Beware the False Gods of Business Strategy
The False Gods
You’ve probably read articles on the need for a PURPOSE, a VISION, a NORTH STAR, Big Hairy Audacious Goals (BHAGs), TPLs, KBOs, KPIs.. etc. The list is long and exhausting. Business overviews often read like an academic thesis!! These good ideas get piled one on top of the other until the simple success factors of a business are lost.
None of these management methods and tools are ridiculous. Indeed, sometimes, they are extremely useful to encourage leaders to sense-check what they are doing.
That said, what we can all learn from the book Obvious Adams is that the best way to make a business work is to understand how it brings value to customers, design it well around a workable business model, get the right people around the boardroom table, don’t be so greedy as to starve it of investment and, most of all, focus on a small number of critical operational success habits.
Founders overthink and underthink at the same time
Founders are busy people. There is a natural instinct to jump into action and DO SOMETHING! This personal drive and energy is vital for success — but it can lead to activity before planning. It can also result in leaders not allowing sufficient time to think deeply about the big questions that determine business success or failure.
Business people like clever ideas, clever thinking. Sometimes, the best and most sensible answers are unremarkable, unsexy and downright boring!
When I say founders overthink and underthink at the same time, what I mean by this is they OVERTHINK by looking for the clever ideas over the obvious, but they UNDERTHINK by not spending enough time thinking deeply about what the obvious answer is and what makes it the right answer.
What should be in your business overview?
When it comes to mapping out your growth strategy, there are some fundamentals that you should have in place. As a general pointer, these are some of the topics we cover in our Catalyst for Growth workshops:
1. PURPOSE: What was the root cause behind why you set up the business in the first place?
2. PERSONA: What characteristics go into shaping a potential customer?
3. VALUE: What is your customer value, and how does it get converted into shareholder value?
4. COMPETITION: What makes you the best option for buyers?
5. SCALE: What does a typical deal look like and how repeatable is your most successful type of deal?
6. VALUATION: Can you ‘franchise’ your business even when the founders are removed from the picture?
7. PROOF: What evidence do you have that you deliver the value to customers you claim to?
8. LEADS: What are the sources of sales leads, and how effective are you at creating them?
Final thoughts
All consulting firms have slightly adjusted versions of what we do at Tomlin&Co. The founding father of modern-day management consulting, Peter Drucker, had five basic questions that he used to start the ball rolling on understanding a company’s business and strategy. They are still relevant today, although they are probably not sufficient to use as the whole version of your truth.
The questions are:
1. What is Your Mission? (i.e., Why does your company exist?)
2. Who are Your Customers?
3. What do Your Customer’s Value?
4. What Results are You Getting? (i.e., How’s that working for you?)
5. What is Your Plan? (i.e, How are you going to turn that customer value into shareholder holder and where do you go from there?)
About the Author
Ian Tomlin is a seasoned marketer, entrepreneur, and business leader with a 30+ year career at the intersection of strategy, technology, and marketing. As the founder of successful businesses, including Newton Day Ltd, Ian brings a wealth of expertise in guiding companies toward compelling brand stories. Reach out to Ian via LinkedIn to transform your marketing approach and tell your brand story effectively.
