Why does the study of movement; distribution and quality of water have anything to do with leading a company and identifying a strategic direction?
While our roles in the organization have been defined and described many different ways, our actions, strategies, successes and failures can be judged by determining how well we have been able to analyze our company’s “streams of income” and act upon the results.
FACT: OUR BUSINESSES ARE MADE UP OF STREAMS OF INCOME THAT FLOW TOWARDS AN OCEAN OF PROFIT. EACH STREAM’S WIDTH, DEPTH, LENGTH, AND CURRENT CAN BE MEASURED. HOWEVER, ALL STREAMS OF INCOME HAVE ONE THING IN COMMON- THEY WILL DRY UP!
If there was ever a question about where our focus should be, the above fact points us in the proper direction. Our strategies must be about finding ways to widen, deepen and lengthen our streams of income. We must find ways to increase the stream’s current as well. It is also equally as important to find new streams of income, as it is to work with existing streams.
To be a corporate hydrologist, conduct the following research assignment:
- List ALL streams of income. It is critical to include ALL sources of income.
- Place them in descending order based on total dollar amount.
- Determine the pace in which each stream has been growing or shrinking by providing a year-by-year comparison over the past five years.
- Identify the “trend” by drawing an arrow next to each stream. Point the arrow up if the stream is growing or down if the stream is shrinking.
- Calculate the percentage of change (up or down) associated with each stream and delineate it accordingly.
- Under each stream of income, describe in detail the potential growth of income to your company that the particular stream represents if maximized.
- Put a green mark next to each stream that has the potential to increase the flow of income to your company. Put a red mark next to each stream that does not have the potential of increasing the flow of income to your company.
- Under each stream of income, list as many action items that you can think of that must be done in order to increase the flow.
- Estimate the potential return to your company by improving the flow of each stream of income.
- Place each stream of income on a list in descending order based on the potential return to your company as estimated in #8 above.
- On a separate list, identify three strategies that your company is pursuing or should begin pursuing to create a NEW stream of income.
- Underneath each of the three strategies for creating a new stream of income, estimate the potential return to the company (ROI) if you are successful in starting this stream to flow.
- Under each of the three strategies for creating a new stream of income, list the action items you are committed to do in pursuing this initiative. Identify measurements needed to determine success or failure.
- Gather your strategic team together and conduct this exercise with them. Look at the differences and similarities in their results compared to yours.
- Formulate your company’s strategic plan based on the information gathered by you and your team.
Congratulations! You have graduated from Eye-Cubed University with a Major in Hydrology. You passed your final exam with flying colors and have successfully analyzed your business using the tools of a hydrologist. The specific action items you listed represent your immediate strategic plan. Implement brilliantly and you are destined to widen, deepen and lengthen your existing streams of income. And while doing so, you haven’t neglected to forge new ground by exploring and discovering new income streams that will surely allow your company to reach its Eye-Cubed potential.
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