Creating A Commercial Focus By ‘thinking in 3D!’ Burton Street 21st July 2016

What We’re Going To Look At… How winning businesses establish a commercial focus in everything they do What this means for you and your organisation Some ideas to help you make it work (better) for you @andyhanselman

Who The Hell Is Andy Hanselman?

I Help Businesses And Their People Create Competitive Advantage By... Thinking in 3D!

Dramatically and Demonstrably Different! That means being... Dramatically and Demonstrably Different!

Why... 3D?

(and have been for over 25 years!) I research, write about, talk about and work with high performance businesses (and have been for over 25 years!)

Awareness Assessment Action

Get my slides and other resources at: andyhanselmanconsulting andy@andyhanselman.com

3D Discussion Time: What Do ‘Successful’ Business Have And Do?

Third Sector Organisations Have And Do? 3D Discussion Time: What Do ‘Successful’ Third Sector Organisations Have And Do?

Satisfied Customers

Sufficient ‘Delighted’ Customers

High Expectations ‘Disappointed’ ‘Devoted’ A ‘Poor’ Experience A ‘Great’ Experience ‘Delighted’ ‘Disaffected’ Low Expectations

L Sufficient ‘Devoted’ Customers Committed Maximised Motivated Effective People Maximised Financial Returns

L Y Sufficient ‘Devoted’ Customers Committed Maximised Motivated Effective People Maximised Financial Returns

The 7 Characteristics Of 3D Businesses! #1:Get That Vision Thing! #7: InnovatiON! #2:Think in 3D! #6: KeeP In Control! #3:Delighted Customers! #5: UBER Culture! #4:Forget CRM - MCR!

3 iDeas to consider.....

‘iDea 1’...

Remove The Barriers!

What are the common blockages to creating a ‘profit’ focus

It’s Misunderstood! Barrier 1:

“We’ve always done it like this!” It’s The Culture! Barrier 2: “We’ve always done it like this!”

Staff have no understanding Barrier 3: Staff have no understanding

profit! wages running costs customs and excise beer costs

What Are The Annual Costs Of: Salary and people costs £ Analysis £ Equipment costs £ Equipment hire £ Subsistence £ Fuel £ Motor expenses £ Marketing £ Office costs £ IT Computer Support and Consumables £ Premises costs £ Insurances £ TOTAL COSTS £

What Are The Annual Costs Of: Salary and people costs £426,000 Analysis £ 85,800 Equipment costs £ 26,300 Equipment hire £ 12,000 Subsistence £ 35,000 Fuel £ 9,250 Motor expenses £ 27,700 Marketing £ 8,000 Office costs £ 13,000 IT Computer Support and Consumables £ 3,200 Premises costs £ 33,700 Insurances £ 10,000 TOTAL COSTS £689,950

£57,496 a month! £13,268 a week! £2,654 a working day! £689,950 a year means… £57,496 a month! £13,268 a week! £2,654 a working day! £3,026 based on 228 days!

It’s just a Management Thing! Barrier 4:

It’s left to the Bean Counters! Barrier 5:

83% of decision makers in larger SMEs do not understand their company accounts often because the responsibility shifts towards outsourced financial support source: ClicData’s Intelligent Business Index May 2015

No concept of Value For Time! Barrier 6:

cannot accurately determine their 50% of businesses cannot accurately determine their profitable customers and products source: KPMG

No Processes! Barrier 6:

No Rewards! Barrier 7:

Unwillingness to say No! Barrier 8:

No Profit Improvement Plan! Barrier 9:

Profit focused organisations have....

Clear shared profit targets!

‘Buy in’ to those targets!

Clear routes to profitability!

Systems and processes for profit improvement !

Systems to keep in control!

How do you measure up against these factors?

‘iDea 2’...

Create Your Own Routes!

The routes to profit – some ‘options’

jean paul getty....... and strike oil!’ ‘rise early, work hard...

Increase Margins!

Increase Volumes!

Do Either Or Both!

Increase Margins increase volumes Cut Costs Increase Prices Increase Efficiency Current Customers increase volumes New Customers

Route 1: Reduce Costs!

Route 2: Increase Prices!

Route 3: Increase Efficiency!

Route 4: Sell More To Existing Customers!

Route 5: Sell To New Customers!

Download A Free Toolkit From andyhanselman.com/slides Create Your Own Routes! Download A Free Toolkit From andyhanselman.com/slides

‘iDea 3’...

Take action, not notes!

What are you going to Do about it?

Talk to me!!! 0114 243 4666 07710 452355 andy@andyhanselman.com Chat Today!

Andy’s 3D Thoughts...... 3 iDeas in 3 minutes in your inbox every Monday morning to help you Think in 3D!

Up and Coming Leaders Accelerate! UCLA! Helping ........ Up and Coming Leaders Accelerate! An innovative leadership and business development programme For ‘existing’ managers, ‘potential’ managers and ‘rising stars’! 7 ‘half day’ workshops spread over 5 months Improve leadership, commercial and personal skills Comprehensive workbooks, assessments and toolkits Working with other leaders and managers Online and website support! Starts In September!

“Vision without action is hallucination” Thomas Edison

“Take the first step in faith “Take the first step in faith. You do not have to see the whole staircase. Just take the first step” Martin Luther King

“Scare yourself, otherwise you’re not doing anything new” Mary Murphy Hoye, Head Of R & D, Intel

“Don’t just stand there….. do something!” Dick Dastardly

So... what are you going to Do?

People can be divided into three groups

Those who make things happen Those who watch things happen Those who ask ‘what happened’?

MISSING YOU ALREADY!

get my slides and other resources at: andyhanselmanconsulting andy@andyhanselman.com