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Systemic management #14

Following the 12 week planning process we aim to double the company every 12 months.

To make a growth plan that is also successful, we need to distinguish between things that we can 100% do and other things that are not dependent on us. Turnover is an effect, it is not in our power to achieve it.

Let me give you an example.

In a car service we have two key operations: diagnosis and repair. The finding depends 100% on us, the repair depends on the customer's decision. We can influence the repair decision with a grade 10 finding, but we can't take the money out of the customer's pocket. I honestly don't understand why some services aim to do grade 10 repairs or aim to have 100% satisfied customers. My suggestion is to propose to make a 10 grade finding, this process is 100% dependent on you and the result can be measured. How can you measure? You could choose two critical numbers: the number of additional currencies and the number of cars returned. Moreover, once you focus your attention on the cause things, the ones that are 100% in your hand, such as the finding, you will solve the effects once and for all, such as 100% satisfied customers or 10 grade repair.

So what goals can we work towards? What are the goals that depend 100% on us?

We can increase: number of leads, conversion rate, number of transactions, average per transaction and productivity. Against these goals we can set key outcomes that increase our chances of success. Maybe for some the desire to double the company every 12 months is an impossible, unimaginable wish. But think about it, if we zoom in:

+ by 20% the number of prospects

+ with 20% conversion rate

+ by 20% the number of transactions

+ with 20% average per transaction

+ by 20% productivity

results in 100% growth. If you focus each quarter on one objective and at the same time increase productivity, at the end of the year you have doubled the company.

I would like you to distinguish between two types of objectives. One type of goals, which we can call assumed, and another type of goals, which we can call growth goals. The assumed objectives are the ones we set to maintain the level of the current company. I refer to these objectives most of the time as the ones that maintain the current level of the company. Touching them has a high degree of success, because I've already been down that road.

The second type of goals are growth goals. I haven't been here before. The image that comes to mind for these goals is from the movie Matrix when Neo is on top of a skyscraper and Morpheus asks him to step into the void. That's how empty growth plans are. That's why we need to plan what we can influence and then test. Probably the key word here would be: test.

Test until you succeed.

Some key planned results may not yield results now, perhaps later. It may never work out. See what works and repeat. See what's wrong and make sure you don't repeat it.

Evaluate plans. See if you have planned effects, abandon them, and consider causes.

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