What drives its economic engine. Your economic engine is measured by one key metric that defines the essence of your business model and is tied to your long-range goal. And that metric is your revenue (or cash flow or profit) per "x".
What drives your economic engine with the greatest impact?
What drives your economic engine with the greatest and most sustainable impact? Author Jim Collins states a company can go from “Good to Great” if it determines and understands the intersection of three elements: 1) What it is deeply passionate about, 2) What it can be best at in its industry, and 3) What drives its economic engine.
What is a company’s economic engine?
One concept that Collins discusses is a company’s economic engine, which is measured by its primary economic denominator. This is not aspirational, although the business you choose for yourself certainly has an impact on what your primary economic denominator is.
How do you measure your economic engine?
Your economic engine is measured by one key metric that defines the essence of your business model and is tied to your long-range goal. And that metric is your revenue (or cash flow or profit) per "x".
How do you build a powerful economic engine?
To have a powerful economic engine, your organization must understand how to generate sustained cash flow and profitability, and express this insight as a single "economic denominator."
What is an economic engine?
Your economic engine is the system that supports the financial infrastructure of your agency.
What is Amazon's hedgehog concept?
Jim also discusses what he calls the “hedgehog” concept. He found that the great companies (also applies to individuals)identified and focused on their “sweet-spot” where talent, passion and economic opportunity merge – see the diagram below.
What are the 3 circles in Good to Great?
The Hedgehog Concept is developed in the book Good to Great. A simple, crystalline concept that flows from deep understanding about the intersection of three circles: 1) what you are deeply passionate about, 2) what you can be the best in the world at, and 3) what best drives your economic or resource engine.
What is a hedgehog concept examples?
How is the Hedgehog Concept Used? The concept originates from an old Greek parable, "The fox knows many things, but the hedgehog knows one big thing." Basically, the fox is a smart predator that can gain a meal by any number of methods. The hedgehog knows just one method of surviving a Foxs attack.
What is fox strategy?
In the parable, the fox uses many strategies to try to catch the hedgehog. It sneaks, pounces, races, and plays dead. And yet, every time, it walks away defeated, its tender nose pricked by spines. The fox never learns that the hedgehog knows how to do one big thing perfectly: defend itself.
How does flywheel effect leadership?
You keep pushing and, after two or three hours of persistent effort, you get the flywheel to complete one entire turn. You keep pushing, and the flywheel begins to move a bit faster, and with continued great effort, you move it around a second rotation. You keep pushing in a consistent direction.
Are you a fox or a hedgehog?
According to a 1953 essay by philosopher Isaiah Berlin, thinkers and leaders can be split in these two animal categories: Those who see the details in everything they do, like the fox, and those who are great at having one singular vision, like the hedgehog.
What is the hedgehog effect?
The hedgehog's dilemma, or sometimes the porcupine dilemma, is a metaphor about the challenges of human intimacy. It describes a situation in which a group of hedgehogs seek to move close to one another to share heat during cold weather.
What is a Level 5 Leadership?
Level 5 leaders understand the importance of putting people first and strategy second. This means finding the right people for the organization, getting rid of the wrong ones, and putting employees in the appropriate positions, all before addressing business tactics.
What is your personal hedgehog?
Essentially, this would be an Ontological, or Personal Hedgehog Concept (PHC), focusing on ways of being as a person, rather than ways of operating as an organization. For each of us, there is one thing that we are better at than anybody else in the world — it's being our authentic self.
How do you move from Good to Great?
How to Move from Good to GreatCreate a vision. Without a crystal clear vision of what you are going to accomplish, you won't know where to start. ... Turn adversity into advantage. ... Cultivate a champion mindset. ... Develop hustle. ... Master your body. ... Practice positive habits. ... Build a winning team. ... Be of service to others.
How would you in your own words define a technology accelerator?
A tech accelerator is actually a fairly simple premise: at one end you put a load of talented people or teams who have an idea for a company, a little bit of money in return for equity in the company (seed funding), provide some mentoring from people who have been there and done it before, give them some office space ...
Measuring Your Revenue/X
Revenue Per Customer
- Focusing on revenue/customer drives increased transactions by each customer or greater spending per transaction. Your decisions are aimed at improving customer loyalty and greater lifetime value. A classic example is Gillette. They moved from disposable razors to high-tech razors with disposable click-in razor blades. A subtle shift - but with higher technology products, …
Revenue Per Project
- Focusing on revenue/project drives sales activity towards the best-fit projects for your company's core competencies. The configuration and delivery of these projects is key, regardless of whether a customer buys multiple projects or just one. An example is an IT company focused on projects that construct and install complex network systems. Decisions determine design and implement…
and There's more.
- How about revenue/customer visit? What if you have a multi-location business and you're looking to expand? Do you measure revenue/store or revenue/region? Southwest Airlines measures revenue/plane. Their brand promise includes lots of flights, which focuses management on the number of planes in the air. What revenue per "x" will you choose to drive your business decision…