What would happen if YOU convened a special meeting to ask your team members, “What would we need to do to quickly triple our revenue while only doubling our labor-related costs?”
Yes, I know the economy has been problematic for most companies, but the overwhelming majority of businesses had already hit a stubborn plateau BEFORE the financial markets and American auto industry imploded. Most businesses could have benefited from posing this discussion without the economy tanking. It becomes even more important when times are tough.
This discussion is powerful because it:
- breaks the cost cutting thought patterns that have become predictable and boring
- has a balanced emphasis on marketing/sales and operations/finance, so it involves everyone
- challenges people to imagine the company being successful and people feeling less worried
- replaces negative thoughts that decrease productivity with hopeful energy
To quickly triple your revenue, you need to provide a service/product that:
- the market needs/wants
- is differentiated from competitors
- has effective marketing and sales
- has dependable quality and delivery
Considering the Triple/Double Strategy might help your team express their concerns about:
- not really knowing what customers want
- limited capabilities or capacity
- attraction and retention of talent
- profitability or cash flow
Maybe you have wanted to address these issues for a long time. It is certainly easier to do focused problem solving when your team has recognized and expressed the need to do so.
In other words, posing the possibility of quickly tripling revenue while only doubling labor-related costs prompts needed strategic thinking. It could get you unstuck, challenge old premises, and result in a vision that would be worth a major change.
Over the past 12 months, I have seen discussion of the Triple/Double Strategy prompt the leaders of:
- an event planning firm to step up their investment in on line options.
- a community bank to recognize that they could triple their revenues by becoming a positive alternative for customers who are angry with large financial institutions and also recognize that they won’t need to add new branches for quite a while.
- a web development company to realize that acquisitions and joint ventures are actually easier and more affordable during a recession. In fact, tripling quickly could be accomplished by hiring former competitors who can bring customers with them.
- a promotional products business to see that franchising is a viable possibility for them. Imagine other people paying you to do things your way.
- a non profit organization to restructure two departments and diversify funding.
- a rehab clinic to decide that they should not wait to promote two employees to department head status to permit the President to delegate day-to-day management and focus more on attracting contracts and recruiting experienced therapists.
Instead of permitting the economy to become an excuse to not provide unique value for customers or implement needed improvements, why not use the economy as an opportunity to consider “the Triple/Double” strategy to imagine possibilities, spark new ideas and address important issues. What could YOU step up, recognize, realize, see, restructure, diversify or decide?