Below is an exerpt from my book “Billionaire in Training.” This is a sample of the teachings that I gave at Prairie Meadows on Wednesday, October 24.
So often I meet people who think they’re in business for themselves, and yet by my definition, they’re not. Let me explain. read more
Information: At this first stage being information the entrepreneur needs education in his choice area or interest. “Education” is a broad term that can have many meanings, but it is generally defined as the process of learning and acquiring information.
Entrepreneurship is a system of being self-employ with no breakdown as being condition with the problem, situation or challenges of unemployment in a given system. An entrepreneur is an agent of change.
Value is the final prize of a business transformation, but it’s not easy to achieve. In fact, a third (34%) of CEOs at U.S.-based multinationals state that past transformation programs have failed to achieve the business benefits targeted at the onset. While there are many reasons why programs can fail to attain their business objectives, “Business Transformation: Driving the Optimum Value,” a new report from KPMG and Forbes Insights, reveals the following four principles for achieving truly successful transformation.
1. Look to the future when defining the strategy and business outcomes of your transformation. Consider the competitive advantage that it will afford you. Observe companies from all industries and all sizes. Customer demand will be the number one transformation trigger over the next three years, and there is just one customer—a customer shaped by the whole universe of businesses, not just those in your sector.
To arrive at the optimum value from transformation, start in the future. Transformative value is derived by looking ahead and setting the right strategic aspirations for the business before bringing the specifics of the transformation to life. “ As CEO, you’re always trying to look around the corner,” says Frontier Communications Executive Chairman (formerly chairman and CEO) Maggie Wilderotter. “What’s next? Where are the choice points?”
Scenario planning is a critical practice in setting the future strategy. All CEOs need to ask themselves: “What are the disruptors that could occur, and what do we do as a result of those disruptors?” says Robert T. Vanderwerf, Global Transformation Strategy Leader at KPMG LLP. The next step is to identify the cross-over competitive advantage present in multiple scenarios. And to set their strategic aspirations, smart companies keenly observe not just peers within their own industries, but companies across all sectors, including new industry entrants and smaller companies.
2. Align, integrate and communicate the strategy. Making sure that everybody is exactly on the same page is the first step to a successful execution. Some of your employees may only think they are implementing the desired strategy.
Translating strategy into action is a tall task. It demands a strong interconnectivity between developing strategy and developing the approach for its execution. “All organizational capabilities, from the customer through the value chain, must move in sync and be driven by the same ultimate strategic goals to achieve success,“ says Robert T. Vanderwerf, Principal, Global Transformation Strategy Leader at KPMG. He notes that the growing disconnect between strategic vision and execution outcomes is leading some CEOs to get closer to the execution of the business.
This interconnected design of the transformation must be clearly understood and communicated. “What is challenging about the vision is finding a way to communicate it at an appropriate level so that the entire organization can get a feel for what it is and what it means,” says Greyhound CEO David Leach.
3. Translate strategy into action. If the dots are not connected on the ground, transformation won’t happen, even if everybody is clear about the value being sought. Once set in motion, if designed properly, the interlocked elements of the operating model should lead to sustainable value.
How capable are organizations at executing transformation? While about two-thirds of companies believe that their capabilities in these areas are above average, just a third consider themselves highly capable. What stands out is that executives believe their organizations’ capabilities are higher in terms of strategy, and lower when it comes to developing business and operating models or extracting value from transformation.
The top barrier to a successful transformation initiative is underestimating the significance of the operating model changes necessary to effect transformation.
“Companies are not doing as good a job as they could on connecting their strategic vision with their business and operating models,” says Todd Lohr, Global Transformation Enablement Leader, KPMG LLP. “Often organizations look at their operating model as a cost to reduce versus an asset to create value.”
4. Directly link metrics to your strategic vision and desired business outcomes. Think of them as guideposts, designed to keep you on track and take the measure of your progress. Remember that people are not inspired merely by following metrics. They need a clearly-defined strategy and strong leadership.
Metrics are critical guideposts to achieving the value of a transformation, yet only 14% of businesses currently define metrics and connect them with the strategic vision and desired business outcomes before getting the effort underway. The proof is in the results: metrics-driven efforts are more likely to fail—or achieve less value than anticipated—than leadership-driven transformation initiatives (31% versus 20%).