I am studying companies and firms that turn from highly profitable to lose. I learn what difference those who went to bankruptcy from those who made the turnaround and grew back to be a success icons. Firms like IBM, Ford, and Nokia that “one day” lost their market (I can analyze the full process), and firms like Intel and some of the Satellite vendors that live this process now. I am trying to pinpoint a single moment of failure and later on a single decision or insight that led to recovery.
This knowledge with the ability to apply it within an organization will generate a tremendous full-scale positive impact on the business performance of any business unit.
What I have found, is that most of us lack the understanding of what we are doing as an organization, we tend to confuse between what we are doing and how we are doing it.
1) What is our product?
2) What are the tools we have for achieving this product in the most efficient way?
Most people are having a problem answering this two questions, they tend to be confused, and in the business world, when we are confused – we lose.
The Single Point of Failure
To the question of “What does Ford manufacture”? Most people will say, Cars. “What is the Product of Nokia?” most will say, cellular telephones and as for the Satellite vendors most will agree on satellite services and satellite communication. Of course, this is wrong!
Management of many companies believes that what they are selling is their product while in reality the company product and what the company manufacture and sell are two very different things. By failing to differentiate between the two, the company is losing valuable skills like: Fast decision making and flexibility. The company becomes too slow to follow changes in the market and Indifferent to embrace new technology.
Business Monotheism – One Goal
All commercial businesses in the world have only one product – that is profit. There is no other product in the business world. Whether you sell shoes, cars, food, communication, service, idea or even flowers; you do it to make a profit.
When you embrace the Business Monotheism way of thinking you will find it clear that everything else is just tools for making the profit. For example: If you are FORD your tool for making a profit is manufacture and sell cars. This tool must be sharp and efficient. By defining the car not as the product but as the tool to make the product, you are more willing to look for new and better tools (cars). You will innovate, invest and build better cars that are easier to sell and your profit will grow. Market changes will not be a threat to a car model; They will be an opportunity to make more profit. When a car model becomes obsolete, you more likely to replace it as soon as possible, like you replace a broken machine. (When companies come to replace products or services they tend to make the change two years too late).
Apple of Steve Jobs was a great example of the Business-Monotheism philosophy
First, Apple made it profits by Selling computers but then they grow profit by entering new territory and selling Cellular phones. Then they invented a new market and made their profit from the Ipad and even greater profit by selling Apps at the App store. Next, they grow even more profit by invading the music and the movie industries. Apple understands that they are not making hardware nor service they just sell those to make a profit. For the all-time they have only one product – profit, but so many exciting tools to make it.
Top 5 benefits of Business Monotheism:
1. Only one goal to manage – Front desk to CEO.
2. The organization is fast to follow market & technology changes & opportunities.
3. No dissonance between the “organization ego” and reality. (Ego-focused profit)
4. Your merchandise and service are slick and easy to sell.
5. Profit.
There is only one product that we all manufacture – Profit