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Jeff Colvin
Management Consultant & Founder of Link,
a Management Consulting Group
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Whether
you are an employee, a senior executive, or a business owner or
manager the word for today (and tomorrow) is diversify.
The proof…more than ½ of the companies on the Fortune
500 list in 1990 are no longer on that list today. The phenomenon
of the "S" curve relative to the growth and evolution
of an organization continues to repeat itself as businesses and
employees either re-invent themselves or die.
Why does McDonalds sell more than hamburgers and fries? Each month
their menu attempts to add some diversification of choice to catch
the new wave from McRibs to McSalads. We all want it our way and
we want it now! What business hasn't added to its menu? Surely,
HP doesn't just sell test equipment anymore.
The service or product offering that was once a draw for your current
customers is no longer sufficient. Just as the skills and talents
you once provided your employer are no longer adequate to ensure
your long-term security.
Diversification is not haphazard shot-gunning for business, or
simply learning new skills. It is a strategically planned and orchestrated
way to horizontally and/or vertically integrate new and novel ways
of making you and/or your business more marketable.
Lets look at this relative to a fishing analogy. If you are really
hungry you may want to try to catch a number of different fish from
different ponds. First, determine the type of fish you want to catch.
Begin to assemble the appropriate bait and tackle necessary to put
your fishing process in motion. This translates to marketing collateral,
the offering, the ways to connect, etc. Additionally, you'll have
to seek out the best fishing spots. The likely places or venues
you'll use to meet likely prospects.
Once you have gotten your fish-lines in the water, the challenge
really begins. Just like juggling balls, there are only so many
tactics you will be able to manage as you attempt to catch multiple
types of fish.
Although you will increase your chances of business breakthrough
and growth with this diversification strategy, if not well planned
and executed you could end up with many crossed fishing lines. When
these lines run afoul, so will your business.
So instead of having it your way, have it your customer's way.
Find out their needs and offer them multiple paths to get those
needs met …from you.
Diversify and Delight
Vertically/Horizontally Integrate
- Expand within your competency
- Leverage your niche market
- Learn/share best practices
- Follow your customer's signals
Provide Multiple Options
- Develop new products/services
- Create smorgasbord offerings
- Make it scaleable (up or down)
Learn to Juggle
- Investigate before diversifying
- Maintain your expertise/credibility
- Add one ball at a time
Affiliate/Partner/Consort
- Explore appropriate opportunities
- Define the type of relationship
- Know when to say no!
- Establish clear goals and roles
- Good planning leads to good execution
Jeff Colvin (Jcolvin@linkllc.com)
founded Link, a management
consulting group in 1997 whose mission is dedicated to the Systems,
Structures, and Behaviors that make people and companies successful.
Link's bottom line focus on process improvement is achieved through
the facilitation and training of cross-functional teams to address
key strategic goals. Learn more about Jeff
Colvin & Link...
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