The Facts of Business Life

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Authors: Bill McBean
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results you expect of them. In addition, processes give you a means of measuring what your employees are doing. For example, if your plan and supporting processes call for 100 items to be shipped per day, and your measurement shows you are shipping an average of only 80 per day, you have a problem that needs fixing. The great thing about processes is that they measure output, and they can be an early warning of things going wrong or of things going better than expected, both of which need management input.
    Ultimately, particularly at this level, constant motivation, communication, and education are critical components for employees. This is because at Level 3 so much is happening it’s hard for employee’s not only to keep track of all the changes but to keep up with them. Making sure they are in the loop as far as information is concerned, and doing whatever you can to help motivate them, will go a long way toward keeping your company on an even keel.
Marketing and the Customer at Level 3
    At Level 3, marketing is aimed primarily at the market in which your research at Level 1 indicated there was an opportunity. The challenge at Level 3 as far as marketing is concerned is that marketing costs money, and cash is usually tight when you are still on the survival end of the survival–success spectrum. It takes ownership courage to spend money without being sure of a return on the money spent. And because of that, it’s always a temptation to cut back on marketing at this level. However, the reality is that marketing is more critical at Level 3 than at any other point in your business’s life cycle because it’s marketing that leads to sales, and sales that supply the money you need to continue moving along the spectrum.
    Targeting your customer base is critical, as is the message that explains to your customers why they should buy from you. That is, potential customers need to know why your business deserves their attention and consideration, and this has to be the focus of your marketing at Level 3. In other words, you have to be constantly aware of who the message is targeted to, how this market learns about your business, and what kind of advertising hook attracts them. And once you’ve attracted them, you have to focus on how your employees make the sale and how they follow up on it to make sure those customers will come back.
    Of course, at the end of the day, everything a business does has to be done with the customer in mind. And although this is especially important at Level 3, it’s also particularly difficult to do because the business goes through so many changes at this level that it’s hard to keep the focus on the customer. This may sound crazy, but it’s true. This is because as the business moves along the spectrum, the way it operates changes, and when things change, problems occur. The focus then is usually on fixing the problems so the business will operate more efficiently and the employees’ jobs will be easier. But this is the wrong way to go about it. You obviously have to correct any problems that come up, but if there are any changes to be made, the first question you have to ask yourself is how those changes will affect the customers, not the company.
    Your business will have attained success at Level 3 when it has a clear and unequivocal track record of consistent profits and success in reaching the goals and objectives you set for it. By the time it gets to the success end of the survival–success spectrum, the company will have developed a habit of continuously finding or creating new opportunities, defending itself against threats, and constantly making improvements in its processes and procedures. Success, however, is fleeting. Competitors will react to your improved market position, your customers’ wants will change, new products will emerge, and old tried-and-true products will fade away. Keeping a business on top is not as easy as many people

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