3 Strategies to Manage Positioning and Growth

Product Strategy Basics….. 1, 2, 3

Prioritizing your product portfolio became relatively easy with thanks to the Boston Consulting Group (BCG) Matrix.  This model and many more can be found from www.valuebasedmanagement.net - a favorite of mine.

As obvious as this picture may look, the steps or strategies an organization should take are different for each quadrant.  Before I explain "Defend, Extend and Exploit, the quandrant with the “dog” is really just an unattractive business unit and one in which the leadership team should ask the question: “Why are we in this business?” “Could our resources be better spent in one of the 3 areas, within my triangle?”

 

Position 1 – Defend

Defend your cash-cows has to be the mindset.  Competitive pressure awaits this category, someone wants to serve your clients and with that in mind, you need to create a “defend” strategy.  Your issue over time becomes the erosion of gross margin as your competitors try to offer a lower price and better service (they’ve innovated).   An organization where the product portfolio is heavy in this category maybe lacking the ability to innovate.

Position 2 – Extend

Unproven, questionable potential product offerings are in this category, hence the question mark.  The question is:  Which one will likely deliver market share and a high rate of growth?  To answer that question, I recommend my clients bend the typical business process rule book just a bit and use this category as a discretionary fund that can quantify and execute quickly; turning those “2's” into a “3's”.  Be careful not to take on too many, no more than 2.  I am mindful of the “Stage/Gate” model where you need to “kill” the no-goes by quickly prioritizing potentials (http://www.stage-gate.com).  It has been my experience that the more you establish a cross functional team for this category - the better the result will be. 

Position 3 - Exploit

As the title suggests, run with it!  Establish barriers to slow down or keep your competitors out.  Also, you want to use your position and cash generation to defend and extend.

Differentiating starts inside – unlock new ideas and think differently.

 

3

2

1

Inundated with Data? How to Increase the Value of Your Data

If you want to have your business doing better, then your data needs to come alive.  I Just finished up a client project with my Consultancy students and it never ceases to amaze me just how much data the client has, yet becoming informed enough to make solid business decisions seems to be a struggle; here why.  Data talks and companies today are inundated with just about everything and nothing at the same time.

It has been my experience that if you simply pull data and see the “ups and downs” there is little to be gained and you are left to wonder “Where do I begin?”   This is by far the biggest obstacle to overcome.  So lets begin with answering the question.  How does my data become more valuable?   

 

Before I start to look, sort and analyze the data I sit with the leadership and their team and decide what do you want to know?  Data, when properly organized, becomes information.  The information when analyzed and cross-tabulated is the knowledge/metrics we use to make good business decisions.   Over time, know-how is the destination every leader is seeking.  The business and external environment are always changing so the more valuable your make your data, the better your company will perform.

 

Time to Stop Exploiting Unpaid Interns

 

I understand that young graduates are eager to launch their careers and what better way to show your prospective employers your skills than as an Intern.

The role of an intern is not new – in fact student interns work closely with their academic supervisor and a participating organization for years.  What is new is how this role is changing due to the external environment – “hard times/recession”.  When times are tough employers are using this tactic of “Unpaid Internship” inappropriately as free labour versus participating with academia in a supporting/community service role.

Talented graduates need employment – hell - a worker a Tim Horton’s or McDonalds is valued more as they are paid minimum wage.  We have employment laws in this country and the little loophole is being exploited.  Students today are actively seeking a paying summer job, and sadly, the incentive is for them to find employment in the service industry - the loss befalls to you.  You will not experience the talent that they offer and you are only delaying their work experience.    Think about this:  Would you rather hire a graduate with specific work experience or one who worked their way through school by working at a bar/restaurant because they could not afford to take an unpaid internship?  Employers are missing the opportunity to see and enrich the student.

Remember back to when you were a college/university student…..  And how good did it feel to land a summer job!

Value those who are bettering themselves and pay them to provide value to your business.