Business Rocks – In-Flight Maps

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This week’s riff: I’ve just returned from a quick trip to the US. The in-flight entertainment choices seemed almost limitless, covering all the latest movies, a wide choice of TV programmes, different musical genres and a selection of games. Yet, as I stretched my legs around the plane at least half the passengers weren’t watching the entertainment at all. Instead, they had switched channel to the in-flight map, showing where we were on our flight and how far we still had to go.

People want to know where they are and where they’re headed. That’s true for people’s work-life as much as it is for long-haul flights. How do you help your people understand the direction of your business and where you and they are on that journey?

Off The Record: Do You Know Where You’re Going To? By Diana Ross (written by Michael Masser and Gerald Goffin)

Do you know

Where you’re going to?

Do you like the things

That life is showing you?

Where are you going to?

Do you know?

© Stuart Cross 2015. All rights reserved.

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Growth’s Hidden Killers: Business Leaders’ Top 10 Self-Limiting Beliefs

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What do Nokia, Kodak and HMV have in common? The answer is that they are all major companies that have failed. Not only that, but they are excellent major companies that have failed. Their failures weren’t a result of poor operational performance, but instead resulted from poor leadership. Each of these businesses failed to change and evolve in response to rapidly changing markets and that problem is, at its heart, a leadership issue. And, in turn, the poor leadership decisions made by each company’s executive teams reflected the invisible beliefs that each leader carried around with them.

In my 25 years working with businesses of all shapes and sizes across different geographical markets I have identified 10 common self-limiting beliefs that kill companies’ growth potential and prevent organisations from achieving their potential.

  1. Our goal is profit. Profit is not a goal; it is a constraint. The sustained success of a business is not achieved by pursuing profits but by creating products and services that customers can’t get enough of in a cost-effective way. Without the customer demand there is no company, and that should be the goal of every leadership team.
  2. The customer is always right. They’re not. In particular, customers are seldom right when it comes to creating innovative new products and services. When Renault was planning the launch of its unusual Twingo car in the early 1990s over 75% of customers tested gave the concept negative ratings. The car’s design took some getting used to and it required a collective leap of faith before the company made its most successful launch ever. If the directors had just listened to its customers the car would have never seen a production line.
  3. We want an organization of happy, satisfied workers. Wrong. Instead, you want an organization of productive colleagues. I once worked with a grocery chain that was investing $ millions on a new staff satisfaction scheme. The only problem was that when we did a bit of research we found that the happiest, most satisfied staff worked at the least productive stores. The busiest, fastest growing and most profitable stores were staffed by colleagues who were far less satisfied, mainly because they were under pressure all day to deliver.
  4. Strategy is long term. The creation and delivery of a strategy needn’t take years to achieve. In fact a new strategy can be envisioned in a matter of hours and its delivery can be achieved within months not years. At one business I worked with, we established a new strategic ambition and direction in a two-day session, including a 4-year goal to profitably double its level of production. Immediately following that meeting managers and executives began making decisions consistent with the new strategy and the business had delivered a 30% performance improvement on its new #1 goal in less than 12 months.
  5. 100% quality is mission-critical. Pursuing 100% quality is self-defeating in three ways. First, it is likely to cost too much. Second, it takes too long to achieve. Third, it inhibits you from taking the risk of launching 90% quality products with the potential to inspire, engage and attract more customers. The only mission-critical factor you need to consider is your ability to deliver innovative new products and services faster than your rivals.
  6. Only implement what your organisation has the capability to deliver. If that was true no company could ever truly innovate. Let the strength of the new ideas you’re your business direct the capabilities you need, not the other way round. Find new people with the skills and talents you need, partner with other organisations, and use the innovation process to build the capabilities you need. Even Procter & Gamble, the consumer goods giant, now aims to source over half of its new product ideas from outside the company.
  7. Fail to plan and you plan to fail. I much prefer the army’s adage, “Plans rarely survive contact with the enemy” or, even better, Mike Tyson’s quoate that “Everyone has a plan – ‘till they get punched in the mouth!” In other words, success doesn’t go to those companies with the best plans, but those that are able to repeatedly act, learn and adapt quicker than their competitors.
  8. Reward success. Everyone wants success, but if that is all you ever reward you are unwittingly reducing the level of risk-taking in your company. Your people will only ever do anything if they know it will be successful. Instead, you need to reward behaviours, rather than simply results. Have a reward for the best idea that failed, for example, or talk about a glorious failure that brings to life the attitude and behaviours you are trying to embed in your organisation.
  9. Downturns are dangerous. When markets decline and times get tough the natural reaction is to batten down the hatches, cut costs and reduce investment. Yet, the evidence shows that a totally different approach is required. A study of 1,000 businesses clearly demonstrated that the companies that performed best in the years following a 1990s recession were those that had continued to invest in marketing, maintained their appetitie for acquisitions and continued to innovate. The winner of the Tour de France doesn’t build a lead going downhill – all the cyclists go at a similar speed on these stretches. Instead, the winner makes his move on one of the tougher climbs in the race. Similarly, it is in difficult market environments that you can move to accelerate the growth of your business.
  10. Only operate in attractive markets. Business leaders are attracted to high growth, profitable markets. This seems natural, doesn’t it? Who wouldn’t want to expand their business operations into China. The only trouble is that you are far more likely to make profitable returns if you are advantaged in an unattractive market than if you are disadvantaged in an attractive market. The critical success driver is building and exploiting your sources of competitive advantage, not merely investing in supposedly attractive markets. Vodafone pulled out of China and Tesco exited the US market, for instance, after both companies had invested £ millions without creating any clear advantages. Compare that to Ryanair’s ability to consistenly deliver profits in the tough, unattractive European airline business. The difference is Ryanair’s business model is based on a series of distinct competitive advantages rather than the hope that involvement in a strong market will lead to success.

Which of these beliefs do you and your company’s leaders hold? And what new growth ideas could you identify and deliver if you challenged and removed these self-limiting beliefs and growth killers?

© Stuart Cross 2015. All rights reserved.

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Business Rocks – The Key To Running Faster

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This week’s riff: I love coaching my U9 football team and am always looking for ways to improve my coaching skills. As a result, last week I attended the FA’s Coaching Conference at St George’s Park, the FA headquarters. One of the workshops I went to was on sprinting and movement technique. At one point the coach had a group of children jogging lightly on the spot. He then asked them to move their arms faster but to jog at the same pace. Of course, the children found this impossible. As their arms accelerated their legs couldn’t help but follow.

In business many managers are focused on ‘increasing sales’ or ‘growing profits’. This is the equivalent of demanding that someone run faster. Instead, you should focus on the actions under your control that you know will drive sales – the equivalent of moving your arms more quickly. At one opticians business I worked with, for instance, we focused on increasing the number of eye tests as the key to driving sales and profit, while at a bathroom manufacturing client, the company’s ability to guarantee overnight delivery of its entire range was the critical driver of its success and growth.

So how about you? What is the key driver of growth that you could focus on to deliver your growth ambitions and to run ahead of your competition?

Off The Record: Run Rudolph Run by Chuck Berry

Run, run Rudolph, Santa’s gotta make it to town

Santa make him hurry, tell him he can take the freeway down

Run, run Rudolph, reelin’ like a merry-go-round

© Stuart Cross 2014. All rights reserved.

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Business Rocks – Your #1 Goal

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This week’s riff: If you’re the leader of a business, what’s the most important thing you can do to deliver success? My answer is that your most critical task is to set the challenge for your organisation. Establishing a #1 goal – a single, quantitative performance target – that sits over and above all of your other objectives provides cut-through and focus for everyone to help deliver.

For the past few years, for instance, I have been working with the executive team at Topps Tiles. One of our first tasks was to clarify the retailer’s #1 goal, and the team settled on to profitably grow market share from 25% to 33%. In a little over three years, their share has already exceeded 30% and is on-track to achieve the 1/3 share goal. Over the same period profits have doubled.

Topps Tiles’ CEO, Matthew Williams, said, “At the time establishing a single and measurable #1 goal felt a little scary, but in reality it has helped align our people, made decisions easier and got our collective competitive juices going to enable us to make it happen.”

As you take your Christmas break, why don’t you think about potential #1 goals for your business and in January work with your team to settle on a preferred goal and then build your strategy and lead your people to make it happen?

You can find out more about our work with Topps Tiles here, access our archive of articles here or contact us to find out more.

Off The Record: Move On Up by Curtis Mayfield

Just move on up

And keep on wishing

Remember your dreams are your only schemes

So keep on pushing

© Stuart Cross 2014. All rights reserved.

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Case Study: Growing Share and Profits at Topps Tiles

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Situation

In 2011 the executive team at Topps Tiles plc were looking to refresh and strengthen their strategy and identify new avenues for sustainable growth

Our role

Since 2011 Morgan Cross Consulting has worked with the executive team to

  • Identify and embed a clear, #1 strategic goal for the business, that would drive ongoing strategic decisions and actions. The goal selected was to profitably grow market share from 26% to 1/3 of the UK domestic tile market
  • Establish focus around the retailer’s core competitive strategy, ensuring that it can deliver its sales and share growth ambitions. The strategy has been summarised as “out-specialising the specialists”. This meant delivering competitive advantage in three areas; customer inspiration, multichannel convenience and range authority.
  • Agree specific strategic initiatives and priorities for action, enabling the organisation to deliver the competitive strategy and achieve the #1 market share goal

Results

Topps Tiles’s market share has grown from c.26% in 2011 to over 30%  by the end of 2014, and is on-track to achieve the 1/3 goal. Alongside this success, sales have grown 14% to £200 million and pre-tax profits have more than doubled to £17 million.

Client Testimonial

The successful delivery of our strategy has resulted from the hard work and efforts from all our colleagues across the organisation. Among other things, working with Stuart Cross helped us define a clear and specific goal that galvanised the entire organisation and has been a key part of our success. At the time, establishing a single and measurable #1 goal felt a little scary, but in reality it has helped align our people, made decisions easier and got our collective competitive juices going to enable us to make it happen. Quite simply, we wouldn’t have achieved these results without a #1 goal and I would recommend Stuart Cross to any executive team looking to create focus and growth for their business.” Matthew Williams, CEO

© Stuart Cross 2014. All rights reserved

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Business Rocks – Getting Your Paws Wet

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This week’s riff: Finney, our new puppy, has now been with us for six months. He’s a working cocker spaniel, a gun dog bred for field sports, and he loves chasing birds and animals across fields and hedgerows. But Finney suffers from a problem. When he first leaves the house, he doesn’t like to get his paws wet. He pads around the grass like I do when walking across hot sand on our summer holiday, and sometimes he can simply come to a stop at the door as if held back by an invisible force field.

Businesses too hold themselves back from taking the actions that could transform their growth prospects. Management’s fear of failure, unwillingness to take risks or experiment fearlessly leaves their organisation at the door of success, staring out at what could have been.

Goethe, the eighteenth century German writer and statesman, once said, “Whatever you can do, or dream you can do, begin it. Boldness has genius, power and magic in it. Begin it now.” If Goethe had met Finney, he may simply have said that sometimes you just have to get your paws wet!

Off The Record: The Promised Land by Bruce Springsteen

The dogs on Main Street howl

‘Cause they understand

If I could take one moment in my hands

Mister, I ain’t a boy, no, I’m a man

And I believe in a Promised Land

© Stuart Cross 2014. All rights reserved.

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Business Rocks – Better vs Different

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This week’s riff: There are three ways that you can lead your market. The first is to be better than everyone else. That’s fine, up to a point, but in many markets most customers have already made their choice about what the ‘best’ is and are unwilling to spend significant time and effort on finding a new ‘best’. You would have to offer something absolutely amazing, for instance, if you wanted to become a new leader in the deodorant market. Consumers have already made their choice.

The second approach is to identify and focus on a new or under-served set of customers. Lynx, for instance, isn’t trying to be the ‘best’ deodorant brand, but it has grown and succeeded by becoming the first non-sports, lifestyle deodorant brand for teenage boys. And I can smell the evidence of their success every day in my sons’ bedrooms!

The third route to growth is to offer something very different to the existing players in the market. What if, for example, you developed a chewing gum that acted as a deodorant, or created clothing that would never smell? Well, a quick search on Google showed me that you can buy Deo Perfume Candy in the USA and that the clothing retailer, Uniqlo, offers sports shirts with deodorizing qualities. These solutions may not yet have hit the big time, but they probably have a better chance of success than another me-too deodorant.

All business need to invest in the ongoing improvement of their products and services, but to what extent are you also looking to identify potential new market segments or developing a totally different solution for your target customers?

Off The Record: Gonna Change My Way Of Thinking by Bob Dylan

Gonna change my way of thinking
Make myself a different set of rules
Gonna put my good foot forward
And stop being influenced by fools

© Stuart Cross 2014. All rights reserved.

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Business Rocks – Cool Innovation

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This week’s riff: A quick task for you: please spend the next 30 seconds creating a list of 10 white objects.

How did you do? Now, spend the next 30 seconds coming up with 10 white objects that you might find in a fridge.

If you’re like most people you will have found it easier to think of white objects that you can find in a fridge than white objects in general, which seems a bit counter intuitive. Rather than limiting your thinking, however, giving you the extra constraint of a fridge acted as a catalyst to your ideas and your creativity.

Over the past few months I’ve been working with two different clients that have been looking to grow through organic innovation. In a similar way to the fridge example, we have first been looking to identify and focus on where they have the potential to truly differentiate and lead. Once we agreed these specific areas of focus, the stream of new growth ideas shifts from a trickle to a torrent, and as the quantity of ideas grew so too did the quality.

What steps can you take to develop greater focus around the few points of difference you really want to be famous for, so that you can step change your creativity and deliver some cool innovation, with or without a fridge?

Off The Record: Money For Nothing by Dire Straits

We’ve got to move these refrigerators

We’ve got to move these colour TVs

Now that ain’t working, that’s the way you do it

You play the guitar on the MTV

© Stuart Cross 2014. All rights reserved.

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Join Us On Facebook

You can now keep up to date with our latest news and updates via our new Facebook page.

Simply visit https://www.facebook.com/morgancrossconsulting click LIKE and you will get all our updates straight to your Facebook account. And, we are also on Twitter at @stuart_cross.

Look forward to seeing you there!

© Stuart Cross 2014. All rights reserved.

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Business Rocks – Aiming For The Stars

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This week’s riff: I must admit that up until a week ago I had never heard of the Rosetta satellite, the Philae space probe or even Comet 67P. All that’s changed, however, and I am blown away by the fact that humans have been able to send a rocket on a 10 year journey of over 4 billion miles to land on a small, rotating, duck-shaped piece of rock that’s only 2 miles wide and is travelling at 40,000 miles per hour 350 million miles from earth.

In last week’s riff, I suggested that giant leaps result from a series of smaller steps. The successful landing of Philae on 67P is a great example. Scientists first started planning the project 25 years ago, and step-by-step have been able to find solutions to all the issues and problems that they will inevitably have faced.

The project may not achieve all of its objectives, but in my eyes it has already been a stunning success. And the most important step in this venture was to define and commit to the goal of landing a probe on the comet to carry out scientific tests. Only then could the team organize and deliver the project. Too many business initiatives flounder because they have unclear, fuzzy goals that, in turn, deliver weak results.

What are the clear, specific and ambitious goals that you are committing to on your own particular ‘space missions’, and what are the steps you’re taking to ensure that you successfully shoot for the stars?

Check out our new Facebook page, download our white paper Small Steps, Giant Leaps, or contact us to find out more about how we can help you achieve your most important goals.

Off The Record: Sleeping Satellite by Tasmin Archer

And when we shoot for the stars

What a giant step

Have we got what it takes

To carry the weight of this concept?

Or pass it by like a shot in the dark

Miss the mark

With a sense of adventure

© Stuart Cross 2014. All rights reserved.

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