I want to talk about a Model of understanding time horizons in a business so that Owners and Executives can think about their business. I talk about this Model as the 4 P’s: Products/Projects, Process, Plans, and People. It is this model that I want to explore over the next few weeks.
Products and Projects are the work and products that are going on today. This represents the “Technician” in the E-myth model. This is very important in all businesses as it dominates near term viability of the business. Every day a business needs to execute its current business so that it has the money to be in business tomorrow. There is no question about the importance of today.
Process is my view of the mid-term outlook of a business. This is 6 – 18 months out typically. Every business needs to look at the current business and account for inflationary pressures and think about how it will grow in profitability. That means that there will need to be changes in the way the business is executed today. How will you scale revenue? Can you do what you do today for less cost or with fewer people? All of that looks not just at changes in the top line but at the bottom line as well.
Plans are all about the long term strategy for the company 3 years to 5 years out. Think about how the market that you are in is going to change. How will you prepare your company for that potential future? This is the trajectory that is most likely to require change in any business. Many business owners think that they will have a status quo for the foreseeable future. This is just not true. Think of the taxi companies that are being eaten up by Uber. Don’t let this happen to you!
Finally, there are People. People are the core of any business in the long term. If you want to fulfill your Plans, you will need the right people both inside and outside the organization. How are you finding the right people? Are you onboarding them well? Are you providing ongoing training and support? Are you retaining the best talent? This is your biggest job as a leader.
Have a great day!
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