At Marriott Consulting, when we help an organization with a strategic plan, one of the things we look at is how the firm's managers manage. It is well documented that decentralizing decision-making often improves productivity and leads to innovative solutions to many problems. But it's difficult for many managers to delegate well. Why?
Are You a Leader or a Coach? What's the Difference?
In an excellent article, columnist John Hunt of the Financial Times in London describes the difference between a leader and a coach. Hunt finds a great example of the difference when business leaders take their families on vacation: the qualities that work brilliantly with subordinates are dismal failures with spouse and children. The difference, Hunt says, is that leaders lead by example, "encourag[ing] people to develop through imitation," with a strong emphasis on correcting what's wrong. Coaches, on the other hand, are "developmental, not remedial," with a goal of neither correction nor perfection, but continuous improvement.
At Marriott Consulting, we have seen the value of strategic partnerships in an organization's success. We think they are so important that an extensive survey of current and potential partnerships is a significant part of our research for clients.
In most cases, organizations use strategic partnerships to obtain product components or corporate services more efficiently than if they provided them in-house. But some companies use strategic partnerships for other reasons: to test new markets before committing to entry, or to obtain critical know-how from companies with whom they may later choose to compete.
So you want to pursue a growth and expansion strategy? How should you divide your efforts and resources between your existing products and services, and the ones you anticipate offering?
At Marriott Consulting, we have found that a good rule of thumb is that your existing core business should carry 60 to 70 percent of the financial load in such a strategy, with new products and services providing the remainder by the end of the plan period. Concentrating too much, too early, on new products may not bring the desired results, while at the same time drawing customer attention away from established, profitable lines.
(An article from "Startup Journal," a publication of the Wall Street Journal)
When you first go into business, you need to devote as much time, money and effort into attracting new customers as possible. After all, since you need every dollar you can get to make your business succeed, you'd be crazy to turn anyone away, right?
Wrong. That philosophy, seasoned business owners say, is a quick way for fledging start-ups to spiral downward.
T.C. Smith, co-owner of a FastSigns franchise in Springfield, Va., learned this lesson early in the life of his four-year-old business. "I still remember thinking that we had to take every customer," he says. He soon realized that some new clients were so time-consuming that they were unprofitable.
Do You Have the Right Stuff to Be an Entrepreneur?
What does it take to be successful starting a business? While there's no such thing as the perfect entrepreneur — even Bill Gates has made mistakes — a number of personal qualities can help you to build a successful business. If you pass muster on most of these traits, you're off and running.