Profitable Growth Strategy E-Book

Thomas Michael Hogg

• Herausgeber: tredition
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 95

Veröffentlichungsjahr: 2020

Beschreibung

In this challenging book, Thomas Michael Hogg reveals the success formula of companies with high profitable growth. The typical key success factors of German companies are presented in an inspiring manner to motivate each decision maker taking action immediately. The 7-step profitable growth methodology published in this book is a proven blueprint implemented at leading enterprises in multiple countries and will transform your business mindset. Use this practical framework to scale your company achieving both top- and bottom-line growth. The content is targeted to help CEOs, Directors, and Entrepreneurs reach the next level and overcome the current crisis. "The world's leading economies consist of a wide-ranging source of financially successful companies. The book carries insightful lessons for small and medium-sized companies about the importance of growth and competitiveness." Lucero Alvarez Bloomberg TV / El Financiero The reader of this book will receive valuable insights, such as: -How to make profitable your unprofitable business -How to organize and structure your complex company -How to help a CEO stop being the bottleneck of the business -How to make your employees very productive and mak-ing your business improve sales -How to grow your business In brief, giving structure, fo-cus and profitable growth to a company. Thomas Michael Hogg is the founder of TMH Consulting & Investment Group and 20+ years-experienced advisor to global companies (such as adidas, PepsiCo, Johnson Controls) as well as to small and medium sized enterprises. Thomas Michael has collaborated cross-industry with more than 300 companies and has been featured in Bloomberg TV, CNN Expansión, Reforma, Milenio, and Business Club Magazine. Furthermore, he is a columnist for El Financiero.

Leseprobe

Copyright © 2020 by

TMH CONSULTING & INVESTMENT GROUP

THOMAS MICHAEL HOGG

All rights reserved.

Book Cover Design: Adriana Longoria

Publisher: tredition GmbH, Halenreie 40-44, 22359 Hamburg, Germany

ISBN

978-3-347-11781-5 (Paperback)

978-3-347-11782-2 (Hardcover)

978-3-347-11783-9 (eBook)

Published by tredition. Published in the USA. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, without the prior written permission of the publisher, except for the use of brief quotations in a book review and noncommercial uses permitted by copyright law. Disclaimer: There are no guarantees. Neither the publisher nor author shall be liable for the level of success readers may experience by following strategies contained in this book. You should consult with TMH Consulting where appropriate for individual situations.

Dedication:To God, my wonderful wife, children and family

CONTENTS

INTRODUCTION

1. 8020 Focus and No distraction

CEO challenge / 16x Pareto Principle / Case Studies

2. It is all about quality

Quality programme on footballs / TÜV / Case Studies

3. Lead a niche

Würth – A benchmark company / Case Studies

4. Innovation at its best

Nowitzki fade away jump / German "Erfindergeist" led By Chancellor Merkel / Hannover Messe / Case Studies

5. Leave the country

Geographical footprint / Tips for international market penetration / Case Studies

6. Invest, capture and save money

Trust is good, but control is better / Profitable Growth zone / Case Studies

7. Plan, plan, plan

A strategic plan / Campo Bahia / Case Studies

WHAT GERMANS STILL NEED TO IMPROVE

THE COVID-19 SCENARIO

EXECUTIVE SUMMARY

- PROFITABLE GROWTH AUTO ANALYSIS & PLAN

- POSTS FOR PROFITABLE GROWTH

- WHY PROFITABLE GROWTH IS IMPORTANT

- MY LESSONS LEARNED AT ADIDAS

- ABOUT THE AUTHOR

- ABOUT ProfitableGrowthStrategy.com

"Thomas is an excellent strategic planning consultant. His methodology to achieve established objectives is exponential."

Gladiomar Hernandez, Founder & CEO of Hacsys

"Through my experience driving innovation at some of the world's leading innovation companies, I have come to the realization that success of any company or venture is determined by the focus of its strategy and quality of its execution. Thomas Michael Hogg has produced an excellent framework rooted in this principle based on his work with a particular focus on German companies."

Gunjan Bhow, Former Executive at Disney, Amazon, and Microsoft Global Chief Digital Officer at Walgreens Boots Alliance

"This book is a compass for business leaders in uncertain times. The German industry has distinguished itself for its long-term vision and innovation, concepts that are holistically and brilliantly addressed in this publication. Its goal of guiding companies to a profitable level with healthy finances and growth is successfully described in these pages."

Bernd Rohde, CEO of Hannover Fairs Mexico

"The world’s leading economies consist of a wide-ranging source of financially successful companies. The book carries insightful lessons for small and medium-sized companies about the importance of growth and competitiveness."

Lucero Alvarez, Bloomberg TV / El Financiero

"TMH Consulting stands for achieving profitable growth always in an ethical way. This books resumes the way of working of Thomas and his team. Our company improved financially and gained significant market share that made us overcome the crisis."

Rene Elizondo, CEO of Robertson Industries

“This book is very practical and business savvy with human sense. Thomas is supersharp to provide customer and company value both B2B and B2C. A must-read for all SME CEOs and Entrepreneurs who want to learn more about the German specific culture of doing business successfully.”

Marcus Koch, Investor, Former Managing Director Redblue

INTRODUCTION

The day to day of a Business owner, CEO or Top Manager gets currently really turbulent and stressful. Delivering constantly to stakeholders or achieving a yearly budget is highly complex, especially in times of crisis. You have to regain and repeat success. You have to outperform over and over again.

In the midst of severe financial pressure and a volatile global economy many companies and managers fail to achieve (high) annual profitable growth.

They struggle with both strategy decision-making and strategy execution.

The number of mistakes made and the lack of resources (time and money) allocated to a well-planned and realistic strategy have been one of my essential takeaways on why many enterprises fail.

In 2005, I was one of the happiest persons in the world when I got the opportunity to work for adidas, the global sporting goods giant and world market leader for football (soccer) products. Working day by day with my favourite sport brand one year before the FIFA World Cup 2006 in Germany seemed like a dream come true. I experienced working for and with highly competitive professionals that had the goal to exceed customer needs and quality standards. Furthermore, the company and top management achieved sustainable business results with double-digit growth, especially in emerging countries. At the time, I met Carlos Maza, adidas Mexico Marketing Director, who was boosting sales through a well-defined market penetration strategy and marketing-mix. It was then that I profoundly understood how certain companies grow profitably with a sound strategic plan and execution.

While working as a consultant for PepsiCo, Johnson Controls, Campbell's Soup and several German companies later in my career it was amazing to see how certain decision makers drove and led the growth path of their companies. As always, one learns from the good role models.

In my 20 years of market experience I have seen clear patterns, notably of German but also of other international midsized companies, that succeeded on a global scale improving their financial indicators year by year.

This book aims to help CEOs, Directors and Entrepreneurs to focus on certain concepts that will definitely enhance the financial results of your business achieving both solid top- and bottom-line growth.

Therefore, we designed at TMH Consulting a unique 7-step methodology that surely is going to improve your business results:

© TMH 7-step Profitable Growth Strategy Methodology

Chapter 1 emphasizes on defining and executing on key clients, priorities, people, projects, and tasks bringing you 16x more results. Specific secrets about the quality from German companies is explained in Chapter 2. The target market definition serving a specific segment building a loyal “tribe” is detailed in Chapter 3. Chapter 4 addresses the importance on R&D launching functional products. Chapter 5 gives advice to penetrate international markets with your products and/or services. How to enter the profitable growth zone is covered in detail in Chapter 6. A well-developed plan, a common German habit, will conclude the process to create a more holistic and financially successful business model (Chapter 7).

What are the benefits of reading this business masterclass book and putting into practice the 7-step Profitable Growth competencies?

• You will develop critical skills for strategic planning

• You will gain profound understanding of sales and profit drivers

• Receiving clarity for decision making regarding your 2-years growth plan

• Acquisition of new strategy roadmap and execution practices, also to withstand crisis situations

• Gaining insights on how to reach the highest potential of your company or strategic business unit with a sound business mindset

• Reducing stress and uncertainty concerning daily performance pressure

• Improving your ability to achieve financial results

The “TMH Profitable Growth Strategy” book covers elementary tactical and strategic planning, sales & marketing, finance, and management concepts from a completely new and holistic perspective. With this knowledge, you will be able to plan to grow your company above the industry profitability level.

For the past 20 years, my consultant colleagues and I have observed what is working out and what is not. Addressing the Profitable Growth dilemma and delivering business results is our passion, as we know the CEOs are often very lonely and desperate to find the right track to success.

This book is based on what is happening in the real business world and about the challenges company leaders face on a daily basis. A practical approach to bring a company to the next level was the motivator to write this book. This is why, we document the knowledge gained to guide your profitable growth path.

The goal: Entering the profitable growth zone.

Enjoy reading about profitable growth solutions.

PART I

8020 Focus andNo distraction

1 – 8020 Focus and No distraction

Doing a successful and result-oriented job is not as easy as it seems. In 1999, I was stunned by the productivity level and focus of my work colleague at a bank in the South of Germany. Mrs. Muller, a trusted and long-time employee in that bank, was scanning and double checking all high-income transfer receipts. I noticed two aspects at the same time, there were many zeros on each receipt and there were only a few receipts scanned compared to the amount of numerous boxes of thousands of documents. I was confronted the first time with the 8020 concept. All of the high and important transfers were taken into account whereas the majority of transfers weren't included by Mrs. Muller. She only focused on the most important transfers. But as a matter of fact the real lessons learned from her was her focus on time and to deliver her tasks each day in 8 hours because she had a 40 hours week. Every day she performed and there was zero distraction to do what she had to do on her 8 hour-workday. She was delivering concentrated value by simply doing what she was supposed to do.

Sounds like a normal working performance. But, there is one common mistake I see day by day in the numerous offices I visit.

Employees are very often “just not” doing what they are supposed to do.

And even worse, their boss, the CEO, is very often neither doing what he/she is supposed to be doing.

They are trapped in the daily business and the incoming operative problems, mails, social media and non-strategic tasks. They are busier with efficiency than with effectiveness. Doing the right things versus doing things right.

CEO challenge

The key challenge for a CEO is to manage that he/she and importantly his/her team are focusing and executing on the right things each day. And that doing the right things impact financially on profitable growth. CEOs have to define where the company will be in 2 years and not take part in each single decision which his or her managers are responsible for.

CEOs have to define the long-term vision and the fundamental business model elements (for instance closing constant deals with their key account, developing and hiring an outstanding sales team, defining a required service level or establishing a best in class business practice or process) that provide the company a competitive advantage and generate financial value.

CEOs are responsible for the strategy.

Strategy is a synonym for renunciation. To focus, CEOs have to trade off.

How much time do you spent each day on operational issues?

How much of your time are you in the 8020 zone?

In 1906, Vilfredo Pareto noted that 20% of the population in Italy owned 80% of the property. He proposed that this ratio could be found continuously in the physical world and theorized it might indicate a natural law. For business, we know that in most cases the 8020 rule comes true:

o 80% of work is completed by 20% of your team.

o 20% of your best clients (or customer segment) makes 80% of your sales.

o 20% of your products makes 80% of your sales.

o