Lord Keynes once pointed at that in the long run we are all dead. Achieving more is most beneficial when it occurs rapidly. This article contains an example of how this principle might be applied by a publisher to accomplish 20 times more with the same time, effort, and resources.
When identifying large opportunities to accomplish 20 times more, nth degree thinking is critical. Nth degree thinking requires you to take one element of your business environment and expand it to extremes . . . both much larger and much smaller than you can possibly imagine could occur. In picking 2,000 percent solution (any way of accomplishing 20 times more with the same, time, effort, and resources) opportunities, you also apply nth degree thinking. To do so you stretch the benefits that stakeholders could gain or lose to their limits.
Here's an example. Assume that a book publisher examines the following areas using the nth degree test for competitive and profit impact: cost of development; cost of production; duration of development; distribution availability in bookstores; amount of publicity; amount of positive word-of-mouth comments; pleasure that readers get from the book; what percentage of readers like the book; and pricing. Observe that taking the number of positive word-of-mouth comments to the maximum would tend to overwhelm the other areas. Most publishers, however, don't put much attention in that area. A publisher that did could probably expect to create an overwhelming 2,000 percent solution for its books and its publishing performance.
Length of time to gain results is an important element in focusing your attention because benefits that arrive sooner are surer and more valuable than ones that take longer. Certainly, in choosing between creating a 2,000 percent solution that you can put in place over a few months and one that will require decades, most would choose to pursue first the one that requires only months. An analysis of the present value of the cash flow benefits (discounting the future estimated benefits for inflation and uncertainty) would also validate that choice.
The publisher's most valuable benefit for increased sales is to generate unlimited amounts of positive word of mouth about its books.
Here are some of the possible solutions that the publisher might have identified that help improve other benefits:
-Publish books written by well-regarded celebrities with intriguing new information.
-Authors dedicate royalties to popular charities which will promote the books.
-Companies donate books as part of their product promotions due to the subject matter.
-Tie the book launch timing to a series of related broad-scale media events.
-Create an appealing corporate-sponsored contest related to the theme of the book.
-Provide newsworthy disclosures daily related to the book.
Next, the publisher needs to think about how long it would take to pursue each of these potential solutions. Clearly, there are only a limited number of celebrities who could have the right kind of appeal and would be willing to tailor their books to this purpose and donate their proceeds to charity. One might work on attracting those celebrities forever, and still not gather a single one. Some other approach for adding word-of-mouth endorsements is needed. This conclusion is particularly true for a small publisher whose market strengths might not be considered to be valuable enough to attract such celebrities.
Many celebrities are already associated with corporations through endorsement contracts and charities through voluntary activities. Having identified which celebrities the publisher wants to pursue, the next step is to research their commitments and connections to corporations and charities. Then, the publisher could see which celebrities could be approached through these intermediaries. The best starting point would probably be a charity. In some cases, the publisher might find that the corporate sponsor and the charity also have a tie. That combination could be even better.
As the publisher, you next need to develop a book concept that fits with all of these circumstances. Then, you should document why the book concept will be very valuable to the celebrity, the charity and the corporate sponsors.
How long would it take to pursue these activities? Not very long if you know what needs to be done, but most publishers don't have the skills in house to advance such an approach into reality. Currently, publishers wait for authors' agents to approach them with such packages . . . and then the acquisition editors choose among the proposals for the most valuable book concepts.
What is required is not unlike what theatrical, motion picture and television producers do. An important step could be to develop a partnership with such a producing organization that could participate in providing some of the other entertainment that could be built around the concept. Our publisher needs to focus attention on either working with people who have these skills and contacts or hiring such people.
No one should build a possible route towards a 2,000 percent solution around one potential set of allies. So our publisher needs to explore associations with other potentially enabling parties, like the celebrities' agents, corporations and nonprofit organizations that sponsor popular events, and entertainment impresarios. Another approach might involve partnering with foundations that wanted to help pioneer this type of nonprofit fund-raising. Such foundations could use their own contacts to help put the necessary talent and skills together.
The publisher should stay focused on potential solutions until several paths have been found that can be fairly quickly explored and implemented. At that point the publisher will be ready to begin developing a 2,000 percent solution using the materials and questions in the next eight chapters of this workbook.
If the publisher cannot find several paths for word-of-mouth increases that seem to have high potential, the publisher would be wise to shift focus. That publisher should look instead for rapid paths for pursuing some of the other benefits that the nth degree analysis identified as being particularly valuable, such as pleasure that readers get from the book and, how many readers like the book which can help build positive word-of-mouth-based interest.
Copyright 2007 Donald W. Mitchell, All Rights Reserved
Navigating the Waters of Business Success: The Strategic Launch of Business Objects
In the competitive world of business, the trajectory of success is often determined by the initial strategic decisions made by a company. The story of Business Objects, a pioneer in business intelligence software, exemplifies the importance of a well-planned entry into the industry. By choosing the right location, assembling a diverse team, and innovating their business model, Business Objects set a precedent for rapid and sustainable growth.
Genetifcally Engineer Wonderful Business Models That Deliver More Stakeholder Benefits
Using genetic engineering, scientists can take qualities of a weed for hardiness and transfer those strengths into a food crop. In the same way, you can genetically engineer your business model by adding on all of the attractive qualities of complementary business models. If you combine enough business models, you'll have an amazing advantage that will deliver myriads of benefits to large numbers of people.
Don't Just Play Around -- Your Industry Is Full of Excellent Opportunities Everyone Has Overlooked
Companies want to grow faster and always imagine that areas they haven't explored are full of better opportunities than where they are. The truth is usually the opposite. This article explores the missing opportunities at toymaker Hasbro.
