CSME Irrefusable Offer Seminar October 2012 Glasgow

: Agenda

1. Welcome and Introduction (David Hood, Competitive SME)
2. Opportunity or Armageddon? Ready for the Economic
Upswing?
(Jim Henderson, Shirlaws)
3. The 7 Stage Process to Competitiveness and the
Irrefusable Offer
(Brian Canavan & David Hood, Competitive SME )
4. Collaboration for SMEs
(Jim Mather, former Minister for Enterprise, Scottish
Government)
5. Panel Session

Opportunity or
Argmageddon?
Jim Henderson
Partner, Shirlaws

UK GDP

Percentage points
2.0
1.5 GDP
1.0
0.5
0.0
-0.5
Services
-1.0
Construction
-1.5
Production
-2.0 Agriculture
-2.5
2007 2008 2009 2010 2011 2012
Source: NAB

UK GDP

Percentage points
2.0
1.5 GDP
1.0
0.5
0.0
-0.5
Services
-1.0
Construction
-1.5
Production
-2.0 Agriculture
-2.5
2007 2008 2009 2010 2011 2012

Source: NAB

Time To Get Positive
The business owner who’s educated, confident and secure about the
economic cycle will be preparing their business for the next boom.

It’s this preparation over the next 12-18 months that’s business critical in
maximising the benefits from the next boom.

• Get your numbers right – prepare and plan
• Get your timing right – match your business stages to economic
phases – investment returns take time
• Get your culture right and reconnect back to your vision
• Packaging and IP development
• Distribute into distinctly defined niche markets

Multiple
4.0 V7 Scale
2.0 V6 Brand – Brand Architecture
1.5 V5 Channel Extension
1.3 V4 Product Innovation
1.2 V3 Systems & Infrastructure
1.1 V2 Culture & Talent
1.0 V1 Industry Benchmark (norm)
0.9 Costs
0.8 Revenues
0.7 Assets
0.6 Liabilities
0.5 Management Team
0.4 External Factors

1930

1957

1973

1990
2001

• “Move fast and break things”. Mark Zuckerberg

• "Innovation has nothing to do with how many R&D
dollars you have. It's not about money. It's about the
people you have, how they're led, and how much
you get it.“ Steve Jobs

More help to get ready for recovery…now
• Use the resources at www.shirlawscoaching.co.uk
– Test where you are on Stages… is your business ready to grow?
– Test your attitude to entrepreneurial Risk.. are you ready to
innovate?
– Read the articles and thought papers.

• Register for our newsletters and download
“More Money, More Time, Less Stress”
“A roadmap for making your business brilliant again”
FT’s Mike Southon

• Buy me a coffee

Jim Henderson

@JimatShirlaws

jhenderson@shirlawscoaching.com

7 Stages to Creating
the Irrefusable Offer
David Hood
Brian Canavan
Competitive SME

: the 7 STAGES
1. Strategy & Objectives
2. Quick Gains
3. Current Competitive Status
/ Engagement
4. Possible Competitive
Advantage / True Value
5. Prepare for Launch Success
6. Refinement & Impact:
Maximising Revenue
7. Sustaining your Edge

Example of
Competitive SME tools... 1
Simple de/re-construction
of your Proposition

: De/Re-CONSTRUCT


: De/Re-CONSTRUCT

• Reactive • Proactive
• Resource focus • Opportunity focus
• Legacy processes • Adaptability / Resilience
• Defined by industry • Defined by market
• Make as much as we can • Offer as much value
• Make to and for margin • Make to need, order and
demand


Example of
Using the Proposition
Accelerator Tool (P.A.T.)

: P.A.T.

Proposition
Accelerator
Tool:

... the simple and
ultimate test!

© Copyright Brian Canavan / Competitive SME

Example of
the ultimate objective:
The Irrefusable Offer

The Irrefusable Offer:
Changing the Currency
What to Change What to Change to How to Change (Currency)
Rolls-Royce: Keep the engines up
Engine downtime costs a in the air; (‘performance ‘Power by the hour’
lot of money to the client based logistics’)
First Class Physiotherapy:
Stop people getting hurt
The point of interaction
rather than waiting for ‘Reduce absence’
and reference for the
them to get hurt; caring!
problem of staff absence
Laboratory Services:
Do not charge the way the
We charge more than the ‘Helping shift product for
industry does, always has,
competition and are not the client’
and always will
seen as worth the money

© Copyright Competitive SME

Collaboration
Jim Mather
Gael Ltd.

Jim Mather

Chairman
Gael Ltd.

Jim Mather

Collaboration for SMEs

My Messages

• Collaboration is a great survival strategy

• Competition is overstated and has been
perverted

• Time for a new Beginning that resuscitates Trust

© Copyright Jim Mather - Gael Ltd

Two Problems with Collaboration

• Historical Connotations

• The Victory of “Competition is best” lobby
– Competition - definition: The activity or condition of competing
– Competitive - definition: Having or displaying a strong desire to be
more successful than others
– Arguments:
• Competition has been overstated as a force for good, perverted & hijacked in some
cases against the real economy and the consumer
• “Competition” often means “Lowest Price”

W. Edwards Deming
 The Book
 The 14 Points
 Point 1:
 Create constancy of purpose toward
improvement of product and service,
with the aim to become competitive
and to stay in business, and to provide
jobs.

 The Case for Collaboration
 It’s synonymous with Optimisation
 An attribute of the “competitive”


Moving Target

Worthy Altruistic
Unifying
Goal

Involvement of
Active Constant Referral to
external people and
Maintenance of Community Interest
organisations that could
Relationships and
“Contribute or Benefit
From” the success of the Community Involvement
“System”

Determination to constantly
optimise the whole system
Charles Ehin


Professor Ken Cloke’s
Ladder of Unity

Collaboration
Experience

Relationship

Fair & Open Processes

Unifying Worth Goal

Opposition


Collaboration
Blending the Three Mind-sets

H1 – Status Quo – Business as Usual
H2 – Gradual Evolution of Existing Business
H3 – Radical Departure from Existing Business Model

WHAT THE HOPPER BROTHERS
OBSERVED

The Puritan Gift

Likely Drivers of Innovation

Steve Johnson – Where Good Ideas come from

Current Issues with Competition

• For Real Economy Businesses - Waste, Duplication
– Margins decimated
– High Attrition Rate
• Nations
– People, Communities & Countries left in lurch
• Consolidation and creation of Monopolies
– David Korten – Nightmare Scenario
• Small number of Beneficiaries:-
– Financial Markets
– Professions – Legal, Accountancy, Purchasing
• Countries rejecting the Washington Consensus
– Getting better results than compliant nations


The Case for a Two-Legged Walk
- The Genius of Dee Hock


How do we do it?
• Take Margaret Wheatley’s advice
• Blend Competitive & Collaborative Strategies
– Reject the Race to the bottom
– Take pride in offerings and prices
• Read:-
– The Shell Scenario Planners
• Ari de Geus and Adam Kahane
– The man that studied how Toyota did it
• Mike Rother
– The Hopper Brothers’ Hero
• William B. Given
• Resurrect Deming
• Put the systems in place to move beyond good intentions
– Commitment to Quality, Continuous Improvement and Challenging Orthodoxies
– Quality Management Systems
– Collaboration Tools


Other Questions
• Can we create such a blend:-
– Locally?
– Nationally?
• Will Horizon 2020 Drive behaviour?
• Can we educate:-
– Purchasing Managers?
– The Accountancy Profession?
• And avoid The City and Wall Street creaming
off the profits?

Want to join in?
davidh@mymarketinglife.com
brian.canavan@aperturemarketing.co.uk

@competitivesme

CSME Irrefusable Offer Seminar October 2012 Glasgow

CSME Irrefusable Offer Seminar October 2012 Glasgow

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