We live in a time of the most dramatic change in all of history. He was one of the first and the few men in all of human history to be called "the Great" during his lifetime and throughout the rest of history.
Leaders Take Command
Merger and Acquisition Strategy
The Major Competitor
He realized that Alexander was the first real threat to his power during his lifetime. This is the single greatest threat to my power in my lifetime and must be dealt with, or there will be challenges to Persian rule throughout the empire.”
Competitive Response
Alexander's main competitor for world domination, the largest empire in human history at the time, was led by Darius of Persia.
The Importance of a Plan
It covered the entire Middle East, including the Mediterranean, and reached present-day Pakistan and India. Alexander believed that if something happened to Darius tomorrow, the remaining armies would not stay and fight one after the other;
Take the Initiative
He took advantage of the confusion and dust cloud caused by the panicked chariots and saw his opportunity. Let's go and kill Darius!' Then he charged headlong into the center of the Persian army.
Do the Unexpected
The only part of Darius' entire Persian army that could resist Alexander was the small contingent of troops directly facing him.
One Great Strategy Changed the World
TWO The Principles of Effective Strategy
The Principle of the Objective
Employees knew exactly what was expected of them and when it would happen. He also knew that to be the master of the world, he must first and foremost conquer the Persian army.
The Principle of the Offensive
The Principle of the Mass
In business, the principle of mass requires that you become absolutely excellent in one product niche, and dominate that niche in terms of quality and service, before you think of expanding into other products, services or markets.
The Principle of Maneuver
The Principle of Concerted Action
They fought as a single unit, shoulder to shoulder, reacting and reacting quickly to the needs of each other in the course of battles and winning battles.
The Principle of Surprise
The Principle of Exploitation
THREE Five Questions in Strategic Planning
Strategic planning is the process of thinking through the action steps you will take to achieve your goals and objectives.
Five Questions to Ask and Answer
How will you get from where you are today to where you want to be in the future, with the people you have, the resources you have and the market you're working in. Start making a list of all the things you will need to do and all the steps you will need to take to get from where you are today to where you want to be at some point in the future.
Brilliant on the Basics
This is an amazing exercise for developing ideas and answers that you can use to achieve any goal. What additional skills, resources or money will you need to achieve your strategic goals at some point in the future?
FOUR The Key Players in Setting Strategy
The Power of the President
A Failure of Leadership
Lack of Support
Who Will Implement the Plan?
There is a simple rule in human interaction: There is a direct relationship between the amount of time people spend discussing and asking questions about an action and their degree of commitment to carrying out whatever decisions are made. The more you talk about an action plan, encourage input, ask and answer questions, and stimulate discussion, the more committed each person will be to making the strategy a success.
You Need Outside Help
Create the Right Environment
FIVE Values, Vision, and Purpose
The Fortunate 500
It has consistently been named one of the most admired companies in the world. Its success and standing in the global market is a testament to how closely it lives up to those values.
What Are Your Values?
Watson Sr., IBM's values have always been "excellent products, excellent customer service and respect for the individual." The company has been organized around these three principles since 1928.
What Would Others Say?
Values Create a Strong Foundation
What Is Your Vision?
What Would Customers Say?
What would you like them to say about you and your business in the future. What can you do starting today to ensure that people both outside and inside your company think of you and talk about you in a certain way.
Be a Fly on the Wall
Your reputation is determined by what customers, competitors, suppliers, outside vendors and the public say about you when they discuss your company, your products and your services among themselves.
Determine Your Purpose
This is an excellent starting point for determining what your values and vision should be. This enables you to explain to yourself and others what is important to you and what motivates you in life.
SIX Determine Your Corporate Mission
Define It Qualitatively
Your Umbrella Statement
Make It Clear
In times of turbulence and rapid change, it's often a good idea to revisit your mission statement. But your mission may need to change or be updated in the face of new realities.
The Right Combination
SEVEN Back from the Future
What Is Your Business?
Look at the Numbers
What’s Your Return?
The Customer Is King
Whatever you want to ship (including yourself) by any means of transportation, Canadian Pacific has a solution for you. Just as you can lose money on any product, you can lose money on any customer.
Your Market Position
Where Do You Want to Go?
Consider the Possibilities
What could you do differently or what new areas could you enter that would change your business. What new products and services could you develop and sell, and in what different ways and places.
Imagine No Limitations
Back-from-the-Future Thinking
EIGHT Strategic Areas for Consideration
Products and Services
Customers
However, in many cases today, companies identify the customer and the customer's exact needs and then tailor or reverse engineer the development of products and services based on what the customer says he or she wants. Companies move from “product development” to “customer development” and do not create the product until the customer has agreed to purchase it at a certain price.
Markets
Finances
People
Technology
Production Capability
Set Clear Goals
NINE The Driving Force: Key to Strategy
The Product or Service Driving Force
If you were an accounting or law firm, you would have a service-driven drive.
The Market Needs Driving Force
Technology-Driven Driving Force
Production Capability Driving Force
The Method of Sales Driving Force
The Method of Distribution Driving Force
The Natural Resources Driving Force
The Size/Growth Driving Force
For many businesses, their driving force may be their goals for sales growth and profitability.
The Return/Profit Driving Force
Determine Your Driving Force
TEN Four Central Concepts in Strategic
Planning
Know Where to Specialize
Choose Your Market
But these materials are all aimed at managers and executives on the one hand and entrepreneurs and business owners on the other.
Be Different from Your Competitors
Competitive Advantage
Select Your Ideal Customer
Focus and Concentrate
ELEVEN Concentrate on What You Do Well
The 80/20 Rule Revisited
Because you can't do everything, you need to focus on the few things you can do well and that represent the greatest potential for business and financial results. You need to focus and leverage your strengths to gain maximum advantage in the market.
Profit from the Core
Focus and concentration on your biggest opportunities and areas with the highest profit potential have always been the keys to financial success in business.
Distinctive Capabilities
TWELVE Adjacency Moves
Three Truths
In most cases, a repeatable formula is built on customer insights that can be applied to different products or customer segments. If customers buy this one product from your company, why wouldn't they buy this very related other product from you.
Profit Pools
These insights include understanding and evaluating customer cost and profit economics, purchases related to lifecycle events, and share-of-wallet opportunities.
THIRTEEN Have a Divestment Strategy
What Should You Downsize, Discontinue, or Eliminate?
His revolutionary strategic directive for GE was: “We will be number one or number two in every market, or we will exit that market completely and concentrate on those markets where we can be number one or number two.” The decision to withdraw from or exit a market where you can't win is often the most intelligent strategic decision of all.
The Law of the Excluded Alternative
Managerial Ego
FOURTEEN Zero-Based Thinking
Beware the Comfort Zone
Taking on something for the first time usually means you have to avoid other things to free up time and resources. Zero-based thinking is an essential tool for keeping your mind sets clear and freeing up your thinking for the future.
Ask the Key Questions
Determine Your Sunk Costs
Your job is to focus on the possibilities of the future instead of allowing yourself to be preoccupied with past problems or bad decisions. Your job is to think about the future that you can control and do something about, rather than thinking about past events that you have no control over and can't change.
Right or Wrong Decisions
How Can You Tell?
Don't wish or hope that things will get better or that the problem will go away. Instead, look directly at the stressful situation and ask, “If I weren't in this situation right now, knowing what I know now, would I dive back into it today?”
It Is Too Late
If the answer is "No!" then the next question is: "How do I get out of this situation and how quickly?".
FIFTEEN Take the Offensive
Business Model Innovation
If your business continues to grow in a healthy manner, your business model is probably suitable. If your business isn't growing in a healthy and consistent manner, it may be time to question your business model.
A Better Way: Free Product
Give It Away?
Take the Lead on Quality
Quality managers in all areas are also the most profitable companies in all areas.
Reinvent Yourself
Today, the retailer with the highest profit per square foot in the world is Tiffany & Co. look beyond what is happening now to what will happen in the future.
After the Fire
SIXTEEN Flexibility Wins
Avoid Limited Thinking
Prepare Contingency Plans
Flexible Operations
Going Small
SEVENTEEN Create New Markets
Four Paths
Although this may seem like the easiest path, it is actually quite difficult because in order to create a new market, you need to break from what has been done in the past. Here, just like with path 2, you have the advantage of building on some knowledge, but with room to innovate.
Key Success Factors
Have customers describe what they think would be the best solution to their problems; those solutions will point to new products or services. Not every opportunity will be worth paying attention to, especially if it dilutes your efforts.
Blue Ocean Strategy
EIGHTEEN Choose Your Competition
Identify Your Competitors
Any Alternate Use of Funds
Choose Your Competitor
Position Yourself as the Superior Choice
Then, conduct market research among customers and potential customers to ensure you are correct in your conclusions. You won't be sure you're doing and offering the right combination of benefits and pricing until you enjoy steady increases in sales and profitability in your business.
NINETEEN Engage the Entire Company
Business Units Working Together
Motivate Employees
Monitors will give you the feedback you need about how well your people are actively supporting the strategy. Take on your leadership responsibilities, model the right behavior and establish an honest relationship with your subordinates.
Embedding the Strategy Throughout the Company
First, strategic goals and direction are not always easy to communicate, and as the strategy is passed from one person to another, it is likely to become more confused and garbled. If the CEO takes the time to speak directly with front-line employees, those employees know the topic is important.
TWENTY Organizational Structure Makes a
Difference
If your strategy is to be a specialized company, making something for a certain type of customer, or you have a geographic focus, then you probably want to be decentralized into different business units. If you have a differentiation strategy (see Chapter Ten), you need to create different business divisions for your high-end or low-end products.
The Centralization Decision
For global operations, your structure must be able to support your products worldwide, but at the same time you must take into account different geographic preferences. Strategy is formulated at the top, but it must be endorsed by everyone in the entire organization.
TWENTY-ONE The Five Phases of Strategy
Look Inside
New regulations or changes in your industry will push you to achieve your strategies within a specific time frame. Beliefs drive your organization's daily behavior and practices and build your organization's culture.
Driving Force
The second stage is strategy formulation - that is, you choose the strategy to follow. The market needs driving force requires you to focus on your markets and perhaps find new products or services.
The Product/Market Matrix
Strategy Implementation
Monitor, Review, Updates
INDEX
ABOUT THE AUTHOR
Free Sample Chapter from TurboStrategy by Brian Tracy
Introduction
Your Answers Have Changed
Many executives are like the driver whose companion looks at the map and says, “We're on the wrong road!” Many executives are having “great time” and working harder and harder to achieve results, but they are on the wrong track and going in the wrong direction in terms of today's reality.
Flexibility Is Essential
You need to step back and examine your assumptions to see if they are still valid or not. With the new information, you need to create a strategic plan that is relevant and applicable to your situation today.
The One True Measure
Whenever she came into the offices, she would meet with her managers or walk around and ask, "What's working?". Then she started asking, "Who's working?" and "Who doesn't work?" In short, she changed the staff so that everyone could do what they were hired to do and make a valuable contribution.
Practice This Method Daily
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