Speaking at the University of Mississippi to the McLean Scholars Program on Entrepreneurship and Economic Development

1. Thinking Like a CEO
A Professional Development Workshop to Grow Your Business
09.24.16
Dr. Michael Burcham
michael@michaelburcham.com
www.michaelburcham.com
615.400.7662

2. 2
What is Asked Of You
WhatYouAre
CapableofDoing
Weakness
Power
Today We Are Going to Work on Your
Business Super Powers

3. 1. Core
Competency
2. Target
Customer
3. Define the
Problem
4. Business
Model
4 Steps to Analyze Your Business Readiness
What are You
Really Good at
Doing?
Who is the Ideal
Customer for
You?
What is Their
Pain that You
are Solving?
How do You
Make Money
Doing This?

4. What are your company’s Core Competencies?
A core competency is a deep proficiency that allows you to deliver
unique value. It’s a strength; a competitive advantage.
These are typically:
- Rare
- Valuable
- Hard to Imitate
- Sustainable
1Step

5. TOP 3 CORE COMPETENCIES OF MY BUSINESS
1.
2.
3.
RARE
Not everyone
has this skill,
know how, or
technology.
VALUABLE
My clients &
competitors
all know this
has value.
SUSTAINABE
I can keep
this edge for a
long time.
IMITATIONS
This is very
hard for
anyone to
copy.

6. Who is your Target Customer
Who is the organization’s customer today?
What are the characteristics and needs of the customer of the future?
Think about:
- Their preferences and characteristics
- The products they buy and the brands they love
- Their “pain” that you will solve
- What would cause them to “buy”
2Step

7. Find the Early Adopters and Innovators!
Source: Geoffrey Moore, Crossing the Chasm
IDENTIFY & MEET THE EARLY ADOPTERS
10

8. Define your Opportunity as a Customer Problem…
What is the “problem” you want to solve for your customers?
Does your ”solution” match their problem?
3Step

9. EXERCISE | Customer Problem Discovery
What is the problem you want to solve for your customers?
Who else is attempting to solve the problem.
Think about:
- Do I have any data to support my belief?
- Is this really the pain or just a symptom?
- How will I validate this with the customer?
- Does the customer want this pain solved?

10. How Do I Make Money Doing This?
Be certain that you are using a business model that is known among the
investment community and has successful companies using it.
• Subscription
• Transaction
• Bricks and Clicks
• Component Business Model
• Direct Sales
• Franchise
• Freemium
• Razor and Blades Model
• Intermediary Distribution Model
4Step

11. FRAMING THE BUSINESS | Part 1
Problem | Customer Pain
Solution | The Fix
Relevance | So What
Model | How Does This Make Money?

12. Distribution
Plan
Customer
Intimacy
Revenue
Drivers
Partners &
Outsourcing
Product or
Service
Cost
Drivers
Critical
Resources
Essential
Recipe
Target
Customer
REVENUES
How
We Make
Money
EXPENSES
The
Creation of
Margin
UPDATE YOUR BUSINESS MODEL DESIGN
64

13. Frame Your Future: Know the Business Drivers
4 Things Drive Revenue:
– The Product or Service
– Customer Adoption
– A Strong Distribution Channel
– Customer Intimacy
4 Things Drive Costs:
– Human Capital – Labor
– The Essential Ingredients for the Product or Service
– The Process or Value Chain
– Ability to Partner and Outsource
THE IDEA FRAME | WHAT IF

14. 1.PRODUCT
5. KEY INGREDIENTS
6. PARTNERS
7. ESSENTIAL RECIPE
8. COST MODEL 9. REVENUE MODEL
2. CUSTOMER
4. INTIMACY
3.DISTRIBUTION
Company Name Version Number Date
THE IDEA FRAME | WHAT IF
65

15. 1.PRODUCT
5. KEY INGREDIENTS
6. PARTNERS
7. ESSENTIAL RECIPE
8. COST MODEL 9. REVENUE MODEL
Whatisit?Whohasonelikeit?
Whynow?Whyus?
2. CUSTOMER
4. INTIMACY
3.DISTRIBUTION
Company Name Version Number Date
THE PRODUCT QUESTIONS
• What is it?
• Who has one like it?
• Why now?
• Why us?
THE IDEA FRAME | WHAT IF
66

16. 1.PRODUCT
5. KEY INGREDIENTS
6. PARTNERS
7. ESSENTIAL RECIPE
8. COST MODEL 9. REVENUE MODEL
Whatisit?Whohasonelikeit?
Whynow?Whyme?
2. CUSTOMER
What is the pain?
Who are early adopters?
What brands do they buy today?
What causes them to choose us?
4. INTIMACY
3.DISTRIBUTION
Company Name Version Number Date
THE CUSTOMER QUESTIONS
• Who are early adopters?
• What is their pain?
• How do they solve it today?
• What brands do they buy?
• What causes them to choose us?
THE IDEA FRAME | WHAT IF
67

17. 1.PRODUCT
5. KEY INGREDIENTS
6. PARTNERS
7. ESSENTIAL RECIPE
8. COST MODEL 9. REVENUE MODEL
Whatisit?Whohasonelikeit?
Whynow?Whyme?
2. CUSTOMER
What is the pain?
Who are early adopters?
What brands do they buy today?
What causes them to choose us?
4. INTIMACY
3.DISTRIBUTION
Howdocustomershearaboutus?
Howdotheybuy?
Isiteasytobuy?
Atwhatprice?
Company Name Version Number Date
THE DISTRIBUTION QUESTIONS
• How do customers hear of us?
• How do they buy?
• Do we make it easy to buy?
• At what price will they buy?
THE IDEA FRAME | WHAT IF
68

18. 1.PRODUCT
5. KEY INGREDIENTS
6. PARTNERS
7. ESSENTIAL RECIPE
8. COST MODEL 9. REVENUE MODEL
Whatisit?Whohasonelikeit?
Whynow?Whyme?
2. CUSTOMER
What is the pain?
Who are early adopters?
What brands do they buy today?
What causes them to choose us?
4. INTIMACY
3.DISTRIBUTION
Why do early adopters like us?
How do we engage them?
Will they become our
Ambassadors?
Howdocustomershearaboutus?
Howdotheybuy?
Isiteasytobuy?
Atwhatprice?
Company Name Version Number Date
CUSTOMER INTIMACY
• Why do early adopters like us?
• How are we engaging them?
• Will they become ambassadors?
THE IDEA FRAME | WHAT IF
69

19. 1.PRODUCT
5. KEY INGREDIENTS
What are the core elements of the product or service
that are unique to our team? What are the critical
ingredients in my design that we must own?
6. PARTNERS
7. ESSENTIAL RECIPE
8. COST MODEL 9. REVENUE MODEL
Whatisit?Whohasonelikeit?
Whynow?Whyme?
2. CUSTOMER
What is the pain?
Who are early adopters?
What brands do they buy today?
What causes them to choose us?
4. INTIMACY
3.DISTRIBUTION
What causes customers to like us?
How do we engage them?
Will they become our
Ambassadors?
Howdocustomershearaboutus?
Howdotheybuy?
Isiteasytobuy?
Atwhatprice?
Company Name Version Number Date
KEY INGREDIENTS
• What are the core elements of
the product or service that are
unique to our team?
• What are the critical ingredients in
my design that we must own?
THE IDEA FRAME | WHAT IF
70

20. 1.PRODUCT
5. KEY INGREDIENTS
What are the core elements of the product or service
that are unique to our team? What are the critical
ingredients in my design that I must own?
6. PARTNERS
Who are the key partners who will provide certain
outsource and supply chain services? What partner
brands help us look larger than life?
7. ESSENTIAL RECIPE
8. COST MODEL 9. REVENUE MODEL
Whatisit?Whohasonelikeit?
Whynow?Whyme?
2. CUSTOMER
4. INTIMACY
3.DISTRIBUTION
What is the pain?
Who are early adopters?
What brands do they buy today?
What causes them to choose us?
What causes customers to like us?
How do we engage them?
Will they become our
Ambassadors?
Howdocustomershearaboutus?
Howdotheybuy?
Isiteasytobuy?
Atwhatprice?
Company Name Version Number Date
PARTNERS
• Who are the key partners who
will provide outsource and supply
chain services?
• What are the brands that will help
us look larger than life?
THE IDEA FRAME | WHAT IF
71

21. 1.PRODUCT
5. KEY INGREDIENTS
What are the core elements of the product or service
that are unique to our team? What are the critical
ingredients in my design that I must own?
6. PARTNERS
Who are the key partners who will provide certain
outsource and supply chain services? What partner
brands help us look larger than life?
7. ESSENTIAL RECIPE
What is the perfect mix of the core elements? What
partnership | outsource activities that meet the
customers needs without being overly complicated?
8. COST MODEL 9. REVENUE MODEL
Whatisit?Whohasonelikeit?
Whynow?Whyme?
2. CUSTOMER
4. INTIMACY
3.DISTRIBUTION
What is the pain?
Who are early adopters?
What brands do they buy today?
What causes them to choose us?
What causes customers to like us?
How do we engage them?
Will they become our
Ambassadors?
Howdocustomershearaboutus?
Howdotheybuy?
Isiteasytobuy?
Atwhatprice?
Company Name Version Number Date
ESSENTIAL RECIPE
• What is the perfect mix of the
core elements?
• What partnerships will meet the
the customers needs without
being overly complicated?
THE IDEA FRAME | WHAT IF
72

22. 1.PRODUCT
5. KEY INGREDIENTS
What are the core elements of the product or service
that are unique to our team? What are the critical
ingredients in my design that I must own?
6. PARTNERS
Who are the key partners who will provide certain
outsource and supply chain services? What partner
brands help us look larger than life?
7. ESSENTIAL RECIPE
What is the perfect mix of the core elements I must
do? What partnership | outsource activities that meet
the customers needs without being overly
complicated?
8. COST MODEL
Are items (5-7) a reasonable cost structure? Can we
create a competitive margin? What is our best guess
of the margin?
9. REVENUE MODEL
Whatisit?Whohasonelikeit?
Whynow?Whyme?
2. CUSTOMER
4. INTIMACY
3.DISTRIBUTION
What is the pain?
Who are early adopters?
What brands do they buy today?
What causes them to choose us?
What causes customers to like us?
How do we engage them?
Will they become our
Ambassadors?
Howdocustomershearaboutus?
Howdotheybuy?
Isiteasytobuy?
Atwhatprice?
Company Name Version Number Date
THE COST MODEL
• Are items 5-7 a reasonable cost structure?
• Can we create a competitive margin?
• What is our best guess of the margin?
THE IDEA FRAME | WHAT IF
73

23. 1.PRODUCT
5. KEY INGREDIENTS
What are the core elements of the product or service
that are unique to our team? What are the critical
ingredients in my design that I must own?
6. PARTNERS
Who are the key partners who will provide certain
outsource and supply chain services? What partner
brands help us look larger than life?
7. ESSENTIAL RECIPE
What is the perfect mix of the core elements I must do
and the partnership | outsource activities that meet
the customers needs without being overly
complicated nor costly?
8. COST MODEL 9. REVENUE MODEL
What can we charge for the product or service?
Based upon our costs, is the idea sustainable? Is it
investment worthy? Can it scale and grow?
Whatisit?Whohasonelikeit?
Whynow?Whyme?
2. CUSTOMER
4. INTIMACY
3.DISTRIBUTION
What is the pain?
Who are early adopters?
What brands do they buy today?
What causes them to choose us?
What causes customers to like us?
How do we engage them?
Will they become our
Ambassadors?
Howdocustomershearaboutus?
Howdotheybuy?
Isiteasytobuy?
Atwhatprice?
Do items (5-7) create an affordable cost structure?
Can I create a competitive market margin for the
product or service at the price I can charge? What is
my best guess of the margin?
Company Name Version Number Date
THE REVENUE MODEL
• What can we charge for the product or service?
• Based upon our costs, is the idea sustainable?
• Is it investment worthy?
• Can it scale and grow?
THE IDEA FRAME | WHAT IF
74

24. PEOPLE
Organizational Models
Executive Support
Recruiting
Employee Activation
Productivity
Culture
Operational
Readiness
PROCESS
Governance
Customer Onboarding
Delivery Workflows
Scale & Expansion
Measurement
Reporting
TECHNOLOGY
Metrics Application
Sales CRM
Relationship Management
Tracking
Enterprise Software
24

25. Reinvent
Adjust Features
Emotional
Rational
LevelofDisruption
DISRUPTIVE INNOVATION
Change Story
Change Key Words
25

26. 10 TYPES OF INNOVATION
Inside-out Outside-in
Process Offering Delivery Finance
Innovation
Process
Core
Process
Product | Svc
Performance
Service
System
Customer
Service
The Delivery
Channel
The
Brand
Customer
Experience
Business
Model
Value
Network
how a company
organizes to support
innovation
proprietary
processes
that add value
basic features,
performance,
and functionality
extended system that
surrounds an offering
how you service
your customers
how you create an overall
experience for customers
enterprise structure
and value chain
how the
enterprise
makes money
how you connect
your offerings to
your customers
how you express
your offering’s
benefit to customers
26

27. 1. Industry Players
2. Funding
3. Public Policy
4. Technology
5. Customers
6.Accountablity | Safety
3 KINDS OF INNOVATION and 6 FORCES
HERZLINGER’S MODEL OF INNOVATION
A. The ways
customers
use the
innovation
B. The
technology
that leads
innovation
C. New
business
models of
innovation