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Over
the last two years I worked with leaders of organizations large and
small on how to drive growth in our sluggish economy, putting me in the
position to see what's working and what's not in private sector
companies, public sector agencies, and associations of all kinds.
When I say growth I mean: (a) Increased profits, (b) Increases in
revenue that will generate profits in the near term - for example,
following an upfront investment or due to a predictable, favorable
change in the market like the massive distribution of iPads taking
place this Xmas - or (c) Increases in market penetration that will
generate increased profits. This last version of growth is what I call
a gateway action because it opens the way to new sources of profit.
There is a dramatic difference between those organizations that are
growing aggressively and those who are not. The latter group is
hunkering down, hoping to weather the storm. Instead of driving
expansion they are becoming marginalized, receding into the background,
and as a consequence facing commoditization - not an enviable position.
Here's the deal. As long as the economy is sluggish, we are actually
experiencing an Opportunity Window. This window happens anytime
satisfaction dips into the negative zone (see my graphic below),
meaning your customers are dissatisfied. They can be dissatisfied for
quantitative reasons as when their margins or volume are down. But it
is just as valuable an opportunity when they are dissatisified
qualitatively, meaning they are pessimistic or upset.
You see, when customers are dissatisfied, they want things to be other
than they are and that is exactly the energy you can leverage to create
new kinds of value. Their dissatisfaction is one of the necessary
precursors to a favorable economy. The other is that you figure out how
to generate that value through growth.
Keep in mind, the early stages of this value opportunity mean that the
market as a whole does not recognize the opportunity. But, you will
because you are making use of the opportunity window...
There are three strategies that utilize this window for success:
1. Focus on alleviating the constraints your customers are
experiencing.
2. Transpose your core competencies to adjacent markets.
3. Capitalize on your relationship assets (the people who
trust you) to uncover new opportunities for value creation.
More on these three strategies in upcoming issues of Monday Morning
Mojo!
I am Seth Kahan and
I help leaders drive change for business
success.
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