Basic Principles of Concentrated Sense Strategy ESC
Concentration instead of wallpapering
"He who concentrates his forces sharply, instead of doing it broadly and dispersedly, more easily overcomes the obstacles" - not diversification for good…
«A dog that hunts many rabbits, after all does not hunt any (hunter wisdom)»
Most effective point
"Markets react as interconnected systems, with all their laws" - markets are like biological organisms: changes in one of its elements invariably lead to changes in other elements, that is, on the global system
"Give me a point on which I can stand and move the earth (Archimedes - free translation)"
David defeated Goliath. Why ? Simply because he behaved diametrically opposite to his opponent: not hitting the eagle, but at the most effective point: not how, but where to concentrate the forces will be relevant.
Concentrated Senses Strategy - ESC
Minimum factor: bottleneck
Where is the most effective point?
"What the Target Group needs for its development, it demands with greater enthusiasm." The art of management in an increasingly global world is to be able to recognize "the central problem" within the great mass of problems, which in turn is interconnected with all the others. Whoever fixes it sooner and better will also produce a chain reaction, whereby other minor problems will resolve themselves.
The art is, then, to deliver to the system (market, Target Group, segment, customers = groups of people) the bottleneck factor (= minimum factor), that is, that which requires the most for its development,… and comparatively, with minimum effort
And what does that have to do with us?
The minimum internal factor - bottleneck of our own development, that is, the problem that inhibits this development within the company. By concentrating all efforts on putting that minimum factor aside, development becomes faster and safer.
The external minimum factor - the key to successful development: setting the right priorities, starting with the minimum factor of the Target Group and not your own. Think extroverted and not introverted!
Concentrated Senses Strategy - ESC
Orientation in profit and not in profit
"Whoever wants to increase the profit of his Target Group, will obtain his profit automatically"
The correct goal decides our success.
"If we solve the problems of others, we earn more"
Why can't profit maximization be a permanent priority goal, but a consequence?
Small difference = great effect.
At first glance, the difference in direct or indirect profit maximization is small, but strategically decisive.
These 4 Principles leads us to the concept of «The 7 Phases»:
ESC - Phase 1:
"Those who focus on their strengths can put aside their weaknesses"
Condition for success: differentiation of strengths
Developing strengths
Obtaining a visible profile of competence
Without an "is" there is no "must"
How do we find our special strengths?
An analysis of the "is" comprises four areas:
Work on determining what has been done so far and what could be done
Analyze what problems have been successfully solved
Describe the visions, desires and goals
Investigate what relationships and image exists in the market
ESC - Phase 1
Write down in the form of a dot and thoughts that come to mind.
Properties and Services
What products and services do we generate and which ones could we produce?
How are these products and services different from our three main competitors (quality, price, etc.)
In which area do we have the largest market share?
What would you most like to do in my work and what is my company most appropriate for?
Problem Solving Experiences
What internal problems are best solved or solved?
What known customer issues could be resolved?
Visions and Goals
What is the philosophy of the company?
What are your claims of unfulfilled goals?
Relations and Image
With which Target Groups does the company have or had particularly good relationships?
What do clients expect from us, for what do we have the property profile?
What are your useful relationships (customers, media, suppliers, etc.)?
What are the next steps in relation to special strengths?
Absolute strengths
Based on the previous point, write down all the strengths that have occurred to you and intuitively select the ones that seem most relevant to you.
Relative Strengths Relative strengths
relative to competitors. Now ask yourself, how strong are these properties relative to a representative competitor (scale 0-100 - see below).
Target Groups
Assess strengths from the perspective of the Target Group. The differences regarding their assessment will be the first question of how we see ourselves compared to how others see us, especially a Target Group.
Greater Strengths
Determine the greatest and most promising strengths, drawing the best valued ones through the box (= profile of strengths). Which are the most relevant? Is it possible to deduce superior performance as a result of a combination of individual strengths?
Combination of Strengths
Estimate the degree of personal identification. If it is low or null, it will be necessary to investigate other combinations. Only what you do with pleasure and motivation, you will also do well and it will be the result of your strategy.
| 6. The Profile of Strengths | 0 50 100 |
Scales: 0 = totally below the average of the competitors
50 = in the average of the competitors
100 = especially strong in relation to competitors
ESC - Phase 2
"Preferable to be the first in the town than the second in the city (Caesar)."
Our strengths must fit the Target Group like a key in the lock.
The starting point for this second step is the Strength Profile. It is our key and we must make it fit with a lock and we will have several options, but not yet definitive.
Our greatest strength is worth nothing, if there is no one who needs it or is willing to acquire it.
In this Phase 2 we must determine an identifiable business area, where our strengths reach a high degree of validity.
Uses of our special strengths?
Again: what we do with pleasure has the highest degree of possibility of achieving high performance.
Our areas of action we must determine ourselves and not let them be imposed by others.
Many managers and entrepreneurs let customers, key suppliers, competitors, shareholder partners, or others determine where to lead the business. That is the beginning of the loss of identification.
Initially, being the leader in a smaller business area is better than being in the big average.
It is important to choose a business area, that through our strengths makes us differentiate ourselves from our competitors,… and of course, in the eyes of our Target Group.
"Do it, try it, fix it" (Th. J. Peters, RH Waterman)
From the Strengths Profile, derive various fields of action.
The more "narrow" the scope is defined, the faster the success, motivation and growth. Initial successes are very important, since they carry with them chain reactions.
It is possible to extend the field of action, maintaining loyalty to special strengths.
Consider: "try passes first by studying"
Trial-and-Error process = minimal risk.
Write down in the form of a dot and thoughts that come to mind.
What are the fields of action that inevitably derive from our special strengths?
What other fields of application and marketing possibilities do you see for our strengths?
What fields of action result from the combination of individual strengths?
What problems can be solved with our special strengths?
What tasks and fields of action does our company have or have?
What tasks and fields of action does our company currently have?
In which fields of action does the company have the best market position?
In which fields of action can the company quickly achieve market leadership?
With which fields of action can you better identify yourself?
In which fields of action is the demand for these strengths greater?
"Collect" many fields of action. They can be useful later.
Intuitively select some fields of action.
Give value to your fields of action:
Which ones best match the special strengths (key-lock)?
In which ones would you prefer to operate?
What is the greatest leadership potential?
| Fields of Action
most promising |
Strength | Priority | Potential | Sum |
Record values between 0 and 100. The 100 points equals a total coincidence of the special or priority strengths or those with the highest market potential.
Add the values for each row and write it in the "sum" column.
ESC - Phase 3
Why focus on Target Groups instead of fields of action?
Our products and services are not for abstract fields of action, but for people (Target Groups).
Only through dialogue with the Target Group will it be possible to transform current returns into top returns.
Orientation towards Target Groups triggers a learning process, recognizing the needs, problems and objections of the Target Group, more quickly and accurately than the competitors, thus ensuring a permanent competitive advantage.
Only through a clear segmentation of the Target Group, it is possible to find the market niche that will bring the fastest success.
The Target Group is more important than our capital values, since these intangible values constitute competitive advantage, customer relationship and market power.
Determine the Target Groups behind your field of action.
For example, behind the joint sealing field of action are the problems of sealing concrete expansion joints, concrete-aluminum connection joints, connection joints between precast panels. But who has them? Installers, builders, homeowners, etc. Each Target Group can be re-segmented - by size, regionally, and many other criteria.
Determine which Target Group has the most urgent need for our performance.
In case of coincidence of «key-lock» effect, decide on a Target Group. This is only possible with trials in Target Groups, recording positive and negative reactions.
Analyze our current clients: which ones do I have a better resonance with?
Openly consulting clients why they buy from us and not from competitors. This will provide additional clues about our actual problem-solving capabilities in the most promising Target Group.
Formulate the ideal Target Group.
Ideals have a tendency to transform into realities. This will help to define very concretely the Target Group, its components and the means of contacting more effectively.
Write down in the form of a dot and thoughts that come to mind.
Priority Target Group according to our strengths?
What Target Groups did we have?
What Target Groups do we currently have?
With which Target Groups do we have the best resonance?
In which Target Groups do we solve especially burning problems?
In which Target Groups can we solve burning problems?
Which Target Group has the most urgent need for our returns?
On which Target Groups do we exert a high force of attraction?
How would you describe your customer as a gift?
How would you describe the theoretically optimal Target Group within your field of action?
"The clearer and more homogeneous the Target Group is, the clearer it is to recognize its problems to be solved"
"Collect" many Target Groups. They can be useful later.
Intuitively select some Target Groups.
Value your Target Group:
Which one has the greatest need for our offer?
In which would you prefer to operate and have the best contacts?
Which one can offer the greatest benefit?
| Target Groups
most promising |
Need | Contact | Benefit | Sum |
Enter values between 0 and 100. The 100 points are equivalent to the greatest need of the Target Group or better contact or greater profit potential.
Add the values for each row and write it in the "sum" column.
| 4. The most promising Target Group is |
ESC - Phase 4
"Problems are possibilities in work clothes."
Our company is also there to solve problems and, secondly, to sell products.
Any product or service should solve it and not cause a problem for the customer.
The more problems, the better!
The more precisely we focus on the burning problem of our Target Group, the greater the success.
"I can only understand another, when he has walked many miles in his moccasins" (Indian wisdom)
Start thinking alter centric.
The most burning problem will only be discovered, if in your central thought is how to increase the benefit for my Target Group. Demand, billing and profits will automatically increase.
Put yourself in the position of your Target Group, and argue what problems it might have.
The most important orientation tool is a permanent analysis of demand and problems. This generates the ability to react to ever-changing needs.
Play with the thought of the birth, use and disposal of your offer; think what problems might appear.
Write down all the problems that appear during the study of a field of action, Target Group, client or person.
Please circumscribe the most burning problem in the «dialogue-system».
Define the most burning problem in general, develop a solution proposal and discuss it with representative clients of your Target Group. In the event that a contradictory feed-back is obtained, the Target Group will have to narrow itself even more narrowly.
Write down in the form of a dot and thoughts that come to mind.
What problems of which Target Groups, that is, wants, needs, concerns and claims are known to you?
What problems are you already solving and which could you solve even better?
Which clients have you lost in the past? Find out the precise reasons.
Which customers have you won lately and why?
How do your clients react to your new proposals? Think not only of requests, but also of human reactions such as sympathy, displeasure, etc.
What would be the most burning problem, if you were in the situation of the Target Group?
What problems may appear that are related to our products and services?
Which of these problems can we solve better and what prevents us (internal bottleneck)?
What problems do the Target Group rate as burning?
By what means can we maintain permanent contact with the Target Group (eg seminars, workshops, trainings)
Record all the problems of your Target Group that are related to our offer.
Select the problems of the Target Group, according to their urgency and classify them.
Evaluate the most burning problems according to the following criteria:
What is the problem that is subjectively evaluated by the Target Group as the burning one?
Which of these problems can we solve convincingly and quickly, with the means and strengths currently available?
| Hottest Problems of Target Groups | Subjective appreciation | Objective suitability * | Priority
A / B / C |
Record values between 0 and 100. The 100 points are equivalent to the problem or situation evaluated as the most burning by the Target Group, the one that can be resolved quickly and convincingly. Only intense interaction with the group enables a clear result.
* = Objective suitability means that it is enough that the Target Group thinks that we are the best solver of their problem. Whether or not this is objective does not matter.
Priority A = will be a central point of its actions, whose problem it should be able to solve in the short term. At the end of this period, do not abandon it, but start allocating time to a Priority B problem, that is, something less hot.
ESC - Phase 5
"He who has finished improving has finished being good"
Why is innovation a constant strategic task?
The offer can and should be permanently improved.
The needs and problems of our clients always change.
Innovation = improve offer and its benefits.
Also with limited strengths it is possible to innovate.
Innovation should always be oriented to the burning problem of the Target Group.
Investment risk is reduced to almost zero.
"The good is from the good enemy"
How is compelling innovation developed?
Formulate the burning problem of the Target Group.
Dialogue with the Target Group.
Internal “bottleneck” analysis: determine what is really preventing the best solution from being made.
Improve Information Management.
Not developing oneself, what others have already solved and developed.
Write down in the form of a dot and thoughts that come to mind.
What fundamental improvement possibilities (innovations) do you see in our products and services?
Which innovations solve the problems perceived by the Target Group as the most burning?
Which members of the Target Group are appropriate for an acceptance test?
How is the ideal solution to the problem?
How is the problem currently solved?
What other alternative solutions to the problem are theoretically possible?
What prevents us from executing the innovation?
List all possible bottlenecks.
Which bottleneck prevents innovation more than others?
What information do you need and what know-how is required to carry out the innovation?
What bottlenecks are possible to solve with «Cooperation Partners»?
Based on the burning problem of the Target Group, formulate the ideal solution:
If there is certainty that the Target Group will accept our solution, break down the solution of the problem in partial phases and assess them according to their possibilities of realization:
| Partial stages for improvement
of our offer (innovation) |
Valorization
0 50 100 |
100 pts = solution without external help and can be done on your own; 50 pts = solution with only or temporary external help; 0 points = solution only possible with «Cooperation Partner»
ESC - Phase 6
"He who works alone adds up - he who works together multiplies" (Eastern wisdom)
Why do we need "Cooperation Partners" to succeed?
Our specialization necessarily requires cooperation.
By nature the specialist is predestined to cooperate with others, since he does what he knows better than others. This implies that others will do better what they do not know. These cooperations can take many forms, where it is even undesirable to reach a formal partnership (would lose specialization in more than one area)
Cooperation will always be more successful than competition.
In our performance society, competition is considered the engine of development. It is correct, but the fight for market shares costs money, effort and energy. It is much more sensible to look for forms of cooperation of common interest, to work in the interest of the Target Group.
The union of forces significantly increases the capacity for conversion and penetration.
First, because through cooperation strengths are released, which ultimately favor the Target Group. Second, because market penetration is the faster, the more precise and sharp the concentration of effort.
Cooperation causes synergy.
Together - but not stirred - much more is achieved than alone, on the basis that the "Cooperation Partner" is complementary, that is, it possesses "multiplying" qualities. Partners with similar knowledge and qualities will hardly be able to develop synergies.
«Cooperation capacity is the most important quality in interconnected systems»
How do we find the «optimal Cooperation Partner?
Define the objective and goals of the cooperation.
Cooperation must be aimed at deactivating bottlenecks.
Search «Cooperation Partners» in a systematic way.
Search for complementary «Cooperation Partners».
See to it that the goals of cooperation coincide and are maintained.
When necessary and appropriate, agree on a trial time.
Write down in the form of a dot and thoughts that come to mind.
Back to Phase 5: what were the specific bottlenecks, which you could solve with the help of a «Cooperation Partner?
What are the specialization qualities that the «Cooperation Partner» must possess, to overcome our bottlenecks
?
And which personal ones?
What contributions do we specifically expect from this one?
What do we offer you?
With what promises of success can we motivate a «Cooperation Partner» that interests us?
Through what paths will we reach our "minimum group" (those people, who can resolve our bottleneck and can be "Cooperation Partners"?
What synergies do you hope to obtain from cooperation?
What would be the objective and goals? cooperation (the "coolitic" constitution) of cooperation?
How closely should we and want to work with it?
What are the next steps for optimal cooperation?
Define the objective and joint goals of cooperation:
We want to solve the following most burning problem:
From our next Target Group:
That we will resolve through the following new contributions (innovations):
Make a list of the "Innovation Bottlenecks", describing the desired Partner qualities.
| Innovation Bottlenecks | Qualities / Characteristics of
Cooperation Partner |
Duration
A / B / C |
Low duration record, if the idea is to be permanent (A), occasional (B) or one-time (C)
Determine which groups of people have the "minimum factor" and propose a form of cooperation that motivates them.
Choose Partners with the greatest spiritual harmony.
| 5. My optimal "Cooperation Partner (s)" can be: |
ESC - Phase 7
"Owning Target Groups is more important than owning means of production"
Specialization in variable needs is more risky.
It is risky, when it focuses on products or raw materials, that is, those resources that are variable-renewable-interchangeable.
The constant needs specialization is of lasting success.
Constant are needs such as food, clothing, information, communication, mobility. Variable is everything that serves the satisfaction of these basic needs, such as products, raw materials, know-how, management methods.
Secure a long-term market position.
Only constant and timely innovation, following the echo of the Target Groups, ensures a successful market position over time.
How is it possible to satisfy constant basic needs?
The objective must be, to become a lasting problem solver for the Target Groups themselves.
Define (and periodically redefine) which constant basic need is behind the most burning current problem of each one of the Target Groups. Proposals to improve a solution to a problem (feed-forward) should always be associated with the echo of the target group (feed-back).
Institutionalize contact with the Target Groups.
Communication with the Target Groups is constant and effective, not just rhetoric.
Seek to accumulate more intangible capital than material.
Material capital is wasting away, liquid resources are always scarce. Conversely, intangible values that are kept "up-to-date" according to the needs of the Target Groups, gain in value. Material capital generates dependency, the immaterial does not. The goal is to be "owners of Target Groups", which will automatically bring with it material capital.
Use, convert, recycle, program and multiply your own know-how.
Intangible capital can also be "materialized", eg in the form of software, ultra-targeted training courses, marketing procedures for Target Groups. You have to multiply your own know-how with the help of Partners, using the feed-back received to always improve the concept.
In short: transform into a «Central of Thought». The execution of many phases can be left to others who possess more qualities for it.
Write down in the form of a dot and thoughts that come to mind.
What is the constant basic need behind the burning problem of the Target Group?
What variable need is satisfied by our offer and what basic need is behind it?
With which variable products or services is it possible to satisfy the constant basic need?
What other ways exist, how to satisfy the basic need of the Target Group?
How is it feasible to institutionalize contact with the Target Groups?
Is there a way for our offer to be easily multiplied?
Do you think it is possible to multiply part of the concept through third parties?
What internal company functions do you think are easily delivered to third parties (for example, suppliers, companies made up of current employees)?
What business functions are essential for the company to continue to perform?
Can you imagine under what circumstances the loss of markets could be in real danger?
Try to formulate which constant basic need it manages to satisfy through the solution of the most burning problem of its Target Group. Examples:
Not tile manufacturers, but colonial decorative roof sealing.
Not selling hamburgers, but fast delivery of food for immediate consumption.
Not offering time management seminars, but solving problems of a scarce resource like time.
Register your formulations and evaluate them:
| Constant Basic Need of the Target Group | Priority A / B / C |
A = excellent B = average C = not very adequate
Choose the most precise formulation for your target group's constant basic need.
| 1. The Constant Basic Necessity of my Target Group is:
Note: they can be several, if more than one target group is defined. |
Ricardo Gevert
Born in 1957 and graduated from the German School in Santiago de Chile, he later graduated as Industrial Administrator at the Gabler Institut in the German Federal Republic.
In 1979 he founded his own company in Chile, a print shop for textile products, which, due to the violent opening of markets, increasing imports of Asian textiles and the economic crisis suffered in Chile between 1982 and 1984, forced him to close the business he had started.
1984 and thanks to his skills as a former national volleyball team, he emigrated to Germany as a professional player in the Bundesliga. One year after dedication as a professional athlete, he assumed as "Product Manager" in the multinational chemical consortium Wacker-Chemie in Munich, with more than 15,000 employees worldwide. During this period, he became familiar with strategic thinking "EKS", studied it, assimilated it and applied it to the measure of the prevailing circumstances. The enormous success in this role transforms your business area into the fastest growing and profitable area within the company.
1987 and with 30 years of age he is promoted and assumes as the youngest CEO of the multinational, moving to the productive subsidiary of Wacker-Chemie in Mexico. There it must make profound changes in the commercial strategy, carry out a rationalization before the imminent opening of the Mexican market, as well as develop and consolidate alliances with strategic suppliers and clients. This objective is achieved especially well in the business area of construction chemicals, not only within the Mexican market, but generating increasing exports to Central and South American countries. Due to differences in strategic policies with the parent company, he decides to resign the position and return to Chile as an independent advisor.
1991 and already back in Chile he forms Gevert & Reinhardt Ltda,, assumes as advisor to the multinational Hoechst (today Clariant) for the strategic development of its lines of sealants and adhesives. At the same time, it ventures into the distribution of a line of waterproofing for construction, as well as consulting various local companies, with an emphasis on those linked to construction products.
Since 1995 he began advising his former Mexican client Productos Pennsylvania, specifically in the strategic development of his exports, initially to the southern cone and later to all of Latin America, a role he performs as a permanent consultant, like the recent long-term consultancies of FS-Kunststofftechnologie, Germany, and Grupo Bloteca-Geoteca, Guatemala. During the same period, he advises the Goldschmidt consortium in Germany, in its introduction of new lines of raw materials within the Chilean market. He also advises the North American company HB Fuller, a subsidiary in Chile, in the development of new product lines, both at the supplier and customer level, as well as in its new commercial strategy in the Chilean market. Along with these more permanent consultancies,He has carried out a high number of specific consultancies to various Chilean and foreign companies from different fields.
He is a member of the Strategie Forum eV, Germany, one of the leading associations specializing in strategic development.
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