staying in the helicopter - the key to profitable growth masterclass


- Ken Aikawa Chairman, Mitsubishi Heavy Industries

“We don’t give a hoot about things like return on equity”


Customers

People

Owner

Business

Accounting

Groom Business for Sale


Purpose Drivers

BrandSocial

Financial

Source:’On Purpose’ Shaun Smith/Andy Milligan


Purpose Drivers

BrandSocial

Financial


Commercial


Purpose Drivers

BrandSocial

Financial


NFP


US retail Price/gallon

Source: Cockeyed.com


Source:Treacey & Wiersma

Operational Excellence

Product Leadership

Customer Intimacy


Be the lowest cost provider in the marketOperational

Excellence


operational excellence

๏ Optimised supply chain processes

๏ Customer receives reliable high speed

transactions

๏ “Lean and mean” culture where

operational efficiency is highly rewarded

๏ Sell on price


Product Leadership

Push the boundaries of the market with innovative products or processes


product leadership

๏ 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


Customer Intimacy

๏ Develop the relationship with your chosen customers

that they most value


customer intimacy

๏ Focus on identifying customer problems and developing and implementing solutions ๏ Empowered customer-facing employees ๏ Carefully selected and nurtured clients


Market Leader

Fast Follower

Industry Average

Below average

Customer Intimacy

Product or Process

Innovation


A

A

A

B B

B C

C

C


Market Leader

Fast Follower

Industry Average

Below average

Customer Intimacy

Product or Process

Innovation



๏ 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?


Why Customers Leave

Perceived Indifference

68%

Unresolved Conflict

14%

Die/Insolvent 1%

Move 3% Influenced

Away 5%

Get a Better Offer 9%


Dissatisfied Satisfied Delighted

Not Met

Met

Better than At Risk

Looking

Gone

Loyal

At Risk

Looking

Advocate

Loyal

Product or Service

Process

At Risk


Number of Customers

Frequency

Average Order Value

£5000

2pa

1000

+3%

+3%

+10%


Number of CustomersFrequencyAverage

Order Value

£50002pa1000

+3%+3%+10%17%

GROWTH!


Number of Customers

Frequency

Average Order Value

£5000

2pa

1000

+3%

+3%

+10%


10090

Price

Profit

100

Volume

30% Gross Margin


10090

Profit

100

150

Price Volume


100110

Profit

100

30% Gross Margin

Price Volume


100110

Profit

100

75

Price Volume


Price/Perception Matrix™

Price

Perceived Added Value

Commodity

Buyer

High Added Value

Product/Service

You


Marketing Sales

create impact

Unaware Aware Comprehension Conviction Action

discuss specifics

build credibility

provide proof

The Universal Buying Process

© 2016 Roger Harrop Associates www.rogerharrop.com Source: Roland Berger Strategy Consultants

2030 Global Trends

Opp

ortu

niti

es

Risk

Demographics population 6.9bn to 8.3bn

ageing +5 years

urbanisation 59%

Globalisation TICKs gdp +7.9%pa

next 11 gdp +5.9%pa

Resources energy demand +26%

water demand +53%

commodities rare metals/food

Climate Change

CO2 +16%

warming +0.5ºC - 1.5ºC

ecosystem extremes

Technology diffusion high speed

innovation change lives

life sciences nbt

Knowledge know how 55% in 2ndary edu

gender gap narrowing

war for talent demand>supply

Responsibility cooperation nations

ngos +++

philanthropy +++


The Change House

The Contentment RoomSun

Lounge

The Denial Room

Dungeon of Denial

The Confusion Room

Paralysis Pit

Wrong Direction Door

The Renewal Room


Do I get in the helicopter often enough?

Is our overriding business purpose crystal clear?

Disciplines of market leaders - complete the questionnaire

Do we have a profitable growth strategy that builds on existing customers first?

Do we need to look at prices?

Are we targeting growth markets?

Are we clear exactly how we address each stage in the universal buying process?

3 golden rules of marketing

Complete my Profitable Growth Matrix™


How do we get into, and then stay in,

the room of renewal?


:: BUSINESS EXPERT :: AUTHOR :: INTERNATIONAL SPEAKER

www.rogerharrop.com

http://www.rogerharrop.com


Download slides here:

http://www.rogerharrop.com/knowledge_zone/members/

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