Before You Do Anything!

Before you do anything else inside your organization, define specifically, clearly, and with a rigorous approach your firm's value proposition.

This is STEP ONE in strategic planning. If you are working on a strategy and haven't completed this vital step, then you are setting yourself up for mediocrity. Yes, mediocrity. I wouldn't say failure, but to most shareholders, mediocrity is considered failure.

The first step in STEP ONE is to do some looking around. For example, look at your favorite websites, visit your favorite places to eat, and research market leaders in other industries. Look at how they create value and hone in on who their target customer is. Then look at how they are set up to deliver that value. Zappos.com, a leading online shoe store, creates value by offering low-priced shoes, huge selection, and hassle-free service. Their operating model is set up to deliver those "components of value" in a way that could be classified as excellent.

Anybody care to guess what STEP TWO is?