Bruce Merrifield, President — Merrifield Consulting •QPM •Quantum Profit Management (QPM) •business math for distribution •cost-to-serve math •LIPA •line-item profit analytics in distribution Wednesday, July 19, 2017—Innovation, with its uncertain outcomes can be scary. Many companies shy away from major innovation because it's too abstract and feels risky. But, innovation comes in many forms, from common adaptations done by everyone, to disruptive supply chain innovations like Wal-Mart's cross-docking quick response or Amazon's 2-hour Prime delivery. One way to boost your company innovation IQ is by adopting the Anti-Nitpick Rule and the Wheel of Learning Tool. Anti-Nitpick Rule The rule is simple: If anyone offers a question or idea about how to change for the better, no one can nitpick it unless they have a can-do answer for their nit or an alternate change improvement idea. Arguing against change and for the status quo is not an option. Wheel of Learning Tool Since people nitpick to preserve their world out of underlying fears, one way to take action is with baby-step change experiments. If the steps are small, low-risk, and inexpensive, then even the most anxious teammates can be comfortable and even courageous. The Wheel of Learning Tool is a cyclical curiosity tool that starts with questions, which lead to ideas and theories for possible answers. Theories must be then tested with baby-step experiments that reveal new findings. Reflecting on the findings will lead to new questions to start the circle again. Here's Your Opportunity I explain the wheel in a short video clip and in a new video course called Cost to Serve Math. The course, which consists of 50 five-minute videos, will give you starter questions to start your own wheel work. This video is an excerpt from Lesson 46 of the course, where I discuss the Wheel of Learning and how this simple tool can catapult you forward with innovative thinking. The five-minute lesson in full teaches your team: Why it's good to have multiple ideas/theories when it comes to solving questions internally Why it's good to look at and learn from other channels and industries with similar (but maybe not so obvious) problems How to move from theory to action and new learning Enjoy the excerpt, and I encourage you to consider making the Wheel of Learning an active part of your organization's culture. Also, remember to take a close look at the entire CTS Math course for your company. If you have any questions, contact me or get in touch with Kerri over at iKlarity (Kerri.Laryea@iKlarity.com) to experience the entire course. For more information about Bruce Merrifield, visit: www.merrifieldact2.com |
The 7 Areas That Need Your Focus (brief)The 3rd of 3 lists defining the markers of Distribution companies outpacing their peers. An Analytical Boost to Service ExcellenceBruce Merrifield and Randy MacLean discuss the handful of key customers in your business, and how to keep them happy and loyal. Beyond Business IntelligenceRandy MacLean explains the differences in business intelligence systems, and how to know what you're getting with each kind. LIPA: Prophet of Customer NeedsSee how implementing LIPA can give you the bandwidth to be more accommodating to your customers with analytics-based service excellence Getting a Deeper Understanding of CostsRandy MacLean and Bruce Merrifield of WayPoint Analytics discuss different levels of cost analysis, and why deeper analytics can bring much greater benefits. Optimizing Salesforce Pay Through Deep Data AnalysisCompanies are developing more and more sophisticated approaches to sales compensation and here Bruce Merrifield and Randy MacLean examine the trends. How Distributors Should Rethink Their 2017 Sales Growth PlansWaypoint Analytics uses line item profit analytics to dig deep into the numbers, and Waypoint users learn both bad news and good news about their customers. Managing Product Line ProfitabilityManaging Product Line Profits shows how operations can have a significant impact on net profit and examines Peak Internal Profit, accumulated profit and more Gross Margin Percent: A Poor Indicator of ProfitabilityMany naturally occurring, high gross margin percentage accounts and high gross margin percentage SKUs are operating profit losers. The Advantages of SegmentationA discussion of the benefits of segmentation and how this approach can help distributors achieve far greater levels of profitability. How to Turn Big Data Into Big Profits!Top companies like Amazon can leverage big data to predict consumer buying habits. Bruce Merrifield discusses how you can do this too! Gross Margin Percent: A Poor Indicator of ProfitabilityMost distributors have naturally occurring, high gross margin percentage accounts and high gross margin percentage (small dollar pick) SKUs. Increase Profits: Rank Customers and Act AccordinglyHere is a case study in which the lowest gross margin percentage niche was the most profitable and the highest gross margin percentage was the loser. Discussing the Enterprise Account Selling Model (#3)Continuance of the Enterprise Account Selling Model video series. Refers to a preceding video. Drawn from Bruce's presentation at APIC on March 1, 2016. Discussing the Enterprise Account Selling Model (#2)A continuation of the discussion between Bruce Merrifield and Randy MacLean over Bruce's Enterprise Account Selling Model (part 2). Discussing the Enterprise Account Selling Model (#1)Bruce Merrifield and Randy MacLean discuss Bruce's Enterprise Account Selling Model, as presented at APIC on March 1, 2016. Getting Your Salespeople to Negotiate SmarterUsing the negotiation process to achieve CTS savings, allowing you to offer your customers lower prices while leaving the table with a larger profit. Cost-to-Serve Math: Why Gross Margin May Fool You Every TimeThis video by Bruce Merrifield and Randy MacLean describes why you can't rely solely on gross margin to determine profitability. The Changing Face of SalesAn in-depth look at some historical limitations to sales compensation, and why those factors no longer apply with the availability of LIPA. Gross Margin FixationA fixation on gross margin – without looking at cost-to-serve (CTS) – has blinded countless distributors and limited their ability to achieve profitability. Amazon Tactics: Know Your SKU Profit Winners and LosersSee why your most profitable 200+ items are typically popular commodities with lots of picks for lots of customers with a high average sales dollar per pick. A WayPoint Client and Whale Curve Success StoryLearn how this distributor was able to massively ramp up its profitability even as it lost many of its customers. Cost Structures: What Makes for a Good Sale?Learn why distributors can't simply rely on gross margin when determining whether a sale will add to the bottom line. Changing Sales Strategy Using LIPARandy MacLean talks about the emergence of a new sales strategy. Why You Should Sweat the Small DeliveriesA discussion on how little extras can sometimes add up to a lot of infrastructure cost in wholesale distribution companies. It's Not Who You Think It IsRandy MacLean discusses key profitability metrics for QPM. Prioritizing Your CustomersA discussion of the perils of a cookie cutter approach when it comes to sales and service in the wholesale distribution industry. How Customer Segmentation Unlocks Hidden ProfitsBruce Merrifield of WayPoint Analytics teaches the importance of customer segmentation and the insights it can offer your distribution company. Quantum Profit ManagementRandy MacLean introduces the core principles of QPM and illustrates how it's the most effective way to run a business. The Benefits of a Cost-to-Serve Math ProgramHave you had trouble conveying the importance of CTS to your team? Learn how this course provides an affordable and convenient educational solution. Making Money by Giving Away ProductBruce Merrifield and Randy MacLean discuss profit strategies for wholesale distributors that will raise their cost-to-serve and profits. Webinar: How to Create a Sales Compensation Plan (pt 2)Webinar: Quantum Sales Compensation Plan Part 2 Webinar: How to Create a Sales Compensation Plan (pt 3)Webinar: Quantum Sales Compensation: Designing Your Plan Webinar: How to Create a Sales Compensation Plan (pt 4)Webinar: Quantum Sales Compensation for the Wholesale Distribution Industry: Launching Your Plan |