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© 2016 Roger Harrop Associates www.rogerharrop.com
© 2016 Roger Harrop Associates www.rogerharrop.com
- Ken Aikawa Chairman, Mitsubishi Heavy Industries
“We don’t give a hoot about things like return on equity”
© 2016 Roger Harrop Associates www.rogerharrop.com
© 2016 Roger Harrop Associates www.rogerharrop.com
Customers
People
Owner
Business
Accounting
Groom Business for Sale
© 2016 Roger Harrop Associates www.rogerharrop.com
Purpose Drivers
BrandSocial
Financial
Source:’On Purpose’ Shaun Smith/Andy Milligan
© 2016 Roger Harrop Associates www.rogerharrop.com
Purpose Drivers
BrandSocial
Financial
Source:’On Purpose’ Shaun Smith/Andy Milligan
Commercial
© 2016 Roger Harrop Associates www.rogerharrop.com
Purpose Drivers
BrandSocial
Financial
Source:’On Purpose’ Shaun Smith/Andy Milligan
NFP
© 2016 Roger Harrop Associates www.rogerharrop.com
US retail Price/gallon
Source: Cockeyed.com
© 2016 Roger Harrop Associates www.rogerharrop.com
Source:Treacey & Wiersma
Operational Excellence
Product Leadership
Customer Intimacy
© 2016 Roger Harrop Associates www.rogerharrop.com
Be the lowest cost provider in the marketOperational
Excellence
© 2016 Roger Harrop Associates www.rogerharrop.com
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
© 2016 Roger Harrop Associates www.rogerharrop.com
Product Leadership
Push the boundaries of the market with innovative products or processes
© 2016 Roger Harrop Associates www.rogerharrop.com
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
© 2016 Roger Harrop Associates www.rogerharrop.com
Customer Intimacy
๏ Develop the relationship with your chosen customers
that they most value
© 2016 Roger Harrop Associates www.rogerharrop.com
customer intimacy
๏ Focus on identifying customer problems and developing and implementing solutions ๏ Empowered customer-facing employees ๏ Carefully selected and nurtured clients
© 2016 Roger Harrop Associates www.rogerharrop.com
© 2016 Roger Harrop Associates www.rogerharrop.com
© 2016 Roger Harrop Associates www.rogerharrop.com
© 2016 Roger Harrop Associates www.rogerharrop.com
Market Leader
Fast Follower
Industry Average
Below average
Customer Intimacy
Product or Process
Innovation
Operational Excellence
A
A
A
B B
B C
C
C
© 2016 Roger Harrop Associates www.rogerharrop.com
Market Leader
Fast Follower
Industry Average
Below average
Customer Intimacy
Product or Process
Innovation
Operational Excellence
© 2016 Roger Harrop Associates www.rogerharrop.com
๏ 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?
© 2016 Roger Harrop Associates www.rogerharrop.com
Why Customers Leave
Perceived Indifference
68%
Unresolved Conflict
14%
Die/Insolvent 1%
Move 3% Influenced
Away 5%
Get a Better Offer 9%
© 2016 Roger Harrop Associates www.rogerharrop.com
© 2016 Roger Harrop Associates www.rogerharrop.com
Dissatisfied Satisfied Delighted
Not Met
Met
Better than At Risk
Looking
Gone
Loyal
At Risk
Looking
Advocate
Loyal
Product or Service
Process
At Risk
© 2016 Roger Harrop Associates www.rogerharrop.com
© 2016 Roger Harrop Associates www.rogerharrop.com
Number of Customers
Frequency
Average Order Value
£5000
2pa
1000
+3%
+3%
+10%
© 2016 Roger Harrop Associates www.rogerharrop.com
Number of CustomersFrequencyAverage
Order Value
£50002pa1000
+3%+3%+10%17%
GROWTH!
© 2016 Roger Harrop Associates www.rogerharrop.com
Number of Customers
Frequency
Average Order Value
£5000
2pa
1000
+3%
+3%
+10%
© 2016 Roger Harrop Associates www.rogerharrop.com
10090
Price
Profit
100
Volume
30% Gross Margin
© 2016 Roger Harrop Associates www.rogerharrop.com
10090
Profit
100
150
Price Volume
© 2016 Roger Harrop Associates www.rogerharrop.com
100110
Profit
100
30% Gross Margin
Price Volume
© 2016 Roger Harrop Associates www.rogerharrop.com
100110
Profit
100
75
Price Volume
© 2016 Roger Harrop Associates www.rogerharrop.com
Price/Perception Matrix™
Price
Perceived Added Value
Commodity
Buyer
High Added Value
Product/Service
You
© 2016 Roger Harrop Associates www.rogerharrop.com
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
© 2016 Roger Harrop Associates www.rogerharrop.com
© 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 +++
© 2016 Roger Harrop Associates www.rogerharrop.com
The Change House
The Contentment RoomSun
Lounge
The Denial Room
Dungeon of Denial
The Confusion Room
Paralysis Pit
Wrong Direction Door
The Renewal Room
© 2016 Roger Harrop Associates www.rogerharrop.com
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™
© 2016 Roger Harrop Associates www.rogerharrop.com
How do we get into, and then stay in,
the room of renewal?
© 2016 Roger Harrop Associates www.rogerharrop.com
:: BUSINESS EXPERT :: AUTHOR :: INTERNATIONAL SPEAKER
www.rogerharrop.com
© 2016 Roger Harrop Associates www.rogerharrop.com
Download slides here:
http://www.rogerharrop.com/knowledge_zone/members/
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