Tag Archives | revenue sources

Unshackle Your Team’s Creativity

Forward Business Planning

Have you ever wished for more input, insights, and ideas from the employees on your team?

Especially when our businesses are not performing as well as we’d like, we really need our teammates’ creative ideas. But when we gather a group and ask for ideas—whether for new product features, cost reduction ideas, or ways to improve service—we often see the same, recycled thoughts. Or ones that are only a smidgen better than what’s currently being done.

It’s not the employees’ fault. Humans are wired to keep doing what they’ve been rewarded for in the past. We are wired to protect our allies, and to avoid risk. These tendencies tend to hold us back when it comes to thinking in new ways. We are shackled by what’s worked before and have a hard time imagining a new way of doing things.

Here are a few techniques for helping your team break free to develop new ways of thinking about your business. Continue Reading →

Think Like an Explorer

Businessman Walking Outdoors

When I was sixteen, I went on a 2-week horseback trip in the Bighorn mountains of Wyoming. Each morning, we were given the coordinates of the location where we would camp that night, then turned loose with a map and compass. It was satisfying to arrive at the destination each night, after navigating our way through the mountains on our own.

Heading a new strategic direction—entering a new market, innovating a new product line, or changing the way we go to market—can feel like heading out into the wilderness. If we think like an explorer would, however, we can find our way to new sources of profit and growth.

Here are four points to keep in mind when navigating new strategic territory:

Continue Reading →

Is Your Corporate Culture Killing Innovation and Speed?

Easy win

In the past few years, Cisco, Coca-Cola, GE, IBM, MasterCard and other large companies have begun to launch “internal startups”—teams of employees who are sheltered from corporate rules and bureaucracy – to stimulate entrepreneurship and creativity, and infuse agility.

I spoke recently with the leader of a business that existed – for a while – as an internal startup within a large corporation.

The thinking was that employees within this quasi-startup would be free to focus on their goals. Team spirit and collaboration would replace hierarchy. Innovation, risk-taking, and learning from failure would flourish. Time formerly spent on meetings and emails with other corporate groups would be spent focusing on the customer.

All those good things came true, as long as the team was left alone. Continue Reading →

Growth and Profitability from Outlier Customers

Red umbrella fly out from crowds of black umbrellas

When you deal with the same types of customers, buying the same products and using them the same way, every day, it’s easy to be lulled into a smug confidence that you know everything you need to know about how customer needs are evolving.

Market research and management reporting systems are notorious for “averaging” all customers together. This blends specific needs into a bland summary of general information. As a result, critical “outlier” information gets lost in the mix, and companies lose out on valuable insights about customer needs.

They focus product and service enhancements on the “average” customer, and as long as she’s pretty happy, they think they’re doing well.

This is dangerous.

When we ignore the unusual customers – the ones at the edges of the bell curve – we miss important market signals.

These “outlier” customers are those who do things a little differently.  They may use our product or service in an unusual way, perhaps even in a way that’s never occurred to us.

Why is this important? Continue Reading →

Be Prepared and Take Action Quickly!

Take action key on a computer keyboard, business concept

One Monday in 2013, my husband and I spent the night in our car. Shortly after midnight, on our way home from playing hockey (this is a new sport for us, and great fun), we were amazed to encounter a huge traffic jam on Atlanta’s I-285. As we slowed to a stop, we saw a plume of fire as big as a house rising from a burning tractor-trailer a third of a mile ahead. Scenes from disaster movies looped in my head, and we talked about what to do if things got worse.

We passed the first hour reading books on our iPhones, then slept intermittently while waiting for the emergency workers to put out the fire and clear the wreckage. Someone from a nearby car borrowed our jumper cables, and Rob got out from time to time to walk ahead to see how things were progressing. We started the car periodically to warm up.

This incident reminded me how important being prepared can be. I was thankful to have a warm coat and sensible shoes but thought about a few things that we should keep in the car in the future. Snacks, water, a first-aid kit, at least a third of a tank of gas.

I thought, too, about business preparedness. Business people tend to enjoy planning for good things, like new products, revenue growth and hiring. It’s worth taking the time to prepare for unpleasant surprises as well, since you can tremendously improve your outcomes with a little planning.

Here are a few examples: Continue Reading →

Six Obstacles That Stop Agility In Its Tracks

Professional sprinter jumping over a hurdle

Are you struggling to make your company more agile?

In my work with organizations in virtually every industry, I find that business agility – the ability to spot and capitalize on new business opportunities as they emerge – is a capability that many companies aspire to, but few achieve.

What makes agility so elusive?

I’ve observed six primary obstacles to achieving agility. Continue Reading →

Look Outside Your Industry for Breakthrough Ideas

Be Different

I recently met with the leaders of a highly successful company. Sales growth, which had been strong for years, was headed into negative territory. They were desperate to find the next “big idea” that would put their company on track for future growth.

As they discussed potential innovations, the same tired, incremental ideas that had been tossed around for years kept resurfacing.

What they needed was something to shake up their thinking.

Continue Reading →

3 Mistakes in Managing Risk and Uncertainty

фотосессия во Вьетнаме

Not long ago, I stood on a pier near Cape Canaveral, Florida and watched a SpaceX rocket launch.

People were wearing SpaceX t-shirts and talking excitedly. SpaceX has brought the thrill back into space exploration.

Founder Elon Musk figured that by developing a way to reuse rockets, just like airplanes, he could reduce the cost of travel to space by a factor of a hundred.

He’s well on his way to achieving that. The company created the first commercial spacecraft in history to shuttle cargo to and from the International Space Station, and has already cut the cost of launching into space to less than a tenth of its prior level.

His ultimate goal, however, is to colonize Mars, making human life inter-planetary.

How’s that for a bold vision statement?

Continue Reading →

When you’re being attacked by new competitors, make a new friend

boy with headphones paid at gograph gg66916184

Every industry undergoes change.

The players who devise a different and better way of capitalizing on these changes are the ones that emerge as winners.

Few arenas have experienced more change in the last decade than the music industry. It was the first mass-media industry to be hammered by the digital revolution, shrinking from $25 billion in annual revenues in 2002 to only $15B in 2014.

This industry provides a dramatic example of how revenue sources can quickly shift as new businesses and business models are introduced into the market.

New ways to sell music appear every year, and old ones whither. Years ago, performers made their money selling albums, and went on tour mainly to promote those albums. Now the economics have flipped: concerts comprise more than half of industry revenues, and bands release albums mainly as marketing pieces to attract fans to fill concert halls.

Performers now have new sources of revenue, including merchandise sales, YouTube ads, licensing to television and film productions, iTunes downloads, and royalties from streaming music services such as Spotify, Rhapsody, and Muve Music, and from Internet radio stations including Pandora, Slacker, and iHeartRradio. Music industry revenue hasn’t just shrunk; it’s coming from completely new sources.

What should you do when your industry is shrinking, or when it’s being attacked by new competitors and new business models?

  • Offer new value to your customers.  In the 1930s, flour mills noticed that women were using flour sacks to make clothing, and so began to package their product in colorful printed fabric. Cleverly, the label was designed to wash out. Women entered nationwide sewing contests to show off their creations, and learned to select their brand of flour based on the most attractive fabric. The packaging became a large part of the value of the product. Is there new value you could offer customers?
  • Adopt new pricing models. What new ways could you price your offering? How about a subscription model? How about a low upfront price, followed by fees for ongoing services? How about offering a bundled price for a set of products? Changes such as these can not only stimulate demand for your product, they can encourage customers to buy what you want them to buy. One manufacturer I know increased its prices for low-volume, difficult-to-make products, and as a result, drastically improved its plant efficiency.
  • Ally with new partners. When you are being attacked, sometimes the best course of action is to find a new friend. Look to partners who can bring new technology, provide a new channel to market, or who can influence customers to choose your product. One company I know allied with a partner who could help them gain access to the Asian market. In return, the company helped its new partner to sell into its historic home turf.
When the ground is shifting under your feet, look for new ways to add value, and new alliances. Industry turmoil can create amazing new opportunities.

Adapted with permission of the publisher, Jossey-Bass, from The Agility Advantage: How to Identify and Act on Opportunities in a Fast-Changing World by Amanda Setili. Copyright (c) 2014 by John Wiley & Sons, Inc. All rights reserved. This book is available at all bookstores and online booksellers. Read a sample chapter here