What do Henry Ford, Sam Walton, and Michael Dell have in common? They all utilized a systematic approach to build their companies – an approach you can use also to plan for, grow, and create the business you long for.
Henry Ford did it with the concept of mass-producing the automobile, Sam Walton did it by re-inventing the retail landscape in America, and Michael Dell did it with creating an organization to deliver reasonably priced, custom computers to the masses.
Each of them pulled together all the facets necessary to create a system to accomplish their overall objective. In a similar way, you too can utilize a systematic approach to move your company from where it is today to where you want it to go.
Catapulting Your Company to a Whole New Level
If you want to catapult your business to a whole new level, become a world-class leader, and create the business of your dreams – then read on.
No doubt you want your company to operate just like a well-tuned race car engine with all its cylinders firing properly and in the correct sequence. To do that you need to systematically execute the daily tasks necessary to accomplish the Vision for your organization.
As we have considered in previous articles, a business is like an intricate jig-saw puzzle where one piece of the organization fits with another piece, and when all the pieces are put together properly, they can operate correctly, thereby achieving the company’s goals. The totality of putting these pieces together is that the result is greater than the sum of an organization’s parts.
Let me share an example of a very large, well-known company that has used a comprehensive, systematic approach to operate.
Amazon’s Secret to their Success – Pivoting to a Compelling Vision
Amazon was first started with a plan to only sell books. It very quickly pivoted and as its founder, Jeff Bezos said, revised its Vision to pursue being “an everything store.” With this new, compelling Vision, it developed a comprehensive strategy to achieve its Vision and a truly an engaged workforce.
This led to utilizing a structured execution approach and applying innovation throughout its operations. The result has changed the face of America and is now beginning to change the world. They have done this because of creating an entire economic “system” to accomplish their goals.
An interesting by-product of creating an entire economic system with your company is your brand ends up becoming very well-known (like Amazon did) because of creating an experience your customers can expect and rely on.
In recent articles we have discussed the need to periodically recalibrate the Vision for your company. This step is what transformed Amazon. Let us now apply this concept to your company so you can mold it into what you will need to achieve your desires for it.
This task involves fully systematizing your business and managing the execution of your Strategy using metrics. In other words, answering the question, “How do I structure my business for it to operate correctly in the future?
Update The Strategy For Achieving Your Renewed Vision
In various recent articles I have discussed the need to revise and “renew” the Vision for your company – which is, where do you want to take your business?
Once you have done that, how to do you put a plan in place to make your Vision a reality? There are three essentials to accomplishing that.
1. Modify Your Critical Success Factors
The first task is to review and possibly update your Critical Success Factors based upon your recalibrated Vision, and the related delivery of your desired solution to your customers. In past articles I have introduced and discussed the concept of Critical Success Factors, which are the make-or-break factors in your company. That is, they are the big-picture things to you need to do correctly, each and every day within your business.
If your Vision has changed because of the revising or “renewing” it, very likely your Critical Success Factors will also need to be updated.
2. Update Your Three- and Five-Year Plans
If your Vision and/or Critical Success Factors have changed, you need to update your current 3- and 5-year Strategic or “Business” plan (i.e., a Time-Sequenced Vision).
Your Time-Sequenced Vision reflects your company’s short and mid-term goals and objectives, and they are the Mile Markers to ensure you are on the correct path for achieving the ultimate Vision for your enterprise.
The mile markers are quantified goals or objectives, such as Revenue, Number of Customers, Profit… that serve as measurements to determine if you on-target or off-target with regards to the Long-Term Vision for your enterprise.
3. Revise Your Analysis of The Six Areas of Your Business
The final task is to implement the details of your 3- and 5-year Strategic plan in each of the six areas of your business. These areas are:
- Vision and Leadership
- Marketing & Sales
- Finance & Administration
- Human Assets
- Information Technology
Let me share an example of how a company used a comprehensive systematic approach to transform its operations.
One of our clients, an HVAC company, revised their Vision to create a truly compelling one, then developed a comprehensive Strategy, and lastly established a 3-and 5- year plan (i.e., a Time-Sequenced Vison). They then used a structured approach to execute it.
This enabled them to perfect their systematic approach to operating in the HVAC world, then expand into the electrical, plumbing and home performance sectors. As a result, they became the largest and highest-rated company of its kind in state of Georgia.
Where To Start
The overall goal for your company should be to utilize a systematic approach for moving it from where it is today, to where you want it to go. This begins with renewing and updating the Vision you have for your company.
Then, based on this revised Vision, you want to revise your Critical Success Factors, so you know the things you need to fully focus on to achieve your Vision. Next, to make your goals and objectives measurable, you want to modify your 3- and 5-year Strategic plan and it’s related the Mile Markers so they reflect your company’s new Vision.
Finally, you want to reflect these actions in the detailed operational plans for each of the six areas of your enterprise. By taking these steps you will be able to implement a systematic approach to your entire operation which will result in your company being greater than the sum of its parts.
If you could use assistance with enabling your company to operate as a unified system, please contact us using the information below so we can be a resource to you in this important area.
Fountainhead Consulting Group, Inc. is an Innovation and Business Planning firm. During the past 21, years we have shown over 1,200 companies how to achieve their goals by using our unique, comprehensive, and systematic FastTrak Innovation Program™, Innovation Academy™, and Structure of Success™ methodologies. Using the components in these methodologies, each month we examine an aspect of how to transform your business or organization into a true 21st Century enterprise.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.