Just Stop Doing It!
What can you trade for the time and money to tackle bigger initiatives.
by Margaret Reynolds
We have grown up with the phrase “Just Do It!” My compliments to Nike, it has served their mission well. But now it is time for most businesses to ask the question, “What should we stop doing?”
Strategy is a set of choices regarding what you want your business to become. Because it is a choice, it can’t include every option; so some things have to come off the table. Yet few businesses can actually articulate what they won’t do. Some key questions to ask include:
- What customers are not right for you? Either you don’t make money on them, or they require too much of your time or they require you to customize your business model too much, etc.
- What products won’t you make? They either don’t fit with your brand, your core business model, your profitability model or appeal to your target audience.
- What markets won’t you serve? The markets that provide no economies of scale or synergies with your current business, or don’t fit your logistics model.
Finding Funding
You get the drill, a clear strategy is as well-defined by what you won’t do as what you will do. And what you don’t do allows you to do what you do even better!
Tactically, you can’t do everything even if you want to; unless, of course, you have won the lottery or have unlimited resources. But especially in tough times, a company has to make choices.
A small business owner recently identified seven new initiatives essential to the company’s success. But those seven will cost an incremental $1.5 million to fund. Where will the money come from? Some will come from reallocation, but almost no business is capable of moving enough money out of core or established budgets to fund new initiatives. So the company leaders made a “stop doing” list. They came up with more than 1/3 of the total funding required. The ideas were from the mundane (use less paper) to the innovative (share some of the cost savings of eliminated jobs to people picking up the slack). The company leaders intend to repeat this exercise every six months or so, identifying more ideas. The more they do it, the better and more innovative they will get, potentially identifying even bigger opportunities.
Refocus Resources
If you haven’t asked the question lately, “What could we stop doing that will not negatively impact our customers?” you need to. And keep asking it. Here are some key things to probe:
- What are some sacred cows in your industry that nobody questions but don’t really add value the way they used to? Southwest Airlines certainly did that when they eliminated food and seat assignments years ago. Now they don’t take cash for drinks while in flight.
- Look to other industries for models and examples of things that work and try to adapt them.
- Eliminate anything that you (company leaders) do because of ego. These are things that don’t make life better for your employees or your customers, or that don’t contribute revenue.
- Encourage “reporticide,” eliminating any paper reports that are not really necessary or used.
- Evaluate what you are doing that is urgent but not important.
- Look at your marketing plan and be sure you have transitioned to a mix of traditional and digital media, since digital is much less expensive in addition to being able to reach people where they are.
- Look at where you can gain efficiencies to free people up to do more important work.
My experience is that the first time you ask the question, “What should we stop doing?” people look at you like you have three eyes. They aren’t sure you mean it. Then they start with the obvious stuff, such as stop writing monthly reports or make the executives give up their car allowances. But if you continue to do this over time, and encourage people to use their friends and networks to gather suggestions, as well as look outside your company and industry, the suggestions keep getting better and better! When you have done this work, share your results!
Margaret Reynolds is managing principal of Reynolds Consulting, LLC. Reynolds Consulting, LLC has developed a number of tools and processes that help managers lead the strategic implementation of growth. These tools are easy to use, but powerful in achieving success! (816) 350-7680// This e-mail address is being protected from spambots. You need JavaScript enabled to view it
