Profitable Growth Masterclass

Staying in the Helicopter® - the key to profitable purpose growth for all times disciplines of market leaders profitable growth people change house © Roger Harrop Associates 2010 www.rogerharrop.com

“we don’t give a hoot about things like return on equity” - Ken Aikawa Chairman, Mitsubishi Heavy Industries © Roger Harrop Associates 2010 www.rogerharrop.com

owner people business groom business customers for sale accounting © Roger Harrop Associates 2010 www.rogerharrop.com

30 20$ coke 10$ gasoline milk 0$ evian water us retail price/gallon budweiser © Roger Harrop Associates 2010 www.rogerharrop.com Source: cockeyed.com

operational product customer excellence leadership intimacy Source:Treacey & Wiersma © Roger Harrop Associates 2010 www.rogerharrop.com

the essence: operational be the lowest cost excellence provider in the market © Roger Harrop Associates 2010 www.rogerharrop.com

optimised supply chain processes customer receives reliable high speed transactions “lean and mean” culture where operational efficiency is highly rewarded © Roger Harrop Associates 2010 www.rogerharrop.com

the essence: push the boundaries of the market with innovative products and processes product leadership © Roger Harrop Associates 2010 www.rogerharrop.com

focus on invention, product development and market exploitation products and services generate anticipation and excitement among customers rewards for new product successes and toleration of failures © Roger Harrop Associates 2010 www.rogerharrop.com

the essence: develop the relationship with your chosen customer customers that they most value intimacy © Roger Harrop Associates 2010 www.rogerharrop.com

focus on identifying customer problems and developing and implementing solutions empowered customer-facing employees carefully selected and nurtured clients © Roger Harrop Associates 2010 www.rogerharrop.com

product & customer process operational intimacy innovation excellence market A B C leader fast follower A industry average B C B below industry average C A © Roger Harrop Associates 2010 www.rogerharrop.com

now product & customer process operational intimacy innovation excellence market leader fast follower industry average below industry average © Roger Harrop Associates 2010 www.rogerharrop.com

target product & customer process operational intimacy innovation excellence market leader fast follower industry average below industry average © Roger Harrop Associates 2010 www.rogerharrop.com

product & customer process operational intimacy innovation excellence market leader fast follower industry average below industry average © Roger Harrop Associates 2010 www.rogerharrop.com

what does the heartbeat of the business say about where the focus and energy is? have you made a clear choice? are you targeting customer groups who value this? is the organisation aligned with the strategy? are you always looking to move the benchmarks upwards? do you have mechanisms in place to generate ideas for new sandboxes? © Roger Harrop Associates 2010 www.rogerharrop.com

why customers leave 1% die/insolvent 3% move 5% influenced away get a better deal 9% 68% 14% unresolved conflict perceived indifference © Roger Harrop Associates 2010 www.rogerharrop.com

product or service better AT RISK LOYAL ADVOCATE than SEARCHING AT RISK LOYAL met not GONE SEARCHING AT RISK met dissatisfied satisfied delighted © Roger Harrop Associates 2010 www.rogerharrop.com process

+3% 1000 number of customers +10% 4 pa frequency +3% KWD3000 average order value © Roger Harrop Associates 2010 www.rogerharrop.com

100017% +3% +10% +3% 2 £5000 pa GROWTH ! Number of Average Frequency Customers Order Value © Roger Harrop Associates 2010 www.rogerharrop.com

30% gross margin 100 100 90 prices volume profit © Roger Harrop Associates 2010 www.rogerharrop.com

150 100 100 90 prices volume profit © Roger Harrop Associates 2010 www.rogerharrop.com

30% gross margin 110 100 100 prices volume profit © Roger Harrop Associates 2010 www.rogerharrop.com

110 100 100 75 prices volume profit © Roger Harrop Associates 2010 www.rogerharrop.com

perceived high added added value product value or service E R BUY U YO commodity product © Roger Harrop Associates 2010 www.rogerharrop.com price

the universal buying process unaware aware comprehension conviction action create discuss build provide impact specifics credibility proof MARKETING SALES © Roger Harrop Associates 2010 www.rogerharrop.com

product knowledge sales skills enthusiasm product belief © Roger Harrop Associates 2010 www.rogerharrop.com

salesperson’s time travel 25% & admin travel 15% service 52% & admin active 35% 15% service selling 60% active 23% selling 33% 25% prospecting 10% prospecting Source: Ericsson © Roger Harrop Associates 2010 www.rogerharrop.com

markets to target Chocolate Lotteries BRIC Shoe & watch repair Video conferencing Brazil Food production Healthcare Russia Champagne Private banks India Energy Public service China Standby power Top end leisure GCC Computer gaming Bottom end leisure UAE Top end retail Contract cleaning Bahrain Discounters Petfood Saudi Arabia E commerce Open source Qatar McDonalds software Oman Takeaways Garden Centres Iran Spam Comedy Clubs Ukraine & E Europe TV rental Laxatives Turkey Outsourcing John Lewis Panama Public transport Apple Mexico Security Lego Africa Culture Entrepreneurs © Roger Harrop Associates 2010 www.rogerharrop.com

case study © Roger Harrop Associates 2010 www.rogerharrop.com

culture/ people atmosphere skills profiles team performance direction mutual trust structure respect organisation support motivation relationships leadership © Roger Harrop Associates 2010 www.rogerharrop.com

belbin team roles single minded clarifies goals creative self starting promotes unorthodox explores decisions solves opportunities, dedicated focussed on the delegates problems objective develops contacts challenging dynamic specialist chair plant resource disciplined shaper reliable investigator turns ideas into actions completer implementer finisher detail person makes team deliver on time team monitor worker evaluator sees all perceptive options diplomatic co- logical opererative analytical © Roger Harrop Associates 2010 © Belbin Associates www.rogerharrop.com

completer shaper finisher monitor evaluator chair implementer plant team resource worker investigator © Roger Harrop Associates 2010 www.rogerharrop.com

ANDREW VIMAL VIMAL DEREK Specialist Completer Shaper TOM SHANE Finisher CRAIG Monitor IAN TOM Evaluator Chair Implementer SHANE Plant JIM Team Resource Worker IAN Investigator CRAIG ANDREW JIM © Roger Harrop Associates 2010 www.rogerharrop.com

DAVID C GRAEME PHILIP Specialist Completer Shaper ANDREW Finisher KEVIN Monitor Chair DAVID T Evaluator Implementer ANDREW Plant PHILIP GRAEME Team Resource DAVID T Worker Investigator DAVID C KEVIN © Roger Harrop Associates 2010 www.rogerharrop.com

the change house™ loft of consolidation the contentment the renewal room room sun lounge the denial the confusion room wrong room direction door dungeon paralysis of denial pit © Roger Harrop Associates 2010 www.rogerharrop.com The Change House Model©™ is used with permission of The Change House Limited (www.thechangehouse.com)

is our overriding business do we have an adequate mix purpose crystal clear? of Belbin profiles in our teams? disciplines of market leaders - complete the questionnaire am I clear exactly how we address each stage in the universal buying process? do I have a profitable growth strategy that builds on existing customers first? 3 golden rules of promotion do I need to look at prices? why should I buy from me? are we targeting growth complete my profitable markets? growth matrix™ © Roger Harrop Associates 2010 www.rogerharrop.com

Staying in the Helicopter® - your Profitable Growth Matrix™ regain increase smart’ Last Full and order price sales and belbin Next Full retain lost value and Year $k Year increases marketing selected frequency Forecast Result customers teams SALES Operating Profit Return on Sales % © Roger Harrop Associates 2010 www.rogerharrop.com

www.rogerharrop.com CONSULTANT :: AUTHOR :: INTERNATIONAL SPEAKER :: BUSINESS ADVISOR © Roger Harrop Associates 2010 www.rogerharrop.com

Profitable Growth Masterclass

by rogerharrop on May 28, 2010

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