3 Secrets to Improving Your Business

Every business and organization can be broken down into three main areas.  First, Market Know-How, second, Operational Performance, and third, Value Creation.  This way of looking at a business or organization can drastically improve your understanding if you break it down into the elements and prioritize what needs to be addressed.

The Operational Performance area represents internal management priorities.  The Market Know-how area represents target markets and the forces that surround them. The Value Creation area is the formula or template for making a difference to customers and for achieving major impact in the marketplace.

When a corporation or organization is up and running , the flow of the organizational activitie is normally “clockwise” running from Market Know How to Operational Performance to Value Creation, we position ourselves and then deliver products and solutions to satisfy customer needs.  And as long as we exceed customer expectations and maximize profit growth (black figures and growth), the business model works.  However, when this stops and the business or organization is misaligned with the market, typically it stops delivering “value” to the customer. When we are drawn to solve internal problems, people problems, supplier problems, money problems and we take our market position for granted, we become “less relevant” and move towards commodity status.  Our “selling” model no longer matches our customers’ buying model!

What must happen next is we need to realign our thinking and our organization with the priorities in the marketplace we want to serve. We need to completely understand our target market, our customers’ needs and also their “unmet” customer needs. Only then will we be in a postion to create more value and exceed our customers’ expectations and become a dominant player.

Once we align our organization, we can run our business in a normal “clockwise” direction with confidence that we will reach much higher levels of performance..