Core Customer, Profit = Intelligence x Discipline, Satya Nadella, Southwest airlines & Navajo Bitcoin miners
7th November 2021 Evolution Partners Newsletter
“Since the industrial era we have tuned physical space to drive productivity and a sense of mission, purpose and connectivity. How can we use space such that it maps to the employee expectations and the task at hand.” – Satya Nadella
Hope you’re Thriving!
The thing is when you write a blog post entitled Replace busy with stupid, every time you’re busy, and you reflect that you are actually busy, it comes back and strikes you like a wayward boomerang to the cheekbone. It doesn’t mean that the underlying logic isn’t sound, but I say a little “doh” every time I’m busy.
One other thing. Next week on Wednesday, 17 November 2021, Jim Collins is presenting a deep dive into his flywheel concept. The Flywheel concept is a fantastic tool I use with all clients. See below in this email for more details where you can save $100 off tickets or click here.
The thing about identifying your Core Customer is that until you get that right, all strategy work has nowhere near the value. Sure the internal and external assessment must be performed. Still, until you can understand who will pay more profit because you meet their needs better than anyone else, you won’t be able to differentiate yourself in the market. And as I described in my book Made to Thrive, one of the key roles of a leader is to build a strategy, knowing your Core Customer. So what was good this week is that we stress-tested the Core Customer for each company, evolved each company’s Core Customer, and found ways to be unique in their respective marketplaces. The point is that if your strategy isn’t organically driving revenues to your company, growing gross profit dollars or margin, then you need to go back to your Core Customer and start again. Then either redefine or change them and rebuild a strategy to deliver a unique and valuable position in the marketplace that is different from competitors’.
Satya Nadella on the Metaverse and Flexible Work
I’ve spoken before about why Satya Nadella is one of the most successful CEOs of all time (see the comparison to his predecessor in the graph below). The turnaround of Microsoft has to be one of the great business stories of all time.
This week I came across an interesting interview from Harvard Business Review editor in chief Adi Ignatius and Microsoft CEO Satya Nadella. The discussion covers what team collaboration will look like going forward, the next generation of workplace technology, the new imperatives of leadership — and whether and when our future workplaces will start to look like the “metaverse” fantasies of science fiction.
Watch the 30-minute interview here
Profit per X at Southwest airlines
In this interview, Herb Kelleher, former CEO of Southwest Airlines (who passed away in 2019), talks about the Profit per X of his business and the Hedgehog concept at Southwest airlines. He also discusses how they initially set out to be the most productive short-haul airline globally and how they established the Southwest Core Values.
Also, the video looks at the challenges facing the company’s profit per x of profit per fuselage today, how rising fuel prices have been a significant challenge to this, and how the company Core Values brought the company together in the aftermath of 11 September.
The interview, conducted with Good To Great author Jim Collins, outlines how to build a hedgehog concept and profit per x within a business.
Watch the video here
Navajo Bitcoin miners
The Navajo Nation is the largest Native American reservation. Unfortunately, it’s also one of the most impoverished communities in the US, with 1 in 3 living below the poverty line. But things are starting to change on the reservation because the Navajo Nation are now Bitcoin miners. Using solar power and a partnership with WestBlock, an integrated digital asset company that operates an industrial-scale cryptocurrency mining operation in the United States, the initiative provides jobs in an area with 48% unemployment.
Watch the interesting 5 minute story here.
This week on The Growth Whisperers podcast
This week on The Growth Whisperers Brad and Kevin talk about the two critical variables that impact your profit. Intelligence and Discipline. If you have the intelligence to create a profitable strategy but don’t have the discipline, it will negatively impact your profit. If you have the discipline to run an effective and efficient business but don’t have the intelligence to build a strategy that grows your margin, it will negatively impact your profit.
The show helps listeners to zoom out and perhaps understand why they might not be making the profit that they want. Then discover ways to look at your discipline, your intelligence and your profit through a different perspective that could have a large impact on your profit, and the enjoyment you get from your business.
Profit = Intelligence x Discipline
Listen to The Growth Whisperers
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