Utilization of the Theory of Constraints

Related Podcast:
If your constraint is in the marketplace, Do this!
Theory of Constraints equals Focus and Leverage

We many times talk about partnering; being close or a term I like to use is to be intimate with our customers. In essence, we are really after gaining their acceptance, exactly what Greg Focker so valiantly tries. Have you ever felt like your prospects are checking you out in their own control center and sometimes even unfairly? No matter what size of sale though, you do have to crack that circle of trust. Fortunately, seldom do you have to gain the trust of such a skeptic like Jack.

I find it interesting that many of us struggle in this area; I certainly do on just defining what trust might mean to our customers. That word “Trust” how do you define that? Do you believe trust emerges from meeting obligations or just being open with a prospect? That’s probably part of it. But these alone will not build trust. To leverage the power of choice in interpersonal relationships, trust must be built into the fabric of the relationship through continual reinforcement. It must be focused, manage, nurtured, and rewarded. Before someone decides to grant trust in a working relationship, a calculation goes on in the mind. The person granting your permission into their Circle of Trust can be simplified around these four dimensions:

• Confidence: Does the person have the skills necessary to accomplish the past?
• Reliability: Does the person deliver what is expected, when it is expected and in the form it is expected?
• Open/Honest communications: Is the person forthright in his or her dealings?
• Caring: Is this person willing to defend the interests of the other, even when that interest may affect his or her own interests?

According to the book,The Strongest Link: Forging a Profitable and Enduring Corporate Alliance, if the person scores are low on any one dimension, trust is difficult to achieve. The higher the person scores in each dimension, the stronger the trust. If someone is confident, reliable, honest, and willing to risk their career for you, what’s not to like about them? Ask anyone about these dimensions of trust, and they usually place confidence, reliability, and honesty on the list. However, caring is a different issue. We asked people in a business relationship how they show caring for their counterparts, he had some interesting answers. Typical responses you should listen to the prospects views, think about issues from their perspective, and include that person in all decision-making. But that answer does not go deep enough. Carrying in a business relationship means taking risk even risks that threaten one’s own standing in the firm. That is where true trust lies.

It would be great if your salespeople could develop this kind of trust. However, stop for a second and ask; does your organization build this kind of trust, internally and externally?

This week’s podcast centered on applying the Theory of Constraints externally or when your constraint is in the marketplace. Dr. Lisa offers some great ideas on how to market utilizing the Theory of Constraints and creating that all important “Mafia Offer.” If you would like to learn more about the Mafia Offer, go to Dr. Lisa’s website the Science of Business.

Dr. Lisa is the author of 3 books: Maximizing Profitability, Achieving a Viable Vision, Increasing Cash Velocity, and Mafia Offers is due out in May 2010. Science of Business specializes in increasing profits of highly custom businesses and applying Theory of Constraints, Lean and Six Sigma to sales and marketing, having developed the Mafia Offer Boot Camp, Velocity Scheduling System, and Project Velocity System.

Before becoming a consultant, Dr Lisa was in operations, strategic planning, purchasing, R&D, and quality while working for Clorox, Anheuser-Busch and Coors Brewing. She is known for having developed the Anheuser-Busch plastic beer bottle. In addition to consulting, Dr Lisa is a highly sought after Vistage/TEC speaker on “Maximizing Profitability”. Dr Lisa also provides professional keynote speeches and workshops for organizations like: TLMI, ASC, NTMA, MCAA, NAPM and private events for corporations like: TESSCO, Bostik, GE, Pfizer and Sandvik Coromant.

P.S. The Mafia offer is only as good as what you have created using the Theory of Constraints internally. Listen to Part 1 of this podcast first, Theory of Constraints equals Focus and Leverage

I discovered a study (while reading The Blended Learning Playbook published by MoreSteam) by the Centre for Studies in Advanced Learning Technology of Lancaster University. It suggested that there is a wide use for networked learning for the following reasons:

• Students found a high degree of interactivity and flexibility when combining online tools with other virtual activities. 54% of survey respondents reported feeling more in control of their learning over time and location.
• The variation of interactive options(discussion forums, classroom activities, cats, study halls(encourage more interaction among students in situations where those opportunities did not exist.
• Students in organized blended programs experience more reflective learning, while facilitated deeper processing the material. They felt that they were better able to respond to content or afforded the opportunity to the sword it over time, rather than respond immediately, as is often the case in a traditional classroom environment.
• Recorded discussion and e-learning leaves a permanent record. In a classroom, when the instructor has finished their remarks, most of the instruction is also finished. When e-learning is used as the primary delivery mode for content, it can be re-access as often as a surrogate for refresher in just-in-time learning.
• Network learning provides richer opportunities for peer learning. Particularly in deployments where students are not co-located, tools like discussion forums and project management applications foster more communication within cohorts. Students find great value in the strength of their new network. 79% of respondents to this case study felt they had learned from the contributions of fellow students.

MoreSteam also put a small chart in the book explaining Blended Learning which I thought could serve as an excellent outline for a content marketing strategy. I have used parts of it below to outline the reasons for developing a content marketing strategy:

• Less expensive, more flexible and more effective
• Don’t believe design integration of live and online materials and methods
• Designed to have scheduled meetings with trainers, technicians and sales.
• Rooted in best practices as identified in adult learning theory
• Designed to be delivered as needed and in harmony with work schedule
• More scalable, allowing redirection of personnel resources
• For a variety of experience and levels of technical savvy
• Highly interactive exercises and activities
• Opportunities for team members in leadership to manage project workflow and receive Information on demand

Blended Learning is being proven as a very effective way of learning and for the adult population it may be the most effective way of learning. I encourage before developing a content marketing strategy of your own to review some of the principles of Blended Learning. MoreSteam is a great resource and offers a wide variety of resources at www.moresteam.com

If we are talking about Blending, I have to include a Will it Blend Video in lieu of a picture: How about one for marbles?

By the way, how blended is your marketing?

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Go back-to-school for a second, maybe even as far back as grade school and think about solving mathematical word problems. Remember word problems, each problem described a situation that involved numerical relationships. However, the situation and those relationships had to be first interpreted and understood. That was really just a matter of simple arithmetic computations needed to be performed to get the answer. But, how good were you at it?

Many of the computations were simple and even the use of algebra or other formulas were not required. The problem required that you understood and spelled out precisely the situation that was being described. Once a problem had been set up properly in arithmetic, it was typically very easy.

Here’s a take-off for solving math word problems that simply could be applied to solving your customers problems:

First things first, don’t try to do it alone. Do your analysis with a partner, the customer. This is a joint effort, so blasting your message in the hope someone will understand does not work.

Try to do all of your thinking as part of a conversation lot. Communicate all of your thoughts, decisions, analysis, and conclusions. Communicate how you’re starting the problem, questions you’re asking yourself, steps you’re taking a break in the problem in parts, conclusions you are drawing — everything. If you perform any mental operations even translating an unfamiliar word, or visualizing a picture of a relationship, communicate these operations. Letting each other know what you’re thinking is just imperative.

Use step-by-step analytical procedure. Use the techniques that good problem solvers use, break a problem into parts. Work one part accurately and then move on to the next part. Translate unfamiliar phases into your own words and/or visualize or make diagrams of the relationships presented verbally. Simplify problem by substituting easier numbers, making a table of successive computations, or referring to an earlier problem.

Be extremely accurate. Continually check your thinking. Your thoughts should drive questions like: Is that entirely correct? Is that completely accurate? Never work so quickly that leads to errors. Give efficient time to all parts of the problem. Never just give up on the problem and get some answer. Always try to reason the problem out.

While your customer is working through the problem, keep checking the accuracy so that you will learn to think with more precision and thoroughness. In addition, in your own mind contrast the methods with the way the problem was attacked. How might you break the problem down more completely into some problems? What other steps might you take? How might you visualize or diagrams or relationships making it more effective? Would you work more carefully? In other words, try to imagine ways in which you might attack the problem more effectively.

If your customer uses inaccurate information or computations that lead to wrong answers or maybe does not spell out situations with full understanding try showing them a table or diagram which illustrates, step-by-step, the relationships between the facts in the problem. Stopping your customer and requesting a full explanation of certain computations is your responsibility in helping both of you to fully understand the problem.

Related Posts:

A Little more on applying Little’s Law to Lean your Marketing!
A Little Law applied in Lean Marketing
Mirror Marketing search on Business901

Ok, how good are you? John can run 7 feet in the time that Fred runs 5 feet. How far will John run in the time that Fred runs 15 feet? Show your work?

Reference for this post and a great book for learning Problem Solving & Comprehension techniques.