After you have settled in with the critical characteristics in The Art of Leadership, we must begin the process of breaking down the Science of Business and determining how we are going to make money at what we do.
Most of these principles are very simple but somehow we manage to complicate them to a point that puts each of us, and the organization, into a constant frenzy.
While there is a lot of depth to each of these points, the basic philosophy of a financially successful business is as follows:
- You begin with a core strength, either historic, evolved or acquired
- From your core strength you build your products and services
- Effective product development is focused on market-tested customer interests
- This product or service becomes your solution
- You build a clear competitive differentiation that can be easily recognized and valued by your targeted buying influence
- Create the marketing message that positions your solution in the targeted buyers bulls eye
In addition, overwhelming Customer Service or Technical Support can offer great differentiation. You then identify markets where these targeted buying and specifying influences place a value on your solution. You build a bridge to your targeted buying influences by establishing a strong marketing message that promotes awareness of your competitive differentiation and then develop a sales channel that touches those enlightened buying influences with the information they need to make a good buying decision.
If each of those elements of the Science of Business were easy, everyone would be successful. It seems like everyone does try to do it, but only the very best can sustain consistent success & financial performance. The Foley Group will determine the critical factors within your company that drive the difference between wild success and mediocre performance.
Creating a recognizable competitive advantage
whether it’s with product performance or proactive customer service, the differentiated advantage offered is the difference in increasing volume, raising margin and profitability bottom line.
We start by creating a matrix, taking a hard look at your existing margins by each product/service group. We analyze the actual amount of SG&A expenses that are allocated to each product/service group. We look at three major initiatives; d how can we create strong competitive differentiation, where can margins be improved and where can SG&A expenses be streamlined.
We then look hard at where the high margin or potentially higher margin groups can expand volume through market penetration or geographic expansion. This analysis places a lot of information on the table that was previously anecdotal. It will allow your organization to set a strategic direction, create a laser-like focus of your limited resources and make key decisions that will positively impact growth and profitability.
Taking your core strengths and converting them to high margin, differentiated solutions for a targeted and verified group of buying influences is the simple elevator speech that a whole lot of activity swirls around. We will thoroughly cover each step and analysis each activity necessary to determine the right direction your company should take to make money on a sustainable basis.
While most of what we talk about is oriented toward the creation of the high performing company, the scoreboard for judging performance still revolves around managing the business by the numbers. Every strategic and tactical move that is made within the company will be measured against the short and long term impact on the BIG FOUR—–Revenue, Margin, SG&A Expenses and BOTTOM LINE PROFIT. We set the Big Four Strategic Model up and continue to measure ourselves against our financial objectives.