In order for a company to be truly successful she needs to meet the following challenges:
- To be focused
- To be totally aligned – every single employee in the company should know where they wish to go, what are the right set of behaviours and which are not.
- To connect to her customers on an emotional level – Simon Sinek is famous for proving that “People don’t buy what you do; they buy why you do it. And what you do simply proves what you believe”
In this short article I’m going to explain the 3 questions that a company should find answers
so she can meet those challenges.
This article is the 2nd part in a series of articles on how to achieve a long-term business success
The 1st part explained how to Fully Understand your Business Reality
the following articles will describe more about the product strategy, blue oceans, innovation and disruption
(You’re most welcome to subscribe to get notified once the other parts are published )
So…after we understood the customers, what they actually want, the competitors and your potential business partners
it’s time to dive deep into the 3 layers that describe the essence of your company:
STEP #1: WHY does your company exist?
What is your mission? This isn’t about making money – that’s a result.
The mission of any company is to satisfy the Job-To-Be-Done of her customers.
The Allstate Corporation is the largest publicly held personal lines property and casualty insurer in America. As of year-end 2016, Allstate had $178.3 billion in total assets.
One of the reasons that helped them become the successful company they are is that they understood that people have a Job-To-be-Done for “Living life to the full in spite of the risks and the uncertainty in the world”
They have defined their purpose accordingly : “We help customers realize their hopes and dreams by providing the best products and services to protect them from life’s uncertainties and prepare them for the future”
And the whole company is focused around that JTBD.
Their culture, the way they make decisions and even their marketing…look at this great commercial as an example:
Here is the Why/Purpose/Mission of some other companies you may know 🙂
- Walt Disney: “To make people happy”
- Nike “to bring inspiration and innovation to every athlete in the world.””
- Monster.com – “we work to bring humanity and opportunity to the job market, to enhance lives, businesses and communities around the world.”
- Linkedin – “Creating economic opportunity for every professional”
- Quora – “To share and grow the world’s knowledge”
What is your WHY ?The purpose, The WHY of any company is to satisfy the Job-To-Be-Done of her customers Click To Tweet
STEP #2: How will you do it?
The HOW’s are what shape the company systems, processes and organisational culture.
- what special way will you use to get there ?
- what are your values?
- What will guide your decisions?
Let’s review some examples…
Des Traynor the CEO of Intercom in this excellent talk defines a value:
Values will guide you how to react and how to make decisions in common daily situations like:
Values are NOT things that anyone in the world will agree ( general truths):
They are much more specific !!!
A GOOD TEST for a value is to ask yourself:
“Can someone successfully build a company with the opposite value?”
If the answer is NO > it’s a general truth
if the answer is YES > it can be a value!
There should be 2 sets of values:
- General values in the company level that ALL employees should follow
- Specific Team values – each team should define additional values for the unique challenges that they face
if there are no values, how do you expect your employees to know how to act?
this will cause things to fall apart real quick
Let’s look at values of some other companies:
- We are constantly focusing on innovating.
- We believe in the simple not the complex.
- We believe that we need to own and control the primary technologies behind the products that we make, and participate only in markets where we can make a significant contribution.
- We believe in saying no to thousands of projects, so that we can really focus on the few that are truly important and meaningful to us.
- We believe in deep collaboration and cross-pollination of our groups, which allow us to innovate in a way that others cannot.
- We don’t settle for anything less than excellence in every group in the company
- We have the self- honesty to admit when we’re wrong and the courage to change.
- We are keen to maintain a culture of innovation, where ideas are given a fair hearing and an entrepreneurial attitude is rewarded.
- Bet365 prides itself on allowing individual staff to really make a difference and flourish.
William hill :
- Always thinking of new ways of doing things and never settling for average or second best
- Always looking to exceed our customer’s expectations
- Celebrating what people do to support each other, support the customers and support the business
If you’re just starting out, don’t invest too much in this for now,
Just write down YOUR TOP 3,
Your How, the values you truly care for and priorities will evolve and change as your company grow and mature.
STEP #3: Business Model
The subject of business model can be discussed over many articles,
- What are you creating?
- What are you giving to the world?
- What will be the set of products & services that will enable you to get your mission done?
- How does your company earn money ?
- What is your value proposition?
- What are the key resources? Key activities?
- What are the revenue streams? The cost structure?
But at this point, I just want to remind you that you should always consider to INNOVATE your business model:
when you invest time and define the 3 layers in the right way,
you’re raising significantly your chances for long-term success
I am curious to know…
What do you think of this framework? What do you love about it ? what you’re uncertain ? what do you strongly disagree ?
Do you have any questions? Any parts that are not clear enough ?
Please comment below or send me an email to alon@PronEnlighten.com
Learn more on how I’m helping good companies become Amazing >>
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