Three Great Business Talents
People are always coming up with new ways to define the essential ingredients of a great business. Hundreds of books have been written on the topic. However, I have observed that one or more of the following three critical skills or talents are at the root of every great business.
- The ability to create new products or services (innovation)
- The ability to develop valuable relationship (marketing and sales)
- The ability to deliver on your promise to customers (systems)
Innovation
Everyone loves new products and services. It’s human nature. If you develop the right new product or service, a buzz develops in the marketplace and customer demand grows rapidly—profit margin and sales are usually high.
Years ago, I had a business that manufactured framed art. We created gorgeous silk-screened designs on glass and mirror for the home décor market. National retailers like J.C. Penny’s and Target Stores couldn’t keep our products on their shelves. The phone rang off the hook from all over the country; we had to manufacture twenty-four hours a day to keep up. It’s a great feeling—like being a rock star! (I think).
What is innovation? It can be a new invention, technology, process, or business concept. However, it is most often a significant variation or improvement to something that already exists. Innovation is the skill of developing the new "best solution"—from the customer's point of view.
Innovation adds new product features or benefits not previously available. It makes products cheaper, faster, smaller, better, stronger, more efficient, and so on. Innovative business systems can produce distinctive sales, marketing or advertising methods, an improved distribution or delivery process, creative pricing or terms, more convenience, lower risk, better guarantee, or “killer customer care.”
The talent to see and develop things in new ways—that customers love—can be the basis of a good business. However, innovation requires risk and sometimes customers aren’t impressed, or the competition swoops in and knocks off your great new idea. You also need the second great talent.
Relationship Building
Many small businesses flourish because the owner is a natural at building relationships. He is a person with vision, has a strong will to get his idea to market, is sometimes daring, and is usually very likable or even charismatic. He just seems to make things happen. He is a “rainmaker.”
When I operated my framed-art business, I was in my twenties and pretty wet behind the ears. At trade shows, buyers would tell us that our products were better than our competition. So why were competitors ten times larger than us? Well, innovative products drove our business, not marketing and sales. We weren't effective at building relationships; we lacked industry influence and clout!
Business author, Peter Drucker, stated, “A business has two purposes: marketing and innovation.” However, this statement implies that the business will deliver on its promise, which makes system building, or execution, the third great talent.
System Building
Business execution is the ability to profitably give customers what they want and expect every single time. When you write a brochure or give a sales presentation, you always speak of your company—its products and services—in glowing terms. However, to make the dream come true for your customer is another matter altogether—many struggle to do it well.
Execution is all about creating effective business systems that deliver a consistent and desirable result, routinely meeting and exceeding customer expectations. As your company matures and grows, systematic improvement of business processes is the secret to long-term success.
In my framed-art business, the marketplace was very competitive. Our manufacturing processes and costs were calculated in pennies. The business had to run like a Swiss watch for us to be profitable. It was not easy to have everything run smoothly all of the time.
One day, I read a book by Charles Jay Coonradt, The Game of Work. We created systems that were like games—and we kept score. Productivity soared. This was my first experience with systems thinking. The principles I learned over thirty years ago very much apply in today’s world. Now, I am a bit fanatical on the topic of business systems and processes. You should be too.
So, which talent is the most important? Innovation will get your juices flowing and provide opportunities for high margins and growth. Relationship building will ensure that your business continually attracts new customers. Systemization and execution will enable you to retain customers and generate a healthy profit.
So, if you want to become a great company, find a way to do all three! Each skill can be learned, but it’s not likely that the relationship builder is also a systems person. Hire those who compliment your strengths. As you acquire partners or managers—remember—get an innovator, a relationship builder and a systems builder. Your organization will become remarkable!
The best is yet to come. Let's get started...
