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WISDOM The first businesses were the public markets! Originally these markets were in town centers or mobile on camels and donkeys and horses. Many of these still exist today. The products sold at the market were available because of the original supply chain or created by the original manufacturing businesses. Think about the original spice trade as a supply chain! Think about the farmer, the blacksmith, the potter, the coopers as the original manufacturing businesses! Is it really different? Yes, I understand we have trucks, trains, planes, computers and the internet. But, we are still spending time and energy on satisfying our customers at a profit, just like they did! What changes is your customer's needs as categorized by the "W's" as discussed in the first focus (chapter) of Chris' book. Therefore, your business model must evolve (change) to keep up with customer satisfaction! The basis of the successful tool or method does not change. These successful tools and methods of change and improvement, can be the latest or from the 1950's, or 1990's or 2000's. What makes them successful is that they have a sound basis for any business at any time. These tools and methods may get re-packaged or configured differently. But, the basis that made that tool or method successful is still applicable - timeless. Don't think the latest tool or method is the best. They are simply the latest unless their basis is sound and timeless.
The following are some timeless and timely examples - The Toyota model was based on training by a business expert from the U.S. (Peter Drucker), after WWII. Toyota configured these concepts, tools and methods into their model for world domination of the auto industry. The model and concepts are still used today. Other businesses that tried to clone the model had difficulties, especially when they only used portions of the concepts. These other businesses culture and business models were different. However, businesses that were successful, understood and maintained the basis of the Toyota model. The Toyota model came back to the U.S. in the form of "Six Sigma", 20 year objectives and the tools of "Lean Transformation". Their basis is still the teachings of Peter Drucker during post WWII reconstruction of Japan. Japan became the second largest economy by being disciplined in maintaining the basis of these teachings and methods and tools! Google did not clone Yahoo! Google understood the internet search model and how Google could capitalize on it. Google was or is not Yahoo! But now, Yahoo may have to learn from Google to survive. Google had an understanding of two key aspects - the needs of their customers and the power of this new vehicle, the internet. Hologic and Gilead are medical technology businesses. Their business model is successful because, they have unique products no one else has. They understood the needs of their customer. If you clone their business model without a unique product, you probably will not achieve the same results. Urban Outfitters is a retail business model that also includes the Anthropology retail chain. Their product concept is not that different from the original Limited or GAP product concept of the 1970's and 1980's. However, Urban Outfitters has developed a business model for the 2000's. Their customer base is different and their locations are different! Therefore, Urban Outfitters and Anthropology is different. In retail, success is providing new, fresh, latest trend products and experiences, in new type locations. Networking! There are two aspects to networking. First, networking can create business contacts. Secondly, the power breakfast or power lunch can help you learn about other business' successes. The second aspect can be the most misleading. Because another business was successful in doing X, Y, and Z does not mean you would be successful! When you attend these functions, you need to hear why they did what they did. Not what they did! Other businesses were successful because, they understood their customers and their own business model. Then, they changed, adapted, or evolved appropriately. If you return to your business and attempt to do X, Y, and Z, you will probably have short lived results. You need to understand why should attempt to do anything! Then use whatever is appropriate to improve. Finally, always remember your business has a culture! Your people (business) needs to understand how to improve satisfaction of your external, internal and indirect customer! Also, when attempting change, improvement, or evolution of your business, your employees and management must own and relish in the change, improvement or evolution to better customer satisfaction. When adapting business ABC's success your people (business) need to understand why business ABC improved. Then, champion your own improvement of satisfaction of your external, internal and indirect customer! ADDITIONAL WISDOM You can't fail by trying You are not the Cause the Cause is the design of the business model, product or process. Books
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Copyright © 2007 Christopher Richard Hassold
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