This is kind of a super chapter to the author’s other book Scaling Up which I found to be far more procedural, kind of a consulting how-to guide to scale up your business.
This book however is instead more about habits, procedures, and how to focus to develop a growing and successful firm. One exception is the last chapter which seems like it belongs in Scaling up. It is on how to secure bank financing in a step by step way which is very important but kind of stands outs from the rest of the book.
The consulting tries to be simple because you will actually remember simple. For your firm to succeed, it must do something very well that differentiates itself from competitors *AND* is valuable to their customers. If you are a lot cheaper than the rest of your industry, but customers really want fast, that doesn’t do you any good. You must be distinct in some way that your customers value.
The other key insight was to only have two ranges of planning, long term which is beyond the ability to plan, and short term (one year). Point your short term planning in the direction of your long term, but stay tactical. An extreme focus on the short term gives your team the ability to see the impact of their work and change directions quickly. A good day makes for a good week, a good week, a good month, a good month, a good quarter, good quarters make a good year.
The author emphasizes mandatory daily meetings. Now I can hear everyone groaning with the that beuracratic breath of disdain. “They keep me from getting real work done.” You cry! Well there is a disclaimer. They emphasize daily meetings but short ones that are super accountable. No problem solving is allowed, it’s just a brief status, numbers measuring your key metrics, and who is blocked. If the numbers aren’t being hit, then there is a problem that the team can take action on that day.
One company they examined had three layers of these meetings every day. Front line employees at every location had a 15 min meeting, the managers had another 15 min after that to roll up the problems from the front line, and the leadership had a 15 minute meeting after that to roll up those meetings. So in one hour a company with over 1000 employees had a complete bottom to top update, daily and it cost everyone 15-30 minutes depending if you were in two tiers or not.
This hyper focus on core metrics at a regular pulse that includes everyone allows quick course correction. Problems are spotted immediately instead of at the quarterly meetings. When problems aren’t found for a full quarter, you have to get into reaction mode after a problem has become one to three months old, so you spend the next quarter cleaning it up. So you end up losing six months assuming another problem didn’t crop up while fixing the last one.
Using the daily sync, you fix problems while they are little and stay focused on the numbers that represent where your business is going. Obviously not everyone runs a company this way, and some very successful companies don’t. The reasoning makes sense for a transaction or sales based business which most are.