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How to take the complexity
out of your business and focus in
on your greatest offering
Sharpening your
Business target & image
Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008
The Focused Company, Mark Gottfredson, Bain & Company
1
Sharpening your
Strategy focus
A company’s core business is its most valued customers, its unique and most
differentiated assets and capabilities, and its most important products and
channels. There should be a clear image of what that core business is.
Source: The Focused Company, Mark Gottfredson, Bain & Company
Average company:
Invests to win in every
element of its business.
Focused company:
Invests to identify and
strengthen core capabilities.
2
Sharpening your
Customer focus
Average company: Has
plenty of data about its
customers but struggles to
find insights it can act on.
Source: The Focused Company, Mark Gottfredson, Bain & Company
Focused company: Knows its
core customers’ sweet spots
and designs its business around
those customers’ needs.
We have many customers and
have no idea who is important.
We all agree who our
major customer target is.
3
Sharpening your
Product concept focus
Focused company: Gives its core
customers exactly what matters
most to them. Is equally disciplined
in releasing new products and in
trimming those that customers no
longer value.
Source: The Focused Company, Mark Gottfredson, Bain & Company
This is exactly what
you need. Nothing
else is necessary!
Customers confused with
too many product choices
Average company: Tries to
appeal to everyone. Pushes
supply driven innovations on
the market.
4
Sharpening your focus by
Reducing complexity
Source: The Focused Company, Mark Gottfredson, Bain & Company
When companies attack
complexity, they nearly
always begin by focusing on
a specific problem.
What they find, often, is that
they don’t want to stop there
as they have learned how to
focus which leads them to
the next complex issue.
Your
target may
be too
vague!
5
Sharpening your
Customer focus
Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008
Define who your company serves in one sentence.
If your company’s customer was one person, what would he look like?
What would he worry about? What would he be most interested in?
What would his preferences be? What would his prejudices, habits,
goals or desires be?
6
Sharpening your
Customer focus
Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008
Discuss and agree on “WHO” your customer ideal is:
Discuss and agree
7
Determining
Customer focus
Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008
1. Gather all the key people that have the most experience in working with the
company’s current customers in a room for discussion.
2. Ask them to write down all their current customers (as many as possible)
3. Ask why these customers do business with us.
4. Have them close their eyes and imagine the ideal customer among the list.
5. It must be a single image of a person.
6. From the list, have the group decide who are the top three to five customers.
7. Get agreement that these are the top customers.
8. Ask the group to individually make a sentence in less than 15 words what they all
have in common.
9. Put all the sentences on the board and ask everyone what is similar with all the
sentences. Are there key concerns of all of them? What do they all want from us?
10. After much discussion of all the sentences, make one sentence that all can agree
represents the most important customer.
Who?
Form
image
8
Ideal customer
Determining
Customer focus
Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008
Example of a worldwide cutting tool supplier
Their main customer is….
“A very active professional cutting tool accessory national distributor that
desires quick response and good communication with suppliers”
Who?
9
Ideal customer
Sharpening your
Focus on your offering
Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008
Define “What” you offer that other companies do not? In one
sentence why does your company exist? What is their broad
experience of working with your company, not just your products?
What is the uncommon thing that your customers want that you
supply? What differentiates you from others?
10
Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008
In terms of what the customer hears, sees, senses, receives
and experiences from you, discuss and agree on “WHAT” your
company has to offer that others do not.
Discuss and agree
Sharpening the
Focus on your offering
11
Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008
1. You have a sentence describing your customer, his problems, concerns,
situation needs and desires.
2. What do you offer that he most desires?
3. What can you offer that no one else can?
4. If you have a group of 12 people or more separate them into four groups.
5. Have them discuss what their best customers like about working with
them.
6. Once they learn the main things they like, ask them to make a sentence
of 15 words of what they like.
7. Bring all four groups together and compare the sentences.
8. Look for similarities and make a combined sentences of what they offer.
9. Get confirmation that all agree this is their greatest offer.
What? Sharpening the
Focus on your offering
12
Ideal customer
Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008
What? Sharpening the
Focus on your offering
Example of a worldwide cutting tool supplier
Core Customer WHAT Statement
“We closely interact with distributors to supply quality cutting tool
accessories at the right time, quality, quantity and price.”
13
Everyone in our
company offers far
more detailed
product explanations
than anyone else.
Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008
What?
Sharpening the
Focus on your offering
14
You can control every customer experience
or just let it happen.
“How to persuade”
How do we convince them what we have is what they need?
It is the action you will take on the customers behalf.
Sharpening your
Customer interaction
How?
What we offer
will greatly
benefit you in
many ways!
15
Ideal customer
“How to persuade”
There is physical value and emotional value. You must act on both to
persuade customers and make your company special.
Sharpening your
Offering value
Tangible &
Emotional
I purchase based on
product functions.
I purchase based on style,
image and excitement.
16
How? Sharpening the
Contact impression
Example of a worldwide cutting tool supplier
Core Customer HOW Statement
“We build trust through regular discussion with distributors on order
status, do joint promotional activities and provide sales promotion
materials, train their sales people on product features and selling skills.“
17
Ideal customer
Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008
Discuss “HOW” you will convince customers
that you are different from others.
Sharpening your
Contact impression
How?
Discuss and agree
18
Ideal customer
Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008
1. You now have sentences of who your main customer is and what he wants.
You also know what you offer him.
2. Now, discuss how you are different.
3. Again, if you have a group of 12 people or more separate them into four
groups.
4. Have them discuss what special offering do they have that no one else has.
5. Once they learn the main things they offer that is different, ask them to
make a sentence of 15 words of what they are.
6. Bring all for groups together and compare the sentences.
7. Look for similarities and make a combined sentences of what makes them
different.
8. Last, get agreement that all agree this is their greatest offer.
Sharpening your
Contact impression
How?
19
Ideal customer
Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008
Sharpening your
Contact impression
How?
Example of a worldwide cutting tool supplier
Core Customer HOW Statement
“We earn the customers’ trust by regularly announcing what we have in
stock and what is quickly available. Then, the customer need not stock too
much but still will get items to service his customers.”
20
Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008
“Separating us from them” is a strategy
to make you exclusive, a company with a
one-of-a-kind offering.
Sharpening your
Separation activities
Creative
Acts?
21
In the way we act, look,
perform, we are different,
so no one can copy us!
Sharpening your
Separation activities
Creative
Acts?
Nothing surprising
22
“How to separate” us from everyone
else, but do it in a way that creates
and magnifies the company image
you want.
Ideal customer
Sharpening your
Separation activities
Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008
Procedures for finding “SEPARATION” from others over the long-term
in everything we do and say. Creating imaginative acts over time.
1. Make your uncommon offering well known to your core customer. Don’t
waste resources trying to become well known to everyone.
2. Create imaginative acts to be well known for your uncommon offering.
3. Next, every time there a customer contact (customer touch point), make
sure your uncommon offering is presented.
4. Don’t create imaginative acts just to be well known in general.
5. There are two types of creative acts, “small impression acts” and “explosive
dynamic acts”.
6. Create small low-cost imaginative acts that reinforce your uncommon
offering. Execute them with frequency, consistency and uniformity.
7. Invent a few explosive promotions. These should be done only one – four
times a year. They should be within your budget and administrative ability.
23
Creative
Acts?
Ideal customer
Sharpening your
Separation activities
Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008
24
Discuss “SEPARATION ACTIVITIES” that can be achieved in your company.
Remember, there are two types of creative acts, …..
“small low or no cost impression acts” that must occur every time the customer
comes in contact with the company
and “explosive dynamic acts” that must be budgeted for the year.
Discuss and agree
Creative
Acts?
Ideal customer
Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008
1. You now have sentences of who your main customer is and what he
wants. You also know what you offer him and how you will persuade
him.
2. Now, discuss how to separate yourself from others over the long-
term.
3. Again, if you have a group of 12 people or more separate them into
four groups.
4. First discuss both small low or no cost impression acts”. Make a list.
5. Second, discuss “explosive dynamic acts” for the next 12 months.
6. Last, get confirmation that all agree these are the best activities over
the year to spread the message and make you different that others.
Sharpening your
Separation activities
Creative
acts
25
Ideal customer
Sharpening your
Business target & image
To sharpen your business target gather
your top 5 – 10 company executives or
outside advisors to discuss these issues
and put in an action plan.
Sharpened
focus
&
image
26
Thank you

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FOCUS: Describe your company in one sentence

  • 1. How to take the complexity out of your business and focus in on your greatest offering Sharpening your Business target & image Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008 The Focused Company, Mark Gottfredson, Bain & Company 1
  • 2. Sharpening your Strategy focus A company’s core business is its most valued customers, its unique and most differentiated assets and capabilities, and its most important products and channels. There should be a clear image of what that core business is. Source: The Focused Company, Mark Gottfredson, Bain & Company Average company: Invests to win in every element of its business. Focused company: Invests to identify and strengthen core capabilities. 2
  • 3. Sharpening your Customer focus Average company: Has plenty of data about its customers but struggles to find insights it can act on. Source: The Focused Company, Mark Gottfredson, Bain & Company Focused company: Knows its core customers’ sweet spots and designs its business around those customers’ needs. We have many customers and have no idea who is important. We all agree who our major customer target is. 3
  • 4. Sharpening your Product concept focus Focused company: Gives its core customers exactly what matters most to them. Is equally disciplined in releasing new products and in trimming those that customers no longer value. Source: The Focused Company, Mark Gottfredson, Bain & Company This is exactly what you need. Nothing else is necessary! Customers confused with too many product choices Average company: Tries to appeal to everyone. Pushes supply driven innovations on the market. 4
  • 5. Sharpening your focus by Reducing complexity Source: The Focused Company, Mark Gottfredson, Bain & Company When companies attack complexity, they nearly always begin by focusing on a specific problem. What they find, often, is that they don’t want to stop there as they have learned how to focus which leads them to the next complex issue. Your target may be too vague! 5
  • 6. Sharpening your Customer focus Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008 Define who your company serves in one sentence. If your company’s customer was one person, what would he look like? What would he worry about? What would he be most interested in? What would his preferences be? What would his prejudices, habits, goals or desires be? 6
  • 7. Sharpening your Customer focus Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008 Discuss and agree on “WHO” your customer ideal is: Discuss and agree 7
  • 8. Determining Customer focus Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008 1. Gather all the key people that have the most experience in working with the company’s current customers in a room for discussion. 2. Ask them to write down all their current customers (as many as possible) 3. Ask why these customers do business with us. 4. Have them close their eyes and imagine the ideal customer among the list. 5. It must be a single image of a person. 6. From the list, have the group decide who are the top three to five customers. 7. Get agreement that these are the top customers. 8. Ask the group to individually make a sentence in less than 15 words what they all have in common. 9. Put all the sentences on the board and ask everyone what is similar with all the sentences. Are there key concerns of all of them? What do they all want from us? 10. After much discussion of all the sentences, make one sentence that all can agree represents the most important customer. Who? Form image 8 Ideal customer
  • 9. Determining Customer focus Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008 Example of a worldwide cutting tool supplier Their main customer is…. “A very active professional cutting tool accessory national distributor that desires quick response and good communication with suppliers” Who? 9 Ideal customer
  • 10. Sharpening your Focus on your offering Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008 Define “What” you offer that other companies do not? In one sentence why does your company exist? What is their broad experience of working with your company, not just your products? What is the uncommon thing that your customers want that you supply? What differentiates you from others? 10
  • 11. Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008 In terms of what the customer hears, sees, senses, receives and experiences from you, discuss and agree on “WHAT” your company has to offer that others do not. Discuss and agree Sharpening the Focus on your offering 11
  • 12. Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008 1. You have a sentence describing your customer, his problems, concerns, situation needs and desires. 2. What do you offer that he most desires? 3. What can you offer that no one else can? 4. If you have a group of 12 people or more separate them into four groups. 5. Have them discuss what their best customers like about working with them. 6. Once they learn the main things they like, ask them to make a sentence of 15 words of what they like. 7. Bring all four groups together and compare the sentences. 8. Look for similarities and make a combined sentences of what they offer. 9. Get confirmation that all agree this is their greatest offer. What? Sharpening the Focus on your offering 12 Ideal customer
  • 13. Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008 What? Sharpening the Focus on your offering Example of a worldwide cutting tool supplier Core Customer WHAT Statement “We closely interact with distributors to supply quality cutting tool accessories at the right time, quality, quantity and price.” 13
  • 14. Everyone in our company offers far more detailed product explanations than anyone else. Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008 What? Sharpening the Focus on your offering 14 You can control every customer experience or just let it happen.
  • 15. “How to persuade” How do we convince them what we have is what they need? It is the action you will take on the customers behalf. Sharpening your Customer interaction How? What we offer will greatly benefit you in many ways! 15 Ideal customer
  • 16. “How to persuade” There is physical value and emotional value. You must act on both to persuade customers and make your company special. Sharpening your Offering value Tangible & Emotional I purchase based on product functions. I purchase based on style, image and excitement. 16
  • 17. How? Sharpening the Contact impression Example of a worldwide cutting tool supplier Core Customer HOW Statement “We build trust through regular discussion with distributors on order status, do joint promotional activities and provide sales promotion materials, train their sales people on product features and selling skills.“ 17 Ideal customer
  • 18. Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008 Discuss “HOW” you will convince customers that you are different from others. Sharpening your Contact impression How? Discuss and agree 18 Ideal customer
  • 19. Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008 1. You now have sentences of who your main customer is and what he wants. You also know what you offer him. 2. Now, discuss how you are different. 3. Again, if you have a group of 12 people or more separate them into four groups. 4. Have them discuss what special offering do they have that no one else has. 5. Once they learn the main things they offer that is different, ask them to make a sentence of 15 words of what they are. 6. Bring all for groups together and compare the sentences. 7. Look for similarities and make a combined sentences of what makes them different. 8. Last, get agreement that all agree this is their greatest offer. Sharpening your Contact impression How? 19 Ideal customer
  • 20. Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008 Sharpening your Contact impression How? Example of a worldwide cutting tool supplier Core Customer HOW Statement “We earn the customers’ trust by regularly announcing what we have in stock and what is quickly available. Then, the customer need not stock too much but still will get items to service his customers.” 20
  • 21. Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008 “Separating us from them” is a strategy to make you exclusive, a company with a one-of-a-kind offering. Sharpening your Separation activities Creative Acts? 21 In the way we act, look, perform, we are different, so no one can copy us!
  • 22. Sharpening your Separation activities Creative Acts? Nothing surprising 22 “How to separate” us from everyone else, but do it in a way that creates and magnifies the company image you want. Ideal customer
  • 23. Sharpening your Separation activities Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008 Procedures for finding “SEPARATION” from others over the long-term in everything we do and say. Creating imaginative acts over time. 1. Make your uncommon offering well known to your core customer. Don’t waste resources trying to become well known to everyone. 2. Create imaginative acts to be well known for your uncommon offering. 3. Next, every time there a customer contact (customer touch point), make sure your uncommon offering is presented. 4. Don’t create imaginative acts just to be well known in general. 5. There are two types of creative acts, “small impression acts” and “explosive dynamic acts”. 6. Create small low-cost imaginative acts that reinforce your uncommon offering. Execute them with frequency, consistency and uniformity. 7. Invent a few explosive promotions. These should be done only one – four times a year. They should be within your budget and administrative ability. 23 Creative Acts? Ideal customer
  • 24. Sharpening your Separation activities Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008 24 Discuss “SEPARATION ACTIVITIES” that can be achieved in your company. Remember, there are two types of creative acts, ….. “small low or no cost impression acts” that must occur every time the customer comes in contact with the company and “explosive dynamic acts” that must be budgeted for the year. Discuss and agree Creative Acts? Ideal customer
  • 25. Source: The Inside Advantage, Robert Bloom, McGraw-Hill, 2008 1. You now have sentences of who your main customer is and what he wants. You also know what you offer him and how you will persuade him. 2. Now, discuss how to separate yourself from others over the long- term. 3. Again, if you have a group of 12 people or more separate them into four groups. 4. First discuss both small low or no cost impression acts”. Make a list. 5. Second, discuss “explosive dynamic acts” for the next 12 months. 6. Last, get confirmation that all agree these are the best activities over the year to spread the message and make you different that others. Sharpening your Separation activities Creative acts 25 Ideal customer
  • 26. Sharpening your Business target & image To sharpen your business target gather your top 5 – 10 company executives or outside advisors to discuss these issues and put in an action plan. Sharpened focus & image 26 Thank you