So, you want to double your turnover, eh? Here is a way to do just that by focusing on just two key levers of your business. Let me refresh your understanding of the five key levers you can manipulate to grow your business.
Number of Leads – Get more customers coming through the doors
Conversion Rate – Convert more enquiries into sales
Number of Transactions – Increase the frequency a customer purchases
Your Profit Margin – Increase the profit margin per sale
Average Dollars per Sale – Increase the average sales amount per customer
By pursuing a regular marketing campaign based on networking, referral gathering, direct contact, writing, public speaking, advertising and promotion you can explode the number of leads pouring into your sales funnel. You can also push your conversion of leads into customers up by 5-10%. This takes a little bit of work but is well worth it.
You can put up your prices – this is a fast way to increase profits. Make sure price increases are made to products or services that have high volume or are moving at an acceptable rate. Throw in higher conversion rates from leads to customer and this will put a smile on your face!
All the above strategies work to improve your profits, yet to obtain the best bang for your buck you cannot beat the following one two punch:
Increase the number of transactions
If your customers usually make 4 purchases per year, then stretching this to 5 per year will have a profound effect on your bottom line. This is a strategy to use on your existing customers. How do you get them to come back more often and buy? Here are just some of the tactics you can use:
Customer Loyalty programs
Invitations to special promotions
Email marketing or newsletter ( keep in touch or else they will drift to your competition)
Customer appreciation nights and notifications of exclusive offerings
Increase the average dollar amount of each transaction
If you are not already actively encouraging your customers to spend more via the following tactics you should be, for example:
Up-selling – Guide them to the $400 suit rather than the $200 one
Cross Selling – Would they like a shirt or tie with that suit? (Buy the $400 suit and we will throw in the shirt and tie for a bundled price)
Down Selling – Ok so you don’t want the more expensive suit how about the cheaper one?
To appreciate the impact that adjusting these two levers makes to the net profit of this example businessss let’s look at the following lists. The amount of transactions is increased from 4 to 5 and the average dollars per sale rises from $100 to $125. Everything else remains the same.
In part 1 of this article we found out how organisations function and work have changed, how technology and multi-cultural groups have changed the face of training and development, and how we must change our old habits in the way we manage and develop our mass.
We discussed on how training is less dependable when not fused into an objective centralized system, a system coupled to organizational development goals. After that, we came up with 5 platforms of a solution for better retention and procedure and
these would save time and money .
The 5 basics are:
1. Begin with a common vision.
2. Get your people using a Common Methodology that will help them to be aware of psychology behind the group dynamics
3. Set 5 facets of organizational development before starting any training and incorporate them into the training system in order to setting foundations to Nourish an paragon workenvironment and it will yield a more passionate organizational culture.
4. Have multiple training course of studys ready to indoctrinate an intact group.
5. Establish your major players, the people, who, by popularity or charisma, have the most influence in your groups and set them up to start your rotation.
Well, in addition to the questions that were answered in Part 1…
ever-changing our paradigm of training and people development would be hard!
So, what is the reason for this again???
An Organization’s Culture is its Personality and Attitude. Toschool productive and Passionate Organizational Culture as well as give Organizational Change, we must understand and be able to influence the psychology of its group dynamics. The difficulty is that, unless we know and set the psychological parameters for Corporate Culture, it will be left to risk. According to a 2007 study of 70 like structured companies, you could lose 52% of your productivity potential. The study indicated: Where the mean = 100 people do the work of 100 people, in a poor culture , 100 people did the work of 68. But in a good organizational culture , 100 people did the work of 152! To win in improving Organizational Culture , the people must “feel” that the company serves their own personal development beyond the paycheck. Now deal about this… How much better (and profitable) could your company be with 52 extra free employees?
Is that an adequate enough reasonto read on…?
So, now the function, the beginning of the Revolution
Six: With the first five steps in belongings, redesign your training as IMPLEMENTATION curriculums so that it renders quick Visible affects.
Huh? Immediate visible results , how? We don’t have time! People are Busy! …
Well, that is true with “Traditional” training! But we aren’t talking about Traditional, are we? We already know that the common vision for a better working environment is shared by your employees. So, implementation must visibly get them nearer to that vision. When personal satisfaction is organized with the organizations objective, it changes the significance of work for your people and provides a frame work by which employees can have personal vision concurrence with the company while creating a more passionate and fulfilled workplace .
But this isn’t going to really happen with the average 2 day training here and there. two days is just too much data and no connection to other learning! And worse, if its not related to a “Common Methodology”, how much real implementation will you get across the organization? And what’s about the instant emotional gratification that comes from beholding instant touchable results toward a common goal? Well, there isn’t much and people keep on doing the same old affair they have been doing. To get IMPLEMENTATION, you must take your staff on atravel of Change, Vision, and the macrocosm of a Greater Work Culture where they will be happier. It will be a journey of new perceptions that brings out attributes fundamental to Self Leadership, a journey where your people will “Feel” the “Personal” increase in change and then have a posture to actually make change happen.
After that, give them the social organisation to apply what they have gained and aid others in the organization to do the same.
Every journey needs a plan , and this plan of action starts with getting the common system of understanding to the people. The methodology we use is Directive Communication Organizational Psychology. We use this for 2 reasons. One: it works and it works fast, and Two: well, because I invented it.
Step one: Make sure that you know the issues that are important with your people, and then set guidelines that senior leaders are comfortable to make instant change towards those issues.
Step two: With your group of 12 to 15 “key Influencers”, get them trained in one day intervals with one day implementation directly later (and believe, implementation is focused on the creation of their greater purpose to create a personally fulfilling working environment and THEY make the changes based on senior management guidelines). The experiential process involves them and the group over the period of 12 to 14 days (depending on your size). Here is how it plays out.
1. Key influencers post with peers the issues that should be changed in the organization. (If you have done your preparation, you already know what these are and you have set realistic guidelines that would be enough to get people excited). The key here is that THEY need to find out for themselves and make their own decisions with the group. Facilitators only guide them with the guidelines but they think it’s all their idea.
2. Using tools like the Colored Brain Communication Inventory or HDMA , your people understand each other at deeper levels for more intelligent cooperation
and it is integrated into the process of implementation
3. After each one day training, key influencers chose and train 5 to 8 peers and management a condensed indication of what they have learned and apply it to their immediate tasks and problem solving issues.
4. Relate positive feedback and visible results to the the actions and behaviour modifications that were employed in the process
5. Do the next day of training and repeat the process for 4 to 5 days of training and implementation. Carry on each day using the terminology associated with the methodology to reinforce, more meaningful and less reactive communication
6. Reinforce cognition with 40 minute online learning sessions for all staff
The result is increased synergy and trust across departments from peer training and covering of knowledge with a by product of personal accountability compulsory to take action without looking to others for management. Employees will create a supportive environment where they will draw on the collective strengths of the management and the staff at various levels.
Areas of focus
Personal Understanding :
measure current organizational culture
Assess issues that affect culture
Appraise personal life goals and the effects of organizational culture on those goals
Evaluate current results in life Because of Work
Application :
5 pillars of Transformation
Culture Evolution Strategies
Clarity of Purpose and Direction
integrated Group individuality
A personal Success Identity connected to the
group and the organization
With the entire organization, seeing the beginning of a realization of their greater purpose through work and awareness of the core methodology and its language that makes it happen, their unified identity induces a stronger force for achievement. Why? Because they start to feel like they are in dominance of their own fate. So, its time to move to the next step,solidification.
Seven: Set you efforts up for “Sustainable Change”
The hard work is over, now just add the relish into the initiative and you will see even more drastic results!
1. During the process,key influencers develop directional principles with peers to create structure
2. After training; the final day is a presentation of what kind of working environment the “people” want to create for bringing out the best of themselves and others, what they need to create it, and the guiding principles they have personally chosen to live by. This is presented in a fun entertaining show
3. Senior management agrees because it is within the guidelines of what was already accepted
At this peak, people feel, they mean something in the big picture, that they, no matter what position in the organization, can make a dispute. They feel successful “Through” the organization and the organization goal starts to be aligned with them. After all, if they have the power to influence their corporate culture, they have a look of ownership in the company.
The reason, this program works over and over again over other types of initiatives, is that the psychological foundations are expanded by the employees themselves, neither by management nor by consultants. Each of these Modules contains “Implementation Projects”designed to cultivate ownership and excitement within the ranks of your people. The reappraisal of DC360 Blended Learning people development modules (in accordance with organizational objectives) reinforce created results and perpetuate passion at work.
While the DC psychological strategies affect perceptions, there is no “Mindset Change”. The process simply brings out the facets of identity that Already Exist (although in dissimilar environments). And, since there is no change in mindset, it is easier to sustain new existing behaviours under the different circumstances. Factors such as: Creating a Greater Purpose at work, using the DC psychology to achieve that greater purpose, having a language that reinforces awareness and facilitates better communication with less response, and creating a Unified Identity that aligns the group with the Greater Purpose.
Involving different organizational hierarchies (i.e. management, supervisors, front line, and support) as equals in the acquisition of something better, provides the glue that binds a sense of ownership and brings our self leadership qualities out in the masses. They then become the strike force that ignites the leadership revolution from within; they are the force for the good of the organization. They get a strong sense of purpose because they are fulfilling their own personal gratifications through the organization, not just doing the job.
Eight: Now that the foundation is strong, align it with competency, leadership, and inclusion of new employees. Since the core Directive Communication methodology (DC) applies to any soft skill training, your people will seldom need to go through traditional training again. alternatively, you can now provide ½ day programs in particular applications like: Management, Customer Service , Sales and Marketing, fiscal applications, Leadership, Innovation And Creativity, Communication and Branding…
But Wait!!! All these don’t need to experts in those fields?
Well, YA!
And that is why you can either use your own experts who become certified in Directive Communication Psychology or get DC trained experts from around the globe who are already certified as DC trainers, each with their own area of expertise.
NOW… Time, scheduling and Cost become less of an issue with multiple platforms to “Apply” new applications of what they have already learned. You can use the multiple platforms to integrate everyone who knows whats going on so that knowledge and best practices are shared with a common personal vision that is now in line with organizational objectives. And the system of measurement is already in place. So, you can see your people’s development and how the implementation of knowledge is realizing Company goals .
Here why you need to use this system:
Platform flexibility allows everyone to get involved within whatever money you have to invest
Improves organizational Communication and Cooperation
Creates an environment where learning is constantly being Reinforced
Includes Succession provision and Recruitment to maintain overall organizational objectives
All learning and supporting efforts are systematically directed towards the Organization’s Objectives
Integrated Leadership means that new knowledge is shared and employees take on roles of training their peers
Process allows organizations to design their Corporate Culture with multiple applications of DC
Allows you to see clear progress towards objectives and in individuals
This lecture by Dr Ian Mackechnie is an excellent presentation on strategic management. It is part of the modules that are offered by the MBA at www.stamfordonline.com.
Strategic management requires a skill set that first starts with an assessment of the market and what stage the market is currently in. Identifying where the market is on the innovation curve is important because how you approach a new market or adapt within your current market helps strategic managers better position the business.
The closer to early adopter stage, the more your product will need to have, add, new, exciting features; the closer it is to early majority, the more you will need to emphasize stability and productivity;the closer it is to the late majority phase, the more you will need to emphasize ease-of-use and entertainment feature sets.
According to the latest research from CarringtonCrisp, the UK-based business school consultancy service, the financial crisis has not deterred prospective MBA students from taking up the degree.
One surprising finding of the survey was in the area relating to curriculum. While content such as strategic management and leadership placed as a high value with respondents, there were four areas that languished at the bottom of the popularity lists: taxation, logistics, outsourcing and……. ethics.?!
The survey was conducted online with prospective students through a range of sources such as Facebook and LinkedIn. A total of 91 countries participated, with the largest group coming from India, followed by Australia and the UK.
Article Quote:
“According to the report – Crisis? What crisis? – only 7 per cent of the 723 prospective students surveyed reported that their attitude towards the MBA had become more negative as a result of the financial crisis.”
While is is appropriate for strategic management and leadership to have a high value in curriculum content, it is surprising that ethics ranked so low on students’ list of importance.
If we are to improve investor confidence, ethics needs to be valued by the new group of business leaders entering the job market. If ethics is not valued, we are likely to see a repeat of the financial lending institution scandal which put the global market into a recession, or scandals such as those of the 90’s.
Strategic planning and strategic thinking are not the same. Strategic planning is a process of identifying goals and creating a path to reach those goals. By contrast, people who have the ability to think strategically can step outside their normal frame of reference and understand that it’s only one of many possible frames.
Executives often become too focused on the task of exceeding last quarter’s numbers, that they fail to see the broader landscape. For instance, in a four-week executive-education course, students were presented with this challenge using the example of Apple’s iPod — how did a small computer company with only a 5 percent share of the market come out with this revolutionary new product, while Sony Corp., which had all the components inside its organization to create the iPod, failed to do so? The answer: simply because Sony executives failed to see outside the box and instead stayed within their comfort zone.
Article Quote:
“Planning is, by definition, a sense that there’s a Point A and a Point Z, and simply a number of steps from point to point — it’s a linear process. Strategic thinking, by contrast, is a way of conceiving of a problem or challenge more holistically.”
When strategic thinking is fostered in an organization, people can more easily identify problems areas and circumvent them before they become giant headaches. Employees become more aware of the company goals, thus becoming more engaged in the execution of the strategic plan.
The author highlights asset tracking and asserts that it should be more than an accountancy compliance issue. It’s an essential component of informed and sound management.That’s especially important with IT asset tracking.
IT equipment is at the heart of any business today and often realizes great changes during its operational lifetime. Some of these changes include software that is frequently installed, un-installed- or upgraded. Often, components are switched, replaced or upgraded. Many of these changes are internal and therefore normally “invisible.”
Article Quote:
“Assets must be managed both financially and physically and to do that you require knowledge of just where all your assets are. Many companies rely on a conventional spreadsheet approach to try to keep track of their fixed assets to ensure the company is compliant with national and international regulations.”
Asset management and tracking is another vitally important task keeping companies both in regulation compliance and more importantly, knowledgeable about their own assets. You don’t know what you can’t see!
Central to any inventory tracking software system should be a powerful, centralised database which provides controlled access for all parties that require it. Companies that utilize strategic planning software, instead of just spreadsheets, realize better results easier than ever before.
This article examines the phenomenon of bounded awareness – when cognitive blinders prevent a person from seeing, seeking, using, or sharing highly relevant, easily accessible, and readily perceivable information during the decision-making process. The article uses Merck, (makers of the drug Vioxx – which now is known to have caused cardiovascular troubles in over 14% , and “serious problems” in another 2.5% of patients), as an example of how decision makers often overlook the obvious and suffer terrible consequences in the process.
Quote:
“Social science research has shown that without realizing it, decision makers ignore certain critical information. The information that life serves is not necessarily the information that one would order from the menu,” notes Dan Gilbert of Harvard University’s psychology department, “but like polite dinner guests and other victims of circumstance, people generally seem to accept what is offered rather than banging their flatware and demanding carrots.”
This article reminds me of the phrase, “I can’t see the forest for the trees.” Why do we sometimes sit idle when the information is right in front of us? Perhaps it was a break-down in the strategic plan. I wonder if the executives at Merck ignored their quality controls, or had poor controls in place. Was there effective management software in place, or was it simply a case of intentional misrepresentation?