Build Businesses, not Hamburgers


 

Ray Kroc didn’t get rich selling McDonald’s hamburgers, he got rich selling franchises to other folks who got rich selling McDonald’s hamburgers.

Businesses that sell hamburgers have to be good at two very different things – making and selling hamburgers and building businesses that make and sell hamburgers. How often do we work with organisations that are good at making and selling things but not so good at building businesses?

Kroc found the secret to building the businesses and left it to the franchisees to make and sell the hamburgers. They didn’t have to be good at building their businesses because the franchise showed them exactly how to do it.

A franchise has a system. Without the system inherent in the franchise, neither Kroc nor his franchisees would have gotten rich.

Organizations need a culture of discipline – this means discipline in thought followed by discipline in execution – and both functions need systems for them to work.

Discipline in thought is most often represented by some form of business plan. Almost every organisation has one. But what about the discipline in execution? What about a system to make sure the plan is executed as the CEO thinks it should be executed?

And there’s the rub. While there are many planning systems around, until recently there was no such thing as a “strategy execution system”. This is a system that helps your clients build the business as well as making and selling the hamburgers. If you don’t have the execution system, you are playing Russian roulette with the results.

In recent years several “strategy execution systems” have appeared in the marketplace. Most of them are little more than automated personnel appraisal systems. They focus on employee competencies, not on corporate initiatives. This can be useful, but competencies are not enough – the CEO needs a way to focus on the organization’s strategic initiatives, not just on its employee competencies.

One strategy execution system we like (and we use in our practice), focuses explicitly on corporate initiatives, not on employee competencies. This is KeyneLink® http://www.keyneinsight.com.

KeyneLink is inexpensive because it is web-based, low risk because it is implemented in small bites and is implemented with experienced consultant/partners who know their clients’ business and their own.

KeyneLink helps the CEO to create the strategic initiatives, clarify and communicate them throughout the organization and make sure they are achieved in a way neither you nor he has ever seen before. If there is a more important job for the CEO to do, I’d like to know what it is.

It won’t help much with the hamburgers but it will help the CEO to build the business.

published with kind permission of Chris Jones – partner StrategyLink Consulting www.strategylinkconsulting.com

One Response to Build Businesses, not Hamburgers

  1. blandi1980 says:

    Thanks for the post. I am intrigued by your discussion on strategy execution systems. It reminds me of an old maxim “Plan your work, work your plan…”
    Having a methodology for different tasks and business functions will allow us to have a control group to judge future modifications of the strategy against.

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