- Who/Where are your (juicy red) core customers?
- What are you really selling them?
- What are your three Brand Promises?
- What methods do you use to measure whether you’re keeping those promises? (We call these the Kept Promise Indicators, a play on the standard definition of KPIs.)
Related Quotes
If you’re not sure what your ideal environment looks like, ask yourself the following:
- Which six-month period of my life did I feel the most energetic and productive? What gave me that energy?
- In the past month, what moments stand out as highlights? What conditions enabled those moments to happen, and are they re-creatable?
- In the past week, when was I in a state of deep focus? How did I get there?
KEY QUESTION: Are the stakeholders (employees, customers, shareholders) happy and engaged in the business; and would you “rehire” all of them?
The 7 Strata of Strategy: is tool represents the seven components (stratum) of a robust, yet simply stated, strategy. It’s designed to provide the kind of differentiation and barriers that allow you to dominate your niche in the marketplace.
The seven components:
- What word(s) do you own in the minds of your targeted customers (e.g., Google owns “search”)?
- Who are your core customers, what three Brand Promises are you making them (e.g., Southwest Airlines promises Low Fares, Lots of Flights, Lots of Fun), and how do you know you’re keeping these promises (Kept Promise Indicators, a play on KPIs)?
- What is your Brand Promise Guarantee (e.g., Oracle has been advertising the chance to win $10 million if its Exadata servers don’t outperform the competition by a factor of five)?
- What is your One-PHRASE Strategy that likely upsets customers (Apple’s “closed system”) but is key to making a ton of money and blocking your competition?
- What are the three to five Activities that fit Harvard strategist Michael Porter’s definition of the essence of differentiation (e.g., IKEA’s furniture needs assembly)?
- What is your X-Factor — a 10 times to 100 times underlying advantage over the competition — that completely wipes out any and all rivals?
- What are your Profit per X (economic driver) and BHAG® for the company? These come straight from Jim Collins.
8. Employees can articulate the following key components of the company’s strategy accurately.
• Big Hairy Audacious Goal (BHAG) – Progress is tracked and visible. Core Customer(s) – their profile in 25 words or less.
• 3 Brand Promises – And the corresponding Brand Promise KPIs reported on weekly.
• Elevator Pitch – A compelling response to the question “What does your company do?
- What is the essence of what the company stands for?
- How is it really different from its competitors?
- What do the people who are most successful share in common?
- What are the common traits among those who have failed?
- Who are the five most respected people in the organization and why?
- What are the characteristics of the organization’s failures or missed opportunities?