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Rule 1: Better Before Cheaper
"Every company faces a choice: It can compete mainly by offering superior nonprice benefits such as a great brand, an exciting style, or excellent functionality, durability or convenience; or it can meet some minimal acceptable standard along these dimensions and try to attract customers with lower prices." Well said. In every market we can pick out the low cost provider fixated on price only and know their model has historical limitations to growth.
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Rule 2: Revenue Before Cost
"Very rarely is cost leadership a driver of superior profitability." I find this rule to be very challenging to companies today in a few different ways:
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Compensation: Those owners and leaders that survived the downturn by cutting costs are having difficulty switching their strategic thinking from cost-cutting to calculate investing in the 2013 growth phase. Top companies have recognized the need for talent and its limited supply by adjusting compensation programs to be proactive to the environment. Adversely many companies are losing top talent with compensation models based on irrelevant 2009 projections.
- Training: There is a learning curve to remembering how much tougher it is intellectually and creatively to grow. Companies that recognize the importance of training to be successful are investing to prepare for the 2014 year, while those that under estimate the "ramp-up" time will inevitably lose market share.
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Time: Investing in your company strategy: We hear leaders make the statements like "I'm too busy to make certain my strategy is accurate and my team is aligned" or "There isn't time to make certain we are working as smart as possible." Time is a finite resource - Respect it. Be committed to a triage prioritization and know what singular action will bring the greatest impact. The best leaders understand how to step out of the suffocating day to day operating clutter to set goals and build the right strategy.
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Rule 3: There are No Other Rules
This is my favorite... everything is on the table, other than Rules 1 and 2. The depth of focus and commitment this strategy puts forth is awesome. Accepting the pressures it puts on the companies creativity and innovating abilities, calculating, aggressive and efficient growth is the assured outcome.
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