BTT 047 | Breakthrough Business Strategies – Part 2




Business Transformation Tools: Business & Process & Project Management: Lean Six Sigma: Strategy: Innovation: Career Success: Blog: Podcast » Basic Podcast Feed show

Summary: Strategic Questions: What is the reality of your business today? When I ask that question to most of my clients and other business people, they immediately start discussing the market, the tough economy, the upturns or downturns… Basically, they talk about everything except their actual business reality. What determines your business reality is the internal constraint: There are 4 phases of the business constraint cycle. The phase you are in determines your reality. It is the most important lever for you to push on to make a breakthrough transformation. When you are able to identify the dominant constraint, you can align the business to that constraint. Every aspect of your business, from marketing and sales strategy to operations, IT, HR, and supply chain should and must align or your business cycle will experience friction that slows and debilitates your company’s strategy. Business Constraint Cycle Tool Show Notes BTT 047 – Download Member Content Enhanced Podcast BTT 047 – Download Member Content Your constraint could be customer, cash, capacity, or capability. A healthy business will go through all 4 phases and mature from one to the next. Misalignment between your strategy and your business reality will lead to failure: In today’s show, we reveal the source of several mysteries in business. The mysteries all boil down to a misalignment between the strategy and the business’ internal reality. For example, have you ever wondered why organizations so often “reorganize,” and then fail. In fact, the failure rate is around 75%, they then need to reorganize again and again. Another mystery we address is why companies often grow and succeed only to stall out. Then, when a new company comes in and meets with success, the only difference was a change in the head positions. What really happened? The answer lies in the business constraint cycle. Today, we will also introduce you to STRATEGY STORM: SIGNALS – What are the tell tale signs of what constraint you are in or what constraint your are approaching? TRAPS – What are the traps that are common to businesses in a given constraint? OPTIONS – What are some of the breakthrough strategic options available within this constraint? REACTIONS – What are the expected internal and external reactions, and how can you METRICS – What are the leading and lagging indicators to drive the strategy. This new tool, you will discover, is at the heart of improving profits for your business. We encourage you to review the 4Ps which we introduced in some of our first and most fundamental shows to the business transformation community so that you will be able to learn to focus on what will make you and your team a long-term success. Best regards, Mike and Jay