Profitable Growth Strategy (eBook)

7 proven best practices from German companies

Thomas Michael Hogg (Autor)

eBook Download: EPUB

2020 | 1. Auflage
152 Seiten
tredition (Verlag)
978-3-347-11783-9 (ISBN)

Infos

In this challenging book, Thomas Michael Hogg reveals the success formula of companies with high profitable growth. The typical key success factors of German companies are presented in an inspiring manner to motivate each decision maker taking action immediately. The 7-step profitable growth methodology published in this book is a proven blueprint implemented at leading enterprises in multiple countries and will transform your business mindset. Use this practical framework to scale your company achieving both top- and bottom-line growth. The content is targeted to help CEOs, Directors, and Entrepreneurs reach the next level and overcome the current crisis. 'The world's leading economies consist of a wide-ranging source of financially successful companies. The book carries insightful lessons for small and medium-sized companies about the importance of growth and competitiveness.' Lucero Alvarez Bloomberg TV / El Financiero The reader of this book will receive valuable insights, such as: -How to make profitable your unprofitable business -How to organize and structure your complex company -How to help a CEO stop being the bottleneck of the business -How to make your employees very productive and mak-ing your business improve sales -How to grow your business In brief, giving structure, fo-cus and profitable growth to a company. Thomas Michael Hogg is the founder of TMH Consulting & Investment Group and 20+ years-experienced advisor to global companies (such as adidas, PepsiCo, Johnson Controls) as well as to small and medium sized enterprises. Thomas Michael has collaborated cross-industry with more than 300 companies and has been featured in Bloomberg TV, CNN Expansión, Reforma, Milenio, and Business Club Magazine. Furthermore, he is a columnist for El Financiero.

Thomas Michael Hogg is Consultant and Mentor with more than 20 years of market and work experience in Germany, Mexico, Switzerland and the USA. Thomas is a columnist at El Financiero. He has been featured in Bloomberg TV, CNN Expansión, Milenio, Reforma, Negocios en Imagen, Mexico Industry, Cluster Industrial, among others. Thomas has been an advisor to global companies as PepsiCo, adidas, Campbell's Soup, Johnson Controls, Bulkmatic, among other multinational companies, SMEs and nonprofit organizations. He also has been consultant to the State Government of Nuevo Leon Mexico and the University Tec de Monterrey. Thomas is Founder and Managing Director of TMH Consulting & Investment Group (www.tmh.com.mx) and his business expertise is on: Strategic planning, Strategy and Business Model Design, Profitable Growth Company Design, Marketing & Sales Strategies (B2B + B2C), and International Market Research. Key industry insight: Consumer Product Goods, Sporting Goods, Retail, Automotive, Construction, Government Economic Politics, Management Consulting, Digital Marketing & Commerce, Education, Power & Electronic Industry, Restaurants, Telco., and Non- profit organizations. Thomas is an engaging and thought-provoking keynote speaker for several topics: -Profitable Growth strategies -Strategic Sales and Finance Planning -Strategic Planning for SMEs -Business Model Design -8 strategic selling competencies -Voice of the customer -Lessons learned at adidas -How to increase your competitiveness A husband and father, former semi-professional tennis and soccer player, Thomas holds an Executive MBA from the IPADE Business School and a Diploma from the Executive Leadership Program at Berkeley from Haas School of Business (USA). He is Diplom-Betriebswirt, international graduate of Business Management & Marketing from Pforzheim University (Germany), Tec de Monterrey (Mexico), and Cracow University of Economics (Poland). Among his social responsibility Thomas has served pro bono for more than 10 years as Board Member at TEDI (Down Syndrome), for more than 6 years at Unidos Somos Iguales ABP and for more than 3 years at Protege tu Corazon. Thomas also gained experience of organizing top management events in Germany and Latin America. For instance, events carried out with: Mexico's President, Dr. Ernesto Zedillo, Michael Porter, Google, Amazon, SAP, CEOs of Xerox / Dell / Novartis / Carrier Mx., among others.

Textauszug

1 – 8020 Focus and No distraction

Doing a successful and result-oriented job is not as easy as it seems. In 1999, I was stunned by the productivity level and focus of my work colleague at a bank in the South of Germany. Mrs. Muller, a trusted and long-time employee in that bank, was scanning and double checking all high-income transfer receipts. I noticed two aspects at the same time, there were many zeros on each receipt and there were only a few receipts scanned compared to the amount of numerous boxes of thousands of documents. I was confronted the first time with the 8020 concept. All of the high and important transfers were taken into account whereas the majority of transfers weren't included by Mrs. Muller. She only focused on the most important transfers. But as a matter of fact the real lessons learned from her was her focus on time and to deliver her tasks each day in 8 hours because she had a 40 hours week. Every day she performed and there was zero distraction to do what she had to do on her 8 hour-workday. She was delivering concentrated value by simply doing what she was supposed to do.

Sounds like a normal working performance. But, there is one common mistake I see day by day in the numerous offices I visit.

Employees are very often “just not” doing what they are supposed to do.

And even worse, their boss, the CEO, is very often neither doing what he/she is supposed to be doing.

They are trapped in the daily business and the incoming operative problems, mails, social media and non-strategic tasks. They are busier with efficiency than with effectiveness. Doing the right things versus doing things right.

CEO challenge

The key challenge for a CEO is to manage that he/she and importantly his/her team are focusing and executing on the right things each day. And that doing the right things impact financially on profitable growth. CEOs have to define where the company will be in 2 years and not take part in each single decision which his or her managers are responsible for.

CEOs have to define the long-term vision and the fundamental business model elements (for instance closing constant deals with their key account, developing and hiring an outstanding sales team, defining a required service level or establishing a best in class business practice or process) that provide the company a competitive advantage and generate financial value.

CEOs are responsible for the strategy.

Strategy is a synonym for renunciation. To focus, CEOs have to trade off.

How much time do you spent each day on operational issues?

How much of your time are you in the 8020 zone?

In 1906, Vilfredo Pareto noted that 20% of the population in Italy owned 80% of the property. He proposed that this ratio could be found continuously in the physical world and theorized it might indicate a natural law. For business, we know that in most cases the 8020 rule comes true:

o 80% of work is completed by 20% of your team.

o 20% of your best clients (or customer segment) makes 80% of your sales.

o 20% of your products makes 80% of your sales.

o 20% of your best sales reps makes 80% of your sales.

o 80% of your complaints come from 20% of your customers.

o 80% of value is achieved with the first 20% of effort.

o 80% of project politics come from 20% of your stakeholders.

o 80% of problems originate with 20% of projects.

o 80% of software problems are caused by 20% of bugs.

o 80% of customers only use 20% of software features.

16x Pareto Principle

80÷20=4

20÷80=0.25

4÷0.25=16 → 16x

The right focus with the Pareto principle to define and execute on key projects, clients, priorities, people, tasks, … brings you 16x more results = impact = success

I always include the 8020 principle in all strategy courses I give, as a key part to plan a successful year in order to deliver more customer + employee value and to receive more profitable growth for the company.

Through the years, I have seen that many CEOs, especially of SMEs, lack to see the BIG PICTURE; whereas the most successful CEOs have become 8020 masters because they lead their companies to achieve ambitious goals while focusing energetically on the most important actions to reach the higher goals, for instance:

- They visit and develop the relationship of their key clients and prospects to understand market needs and requirements.

- They talk frequently to and retain their key employees, especially key sales people.

- They are aware of disruptive trends and key challenges. Hereby, they are better prepared for an unpredictable crisis.

- They set clear goals and communicate the importance of strategy execution.

- They empower employees and show them the importance of the 8020 rule.

You need to focus perfectly on the 20% that will deliver you the 80% of the desired result. Every decision and action has to be made consciously if our time is used effectively.

These are 8 logic steps to become a successful "profitable growth company":

1. Set and remind the sales and EBITDA goals with the majority of your employees and quarterly reward those who achieved them.

2. Focus on high-gross margin projects, products, services and customers.

3. @CEO: Be the number 1 sales guy in the company that inspires customers to buy your products or services.

4. Hire and retain the best sales people in the industry.

5. Develop benchmark and 8020 sales & marketing channels. Very importantly embrace and dominate digital marketing because nowadays every client is digital.

6. Have strong partners and allies that help you to sell.

7. Cross-selling is key. Your adjacencies strategy has to be well defined and executed.

8. Measure and communicate your sales, profit and productivity indicators.

Now, let's have a look at one of the most admired companies in Germany. DAIMLER recently defined the following strategy focus*:

“Four future-oriented fields are set to radically change the nature of mobility: greater vehicle connectivity, advances in automated and autonomous driving, the development of digital mobility and transport services, and electric mobility.

Our objective is clear. We intend to continue to be a leading vehicle manufacturer while developing into a leading provider of mobility services. Every strategic action revolves around one thing, the customer. So also for the future, we will only be as successful as our products and services are in the market.

By means of five closely related components we are pushing forward the biggest changes in our company history - our 5C-strategy. We will be:

• strengthening our global core business (CORE)

• leading in new future fields (CASE)

• adapting our corporate culture (CULTURE), and

• strengthening our divisional structure (COMPANY).

• The benchmark for each of these strategic components is

our fifth and most important C: our CUSTOMERS.”

So, defending and strengthening your core business should always be the starting point of your strategy plan, unless you have proven data that your "core business" is threatened to lose more than 40% of sales and/or market share during the next 2 years. In times of disruption this might be a possible scenario but it is rare especially for medium sized enterprises. The core business is where your company generated the most gross profit during the last 3 years and strengthening this part is essential for maintaining profitable growth for the future.

Your culture and customer strategy focus are two more common key 8020s for every business. Culture is the values that define how everyone acts in your company regarding to customers, suppliers and other stakeholders. One of the most important organizational values is frugality. Rarely found in the today's company values but so crucial for profitable growth. Frugality means the quality of being economical with money. Being prudent and wise when it comes to investment and spending is a must have 8020 value. This is what my dad taught me and how German fathers educate their coming generations. At the end of the day, performance is key and you have to focus without distraction. More importantly, hire focused people.

Business owners are responsible for hiring focused people who are better than him or her and they should not be there to execute 80% of the whole work that by the way only results in 20% of the important results.

Never distract yourself from the 8020 zone.

Distraction leads to Procrastination

Please be aware that procrastination means postponing something. It is more and more common in a social world where the new generations loose so much time in consuming social media. But this time spent on video / audio may be out of the 8020 zone. So, a key challenge for Top Management in the next 5 to 10 years will be keeping people focused.

Let’s have a deeper look on why people are distracted or procrastinate key...

Produkt-Details

• Erscheint lt. Verlag: 22.9.2020
• Verlagsort: Ahrensburg
• Sprache: englisch
• Themenwelt: Sachbuch/Ratgeber ► Beruf / Finanzen / Recht / Wirtschaft ► Bewerbung / Karriere
• Themenwelt: Sachbuch/Ratgeber ► Beruf / Finanzen / Recht / Wirtschaft ► Wirtschaft
• Themenwelt: Wirtschaft
• Schlagworte: Business best sellers • Business Plan • CEO challenges • Covid-19 business plan • Finance Plan • German companies • Germany • How to get customers • How to get profitable • how to grow a business • how to innovate • How to motivate employees • how to start a business • Innovation • Profitable Growth • Quality management • Strategic Planning
• ISBN-10: 3-347-11783-2 / 3347117832
• ISBN-13: 978-3-347-11783-9 / 9783347117839