ClearPurpose

It’s not often that I get an extremely strategic piece of direct mail, but that’s exactly what happened yesterday. 

Yesterday’s mailing from Ligonier Ministries included a brochure titled “Unwavering Commitments.” The terminology immediately made me think of the term “Non-negotiable Principles” that I’ve been using lately to reflect how organizations need to step up from the platitudes often called “Core Values” to something more meaningful and real.

In reading through the commitments in the brochure, I think they represent a mix of “Non-negotiable Principles” and “Pillars”. With that in mind, in the article linked here I take a shot at laying out the core elements of Ligonier’s strategy purely using this one document.

While this “marketing” piece isn’t designed to be the perfect “strategy” document, it does a great job of ensuring that all stakeholders understand the goal and how the organization will make decisions in working to achieve it.

When was the last time you so clearly communicated your strategy to stakeholders?

Read the full story here.

Today we look at security cameras and connected lights to learn the simple lesson that companies need to make trade-offs in developing products for the Connected Intelligence era. 

Over the years, I’ve used connected security cameras from Ring, Nest, and Arlo. Each of these companies has made decisions. Those decisions involve trade-offs. They’ve had to make compromises to bring their products to market. In this article I look specifically at two decisions each has had to make: battery power vs. AC power, and subscription plan options.

Connected lighting is another space where I’ve seen meaningful compromises and trade-offs. At VisuALS Technology Solutions, as we focused on restoring independence, dignity, and hope for those with debilitating conditions, we studied various options for enabling those we serve to be able turn lights on and off in their homes. In this article I look specifically at the decisions smart lighting companies have had to make about whether or not to require a hub, and whether to make the light bulb smart or rather to make the switch or outlet smart.

There is a way around these compromises. Arlo has done so in the camera space and Philips has done so in the lighting space. They have been able to largely overcome the compromises caused by these trade-off decisions by expanding their product line to cover all of these options. This optionality, however, translates into complexity for the consumer as he seeks to figure out how to capture the power of the Connected Intelligence Revolution in his own home.

In other words, sometimes overcoming tradeoffs merely introduces another tradeoff. Welcome to the revolution!

Read the full article here.

Earlier this week I started a new series on how the Connected Intelligence Revolution is redefining every product and every industry. Today, I want to look at  garage door openers, to explain how challenging connected intelligence is for existing market leaders.

Garage door openers aren’t very susceptible to displacement by software. The factors that make an opener competitive — power, speed, quietness, reliability — have been developed by a small number of market leaders over several decades. A software engineer can’t simply write a few (thousand) lines of code and recreate those capabilities. That should be good news for the incumbents, but instead what we’ve seen is the evidence of how hard it is for existing players to adapt to new realities. 

In his book, The Innovator’s Dilemma, Clayton Christensen described how companies and their ecosystem partners value the things that have always defined success in their industry (e.g. powerful motors and quiet screw drives and reliability). They don’t value things that have never defined success in their industry (e.g. software development and wireless security and agility and integration). They don’t have the architecture or the mindset to be leaders in those capabilities, and they struggle to assign resources and make the investments necessary to establish leadership in those disciplines.

While software-driven startups haven’t had success in building garage door openers, a few are having success with retrofit controllers. These devices are wirelessly connected and app controlled and simply appear to your existing garage door opener like another remote control. Several of these startups have taken the first steps from merely wirelessly connecting the garage door opener to actually bringing it into the Connected Intelligence Revolution. 

So incumbents need to consider whether and where they play in the Connected Intelligence Revolution. Do they need to overcome the inertia of their value network and truly lead in this new revolution, or do they focus on their traditional core strengths and look for partners and complementary ecosystem players to provide the connected intelligence (and be content merely being a commodity component of the total solution)? 

That may sound like a simple question, but the implications are significant for value capture and the nature of the customer relationship. It should be approached with strategic rigor, discretion, and humility. 

Read the full story here.

Almost exactly thirteen years ago I published a book about the Mobility Revolution. In the following years I was often asked “what is the next technology revolution?” For the past several years I’ve been talking about and writing about the Connected Intelligence Revolution, which I define as “the collision of advanced data processing technologies with massive amounts of available data, resulting in new ways that we see the world, anticipate the future, make decisions, and take action”.

As I work with and talk to companies and leaders across industries, the level of strategic challenge and disruption caused by the Connected Intelligence Revolution is becoming more apparent to more people. Over the coming days and weeks, this disruption will be an increased focus here at ClearPurpose, starting this week with a few observations of how Connected Intelligence is already changing how I, as a somewhat typical consumer, interact with the world around me.

For example, a year or so ago I upgraded our in-ground sprinkler controller to one from Rachio. Rachio has truly embraced the capabilities of the Mobility Revolution, replacing all controls and displays on the device with WiFi connectivity and an easy-to-use mobile app. The company has also fully embraced the Connected Intelligence Revolution, combining information I provide about the plants, soil type, and ground slope in each zone with historical weather information for my area, and weather forecasts for the next couple of days, to decide which zones to run for how long each day.

This innovation has changed the rules of competition in the residential irrigation industry and surrounding ecosystem. In this article I explore the strategic implications for industry incumbents, the sprinkler service industry, and even Rachio itself as the company wrestles with network connectivity, security, and the need for a different business model.

Read the full article here.

This week I “attended” the first Faith Driven Entrepreneur conference. Virtual conferences are still a bit unnatural with their mix of live and pre-recorded content and the challenges of networking in a disconnected environment.

The organizers of FDE did a great job on the content side, signing up an impressive lineup of speakers with 19 speakers in 16 slots during the two general sessions (totaling about three and a half hours) plus 9 breakout panel discussions. Some great content was live and I don’t think is (yet?) available online, but in this article I wanted to share three of the speaker slots that were pre-recorded that really challenged me (in a good way). I hope they can encourage you as well.

The conference was a small glimpse into God’s work being done in many places and in many ways. We don’t all look the same. We don’t all go to the same kind of church and we may disagree on different aspects of theology. But we are all seeking to love God and to love our neighbors. Praise God for the work He is doing through faith driven entrepreneurs around the world!

Read the full article.

Over the past month+, we’ve looked at six questions that every leader needs to be prepared to answer about their business. Along the way we’ve studied the business’ purpose, non-negotiable principles, customers, competitive strategy, value proposition, business model, revenue model, operations model, and strategic initiatives. All simply by asking six seemingly simple questions. 

The questions may be short, and the answers may even be crisp and concise, but the work required to be ready to give an answer is far from trivial. In fact, that work, the lessons learned, and the direction provided are what make asking these questions so critical to the success of any business.

I hope these simple questions, and understanding what it takes to be prepared to answer them, have been a blessing to you. May you be blessed with wisdom, knowledge, and understanding!

Read the full story here.

Obviously, initiatives must be well managed to be successful. Project management and scorecarding are two mature disciplines that can play a significant role in ensuring initiatives remain on track.

Today’s article talks about these disciplines and the overall process of monitoring strategic initiatives.

Read the full article here.

Major initiatives often involve change, which can be challenging to manage, and the specific nature of the initiative will impact how we think about and manage the work to be done. Specifically, I think it’s helpful to identify which initiatives are starting something new, which are stopping something old, and which are enhancing an existing capability.

The definition of initiative is “an introductory step” and many initiatives involve starting something new. Tools used by startup businesses can prove helpful when launching new ventures within an existing organization.

Stopping existing activities may not be as much fun as starting new things, but you might be tempted to think that stopping is easier than starting. Often, that’s not the case. Stopping one aspect of operations can impact customers, partners, and other parts of the operations, sometimes in surprising ways.

Some initiatives involve implementing plans to change the investment mix in the organization — defining where to invest and grow and where to merely maintain the current position. In general these types of initiatives are less complex and lower risk than those involving starting or shutting down operations.

Read the full story here.

We’ve spent the past several weeks talking about the first five questions every business needs to be prepared to answer. The sixth and final question “what do you need to do right now?” implies that we need to get to work, but what do we prioritize?

In this article I recommend three frameworks for identifying initiatives worth pursuing: the purpose pyramid, the customer value map, and the cash cycle. Hopefully these three frameworks can help us identify a good list of potential work to do. But, there’s a good chance we can’t do it all, at least not right now. Raking the projects based on strategic alignment, financial impact, and specific resources required enables us to identify those that we can do with the resources available.

So by using these three frameworks, we can identify work that could be done. By prioritizing those projects, we identify the most important work to get done. And based on the resources we have, we select the work that we will do.

Tomorrow we’ll talk about actually doing that work. 

Read the full story here.

We’ve come to the last of the six questions that every business needs to be prepared to answer. What do you need to do right now? It can’t be answered without doing the work of answering the first five questions: Why does your business exist? What principles will you never compromise? Whom do you serve? Why do customers choose you? How do you make money?

Doing without understanding is like wandering in the dark. You’re not likely to make meaningful progress. But understanding without doing is just as unproductive.

Read the full story here.