How to develop your strategy - in 3 steps

~ How are you going to reach your goal? What's your strategy? ~

~ I've done so many analysis, SWOT, 5 forces, but still, I am not sure what's the strategy to use? ~

To address your questions, here I would like to propose one of the easiest/best model that always works for me. Initially the methodology is for myself, to help me to find out root cause, and how to improve it. Then I found it also help me to make the right decision for your business, sales, marketing purposes. It's has a very easy, intuitive way for you to follow and it can be applied in many situations, so I would like to share it with everyone.

Let's see how it works:

• First step, define a clear goal you want to achieve
• Find out all the factors that have impact to your goal, including 2nd, 3rd, 4th or as many level as you can image. You can also have a rough estimate on the weightings of each factors, how big impact does it have to your goal.
• Once the relationship of those factors, weightings, and goals have been built, the final step is to think about how to change those factors such that it will have positive impact to help you to reach your goal. There your strategy comes out. You can define the strategy to try to remove the factors, add more factors, increase the weighting, decrease the weighting.  

Isn't that easy? A simplified concept is as below. It's common that you can't find out all the factors, but it's OK. As time goes by, I believe you can find out more and more and gradually correct this model.

So why do you need to have a goal first and then figure out the impact factors? because it's human nature. We are better in tracing backward than forecasting future. It's easier for us to think "why does it happen?" rather than to think "what will happen next?"  Just like playing chess, you need so much brain power to predict the next, next steps of your opponents, but when you look at result, I believe it's very easy for everyone to figure out why you win or lose, right?  This is the main reasoning of this article.

Now let's use areal case example.
Step 1: define your goal. So here it is:

            ~ Our goal is to increase revenue. ~

Step 2: find out all the factors that have impact to your goal.

The 1st level diagram is easy. It can be as simple as below. The bottom one is the goal and the upper two are the 1st level factors that has impact to your revenue. It's quite easy to figure out that the customer buying decision will have impact to your revenue. The more they buy, the more revenue you gain. However, you can also take "increase product line" action. The more variety of product you sell, the better chance you can fulfill different customer needs. If you apply this to solution selling, increasing product line means you can offer more complete solution for customers to have a one-stop-shop.

The 2nd level diagram is the extension of the 1st level. It's important to list out more factors because it quite often that you can't see your strategy if you only did a 1st level analysis. So, the 2nd level diagram can be looked like as below. Mainly we are focusing on what's affect customer's buying decision. We have product C/P value, the branding, and maybe the more channels you have, the better customer reach you get. All those will have impact to customer's buying decision.

Now we can go further more, and your picture will be clearer as below diagram.

Step 3: So how to generate your strategy? Two ways, you can try to strengthen those "positive factors" that support you to achieve your goal. You can also weaken those "negative factors" that hinder you from achieving your goal.
For example, if you want to choose to affect customer buying decision, what's the plan? From the diagram, you can easily come out some idea in your mind such as "increasing your channel partners".  In order to do so, you should allocate budget to join seminars, which allows you to reach more partners. or you can provide technical training to those partners who were, originally, not familiar with your product. By doing the training, your potential partner can be more actively help you to sell your products.

Strategy is not magic that can turn things into gold over night. But if you execute it correctly, gradually the negative factors will be out and positive factors will be strengthened. Then I can guarantee what you want will definitely happen. It's just a matter of time.

Finally, can this be applied to your daily life? The answer is yes. Whatever goal you want to reach, it's all about different impact factors. Some of them may be from other people, and some of them maybe reside in yourself. For example, if you like a girl and you want she likes you back. Maybe it's hard to change what's in her mind, but you can definitely make yourself better, more adorable, or upgrading yourself, in terms of manners, hard-working, knowledge, or whatever.

Remember, a strategy is a method or a plan to help you to reach your goal. Now you have clear picture how to do the strategic planning. But don't ever forget, planning is just some paperwork. The execution is the actual key to open the door.

Follow up reading on "occasional vs destined".


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Case Studies - The essence of Taxi APP - Why essence matters?

　　最近有朋友問我個APP的問題，關於叫計程車的APP在台北的市場該如何競爭才能出線，這是最近蠻熱門且有趣的case，所以我想把故事寫出來跟大家分享交流一下。

　　不論是要開餐廳，開發產品，或是發展新事業，有一件事情是絕對要記住的，那就是"需求的本質"，比如顧客為何光顧這間餐廳，或是為何使用這個產品，這個"本質"很多時候是隱而不顯的，必需要特別費心去找出來；我今天想聊的，就是計程車這個事業的本質．

現況
　　目前在市場上其實有很多叫計程車的APP，有的來自國外，有的則是本土車隊開發，來自國外者有的挾著國外的成功經驗與雄厚資本，不過一到台灣還是遇到發展的瓶頸，尤其是在雙北市。

　　台北其實是一個相當成熟的市場，競爭異常激烈，台北市與新北市的計程車共有6萬輛之多，跟別的國家相比，用戶需求其實有相當大的本質上的差距，許多朋友出國都知道，在別的國家常常很難招到的計程車，在台北其實常常隨處可搭，除此之外，台北還有乾淨程度可排上世界前幾名的捷運系統以及繁雜但還算有效率巴士路線，這些微妙的不同其實都造成計程車APP的困境，使用APP叫車不如路上攔來的方便。

問題
　　有意思的是，各家的APP看似不同，但主打的項目，在本質上很雷同，最有名的就屬主打黑頭車服務的廠商，打算提供私人的專屬司機，而EZ也是有事先過濾司機的以確保服務品質，這種模式在國外絕對行的通，但在台灣，某種程度其實無法讓消費者感受到很大的差異，台灣本身的強項就是服務業，許多大車隊很早就規範司機的穿著與禮貌，甚至新車不超過3年的門檻，在這種環境下，到底該如何才能出線呢? 問題的關鍵究竟在那兒?

本質
　　回歸到本質這時就派上用場了，假設幾個情況：您是消費者，正站在路旁，前方就是公車站，左邊就是捷運站，也可以招手叫計程車：

1. 如果想去的地方這3個交通工具都可以到達，請問您會選擇搭那個?
2. 如果想去的地方，搭公共運輸工具後還需要再走一段路，請問您會選擇搭那個?
3. 如果您手上提著大包小包的東西?但是時間不趕?
4. 如果趕時間?

　　當然還有更多的情況可以假設，或是每個情況只要多加一點條件就可能改變各位的選擇，所以暫不贅述每種情況的答案，但我相信寫到這兒大家應該都有些感覺了，不論條件怎麼改，在各位心中那把尺的選擇變化不外乎是金額與時間，少數的情況會需要額外的服務，各家的計程車的金額是公定的，換句話說，計程車APP用戶需求的本質應該是"快"，只要達到最基本的服務條件(比如不要有臭味、超速亂開車等)，接下來就是誰快誰贏。如果能做到按下叫車按鈕的一分鐘內，車子就到你面前，那絕對會是最佳的用戶體驗，旁人花走到大馬路才叫的到車的時間，您在巷子內的車就先到了，還有什麼比這個更酷的呢?

　　對於一個進入台北市場的叫車APP來講，與其花錢在搭車折扣的鼓勵，或是花時間去過濾車輛的服務品質，不如想法子先在短時間內讓所有的司機都使用你的APP，這樣才能在本質上提升用戶體驗，至於每台計程車的服務品質，自然而然會隨著使用者的評價而有所高低，市場自然淘汰的，適者生存，不是嗎?

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Sales Cycle and Sales Abilities

Background

  In every role I've played in the past, no matter it's in school or in business world, there is always one key questions I asked to myself in advance.  As a solution sales, what are the required skill-sets for this role? 

While I was a technical guy or a student, it seems quite straightforward to answer this question. There were always new topics waiting for me to explore, computer languages, software development models, or economics, accounting, etc. However, when it comes to sales, the answer is quite vague. I had talked to several senior sales guys and also googled it for top 10 skills(something like that), but I couldn't find a systematic answer. Most of the answers you got are, for example, relationship building, passion, attitude, listening, or presentation skills. It seems a little bit general and dispersed. But I am looking for the skills for solution sales.

Is an answer there already?

Not really. You have to find it out for yourself. There are so many different types of sales and each of them requires different skill-sets, so the only way is to find it out on your own.After a couple of month being a solution sales, I started to catch some points. The more friends/customers I met, the more key skills I am sure this job requires. How does that help your job? The answer is, if you could catch those points right and fast, you could be the top sales. So here it is. Below is the systematic diagram for this role.

Outcome

For every sales, if you don't know your own strength or weakness, or you lose the direction for improving yourself, you better make one diagram as below and constantly look at it to review yourself, make sure you are on the right track. 

In my case, the first step is to figure out the selling cycle of this role. This is important because each cycle requires different skill-sets. Only when you figure out the selling cycle for yourself, you can start to fill-in the rest.

Solution sales cycle and it's abilities

There are 4 cycles involved. The next step is to fill the skill-sets into different cycles. Some of the skill-sets are across all cycles. but it's normal. You may feel it's not 100% correct, but it's ok. Anything has a start point. A draft start is cool already. Don't copy from others. If you can make one for yourself, that means you truly understand your job.

The next question is, what can you do with this? Here is the point.By making up your weakness, you can grow up fast, you can change fast, you can ensure you are ready to in your job. What more? There is a big difference between spontaneously gaining experience and intentionally improving. It's like the comparison of an entrepreneur and an employee. In the first case you are choosing to be the best, proactively doing what you should do. That's how you improves fast. In the later case, you are listening to others to tell you what do you, setting up directions for you. It doesn't mean wrong, but the improvement and grow-up will be slower. To me, seeing the changes/improvement in me certainly makes me happy, and it's not hard to do it. Think, plan, then execute. The result will be there.  


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