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G E T P R O F I T A B L E U P D A T E!

February 4, 2002

The "Get Profitable Update" is an Internationally published

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IN THIS ISSUE:

1) PROFITABILITY: Does Your Business Suffer From These

Strategic Planning Excuses?

2) SUCCESS: Success Element = Habit of Habit Breaking.

3) ECOMMERCE: Internet Traffic Triples.

4) KEVIN'S MARKETING TOOLBOX!

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1) PROFITABILITY: Does Your Business Suffer These Strategic

Planning Excuses?

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I have consulted with literally hundreds of companies over the

years and I have learned one thing for sure. All firms have a

strategy, even if it is informal, unstructured, and sporadic.

All organizations are heading somewhere, but unfortunately some

organizations do no know where. The old saying "If you don't

know where you are going, then any road will take you there!"

accents the need for organizations to do a better job at

building their strategic business roadmap.

So what are some of the excuses we here about why firms do not

do adequate planning for products, services, trends, market

conditions, external threats, profits, etc.? Well here are a

few for you to consider.

Do you fit into one of the following power planning excuse

categories? Be honest:

>> POOR REWARD STRUCTURES.

When an organization assumes success, it often fails to reward

success. Where failure occurs, then the firm may punish. In

this situation, it is better for an individual to do nothing

(and not draw attention) than risk trying to achieve something,

fail, and be punished.

>> FIRE-FIGHTING.

An organization can be so deeply embroiled in crisis management

and fire-fighting that it does not have time to plan.

>> WASTE OF TIME.

Some firms see planning as a waste of time since no marketable

product is produced. Time spent on planning in an investment.

>> TOO EXPENSIVE

Some companies are culturally opposed to spending resources.

>> LAZINESS.

People may not want to put forth the effort needed to

formulate a plan.

>> CONTENT WITH SUCCESS.

Particularly if a firm is successful, individuals may feel

there is not need to plan because things are fine as they stand.

But success today does not guarantee success tomorrow.

>> FEAR OF FAILURE.

By not taking action, there is little risk of failure unless a

problem is urgent and pressing. Whenever something worthwhile

is attempted, there is some risk of failure.

>> OVERCONFIDENCE.

As individuals amass experience, they may rely less on

formalized planning. Rarely, however, is this appropriate.

Being overconfident or overestimating experience can bring

demise. Forethought is rarely wasted and is often the mark of

professionalism.

>> PRIOR BAD EXPERIENCE.

People may have had a previous bad experience with planning,

where plans have been long, cumbersome, impractical, or in-

flexible. Planning, like anything, can be done badly.

>> SELF-INTEREST.

When someone has achieved status, privilege, or self-esteem

through effectively using an old system, they often see a new

plan as a threat.

>> FEAR OF THE UNKNOWN.

People may be uncertain of their abilities to learn new skills,

their aptitude with new systems, or their ability to take on

new roles.

>> HONEST DIFFERENCE OF OPINION.

People may sincerely believe the plan is wrong. They may view

the situation from a different viewpoint, or may have

aspirations for themselves or the organization that are different

from the plan. Different people in different jobs have different

perceptions of a situation.

>> SUSPICION.

Employees may not trust management.

In a time of recession or in a highly competitive market, it is

more important than ever to sharpen your pencil and carefully

craft a strategic plan for the future of your business. No body

said this would be easy.

Only that it would be worth it for the financial health and

long-term profitability of your business.

Stay tuned as next issue we talk more about what goes into a

good strategic plan. (Portion taken from Fred R. David, Strategic

Management Concepts and Cases)

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2) SUCCESS: Success Element = Habit of Habit Breaking.

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A key leadership role is to facilitate continuous organizational

learning and change. Robert Waterman emphasized this, saying:

Successful companies know how to keep things moving. If they

share a habit pattern, it's the habit of habit breaking. Some-

times they seem to like change for its own sake. IBM's chief

executive officer John Akers says, "IBM never reorganizes except

for a good reason, but if they haven't reorganized in a while,

that's a good reason."

Successful companies are deliberate bureaucracy-busters. They

delight in smashing pettifogging encumbrances that Harry

Quadracci calls "playing office."

There is our wisdom for the day!

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3) ECOMMERCE: Internet Traffic Triples!

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Neither a weakening economy nor the U.S. terrorist attacks has

done anything to stunt the growth of traffic crossing the

Internet, according to Larry Roberts, one of the Internet's

chief original architects and now chief technology officer for

San Jose, California based Caspian Networks.

In fact, traffic continues to triple each year!

http://www.newsbytes.com/news/02/173707.html

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Kevin M. Clark is an "Entrepreneur Of The Year Award" Recipient

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