A free monthly newsletter on leadership, strategy and innovation.

Back issues are archived for free downloading at www.DanielLockConsulting.com.

Welcome

Welcome to the December edition of Strategic Innovation Newsletter. 

I am amazed like everyone else at how quickly this year has rolled around. And I am particularly looking forward to 2009.

Today’s newsletter is actually timed with a breakfast presentation I held this morning on thriving in the current economy, which in turn was inspired by an article I wrote for the next issue of in-busness magazine.  You can download a PDF of the article from this link. In this newsletter I have summarised my points for those who couldn’t make it.

I will be conducting further breakfasts in the new year: January 20, February 10, and March 3. I will send out invites soon.

I wish you all a safe and happy holiday break.

3 Steps To Thriving in the Current Economy

1. Mind Set.
What you believe is what you get. Henry Ford said, “If you believe you can or you believe you can’t, either way your right”. This is as true now as when it was said. Warren Buffett has invested approximately $13 billion in the last three months. $3 billion in GE, $5billion in Goldman Sach’s and $5 billion in a variety of ordinary shares.

Warren is no slouch. He believes there are buying opportunities out there, and the companies he is buying will be able to take advantage of these times to build dominant market positions.

Now is the time when companies can dominate their industries. The next two years will make more millionaires than the last two combined.

2. Know Thyself.
You need to asses your core competencies. Doing this analysis of what you do well will reveal a natural 80/20 relationship. Where 80% of your value is derived from 20% of your efforts. Most managers know this intellectually, but few take the time to drill down and really find out what is going on and where they really make their money.

The 80/20 approach creates energy and growth and gets you focused on the few core things you do well. Jettisoning the rest.

3. Know Your Environment.
To develop a winning strategy you need external information about your market and competitors. Gathering and organising this information isn’t easy and requires effort and judgment skills.

But it’s vital, consider this example: until the 1980’s in the US, department stores had 28% share of retail sales. That meant 72% weren’t their customers and they knew nothing about them at all. And they didn’t care. What they didn’t take the time to find out was why the affluent didn’t shop there, and that the affluent demographic was growing. Consequently by the end of the 1980’s the departments store market share plummeted.

In tough times the need for organised external information is critical.

Bottom line:
Think of your business as an athlete, you need to believe that you can win. You must play to your strengths and you need to know the playing field, and study your competition.

We cant walk around scared, blaming 'them' for what 'they' did. Adversity is what teaches us and business is often very counter intuitive. Boom times are for pruning and preparation, tough times are for expansion and sewing the seeds for growth.

Warren Buffett puts his business model across the best, "We simply try to be fearful when others are greedy and greedy when others are fearful.

Techniques of the month: Balance

Times of adversity are often what make us grow and become better people, and businesses.

We all whimsically say we want to be happy and have it all flowing our way. But if you look back over your lives, I am sure you will agree that it was the tough times that made you who you are.

Over the holiday break do this:

• Write a list of your biggest challenges and failures; next to it write what good came from that.
• Next write a list of the good times, and note what you failed to do and how that caused problems, perhaps from neglect, lack of attention to detail or hubris.

The purpose of this exercise is for you to get a balanced, objective reading on the current conditions and your position. If you do this exercise properly you will experience a sense of gratitude, and clear insight on what to do next.

Good luck!

Announcements: FREE White Papers for Download

I have written two new White Papers, which you can download for FREE.

Click on the links below to download.

WHITE PAPER: How to Implement Enterprise Wide Change Programs

Here you will learn:

• How to develop and foster a change orientated culture
• The five cultural challenges and what do about them
• How to develop accountability and structure to facilitate rapid change programs

WHITE PAPER: The Possibility Organization “Why Innovation is the road to wealth”

Here you will learn:

• The five characteristics of Innovative Organisations and how exploit them in your business
• Characteristics of Richard Branson as he applies innovation to his businesses
• How to measure innovation for maximum results

Daniel Lock
Phone: +61 8 7127 4047
Mobile: +61 413 033 703
E-mail: daniel.lock@daniellock.com.au

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