Identifying Your Best Areas for Rapid Business Progress -INNOVATION LEADERSHIP-

1. Segment the customers you and your competitors serve into 3 types

   -those where you will earn a higher profit margin serving them than any competitors will
   -those where you will earn about the same profit margin serving them as competitors will
   -those where you will earn a lower profit margin than some of the competitors will
   

2. Talk to a representative sample of those customers where you can earn a higher profit margin

   -find out what they want lots more of that would allow you to sell more to them or receive higher profit margins

3. Look at the most logical ways to provide these enhancements and consider

   -the track record of your company and similar companies in trying to provide these enhancements for customers

4. For the enhancement methods with the best track records, identify which methods provide the best combination of

   -rapid sales growth
   -high profit margin compared to competitors
   -the least amount of capital relative to the new sales level

5. Consider how acquisitions and outsourcing compare as alternatives to making these enhancements available through internal efforts. Pick the best options in light of 1-5.

6. Discuss these choices with those who will have to implement them. Find out which enhancement methods are most appealing to the potential implementers.

7. Consider how compensation and feedback processes need to be changed to encourage the new methods.

8. Report to us what you conclude and why.

© 1998 Mitchell and Company

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