands without investing too much.
  • It is the most cost-effective technique to add new customers to both brands simultaneously.

 

No-Risk Campaign

If your marketing budget is extremely less, then you have the option of no risk campaign, a process in which you need to search the right cross-promotion partner.

All the below-mentioned brands utilize the goodwill and assets of each other to promote each other without increasing their marketing and branding cost.

To increase your understanding of the phenomenon let’s discuss these cross promotion examples:

1. Coca-Cola & Mc Donald’s:

This partnership is running since 1955 and giving an additional growth rate of 5% to 10% to both the brands as their consumer base is the same.

2. BMW & Louis Vuitton:

Both are luxurious travel-based brands and also have high-quality excellence. The company especially designed BMW i8 in which Louis Vuitton bags fit perfectly. Thus, both brands give luxury services together and increase their customer base.

3. ARIEL & L.G Washing Machine:

Both companies’ customers get exposure and have multiple touchpoints.

4. Google Android 4.0 & Nestle Kit-Kat:

Kit-Kat launched chocolate in the shape of Google Android. This partnership increased visibility, viewership, and recall value of Google Android.

5. UBER & Spotify:

Both brands promote each other and are getting J curve growth simultaneously.

6. NIKE & Apple:

Apple provides workout data to the end-users of NIKE sports shoe users. Thus, both popular brands club their services.

7. GoPro & Red Bull:

GoPro sponsors all the events of Red Bull and both brands focus on Adventure, Youthfulness, and High Energy. Thus, promote each other’s’ brands.

You have to join some popular brands to stretch your marketing reach and reduce your budget. Only then you’ll get a desirable result.

5 Steps to Select Right Cross Promotional Partner

1. Pick the Right Partner

Before selecting the right promotional partner, you have to go through the market image and customer base of that brand to ensure whether it is going to promote your brand or not.

  • You should choose your partner that matches your target audience. For example, an educational institute can never make a partnership with Alcohol Company.
  • There should be a strong match between the target audience and similar business ethics.

2. Go Beyond Me

While searching for a perfect cross promotion idea and partner, you need to think about the benefits of not only you but also your promotional partner.

You need to show the cross-promotion benefits to your promotional partner.

3. Search Outside the Box

To promote your business without spending money, it’s necessary to “Think out of the box”, which means you have to think about every possible aspect that helps you in advertise your product.

For strong advertising, you can also associate with:

  • Cab Driver, Web Developer
  • E-mail Campaign, SMS Campaign
  • Direct Mail Company, Signage Company
  • Local News-Paper Magazine
  • Local Radio-shows & TV shows

4. Put Everything with a Legal Contract

Before joining hands with anyone in your business, it’s mandatory to frame a strong legal contract including the following points in your top priority:

  • Financial Responsibility
  • Expectation & ROI-Measurement

5. Consistency in Similar Language

There must be a clear connection and logical sequence between two or more products while choosing a cross-promotional partner.

You need to analyze that which kind of product or brand suits your requirement that can help you grow your business without high expenditure.

Avoid cross-promotion with unrelated products or businesses that may give mixed and confusing signals in the market and may hurt your brand value.

Categories
Powerful Personalities

Management Lessons from the life of Lord Hanuman!

Lord Hanuman

Introduction

In this article, we will discuss the management and life lessons from Lord Hanuman.

Lord Hanuman was the devotee of Lord Rama. He had Rama and Sita always in his heart.

  • What is in your heart?
  • What you are looking for in your life?


Lord Hanuman only sees Lord Rama. So, it was easy for Hanuman to absorb and execute the instructions given by Lord Rama.

Everyone has the idea but they lack execution.

Ideation without execution leads to delusion.

Example of Lessons from the Life of Lord Hanuman

We can learn various lessons from the life of Lord Hanuman.

Let us take one example from his life.

In Lanka, when Laxman was unconscious during the war between Rama and Ravana. Rama asked Hanuman, “Can you bring the Sanjeevani Booti to save the life of Laxman?”

Hanuman could have said, “Lord, I have applied for two days leave. I will not be able to go. It is very difficult to work. You can give me some easy job.” But, he has not said that.

There are two things – Initiative and Finitiative.

Lots of people can take initiative but finitiative is taken by only those who can take responsibility.

Responsibility is one thing that is never given, it is always taken.

In odd circumstances, your boss will only search for the employee who is more responsible and reliable.

Lord Hanuman is a live example of accountability, ownership, initiative, and responsibility.

Lord Hanuman could have said that Sanjeevani Booti is far away and it is not in my Key Responsibility Areas (KRA) and Key Accountability Areas (KAA). But, he has not said this.

He went to the Himalayas with very high speed to bring Sanjeevani Booti.

When he reached the Himalayas, he was not able to identify the Sanjeevani Booti.

He could have come back and said to Lord Rama, “Lord, you have not provided the sample specification. If you have shown me the sample, then I would be able to bring it. I was not able to find it.”

And Lord Rama would have accepted the Hanuman’s reply because he actually not has the sample.

But, Lord Hanuman brought the whole mountain with him to Lanka and said, “Please check and find the Sanjeevani Booti. I was not able to identify it. You have to spend 2 extra minutes in it.”

So, Lord Hanuman could have said no or he could have stopped at someplace. But, he did it.

Management and Life Lessons from Lord Hanuman
Check-in which of the following categories you fall:

  • Some people complete the work.
  • Some people see how the work is completed.
  • Some people get amused to see what is happening.

There are some people who when joins an organization doesn’t see what they have to do but they see who has the highest authority in the organization.

Such people take shelter of the people having the highest authority in the organization. These people are the parasites, who believes in-

Two Times Punch

One Time Lunch

Life is Tunch

Give yourself power, not excuses.

With every excuse that you give to your life, you lose your potential to be extraordinary.

Categories
Motivational

How to Multiply Your Business without Giving Discount?

Business without Giving Discount?

Introduction

  • Is discount killing your business?
  • Do you want to know the most important factor in increasing your sales?
  • Do you want to multiply your business without giving discount?

Traditional shopkeepers, traders, and small merchants often adopt conventional strategies such as discounting, overdraft, extended credit period and freebies to increase sales.

Vendors and shopkeepers complain that to compete with the low-priced products imported from China, they end up giving discounts and freebies to attract customers and multiply your business.

Although such strategies may work for small businesses for a short period of time, they can’t retain the market for a longer period for big corporates.

To help the Indian business community increase sales and revenue and attract customers by understanding their nerve, we have compiled the following 5 powerful techniques that will help you to multiply your business without giving discounts.

Tip #1: Identify the Critical Success Factor of Your Customer

It is one of the methods to multiply your business without giving discounts


Just selling your product using any sales and marketing strategy is not your job, instead of understanding your customer’s money-making model and making your customer’s business successful is your job.
  • You have to enter your customer’s life to understand his/her business by becoming a trusted partner.
  • Try to enter your customer’s business and identify how you can help him to increase his earnings. Once you start helping your customer in running his business, he will become your loyal customer. This will help you to multiply your business.

Tip #2: Identify the Critical Success Factor of Your Customer’s Customer

  • Even after understanding your customer’s business, it is imperative for you to understand the business of your customer’s customer.
  • This is a very unconventional way to make a loyal customer by contributing to the critical success of his customer. It will help you to multiply your business.
    “Don’t act like a Sales Man, act as a Consultant”
  • Try to understand how your customer’s customer is generating income which is called success consulting practice.
  • If you contribute to the success of the customer’s customer by matching their needs, then your direct customer will become your loyal customer.

Tip #3: Identify the Critical Success Factor of Your Customer’s Competitor

  • Since you understood the critical success factor of your customer and your customer’s customer, it’s time to understand the critical success factor of your customer’s competitor.
  • Try to enter the business of your customers’ competitor and find out what policies and techniques they are using to run their business successfully.
  • After understanding your customer’s competitor’s business model, integrate the required changes in your product, which can help your customer to compete with his competitor and increase his business.
  • After the success of your customer’s business, he/she will become your loyal customer. This will help you to multiply your business.

Tip #4: Determine Where you should Focus


Don’t focus on conventional techniques of business to allure your customers like pricing, discounting, promotional schemes and over drafting, as these techniques don’t retain your business for a long duration.
  • You have to “focus on churning your innovative strategies to increase sales, gross margin, revenue, inventory turnover, cash flow, brand equity, customer acquisition, customer retention, profitability, liquidity, growth, productivity, and velocity.”
  • Small merchants and salesmen often focus on discount, overdraft, credit period and low-cost techniques, which after a certain period of time start hurting their profitability. On the other hand, big corporates focus on this innovative tool to influence their customer’s buying behavior to get an upper hand over their competitors.

 

Tip #5: Customer-Centric Organization

“Customer’s critical success factor should be the foundation of your corporate strategy.”

  • Restructure your organization in a way that it’s each and every department works towards contributing to the need of focused customers. Organization’s every department should direct their efforts to add value to the biggest customer’s critical success factor.
  • Engage all departments in brainstorming game-changing ideas to build customer-centric strategies to increase the sale of your product. This will help you to multiply your business.

All the abovementioned tips will help you to multiply your business without giving discounts.

Categories
Motivational

How to Handle Tough Situations in Life

?Introduction

  • Do you get nervous in tough situations?
  • Do you want to know how to handle tough situations?

For handling tough situations, there is only one formula, i.e.

Event + Response = Outcome
 

Event means what is happening around you or what are the circumstances.

The response is your choice, i.e., how do you respond or deal with the circumstance. 

The outcome is the result of your response to that event.

Out of event, response, and outcome, what is in your hands?

You neither have event nor outcome in your hands. There is only one thing in your hands, i.e. response.

So, to know how to handle tough situations, you need to understand the event and response or react accordingly.

Reaction is thoughtless while response is thoughtful.
 

The problem (or event) that is happening in your life is not the problem. But, considering a problem as a problem is actually a bigger problem. 

How do you respond to that problem or the circumstance? This is important.

Be Mentally Strong, Not Strongly Mental
 

Circumstances can be anything. They can either make things or break things. They can either make you strongly mental or mentally strong. 

It depends on your choice how would you like to lead your life: 

  • By chance or by choice
  • By default or by design

Lots of people are not choosing or controlling their emotions but their emotions are choosing or controlling them.

For handling tough situations, you need to make your mind mentally strong.

Some people are directed by their emotions while some are directing their emotions.

Some people take instructions from their mind while some are giving instructions to their mind.

 

Event should not have the capability to change your outcome instead your response to the event should have the ability to change your outcome. 

If an event is bad and your response is also bad, then the outcome will definitely be bad.

If an event is bad but the response is good, then it may be possible that outcome is good. 

Lord Krishna said in Gita, ’Karam karenge; ho sakta hai fal mile, ho sakta hai fal na mile.’

If you do not do your job, then it is confirmed that you will not get the output.

How to handle tough situations?

For handling tough situations, you need to bounce back in tough times. 

Every successful man whether Picasso, Abraham Lincoln, Gandhi or any other successful man in the world, ’All the success stories in the world are the stories of great failures.’ But, it is their ability to bounce back in tough times that makes them successful.

You don’t become successful just by reacting. You become successful by responding to a tough time. 

Tough times tell a person that you are tougher than the tough times. 

Choice is power.

Don’t be push-start, be self-start. 

You have the power to start yourself right now.
 

Response is Everything

There is nothing in the event; everything is in the response. How do you respond to this event will determine your outcome.

So, for handling tough situations, you need to understand how to respond to an event. 

For Example:

A small boy lost his father at a young age and his mother and relatives left him. Now, the same event:

1. can make the boy mentally strong or strongly mental

2. can give him either a hopeless end or endless hope 

3. can give him either breakdown or breakthrough

It will all depend on what he chooses.

 

Whatever has happened is your experience. What you are is your existence. Experience and existence are different. Do not depend on your experiences. You can’t go back.

Have a better response to having a great outcome in your life.

According to the 2.14 Shloka of Bhagavad Gita:

?gam?p?yino ’nity?s

tans-titik?hasva bh?rata

Shri Krishna said in Bhagavad Gita, ’winter, summer, happiness, grief, respect or disrespect will come and go as they are temporary, but one must learn to tolerate them without being disturbed.’

The event is temporary. Your response is always with you. Keep choosing.

Whenever you fall, you should bounce back in tough times always. Your response will create a great outcome. You are born to create history on the planet earth.

Categories
Motivational

Increase your Business Performance using Money Making Model!

Introduction

A survey says that 88% of the employees in an organization are passengers while only 12% are the drivers.

  • How will you increase the drivers in your organization?
  • How will you increase your business performance? 

To get the answer to the above questions, you need to first answer the questions given below:

Q1. What is the Money Making Model of your Department or Organization?

Money making model is one thing that drives the business performance of your department or your organization. 

According to the Pareto Principle, “if you do that one thing, it will be most impacting to the entire business.”

It further says that your 20% activities will give you 80% results and your 80% activities will not give you even 20% results. 

You need to identify the one thing that enables you to get 80% results by doing 20% activities. This one thing will be your money making business model.

Q2. What is Your Contribution to the Money Making Model of Your Department or Organization?
  

Do you know what exactly your responsibilities are in the money making business model? 

If you don’t know this, then your vision, mission, strategy, and plan everything will fail.

How much time you are investing in making the money making model for your department or your organization? 

You need to identify the answer to this question. 

Q3. Does Everybody in Your Department have the Answer to the Above Two Questions?
 

If you got the answer to all the questions discussed above, you will be able to align the entire business performance in one direction. 

If the entire team or entire organization is working on the most impacting activity and in one direction, it will increase the organization’s revenues, productivity, and profitability and make it grow. 

This should be your money making business model.

If you want to drive your business performance and improve employee engagement, then make sure each and every employee in the organization has the answer to the above three questions. They should have the knowledge of money making model of your business.

Categories
Process & Business Expansion

Why Family Business Success Planning is Important?

Introduction

  • Does your family-owned business falling?
  • How to make a Family Run Business successful?

??Hundreds of big family-run businesses collapsed over the last few decades in India due to a lack of efficient family business succession planning.

Most often, conflict among family members owing to leadership and wealth management and lack of long term planning lead to debacle of family-run businesses in India

 

In the view of problems faced by family-run business owners, the following 5 steps will help you to make proper family business succession planning process in the long term. 

Step #1: Long Term Leadership and Strategy

It is the first step of family business succession planning. 

The family-owned business that lacks long term leadership and strategy doesn’t go a long way. Success and longevity of a business depend on the long term vision and mission for executing strategies. 

A family run business often has old-fashioned leadership, which is incapable of formulating innovative execution strategies, involving new capital and people for a longer period.

With paternalistic control over its day-to-day affairs, such businesses are incapable of recruiting external people. 

Such a conservative style of doing business may work for a short period but fails in the long run. 

A leader in the family-run business must be capable of making an action plan for a longer period to maintain its credibility in the market. 

Step #2: Succession Planning

Pathetic family business succession planning has long been the prime reason behind their failure since centuries in India. 

The absence of systematic succession planning of business often triggers conflict among family members on the exit of an incumbent. 

According to the PwC report, ’Only 15% of family-owned businesses have a robust succession plan.’

During a sudden crisis of leadership, if there is no systematic pipeline of leadership, family members start confronting each other for the succession of business and end up hurting business.

Family elders who are heading the business need to best