The purpose of a business is to solve a problem for a customer…which begs this question:
WHAT solution does your organization provide to
WHY do they pay for it?
A way to think about it is that there are three dimensions to any business: WHAT, WHO, and WHY or in terms of Market (WHO), Problem (WHY), and Solution (WHAT).
Leaders tend to describe their organization in terms of one or two, but rarely all three, dimensions. The reason may be because thinking about any three things at the same time challenges the mind. If anyone does think three completely different things all at once, it is hard to do it for any length of time.
The 2:56′ video above uses the graphic below to present a way to visualize an organization in terms of the problem it solves (or WHY anyone needs what the organization provides), for WHO (market), and with Continue reading Get Clear→
An organization exists to solve a problem for people that have that problem. Organizations that seek to perform and grow are wise to be thoughtful about what problem to solve.
Specifically, it is easiest for an organization to grow if the problem it solves is Important, Pervasive, and Persistent. It also helps if the solution addresses a problem that is Nearby to other problems and/or that is a Small part of Bigger Problems. Finally, the solution needs to drive a price that is Rational given its Costs and the Value it drives.
Every customer likely has many problems but is constrained in how many can be addressed at once by limited resources such as: time, money, and manpower. The best practice is to sort problems in priority order based on the lift in performance that comes with a solution and the drag on performance if not solved. Resources are then focused almost exclusively on the top few leaving others to be addressed down the road. Continue reading How to decide what problem to solve.→