The Smith Report - Operational Playbooks

The Reason Behind Flat Growth is Leakage

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As you scale your businesses it’s important to prioritize your actions but first you need to audit for leakage. It can occur anywhere in the connected body you call your business. Think of scaling in it’s very basic form as a sequential set of events. If you had the chance to stop the engine and restart the business it would feel like this.

Defining who you want to be drives what you want to build, and the story you want to tell, which drives the sales leads for your sales team, which drives the sales scripts they use. Operations and production are driven by these agendas. Customer support and installation teams take these objectives and ensure that customers achieve the success they were looking for. Simple enough. All connected. All aligned. As businesses grow leakage creeps in.

 

Problems occur because of Leakage

Here are a few examples to help you get growth back into your business and prioritize scaling actions.

  1.  Positioning: You fail to define your special space you are capable of monopolizing.
  2. Product Road Map: Products aren’t fit for their sectors. They lack specific functionality needed by customers.
  3. Marketing: Blog posts aren’t frequent enough, story isn’t compelling, lead generation is weak, web site narratives lack consistency.
  4. Sales: No process in place, sales scripts are not connected to the marketing story, product knowledge patchy.
  5. Operations: Wrong stuff is measured, access to key ratios is tortuous, analysis of financial performance is weak.
  6. Production: The workflow of the factory is disconnected from POs coming in from sales, weekly shipments aren’t driven to generate cash, quality control is weak causing costly re-runs and corrections.
  7. Customer Support: Onboarding of new customers is not formalized, communication between sales and customer support is weak.
Fix  leakage and you will drive growth. You will optimize the scaling of your business and continue on a fun path of fulfilling it’s potential!
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About the Author

Ian founded The Portfolio Partnership (TPP) in 2010. TPP is an operational consultancy focused on scaling private businesses safely. He believes his resume of building 4 previous businesses from publishing, investment banking to software in Europe and the States gives him a unique set of skills and a sense of humor. He remains a competitive masters track & field athlete and in 2012 was ranked #2 indoors in the world for his age at 400m.

Discussion

  1. Ian Smith  March 11, 2013

    Leakage is everywhere and it needs to be found or you will not scale.

    (reply)

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