Mastering Your Business – Using the Power of Levers
When I was growing up, I worked for a company that installed pools in people’s backyards. When it came time to actually remove the dirt, we called in the best of the best, let’s call him Ernie. Ernie would show up with his backhoe and asked to see a design for the pool. After studying the shape and depth, he went to work. He could move the backhoe around to master the perfect shape and depth of each part of the pool, without getting out and measuring his angles or how much depth he had achieved. It was absolutely perfect every single time. Ernie knew just how to pull each lever of the backhoe and turn at just the right angles to carve out the desired shape.
Much like Ernie, knowing what “levers” to pull in our business to change a desired factor is extremely important. All too often, we find business owners that want to change something in their business, but don’t know the associated lever to champion that change. Knowing how to work the backhoe of our business can help in three hugely important areas.
1. Solving Business Problems
Those problems that keep you up at night have solutions, and you can end those sleepless nights by understanding which levers to pull when an unexpected challenge arises. When we talk about levers that drive your business it really is about understanding the core of your business. It is getting to the core of understanding why your customers come to you. Often times, we live in a world where all we do is fight fires and miss the true reason our customers want to do business with us. Take back control and worry less when an issue comes to fruition.
2. Creating Ongoing Competitive Advantage
Imagine you have a company that wants to be more competitively advantaged in pricing, but doesn’t know the true cost of creating a product from start to finish. If that company knew what the true cost of each step was, and thus knew the true cost of that product, they would have the ability to turn the “lever” to create a competitive pricing plan and beat out the competition that doesn’t have that advantage. Without fear of losing money on a low-priced item or creating deals for high volume accounts, it allows leaders to position themselves right where they want to be in the marketplace.
3. Looking towards the future
When leaders in a company look towards future goals, it requires an action plan of changes required to move the organization towards those goals. Coming up with those action steps without understanding of the company levers that create change is impossible. If leaders have a full understanding of how changes to the current company structure will affect their future, they are able to come up with a realistic plan to see there company into a successful future.