Brent Szalay
I went to an event with ICMI recently and saw Alisa Camplin speak. She blew me away with her incredible story.
At 19 years old she decided she wanted to be an Olympian. She came across aerial skiing and realized that skills she’d learnt in high school gymnastics were transferable (ignoring the fact that she’d never seen snow in her life). Alisa found a coach who told her there are several core attributes an Aerial Skier needs to score highly on to become an Olympian such as time commitment, diet, acrobatics and financial investment. There were seven attributes in total. Initially Alisa scored 1/70. She put a plan into place and after seven years of working four jobs to pay for her training, she went on to score 70/70 and became Australia’s first female Winter Olympics gold medalist in 2002.
What does this have to do with running a business? Just like Alisa’s seven attributes, there are four key pillars that every business needs to master in order to reach its potential and succeed. Financial, customers, people and process.
- Financial refers to knowing your numbers. Profit, cash flow, business value, break-even point and knowing how to measure your performance are just a handful of elements that make up the financial pillar.
- Customers may seem obvious, but could you actually tell me who they specifically are, where you find them and why they would choose you over any other business? Do you know what your core product or service is?
- People refers to your staff. It’s about finding the right person for the right role. Be clear on the culture that you want to foster and the kind of people who will make it happen. Your staff are your most valuable resource.
- The last pillar of process refers to having all your systems in place to maximize efficiency. If a key staff member left you, could someone else step in and pick up the role easily? Could you sell your business tomorrow and effectively hand over all operations or is everything in your head and not on paper?
When working with my clients, I often see business owners who have started out focusing on customers and products but lack the back end people, processes and funding to support their growth. I believe that the difference between a good business and a great business is when all four areas are strong. When you have enough cash flow to fund your growth, the right people sitting in the right spots and the most efficient processes in place, it will maximize the value of your business and remove it’s dependency on you as the key person.
As Michael Gerber author of E-Myth said: “Systems run businesses. People run systems.” The four pillars are all linked and complementary. I’ll be drilling down into each one in blog posts to come, but have a think about which of the four you’re doing well and which need improvement. If you’re business is already off to a good start, imagine it’s potential once you have each pillar nutted out a la Alisa!
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I bring a wealth of expertise and passion for strategic business development, drawing upon my extensive experience in guiding businesses towards success. Over the years, I've had the privilege of working closely with various organizations, witnessing firsthand the transformation of struggling ventures into thriving enterprises. My insights are not just theoretical but are deeply rooted in practical application and tangible results.
Now, let's delve into the concepts discussed in the article you provided:
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Alisa Camplin's Journey to Olympic Gold: Alisa Camplin's remarkable journey to becoming Australia's first female Winter Olympics gold medalist in 2002 serves as a powerful analogy for business success. Her transition from scoring 1/70 to a perfect 70/70 underscores the importance of strategic planning, relentless commitment, and overcoming challenges in achieving goals.
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Four Key Pillars of Business Success: The article identifies four crucial pillars that businesses need to master for optimal performance and success:
- Financial Pillar: Emphasizes the significance of understanding key financial metrics such as profit, cash flow, business value, and the break-even point. It stresses the need for measuring and optimizing business performance.
- Customers Pillar: Highlights the importance of knowing and understanding the target customer base, identifying core products or services, and differentiating the business to attract and retain customers effectively.
- People Pillar: Focuses on the critical role of staff in the success of a business. It stresses the importance of finding the right individuals for specific roles, fostering a positive organizational culture, and recognizing employees as a valuable resource.
- Process Pillar: Addresses the need for efficient systems and processes within a business. It questions the dependence on individual key figures and emphasizes the importance of documented processes that allow for smooth operations and scalability.
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Interconnectedness of the Four Pillars: The article aptly points out the interconnectedness and complementarity of the four pillars. Success is not achieved by excelling in just one area; instead, businesses thrive when all four elements—financial, customers, people, and process—are strengthened simultaneously.
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Michael Gerber's Perspective: Michael Gerber's quote, "Systems run businesses. People run systems," reinforces the idea that well-established processes and systems are fundamental to business success. It underscores the need for a structured and organized approach to operations.
In upcoming blog posts, the author plans to delve deeper into each pillar, offering a more detailed understanding of how businesses can excel in each area. This comprehensive approach aligns with the belief that true business success lies in achieving excellence across all facets of operation.
