Footnotes for “Strategic Insights #3:
WELL BY DOING GOOD FOR ALL “FIRST CHOICE” STAKEHOLDERS”
1. The idea of
expanding the pie for all four, main stakeholder groups in any business is
covered in more detail in the following “Merrifield sources”:
is the cover concept for my “High Performance Distribution Ideas for All” DVD
training program. The kit includes 6 DVDS with 53, 10 minute training modules
(11 hours and 40 minutes in total) suitable for using with ALL employees. There
is a near-300 page Implementation Guide. It lists for $995. Waypoint webinar attendees can buy it for $300. And Waypoint clients
get a copy for free, or a credit back on what they may have paid for it. It has
a 30-day unconditional guarantee.
5.6 develops the virtuous reinforcing cycle of why employees must come first. (http://merrifield.com/articles/5_6.asp)
2. For more on how
the best service companies pay front-line service employees 150% of the going
compensation for a given job niche in a given metro labor market see:
(http://merrifield.com/articles/5_2.asp) Pay 150% To Get 200% Output
To insure that no employees slack off after they arrive at
premium wages, high performance work systems have transparent metrics
everywhere and tie incentive compensation to how well the team of peers do.
Then, the ambitious will cajole the laggards. For “six systems” that I have put
into high performance distribution systems, you can read article 5.10 at my site and/or watch DVD program modules 5.1-8.
3. A case example of
a service equation for a contractor supply distribution business is the “Big 8”
of Service Excellence which is well covered in Ex. 3 at my site: http://merrifield.com/exhibits/8elements.pdf.
“what’s in it for me”, think about ways to link the -hearts, minds and wallets
- of front-liners into continuous improvement in the Big 8; “gross margin
$/employee” for the last 12 months trailing; and ultimately some sort of
companywide gainsharing bonus which might emphasize
not just total profit levels, but during “core renewal” programs “delta
background training for all employees as to how premium compensation for their job
niche is tied into exception “margin dollars/employee” through working smarter,
see DVD modules: 2.1-4. For more on the ABC’s of the need for the company to
make profits to reinvest in the growth of the company and every employees
career growth, see modules 2.5-12. The entire second section of the DVD
training is key to going “open book” in an effective
a full discussion on how to segment customers and re-serve/term them
differently, see footnote #3 for “strategic insight” essay #1. For ideas on how
to hyper-focus on big target whales and steal them from your competition who
can’t focus and serve as well because they are too distracted over-serving
minnows, see: The annotated slide show on “How to Crack Target Accounts” at
this link: http://merrifield.com/articles/Cracking_Target_Accounts.pdf.
as skim through Ex. 59 (a training document entitled: “Buy-Sell Process
Improvement Guidelines” at this link: http://merrifield.com/exhibits/Ex%2059%20BSPI%20exhibit.pdf
these strategic concepts for distribution are critical:
mass inventory investment” for best local fill-rates for a target niche
mass sales” from dominating a customer niche pool of customers
core-intersection of most profitable customers and items and plays to maximize
the sales of these two inter-dependent elements to each others
flow-through economics of selling “more old items to the same customer on a
larger average order size basis
*They are all covered extensively
in footnote #4 for Insight Essay #1.
“financial management” ideology and subordinating it to competitive strategy
realities is so difficult, I spent an enormous amount of time detailing how and
why “financial management practices” are harmful in “Chapter Two” of a virtual
book that I did not finish at this link: http://merrifield.com/books/Chapter%202.pdf.
great ideology that grips distributors in a detrimental way is organizing all
of their marketing around product promotional programs that are larded with
incentives from suppliers. Distributors in mature channels should be selling
better value-delivering demand replenishment solutions to customers who are
asking for “supply chain” solutions rather than product promotions. Making the
subtle, but powerful switch to having (profitable) suppliers work with you on
tailored programs to sell more profitable items into most profitable
customers/niches instead of to any and all old and new customers is tough.
Chapter three of the virtual book is about addressing this challenge: http://merrifield.com/books/Chapter3.pdf.